CHAPTER-1

INTRODUCTION
TO STUDY
 INTRODUCTION TO THE STUDY

The world of banking has assumed a new dimension at dawn of the 21 st

century with the advent of tech banking, thereby lending the industry a

stamp of universality. In general, banking may be classified as retail and

corporate banking. Retail banking, which is designed to meet the

requirements of individual customers and encourage their saving, includes

payment of utility bills, consumer loans, credit cards, checking account and

the like. Corporate banking, on the other hand, caters to the needs of

corporate customers like bills discounting, opening letters of credit,

managing cash, etc.

Metamorphic changes took place in the Indian financial system during the eighties and

nineties consequent upon deregulation and liberalization of economic policies of the

government. India began shaping up its economy and earmarked ambitious plan for

economic growth. Consequently, a sea change in money and capital markets took place.

Applications of marketing concept in the banking sector was introduced to enhance the

customer satisfaction. The policy of privatization of banking services aims at

encouraging the competition in banking sector and introduction of financial services.

Consequently, services such as Demat, Internet Banking, Portfolio Management, Venture

Capital, etc., came into existence to cater to the needs of public. An important agenda for every

banker today is greater operational efficiency and customer satisfaction. The new

watchword for the bank is pretty ambitious : customer delight.

The introduction to the marketing concept to banking sector can be traced

back to American Banking Association Conference of 1958. Bank marketing

can be defined as the part of management activity, which seems to direct the

flow of banking services profitability to the customers. The marketing

concept basically requires that there should be thorough understanding of

customers need and to learn about market it operates in. Further the market

is segmented so as to understand the requirements of the customer at a profit

to the bank.

DEFINITION OF BANK

ACC TO KINLEY
“A BANK IS AN ESTABLISHMENT WHICH MAKES TO

INDIVIDUALSUCH ADVANCES OF MONEY AND MAY BE

REQUIRED AND SAFELY MADE,AND TO WHICH INDIVIDUALS

ENTRUST MONEY WHEN NOT REQUIRED BY THEM FOR

USE”surplus funds from the publisafeguards theand makes themn provide

Acc. To Sec. 5 (b)

“Banking is defined as accepting for the purpose of lending or investment

of deposits of money from public, repayable on demand or

otherwise and withdrawals by cheque, draft, order or otherwise.”

The banking system is an integral subsystem of the financial system. It represents an

important channel of collecting small savings form the households and lending it to the

corporate sector.
CLASSIFICATION OF BANKS

PUBLIC SECTOR BANKS

PRIVATE SECTOR BANKS

CO-OPERATIVE BANKS

According to the Law

SCHEDULED BANK

Schedule banks are sub-divided as:-

a) State co-operative banks

b) Commercial banks

NON-SCHEDULED BANKS

A. Central Co-operative banks and Primary Credit Societies.

B. Commercial banks

According to Function

Commercial banks

Foreign banks

Industrial banks

Agricultural banks

Saving banks

Central bank
 PRIVATIZATION OF INDIAN BANKING

For the public sector banks, the era of bumper profit is over. For much of the

last decade the process of collaborated financial liberalization had cleared up

the Bank’s balance sheet enabling them to with stand increased competition,

global financing, turmoil and even unprotected industrial slow down. But the

cycle of liberalization has run its full course. Now it is the time for the big

structural leap, rationalization, mergers, and privatization. Unless the banks

undertake these fundamental changes, their profit will stay under pressure.

There are twp areas of competitions which banking industry is facing

internationally and nationally. In the pre-liberalization era, Indian banks,

could grow in a closed economy but the banking sector opened up for

private competition. It is possible that private banks could become dominant

players even within India. It has been recorded a rapid rise of the new

private sector banks and it has tracked the transformation of the public sector

banks as they grapple with the changes of financial deregulation.

Use of ATM cards, Internet Banking, Phone Banking, Mobile Banking are

the new innovative channels of banking which are being widely used as they

result in saving both time and money which are two essential things that

every one is short of and is running to catch hold of them. Moreover private

sector banks are aligning its infrastructures, marketing quality and

technology to build deep commitment in building consumer and retail

banking. The main focus of these banks is on innovative range of services or

products.
 FUNCTIONS OF BANK

Primary Functions :
1) Accepting of Deposits : A bank accepts deposits from the public.

People can deposit their cash balances in either of the following

accounts to their convenience:-

a. Fixed or Time Deposit Account : Cash is deposited in this

account for a fixed period. The depositor gets receipts for the

amount deposited. It is called Fixed Deposit Receipt. The receipt

indicates the name of the depositor, amount of deposit, rate of

interest and the period of deposit. This receipt is not

transferable. If the depositor stands in need of the amount before

the expiry of fixed period, he can withdraw the same after

paying the discount to the bank.

b. Savings Account : This type of deposit suits to those who just

want to keep their small savings in a bank and might need to

withdraw them occasionally. Banks provide a certain rate of

interest on the minimum balance kept by the depositor during

the month.

c. Current Account : This type of account is kept by the

businessman who are required to withdraw money every new and then.

Banks do not pay any interest on this account. Any sum or any number of

withdrawals can be presented by such an account holder.

2) Advancing of Loans : The bank advances money in any one of the

following ways.
a. Overdraft Facilities : Customers of good tradings are allowed to

overdraw from their current account. But they have to pay

interest on extra amount they have withdrawn. Overdrafts are

allowed to provide temporary accommodation since the extra

amount withdrawn is payable within a short period.

b. Money at Call : It is the money lent for a very short period

varying from 1 to 14 days. Such advances are usually made to

other banks and financial institutions only. Money at call

ensures liquidity. In the Interbank market it enables bank to

make adjustment according to their liquidity requirements.

c. Loans : Loans are granted by the banks on securities which can

be easily disposed off in the market. When the bank has satisfied

itself regarding the soundness of the party, a loan is advanced.

d. Cash Credit : The Debotr is allowed to withdraw a certain

amount on a given security. The debtor withdraws the amount

within this limit, interest is charged by the bank on the amount

actually withdrawn.

e. Discounting Bill of Exchange : It is another method of making

advances by the banks. Under this method, bank give advance to

their clients on the basis of their bills of exchange before the

maturity of such bills.

f. Investment in Government Securities : Purchasing of

government securities by the banks tantamount to advancing

loans by them to the Government. Banks prefer to buy

government securities as these are considered to be the safest

 investment. For example : Indira Vikas Patra : It enables the banks to meet

requirement of statutory liquidity ratio (SLR)

3) Credit Creation :One of the main functions of banks these days is to

create credit. Banks create credit by giving more loans than their cash

reserves. Banks are able to create credit because the demand deposits

i.e. a claim against the bank is accepted by the public in settlement of their debts. In

this process the bank creates money. For this reason Prof. Sayers has called bank “the

manufactures of money.”

