STUDY THE SATISFACTION & BANKS VS.
PREFERANCE BANKS IN
OF CUSTOMERS TOWARDS PUBLIC SECTOR LUDHIANA
SUBMITTED TO:-Mr. Gautam Bansal
Prepared By: - Amit Kumar Roll No. 1101106 MBA 1 B
Punjab College of Technical Education Ludhiana
Research work consist the backbone of any management education program. A management graduate (Pursuing) has to do the research work quite frequently during the entire life span. The idea of this research has been conceived as a research methodology in 2nd semester of full time programmed at Punjab College of Technical Education, Ludhiana.
This Research “satisfaction &preference of customers toward public banks vis-à-vis pivate sector bank in Ludhiana has been done to know public opinion regarding satisfaction level of consumer to know the experience of consumer with the present public bank and private banks.
Required information has taken with utmost sincerity & honesty. I will be extremely satisfied if the effort is appreciated.
Table and contains
Contain Introduction List of Tables & Figures Title and objectives Research and Methodology Limitation of the study Analysis and interpretation Conclusion Bibliography Page No. 4 - 21 28 -37 22 23 - 25 26 27 - 38 39 40
Introduction of banks
(1) A bank is a business which provides financial services, usually for profit. A commercial bank accepts deposits from customers and in turn makes loans based on those deposits. Traditional banking services include receiving deposits of money, lending money and processing transactions. Some banks (called
Historically. and collected those funds back with interest when the goods were sold. This difference is referred to as the spread between the cost of funds and the loan interest rate. the primary purpose of a bank was to provide liquidity to trading companies. A commercial bank is usually defined as an institution that both accepts deposits and makes loans. primarily loan fees but also including service charges on array of deposit
. with banks carefully analysing the financial condition of its business clients to determine the level of risk in each loan transaction. and what level of interest it charges in its lending activities. Banks advanced funds to allow businesses to purchase inventory. there are also financial institutions that provide selected banking services without meeting the legal definition of a bank (see banking institutions). investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees. A bank generates a profit from the differential between what level of interest it pays for deposits and other sources of funds. profitability from lending activities has been cyclic and dependent on the needs and strengths of loan customers. Commercial lending today is a very intense activity. Banks have a long history. not consumers. Operational authority is granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. In history. investment products or stock broking. In recent history. Many banks offer ancillary financial services to make additional profit. for example: selling insurance products. the banking industry only dealt with businesses. For centuries. Currently in most jurisdictions commercial banks are regulated and require permission to operate.Banks of issue) issue banknotes as legal tender. and have influenced economies and politics for centuries. Banking services have expanded to include services directed at individuals and risk in these much smaller transactions is pooled.
the market expanded with the establishment of banks such as Punjab National Bank.). A second nationalization of 6 more commercial banks followed in 1980. investments. mainly due to the trade of the British Empire. The first fully Indian owned bank was the Allahabad Bank.activities and ancillary services (international banking. However. (1)A Banking in India originated in the first decade of 18th century with
The General Bank of India coming into existence in 1786. foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. in Mumbai both of which were founded under private ownership.
The next significant milestone in Indian Banking occurred on July 19. This was followed by Bank of Hindustan. Calcutta was the most active trading port. which was established in 1865. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. the Reserve Bank was nationalized and given broader powers. By the 1900s. wire transfers. insurance.
. in 1906. A couple of decades later. 1969 when the then Indira Gandhi government nationalized the 14 largest commercial banks. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. lending activities still provide the bulk of a commercial bank's income. etc. After India's independence in 1947. and due to which banking activity took roots there and prospered. Both these banks are now defunct. At that point of time. in 1895 in Lahore and Bank of India. foreign exchange.
The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment. private banks and foreign banks. the nationalised banks grew at a leisurely pace of around 4%. which included banks such as UTI Bank (the first of such new generation banks to be set up).
