DISSERTATION PROJECT REPORT

ON

“COMPARATIVE STUDY OF CUSTOMER

SATISFACTION TOWARDS SERVICES PROVIDED
BY PRIVATE AND PUBLIC SECTOR BANK”
Submitted for the partially fulfilment of degree of
MASTER OF BUSINESS ADMINISTRATION
Session : 2018-2020

SUBMITTED TO: SUBMITTED BY:

Proff Sanjay Mishra Anuj Singh

Department of Business MBA (GEN) 4TH SEM

Administration Roll No. : 2409011065

MAHATMA JYOTIBA PHULE ROHILKHAND

UNIVERSITY
Pilibhit Bypass Road,Bareilly
 DECLARATION

I hereby declare that this project entitled

“COMPARATIVE STUDY OF CUSTOMER SATISFACTION
TOWARDS SERVICES PROVIDED BY PRIVATE AND
PUBLIC SECTOR BANK” was sincerely done, during the period
of my last semester. The study has been undertaken in partial
fulfilment for the Degree of Master of Business Administration at
M.J.P.R.U BAREILLY.

I also declare that this project has not been submitted to any
other institutions or university.

ANUJ SINGH
 ACKNOWLEDGMENT

It is a great pleasure and honour to express my deep sense to

Prof. P. B SINGH, Head of the department , for allowing me to
work in the field of interest and also my guide who gave his
endeavour help and cooperation in completion of this project.
I express my deep sense to my deep sense to my all faculty
member, My guide PROFF SANJAY MISHRA and co- guide
DR. ROMITA KHURANA. She give me constant encouragement
and construction suggestion whenever required.
There are no words to pay regards to my parents and family
member, friends who took so many difficulties to bring me to this
stage. Without their love and blessing I could not have
accomplishment this task.
Above all, I thank almighty for giving me patience and strength to
overcome the difficulties, which crossed my way in
accomplishment of his endeavour.

ANUJ SINGH
MBA Gen IVth Sem
Roll No. : 2409011065
MJP ROHILKHAND UNIVERSITY
 INTRODUCTION

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

advent of tech banking, thereby lending the industry a stamp of universality. In general,

banking may be classified as retail and corporate banking. Retail banking, which is designed

to meet the requirement of individual customers and encourage their savings, includes

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

Corporate banking, on the other hand, caters to the need of corporate customers like bills

discounting, opening letters of credit, managing cash, etc.

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

nineties consequent upon deregulation and liberalization of economic policies of the

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

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

marketing concept in the banking sector was introduced to enhance the customer satisfaction

the policy of privatization of banking services aims at encouraging the competition in

banking sector and introduction of financial services. Consequently, services such as Demat,

Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to

the needs of public. An important agenda for every banker today is greater operational

efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious:

customer delight.

The introduction to the marketing concept to banking sectors can be traced back to American

Banking Association Conference of 1958. Banks marketing can be defined as the part of

management activity, which seems to direct the flow of banking services profitability to the

customers. The marketing concept basically requires that there should be thorough

understanding of customer need and to learn about market it operates in. Further the market is

segmented so as to understand the requirement of the customer at a profit to the banks.

DEFINITION OF BANK

The Oxford dictionary defines the Bank as,

“An establishment for the custody of money, which it pays out, on a customer’s

order.”

According to Whitehead,

“ A Bank is defined as an institution which collects surplus funds from the public,

safeguards them, and makes them available to the true owner when required and also lends

sums be their true owners to those who are in need of funds and can provide security.”

Banking Company in India has been defined in the Banking Companies act 1949,

“One which transacts the business of banking which means the accepting, for the

purpose of lending or investment of the deposits of money from the public, repayable on

demand, or otherwise and withdraw able be cheque, draft, order or otherwise.”

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

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

corporate sector.

The Indian banking system has Reserve Bank of India (RBI) as the apex body for all matters

relating to the banking system. It is the central Bank of India. It is also known as the Banker

To All Other Banks.