4) Cheque system of Payment of Funds

A cheque, a negotiable instrument, which in fact is a bill of exchange, drawn

upon a banker, is the most popular credit instrument used by the client to

make payments. Cheque system is the main credit instrument in the banking

world.

Although a cheque is not a legal tender money, the serves as a medium of exchange in a

limited way as it is a negotiable instrument.

Because of “clearing houses” and “clearing” operations of the banks, cheques

can be and are used for transferring funds from one centre to another. In the

modern days they can also be used for transferring funds from one country to

another.

Secondary Functions:
Besides the above primary functions, banks also perform may secondary functions such as

agency functions, general utility and social functions.

A) Agency Functions

Banks act as agents to their customers in different ways :-

i) Collection and Payment of Credit and Other Instruments: The Commercial banks

collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On

behalf of their customers and also make payments of income tax, fees, insurance premium

etc. on behalf of the customers. Customers can leave standing instructions with the

banker for various periodic payments ensuring the regular payments and avoiding the trouble

of performing it themselves.

ii) Purchase and Sale of Securities : The modern commercial banks also undertake the
purchase and sale of various securities like shares, stocks, bonds units and debentures

etc. On behalf of the customers, banks do not give any advice regarding the suitability or

otherwise of a security but simply perform the functions of a broker.

iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their

customers on their advice. Sometimes banks also undertake income tax services on behalf of the

customers.

iv) Remittance of Funds : The Commercial banks remit funds on behalf of

clients from one place to another through cheques, drafts, mail transfers etc.

v) Representation and Correspondence : Sometimes commercial banks acts as representatives

or correspondents of the clients especially in handling various applications. For instance,

passports and travel tickets, booking of vehicles, plots etc.

vi) Billion Trading : In many countries, the commercial banks trade is

billions like gold and silver. In Oct 1997, 8 banks including CANARA, IOB,
Canara Bank and Allahabad Bank have been allowed import of gold which has been put under

open general licensed category.

vii) Purchase and Sale of Foreign Exchange : Banks buy and sell foreign exchange,

promoting international trade. This function is mainly discharged by foreign Exchange

Banks.

viii) Letter of References : Banks also give information about economic

position of their customers to domestic and foreign traders and vice versa.

B) GENERAL UTILITY SERVICES

In addition to agency services, banks render many more utility services to the public. These

services are :-

i) Locker Facilities : Banks provide locker facilities to their

customers. People can keep their valuables or important documents

in these lockers. Their annual rent is very nominal.

ii) Acting as a referee : It desired by the customers, the bank can be a
referee i.e. who could be referred by the third parties for seeking information

regarding the financial position of the customers. The bank will acts as referee

only and only if it is desired by the customer, otherwise the secrecy of a

customers is account is maintained very carefully.

iii) Issuing letters of credit : Bankers in a way by issuing letters of

credit certify the credit worthiness of the customers. Letters of credit are very

popular in foreign trade.

iv) Acting as Underwriters : Banks also underwrite the securities

issued by the Government and Corproate bodies for a commission. The name of

bank as an underwriter encouraged investors to have faith in the security.

v) Acting as information banks : Commercial banks also acts as

“information” bureau as they collect the financial, economic and

 statistical data relating to industry, trade and commerce. HDFC Bank is

providing information relating to NRI Schemes and commentaries of

experts on development in the areas of finance through Internet.

vi) Issuing Traveller’s cheques and credit cards : Banks have been
rendering great service by issuing traveller’s cheques, which enable a person to travel

without fear of theft or loss of money. Now, some banks have started credit card

system under which a credit card holder is allowed to avail credit from the listed

outlets without any additional cost or effort. Thus, credit card holder need not carry

or handle cash all the time. Now, international credit cards are joining hands with

Indian Banks.

vii) Issuing of gift cheques : Certain banks issue gift cheques of

various denominatinos , e.g. Some Indian banks issue gift cheques f the

denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge.

viii) Dealing in Foreign Exchange : Major branches of commercial

banks also transact business of foreign exchange. Commercial

banks are the main authorized dealers of foreign exchange in India.

 CHAPTER-2

PROFILE
OF
CANARA BANK
 CANARA BANK

CANARA Bank is India's second-largest bank with total assets of Rs. 3,446.58

billion (US$ 79 billion) at March 31, 2008 and profit after tax of Rs. 31.10

billion for fiscal 2008. CANARA Bank is the most valuable bank in India in

terms of market capitalization and is ranked third amongst all the companies

listed on the Indian stock exchanges in terms of free float market

capitalisation*. The Bank has a network of about 950 branches and 3,300

ATMs in India and presence in 17 countries. CANARA Bank offers a wide range

of banking products and financial services to corporate and retail customers

through a variety of delivery channels and through its specialised

subsidiaries and affiliates in the areas of investment banking, life and non-

life insurance, venture capital and asset management. The Bank currently

has subsidiaries in the United Kingdom, Russia and Canada, branches in

Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance

Centre and representative offices in the United States, United Arab Emirates,

China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our

UK subsidiary has established a branch in Belgium.

CANARA Bank's equity shares are listed in India on Bombay Stock Exchange

and the National Stock Exchange of India Limited and its American

Depositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE).

CANARA Bank was originally promoted in 1994 by CANARA Limited, an Indian

financial institution, and was its wholly-owned subsidiary. CANARA's

shareholding in CANARA Bank was reduced to 46% through a public offering of

shares in India in fiscal 1998, an equity offering in the form of ADRs listed
on the NYSE in fiscal 2000, CANARA Bank's acquisition of Bank of Madura

Limited in an all-stock amalgamation in fiscal 2001, and secondary market

sales by CANARA to institutional investors in fiscal 2001 and fiscal 2002. CANARA

was formed in 1955 at the initiative of the World Bank, the Government of

India and representatives of Indian industry. The principal objective was to

create a development financial institution for providing medium-term and

long-term project financing to Indian businesses. In the 1990s, CANARA

transformed its business from a development financial institution offering only project

finance to a diversified financial services group offering a wide variety of products and

services, both directly and through a number of subsidiaries and affiliates like CANARA

Bank. In 1999, CANARA become the first Indian company and the first bank or financial

institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the

context of the emerging competitive scenario in the Indian banking industry,

and the move towards universal banking, the managements of CANARA and

CANARA Bank formed the view that the merger of CANARA with CANARA Bank

would be the optimal strategic alternative for both entities, and would create

the optimal legal structure for the CANARA group's universal banking strategy.