. where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%.The stated reason for the nationalisation was to give the government more control of credit delivery. kickstarted the banking sector in India. After this. ICICI Bank and HDFC Bank. This move.at present it has gone up to 49% with some restrictions.
In the early 1990s the then Narasimha Rao government embarked on a policy of liberalisation and gave licences to a small number of private banks. until the 1990s. government banks. along with the rapid growth in the economy of India. which came to be known as New Generation tech-savvy banks. namely. which has seen rapid growth with strong contribution from all the three sectors of banks. closer to the average growth rate of the Indian economy.
SBI and its associate banks are: • • • • • • • • State Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore
. with its seven associate banks commands the largest banking resources in India.Current scenario
(4) Public Sector Banks
(4) A SBI group: State Bank of India.
currently there are 19 nationalised banks in India: • • • • • • • • • • • • • • • • • • • Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank
City Union Bank
Centurion Bank of Punjab
.After the amalgamation of New Bank of India with Punjab National Bank.
Kotak Mahindra Bank Lakshmi Vilas Bank Lord Krishna Bank And other private Banks.• • • • • • • • • • • • •
Dhanalakshmi Bank Federal Bank Ganesh Bank of Kurundwad HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Ltd.
international and NRI products and services. the largest bank in the world.Brief history of banks on which research has done
(5) State Bank of India
State Bank of India (SBI) is the largest bank in India. measured
by the number of branch offices and employees. Established in 1806 as Bank of Bengal. through its vast network
. it remains the oldest commercial bank in the Indian Subcontinent and also the most successful one providing various domestic. It is also.
Currently the bank has 44 regional and totally 1.5 Billionand head quarter is in New
(5)C Allahabad Bank is the oldest public sector bank in India.934 branches.in India and overseasIts revenue is aroun $17 Bilion doller and its headquarte is in Mumbai
Punjab National Bank
(5)B Punjab National Bank (PNB). is the second largest public sector commercial bank in India with about 4500 branches and offices throughout the country. having begun operations in 1865. along with 13 other major commercial banks of India. on July 19. along with 13 other commercial banks. 1969. Its head-quarters are now in Kolkata. 1969 the Government of India nationalized the bank.On 19th July. The Government of India nationalized the bank. established in 1895 in Lahore by Lala Lajpat Rai.
.Its revenue is around Delhi. $2.
Of its almost
900 branches and offices spread throughout India. though the bank's corporate headquarters is in New Delhi.Punjab & Sind Bank
(5)D Punjab & Sind Bank is a major bank in Northern India. the former continues to be the major shareholder (current shareholding: 58. Although Government shareholding in the Bank came down below 100% following IDBI’s public issue in July 1995. In February 1976. the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing.
(5)E The Industrial Development Bank of India (IDBI) was established on July 1.47%). promoting and developing industry in the country. In 1980 Punjab & Sind Bank was among six banks that the Government of India nationalized in the second wave of nationalizations. In 1991 Bank of Baroda acquired Punjab & Sind Bank's London branch.
. almost 400 are in Punjab state. At some point in the 1960s Punjab & Sind Bank established a branch in London. 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India.
ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara. ICICI borrowed funds from many multilateral agencies (such as the World Bank).it could not take retail deposits.(5)F
ICICI Bank (formerly Industrial Credit and Investment Corporation
of India) is India's largest private sector bank and second largest overall. and about 2400 ATMs. the Stock Exchange. car loans etc. All this changed in 1990s. Mumbai and the National Stock Exchange of India Limited and its ADRs are listed on the New York Stock Exchange (NYSE). venture capital and asset management.
