RESEARCH PROJECT REPORT

TITLED
“A STUDY ON JOB SATISFACTION OF EMPLOYEE IN
BANKING SECTOR”
Submitted in pursuant to the ordinances for award of
the degree of

MASTER OF BUSINESS ADMINISTRATION

From
Dr. A. P.J. A. K. Technical University, Lucknow

Project Submitted By: Project Supervisor:

Sada Shakeel Mr. Rama Raman Pandey
MBA 4th Sem Asst. Prof.
Roll No. 1812070029 Dept. of Business Administration

Department of Business Administration

INSTITUTE OF TECHNOLOGY AND MANAGEMENT

Gorakhpur 2019-20
 CERTIFICATE

This is to certify that Sada Shakeel has completed the research project titled
“A STUDY ON JOB SATISFACTION OF EMPLOYEE IN BANKING
SECTOR” in pursuant to the ordinances for award of the degree of Master of
Business Administration under my guidance to the best of my knowledge it is
her original work.

Date: Project Supervisor

Mr. Rama Raman Pandey

Countersigned by HOD
 DECLARATION

I hereby declare that this project report is based on the research undergone by
me on the topic “A STUDY ON JOB SATISFACTION Of EMPLOYEE
IN BANKING SECTOR” This is my original work and no part thereof has
been submitted anywhere else for any other academic purpose.

Date: ………………
Sada Shakeel
MBA 4th Sem
Roll No. : 1812070029
 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to all those who
have contributed significantly by sharing their knowledge and experience in
the completion of this research report.
I am extremely thankful to Mr. Rama Raman Pandey my research report
guide under whose guidance this research work was carried out. I thank him
for continuous support & mentoring during the tenure of report.
I am also thankful to Dr. Abhishek Kumar Tripathi (HOD), department of
business administration who provide platform to present the research report. I
wish to thank all faculty member of ITM, Gida, who provide expert guidance
throughout the research report.
I express my sincere thanks to all my friends for their support in completing
research report on time.
I am also thankful to my Parents and my sisters for helping me & supporting
me a lot in completion of the research report on time.
I would like to thank the “Almighty God” for giving me this privilege &
opportunity to share any knowledge with others.

Sada Shakeel
MBA 4th Sem
Roll No. : 1812070029
 ABSTRACT

Banks are the backbone of any country and therefore their contribution to the
nation should be the fullest. Job satisfaction is the favorable or an unfavorable
attitude with which the employee views his or her work. It expresses the amount of
agreement between one’s expectation of the job and the rewards that the job
provides. Job satisfaction, thus, is the result of various attitudes possessed by an
employee. These attitudes are related to the job under condition with such specific
factors such as wages, supervisors of employment, conditions of work, social
relation on the job, prompt settlement of grievances and fair treatment by
employer.

The banking sector in India has always been one of the most preferred destinations
for employment. In this decade, the banking sector has emerged as a sunrise sector
in the Indian economy. It is often said that “A Happy Employee is a Productive
Employee.” This study will try to what extent job satisfaction has lead to good
working performance and the factors which influence employee’s job satisfaction.
 TABLE OF CONTENT

Sr. No. TOPIC PAGE NO.

1 CERTIFICATE BY FACULTY
2 DECLERATION
3 ACKNOWLEDGMENT
4 ABSTRACT
CHAPTER-1
5 INTRODUCTION 2-3
6 LITERATURE REVIEW 4-6
7 TOPIC INTRODUCTION 7-40
8 OBJECTIVE OF THE STUDY 41
9 SCOPE OF THE STUDY 42
CHAPTER-2
10 INDUSTRY PROFILE 44-70
CHAPTER-3
11 RESEARCH METHODOLOGY 72-75
12 DATA ANALYSIS & INTERPRETATION 76-95
CHAPTER-4
13 FINDINGS 97
14 SUGGESTIONS 98
15 CONCLUSION 99
16 LIMITATION OF THE STUDY 100
17 BIBLIOGRAPHY 101
18 QUESTIONNAIRE 102-106
CHAPTER-1

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 INTRODUCTION

For almost all the organization, employees are the vital resource and they represent an important
asset of any Industry. Of all the “M”s in management such as materials, machines, methods and
money the most important “M” stands for men i.e. manpower working in the organization. Now
a day it is a widely accepted fact that a happy worker is a valuable asset to any organization
contributing to prosperity. As employees are the precious asset of organization, the satisfaction
of all employees in their work is very important. Hence, it is vital for any organization to satisfy
their employees. Human resource management is concerned with developing potential of
employees so that they get maximum job satisfaction from their work and give their best efforts
to the organization.

The study made regarding the job satisfaction in banking sector will facilitate and enables the
management to know the perceptions and inner feelings regarding the job. It helps to identify the
causes for satisfaction and dissatisfaction among the employees. This study helps to understand
the employee’s perspective towards bank.

Job satisfaction refers to an individual’s complex attitude towards his or her job. It is a
pleasurable emotional state arising from the appraisal of one’s job or job experience. Job
satisfaction or dissatisfaction is a function of the perceived relationship between what one wants
from one’s job and what one perceives it as offering or entering.

Job satisfaction is often determined by how well outcome meet or exceed expectations. For
instance, if employee feels that they are working much harder than others in the department but
are receiving fewer rewards he will probably have a negative attitude towards the work, the boss,
and co-workers. On the other hand, if they feel they are being paid equitably, they are likely to
have positive attitude towards the job.

As work is an important aspect of people’s lives and most people spend a large part of their
working lives at work, understanding the factors involved in job satisfaction is crucial.

There are various factors which influence job satisfaction of an employee’s like working
environment, fair policies and practice, caring organization, appreciation, pay, age, promotion

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policy of the organization, feel of belongings, initiation and leadership, feel of being loved,
safety and security, challenges, responsibilities, creativity in job, personal interest and hobbies,
respect from co-workers, relationship with supervisor, feedback, flexibility, nature of work.

Job satisfaction is all about how one feels about (or towards) one’s job. An employee who
expresses satisfaction is said to have a positive attitude towards the job, unlike a dissatisfied
employee who has a negative attitude towards the job. A person having negative attitude shows a
personality disposition which is inclined to experience nervousness, tension, worry, upset and
distress, where as those with positive attitude will feel happy with themselves, others, and with
their work.

Employees are most satisfied when their job offer them security from economic strain,
recognition of their effort, clear policy of grievances, opportunity to contribute ideas and
suggestions, participation in decision making, opportunity for promotion , sound payment
structure, health and safety measures, communication system and atmosphere of mutual trust and
respect.

Employee satisfaction is one of the major issues in any organization. Employee’s performance,
motivation, productivity, behaviour, participation in an organization and overall contribution
depend upon the satisfaction level of the employee. So, every organization is giving higher
priority to keep their employees with satisfaction by providing various facilities which improves
satisfaction and which reduces dissatisfaction.

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 LITERATURE REVIEW

Job Satisfaction is all about how a person likes the job. It is actually more of a journey than being
a destination. It is of utmost requirement to organizations as it will increase the job involvement
level of the employees and decrease the turnover. Job satisfaction has been a fascinating concept
for researchers as well as experts since number of decades. This paper presents the study of past
literatures of job satisfaction between the years 1981 to 2014. The purpose is to find out the
different attributes used for evaluating the job satisfaction. From the review of extant literature, it
has been found that it is always not salary which leads to job satisfaction rather it is the work
environment.

Keywords: Job Satisfaction, Attributes, Turnover, Work environment

Human resource is considered to be the most valuable asset in any organization. It is the sum-
total of inherent abilities, aptitudes of the employed persons who comprise executives,
supervisors and the rank and file employees. The human resources should be utilized to the
maximum possible extent, in order to achieve individual and organizational goals. It is thus the
employee’s performance which ultimately decides the attainment of goals. Hence, the
employee’s performance is to a large extent influenced by motivation and job satisfaction.

Job satisfaction is all about how one feels about (or towards) one’s job. An employee who
expresses satisfaction is said to have a positive attitude towards the job, unlike a dissatisfied
employee who has a negative attitude towards the job. A person having negative attitude shows a
personality disposition which is inclined to experience nervousness, tension, worry, upset and
distress, where as those with positive attitude will feel happy with themselves, others, and with
their work.

Job satisfaction reflects the extent to which people find gratification or fulfillment in their work.
Job satisfaction shows that personal factors such as an individual needs and aspirations
determine his/her attitude, along with group and organizational factors such as relationships with
co-workers and supervisors and working conditions, work policies, and compensation. A
satisfied employee tends to be absent less often, to make positive contributions, and to stay with
the organization. The effect of job satisfaction goes beyond organizational setting.

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Satisfied employees are more likely to be satisfied citizens. These people will hold a more
positive attitude towards life in general and make for a society of more psychologically healthy.
Job satisfaction has been considered as state of condition where people are:

1) Induced to do work efficiently and effectively;

2) Convinced to remain in the enterprise;

3) Prepared to act efficiently during contingences;

4) prepared to welcome the changes without resistance;

5) Interested in promoting the image of the organization; and

6) More happy and satisfied with their job. The level of job determines the job satisfaction.

Dimensions of Job satisfaction

There are three important dimensions to job satisfaction:

Job satisfaction refers to one’s feeling towards one’s job. It can only be inferred but not seen.

Job-Satisfaction is often determined by how well out-comes meet or exceeds expectations.

Satisfaction in one’s job means increased commitment in the fulfillment of formal requirements.
There is greater willingness to invest personal energy and time in job performance.

The terms job satisfaction and job attitudes are typically used interchangeably. Both refer to
effective orientations on the part of individuals towards their work roles which they are presently
occupying. Positive attitudes towards the job are conceptually equivalent to job satisfaction and
negative attitudes towards the job indicate job dissatisfaction.

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Review of Literature

Savery (1989) highlighted the job satisfaction of nurses in Perth, Western Australia. The job
satisfaction level of the nurses was mainly due to interesting and challenging work which was
followed by a feeling of achievement wherein, he even said salary was ranked as a very low
satisfier. The job satisfaction level increased as the person grew old where in the variables like
gender, time in hospital, position held were controlled. Organizations should always focus on
satisfying the three basic needs (Individual motivators, Employee relationships and personal
relationships) of an employee which will in return help the employees in achieving job
satisfaction.

Melvin (1993) stated that the environmental design of an organization plays a very important
role in job satisfaction at the same time it also plays an important role in employee’s high job
involvement. A good environmental design of an organization helps in resolving the conflicts
and confusion. The author even cites that it is the responsibility of the management to design the
environment in such a manner that it reduces the dissatisfaction where in the work tasks, working
patterns are properly mentioned.

It indicates there are many factors which help in achieving job satisfaction. The factors may be
the type of work assigned to them; work environment, work design etc. Salary is certainly an
important factor but it always doesn’t play such a big role as it looks. Non-monetary benefits
play a bigger role at large. Therefore, organizations have to have a intellect think on their HRM
system on a regular basis so that it helps in improving the system, work environment, decreasing
the job stress and finally leading to job satisfaction and more job involvement. Future studies can
focus on factors such as mentoring, coaching and personal development plans influencing job
satisfaction. The next generation employees, the Z generation is a completely different breed.
Researches focused on understanding what influences the job satisfaction of these employees
will be quite relevant for the organizations.

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 TOPIC INTRODUCTION

MEANING OF JOB SATISFACTION

The term “job satisfaction” refers to an employee general attitude towards his job. Job
satisfaction is how content an individual is with his or her job. A person with a high level of job
satisfaction holds positive attitude towards the job, while a person who is dissatisfied with his or
her job holds negative attitude about the job.

It is the feeling and perception of a worker regarding his or her work and how he or she feels
well in an organization. It indicates the extent of employee’s positive or negative feelings
towards their job and organization can try to improve it.

DEFINITION OF JOB SATISFACTION

“Job satisfaction does not seem to reduce absence, turnover and perhaps accident rates.”

Robert L. Kahn

“Job satisfaction is a general attitude towards one’s job. The difference between the amount of
reward workers receive and the amount they believe they should receive.”

P. Robbins

“Job satisfaction defines as the amount of overall positive affects (or feeling) that individuals
have towards their jobs.”

Hugh J. Arnold and Daniel

“Job satisfaction is a set of favourable or unfavourable feelings with which employees view their
work.”

Keith Davis & Newstrone

“A pleasure or positive emotional state resulting from the appraisal of one’s job or job
experience.”