The merger would enhance value for CANARA shareholders through the merged

entity's access to low-cost deposits, greater opportunities for earning fee-

based income and the ability to participate in the payments system and

provide transaction-banking services. The merger would enhance value for

CANARA Bank shareholders through a large capital base and scale of

operations, seamless access to CANARA's strong corporate relationships built up

over five decades, entry into new business segments, higher market share in
various business segments, particularly fee-based services, and access to the

vast talent pool of CANARA and its subsidiaries. In October 2001, the Boards of

Directors of CANARA and CANARA Bank approved the merger of CANARA and two of

its wholly-owned retail finance subsidiaries, CANARA Personal Financial

Services Limited and CANARA Capital Services Limited, with CANARA Bank. The

merger was approved by shareholders of CANARA and CANARA Bank in January

2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by

the High Court of Judicature at Mumbai and the Reserve Bank of India in

April 2002. Consequent to the merger, the CANARA group's financing and

banking operations, both wholesale and retail, have been integrated in a

single entity.
 BOARD OF DIRECTORS

Mr. N. maghul, Chairman

Mr. kridar Iyengar

Mr. Lakshmi N. Mittal

Mr. Narendra Murkumbi

Mr. Anupam Puri

Mr. Vinod Rai

Mr. M.K. Sharma

Mr. P.M. Sinha

Prof. Marti G. Subrahmanyam

Mr. T.S. Vijayan

Mr. V. Prem Watsa

Mr. K.V. somnath Managing Director & CEO

Ms. Chanda Kochhar, Joint Managing

Ms. Madhabi Puri-Buch, Executive Director

Mr. Sonjoy Chatterjee, Executive Director

Mr. V. Vaidyanathan, Executive Director

 STRATEGY

1. Identify & support projects & programs that are within its focus area &

⇒ Have a large-scale & measurable-impact

⇒ Are replicable in a cost effective manner ⇒ Are

time bound

2. Identify & support pilot projects within its focus areas

3. Contribute towards improving the efficiency of assisted organizations through:

⇒ Capacity building;.

⇒ Providing access to research &information; platforms for an effective

exchange of ideas, experience & providing thoughts & experience.

MISSION

To identify the support initiatives, which are, designed to improve the

capacity of the poorest of the poorest to participate in the larger economy.

⇒ These initiatives must be cost effective, capable of larger scale replication

and should have the potential for both near and long-term effect.

⇒ To leverage technology in order to overcome constraints and enhance the

effectiveness of various social initiatives.

 HIGHLIGHTING FEATURES OF CANARA

Banking hours from 8a.m. to 8p.m. six days a week.

Cash Withdrawal at ATM: Withdraw upto Rs. 25,000/- per day from your account

(50,000 for HNI's). Fast Cash option provides the facility of withdrawing prefixed

amounts. Ultra Fast Cash option allows you to withdraw Rs.3000/- in one shot.

Debit Card and chequebook issued on the spot while opening account free of cost.

Anywhere Banking facility of operating account from any of 540

branches in the country.

Convenience of accessing your accounts on phone and through Internet 24 hours a day.

Special interest rates for senior citizens.

Special accounts for children with ATM.

Roaming Current Account with cheques payable at par and other facilities.

Lockers available from 8A.M. to 8P.M. six days a week.

Instant Credit of salary in accounts and other facility.

Easy and quick remittance from foreign countries. Remittance from Canada in just 2

working hours.

Advisory services for investment in Tax Free RBI Bonds, Mutual Funds, Tax Saving Bonds

etc.
 PRODUCTS & SERVICES OF CANARA BANK

SAVING ACCOUNT:
Features
 The CANARA Bank International debit card is a debit-cum-ATM card

providing you with the convenience of acceptance at merchant

establishments and cash withdrawals at ATMs.

 The next time you want to withdraw cash from your CANARA Bank

Savings account, just walk into any bank's ATM and use your CANARA

Bank ATM-cum-Debit card for free. The above benefit is available

to individual domestic Savings Account holders on maintenance of a

quarterly average balance of more than Rs.10, 000 in the savings

account in a quarter. The above benefit can be availed in the same

quarter.

 Money Multiplier Facility

 Internet Banking is offered free of cost.

 Anywhere Banking - This facility entitles the account holder to

withdraw or deposit cash upto a limit of Rs.50,000 across all CANARA Bank branches.

 You can give us various types of standing instructions like

transferring to fixed deposit accounts at regular intervals.

 An average quarterly balance of Rs. 5,000 only.**

 Nomination facility is available.

 Interest is payable half-yearly.

Minimum Balance

Type of Account Balance

Savings Account Rs 5,000

Non-maintenance of the minimum average quarterly balance attracts a fee of Rs 750 per

quarter.

FIXED DEPOSIT

CANARA Fixed Deposit allows customer that - deposits can be opened for

periods ranging from 15 days to 10 years. Choice of two investment plans:

Traditional
Interest payable monthly or quarterly as per your convenience Maturity period

ranges from 15 days to 10 years.

Reinvestment
Interest is compounded quarterly and reinvested with principal amount

Maturity period ranges from 6 months to 10 years

Minimum Balance
You can avail of CANARA Bank Fixed Deposits for a minimum deposit of Rs

10,000.
Nomination
Nomination facility is available for relationships in the names of

individuals. Unless otherwise specifically, given in writing by

depositors, nomination in deposit accounts will be at Customer ID

level.

Depositor(s) however has/have the right to specify different

nominations at account level by completing appropriate forms.

Further, the applicant(s) is/are at liberty to change the nominee,

through declaration in the appropriate form to revise the nomination

during the currency of the relationship accounts with the Bank.

YOUNG STARS ACCOUNT :

Young Stars is a banking service for children, aged upto 18 years, brought to

you by CANARA Bank to help the parents meet the present and future

aspirations that they hold for their child. It offers various savings and

investment options to the parent along with teaching the child to manage

his/her personal finance in a more responsible and independent manner.

To make the experience a pleasure we offer:

1. Option of a Savings Bank account, Fixed Deposit account or Recurring

Deposit account.

2. Minimum average balance to be maintained at Rs. 2500/- per quarter for

the Savings Bank account

3. A special Recurring Deposit account with additional features as below:

o The parent would put forward the desired amount to be earned

at the end of the tenure

 o Based on the prevailing rate of interest, the bank staff would

then back calculate the installments to be deposited now till

maturity.