. credit cards. life and non-life insurance.ICICI Bank which undertook normal banking operations . ICICI was established by the Government of India in the 1960s as a Financial Institution (FI. During the year 2005 ICICI bank was involved as a defendant in cases of alleged criminal practices in its debt collection operations and alleged fraudulent tactics to sell its products. ICICI was not a bank . The experiment was so successful that ICICI merged into ICICI Bank ("reverse merger") in 2002. other such institutions were IDBI and SIDBI) with the objective to finance large industrial projects. ICICI founded a separate legal entity .taking deposits. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. ICICI Bank has total assets of about USD 56 Billion (end-Mar 2006). and nor was it required to comply with Indian banking requirements for liquid reserves. a network of over 619 branches and offices. often at concessional rates. These funds were deployed in large corporate loans.
was set up in August 1994 after the Reserve Bank of India allowed setting up of Banks in the private sector.HDFC Bank
(5)G HDFC Bank is one amongst the firsts of the new generation. a premier housing finance company (set up in 1977) of India. partnerships. governnments.
(5)H UTI Bank was the first of the new private banks to have begun
operations in 1994. mutual funds and insurance companies. HDFC Bank has 583 branches located in 263 cities of India. and all branches of the bank are linked on an online real-time basis. The Bank was promoted jointly by the Administrator of the
. Net Profit for the year ended March 31. financial institutions. corporates. The Bank was promoted by the Housing Development Finance Corporation Limited. 2006 was up 30.8% to Rs 870. trusts. In the next few months the number of branches and ATMs should go up substantially. The bank offers many innovative products & services to individuals. The bank also has over 1471 ATMs. after the Government of India allowed new private banks to be established. tech-savvy commercial banks of India.8 crores Currently (2007).
. UTI Bank had 510 branches and extension counters and 2229 ATMs covering 262 centres of India.
(6) Product and services of the Banks
(6)A Current Accounts:-
. real-time and on-line access for all types of transactions in a cost-effective manner. It was the first bank in India to adopt Finacle as a core banking software.19 crores with the public holding (other than promoters) at 56. The bank opened its first overseas branch in Singapore in April 2006. Net Profit for the year was up 44.P J Nayak is its Chairman and Managing Director. UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. 2872.. As on the year ended March 31. The bank continuously leverages information technology to provide value-added products and services as well as multiple-delivery channels to customers allowing them easy. The New India Assurance Company. National Insurance Company Ltd. The Oriental Insurance Corporation and United Insurance Company Ltd. is the third largest in India. The ATM network as of now (2006).At the end of February 2007. General Insurance Corporation Ltd.08 crores.65%. Life Insurance Corporation of India (LIC). All branches of the bank are linked via a core banking solution on a realtime basis.Specified Undertaking of the Unit Trust of India (UTI-I).. 2006 the Bank had a networth of Rs.98% to Rs 485.
Statement of account by e-mail.
.Put money in to a bank and Withdraw .take money out. Phone Banking. Personalised payable at par cheque book. Demand Drafts / Pay orders.the no minimum balance current account from DCB that saves you the hassle of maintaining the average quarterly balance. International Debit Card. Simply pay a small annual fee and enjoy a host of free* benefits and services such as Auto sweep out / in facility. Any Branch Banking.
Types of Current Accounts
(a) M Power Current Account
Introducing M Power Current Account . A current account is an account for day-to-day use. Utility Bill Payments and a host of other services. Maintaining your current account has never been so easier and rewarding. Internet Banking. M Power current account brings you a world of banking privileges to provide you ease of transactions and helps you manage your money more effectively. Mobile Banking. It works like a current account except each person has a cheque-book and card. Unlimited transactions. There are various ways to deposit money Depositing cash in coins and notes at a branch wiring from abroad Sending a cheque in the post Paying money in electronically.This is an account where we can Deposit . Electronic Funds Transfer. You earn interest in your account through our auto sweep facility. Two or more people can set up a current account together and call it a joint account.
50 crores per month. FREE Cash Pick Up* upto 2 lacs per day. FREE Electronic Funds Transfer up to 5 crores per month and lots of other benefits. FREE International Debit Card.(b)Classic Current Account
Maintain an average quarterly balance of just Rs. FREE Demand Drafts/Any Branch Banking Facility upto 1. just issue a payable at par cheque that comes to you FREE of charge and save on Demand Draft charges.