E.A Locke

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“Job satisfaction as a general attitude of the workers constituted by their approach towards the
wage, working conditions, control, promotion related with job, social relations in the work,
recognition of talent and some similar variables personal characteristics, and group relations
apart from the work life.”

Blum & Naylor

“Job satisfaction can be defined as the employee’s judgment of how well his job on whole is
satisfying his various needs.”

Smith

From the above meaning and definition of job satisfaction we can define the job satisfaction as
the general attitude of employee’s towards their job. It is one’s feeling or state of mind regarding
the nature of their work. It describes how content an individual is with his or her job.

It is a person’s feeling of satisfaction on the job, which acts as a motivation to work. It is not self
satisfaction, happiness or self contentment but satisfaction on the job.

It is not the same as motivation. It is linked to productivity, motivation, absenteeism, mental

health, physical health and general life satisfaction.

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The Nature and Scope of Job Satisfaction

Job satisfaction is often thought to be synonymous with job attitude, but is important to recognise
that those with different theoretical orientations may use the term somewhat differently. Some
measure job in terms of gratification of strong needs in the work place. Others see it as the
degree of discrepancy between what a person expects to receive from work and what that person
perceives is actually relieved. It can also be defined as the extent to which work is seen as
providing those things that one considers conducive to one’s welfare. In yet another view, job
satisfaction is considered a purely emotional response to job satisfaction.

The characteristics of job which give the job satisfaction to the employees are the dependent
variables of job satisfaction; some of them are listed by Locke and others. Important among them
are given below:

1) Challenging job:

Employees perceive to have a challenging work in an organization and this will develop an
active state and will be satisfied with his job.

2) Equitable rewards:

More than the rewards, equity and fairness of reward is equally important.

3) Supportive working conditions:

Supportive working conditions are equally important as the condition of work itself improves job
satisfaction. Persons are interested to accept even a lower pay if the work place is near to their
home.

4) Supportive colleagues and supervisors:

This is yet another aspect which satisfies an employee.

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Job satisfaction has been considered as state of condition where people are:

 Induce to do work efficiently and effectively.

 Convince to remain in the enterprise.
 Prepare to act efficiently during contingences.
 Prepare to welcome the changes without resistance.
 Interested in promoting the image of the organization
 More happy and satisfies with their job.

Purpose of Job Satisfaction

For Organisation

1) Enhance employee retention

2) Increase productivity

3) Increase customer satisfaction

4) Reduce turnover, recruiting and training costs.

5) Enhance customer satisfaction and loyalty

6) More energetic employees

For Employees

1) Employees will believe that the organization will be satisfying in the long run.

2) They will care about the quality of their work.

3) They will create and deliver superior value to the customer.

4) They are more committed to the organization.

5) Their work is more productive.

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Why to Study About Job Satisfaction

In my point of view, study of job satisfaction of employees helps the organization to maintain a
standard and increase productivity by motivating the employees. This study tells us how much
the employees are capable and their interest at work place. What are the things still to be satisfy
to the employees. Although human resource are most valuable resource of any organization, so
the study of employees job satisfaction helps the organization to know the satisfaction level of
employees and to identify what are things that affects them not to work properly.

Job satisfaction is the condition of establishing a healthy organizational environment in an

organization. Individuals want to maintain statue, high ranks and authority by giving their
capabilities such as knowledge, ability education, health etc. The individuals who can’t meet
their expectations, with regard to their jobs become dissatisfied. Thus this dissatisfaction affects
the organization for which he or she works.

Job satisfaction is very important for a person’s motivation and contribution to production. Job
satisfaction may diminish irregular attendance at work, replacement workers with in cycle or
even the rate of accidents.

Job satisfaction is an employee’s thought and emotions towards their job and how they evaluate
their job. This can be a judgment of their job overall, or of specific judgment such as pay,
promotions, work tasks, co-workers and supervisors. It is important for organizations to care
about their employee’s job satisfaction. It will promote employees organizational commitment
when they are satisfied with their jobs.

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Job Satisfaction Leads To

 Motivate towards high productivity.

 Want to remain with organization.
 Act effectively in crisis.
 Accept necessary changes without resistance.
 Promote the interest of the workers in the organization.

Workers Role in Job Satisfaction

Job satisfaction and occupational success are major factors in personal satisfaction, self-respect,
self-esteem, and self-development. To the worker, job satisfaction brings a pleasurable emotional
state that can often leads to a positive work attitude. A satisfied worker is more likely to be
creative, flexible, innovation and loyal. If job satisfaction is a worker benefit, surely the worker
must be able to contribute to his or her own satisfaction and well being on the job.

Following are some of the roles of workers in job satisfaction:

 Acquire new job related knowledge that helps you to perform tasks more efficiently and
effectively. This will relive boredom and often gets one noticed.
 Demonstrate creativity and initiative. Qualities like these are valued by most
organizations and often results in recognition as well as in increased responsibilities and
rewards.
 Develop team work and people skills. A large part of job success is the ability to work
well with others to get the job done.
 Develop excellent communication skills.
 See the value in your work. Appreciating the significance of what one does can lead to
satisfaction with the work itself.
 Accept the diversity in people. Accept people with their differences and their
imperfections and learn how to give and receive criticism constructively.

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Determinants of Job Satisfaction

There are a number of factors influencing the employee’s job satisfaction. There are various
personal and organizational factors that influence job satisfaction. The following chart indicates
the determinants of job satisfaction.

Determinants of job Satisfaction

PERSONAL FACTORS ORGANISATION FACTORS

 Age  Nature of Work

 Gender  Pay and other
 Educational benefits
Qualification  Superior –
 Experience subordinate
 Ability relationship
 Perception  Interpersonal
relationship
 Opportunities for
advancement

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A) Personal factors

1) Age:

The age of a person does have its influence on his level of job satisfaction. People who are young
usually have a higher level of job satisfaction provided they rightly choose their career. Those in
their twenties or thirties are energetic and have the stamina to work hard and derive pleasure out
of their work. As a person gets older, he gets tired physically and mentally. Further, he reaches
the saturation point at this stage and the work, usually, does not give him the pleasure it gave
earlier.

2) Sex:

There is a feeling among many employers that women employees are much more committed to
work than men. Such employers prefer to appoint women in their concerns. A women employee
who is able to show greater commitment to work naturally should derive higher level of
satisfaction.

3) Educational satisfaction:

The job satisfaction level of people with higher educational qualification is generally found to be
low. This happen because such people always look for better employment opportunities. A
person deriving pleasure out of his present job, which is also remunerative, need not look for
better employment prospects.

4) Experience:

The experience of an employee gives him exposure to many difficult work situations. This
enables him to learn the art of managing crisis. Such persons, in view of their ability to tackle
any critical work situation, should naturally have greater job satisfaction than those who are
inexperienced. It may be mentioned here that the age and experience of a person need not go
together.

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5) Ability:

An employee who lacks the capability to perform his job, obviously, cannot derive job
satisfaction. Performance is vital for job satisfaction. Only those who have the ability will be
able to perform. It may be mentioned here that the satisfaction accruing to a person out of the
monetary benefits he gets from his employment is temporary. In the long run, performance alone
can give him satisfaction.

6) Perception:

Job expectations differ from person to person. This is in view of differences in one’s perception.
Some individuals may be interested in challenging jobs while others may be interested in routine
work. Still, there are some who may be prepared to do any work for the sake of monetary
benefits. The extent to which the expectations of a person have been fulfilled is yet another
determinant of job satisfaction.

B) Organizational factors

1) Nature of work assigned:

The work assigned to an employee should be of interest to him. What appears to be an interesting
job to one may appear to be uninteresting to another and so says the proverb, “one’s man food is
another man’s poison”. It is therefore, important that the employer understands the capabilities
and preference of his employees before assigning them work.

2) Pays and other benefits:

Pay and other tangible benefits offered to employees, although cannot determine job satisfaction
in all cases, are not unimportant. An employee who derives pleasure out his job cannot be
indifferent to pay and other benefits to which he is entitled. An employee, therefore, needs to be
given pay commensurate with his job and responsibilities. Similarly, social security benefits like
provident fund, insurance etc., also need to be provided to employees as per rules. Where these
benefits are inadequate, the level of job satisfaction is bound to be low.

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3) Superior-Subordinate Relationship:

Sometimes, an employee may be fully satisfied with his job. But if his superior tries to find fault
with him unnecessarily, the employee gets disturbed mentally. This affects satisfaction. It is,
therefore, necessary that the superior-subordinate relationship is cordial in any workplace.

4) Inter-Personal Relationship:

When the relationship between the employees working as a group is not cordial, it will affect
individual performance. This happens because of two reasons. First, co-ordination becomes
difficult when inter-personal relationship is not good and second the employee gets disturbed
psychologically. When such a trend continues, it results in job dissatisfaction in the long run.

5) Opportunity for advancement:

Where, in an organization, there are no opportunities for promotion, the employees may have to
remain in the same job till their retirement. There may not be any change even in their
designation. Such employees may not work with enthusiasm. Lack of promotion opportunities,
thus, promotes job dissatisfaction.

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Ways of Measuring Employee Job Satisfaction

There are a number of ways of measuring Employee Job Satisfaction. This is not surprising since
hundreds of studies have been conducted over the past three and half decades, employing varied
techniques. The most common ways of measurement include rating scales, critical incidents,
interviews, attitude survey, observing actual behaviour.

Many organization face challenges in accurately measuring job satisfaction, as the definition of
satisfaction can differ among various people within an organization.

Most used approaches to measuring job satisfaction of the employees are:

1) Critical incident:

The critical incidents approach to the measurement of job satisfaction was developed by
Herzberg and his associates in their research on the two factor theory of motivation. Employee’s
was asked to describe incidents on their job when they were particularly satisfied or dissatisfied.
These incidents were then content analyzed in determining which aspect were closely related to
positive and negative attitude.

2) Interview:

Employees are interviewed individually and the responses reveal their satisfaction and
dissatisfaction.

3) Likert scale:

This method of standardised survey was developed by Likert in 1932. In this, an individual is
asked to indicate agreement or disagreement with job factors. The individual is also required to
state how strongly he or she agrees or disagrees with a statement. This is normally done on a five
point scale. The normal practice is to incorporate the various statements in a questionnaire. The
subject is asked to respond to these statements, indicating the extent of his or her agreement or
disagreement.

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A value may be given to each response category in order to produce a numerical score, and the
different scores in each category may be added together to arrive at a total score. A high overall
score can be viewed as positive, whereas a low score indicates negative.

4) Single global rating:

The single global rating method is nothing more than asking individuals to respond to one
question such as all things considered, how satisfied you with your job ?

5) Summation score:

It identifies key elements in job and asks for the employees feelings about each.

Typical factors that would be included are the nature of the work, supervision, present pay,
promotion opportunities and relation with co-workers.

Besides this, in summation score, many researchers used so many ways of measuring job
satisfaction.

6) Minnesota satisfaction questionnaire:

The long form of this survey is made up of 100 questions based on 20 subscales which measure
satisfaction with ability, utilization, achievement, activity, advancement, authority, company
policies and practices, compensation, co workers, independence, creativity, moral values,
recognition, responsibility, security, social service, social status, supervision, human relation,
working condition.

7) Job satisfaction relative to expectations:

It assesses the degree of agreement between the perceived quality of broad aspects of a job and
employees expectations.

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Sources Of Job-Satisfaction

Several job elements contribute to job satisfaction. The most important among them are wage
structure, nature of work, promotion chances and quality of supervisors, work group and working
conditions.

Wages

Working Work
Condition

SOURCES OF JOB
SATISFACTION
Work Group
Promotion Chance

Supervision

1) Wages:

Wages play a significant role in influencing job satisfaction. This is because of two reasons.
Firstly, money is an important instrument in fulfilling one’s needs. Secondly, employees often
see pay as a reflection of managements concern for them.

Employees want a pay system which is simple, fair and in line with their expectations. When pay
is seen as fair, based on job demands, individual skill level and community pay standards
satisfaction is likely to result. What needs emphasis is that it is not the absolute amount paid that
matters rather it is one’s perception of fairness.
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2) Nature of work:

Most employees crave intellectual challenges on job. They tend to prefer being given
opportunities to use their skills and abilities and being offered a variety of tasks, freedom and
feedback on how well they are doing. These characteristics make jobs mentally challenging. Job
that has too little challenge creates boredom. But too much challenge creates frustration and a
feeling of failure. Under condition of moderate challenge, employees experience pleasure and
satisfaction.