4. Free personalized chequebook

5. Free International Debit Card* for children above the age of 7 years with

features as below:
o Daily withdrawals limits of Rs. 2500/-

o Daily spend limits of Rs. 2500/-

6. The next time you want to withdraw cash from your CANARA Bank Young

Stars Savings account, just walk into any bank's ATM and use your

CANARA Bank ATM-cum-Debit card for free. The above benefit is available

to Youngstar Savings Account holders on maintenance of a quarterly

average balance of more than Rs.10, 000 in the savings account in a

quarter. The above benefit can be availed in the same quarter.

7. Free Internet banking.

o Separate login ids and transaction password

o Access to special zones and links to related websites for making

internet banking a memorable experience.

8. Facility to transfer funds from parent account to kid account to enable

parents to inculcate savings habit amongst children.

NO FRILLS ACCOUNT

Features

The quarterly average balance requirement for this account is nil.

Free CANARA Bank VISA debit card issued at the time of account opening.
 One chequebook of 25 leaves per annum free. You can request for additional

cheque books (25 leaves) at Rs.50 (plus service tax as applicable) per

chequebook.

Internet Banking facility is not available to the customers

Mobile Banking facility is not available to the customers

For this account, branch banking access is free of cost.

Six ATM transactions per quarter, free of cost. Please note that incremental ATM

transactions are chargeable @ Rs.15 per transaction plus service tax as applicable.

All anywhere banking transactions chargeable at normal charges as published from

time to time

Interest is payable half-yearly.

Free Quarterly statement, free monthly e-mail statement on request

Money Multiplier Facility shall not be available to the customers

RECURRING DEPOSIT

CANARA Bank's Recurring Deposits are the ideal way to invest small amounts of money

every month and end up with a large saving on maturity.

Features

Encourages savings without stress on your finances.

High rates of interest (identical to the fixed deposit rates).

Non-applicability of Tax Deduction at Source (TDS).

Minimum Balance
The minimum balance of deposit is Rs. 500 per month and thereafter, in multiples of Rs.

100.
Period of Deposit
The minimum period is 6 months, and thereafter in multiples of 3 months.

Nomination
The facility of Nomination is available for relationships in the names

of individuals. Unless otherwise specifically given in writing by

depositors, nomination in deposit accounts will be at Customer ID

level.

A depositor(s) however has / have the right to specify different nominations at

account level by completing the appropriate forms. Further, the applicant(s) is / are

at liberty to change the nominee during the currency of the relationship

accounts with the Bank, through a declaration to the effect in the appropriate form.

CANARA CURRENT A/C

 A running account supporting unlimited withdrawals and deposits

 A current account is meant for convenience and not to save money

Who needs a Current Account

 Businessman, Joint stock companies, Institutions, Public authorities,

public corporations etc. Any business that has numerous banking

tranactions need a current account

Roaming Current Account :
Only Roaming Current Account from CANARA Bank travels the distance with your

business. With advanced technological features such as MCC and LCC, your banking needs

are well taken care of. You can access your accounts at over 500 networked branches across

the country.

Product Features :-
Choose your account

Multi City Cheque Facility

Anywhere Banking acility

Upcountry Cheque Collection

Pay Orders and Demand Drafts

Phone Banking Facility*

Doorstep Banking Facility

Internet Banking Facility

Debit/ ATM Card

Mobile Banking

NRI ACCOUNT

CANARA Bank is providing some special facilities or privileges to the NRI

people i.e. non-resident Indians as they could operate their a/c around the

globe by opening their al c at one branch. They could get their ,money easily

get their money exchanged from dollars etc to rupee & vice-versa at any

person of the bank & has to pay a very reasonable amount of commission for

it
MONEY EXCHANGE
CANARA Bank provides its customers with money exchange facility i.e. they could get

the currency exchanged at any CANARA Bank branch office. The money is being

exchanged at a very reasonable & small amount of commission & at the very

reasonable rate of interest prevailing in the market at that time.

DEMAT/E-BANKING A/C
E-broking a/c is the account opened by the CANARA Bank for its customers

already having saving a/c in the bank whom seeks to deal in shares. Under

the e -broking a/c, a person gets his a/c opened with the CANARA Bank with the

very reasonable charges of RS.700 & operates online i.e through the sale &

purchase of Mutual Funds, IPO's, CANARA Bonds, equity & preference shares

etc. Demat a/c is being automatically opened for the persons having E-

broking a/c. Demat means dematerializing the shares. The CANARA Bank

charges Rs.335 for opening such an a/c for the existing customers of the

bank. The brokerage charged for the sale & purchase of the shares etc. is just

0.85"0. It is under the CANARA DIRECT.COM & is registered under NYSE i.e. New York

Stock Exchange. The most important advantage of the e-broking al c is that the person can sell

& purchase by sitting at their home through Internet. The bank also does the sale &

purchase for its customer needing help, for which the client could call up to the phone

numbers of the bank & ask for the transaction to be done.

MUTUAL FUNDS

A Mutual fund is a trust that pools the saving of the investors who share a

common financial goal. The income earned through investments and the

capital appreciation realized by the schemes are shared by its unit holders in

proportion to the number of units owned by them. CANARA Bank provides

Prudential CANARA Mutual Fund introducing Prudential CANARA Flexible Income

Plan, which is an open ended income plan with Rs.10 per unit offer price

during' the initial offer period & at the, applicable NAV thereafter.

LOANS
Housing Loan

Car Loan

Two Wheeler Loan

Loan against property

Personal Loan

Commercial Vehicle Loan

Agriculture Loan
Loan against Gold
Consumer Durable Loan

Medical Equipment

Office Equipment

Construction Equipment
 SERVICES OFFERED BY CANARA BANK

Senior citizen services:

5% higher interest rates on saving bank accounts and fixed deposits.

Option of regular income - you can have option of monthly', quarterly, halfyearly or annual

interest credit.

Loan against deposits - you can enjoy facility of availing loan up to 90% on your fixed deposit

and the rate of interest on your loan. is only 1% above the rate of interest on your fixed deposit.

Bill payment.

Save time and effort with specialized services. Free Debit

cum A TM card.

Value added saving account.

Investment services.

Free personalized cheque book.

Free collection of outstation cheques where CANARA Bank has a presence.

Anytime Banking:

The customer can access his account from any of the branches or ATM's across the country-

24 hours a day, 7 days a week from the ATM's and with the help of Internet Banking also.

