“To analyze the popularity of Canara Bank’s

technological Products and Services among customers”

Under the guidance of Mr. P.R. Dev (Senior Manager, Mktg. cell, CO, Ranchi)
Submitted by:
Arijeet Mondal (2011MB0034)

ABOUT THE ORGANISATION
CANARA BANK

Shri Ammembal Subba Rao Pai Founder Canara Bank "A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people" - A. Subba Rao Pai.”

Founding Principles
• • • • To remove Superstition and ignorance. To spread education among all to sub-serve the first principle. To inculcate the habit of thrift and savings. To transform the financial institution not only as the financial heart of the community but the social heart as well. • To assist the needy. • To work with sense of service and dedication. • To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.

Milestone

• • •
• • • • • • •

1st July 1906 - Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000 shares of Rs.50/- each, with 4 employees. 1910 - Canara Hindu Permanent Fund renamed as Canara Bank Limited. 1976 - 1000th branch inaugurated 1983 - Overseas branch at London inaugurated Cancard (the Bank‟s credit card) Launched. 1984 - Merger with the Laksmi Commercial Bank Limited 1987- Canbank Mutual Fund & Canfin Homes launched 1989 - Canbank Venture Capital Fund started. 1995-96-Became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore. 2003-04-Launched Internet & Mobile Banking Services 2004-05-100% Branch computerization 2005-06-Entered 100th Year in Banking Service. It Launched Core Banking Solution in selected branches. Number One Position in Aggregate Business among Nationalized Banks

Contd…..
• • • 2006-07- Retained Number One Position in Aggregate Business among Nationalized Banks. 2007-08- Launching of New Brand Identity and Launching of a „Call Centre‟. 2008-09 The Bank crossed the coveted Rs. 3 lakh crore in aggregate business.  The Bank‟s 3rd foreign branch at Shanghai was commissioned 2009-10 –  The Bank‟s aggregate business crossed Rs.4 lakh crore mark.  Net profit of the Bank crossed Rs.3000 crore.  The Bank‟s branch network crossed the 3000 mark. 2010-11 The Bank‟s aggregate business crossed Rs.5 lakh crore mark.  Net profit of the Bank crossed Rs. 4000 crore 2012 Global Business Crosses 5.59 lakh crore  Net Profit for FY12 at 3283 crore

Contd…..
• At present Canara Bank has 3616 branches. • 3151 ATM covering 846 centers. • With 100% CBS, the Bank offers technology banking, such as, Internet Banking, Mobile Banking and Funds Transfer through NEFT and RTGS across all branches. • Products & Services:
• • • • • • • SAVINGS AND DEPOSITS LOANS TECHNOLOGY PRODUCTS MUTUAL FUNDS INSURANCE CONSULTANCY SERVICES ONLINE TRADING

Life Insurance
• Canara HSBC Oriental Bank of Commerce Life Secure Smart Plan • Canara HSBC Oriental Bank of Commerce Life Insurance Dream Smart Plan • Canara HSBC Oriental Bank of Commerce Life Insurance Grow Smart Plan • Canara HSBC Oriental Bank of Commerce Life Pure Term Plan • Canara HSBC Oriental Bank of Commerce Life Insurance Future Smart Plan • Canara HSBC Oriental Bank of Commerce Life Insurance Insure Smart Plan • Canara HSBC Oriental Bank of Commerce Life Insurance Smart Sanchay Plan

ORGANISATION STRUCTURE
HEAD OFFICE (BANGLORE) HEADED BY CHAIRMAN CUM MD

CIRCLE OFFICE (34) HEADED BY GENERAL MANAGER REGIONAL OFFICE (26) HEADED BY DEPUTY GENERAL MANAGER BRANCH (3616) HEADED BY CHIEF MANAGER

Technology Products
1. Internet Banking:- “Internet banking” refers to systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent device. Mobile Banking:- Mobile banking is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. Mobile banking today is most often performed via SMS or the Mobile Internet but can also use special programs, called clients, downloaded to the mobile device.

2.

3.

ATM cum Debit Card:- A debit card (also known as a bank card or check card) is a plastic card that provides an alternative payment method to cash when making purchases.

Background of the Project
Research Objectives-:
• Distribution pattern of Internet Banking, Mobile Banking and Debit Card among customers • Categorizing the users in terms of age, gender and profession • Popularity of Internet and Mobile Banking among customers • Satisfaction level of customers using i-Banking and Mobile Banking • Popularity of Debit Card • Barriers (if any) to these new mode of banking

Research methodology
Research Design:• To prepare the background of our study, we have used exploratory research method at the initial phase. For this purpose secondary data is used extensively from different sources. Previous research paper, related articles have been studied. • After this, we have gone through a descriptive research with sample population. Interview has been conducted with the help of open ended questionnaire.