3) Promotions:

Promotion is one of the sensitive issues in every employee’s life. Through promotion an
employee get recognition of his or her performance and is motivated to continue in this way.

Promotional opportunities affect job satisfaction considerably. The desire for promotion is
generally strong among employees as it involves change on job content, pay, responsibility,
independence, status and the like. It is no surprise that the employee takes promotion as the
ultimate achievement in his career and when it is realized, he feels extremely satisfied.

It is regarded as a chance that results in higher earnings. Promotion provides an employee higher
position and salary, respect, facilities etc.

4) Work group:

The work group does serve as a source of satisfaction to individual employees. It is well known
that, for many employees work fills the need for social interaction. The work group is a stranger
source of satisfaction when members have similar attitudes and values. Having people around
with similar attitudes causes less friction on a day to day basis. Co-workers with similar attitudes
and values can also provide some confirmation of a person’s self concept. ”We are ok and you
are ok”.

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5) Working condition:

Working conditions that are compatible with an employee’s physical comfort and those facilities
doing a good job contribute to job satisfaction. Temperature humidity, ventilation, lighting and
noise, hours of work, cleanliness of the work place and adequate tools and equipments are the
features which affect job satisfaction.

6) Supervision:

There is a positive relationship between the quality of supervision and job satisfaction.
Supervision who establish a supportive personal relationship with subordinates and take a
personal interest in them contribute to their employee satisfaction. On realizing the role of
supervision in creating satisfaction a number of supervisory roles have been suggested for the
purpose.

The following point list out the supervisory actions:

 Maintain open lines of communication.

 Create a good physical environment.
 Change the perception of dissatisfies employees.
 Give ample recognition.
 Allow for participative management.
 Practice good management.
 Conduct morale building programs.
 Display concern for employees.

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 Outcomes Of Employee Satisfaction

Following are some outcomes of employee satisfaction:

OUTCOMES OF EMPLOYEE SATISFACTION

Better Reduce Turnover Better Working Reduce Absenteeism

Performance environment

1) Job Satisfaction and Performance:

To society as a whole as well as from an individual employee's standpoint, job satisfaction in and
of itself is a desirable outcome. It is important to know, if at all, satisfaction relates to outcomes
variable. For example, if job satisfaction is high, will the employee perform better and the
organization are more effective. If job satisfaction is low, will there be performance problems
and ineffectiveness? The following sections examine the most important of these.

Most assume a positive relationship; the research to date indicates that there is no strong linkage
between satisfaction and performance. Conceptual, methodological, and empirical analyses have
questioned and argued against these results.

The best conclusion about satisfaction and performance is that there is, definitely a relationship.
The relationship may even be more complex than others in organization behaviour. For example,
there seem to be many possible-moderating variables, the most important of which is reward. If
people receive reward they feel are equitable, they will be satisfied, and is likely to result in
greater performance effort.

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2) Job Satisfaction and Turnover:

Unlike that between satisfaction and performance, research has uncovered a moderately
negatively relationship between satisfaction and turnover. High job satisfaction will not, in and
of itself, keep turnover low, but it does seem to help. On the other hand, if there is considerable
job dissatisfaction, there is likely to be high turnover. Obviously, other variables enter into an
Employees decision to quit besides job satisfaction. For example, age tenure in the organization,
and commitments to the organization, may play a role. Some people cannot see themselves
working anywhere else, so they remain regardless of how dissatisfied they feel.

Another factor is the general economy, typically there will be an increase in turnover because
will being looking for better opportunities with other organization.

High employee turnover is of concern for employers because it disrupts normal operations and
increases the cost involved in selecting and training replacement. The employer does whatever
possible to minimize turnover, making the employees feel satisfied in their jobs, being one such.

3) Job Satisfaction and Absenteeism:

Research has only demonstrated a weak negative relationship between satisfaction and
absenteeism. As with turnover, many variables enter into the decision to stay home besides
satisfaction with the job. For example, there are moderating variables such as the degree to
which people that there job are important. For example, research among state govt. Employees
has found those who believed that there was important had lower absenteeism than did who did
not feel this way. Additionally, it is important to remember that although job satisfaction will not
necessarily result in absenteeism, low job satisfaction more likely to bring about absenteeism.

4) Better working environment:

When employees are enjoying a higher degree of job satisfaction they tend to be more helpful
and friendly to their colleagues at work. This help to promote teamwork where sharing of
information and knowledge is enhanced.

It also leads to a better and safer working environment with lesser negative conflicts.

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5) Employee satisfaction can lead to customer satisfaction:

It is necessary for a successful organization to satisfy their customers, and the value of the
employee’s satisfaction in this respect should not be ignored.

Satisfied employees are more likely to be friendly, upbeat and responsive which customers
appreciate. These qualities build customer satisfaction and loyalty. In other words, when the staff
is happy, the customers will be too.

It is a strong belief that today’s employee satisfaction, loyalty, and commitment influence
tomorrow’s customer satisfaction, loyalty and commitment and ultimately the organization will
earn more profit.

6) Job satisfaction and productivity:

Employees who report high job satisfaction tend to achieve higher productivity. Employee’s who
are happy in their jobs tend to work harder and are more motivated in their work – leading to
greater productivity. It is generally assumed that a satisfied employee will be a productive
employee. It is quite natural that greater positive feelings about work lead to greater output and
higher quality of work.

7) Job satisfaction and Union Activities:

It has been proved that satisfied employees are generally not interested in unions and they do not
perceive them as necessary. Job dissatisfaction has proved to be the major cause of unionization.
The employees join the unions because they feel that individually they are unable to influence
changes which would eliminate the causes of job dissatisfaction. The level of union activities is
related to the level of job dissatisfaction.

8) Other effects of Job Satisfaction:

In addition, there are a number of other effects brought about by high job satisfaction. Highly
satisfied employees tend to have better physical and mental health, learn the new job related
tasks easily, and have less job stress and unrest. Such employees become more cooperative such
as helping co-workers, helping customers etc.

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Outcomes Of Employee Dissatisfaction

Following are some of the outcomes of employee dissatisfaction:

OUTCOMES OF EMPLOYEE
DISSATISFACTION

Job Stress High Lack of Less Profit

employee Productivity
turnover rates

1) Job stress:

When employees are not happy with their jobs, they are much more likely to experience and
report stress on the job. Workers who are satisfied or happy at work are much less likely to
report feeling stressed out by their job.

2) High employee turnover rates:

Low job satisfaction also creates high turnover rates with employees. Sooner or later, the
employee is going to quite so that they can find a job they actually enjoy doing.

3) Lack of productivity:

Low job satisfaction coupled with low employee morale equals a lack of productivity in the
workplace. It is a basic human nature that if he or she is unhappy, they don’t focus well and they
don’t pay attention to their tasks.

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4) Less Profit:

If the employees are not satisfied with their jobs, then they cannot give a better service to the
customers and it will lead to a lower level of profit to the organization.

Steps To Improve Job Satisfaction

The following measures may be adopted to have a higher level of job satisfaction among
employees.

1) Selection of right man for right job.

2) Payment commensurate with the employee’s credentials.

3) Conductive working environment.

4) Cordial superior-subordinate relationship.

5) Better inter-personal relationship.

6) Provision of suitable promotion opportunities.

7) Creation of facilities for training.

8) Job rotation where desirable.

10) Encouraging employee’s participation in decision making.

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IMPORTANCE OF JOB SATISFACTION

Following are some of the importance of job satisfaction:

1) Increased productivity level:

When the management of the firm along with the immediate manager or supervisor of the
employee that vital steps in understanding the job satisfaction, the employees will work with
utmost agility and motivation. He will make sure to complete his work well on time and also
maintain the parameters of quality.

Hence the productivity level of the firm will increase helping the firm to accomplish its aim and
objective at much faster rate and time.

2) Retain employees:

It is a universal fact in the world of corporate management that the firm cannot make progress
just with the help and support of a few members of the management. It does require the help and
support of the employees that are expert and talented in various areas and aspects.

Hence it is very important to keep the employees happy and satisfied in the area of their work so
that they keep on doing quality work and come up with innovative ideas.

3) Positive word of mouth:

There are so many examples of cooperate firms that are known for earning bad and negative
reviews from their past and current employees. The main reason behind the same is that the firm
doesn’t really care about the job satisfaction of the employees and the employees discuss their
issues with the friends, family and loved ones that showcase the firm and its management in a
negative light.

Hence, it is quite significant for the firms to realize and follow the importance of job satisfaction
of the employees to attain the objective of positive word of mouth in the market and industry as a
whole.

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4) Innovation:

When the employees are motivated and valued at their workplace and are rewarded for their
work, they put extra efforts. They come up with the ideas and strategies that are innovative in
nature. Plus they execute the same in the finest possible manner as they are absolutely happy and
satisfied.

5) Positive work environment:

Along with understanding and following the importance of job satisfaction, the management of
the firm also has to understand the fact that personal bias towards any specific employees has a
direct or indirect effect on the job satisfaction. This result in the factor of insecurity, affecting the
overall work environment of the firm with the further reduction in the productivity level.

6) Competitive advantage:

There is a level of completion within the firms in the market not just on the basis of the offering
of products and services but also on the quality of workforce and talent that the firm posses. The
firms keep on eyeing the talented employees of their contemporary firms by offering higher
salaries and many other perks.

But if the employees are satisfied with his job and the management, he will never leave the firm
no matter how lucrative and attractive job offer is. In this way the firm leads the competitive
edge and advantages in the market.

7) Growth and glory of the organization:

The growths of the firm do not lie alone in the hand of key members of the management only. It
is with the help and support of the staff that is expert, experienced, and talented to conduct the
various task of the firm in an efficient and effective manner. And all this results in the growth
and glory of the firm in the market beating the competition and changing dynamics of the
market.

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Response to Job Dissatisfaction

The last thing about job dissatisfaction is the ways through which employees express their job
dissatisfaction. There are several ways of expressing employee dissatisfaction. For example,
employees can complain, steal organizational property or avoid a part of their work
responsibilities. Most serious is quitting the organization itself.

1) Exit:

Represent behaviour directed towards leaving the organization. Also includes looking for a new
position as well as resigning.

2) Voice:

Actively and constructively attempting to improve conditions includes suggesting improvements,

discussing problems with superiors, and some forms or union activity.

3) Loyalty:

Passively but optimistically waiting for conditions to improve, includes speaking for the
organization in the face of the external criticism and trusting the management and the
organization to do the right things.

4) Neglect:

Passively allowing conditions to worsen, includes chronic absenteeism, reduced effort and
increased error rate.

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 Theories of Job Satisfaction

There are lot of theories in terms of job satisfaction which are interpreting and explain about how
and what can make people more satisfied. The variety of these theory indicate that how
important is job.

Career is not only for life earning, but because of the fact that each employee spend more than
one third of his day at his job, so it is tied to individual’s happiness. It is obvious that people tend
to be more successful and try harder in the job which they have chosen if they have a high level
of job satisfaction.

Here are some common theories related to job satisfaction, include Herzberg theory, Maslow
need hierarchy theory, Dispositional theory, and Discrepancy theory, Need fulfilment theory.

Beside these theories there are various others theories of job satisfaction.

The most common and prominent job satisfaction theories are:

Discrepancy Theory

This theory is propounded by E.A Locke. According to this theory job satisfaction depends upon
what a person actually receives from his job and what he expects to receive. When the reward
actually received a less than the expected rewards it causes dissatisfactions. In the words of
Locke, “Job satisfaction and dissatisfaction are function of perceived relationship between what
one wants from one’s job and what one perceived it is actually offering”. In other words,
Satisfaction is the difference between what one actually received and what he feels he should
receive.

A=Expected outcomes received

B=Output which received

If A> B then perceived dissatisfaction.

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If A=B then perceived satisfaction.

If A<B then perceived over satisfaction.

Maslow’s Need Hierarchy Theory

Abraham Maslow, a well known psychologist developed theory of motivation based on human
needs. This was one of the first theories to examine the important contributors to job satisfaction.

He mentioned that within every human being, there exists a hierarchy of five needs.

Self-
actualization

Self- esteem

Love and belonging

Safety and security

Physiological needs

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1) Basic Physiological Needs:

These are the most basic needs of individuals which are related to the survival and maintenance.
No employee can be motivated to work if his or her needs of food, cloth or shelter are not
satisfied. Therefore, the physiological needs are at the top of hierarchy of needs. For example-
For an employee salary is the basic need.