CANARA is the first bank in India to provide Internet banking. The bank's branches are also

open from 8 am to 8 PM for the transaction with the customer.

Anywhere Banking:

It enables the customer to bank at any of the branches of CANARA bank across India.

Internet Banking:

Customer can check his account balance or send money to someone else with the help of

e-cheques facility. All this is provided free of cost. He can also avail the Phone Banking

facility that allows us to perform banking transaction from the comfort of their home. The

customers are provided with an internet username and password through which they can

open their account on internet and do the transactions they wished to do.

Mobile Banking:

Customers of CANARA Bank are also provided with the facility of mobile

banking where under the customers can send SMS to the bank at a number

9814061616.to do the money transactions they want to be done. Bank could

also be given standing instructions by dialing or sending message at the

number.
 REVIEW OF
LITERATURE
 REVIEW OF LITERATURE

Banking Sector Reform Inititaives by Shri Arun Kumar Purwar is Chairman, State
Bank of India (2006)
Financial sector reforms were initiated as part of overall economic reforms
in the country and wide ranging reforms covering industry, trade, taxation,

external sector, banking and financial markets have been carried out since

mid 1991. A decade of economic and financial sector reforms has

strengthened the fundamentals of the Indian economy and transformed the

operating environment for banks and financial institutions in the country.

The sustained and gradual pace of reforms has helped avoid any crisis and

has actually fuelled growth. As pointed out in the RBI Annual Report 2001-

02, GDP growth in the 10 years after reforms i.e. 1992-93 to 2001-02

averaged 6.0% against 5.8% recorded during 1980-81 to 1989-90 in the pre-

reform period. The most significant achievement of the financial sector

reforms has been the marked improvement in the financial health of

commercial banks in terms of capital adequacy, profitability and asset

quality as also greater attention to risk management. Further, deregulation

has opened up new opportunities for banks to increase revenues by

diversifying into investment banking, insurance, credit cards, depository

services, mortgage financing, securitisation, etc. At the same time,

liberalisation has brought greater competition among banks, both domestic

and foreign, as well as competition from mutual funds, NBFCs post office,

etc. Post-WTO, competition will only get intensified, as large global players

emerge on the scene. Increasing competition is squeezing profitability and

forcing banks to work efficiently on shrinking spreads. A positive fallout of

competition is the greater choice available to consumers, and the increased

level of sophistication and technology in banks. As banks benchmark themselves

against global standards, there has been a marked increase in disclosures and

transparency in bank balance sheets as also greater focus on corporate governance.

Major Reform Initiatives

Some of the major reform initiatives in the last decade that have changed the face of the Indian

banking and financial sector are:

Interest rate deregulation. Interest rates on deposits and lending have been

deregulated with banks enjoying greater freedom to determine their rates.

Adoption of prudential norms in terms of capital adequacy, asset classification,

income recognition, provisioning, exposure limits, investment fluctuation reserve,

etc.

Reduction in pre-emptions - lowering of reserve requirements (SLR and CRR), thus

releasing more lendable resources which banks can deploy profitably.

Technology infrastructure for the payments and settlement system in the country has

been strengthened with electronic funds transfer, Centralised Funds

Management System, Structured Financial Messaging Solution, Negotiated

Dealing System and move towards Real Time Gross Settlement.

The face of banking is changing rapidly. Competition is going to be tough

and with financial liberalisation under the WTO, banks in India will have to

benchmark themselves against the best in the world. For a strong and

resilient banking and financial system, therefore, banks need to go beyond

peripheral issues and tackle significant issues like improvements in

profitability, efficiency and technology, while achieving economies of scale

through consolidation and exploring available cost-effective solutions. These are some of the

issues that need to be addressed if banks are to succeed, not just survive, in the changing

milieu.

Indian Banking Industry by I.S. Miglani published by Indian Express (2008).

The growth in the Indian Banking Industry has been more qualitative than quantitative and it

is expected to remain the same in the coming years. Based on the projections made in the "India

Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report

forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate.

The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs

40,90,000 crores. That will comprise about 65 per cent of GDP at current market prices as

compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual

composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7

per cent that existed between 1994-95 and 2002-03. It is expected that there will be large

additions to the capital base and reserves on the liability side.

The Indian Banking Industry can be categorized into non-scheduled banks and scheduled

banks. Scheduled banks constitute of commercial banks and co-operative banks. There are

about 67,000 branches of Scheduled banks spread across India. As far as the present

scenario is concerned the Banking Industry in India is going through a transitional phase.
The Public Sector Banks (PSBs), which are the base of the Banking sector in

India account for more than 78 per cent of the total banking industry assets.

Unfortunately they are burdened with excessive Non Performing assets

(NPAs), massive manpower and lack of modern technology. On the other

hand the Private Sector Banks are making tremendous progress. They are

leaders in Internet banking, mobile banking, phone banking, ATMs. As far

as foreign banks are concerned they are likely to succeed in the Indian

Banking Industry.

In the Indian Banking Industry some of the Private Sector Banks operating are IDBI, ING

Vyasa Bank, CANARA Commercial and International Bank Ltd, Bank of Rajasthan Ltd.

and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank,

Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank,

American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian

Banking Industry.

Current Scenario of Indian Banking by J.K. Khanna published by Business Line

(2008).

Currently (2008), banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the

private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian

banks are considered to have clean, strong and transparent balance sheets relative to

other banks in comparable economies in its region. The Reserve Bank of India is an

autonomous body, with minimal pressure from the government. The stated policy of the Bank

on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has

mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially

in its services sector-the demand for banking services, especially retail banking,

mortgages and investment services are expected to be strong. One may also expect M&As,

takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to

increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.

This is the first time an investor has been allowed to hold more than 5% in a

private sector bank since the RBI announced norms in 2005 that any stake

exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 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. They have a combined network of over 53,000 branches and 17,000

ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold

over 75 percent of total assets of the banking industry, with the private and foreign

banks holding 18.2% and 6.5% respectively.

 CHAPTER-3

RESEARCH
METHODOLOGY
 OBJECTIVES OF THE STUDY

To study the satisfaction level of the customers of CANARA Bank.

To get information regarding different conditions to be fulfilled for opening an

account in CANARA Bank.

To know about the different products and services provided by CANARA Bank.

To know the type of facilities provided by CANARA Bank in deposits accounts.

To know the customer satisfaction with bank’s overall performance. To know the staff

attitude towards bank’s customers.