(c) Premium Current Account
With our Premium Current account forget the hassles of making Demand Drafts for outstation Payments. FREE Cash Pick Up* upto 3 lacs per day.
(d) Excel Current Account
With Excel Current enjoy a host of facilities absolutely FREE of charge. Any Branch Banking that enables you to access your bank account from any of our branches across the country. Electronic Funds Transfer.and enjoy a host of facilities and benefits offered by us like International Debit Card. Payable At Par chequebook. FREE outstation cheque collection*. Pay Orders. FREE Electronic Funds Transfer upto 10 crores per month.
. FREE Payorders /Demand Drafts /Any Branch Banking facility upto 75 lacs per month. 5000/. Avail of FREE International Debit Card.
You have to approach the DPs (remember. Let's say your portfolio of
. Pay Orders. An ATM card may also be used to make a debit purchase if the merchant has a PIN pad to accept the key entry. you need to open a demat account if you want to buy or sell stocks. to open your demat account.(e)Privilege Current Account
With Current Privilege enjoy a host of facilities absolutely FREE.
The plastic card used in an ATM for deposits. make cheque payments etc. FREE demand drafts/Any Branch Banking Facility upto 5 crores per month. cash withdrawals. FREE international debit card. FREE Cash Pick Up* upto 10 lacs per day and many other freebies. Payable At Par cheque book. Just as you have to open an account with a bank if you want to save your money.
Demat refers to a dematerialized account. FREE outstation cheque collection*. they are like bank branches). account transfers and other related functions. So it is just like a bank account where actual money is replaced by shares. FREE Electronic Funds Transfer upto 20 crores per month. A PIN must be entered to withdraw cash and access account functions.
This Electronic payment facility is applicable for deposit of application fees in case of all licensing schemes (For which Electronic Filing of application facility is
. So you don't have to possess any physical certificates showing that you own these shares.
charges. and provides easy receipt of public issue allotments
Electronic fund transfer
EFT (Electronic Fund Transfer) is the new facility provided to the Exporters for submitting the licence fee through the Internet without visiting the Bank for the payment. All these will show in your demat account. The facility shall be available only for electronically filed applications. avoids confusion in the ownership title of securities. 25 of Wipro. they are adjusted in your account. 45 of HLL and 100 of ACC.
pledging/hypothecation of shares easier. This procedure is being proposed to facilitate payments through electronic means. the DP will provide you with periodic statements of holdings and transactions.
As you buy and sell the shares. enables quick ownership of securities on settlement resulting in increased liquidity. Just like a bank passbook or statement. They are all held electronically in your account.shares looks like this: 40 of Infosys.
And it doesn't matter whether you are just starting out. looking forward to retirement or already enjoying retirement. These dreams need to be translated into financial goals.available). You may want to buy a house or a car. The transaction is carried out in secured environment through Banks gateway specially created for the purpose. Payment can be made only by logging on valid unique ID and password provided to the exporter by the Bank.However
DEPB. An investment plan is a summary of your financial goals. or provide for your children's education or even for contingencies. some five years from now.EPCG and DFIA Licensing Schemes. and the strategies you need to use to achieve those goals.DES. well on the way in your career.
All of us have dreams. You may want to achieve some goals in the next year. you will need to do some careful planning for your future.
Title & Objectives
STUDY THE SATISFACTION & PREFERANCE OF CUSTUMERS TOWARDS PUBLIC SECTOR BANKS VS. To study the factors which influence choice of a bank availing
services. To study the satisfaction level of consumers from their existing banks. 3. 2. PRIVATE SECTOR BANKS IN INDIA
1. To study the problem faced by consumers
Study of various aspect of Banking was done by going through magazine. Newspapers and Websites and relevant material was collected. Journals. interpreted and conclusion was drawn.In the forth phase the collected data was tabulated analyzed.This third phase was of survey.This research has done in different phases:1st Phase: . which include interaction wit consumers to collect the required information from them.
2nd Phase: .