In the organizational context, physiological needs are represented by employees concern for
salary and basic working conditions. It is the duty of managers to ensure that these needs of the
employees are met so that they can be motivated to strive for gratification of higher order needs.

2) Safety/ Security Needs:

The next hierarchy of needs are the safety and security needs. Once physiological needs are met,
another set of motives, called safety or security needs, becomes motivators.

Security needs in to organizational context correlate to such factors as job security, safe working
conditions. Each individual requires security and protection from physical and emotional harm.
For example- Safe work environment, income stability, job security etc.

Managerial practices to satisfy the safety needs of employees include pension scheme, group
insurance, provident fund, gratuity, safe working conditions, grievance procedure etc.

3) Affiliation/ Belonging Needs:

The third in hierarchy of needs are the affiliation or belonging needs. This need arises when
physiological and safety needs are satisfied. It includes the acceptance, affection, cordial
relationship sense of belongingness etc.

In the organizational context, social needs represent the need for a compatible work group, peer
acceptance, professional friendship and friendly supervision.

For example- Informal organizational set up help employees to develop social relationships, the
cordial relationship between superiors, subordinates and colleagues give employees acceptance.

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4) Esteem Needs:

The fourth in hierarchy of needs are the needs are the esteem needs which include self-respect,
autonomy status, recognition and attention. It is part of non financial incentives.

In the workplace self esteem needs correspond to job title, merit pay increase, peer or
supervisory recognition, challenging work, responsibility.

Managerial practices to fulfil these needs include challenging work assignments, performance
feedback, performance recognition, personal encouragement and involving employees in
decision making.

For example- Employee’s feel satisfied if superior appreciate their contribution, listen to their
ideas, give attention to their grievances etc.

5) Self Actualisation Needs:

Finally, if all the earlier four level needs are satisfied, the need for self- actualisation comes to
the fore. Maslow characterized self-actualisation as the desire to become everything that one is
capable of becoming. It is the highest level in the hierarchy of needs which derives an individual
to realize his or her dream. It motivates an individual to perform to best of his or her abilities and
achieve the desired goals.

Need Fulfilment Theory

This theory believed that if a person receives what he wants or more than he wants or the thing
which is more important to him, he will be more satisfied, on the contrary when he does not get
the thing which he wants he will wants he will be more dissatisfied.

In other words, job satisfaction has positive relationship with those needs of an individual which
are be needed and expected.

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Two Factor Theory

In 1959, Fredrick Herzberg, a behavioural scientist proposed a two- factor theory. According to
Herzberg, there are some job factors that result in satisfaction while there are other job factors
that prevent dissatisfaction. Herzberg classified these job factors into two categories-

Job Satisfaction Job Dissatisfaction

Improving the Influenced by

8 Motivator Factors Hygiene Factors
Influenced by increases Job
Motivator Factors
satisfaction

 Achievement Improving the Hygiene  Working

 Recognition factors decreases job Conditions
 Responsibility Dissatisfaction  Co-worker
 Work itself Relations
 Advancement  Policies and
 Personal Rules
Growth  Supervisor
Quality
 Base wage,
salary

1) Hygiene factors

Hygiene factors are those job factors which are essential for existence of motivation at
workplace. These do not lead to positive satisfaction for long- term. But if these factors are
absent at workplace, and then they lead to dissatisfaction. Hygiene factors are those factors
which when adequate in a job, pacify the employees and do not make them dissatisfied. These
factors are extrinsic to work. Hygiene factors are also called as maintenance factors as they are
required to avoid dissatisfaction. Hygiene factors include:
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Pay:

The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.

Company policies and administrative policies:

The company policies should not be too rigid. It should be fair and clear. It should include
flexible working hours, breaks etc.

Security:

It is important that employees feel that their job is secure and they are not under the constant
threat of being laid- off.

Work Conditions:

Equipment and the working environment should be safe, fit for purpose and hygienic.

Relationship:

A healthy, amiable and appropriate relationship should exist between peers, superiors, and
sub-ordinates.

Supervision:

Supervision must be fair and appropriate. The employee should be given as much autonomy as is
reasonable.

2) Motivational Factors

According to Herzberg, the hygiene factors can not be regarded as motivators. The motivational
factors yield positive satisfaction. These factors are inherent to work .These factors motivate the
employee for a superior performance. These factors are called Satisfiers. These are factors

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involved in performing the job. Employees find these factors intrinsically rewarding.
Motivational factors include:

Achievement:

A job must give an employee a sense of achievement. This will provide a proud feeling of having
done something difficult but worthwhile.

Recognition:

A job must provide an employee with praise and recognition of their successes. This recognition
should come from both their superior and their peers.

The Work itself:

The job itself must be interesting, married and provide enough of a challenge to keep employees
motivated.

Responsibility:

Employees should “own” their work. They should hold themselves responsible for these
completions and not feel as though they are being micromanaged.

Advancement:

Promotion opportunities should exist for the employee.

Growth:

The job should be employee the opportunity to learn new skills. This can happen either on the
job or through more formal training.

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Dispositional Theory

Dispositional theory is also a noticeable theory in employee satisfaction and in compare to the
other theories regarding job satisfaction; it is probably the only one that focuses solely on the
natural disposition of a person. This theory says that an important factor to determine the level of
satisfaction which person has is one’s personality.

For example- an employee who turned inward and cannot show his talent may have lower level
of job satisfaction in compare to an employee who has self-confidence and more independent.

Equity Theory

The equity theory is primarily a motivation theory but it has some important things to say about
the causes of satisfaction and dissatisfaction. Adam’s equity theory, also known as the equity
theory of motivation, was developed in 1963 John Stacey Adam, a workplace behavioural
psychologist.

Under this theory, it is believed that a person’s job satisfaction depends upon his perceived
equity as determined by his input and output balance in comparison with the input and output
balance of others. Every individual compare his rewards with a ‘reference group’. Inputs
includes loyalty, hard work, commitment, efforts, time etc. Whereas outputs includes salary,
benefits, recognitions etc. If he feels his rewards are equitable in comparison with others doing
similar work, he feels satisfied.

Inputs are defined as those things that an individual does in order to receive an output. They are
the contribution the individual makes to the organization. Common inputs include the number of
hours worked (effort), the commitment shown etc.

Outputs (sometimes referred as outcomes) are the result an individual receives as a result of their
inputs to the organization. Some of these benefits will be tangible such as salary but some are
intangible such as recognition.

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There should be a balance of the outcomes/inputs relationship for one person in comparison with
that for another person. If the person thinks that the rewards are greater than what is considered,
he/she may work harder.

If the person perceives the rewards as equitable, he or she probably will continue at the same
level of output.

If the person feels that he or she is inequitably rewarded, he or she may be dissatisfied, reduce
the quantity quality of output.

Inequity = Person’s outcome/Person’s inputs < Others outcome/Other’s inputs

Equity = Person’s outcome/Person’s inputs = Other’s outcome/ Other’s inputs

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 Benefits of Employee Job Satisfaction Survey

A) One benefit of Employee job satisfaction survey is that they Give management an indication
general levels of satisfaction in a company. Surveys also indicate specific areas of satisfaction or
dissatisfaction (as with employee services) and particular groups of employee. In other words, a
survey tells how employees feel about their jobs, what parts of their jobs these feeling are
focused on, with department are particularly affected, and whose feelings are involved ( for
example, supervision, employee or staff specialists). The survey is powerful diagnostic
instrument for assessing employee problems.

B) Improved communication is another benefit of the surveys. Communication flows in all

directions as people plan the survey, talk and discuss its result. Particularly beneficial to the
company is, the upward communication when employees are encouraged to comment about what
they really have in their minds.

1. An unexpected benefit from an employee job satisfaction survey is improved attitudes. For some
employees, the survey is a safety valve, an emotional release, and a chance to get things off their
chest. For others, the survey is a tangible expression of management’s interest in employee
welfare, which gives employees a reason to feel better towards management.

2. The employee job satisfaction survey can help discover the causes of indirect productivity
problems, such as absenteeism, turnover and poor quality of work. If an organization is disturbed
by a high rate of absenteeism or turnover, it might opportunities, unchallenging jobs, unjust
treatment and the like. Without proper survey, there could be random guessing on the part of
management employee job satisfaction survey help management both to get a better handle on
why employees are lagging and to plan better handle solutions to problems.

3. Another benefit of satisfaction survey is that help management assess training needs. Usually,
employees are given on opportunity how they feel this supervisor performs certain parts of the
jobs, such as delegating work and giving adequate job instruction. Since employees experience
these supervisory acts, their perception may provide useful data about the training of their
supervisors

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4. One of the best uses of employee job satisfaction survey is in the evaluation of the impact of
organizational changes on employee attitudes. For example, the management wants to whether
the job redesign program recently implemented in the organization has resulted in increased
satisfaction to the employees. By comparing pre-change data and post- change data, it is easy to
determine what impact the redesigned work has on employee attitudes.

But the benefit discussed above would be realized subject to certain prerequisites. Following are
the conditions:

o Top management actively supports the survey

o Employees are fully involved in planning the survey.

o A clear objective exists for conducting the survey.

o The study is designed and administered consistent with standards of sound research.

o Management is capable and willing to take follow up action.

o Both the results and action plans are communicated to employees.

Employee satisfaction surveys can:

o Measure employee satisfaction level.

o Track changes in employee satisfaction over time.
o Improve overall satisfaction and retention.

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 OBJECTIVE OF THE STUDY

 To research the job satisfaction levels among the employees.

 To research the various factors affecting employee satisfaction.

 To know about supportiveness of superiors.

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 SCOPE OF THE STUDY

 Job satisfaction is an important output that employees for an organization.

 In the study an attempt has been made to analyze the job satisfaction of employees at
banking sector. The study tries to understand the level of satisfaction among the
employees at banking sector.
 Job satisfaction has been analyzed on the basis of various factors such as salary, bonus
policy, working environment, promotion policy, job security, superior and subordinate
relationship, nature of job, employee participation in decision making, training and
development provided to employee, grievance redressed procedure, performance
appraisal system, leaves policy etc.
 This study gives some suggestion for improving the job satisfaction of employees.
 It is an interesting and significant area for conducting research.

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CHAPTER-2

Page | 43
 INDUSTRY PROFILE

Introduction to Banking

Bank is defined in many ways by various authors in the book of economics and commerce. It is
very difficult to define a bank; because a bank performs multifarious functions may be defined in
many ways according to their functions. The evolution of different types of banks, each
specializing in a particular field, gives emphasis on each and every kind of bank. A general and
comprehensive definition to cover all types of banking institutions would be unscientific and
probably impossible. Each type of bank should have its own definition, explaining its specialized
functions. Legislators have understood this difficulty and that is why the bill of exchange Act
1882 (England) defines “A bank includes a body of persons, whether incorporated or not, who
carry on the business of banking”

From this definition it is clear to us that any institution, which performs the various banking
functions, may be termed as bank. But in practice it is found that many banking functions wary
from time to time and country to country. It is not possible on the part of a single bank to
perform all the banking functions at a time. So there originated numbers of specialized banks
with the objective of performing one or more functions. As for example, Central Bank,
Commercial bank, Industrial Bank, Agricultural Bank, Co-operative Bank etc., are seen in the
practical field.

Dr. Herbert L. Hart has defined a banker as “A banker is one who in the ordinary course of
business honours cheques drawn upon him by persons for whom he receives money on current
account”

According to Sir John Paget “No one and nobody corporate and otherwise can be a banker who
does not (i) take deposit accounts (ii) take current accounts (iii) issue and pay cheques drawn
upon him(iv) collect cherubs crossed and uncrossed for his customers”

Hilton banking commission defines bank or banker in the following words:

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“Every person, firm or company using in the description or its title, bank or banker or banking
and accepting deposits of money subject to withdrawal by cheque, draft or order”

In view of the above definitions, a simple and short definition can be given as “Bank is an
institution, which deals in money and credit”

According to this precise definition a bank accepts deposits from public and makes advances and
loans to them. In practice bank receives deposits of money in savings and current accounts at
lower rate of interest or profit and gives on credit to needy persons and businessmen at a higher
rate of interest or profit. It also transfers money for the clients from one city or country to
another and also performs various other agency services for earnings.

Banking in India

Banking in India in the modern sense originated in the last decades of the 18th century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786
and since defunct.

The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East India Company.
The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's
independence, became the State in 1955. For many years the presidency banks acted as quasi-
central banks, as did their successors, until the Reserve Bank of India was established in 1935.