To analyze the problems faced by customers while opening an account in

CANARA Bank.
 RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and

methodology can properly refer to the theoretical analysis of the methods

appropriate to a field of study or to the body of methods and principles

particular to a branch of knowledge. A Research methodology has a

specified framework for collecting the data in an effective manner. Research

methodology means a "defining a problem, defining the research objectives,

developing the research plan, collecting the information, analyzing the

information and presentation of findings." Such framework is called

"Research Design". The research process that was followed by me consisting

following steps;

A) Defining the problem

B) Developing the research plan

C) Collection of Data

D) Analysis and Interpretation of Data

E) Presentation of findings

A) Defining the problem and research objectives

 My research problem is to know customer satisfaction in CANARA Bank.

B) Developing the Research Plan

The development of research plan has following steps:

1. Data source

2. Research approach

3. Type of Research Design

4. Research instrument

5. Sampling plan
i) Sample unit

ii) Sample size

iii) Contact methods

6. Questionnaire Design

1. Data Source: The researcher can get two types of data:

a) Primary Data

b) Secondary Data

a) Primary Data
Primary data is a data which did not exist earlier and is being collected by the researcher

first time for its specific objectives. In other words, direct collection of data from the

source of information, technology including personal interview, telephonic interviews,

observation, Questionnaire and through schedules.

b) Secondary data
Any data which have been collected earlier for some purpose are the secondary data.

Indirect collection of data from sources containing past or recent past information like

bank's brochures, annual publication, books etc. Secondary sources used are:

Text books

Internet sites
Newspaper articles

Broachers
 2. Research Approach
Survey is best suited for descriptive and analytical research. Survey are

undertaken to learn about people's knowledge, beliefs, preferences,

satisfaction and so on and to measure these magnitudes in the general public.

Therefore, I have done this survey for Descriptive and analytical research

process.

Descriptive research includes surveys and fact finding enquiries of different kinds. The

main purpose is description of the state of affairs is noted down and analytical research used

to analyze the material and facts.

3. Research instrument
Quesestionnaire: Questionnaire (also known as self-administered survey) is a type of statistical

survey handed out in paper form usually to a specific demographic to gather information

in order to provider better service or goods. A document that contains a set of questions

that has been specially formulated as a means of collecting information and surveying

opinions, etc on a specified subject or theme, etc .

A questionnaire was constructed for my survey.

4.Sampling plan
Sample is a group of few items which represents the population or universe

from where it has been taken. The sampling plan calls for three decisions;
a) Sample unit

b) Sample size

c) Contact methods

a) Sample unit - who is to be surveyed?

The target population must be defined that has to be sampled. It is necessary so as to develop a

sample frame so that everyone in the target population has an equal chance of being

sampled. I have completed my survey in Jalandhar.

b) Sample size - how many people have to be surveyed?

Generally, large sample size gives more reliable results than small samples. The sample

consisted of 100 respondents. The sample was drawn from people having different

educational qualification, age group, occupation and income. The selection of the respondents

was done on the basis of Simple Random Sampling.

Simple random sampling is the technique in which every item in the

universe and population has an equal chance of being selected in the sample.

Researcher has no role to play or he cannot influence the selection process

there is no possibility of biasness. It can easily assess the accuracy of

estimate.

c) Contact methods
Once the sampling plan has been determined the Questionnaire is how the subject should be

contracted i.e. by telephone interview, personal interview, mail etc. Here, in my survey, i

have contacted the respondents through personal interviews.

5. Questionnaire Design :
There is 15 questions in my questionnaire and I asked all these questions from 100

respondents in Jalandhar City.

C) Collecting the information

After this, I have collected the information from the respondents with the help of

Questionnaire.

D) Data Analysis and Interpretation

The next step is to extract the pertinent findings from the collected data. I

have tabulated the collected data and developed frequency distributions.

Thus, the whole data was grouped aspect wise and was presented in tabular

form. Thus, frequencies and percentages were prepared to render impact of

study.

E) Presentations of findings

This was the last step of survey.

 LIMITATIONS OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain

limitations. Some of these are mentioned here under so that the findings of the study

may be understood in a proper perspective.

The limitations of the study are:

Some of the respondents of the survey were unwilling to share information.

The research was carried out on in-house customers. i.e. within the

branch in the small city of Punjab viz. Jalandhar so the response may

vary by including the respondents from other branches in other areas

as well.

The research was carried out in a short period of 6 weeks as a part of summer

training. Therefore the sample size and other parameters were

selected accordingly so as to finish the work within the given time frame.

The information given by the respondents might be biased because some of them

might not be interested to give correct information.

 CHAPTER-4

DATA ANALYSIS AND

ITS INTERPRETATION
 DATA ANALYSIS AND ITS INTERPRETATION

1. Are you aware of CANARA Bank ?

Response %age of Respondents

Yes 100%

No 0%

Total 100%

0%

100%

Yes No

Interpretation :
CANARA Bank is no. 1 private sector bank in India. From the above graph it is clear that

all the 100% respondents are aware of CANARA Bank.

1.Are you aware of banking products provided by CANARA Bank?

Particulars %age of Respondents

Saving A/c 56%

Current A/c 20%

Fixed Deposits 10%

NRI A/c 4%

Loans 10%

10%
4%
10%

56%
20%

Saving A/c Current A/c Fixed Deposits NRI A/c Loans

Interpretation:
The study shows that maximum numbers of people are aware of saving account of

CANARA Bank. From the above graph it is clear that 56% of the respondents are

aware of Saving account, 20% current account, 10% loans and fixed deposits and remaining

4% are aware of NRI A/c.

2. Which of the modern banking services are you aware of?

Services No. of Respondents

ATM Network 95
Internet Banking 70
Phone Banking 55
SMS Banking 35
Debit Card 60

95
100
90
80 70
70
60
60 55
50
40 35
30
20
10
0
ATM Internet
Phone SMS Debit Card
Network Banking
Banking Banking

Interpretation :

From the above graph it is clear that majority of the respondents are aware of modern

banking services offered by CANARA Bank. 95 respondents are aware of ATM

services, 70 respondents are aware of Internet Banking, 60 are aware of Debit Card, 55 are

aware Phone Banking and 35 are aware of SMS Banking.

Q Are you satisfied with the modern banking services provided by
CANARA Bank?

Particulars %age of Respondents

Yes 76%

No 24%

24%

76%

Yes No

Interpretation :

From the above graph it is clear that majority (76%) of the respondents are satisfied with

the modern banking services provided by CANARA Bank while 24% respondents are not

satisfied with it.

Q How do you come to know about these products & services of

CANARA Bank ?