Source of Data
• Primary data source: Interview and Questionnaire. • Secondary data source: Company‟s web site, Financial articles, Previous research papers. • Sampling: Since our target population is homogenous in nature, we have used convenient sampling due to money and time constraint. Sample is selected irrespective of family background, stream of study and gender. • Target population: All Saving Bank Account holders of Canara Bank (Saraidhela Branch,Bank More Branch)above the age of 18 years. • Sample size: 300 • Scale used: Likert Scale is used to measure the attitude of target population.

Step 1:-LITERATURE REVIEW AND PREVIOUS FINDINGS
Preferred Banking Channel Age Group Distribution of Online Banking Users
10% 18% 2% 4% ATM Internet Banking 20% 2% 25% 18-25 26-35 36-45 46-60 61+ 43%

53%
23%

Phone Banking Mobile Banking Branch

Gender-wise distribution
Request a cheque book 17% Female Payment reminders Status of cheques View last three transactions Male Checking account balance 83% 39.97 0 5 10 15 20 25 30 35 40 19.11 20.92 21.06 28.15

Preferred Mobile Banking Service…

Importance of service quality dimensions for i-Banking
Importance of service quality dimensions for i-banking

Fulfilment Responsiveness Efficiency Privacy/Security User-friendliness Accessibility Reliability 0 1 2 3 4 5 6

Importance of service quality dimensions for i-banking

Step 2:- RESEARCH DATA
Gender-wise no. Of customers
17%

Male Female

83%

Data interpretation and research findings(internet banking)
• Only 32% Saving Account holders are using Internet Banking facility. • Only 23% users came to know about i-Banking from bank staff. So, there exists a possibility to encourage customers more through bank staffs. • awareness of different internet banking facilities is low. • Age group 26 years to 35 years is the major part who uses mobile banking. • Female i-Banking users contribute 24% of all i-Banking users. • More than 50% of our sample prefers ATM as a mode of banking. • Making transaction over internet is the most used facility in iBanking.

Data interpretation and research findings(mobile banking)
• 56% of Canara Bank‟s customers are using mBanking. • 66% of customers who were not using mobile banking previously, agreed to apply for Canara Bank‟s m-Banking. • Account balance information (a push service) is the most preferred Mobile banking service. • Most of the mobile banking users don‟t use any pull services which are chargeable. • we get the overall satisfaction level of Canara Bank‟s Mobile Banking is 2.85.

Data interpretation and research findings(ATM cum debit card)
• 68% of the customers are already using Canara Bank‟s ATM cum Debit Card. • 33% of Canara Bank‟s Debit Card holders use their cards 5 to 10 times a month. • Almost 80% of the ATM cum Debit card holders use their cards in ATM mostly. • Most of the ATM cum Debit Card users fall in the group of 26 to 35 years. • 68% of ATM cum Debit card users don‟t use their card other than in ATM. • 0nly 31% of users are satisfied and surprisingly 57% ATM cum Debit card holders are not satisfied.

Conclusion
• Some of the banks are not able to calculate accurately the cost of their technological services. Most of the banks are operating in loss or at near break-even as far as debit card is concerned. • As we all know that banking sector in India is very competitive in nature, the only option to a bank to attract customers is to differentiate their services. • In Canara Bank it has been seen that the penetration of iBanking is still very low (about 32%). • local market acceptance of e-commerce and the penetration level of internet among customers are two major barriers to these electronic modes of payment. • It has also been seen that most of the internet banking users fall in the age group of 26 to 35 years.

Contd……
• Most of the i-Banking users are businessman. • Most of the customers prefer ATM as a mode of banking. • Compared to Canara Bank‟s i-Banking, its mobile banking is more successful. • The security aspect is one of the strongest barriers for the mass acceptance of mobile banking. • In case of Canara Bank‟s Debit card, major parts of the users use it only 5 to 10 times a month. • The main causes of dissatisfaction of 57% debit card users are less number of ATM and Lack of ATM maintenance.

RECOMMENDATIONS
• 1. In order to cut the operation cost of a branch and attract customer in this highly competitive industry, Canara Bank must concentrate on the popularization of its technological services. • 2. As mass advertisement is not a wise idea for this nonprofitable product, awareness of Canara Bank‟s technoproduct among customers should be through bank staffs. • 3. To attract more customers in i-Banking, Canara Bank must introduce some integrated services (Mobile recharge, Ticket booking etc.) • 4. In case of Canara Bank‟s mobile banking, special focus should be made on the security issues of SMS banking. Developing Mobile applications supported on JAVA enabled phone increases the security of mobile banking as well as it provides the facility of using more services. • 5. Pull based mobile banking services are rarely used. It should concentrate on free-of-cost mobile services more. • 6. Canara Bank should establish more ATM in the city.

LIMITATIONS OF THIS RESEARCH
• 1. Our study was limited to Dhanbad region only. • 2. Our data is based on Canara Bank‟s Saraidhela branch and for time constraints, it was not possible to collect data from more branches. • 3. As the branch is in semi-urban area. So, the research findings cannot be generalized for all areas. • 4. The usage of Canara Bank‟s techno product is based on customers‟ word-of-mouth. The accuracy of such data is always verifiable. • People are less aware about the products and services.

THANK YOU

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