In 1969 the Indian government nationalized all the major banks that it did not already own and
these have remained under government ownership. They are run under a structure know as
'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as
commercial banks. The Indian banking sector is made up of four types of banks, as well as the
PSUs and the state banks; they have been joined since the 1990s by new private commercial
banks and a number of foreign banks.

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Banking in India was generally fairly mature in terms of supply, product range and reach-even
though reach in rural India and to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development with things like
microfinance.

Indian Banking Industry currently employees 1,175,149 employees and has a total of 109,811
branches in India and 171 branches abroad and manages an aggregate deposit of 67504.54
billion (US$1.1 trillion or €820 billion) and bank credit of 52604.59 billion (US$880 billion or
€640 billion). The net profit of the banks operating in India was 1027.51 billion (US$17 billion
or €12 billion) against a turnover of 9148.59 billion (US$150 billion or €110 billion) for the
fiscal year 2012-13.

History of Banking in India

In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC). Later
during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was
an order on a banker desiring him to pay the money of the note to a third person, which
corresponds to the definition of a bill of exchange as we understand it today. During the
Buddhist period, there was considerable use of these instruments. Merchants in large towns gave
letters of credit to one another.

Colonial era

During the period of British rule merchants established the Union Bank of Calcutta in 1829, first
as a private joint stock association, then partnership. Its proprietors were the owners of the earlier
Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace
these two banks. In 1840 it established an agency at Singapore, and closed the one at Mirzapore
that it had opened in the previous year. Also in 1840 the Bank revealed that it had been the
subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845 but failed in
1848, having been insolvent for some time and having used new money from depositors to pay
its dividends.

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The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India, it was not the first though. That honour belongs to the Bank of Upper India, which
was established in 1863, and which survived until 1913, when it failed, with some of its assets
and liabilities being transferred to the Alliance Bank of Simla.

Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
and other infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and
a number of Indian joint stock banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally under capitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon
to observe, "In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi
movement. The Swadeshi movement inspired local businessmen and political figures to found
banks of and for the Indian community. A number of banks established then have survived to the
present such as Bank of India, Corporation Bank, Indian Bank,Bank of Baroda, Canara Bank and
Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by the name South Canara (
South Kanara ) district. Four nationalised banks started in this district and also a leading private
sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian
Banking".

During the First World War (1914–1918) through the end of the Second World War (1939–
1945), and two years thereafter until the independence of India were challenging for Indian

Page | 47
banking. At least 94 banks in India failed between 1913 and 1918 as indicated in the following
table:

Years Number of banks that Authorised capital Paid-up capital

failed
(Lakhs) (Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

Post-Independence

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. India's independence marked the end of a regime of the
Laissez-faire for the Indian banking. The Government of India initiated measures to play an
active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into greater involvement of the
state in different segments of the economy including banking and finance.

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The Major Steps To Regulate Banking Included:

The Reserve Bank of India, India's central banking authority, was established in April 1935, but
was nationalized on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to
Public Ownership) Act, 1948 (RBI, 2005b).

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India
(RBI) "to regulate, control, and inspect the banks in India".

The Banking Regulation Act also provided that no new bank or branch of an existing bank could
be opened without a license from the RBI, and no two banks could have common directors.

Nationalization in The 1960s

Despite the provisions, control and regulations of the Reserve Bank of India, banks in India
except the State Bank of India (SBI), continued to be owned and operated by private persons. By
the 1960s, the Indian banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as a large employer, and a
debate had ensued about the nationalization of the banking industry. Indira Gandhi, the then
Prime Minister of India, expressed the intention of the Government of India in the annual
conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalization."[7] The meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an ordinance
('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and
nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969.
These banks contained 85 percent of bank deposits in the country. [7] Jayaprakash Narayan, a
national leader of India, described the step as a "masterstroke of political sagacity." Within two
weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition
and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second dose of nationalization, the Government of India controlled around 91% of the
banking business of India. Later on, in the year 1993, the government merged New Bank of India

Page | 49
with Punjab National Bank. It was the only merger between nationalized banks and resulted in
the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the
nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian
economy.

Liberalization in the 1990s

In the early 1990s, government embarked on a policy of liberalization, licensing a small number
of private banks. These came to be known as New Generation tech-savvy banks, and included
Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated
with Oriental Bank of Commerce, UTI Bank (since renamed Axis), ICICI Bank and HDFC
Bank. This move, along with the rapid growth in the economy of India, revitalized the banking
sector in India, which has seen rapid growth with strong contribution from all the three sectors of
banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the norms
for foreign direct investment, where all foreign investors in banks may be given voting rights
which could exceed the present cap of 10% at present. It has gone up to 74% with some
restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People demanded more from their banks and received more.

Current period

All banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are
Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-
operative Banks. Scheduled Commercial Banks in India are categorized into five different
groups according to their ownership and/or nature of operation. These bank groups are:

State Bank of India and its Associates

Nationalized Banks

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Private Sector Banks

Foreign Banks

Regional Rural Banks.

In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalized Banks.
Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled
Urban Cooperative Banks.

By 2010, banking in India was 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.

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.

In recent years critics have charged that the non-government owned banks are too aggressive in
their loan recovery efforts in connation with housing, vehicle and personal loans. There are press
reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

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Adoption of banking technology

The IT revolution has had a great impact on the Indian banking system. The use of computers
has led to the introduction of online banking in India. The use of computers in the banking sector
in India has increased many folds after the economic liberalization of 1991 as the country's
banking sector has been exposed to the world's market. Indian banks were finding it difficult to
compete with the international banks in terms of customer service, without the use of
information technology.

The RBI set up a number of committees to define and co-ordinate banking technology. These
have included:

In 1984 was formed the Committee on Mechanization in the Banking Industry (1984) whose
chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of India. The major
recommendations of this committee were introducing MICR technology in all the banks in the
metropolises in India. This provided for the use of standardized cheque forms and encoders.

In 1988, the RBI set up the Committee on Computerization in Banks (1988) headed by Dr. C
Rangarajan. It emphasized that settlement operation must be computerized in the clearing houses
of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that
there should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and
MICR should be made operational. It also focused on computerization of branches and
increasing connectivity among branches through computers. It also suggested modalities for
implementing on-line banking. The committee submitted its reports in 1989 and computerization
began from 1993 with the settlement between IBA and bank employees' associations.

In 1994, the Committee on Technology Issues relating to Payment systems, Cheque Clearing and
Securities Settlement in the Banking Industry (1994) was set up under Chairman W S Saraf. It
emphasized Electronic Funds Transfer (EFT) system, with the BANKNET communications
network as its carrier. It also said that MICR clearing should be set up in all branches of all those
banks with more than 100 branches.

In 1995, the Committee for proposing Legislation on Electronic Funds Transfer and other
Electronic Payments (1995) again emphasized EFT system.

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Total numbers of ATMs installed in India by various banks as on end June 2012 is 99,218. The
New Private Sector Banks in India are having the largest numbers of ATMs, which is followed
by off-site ATMs belonging to SBI and its subsidiaries and then by nationalized banks and
foreign banks. While on site is highest for the nationalized banks of India.

Table no. 1

Branches and ATMs of Scheduled Commercial Banks as on end March 2005

Bank type Number of On-site ATMs Off-site ATMs Total ATMs

branches

Nationalized 33,627 3,205 1,567 4,772

banks

State bank of 13,661 1,548 3,672 5,220

India

Old private 4,511 800 441 1,241

sector banks

New private 1,685 1,883 3,729 5,612

sector banks

Foreign banks 242 218 582 800

TOTAL 53,726 7,654 9,409 17,645

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Expansion of Banking Infrastructure

As per Census 2011, 58.7% households are availing banking services in the country. There are
102,343 branches of Scheduled Commercial Banks (SCBs) in the country, out of which 37,953
(37%) bank branches are in the rural areas and 27,219 (26%) in semi-urban areas, constituting
63% of the total numbers of branches in semi-urban and rural areas of the country. However, a
significant proportion of the households, especially in rural areas, are still outside the formal fold
of the banking system. To extend the reach of banking to those outside the formal banking
system, Government and Reserve Bank of India (RBI) are taking various initiatives from time to
time some of which are enumerated below:

Opening of Bank Branches: Government had issued detailed strategy and guidelines on Financial
Inclusion in October 2011, advising banks to open branches in all habitations of

5,000 or more population in under-banked districts and 10,000 or more population in other
districts. Out of 3,925 such identified villages/habitations, branches have been opened in 3,402
villages/habitations (including 2,121 Ultra Small Branches) by end of April, 2013.

Each household to have at least one bank account: Banks have been advised to ensure service
area bank in rural areas and banks assigned the responsibility in specific wards in urban area to
ensure that every household has at least one bank account.

Business Correspondent Model: With the objective of ensuring greater financial inclusion and
increasing the outreach of the banking sector, banks were permitted by RBI in 2006 to use the
services of intermediaries in providing financial and banking services through the use of
Business Facilitators (BFs) and Business Correspondents (BCs). Business correspondents are
retail agents engaged by banks for providing banking services at locations other than a bank
branch/ATM. BCs and the BC Agents (BCAs) represent the bank concerned and enable a bank
to expand its outreach and offer limited range of banking services at low cost, particularly where
setting up a brick and mortar branch is not viable. BCs as agents of the banks, thus, are an
integral part of the business strategy for achieving greater financial inclusion. Banks had been
permitted to engage individuals/entities as BC like retired bank employees, retired teachers,
retired government employees, ex-servicemen, individual owners of kirana/medical/fair price
shops, individual Public Call Office (PCO) operators, agents of Small Savings Schemes of

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Government of India, insurance companies, etc. Further, since September 2010, RBI had
permitted banks to engage "for profit" companies registered under the Indian Companies Act,
1956, excluding Non-Banking Financial Companies (NBFCs), as BCs in addition to
individuals/entities permitted earlier. According to the data maintained by RBI, as in December,
2012, there were over 152,000 BCs deployed by Banks. During 2012-13, over 183.8 million
transactions valued at 165 billion (US$2.8 billion) had been undertaken by BCs till December
2012.

Swabhimaan Campaign: Under "Swabhimaan" - the Financial Inclusion Campaign launched in

February 2011, banks had provided banking facilities by March, 2012 to over 74,000 habitations
having population in excess of 2000 using various models and technologies including branchless
banking through Business Correspondents Agents (BCAs). Further, in terms of Finance
Minister's Budget Speech 2012-13, the "Swabhimaan" campaign has been extended to
habitations with population of more than 1,000 in North and to habitations which have crossed
population of 1,600 as per census 2001. About 40,000 such habitations have been identified to be
covered under the extended "Swabhimaan" campaign.

Setting up of Ultra Small Branches (USBs): Considering the need for close supervision and
mentoring of the Business Correspondent Agents (BCAs) by the respective banks and to ensure
that a range of banking services are available to the residents of such villages, Ultra Small
Branches (USBs) are being set up in all villages covered through BCAs under Financial
Inclusion. A USB would comprise of a small area of 100 sq ft (9.3 m2) - 200 sq ft (19 m2) where
the officer designated by the bank would be available with a laptop on pre-determined days.
While the cash services would be offered by the BCAs, the bank officer would offer other
services, undertake field verification and follow up on the banking transactions. The periodicity
and duration of visits can be progressively enhanced depending upon business potential in the
area. A total of over 50,000 USBs have been set up in the country by March, 2013.

Banking Facilities in Unbanked Blocks: All the 129 unbanked blocks (91 in North East States
and 38 in other States) identified in the country in July 2009, had been provided with banking
facilities by March 2012, either through Brick Mortar Branch or Business Correspondents or
Mobile van. As a next step it has been advised to cover all those blocks with BCA and Ultra
Small Branch which have so far been covered by mobile van only.

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USSD Based Mobile Banking: National Payments Corporation of India (NPCI) worked upon a
"Common USSD Platform" for all banks and Telco’s who wish to offer the facility of Mobile
Banking using Unstructured Supplementary Service Data (USSD) based Mobile Banking. The
Department helped NPCI to get a common USSD Code *99# for all Telco’s. More than 20 banks
have joined the National Uniform USSD Platform (NUUP) of NPCI and the product has been
launched by NPCI with BSNL and MTNL. Other Telco’s are likely to join in the near future.
USSD based Mobile Banking offers basic Banking facilities like Money Transfer, Bill Payments,
Balance Enquiries, Merchant Payments etc. on a simple GSM based Mobile phone, without the
need to download application on a phone as required at present in the IMPS based Mobile
Banking.