3rd Phase: .In the second phase questionnaire was developed keeping in view the objectives of the project work in hand. (1) Primary data
Data has collected by using two methods.
4th Phase: . for that I took 100 people as a respondent.
generally these data are collected from the market or department of the company. For primary data I took 100 people as the respondent. Ansal plaza. I have collected primary data from the market. New data collected for research purposes are also known as primary data. for that I select these areas Baddowal. Planning Documents. Historical & Official Documents From Journals. For my research topic I collect secondary data from Magazine Previous research.public interest & opinion Handbooks.
(2) Secondary data: . Newspapers. Policy Statements. Ghumar mandi. I choose these areas for respondent because at that are people from every part of Ludhiana come for shopping.These data are the fresh data. Chaura bazar. Previous research reports etc.
UNIVERSE:-In the case of universe is all the people having one or more Bank account/ accounts in one or more banks.(2) Secondary data
(1) Primary data: .Secondary data are those data which are already in existing. These types of data can collect from Biographies . Mal road. books and websites. Magazine. Reports. Which are not in existing.subjective interpretation involved Letters .reveal interactions Newspapers .
Population is all the people have one or more Bank accounts in one or more Banks in Ludhiana.POPULATION:. Although all possible steps were taken to overcome most of limitations.
SAMPLING UNIT: .Sampling unit is one consumer who has been surveyed having one or more banks. this study has also its limitations. but the following were beyond control and hence played their part in the conduct of the study:-
SAMPLE SIZE: .Sample size is 100 people who have been taken part of the survey
SAMPLE TECHNIQUES:-Sample technique used in convenience sampling
LIMITATION OF THE STUDY
Like all other study.
This aspect of human behaviors distorts the research result. Human beings have tendency to behave artificially when they know that they are banging observed. since no pre test was done. For a study like this one a still bigger sample size would have been
The scope of study is limited to some part of Ludhiana only because of the
limited time and financial resources.
The sample size taken is small and not be sufficient to predict the result
with 100% accuracy.
• appropriate. before the circulation of the questionnaire. So the customer one responds start behaving artificially when they know that their attitude opinions believes etc.•
The study is carried out on the customers belonging to various part of
society who are human beings.
The Questionnaire might certain un detectable errors and limitations which
also affect the study. So the result of the study may not be generalized for Indian Bank as a whole
. are being studied.
Analysis and interpretation
Do you have a Bank account?
(2) Which Bank account you have? State Bank Of India Punjab National Bank Allahabad Bank Punjab & Sindh Bank IDBI 24 15 6 8 9
120 100 80 60 40 20 0 Yes N o
Every person has a Bank account.
.ICICI HDFC UTI Other…………….
18 12 8
UI T HF DC I I I CC I B DI P n b&S d B n u ja in h a k A h b dB n lla a a a k P B N S I B 0
Customers of public sector banks have more accounts
(3) Which sector banks do you prefer?
54 52 50 48 46 44 P rivate P ublic
Respondents are more interested in public sector bank than private sector banks
(4) Factor which influences your bank choice (Public banks)
Personal contact Working hours
Goodwill Fast & difference service More branches
8 8 24
30 25 20 15 10 5 0 Personal contact Working hours Goodwill Fast & difference service More branches
In public banks costumer are influenced by more branches Factor which influences your bank choice (Private Banks)
Personal contact Working hours
ATM/Debit card Demate Internet/ Mobile Banking Insurance Electronic fund transfer
Public sector Banks 49 3 16 2 4
Private sector Banks 42 12 19 4 11
.Goodwill Fast & difference service More branches
6 22 9
25 20 15 10 5 0 Personal contact Working hours Goodwill Fast & difference service More branches
In private sector banks customer are more influenced by fast and different services (5) Please tick the services availed by you.