Particulars %age of Respondents

TV 10%
Friends 30%
Hoarding /Banner 10%
Newspaper 35%
Pamphlets 15%

15% 10%

30%
35%
10%

TV Friends Hoarding /Banner Newspaper Pamphlets

Interpretation :

From the above graph it is clear that majority of the respondents have come to know about

the products and services of CANARA Bank through newspaper. 30% respondents have

come to know about the product & services of CANARA Bank through friends, 15%

through pamphlets and 10% through hoarding, banner & television.

Q. From how long the you are dealing with CANARA Bank ?

Duration %age of respondents

1 Year 10%

2-3 Years 20%

3-5 Years 44%

More than 5 years 26%

10%
26%
20%

44%

1 Year 2-3 Years 3-5 Years More than 5 years

Interpretation :
From the above graph it is clear that 44% of customers are dealing with

CANARA Bank from last 3-5 years, 26% of customers are dealing with Bank

from last more than 5 years, 20% of customers are dealing with Bank from

last 2-3 years and 10% of them are dealing with Bank from last one year.
Q. Why do you have opened account with CANARA Bank ?

Responses %age of Respondents

Network 24%
Quick Services 52%
Brand Name 14%
One stop bank 10%

10%
24%
14%

52%

Network Quick Services Brand Name One stop bank

INTERPRETATION:
The table shows 24% customers have opened their account in CANARA Bank

due to good network of branches. 52% customers have opened their account

due to quality of services provided by the CANARA Bank. Only 14% customers

have opened their account due to brand name. Other 10% customer’s

response to one stop bank reason. CANARA Bank is a one stop bank because it

provides all modern banking facilities and products to customers under one

roof.
Q. How much time you spent for any transaction in CANARA Bank ?

Time Spent %age respondents

5 to 10 minutes 60%

15 to 20 minutes 30%

More than 20 minutes 10%

10%

30%
60%

5 to 10 minutes 15 to 20 minutes More than 20 minutes

INTERPRETATION :
The above graph shows 60% customers spent only 5 to 10 minutes to perform only

transaction in the Bank. 30% customers spent 5 to 10 minutes and only 10% customers spent

more than that in CANARA Bank.

 Q. Are you satisfied with the time taken by bank for opening of an
account ?

Level of satisfaction %age of respondents

Highly satisfactory 48%

Satisfactory 50%

Not satisfactory 2%

2%

48%

50%

Highly satisfactory Satisfactory Not satisfactory

Interpretation :
The pie diagram shows the percentage of satisfaction level of customer for opening of A/c

50% of the customers is satisfied with the time taken by bank for opening of an A/c, 48% of

the customers are highly satisfied with the time taken by bank for opening of an A/c &

2% of the customers are not satisfied with the time taken by bank for opening of an A/c.

Therefore, it has been analyzed that most of the customers of the bank are satisfied with

the time taken by bank for opening of A/c in CANARA Bank.

Q. Are you satisfied with the products and services provided by CANARA Bank ?

Satisfaction Level %age of Respondents

Highly Satisfied 24%

Satisfied 32%

Average Satisfied 38%

Not Satisfied 6%

6%
24%

38%

32%

Highly Satisfied Satisfied Average Satisfied Not Satisfied

Interpretation:
From the above graph it is clear that majority of the respondents are average

satisfied with products and services provided by CANARA Bank whereas 32%

of the respondents are satisfied & 24% are highly satisfied with CANARA

Bank. The remaining 6% respondents are not satisfied with the products and services

provided by bank.
Q. Are you satisfied with the time taken by bank for clearing of
cheques:

Level of satisfaction %age of respondents

Highly satisfactory 4%
Satisfactory 72%
Not satisfactory 24%
Total 100

4%
24%

72%

Highly satisfactory Satisfactory Not satisfactory

Interpretation :
The pie diagram shows the percentage of satisfaction level of customer

regarding time taken by bank for clearing of cheques.72% of the customers

are satisfied with the time taken by bank for clearing of cheques, 4% of the

customers are highly satisfied with the time taken by bank for clearing of

cheques, 24% of the customers are not satisfied with the bank for clearing of

cheques. It has been observed that the most of the customers are satisfied

with the time taken by bank for clearing of cheques but still there are many

people who are not satisfied with the time taken by bank for clearing of

cheques i.e. still 24% of the customers are not satisfied so, bank staff should

be more efficient.
Q. How many times do you visit CANARA Bank in a month?

No. of Visits %age of Respondents

1-4 Times 70%

5-10 times 20%

11-15 times 10%

Never 0%

10%

20%

70%

1-4 Times 5-10 times 11-15 times

Interpretation :

From the above graph it is clear that majority (70%) of the respondents visit the CANARA

Bank 1-4 times in a month, 20% respondents visit 5-10 times and remaining 10%

respondents visit the Bank 11-15 times in a month.

Q. Would you like to recommend the name of CANARA Bank

to your known person ?

Response %age of Respondents

Yes 86%

No 4%

Can’t Say 10%

10%
4%

86%

Yes No Can’t Say

Interpretation :
From the graph it is clear that 86% customers would like to recommend the name of

CANARA Bank to other persons. Only 4% customers would not like to recommend the

name of CANARA Bank and 10% customers are confused to give response.
Q How do you rate the attitude of staff of CANARA Bank
towards customers ?

Response %age

Highly Satisfied 14%

Satisfied 60%

Dissatisfied 20%

Highly Dissatisfied 4%

4% 14%
20%

62%

Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied

Interpretation :
From the above graph it is clear that 14% respondents are highly satisfied

with the staff behaviour of CANARA Bank while 60% respondents are satisfied

with the staff behaviour. 20% of the respondents are not satisfied with the

staff behaviour of CANARA Bank and 4% are highly dissatisfied with staff

behaviour.
Q. Are you satisfied with overall performance of CANARA Bank?

Satisfaction Level %age of Respondents

Highly Satisfied 16%

Satisfied 34%

Average Satisfied 46%

Not Satisfied 4%

4% 16%

46%
34%

Highly Satisfied Satisfied Average Satisfied Not Satisfied

Interpretation:
From the above graph it is clear that majority (46%) of the respondents are average

satisfied with the overall performance of CANARA Bank where they are operating

their account. 34% of the respondents are satisfied, 16% are highly satisfied and

remaining 4% respondents are not satisfied with the performance of CANARA Bank.
 CHAPTER-5

FINDINGS
AND SUGGESTIONS
 FINDINGS OF THE STUDY

CANARA Bank is the no. one private sector bank in India. From the above

study it is clear that all the 100% respondents are aware of CANARA

Bank.