EVOLUTION OF INDIAN BANKING

Ancient banking system of India constituted of indigenous bankers. They have been carrying

on their age-old banking operations in different parts of the country under different names.

The modern age of banking constitutes the fundamental basis of economic growth. The term

Bank is being used since long time but there is no clear conception regarding its beginning.

According to the viewpoint, in good old days. Italian money leaders were known as

“Banchi” because they kept a special type of table to transact their business.
IMPORTANCE OF BANKS

Today banks have become a part and parcel of Kotak Bank's life. There was a time when

dwellers of the city alone could enjoy their services. Now banks offer access to even a

common man and their activities extend to areas hitherto untouched. Banks cater to the needs

of agriculturalists, industrialists, traders and to all the other sections of the society. In modern

age, the banking constitutes the fundamental basis of economic growth. Thus, they accelerate

the economic growth of a country and steer the wheels of the economy towards its goals of

“self reliance in all fields”. It naturally arouses Kotak Bank's interest in knowing more about

the ‘Bank’ and the various men and the activities connected with it.

Indian Banking System

Banking in India has its origin as early as the Vedic period. It was believed that transition

from money lending to banking must have occurred even before Manu, The great Hindu

Jurist, who has devoted a section of his work to deposit advance and laid down rules relating

to rates of interest. During the Mogul period, the indigeneousBankers played a very important

role in lending money financing foreign trade and commerce. During the days of East India

Company, it was turn over the agency houses to carry on the business. “The General Bank of

India” was the first to join sector in the year 1786.The others that followed were the Bank of

Hindustan and the Bengal bank. The bank of Hindustan is reported to have continued till

1906 while the other two failed in the meantime.

In the first half of the 19th century the East India Company established three banks:

1. Bank of Bengal (1809).

2. Bank of Bombay (1840).

3. Bank of Madras (1843.

These three banks are also known as Presidency Banks were independent units and

functioned well. These three banks were amalgamated in 1920 and Imperial Bank of India
was established on 27th january1921, which started as private shareholders banks, mostly

Europeans shareholders, with the passing of time Imperial bank was taken over by the newly

constituted State bank of India act in1955.In 1865 Allahabad Bank was established and first

time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters

at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,

Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in

1935. On July, 1969, 14 major banks of India were nationalized and on 15th April, 1980 six

more commercial private banks were also taken over by the government.

Reserve Bank of India

The Banking system is an integral sub-system of the financial system. It represents an

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

corporate sector. The Indian banking system has The Reserve Bank of India (RBI) as the

apex body from all matters relating to the banking system. It is the “Central Bank” of India

and act as the banker to all other banks.

Functions of RBI:

 Currency issuing authority

 Banker to the government

 Banker to other Bank.

 Framing of monetary policy.

 Exchange control.

 Custodian to foreign exchange and gold reserves.

 Development activities.

 Research and development in the banking sector.

CLASSIFICATION OF BANKS

On the basis of Ownership

 PUBLIC SECTOR BANKS

Public sector banks are those banks that are owned by the government. The government owns

these banks. In India 20 banks were nationalized in 1969 and 1980 respectively. Social

welfare is there main objective.

PRIVATE SECTOR BANKS

These banks are those banks that are owned and run by private sector. An individual has

control over these banks in proportion to the shares of the banks held by him.

CO-OPERATIVE BANKS

These are those banks that are jointly run by a group of individuals. Each individual has an

equal share in these banks. Its shareholders manage the affairs of the bank.

According to the Law

SCHEDULED BANK

Schedule banks are the banks, which are included in the second schedule of the banking

regulation act 1965. According to this schedule bank:

1. Must have paid-up capital and reserve of not less than Rs500, 000.

2. Must also satisfy the RBI that its affairs are not conducted in a manner

Determinate to the interest of its depositors.

