A Bank is a financial institution and a financial

intermediary that accepts deposits and channels

those deposits into lending activities, either
directly or through capital market. A bank
connects customers with capital deficits to
customers with capital surpluses.
Early Phase or Phase I

The General bank of India was set up in the year 1786.

Next came Bank of Hindustan & Bengal Bank.

The East India company established Bank of Bengal (1809) , Bank of

Bombay (1840) and Bank of Madras (1843).

Nationalization of Banks or Phase II

The Reserve Bank of India , Indias Central Banking authority was

nationalized on January 1, 1949.

Nationalization of Imperial Bank of India.

 It formed the State Bank of India to act as the principal agent of the
RBI.

Nationalization of SBI subsidiaries.

Nationalization of 14 major Commercial Banks.

Banking Sector Reforms or Phase III

This phase has introduced many more products and facilities in the
banking sector.

In 1991 , a new committee was set up Narshimham Committee.

5
 Established :- April 1, 1935

Ownership :- originally private, Nationalized 1949.

Central Office :- Mumbai

Preamble :-
"... to regulate the issue of Bank Notes and keeping of reserves
with a view to securing monetary stability in India and generally to
operate the currency and credit system of the country to its
advantage
 MAIN FUNCTIONS

Regulator and supervisor of financial system.

Banker to the Banks.

Banker to the Government.

Monopoly of Note Issue.

It supervises the operations of credit institutions.

 Commercial Bank

Central Bank.

Development Bank.

Investment Bank.

Cooperative Credit Bank.

Regional Rural Bank.

Non Banking Financial Companies.

8
 Key Difference

A public sector bank is a bank in which the major part of stake or

equity is held by the government.

Private sector banks are banks in which greater part of stake or

equity lies in the hands of private shareholders.
 State Bank of India

17 out of 20 nationalized banks.

Regional rural bank.

10
 Axis Bank

Federal Bank

HDFC Bank

ICICI Bank

IndusInd Bank

Yes Bank

11
The Chief Objectives of this study are

To find the banking sector largely preferred by the customers.

To find out the factors which influences the customers to choose a

bank.

To study the problems faced by the customers in public as well as

private sector banks and also to compare between them.
 Definition

Sample Design

Population

Sample Size

Sampling Technique

Sampling Description
 Data Collection

Questionnaire Respondents

Primary
Data

Banking
Books
IBA
Internet
Website
Secondary
Data
Questionnaire Format
 AGE

Below 20 20 - 30 31 - 44 45 and above

PARTICULARS NO. OF RESPONDENTS

BELOW 20 7
20-30 41
31-44 21
45 and above 11
 GENDER

MALE FEMALE

PARTICULARS NO. OF RESPONDENTS

MALE 56

FEMALE 24
 HIGHEST EDUCATIONAL QUALIFICATION

upto matric

graduate and professional

post graduate

illiterate

PARTICULARS NO. OF RESPONDENTS

UPTO MATRIC 9
GRADUATE AND PROFESSIONAL 43
POST GRADUATE 23
ILLITERATE 5
 OCCUPATION

BUSINESSMAN

GOVT.

STUDENT

OTHERS

PARTICULARS NO. OF RESPONDENTS

BUSINESSMAN 14
GOVT. 37
STUDENT 22
OTHERS 7
 PLACE OF DOMICILE

URBAN

RURAL

PARTICULARS NO. OF RESPONDENTS

URBAN 52

RURAL 28
 AWARENESS OF THE DIFFERENCE
BETWEEN PSU BANKS AND PRIVATE BANKS

YES

NO

PARTIALLY

PARTICULARS NO. OF RESPONDENTS

YES 41

NO 27

PARTIALLY 12
1) Some of the respondents of the survey were unwilling to share
information.

2) The research was carried out in a short period of time so. Therefore
the sample size and other parameters were selected accordingly so as
to finish the work in given time frame.

3) The information given by the respondents might be biased because

some of them might not be interested in providing correct
information.