Foregin fund transfer
.85 2.Foreign fund transfer Housing loan Investment advisory
1 17 1
4 16 1
60 50 40 30 20 10 0 Insurance Internet/Mobile Banking Electronic fund transfer ATM/Debit card Demate
Public sector banks Private sector Banks
In both type of sector banks more customer are availing ATM facility
(6) Rate the various services being provided by Bank
Sector Private Sector Banks Public Sector Banks
Mean 2.7 2.6 2.8 2. same situation is in public sector banks.
(7) How you rate overall performance of a bank? Very good
Public Banks Private Banks sector
6 sector 4
.5 Private sector Banks Public sector Banks
In Private sector banks customer rate services between very good & good.9 2.
25 20 15 10 5 0 Excellent Very good Poor Fair
Public sector Banks Private sector Banks
In public sector banks Customer rate overall performance very good and in private sector Banks. it ranks as good.
(8) What type of problems you face with your bank?
ATM Facility 7
Public Banks sector
of Transfer money
sector 9 8 16 14
40 35 30 25 20 15 10 5 0
Public sector Banks Private sector Banks ATM money
In both sector banks customer are facing employees behavior problem.
(9) Will you recommend your friends and relatives to open an account with this bank?
Sector Public sector Banks 52
Private sector Banks
i.60 50 40 30 20 10 0 Yes NO Public sector Banks Private sector Banks
One customer told that he will not recommend his friends to open an account in his Bank
(10) Any suggestion for the Bank. Employees’ behavior should improve ii. More branches should open in private sector banks
People are now coming very close to private banks. This research shows that choice of private banks are now playing a vital role and shows that in future people will prefer private banks than public sectors banks. Working hour of public banks should improve
Banking sector is growing day-by-day in India. ATM facility in public banks should improve iv. now they are changing view about the public sector banks . Public sector Banks and private sector Banks both are growing very rapidly.iii. In this
.They are changing their thinking.
133-135 WWW. 379-382.wikipedia.. Service availed by customers is markable.com/ http://www.com/personal/default. Goyal General knowledge 2007.org/wiki/UTI_Bank
. So we can say that future of both type of banks are broad. People are influenced byfast and different services in private sector banks and in public sector banks customers are influenced by more branches and goodwill. Satisfaction level of public sector banks is better than private sector banks. Himalaya publication house.com http://www. 501-511. Page no.41-42. 276.hdfcbank.icicibank. but there is not a big gap between private sectors banks and public sector banks. Customer are satisfied with both type of banks.research people are still preferring public sector banks and their services.
Gordan Indian Banking 2004.Indianbank. Still customers are facing some problems like customer behavior and scarcity of branches in private sector banks.org/wiki/IDBI_Bank http://en.wikipedia. Arihant publication (India) PVT LTD.htm http://en. page no.
(1) Do you have a Bank account? Yes ( ) NO ( )
(2) Which type of account you have?
Name of the Bank Name State Bank Of India Punjab National Bank Allahabad Bank Punjab & Sindh Bank IDBI ICICI HDFC UTI Other……………. Saving
Types Current Demate Salary
(3) Which sector bank do you prefer more? Private sector ( ) Public sector ( )
(4) Please tick the factor which influences your bank choice.. (a) Personal contact (c) Goodwill (e) More branches (b) Working hower (d) Fast & difference service
Service Speedy Transaction Clearing of cheques Any where banking ATM facility One counter service Working hour of bank
Very good (3)
(7) How you rate overall performance of a bank?
(a) ATM/Debit card (c)Internet/Mobile banking (e)Electronic fund transfer (g) Housing lone
(b) Demate (d) Insurance (f) Foreign fund transfer (h) Investment advisory
(6) Rate the various services being provided by Bank.(5) Please tick the services availed by you.
………………………………….(a) Excellent (c) Good (e) Poor
(b) Very good (d) Fair
(8) What type of problems you face with your bank? (a) Working hour (c) Behavior of employees (b) ATM facility (d) Transfer of money
(9) Will you recommend your friends and relatives to open an account with this bank? Yes ( ) No ( )
(10) Any suggestion for the Bank ………………………………………………………………… …………………………………………………………………
Name Occupation Address