The above study shows that maximum numbers of people are aware of saving

account of CANARA Bank

It is clear from the above study that majority of the respondents are satisfied with

the modern banking services provided by CANARA Bank.

Majority of the respondents have come to know about the products and services

of CANARA Bank through newspaper. 30% respondents have come to know

about the product & services of CANARA Bank through friends, 15% through

pamphlets and 10% through hoarding, banner & television.

It is revealed from the above study that 44% of customers are dealing with

CANARA Bank from last 3-5 years, 26% of customers are dealing with Bank from

last more than 5 years, 20% of customers are dealing with Bank from last 2-3 years

and 10% of them are dealing with Bank from last one year.

The study shows 24% customers have opened their account in CANARA Bank due to

good network of branches. 52% customers have opened their account due to quality

of services provided by the CANARA Bank. Only 14% customers have opened their

account due to brand name. Other 10% customer’s response to one stop bank reason.

CANARA Bank is a one stop bank because it provides all modern banking facilities

and products to customers under one roof.

It is depicted from above study that 60% customers spent only 5 to 10 minutes to

perform only transaction in the Bank. 30% customers spent 5 to 10 minutes and

only 10% customers spent more than that in CANARA Bank.

It is clear from the above study that 50% of the customers are satisfied with the time

taken by bank for opening of an A/c, 48% of the customers are highly satisfied

with the time taken by bank for opening of an A/c & 2% of the customers are not

satisfied with the time taken by bank for opening of an A/c. Therefore, it has been

analyzed that most of the customers of the bank are satisfied with the time taken by

bank for opening of A/c in CANARA Bank.

From the above study it is clear that majority of the respondents are average

satisfied with products and services provided by CANARA Bank It has been observed

that the most of the customers are satisfied with the time taken by bank for clearing

of cheques.

From the study it is clear that 86% customers would like to

recommend the name of CANARA Bank to other persons. Only 4% customers

would not like to recommend the name of CANARA Bank and 10% customers are

confused to give response.

The staff behaviour of CANARA Bank is satisfactory.

 SUGGESTIONS

More ATM coverage should be provided for the convenience of the customers.

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

The bank should bring out new schemes at time-to-time so that more people can be

attracted. Even some gifts and prizes may be offered to the customers for their

retention.

In order to create awareness regarding the various products and

services provided by CANARA Bank, various medium of media can put to

use to advertise about the services provided by the bank. This help to

change the attitude of the people regarding the private banks.

New strategies should be made by the bank which enables them to

face the competition with other private leading banks like HDFC and

IDBI.

Customers generally complain that full knowledge is not granted to them. Thus

the bank should properly disclose the features of the product and services to the

customers. Moreover door to door services can also be introduced by bank.

The need of the customer should properly be understood so that customer feels

satisfied. The relationship value should be maintained. The branch should promote

cooperation and coordination among employees which help them in efficient

working.

Maintenance of proper hierarchy should be done. A good hierarchy set up can

ensure better results with in the bank.

The banks can aware the customers about various products and services by:

 Advertisements

 Tele-calling

 Giving broachers to the customers

CONCLUSION
 CONCLUSION

The customer satisfaction is very important for success of Bank. Only those Banks will be at

the top which satisfied their customer. If the employees are performing their Job efficiently it

will improve the customer relations.

The face of Indian banking is changing rapidly. The competition and challenges in

Indian banking sector is increasing day by day. I made this project on the topic entitled

“Customer satisfaction in CANARA Bank”. From the above study I concluded that the

account holders of CANARA Bank are satisfied with the bank. The banking is

providing all modern banking products & services like Saving A/c, Current A/c, Fixed

Deposits, NRI A/c, Loans, Insurance, ATM, Internet Banking, Phone Banking, Debit Card

etc. to customers of CANARA Bank.

CANARA Bank is the no. 1 private sector bank in India. CANARA Bank has to take

necessary initiatives in order to increase customer base. The bank should increase number

of branches and install ATMs at the prime locations of Jalandhar. The bank can also

introduce gifts and prizes from time to time. The interest for different deposits account should

be increased.

From the above study, I can conclude that CANARA Bank has maintained

excellent position in the market and the customers are satisfied with the

overall performance of CANARA Bank. So, we can say that CANARA Bank is well

known for understanding the customer needs in the modern era of banking.
BIBLIOGRAPHY
 BIBLIOGRAPHY

Books :

P. N. Varshney, Indian Financial System And Commercial Banking,

published by Sultan Chand & Sons, Edition-1999

Dr. R. R. Paul : Banking & International Trade, Kalyani Publishers,

Edition -1996

Websites :

www.CANARAbank.com
ANNEXURE
 QUESTIONNAIRE

1. Are you aware of CANARA Bank ?

Yes No

2. Are you aware of banking products provided by CANARA Bank?

Saving A/c Current A/c

Fixed Deposits NRI A/c

Loans

3. Which of the modern banking services are you aware of?

ATM Network Internet Banking

Phone Banking SMS Banking

Debit Card

4. Are you satisfied with the modern banking services provided by

CANARA Bank?

Yes No

5. How do you come to know about these products & services of

CANARA Bank ?

TV Friends

Hoarding /Banner Newspaper

Pamphlets
6. From how long the you are dealing with CANARA Bank ?

1 Year 2-3 Years

3-5 Years More than 5 years

7. Why do you have opened account with CANARA Bank ?

Network Quick Services

Brand Name One stop bank

8. How much time you spent for any transaction in CANARA Bank ?

5 to 10 minutes 15 to 20 minutes

More than 20 minutes

9. Are you satisfied with the time taken by bank for opening of an

account ?

Highly satisfactory Satisfactory

Not satisfactory

Q10. Are you satisfied with the products and services provided by CANARA

Bank ?

Highly Satisfied Satisfied

Average Satisfied Not Satisfied

10. Are you satisfied with the time taken by bank for clearing of
cheques:

Highly satisfactory Satisfactory

Not satisfactory
12. How many times do you visit CANARA Bank in a month?

1-4 Times 5-10 times

11-15 times Never

13. Would you like to recommend the name of CANARA Bank

to your known person ?

Yes No Can’t Say

14 How do you rate the attitude of staff of CANARA Bank

towards customers ?

Highly Satisfied Satisfied

Dissatisfied Highly Dissatisfied

Q15. Are you satisfied with overall performance of CANARA Bank?

Highly Satisfied Satisfied

Average Satisfied Not Satisfied

Thanks for participating in the Survey.