4) The officials of the bank supported me a lot but did not have
sufficient time to clear all the points elaborately.
 BANKING SECTOR

PUBLIC

PRIVATE

BOTH

BANKING SECTOR NO. OF RESPONDENT

PUBLIC 62

PRIVATE 14

BOTH 4
 TYPE OF ACCOUNT

ACCOUNT
SAVING
CURRENT
FD
SALARY

ACCOUNT SAVING CURRENT FD SALARY

NO. OF RESPONDENT 55 4 7 14
 BANK PREFERRED

UBI

SBI

ICICI

AXIS

OTHERS

BANK PREFERRED NO. OF RESPONDENTS

UBI 21
SBI 43
ICICI 5
AXIS 9
OTHERS 2
 REASON FOR CHOOSING A PARTICULAR
BANK

FRIENDLY BEHAVIOUR BY STAFF

TRUST/RELIABILITY

QUICK AND FAST SERVICES

LOCATION

REASON NO. OF RESPONDENTS

FRIENDLY BEHAVIOUR BY STAFF 4

TRUST/RELIABILITY 43

QUICK AND FAST SERVICES 9

LOCATION 24
 SERVICES AVAILED FROM THEIR
RESPECTIVE BANKS
ATM/DEBIT CARD

MOBILE BANKING

INSURANCE

CREDIT CARD

SERVICES AVAILING NO. OF RESPONDENTS

ATM/DEBIT 66

MOBILE 3

INSURANCE 9

CREDIT CARD 2
 SATISFACTION LEVEL OF CUSTOMERS
TOWARDS THEIR BANK

PRIVATE

PUBLIC

BOTH

SATISFACTION LEVEL NO. OF RESPONDENTS

PRIVATE SECTOR BANK 12

PUBLIC SECTOR BANK 53

BOTH 15
 REASON FOR CHOOSING PSU BANK

FRIENDLY BEHAVIOUR BY STAFF

TRUST/RELIABILITY

QUICK AND FAST SERVICES

LOCATION

REASON FOR CHOOSING PSU BANK NO. OF RESPONDENTS

FRIENDLY BEHAVIOUR BY STAFF 0
TRUST/RELIABILITY 43
QUICK AND FAST SERVICES 1
LOCATION 22
 REASON FOR CHOOSING PRIVATE SECTOR
BANK
FRIENDLY BEHAVIOUR BY STAFF

TRUST/RELIABILITY

QUICK AND FAST SERVICES

LOCATION

REASON FOR CHOOSING PRIVATE BANK NO. OF RESPONDENTS

FRIENDLY BEHAVIOUR BY STAFF 6

TRUST/RELIABILITY 1

QUICK AND FAST SERVICES 9

LOCATION 2
 With respect to the Cachar District, the PSU Banks are more
preferred as compared to Private Banks.

The main factors which influence the customers of Cachar district

according to our study are Trust/Reliability and Location of the
branch.

The main problems faced by the customers in PSU banks are

unfriendly behaviour of the staff towards them also the services
provided to them are not quick enough.

The main problems faced by the customers in Private Banks

trust/reliability and location of the branch.
 FOR PUBLIC SECTOR BANKS

Bank staff should be customer friendly and highly motivated to serve the normal customers.

As far as possible the bank should reduce the documentation process while providing loan.

Computerization should be done in banks at all levels and the operators should be properly
trained.

Token system should be introduced so as to reduce the waiting line in the bank.

Proper ambience in the banks can develop a healthy work culture.

Should be flexible in providing interest of the deposited money.

Quick services should be provided.

FOR PRIVATE SECTOR BANKS

24 hours banking should be introduced so as to facilitate the customers who dont

have time in day time or week days.

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

Should reduce the amount while opening a new saving bank account.

Should maintain a proper recruitment policy like the PSU to attract genuine talent to
work for the customers. Rather than recruiting on internal recommendation they
should follow the IBPS for recruitment to get better talent and better services from
their employees.

Should enhance the number of branches in rural areas to attract more customers.

Should advertise extensively regarding their operations and services to garner faith in
them.
 FROM THE ABOVE STUDY WE CAN CONCLUDE THAT THE
PEOPLE OF CACHAR DISTRICT HAVE MORE FAITH ON PSU
BANKS RATHER THAN PRIVATE BANKS.

THE MAIN BANKS OF THESE REGION ARE UBI AND SBI.

IN ORDER TO GRAB THE MARKET THE PRIVATE BANKS

HAVE TO INCREASE THE NUMBER OF BRANCHES AND
ENHANCE THE TRUST FACTOR IN THEM.