Schedule banks are sub-divided as:-

a) State co-operative banks

b) Commercial banks

NON-SCHEDULED BANKS

Non -schedule banks are the banks, which are not included in the second schedule of the

banking regulation act 1965. It means they do not satisfy the conditions lay down by that
schedule. These are the banks having paid up capital, less than Rs.5Lakhs. They are further

classified as follows:-

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

B. Commercial banks

According to Function

COMMERCIAL BANKS

These are the banks that do banking business to earn profit. These banks make loans for short

to business and in the process create money. Credit creation is the main function of these

banks.

FOREIGN BANKS

These are those banks that are incorporated by foreign company. They have set up their

branches in India. These banks have their head offices in foreign countries. Their principle

function is to make credit arrangement or the export and the import of the country and these

banks deals in foreign exchange.

INDUSTRIAL BANKS

Industrial banks are those banks that offer long term and medium term loan to the industries

and also work for their development. These banks help industries in sale of their shares,

debentures and bonds. They give loan to the industries for the purchase of land and

machinery.

AGRICULTURAL BANKS

Agricultural banks are those banks that give credit to agricultural sector of the economy.

SAVING BANKS

The principle function of these banks is to collect small savings across the country and put

them to the productive use. In India department of post office functions a savings banks.
 CENTRAL BANK

Central Bank is the apex bank of the banking system of the country. It issues currency notes

and acts a banker's bank. Economic stability is the principle function of this bank. In short, it

regulates and controls the banking system of the country. RBI is the Central Bank of India.

PRIVATIZATION OF INDIAN BANKING

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

process of collaborated financial liberalization had cleared up the Bank’s balance sheet

enabling them to with stand increased competition, global financing, turmoil and even

unprotected industrial slow down. But the cycle of liberalization has run its full course. Now

it is the time for the big structural leap, rationalization, mergers, and privatization. Unless the

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

There are twp areas of competitions which banking industry is facing internationally and

nationally. In the pre-liberalization era, Indian banks could grow in a closed economy but the

banking sector opened up for private competition. It is possible that private banks could

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

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

grapple with the changes of financial deregulation.

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

innovative channels of banking which are being widely used as they result in saving both

time and money which are two essential things that every one is short of and is running to

catch hold of them. Moreover private sector banks are aligning its infrastructures, marketing

quality and technology to build deep commitment in building consumer and retail banking.

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

OBJECTIVES OF STUDY

1. To find the bank sector that is largely availed by the customer.

2. To study the factors the factors influencing the choice of a bank for availing services.

3. To find and compare the satisfaction level of customers in public sector as well as in

private sectors bank.

4. To study the problem faced by customer.

5. To get suggestions for improvement or change in the services of public and private

sector banks.

6. To study what do people expect in the new era of banking.

 COMPANY PROFILE STATE BANK OF INDIA

HISTORY OF STATE BANK OF INDIA

The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of

Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of

Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15

April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency

banks were incorporated as joint stock companies, and were the result of the royal charters.

These three banks received the exclusive right to issue paper currency in 1861 with the Paper

Currency Act, a right they retained until the formation of the Reserve Bank of India. The

Presidency banks amalgamated on 27 January 1921, and the reorganized banking entity took

as its name Imperial Bank of India. The Imperial Bank of India continued to remain a joint

stock company.

Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India,

which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On

30 April 1955 the Imperial Bank of India became the State Bank of India. The Govt. of India

recently acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of

interest because the RBI is the country's banking regulatory authority.

In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act, enabling the

State Bank of India to take over eight former State-associated banks as its subsidiaries. On

Sept 13, 2008, State Bank of Saurashtra, one of its Associate Banks, merged with State Bank

of India.

SBI has acquired local banks in rescues. For instance, in 1985, it acquired Bank of Cochin in

Kerala, which had 120 branches. SBI was the acquirer as its affiliate, State Bank of

Travancore, already had an extensive network in Kerala.