Steps taken by Reserve Bank of India (RBI) to strengthen the Banking

Infrastructure

RBI has permitted domestic Scheduled Commercial Banks (excluding RRBs) to open branches
in tier 2 to tier 6 cities (with population up to 99,999 as per census 2001) without the need to take
permission from RBI in each case, subject to reporting.

RBI has also permitted SCBs (excluding RRBs) to open branches in rural, semi-urban and urban
centre in North Eastern States and Sikkim without having the need to take permission from RBI
in each case, subject to reporting.

Regional Rural Banks (RRBs) are also allowed to open branches in Tier 2 to Tier 6 centers (with
population up to 99,999 as per Census 2001) without the need to take permission from RBI in
each case, subject to reporting, provided they fulfill the following conditions, as per the latest
inspection report:

CRAR of at least 9%;

Net NPA less than 5%;

No default in CRR / SLR for the last year;

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Net profit in the last financial year;

CBS compliant.

Domestic SCBs have been advised that while preparing their Annual Branch Expansion Plan
(ABEP), they should allocate at least 25% of the total number of branches proposed to be opened
during the year in unbanked Tier 5 and Tier 6 canters i.e. (population up to 9,999) canters which
do not have a brick and mortar structure of any SCB for customer based banking transactions.

RRBs have also been advised to allocate at least 25% of the total number of branches proposed
to be opened during a year in unbanked rural (Tier 5 and Tier 6) Centers).

New private sector banks are required to ensure that at least 25% of their total branches are in
semi-urban and rural centers on an ongoing basis.

Types of Banks

Central bank

Development Bank

Investment Bank

Cooperative Credit Bank

Regional Rural Bank

Non Banking Financial Companies

Central Bank

The money market that acts as the central monetary authority of the country, serving as the
government bank as well as the bankers’ bank is known as a central bank of the country. The
main functions of central bank of a country are functions of note issue, bankers to government,
banker’s bank etc.The RBI as the central bank of the country is the centre of the Indian financial

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and monetary system. It has been guiding, monitoring, and regulating, controlling, and
promoting destiny of the IFS. It is quite young compared with such central banks as the Bank of
England, Risks bank of Sweden, and the Federal Reserve Board of the U.S.

Main Functions of The Reserve bank of India

As the central banking authority of India, the reserve Bank of India performs the following
traditional functions of the central bank:


It provides currency and operates the clearing system for the government and banks.

It formulates and implements monetary and credit policies.

It functions as the government’s and banker’s bank

It supervises the operations of credit institutions.

It regulates foreign exchange transactions.
 It In addition to the traditional functions of the central banking authority, the Reserve
bank of India performs several functions aimed at developing the Indian financial system:

It seeks to integrate the unorganized financial sector with the organized financial sector.

It encourages the extension of the commercial banking system in the rural areas.

It influences the allocation of credit.

It promotes the development of new institutions.

Development Banks

A development bank may be defined as a financial institution concerned with providing all types
of financial assistance to business units in the form of loans, underwriting, investment and
guarantee operations and promotional activities-economic development in general and industrial
development in particular. A development bank is basically a term lending institution. It is a
multipurpose financial institution with a broad development outlook. The concept of
development banks in a post independence phenomenon in India. With the end of Second World
War there was an urgent need for speed industrial development in India. The usual agencies that

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provided finance for large industries were inadequate. So the govt. of India came forward to set-
up a series of financial institution to provide funds to industries. The industrial finance
corporation of India, the first development bank was established in 1948. Subsequently many
other institutions were set-up. Ex. IDBI, IFCI, SIDBI etc.

Investment Banks

Financial intermediaries that acquire the savings of people and direct these funds into the
business enterprises seeking capital for the acquisition of plant and equipment and for holding
inventories are called ‘investment banks’.

Features:-Long term financing, Security, merchandiser, Security middlemen, Insurer,

Underwriter

Functions: - Capital formation, Underwriting, Purchase of securities, Selling of securities,

Advisory services, Acting as dealer.

Cooperative Banking Sector

These banks play a vital role in mobilizing savings and stimulating agricultural investment. Co-
operative credit institutions account for the second largest proportion of 44.6% of total
institutional credit of Rs.3854000 corer to agricultural and allied activities in the rural sector in
1998 to 1999.

Types of Co-operative Banking sector

The co-operative sector is very much useful for rural people. The co-operative banking sector is
divided into the following categories.

State co-operative Banks

Central co-operative banks

Primary Agriculture Credit Societies

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Non Banking Finance companies

According to RBI it means financial institutions which is a company and a non banking
institution and which has as its principal business the receiving of deposits under any schemes or
arrangement or in any other manner or lending in any manner.

Merchant Banks

Institution that render wide range of services such as the management of customer’s securities,
portfolio management, counseling, insurance, etc are called ‘Merchant Banks’.

Functions: - Sponsoring issues, Loan syndication, Servicing of issues, Portfolio, management,

arranging fixed deposits, helps in merger& acquisition.

Commercial Banks

Commercial banks comprising public sector banks, foreign banks, and private sector banks
represent the most important financial intermediary in the Indian financial system.

The changes in banking structure and control have resulted due to wider geographical spread and
deeper penetration of rural areas, higher mobilization of deposits, reallocation of bank credit to
priority activities, and lower operational autonomy for a bank management.

The largest commercial Banks in India, (SBI), was set up in 1955 when the Imperial Bank was
nationalized and merged with some banks of the princely states. In 1969, in one fell swoop, the
fourteen largest privately – owned commercial banks were nationalized. Subsequently, several
other privately – owned commercial banks were nationalized. As a result of these actions, public
sector commercial banks, dominate the commercial banking scene in the country.

Functions of commercial banks

Saving mobilization

Special loans

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Bills discount

Credit creation

Agencies function

General utility function

State Bank of India.

17 out of 20 nationalized banks except Andhra Bank , Bank of Maharashtra and Bharatiya
Mahila Bank.

Regional rural banks, Assam Grameen Vikas Bank, sponsored by United Bank of India

Regional rural Bank

They are oriented towards meeting the needs of the weaker section of the rural population
consisting of small and marginal farmers, agricultural laborer and small entrepreneurs. These
banks were set up after the nationalization of banks in 1969.

REGIONAL RURAL BANKS ACT, 1976 ACT NO. 21 OF 1976 [9th February, 1976.] An Act
to provide for the incorporation, regulation and winding up of Regional Rural Banks with a view
to developing the rural economy by providing, for the purpose of development of agriculture,
trade, commerce, industry and other productive activities in the rural areas, credit and other
facilities, particularly to the small and marginal farmers, agricultural laborers, artisans and small
entrepreneurs, and for matters connected therewith and incidental thereto.

Definition of Public Sector Bank

Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a
government. The shares of these banks are listed on stock exchanges. There are a total of 21
PSBs in India.

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Emergence of Public Sector Banks

The Central Government entered the banking business with the nationalization of the Imperial
Bank Of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank
was named as the State Bank of India. The seven other state banks became the subsidiaries of the
new bank when nationalized on 19 July 1960.[2] The next major nationalization of banks took
place in 1969 when the government of India, under Prime Minister Indira Gandhi, nationalized
an additional 14 major banks. The total deposits in the banks nationalized in 1969 amounted to
50 crores. This move increased the presence of nationalized banks in India, with 84% of the total
branches coming under government control. [3]

The next round of nationalization took place in April 1980. The government nationalized six
banks. The total deposits of these banks amounted to around 200 crores. This move led to a
further increase in the number of branches in the market, increasing to 91% of the total branch
network of the country. The objectives behind nationalization where:

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

To prevent the concentration of wealth and economic power,

To mobilize savings from masses from all parts of the country,

To cater to the needs of the priority sectors.....

List of PSU Banks in Gorakhpur District

Allahabad Bank

Bank of Baroda

Bank of India

Canara Bank

Central Bank of India

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Corporation Bank

Dena Bank

IDBI Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab & Sind Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

State Bank of India

List of Private sector Bank in Gorakhpur District

The private-sector banks in India represent part of the Indian banking sector that is made up of
both private and public sector banks. The "private-sector banks" are banks where greater parts of
stake or equity are held by the private shareholders and not by government.

Banking in India has been dominated by public sector banks since the 1969 when all major banks
were nationalized by the Indian government. However since liberalisation in government

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banking policy in 1990s, old and new private sector banks have re-emerged. They have grown
faster and bigger over the two decades since liberalization using the latest technology, providing
contemporary innovations and monetary tools and techniques

The private sector banks are split into two groups by financial regulators in India, old and new.
The old private sector banks existed prior to the nationalization in 1969 and kept their
independence because they were either too small or specialist to be included in nationalization.
The new private sector banks are those that have gained their banking license since the
liberalization in the 1990s.

List of Private Banks in Gorakhpur District

Axis Bank

Federal Bank

HDFC Bank

ICICI Bank

IndusInd Bank

Yes Bank

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Functions of Bank

Primary Functions:

The primary function of bank is the main functions of a bank.

1) Accepting deposits

Deposits are the amount of money that a customer hands over to the bank. This is known as
making a deposit. Most important function of a bank is to mobilize public funds. People who
have surplus income and saving find it convenient to deposits the amount with bank. Depending
upon the nature of deposits, funds deposited with bank also earn interest. Bank provides safe

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custody as well as interest to the depositors. Thus, deposits with the bank grow along with the
interest earned. If the rate of interest is higher, public are motivated to deposit more funds with
the bank.

 Saving deposit
This type of deposits encourage saving habit among the public. The rate of interest is
low. Saving deposit account meant for those people who wants to save for future needs
and uncertainties. There is no restriction on number and amount of withdrawals. The
depositors are given cheque facility to withdraw money from their account. Bank
provides cheque book, ATM cum debit card and internet banking facility. Depositors
need to maintain minimum balance which varies across different banks. This account is
suitable to salary and wage earners. This account can be opened in single name or in joint
names.

 Fixed deposit or Term deposit

Lump sum amount is deposited at one time for a specific period. In fixed deposit account,
money is deposited for a fixed tenure. Such deposits do not enjoy cheque-able facility.
Higher rate of interest is paid, which varies with the period of deposit. Banks issues a
deposit certificate which contains name, address, deposit amount, withdrawal date,
depositor signatures and other important information.
Depositor can’t withdrawal money during this period. Withdrawals are not allowed
before the expiry of the period. In case depositor wants to withdraw before maturity,
banks levy pre-mature withdrawal penalty. Those who have surplus funds go for fixed
deposit.

 Current account
Current accounts are generally opened by businesses. Withdrawals are freely allowed. No
interest is paid. In fact, there are service charges. Banks provide overdraft facility for
these accounts by which account holder can withdraw more money than available bank
balance. This acts as a short term loan to meet urgent needs. Bank charges high rate on

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 interest and charges for overdraft facility because bank need to maintain a reserve for
unknown demands for overdraft.

2) Granting Loans and Advances

The second important function of bank is granting loan and advances. The deposits received by
banks are not allowed to remain idle. So, after keeping certain cash reserves, the balance is given
to needy borrowers and interest is charged from them, which is the main source of income for
banks. The bank lends people money on a time-interest basis. Each loan amount is passed by the
bank after due consideration and securing the bank’s profit. The bank also gives advances to its
customers. The rate of interest charged on loans and advances varies according to the purpose
and period of loan. These are also the primary functions of the banks. The bank provides the
services of an overdraft, cash credits, loans and discounting of the bill of exchange.

i. Loans
A loan is granted for a specific time period. Generally commercial banks provide short-
term loans. But term loans, i.e. loans for more than a year may also be granted. The
borrower may be given the entire amount in lump-sum or in instalments. Loans are
generally granted against the security of certain assets. A loan is normally repaid in
instalments. However, it may also be paid in lump sum.

ii. Advances
An advance is a credit facility provided by the bank to its customers. It differs from loan
in the sense that loans may be granted for longer period, but advances are normally
granted for a short period of time. Further the purpose of granting advances is to meet the
day to day requirements of business. The rate of interest charged on advances varies from
bank to bank. Interest is charged only on the amount withdrawn and not on the sanctioned
amount.

 Cash credit

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 Cash credit refers to a loan given to the borrower against his current assets like shares,
stock, bonds etc.
It is a short term loan facility under which banks allows its customers to take loan up to a
certain limit, normally bank grants this loan against mortgage of certain property. It can
be given to current account holders as well as to others who do not have an account with
bank. Separate cash credit account is maintained.