ASSOCIATE BANKS OF STATE BANK OF INDIA

There are six associate banks that fall under SBI, and together these six banks constitute the

State Bank Group. All use the same logo of a blue keyhole and all the associates use the

"State Bank of" name followed by the regional headquarters' name. Originally, the then seven

banks that became the associate banks belonged to princely states until the government

nationalized them between October, 1959 and May, 1960. In tune with the first Five Year

Plan, emphasizing the development of rural India, the government integrated these banks into

State Bank of India to expand its rural outreach. There has been a proposal to merge all the

associate banks into SBI to create a "mega bank" and streamline operations. The first step

along these lines occurred on 13 August 2008 when State Bank of Saurashtra merged with

State Bank of India, which reduced the number of state banks from seven to six. Furthermore

on 19th June 2009 the SBI board approved the merger of its subsidiary, State Bank of Indore,

with itself. SBI holds 98.3% in the bank, and the balance 1.77% is owned by individuals, who

held the shares prior to its takeover by the government.

The acquisition of State Bank of Indore will help SBI add 470 branches to its existing

network of 11,448. Also, following the acquisition, SBI’s total assets will inch very close to

the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at Rs

998,119 crore as on March 2009.

GROWTH OF STATE BANK OF INDIA

State Bank of India has often acted as guarantor to the Indian Government, most notably

during Chandra Shekhar's tenure as Prime Minister of India. With 11,448 branches and a

further 6500+ associate bank branches, the SBI has extensive coverage. State Bank of India

has electronically networked all of its branches under Core Banking System (CBS). The bank

has one of the largest ATM networks in the region. More than 8500 ATMs across India. The

State Bank of India has had steady growth over its history, though it was marred by the
Harshad Mehta scam in 1992. In recent years, the bank has sought to expand its overseas

operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world

banks in the Fortune Global 500 rating and various other rankings

INTERNATIONAL PRESANCE OF SBI

The bank has 92 branches, agencies or offices in 32 countries. It has branches of the parent in

Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles,

Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore

banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan

and Cape Town.

SBI operates several foreign subsidiaries or affiliates. In 1990 it established an offshore bank,

State Bank of India (Mauritius). It has two subsidiaries in North America, State Bank of India

(California), and State Bank of India (Canada). In 1982, the bank established its California

subsidiary, named State Bank of India (California), which now has eight branches - seven

branches in the state of California and one in Washington DC which was recently opened on

23rd November, 2009. The seven branches in the state of California are located in Los

Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego and Bakersfield. The Canadian

subsidiary too dates to 1982 and has seven branches, four in the greater Toronto area, and

three in British Columbia.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian

Merchant Bank and received permission in 2002 to commence retail banking. It now has five

branches in Nigeria.

In Nepal SBI owns 50% of Nepal SBI Bank, which has branches throughout the country. In

Moscow SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In

Indonesia it owns 76% of PT Bank Indo Monex.

State Bank of India already has a branch in Shanghai and plans to open one up in Tianjin.[1]
BOARD OF DIRECTOR OF SBI

Sr. No Sec. of SBI

Name of Director
. Act, 1955
Shri O.P. Bhatt
1. 19(a)
Chairman
Shri S.K. Bhattacharyya
2. 19(b)
MD & CC&RO
Shri R. Sridharan
3. 19(b)
MD & GE(A&S)
4. Dr. Ashok Jhunjhunwala 19(c)
5. Shri Dileep C. Choksi 19(c)
6. Shri S. Venkatachalam 19(c)
7. Shri. D. Sundaram 19(c)
8. Dr. Deva Nand Balodhi 19(d)
9. Prof. Mohd. Salahuddin Ansari 19(d)
10. Dr.(Mrs.) Vasantha Bharucha 19(d)
11. Dr. Rajiv Kumar 19(d)
12. Shri Ashok Chawla 19(e)
13. Smt. Shyamala Gopinath 19(f)

JOURNEY AND VISION OF SBI

The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet

size, number of branches, market capitalization and profits is today going through a

momentous phase of Change and Transformation – the two hundred year old Public sector

behemoth is today stirring out of its Public Sector legacy and moving with an agility to give

the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups – Pension Funds,

General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale

Merchant Acquisition, Advisory Services, structured products etc – each one of these

initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking models,

to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and

proposes to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking capabilities to provide

India’s growing mid / large Corporate with a complete array of products and services. It is

consolidating its global treasury operations and entering into structured products and

derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the

largest arranger of external commercial borrowings in the country. It is the only Indian bank

to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly

processes to help improve the total customer experience. With about 8500 of its own 10000

branches and another 5100 branches of its Associate Banks already networked, today it offers

the largest banking network to the Indian customer. The Bank is also in the process of

providing complete payment solution to its clientele with its over 8500 ATMs, and other

electronic channels such as Internet banking, debit cards, mobile banking, etc

With four national level Apex Training Colleges and 54 learning Centres spread all over the

country the Bank is continuously engaged in skill enhancement of its employees. Some of the

training programmes are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as Internationally. It

presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in

India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI

Cards - forming a formidable group in the Indian Banking scenario. It is in the process of

raising capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and

take all employees together on this exciting road to Transformation. In a recently concluded
mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300

two day workshops across the country and covered over 130,000 employees in a period of

100 days using about 400 Trainers, to drive home the message of Change and inclusiveness.

The workshops fired the imagination of the employees with some other banks in India as well

as other Public Sector Organizations seeking to emulate the programme.

The CNN IBN, Network 18 recognized this momentous transformation journey, the State

Bank of India is undertaking, and has awarded the prestigious Indian of the Year – Business,

to its Chairman, Mr. O. P. Bhatt in January 2008.

 COMPANY PROFILE HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The

bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its

registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled

Commercial Bank in January 1995.

HDFC is India's premier housing finance company and enjoys an impeccable track record in

India as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain the market leader in

mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC

has developed significant expertise in retail mortgage loans to different market segments and

also has a large corporate client base for its housing related credit facilities.

GROWTH AND DEVELOPMENT OF THE ORGANIZATIO

HDFC Bank is head quartered in Mumbai. The Bank at present has an enviable network of

over 684 branches spread over 316 cities across India. All branches are linked on an online

real-time basis. Customers in over 120 locations are also serviced through Telephone

Banking. The Bank's expansion plans take into account the need to have a presence in all

major industrial and commercial centers where its corporate customers are located as well as

the need to build a strong retail customer base for both deposits and loan products. Being a

clearing/settlement bank to various leading stock exchanges, the Bank has branches in the

centers where the NSE/BSE have a strong and active member base. The Bank also has a

network of about over 4000 networked ATMs across these cities. Moreover, HDFC Bank's

ATM network can be accessed by all domestic and international Visa/MasterCard, Visa

Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new

private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with

HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved

by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank

received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

PRESENT STATUS OF THE ORGANIZATION

At present HDFC Bank is the leading most bank in the housing and development sector and

is growing very fast in the other banking sectors such as life insurance & mutual fund.

The authorized capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is

Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about

19.4% of the equity is held by the ADS Depository (in respect of the bank's American

Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional

Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on The

Stock Exchange, Mumbai and the National Stock Exchange. The bank's American

Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol

"HDB.

HDFC Limited, Bennett, Coleman & Co. Ltd. and its group companies (the promoters of

erstwhile Times Bank Limited) and Chase Funds had entered into tripartite agreement dated

November 26, 1999 for effecting amalgamation of Times Bank Limited with the Bank. Under

this Agreement, Bennett Coleman Group has a right to nominate one Director on the Board of

the Bank as long as its holding exceeds 5% of the share capital of the Bank. Currently, as on

March 31, 2007, the Bennett Coleman Group holds 5.15% of the share capital of the Bank

and Mr. Vineet Jain represents the group on the Board of the Bank.