 Bank overdraft
This type of advances is given to current account holders. No separate account is
maintained. All entries are made in the current account. Account holder can withdraw
money anytime up to the provided limit. He needs to pay interest only on borrowed
amount for the period for which he took loan.

 Discounting bills
The bank can advance money by discounting or by purchasing bills of exchange both
domestic and foreign bills.
In normal day to day business, sellers send bills to buyer whenever they sell their
products and it is mentioned in bill to make payment in stipulated time. Let’s take it 30
days. In such conditions seller may discount the bill from bank for some fees. In such
situation bill discounting acts as short term loan.

Secondary Functions

In addition to the primary functions of accepting deposits and lending money, banks perform a
number of other functions, which are called secondary functions, also called as non-banking
functions.

These important secondary functions of banks are explained below:

1) Agency functions

The bank acts as an agent of its customers. The bank performs a number of agency functions
which includes transfer of funds, collection of cheques, periodic payments, portfolio

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management, and periodic collections. All of these functions are the secondary functions of the
bank.

 Transfer of funds
The bank transfer funds from one branch to another or from one place to another.

 Collection of cheques
The bank collects the money of the cheques through clearing section of its customers.
The bank also collects money of the bills of exchange.

 Portfolio management
The banks also undertake to purchase and sell the shares and debentures on behalf of the
clients and accordingly debits or credits the account. This facility is called portfolio
management.

 Periodic payments
On standing instructions of the client, the bank makes periodic payments in respect of
electricity bills, rent etc.
 Periodic collection
The bank collects salary, pension, dividend and such other periodic collections on behalf
of the client.

 Other agency functions

They act as trustees, executors, advisers and administrators on behalf of its client. They
act as representatives of clients to deal with other banks and institutions.

2) Utility functions

The bank also performs several utility functions. Some of the most important utility functions of
the bank include the locker facility, underwriting of shares, dealing in foreign exchange etc.
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 Locker facility
The bank provides a locker facility for the safe custody of valuable documents, gold
ornaments and other valuables.

 Issue of draft and letter of credits

Banks issue drafts for transforming money from one place to another. It also issues letter
of credit, especially in case of, import trade. It also issues travellers cheques.

 Dealing in foreign exchange

The commercial banks are allowed by RBI to deal in foreign exchange.

 Social welfare programs

It undertakes social welfare programs, such as adult literacy programs, public welfare
campaigns.

 Underwriting of shares
The bank underwrites shares and debentures through its merchant banking division.
The bank underwrites share and debenture through its merchant banking division.

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CHAPTER-3

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 RESEARCH METHODOLOGY

Universe: Gorakhpur

Area: Following banks are selected for study purpose:

Private Sector Bank:

1) Axis Bank, AD Chowk, Bank Road, Gorakhpur, Uttar Pradesh, 273001

2) HDFC Bank, Bank Road, Gorakhpur, Uttar Pradesh, 273001

Public Sector Bank:

1) State Bank of India, Dharamshala Bazar, Gorakhpur, Uttar Pradesh, 273001

2) Allahabad Bank, Dharamshala Bazar, Gorakhpur, Uttar Pradesh, 273001

3) Bank of Baroda, Golghar, Gorakhpur, Uttar Pradesh, 273001

Sample size: 50 employees

Sampling technique: Simple random sampling, convenience sampling.

Research design: Descriptive research design

Data collection:

Primary source: Questionnaire

Secondary source: Internet

Tools: MS Word, MS Excel

Page | 72
RESEARCH METHODOLOGY:

A research methodology is a way to systematically solve the problem or attain its objectives. It is
a very important guideline and lead to completion of any project work through observation, data
collection and data analysis.

According to Clifford woody, “Research methodology comprises of defining and redefining

problems, collecting, organizing and evaluating data, making deductions and researching
to conclusions.”

RESEARCH DESIGN:

A framework blueprint for conducting the research. It specifies the details of the procedures
necessary for obtaining the information needed to structure and solve research problems.

Research methodology, which is followed by researcher, is Descriptive study.

Typically, a research design involves the following components, or tasks:

 Define the information needed.

 Design the research.
 Specify the measurement and selling procedures.
 Construct and present a questionnaire or an appropriate form for data collection.
 Specify the sampling process and sampling size.
 Develop a plan of data analysis.

SAMPLE SIZE:

Sample size refers to the number of participants included in a study.

50 employees are selected for conducting research.

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 DATA COLLECTION

To determine the appropriate data for research mainly two kinds of data was collected namely
primary and secondary data as explained below:

 PRIMARY DATA:
Primary data are those, which were collected afresh and for the first time and thus happen to be
original in character.
The primary data has been collected through the Questionnaire. The Questionnaire has been
properly prepared in order to cover all the Information required for the study. The primary data
has been obtained by interaction with the officials and staff in the division in the organization
and also obtained through the Questionnaire distributed to the persons in different departments in
that particular division.

 SECONDARY DATA:
The secondary data has been collected through by the Manuals and also from old records
available in the organization. Some other data also collected from the websites earlier researches
and published books.

SAMPLING PROCEDURE:

Here the researcher follows the simple random sampling for conducting survey and in detail
sampling procedure is convenience sampling. This procedure is adopted based on the
convenience of the researcher time and money constraints.

SAMPLING UNIT:

Respondents have been selected from different wings of the organization.

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UNIVERSE:

Gorakhpur District.

RESEARCH INSTRUMENT:

The research instrument that is used in this study is structured questionnaire. A questionnaire
consists of a set of questions presented to the respondents for their answers. The researcher has
used questionnaire as the instrument of research, to collect the information. A questionnaire
consists of open ended, closed ended and likert 5 scale model questions to the respondents.

PERCENTAGE ANALYSIS:

In the research various percentage are identified the analysis and they are presented pictorially by
pie charts.

Percentage of respondents = Number of Respondents/ Total number of respondents×100

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 DATA ANALYSIS AND INTERPRETATION

1. Do you enjoy your work?

Responses Percentage No. of respondent

Highly satisfied 22% 11

Satisfied 36% 18

Neutral 16% 8

Dissatisfied 16% 8

Highly dissatisfied 10% 5

Total 100% 50

10% 22%
16% Highly Satisfied
Satisfied

16% Neutral
36% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents 11 were highly satisfied or enjoy their work, 18 were
satisfied as they find their work very interesting whereas 8 were neutral regarding their response,
8 were dissatisfied whereas 5 were highly dissatisfied because according to them their work is of
clerical nature and also work load in the banks are too much. However Majority of respondents
were satisfied with the nature of work assigned to them.

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2. How clear are the employees regarding goals of their department and the organization?

Responses Percentage No. of respondent

Highly satisfied 16% 8

Satisfied 40% 20

Neutral 14% 7

Dissatisfied 20% 10

Highly dissatisfied 10% 5

Total 100% 50

10% 16%

20% Highly Satisfied

Satisfied
Neutral
14% 40% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents 8 were highly satisfied, 20 were satisfied that they are
clear about the goal of their department and the organization as they are old employees. 7 gave
no response, 10 were dissatisfied and 5 were highly dissatisfied as they are not very clear with
their goal. Further investigation revealed that most of them who were unclear with their goals
were new comers to their concerned department.
Page | 77
3. Do you find your superiors as being helping and supportive?

Responses Percentage No. of respondent

Highly satisfied 16% 8

Satisfied 36% 18

Neutral 20% 10

Dissatisfied 20% 10

Highly dissatisfied 8% 4

Total 100% 50

8% 16%
20% Highly Satisfied
Satisfied
Neutral
36%
20% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents 8 were highly satisfied with the supportiveness of their
superior, 18 were satisfied, 10 were neutral regarding their response, 10 were dissatisfied
whereas 4 were highly dissatisfied. Majority of respondents were satisfied with superior
supportiveness they felt that their superiors are ready to clear the doubts and help them in
improving their performance. They also took personal interest in the employee’s growth.
However opinion varies from department to department.

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4. Does the management involve you in the decision making?

Responses Percentage No. of respondent

Highly satisfied 14% 7

Satisfied 32% 16

Neutral 30% 15

Dissatisfied 16% 8

Highly dissatisfied 8% 4

Total 100% 50

8% 14%
16%
Highly Satisfied
Satisfied
32%
Neutral

30% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents 7 were highly satisfied, 16 were satisfied as per them
management involved them in the decision making which are related to their department. 15
were neutral regarding their response, 8 were dissatisfied whereas 4 were highly dissatisfied.
Some employees said that management does not involve them in decision making because the
chance of security risk increases.

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5. Do you agree that organization is very open to ideas and suggestion given by employees?

Responses Percentage No. of respondent

Highly satisfied 14% 7

Satisfied 30% 15

Neutral 32% 16

Dissatisfied 16% 8

Highly dissatisfied 8% 4

Total 100% 50

8% 14%
16%
Highly Satisfied
Satisfied
30%
Neutral
32% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents 7 were highly satisfied, 15 were satisfied, 16 were neutral
regarding their response, 8 were dissatisfied whereas 4 were highly dissatisfied. Most of the
employees agree that their organization is very open to ideas and suggestions given by the
employees. They believe that company approaches very friendly to the employee’s suggestions
and their ideas and actually implement it in the organization, if it is concrete in nature. Whereas
some employees are not satisfied with this as they are new employees of the organization hence
their suggestions are not taken seriously by the organization.

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6. Are you satisfied with the teamwork present between the employees’s?

Responses Percentage No. of respondent

Highly satisfied 12% 6

Satisfied 40% 20

Neutral 20% 10

Dissatisfied 16% 8

Highly dissatisfied 12% 6

Total 100% 50

12% 12%

16% Highly Satisfied

Satisfied

40% Neutral
20% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents, 6 were highly satisfied, 20 were satisfied with the team
work presents between the employees. 10 were neutral, 8 were dissatisfied and 6 were highly
dissatisfied. Majority of respondents are satisfied because they feel that the team work in their
respective department is excellent. Again these are from the department where team work was
rewarded. In department where teamwork was not rewarded, teamwork and cooperation was not
very apparent.

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7. Are you satisfied with the communication between the peers and superiors?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 34% 17

Neutral 20% 10

Dissatisfied 14% 7

Highly dissatisfied 12% 6

Total 100% 50

12% 20%
14%
Highly Satisfied
Satisfied
Neutral
20% 34% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents, 10 were highly satisfied, 17 were satisfied that the
communication between the peers and superior are good. As they are old employees and they are
comfortable in communicating with their peers and superiors. Whereas 10 were neutral, 7 were
dissatisfied and 6 were highly dissatisfied with the communication between the peers and
superior because they are new employees and they feel a little uncomfortable in communicating
with their superiors.

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8. Are you satisfied with the leadership of your superior?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 36% 18

Neutral 16% 8

Dissatisfied 16% 8

Highly dissatisfied 12% 6

Total 100% 50

12% 20%
16% Highly Satisfied
Satisfied
Neutral
16% 36% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents, 10 were highly satisfied, 18 were satisfied, 8 were

neutral to the response, whereas 8 were dissatisfied and 6 were highly dissatisfied. Most of the
employees are satisfied with leadership of their superior. They were happy with their superior’s
leadership. They felt that their bosses took personal interest in the employee’s growth. Whereas
some of the employee’s were not very much satisfied with their superior’s leadership. Since the
opinion is precisely divided into two halves, this issue clearly has got to do with the kind of
superiors present in each department.

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9. Do you find your job role interesting and challenging?

Responses Percentage No. of respondent

Highly satisfied 14% 7

Satisfied 24% 12

Neutral 28% 14

Dissatisfied 30% 15

Highly dissatisfied 4% 2

Total 100% 50

4% 14%

30%
Highly Satisfied
24% Satisfied
Neutral
Dissatisfied
28% Highly Dissatisfied

Interpretation: Out of 50 respondents, 7 were highly satisfied, 12 were satisfied. Whereas 14

were neutral to the respond, 15 were dissatisfied and 2 were highly dissatisfied. Mostly higher
level employees think that their work is quite challenging where most of the decision making
process is involved or employees of cash or account department work is also challenging
whereas employees who are in front desk or enquiry department do not feel their role much
challenging.

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10. Are you satisfied with the work environment?