FUNTIONAL DEPARTMENT OF THE ORGANIZATION

 Chairman

Managing

Executive

Regional Sales

Area sales Head

Area Sales

Deputy Sales

Team Leader

Contract Sales

ORGANIZATION STRUCTURE AND ORGANIZATION CHART

Chairman
 Managing Director & C
EO

Joint Managing Director Joint Managing Director

(Domestic Banking) (International Business)

Executive Executive Executive Executive

Director Director Director Director

Sr. General Managers

General Managers
PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian

corporate to small & mid-sized corporate and agri-based businesses. For these customers, the

Bank provides a wide range of commercial and auctional banking services, including

working capital finance, trade services, transactional services, cash management, etc. The

bank is also a leading provider of structured solutions, which combine cash management

services with vendor and distributor finance for facilitating superior supply chain

management for its corporate customers. Based on its superior product delivery / service

levels and strong customer orientation, the Bank has made significant inroads into the

banking consortia of a number of leading Indian corporates including multinationals,

companies from the domestic business houses and prime public sector companies. It is

recognized as a leading provider of cash management and transactional banking solutions to

corporate customers, mutual funds, stock exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of

financial products and banking services, giving the customer a one-stop window for all

his/her banking requirements. The Bank also has a wide array of retail loan products

including Auto Loans, Loans against marketable securities, Personal Loans and Loans for

Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail

customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association

with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank

launched its credit card business in late 2001. By September 30, 2005, the bank had a total

card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading
players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals

for debit / credit cards acceptance at merchant establishments.

Deposits

I. Savings Account

These accounts are primarily meant to inculcate a sense of saving for the future,

accumulating funds over a period of time. Whatever customer occupation, bank is confident

that customer will find the perfect banking solution.

 Debit-cum-ATM card

 Auto Invest Account

 Internet Banking

 Phone banking

 Anywhere Banking

 Standing Instruction

 Nomination facility

 Doorstep service

II. Special savings account

 Comprehensive banking

 Solution with added features

 Supplementary savings

 Ideal for tax-exempt entities

 Internet banking

 Anywhere banking

 Doorstep service

 Inward remittance

III. Senior Citizen Services

  Higher interest rates

 Special demand loans against deposit

 Free collection of outstation cheques drawn on our locations.

 Debit-cum-ATM-card

 Auto Invest Account

 Internet banking

 Phone banking

 Anywhere banking

 Standing instructions

 Nomination facility

IV. Fixed deposits

 Wide range of tenures

 Choice of investment plans

 Partial withdrawal permitted

 Safe custody of fixed deposit receipts

 Auto renewal possible

 Loan facility available

V. D-Mat accounts

 Free trading account

 Online buying and selling of shares

 Less documentation

 Can control loss of money

PRIVATIZATION OF INDIAN BANKING

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

process of collaborated financial liberalization had cleared up the Bank’s balance sheet
enabling them to with stand increased competition, global financing, turmoil and even

unprotected industrial slow down. But the cycle of liberalization has run its full course. Now

it is the time for the big structural leap, rationalization, mergers, and privatization. Unless the

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

There are twp areas of competitions which banking industry is facing internationally and

nationally. In the pre-liberalization era, Indian banks could grow in a closed economy but the

banking sector opened up for private competition. It is possible that private banks could

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

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

grapple with the changes of financial deregulation.

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

innovative channels of banking which are being widely used as they result in saving both

time and money which are two essential things that every one is short of and is running to

catch hold of them. Moreover private sector banks are aligning its infrastructures, marketing

quality and technology to build deep commitment in building consumer and retail banking.

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

STRUCTURE OF BANKING SYSTEM

Different countries of the world have different types of banking systems. However,

commercial banking had grown under all these banking systems. To understand the structure

of banking system, let us take up various types of banking systems one by one. These types

are:

(1) UNIT BANKING

Unit Banking originated in the United State of America. It grew in the United States of

America. As a counter part of independent or industrial units.

“An independent unit bank is a corporation that operates one office and that is not related to

other banks through either ownership or control.

Shaper, Solomon and White.