Responses Percentage No. of respondent

Highly satisfied 18% 9

Satisfied 40% 20

Neutral 20% 10

Dissatisfied 10% 5

Highly dissatisfied 6% 3

Total 100% 50

6% 18%
10%
Highly Satisfied

20% Satisfied
Neutral
40% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents, 9 were highly satisfied, 20 were satisfied, 10 were

neutral whereas 5 were dissatisfied and 3 were highly dissatisfied. Majority of the respondents
are satisfied with the physical environment, in terms of commercial buildings and office
decoration, they were also satisfied with the technical aspect of their workplace, including IT
equipment and level of technical support, they also have access to all necessary information and
perform their work in line with the internal rules and policies of the bank. However some of
employees are not satisfied with work environment as they perceived that there is no proper
refreshment facility.

Page | 85
11. Are you satisfied with the salary and bonus being offered to you?

Responses Percentage No. of respondent

Highly satisfied 24% 12

Satisfied 44% 22

Neutral 20% 10

Dissatisfied 8% 4

Highly dissatisfied 4% 2

Total 100% 50

8% 4%
24%

20% Highly Satisfied

Satisfied
Neutral
Dissatisfied
44% Highly Dissatisfied

Interpretation: Out of the 50 respondents, 12 were highly satisfied, 22 were satisfied, 10 does
not give any response whereas 4 were dissatisfied and 2 were highly dissatisfied. Most of the
employees think that they are satisfied with their salaries because their salaries are matched with
their position and work load. Though some of them are not satisfied with their salaries and
bonuses because they are expecting more bonuses as they feel they contribute more.

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12. Are you satisfied with the performance appraisal system of your organization?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 36% 18

Neutral 16% 8

Dissatisfied 16% 8

Highly dissatisfied 12% 6

Total 100% 50

12% 20%

16% Highly Satisfied

Satisfied
Neutral
16%
36% Dissatisfied
Highly Dissatisfied

Interpretation: Most of the employees believe that the system of performance appraisal is fair,
they perceive that they are evaluated on a fairly basis implying without any bias and partiality.
However some employees are of the opinion that performance evaluation being done in their
organization is not fair and should improve upon.

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13. Are you satisfied with the promotion policy of your company?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 40% 20

Neutral 20% 10

Dissatisfied 12% 6

Highly dissatisfied 8% 4

Total 100% 50

8%
20%
12%
Highly Satisfied
Satisfied
20%
Neutral

40% Dissatisfied
Highly Dissatisfied

Interpretation: Out of 50 respondents 10 were highly satisfied with the promotion policy 20
were satisfied because they perceive that promotion decisions are made in a fair and just manner.
10 gave neutral response, 6 were dissatisfied whereas 4 were highly dissatisfied because they felt
that promotion have been long overdue and they have been also denied promotion many a time.

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14. Are you satisfied with the training and development programs of your organization?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 34% 17

Neutral 16% 8

Dissatisfied 20% 10

Highly dissatisfied 10% 5

Total 100% 50

10%
20%

20% Highly Satisfied

Satisfied
Neutral
16% 34% Dissatisfied
Highly Dissatisfied

Interpretation: Most of the employees are satisfied with the training provided to them as they
are able to perform their work effectively. However some of them complain that the training and
development programs which are provided are not enough for them.

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15. Are you satisfied with the leaves provided to you?

Responses Percentage No. of respondent

Highly satisfied 22% 11

Satisfied 34% 17

Neutral 28% 14

Dissatisfied 10% 5

Highly dissatisfied 6% 3

Total 100% 50

6%
10% 22%

Highly Satisfied
Satisfied
28%
Neutral
34% Dissatisfied
Highly Dissatisfied

Interpretation: Most of the employees are satisfied with the leaves policy of the organization.
However their some employees who are not satisfied with the leave policy of the organization as
per them it is not sufficient and it should be extended.

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16. The environment in the organization supports a balance between work and personal
life?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 36% 18

Neutral 16% 8

Dissatisfied 16% 8

Highly dissatisfied 12% 6

Total 100% 50

12% 20%

16% Highly Satisfied

Satisfied
Neutral
16%
36% Dissatisfied
Highly Dissatisfied

Interpretation: Most of the employees agreed that they are able to handle their work life with
the personal life as they are satisfied with their work timing. Those who denied to accept the
statement 8 were dissatisfied and 6 were highly dissatisfied in which majority compromising of
female employees working in this industry.

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17. Are you satisfied with the flexibility with respect to your family requirement?

Responses Percentage No. of respondent

Yes 100% 50

No 0% 0

Total 100% 50

0%

Yes
No

100%

Interpretation: All the employees are satisfied with the flexibility with respect to their family
responsibilities. The main reason is that superior as well as employees are very cooperative to
each other. Employees can take leave or can leave the office earlier in any family emergency.
There is no issue regarding this matter. As a result 100% employees are satisfied with respect to
their family requirement.

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18. Do you agree that your organization effectively handle employee’s grievances?

Responses Percentage No. of respondent

Highly satisfied 12% 6

Satisfied 40% 20

Neutral 20% 10

Dissatisfied 16% 8

Highly dissatisfied 12% 6

Total 100% 50

12% 12%

16% Highly Satisfied

Satisfied

40% Neutral
20% Dissatisfied
Highly Dissatisfied

Interpretation: In public sector bank, a well established and an ongoing consultative machinery
is functioning, while in private sector banks, there is no any fix criteria for it, this depends on
internal matters and relationship with superior and supervisor.

Page | 93
19. Does your organization provide job security?

Responses Percentage No. of Respondent

Highly Satisfied 20% 10
Satisfied 28% 14
Neutral 24% 12
Dissatisfied 16% 8
Highly Dissatisfied 12% 6
Total 100% 50

18% 12%

Highly Satisfied
26%
Satisfied
24%
Neutral
Dissatisfied
20% Highly Dissatisfied

Interpretation: Out of 50 respondents, 10 employees are highly satisfied, 14 employees are

satisfied as they belong to public sector bank where job security is high. Whereas, those
employees who are dissatisfied belongs to private sector where job security depends on
performance.

Page | 94
20. In totality are you satisfied with your job?

Responses Percentage No. of respondent

Highly satisfied 20% 10

Satisfied 40% 20

Neutral 10% 5

Dissatisfied 20% 10

Highly dissatisfied 10% 5

Total 100% 50

10%
20%

20% Highly Satisfied

Satisfied
Neutral
10%
Dissatisfied
40%
Highly Dissatisfied

Interpretation: Out of 50 respondents 11 were highly satisfied by the nature of job, 17 were
satisfied, 14 were neutral regarding their response, and 14 were dissatisfied whereas 10 were
highly dissatisfied.

Page | 95
CHAPTER-4

Page | 96
 FINDINGS

1. 36% of the respondents are satisfied that they enjoy their work.

2. 40% of the respondents are satisfied regarding goal of the organization.

3. 36% of the respondents are satisfied regarding supportiveness of their superiors whereas 20%
were dissatisfied.

4. 32% employees agree that management involve them in decision making. whereas 30% gave
neutral response regarding this.

5. 30% employees are satisfied that organization is very open to ideas and suggestion given by
employees. Whereas some employees said that organization take their suggestion occasionally.

6. 40% of the respondents were satisfied with the teamwork present between the employees.

7. 34%employees are satisfied with the communication between peer and superiors.

8. 36% of the respondents are satisfied with the leadership of their superiors. 16% gave neutral
response.

9. 24% of the respondents are satisfied that their job role is interesting and challenging.

10. 40% employees are satisfied with the work environment.

11. 44% are satisfied with the salary and bonus being offered to them. 20% gave neutral response.

12. 36% employees are satisfied with the performance appraisal system of the organization.

13. 40% employees are satisfied with the promotion policy of the organization.

14. 34% employees are satisfied with the training and development program of the organization.

15. 34% employees are satisfied with the leave policy of the organization.

16. 36% of the respondents are satisfied that environment in the organization support a balance
between and personal life.

17. All the employees are satisfied with the flexibility with respect to their family requirement.

18. 40% employees satisfied with grievance handling procedure.

19. 28% employees are satisfied with job security.

20. Majority of the employees are satisfied with their job.

Page | 97
 SUGGESTIONS

 Proper action should be taken by organization to reduce the work load of employees.
 Superior should support the employees. They should share a good relation with employees
 Management should involve the employees in Decision making.
 To motivates the employees mostly suggestion should be taken from them.
 Strong emphasis should be laid on team work. Team work should be rewarded to further
motivate employees.
 Communication (free and frank exchange between employees and employers) may be given
more importance.
 Salary and bonus should be appropriate.
 Performance appraisal should be done in fair and just manner.
 The rigid policy of promotion must be done away with. Instead, deserving employees must be
promoted. Promotion decisions should be made in fair and just manner. This will lead to better
job satisfaction.
 External training /seminar related to technical development should be introduced in organisation
to increase effectiveness of training programme.
 Proper leave policy should be followed.
 Organization should provide such work environment that is conductive to their overall
development.
 Employee’s grievance should be redressed properly.
 The organization should provide Job security to its employees to a great extent.

Page | 98
 CONCLUSION

According to the study conducted we can conclude that the overall job satisfaction level of
employees at banking sector is moderate. The research is conducted using primary data and
secondary data.

Most of the employees are satisfied with the communication network and relationship between
all the members of the organization.

Majority of the employees are satisfied with their job because of the organization provide the
adequate facilities like training and development, leave facilities etc.

However there are some employees who are dissatisfied with the grievance handling procedure,
performance appraisal system, participation in decision making etc.

The success or failure of any organization depends on its employees. They are one of pillar of the
organization. Hence, organization should try to satisfy the employees to the maximum extent.

Page | 99
 LIMITATIONS OF THE STUDY

 All the factors affecting job satisfaction is not taken into consideration.
 Sample size was limited.
 Because of a small period of time only small sample had to be considered which doesn’t
actually reflect an accurate and intact picture.
 Some of the respondents were not co-operative. They have not given any answer to the
questions which may affect the analysis.
 Due to lockdown the research exercise was conducted within a limited duration. So a
detailed study could not be made.
 The study is sensitive in nature and there might be a colour of bias in answering the
questionnaire.

Page | 100
 BIBLIOGRAPHY

 Armstrong, M. (2006). A Handbook of Human resource Management Practice, Tenth Edition,

Kogan Page Publishing, London,, p. 264
 Christen, M., Iyer, G. and Soberman, D. (2006). Job Satisfaction, Job Performance, and Effort: A
Reexamination Using Agency Theory, Journal of Marketing, January, Vol. 70, pp. 137-150
 Herzberg, H. F. (1976). Motivation-Hygiene Profiles, p. 20
 Mullins, J.L. (2005). Management and organizational behaviour, Seventh Edition, Pearson
Education Limited, Essex, p. 700
 Lawson K. Savery, (1989), Job Satisfaction and Nurses. Journal of Managerial Psychology, 4 (5)
, 11 – 16

Books

 Mamoria C.B., “Personnel Management”21st revised and enlarged edition 2001.

 Kothari C.R. “Research Methodology”

 Flippo B Edwin, Personnel Management”

 Aswathappa K. , “ Human resource Management”

Internet Website

 hdfcbank.com

 Google.co.in

 Managementstudy.com

 citehr.com

Page | 101
 QUESTIONNAIRE

1. Do you enjoy your work?

A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

2. How clear are the employees regarding goals of their department and the organization?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

3. Do you find your superiors as being helping and supportive?

A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

4. Does the management involve you in the decision making?

A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

Page | 102
5. Do you agree the organization is very open to ideas and suggestion given by employees?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

6. Are you satisfied with the teamwork present between the employees?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

7. Are you satisfied with the communication between the peers and superiors?
A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

8. Are you satisfied with the leadership of your superior?

A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

Page | 103
9. Do you find your job role interesting and challenging?
A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

10. Are you satisfied with the work environment?

A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

11. Are you satisfied with the salary and bonus being offered to you?
A) Highly Satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

12. Are you satisfied with the performance appraisal system of your organization?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

Page | 104
13. Are you satisfied with the promotion policy of your organization?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly Dissatisfied

14. Are you satisfied with the training and development program of your organization?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly dissatisfied

15. Are you satisfied with the leaves provided to you?

A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly dissatisfied

16. The environment in the organization supports a balance between work and personal life?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly dissatisfied

17. Are you satisfied with the flexibility with respect to your family requirement?
A) Yes
B) No

Page | 105
18. Do you agree that your organization effectively handle employee’s grievances?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly dissatisfied

19. Are you satisfied with the job security of your organization?
A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly dissatisfied

20. In totality are you satisfied with your job?

A) Highly satisfied
B) Satisfied
C) Neutral
D) Dissatisfied
E) Highly dissatisfied

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