Thus under unit banking, a single bank is a complete organization in itself having its own

management. The scale of operation is small and the area is restricted to a locality only. Unit

banking is localized banking and is much more responsive to the needs of the locality. It has

better understanding of the local problems and conditions, which helps it to cater to the needs

of the area in a better way. The staff of the unit bank is generally local and is in a better

position to determine the standing or desirability of the customers. The failure of the unit

bank will not endanger the banking system and economy. It is free from the difficulties and

diseconomies of large scale operations. It will not drain out the financial resources of villages

and small towns to big industrial centers and will ensure a balanced growth.

(2) BRANCH BANKING:

Economic and Managerial problems faced by the unit banks let to the emergence of banking

system. Now, This the most popular and important banking system. In branch banking, a

bank has a large network of branches scattered all over the country. Branch banking

developed in England. Subsequently most of the countries of the world adopted the system.

In terms of branches, the State Bank of India has emerged as one of the largest banks in the

world.

As under the system the resources of a number of branches get pooled under the same

management, any individual branch is in a better position to face excessive withdrawals by

the customers. It facilitates diversification of activities because the area covered by the

branches is generally widespread. Under the system branches can operate without keeping

large idle cash reserves. It becomes possible for the bank to hire the services of competent

and professionally qualified managers, capable of understanding the handling technical

problems and complex situations. The cost of remitting or transferring funds from one place

to another works out to be less. The staff stays at a branch only for a limited period, so the

chances of objective decision making in the branch banking are high.

Branch Banking tends to bring homogeneity in the prevailing Interest Rates as it increases the

mobility of resources from one place to another. It is easier for the Central Bank to exercise

Control. It will communicate only with a few Registered /Head Offices of the Banks and not

with each individual branch. In this system there more safety and liquidity of funds. The

choice of securities and investments is larger. Branch banking makes complete banking

services available to the smallest communities. The branches in small localities can be

initially operated at loss in expectation of future gains.

The comparative study of unit banking and branch banking is a case of small scale banking

versus large scale banking. It is evident that the scale is clearly titled towards branch banking.

With the growth of large scale business it is no wonder that the trend is almost every country

towards the branch banking i.e. big banks with a network of branches all over the country.

Even in the U.S.A. The birthplace of unit banking. The Bank of America has now more than

500 branches in the state of California itself.

(3) CHAIN BANKING :

Shaper, Solomon and White have defined Chain Banking as

“An arrangements by which two or more banks –each of which retains its identity, capital

and personnel –are brought under common control by any device other than a Holding

Company.”

Under the system there is pooling of resources. Chain banking overcomes certain limitations

of unit banking. But the system suffers from certain limitations of its own. There may be a

lack of co-ordination, proper control etc. The system is inflexible.

(4) GROUP BANKING :

It is similar to Chain Banking, the difference being that under Group Banking two or more

banks are brought under the control of the same management through a Holding Company.

Both the systems aim at gaining the advantages of large scale operations. The banks are able

to pool their resources in case of emergency or when large amount of cash is required to meet

the loan requirements of the customer. The advantages and disadvantages of both the systems

are similar. Both the systems developed in the United State of America as a result of attempts

to overcome the difficulties or limitations of unit banking.

(5) CORRESPONDENT BANKING:

Under Correspondent banking, small banks serving local communities hold deposits with

joint banks serving in big cities. This kind of banking is prevalent in U.S.A. The

correspondent banks perform two important services of outstation cheque clearing and loan

participation for the respondent banks while they benefit for the deposit funds of respondent

banks.
 RESEARCH METHODOLOGY

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research problem.

It may be understood as a science of studying how research is do not scientifically. In it we

study various steps that are generally adopted by researchers in studying their research

problem. It is necessary for researchers to know not only know research method techniques

but also technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step

determines the native of the last step to be undertaken. Why a research has been defined,

what data has been collected and what a particular methods have been adopted and a host of

similar other questions are usually answered when we talk of research methodology

concerning a research problem or study. The project is a study where focus is on the

following points:

METHODS OF DATA COLLECTION:

PRIMARY DATA:

Survey method -- This method was adopted because it helped in securing detail information

from a sample of respondents. The information received from the respondents is recorded on

a form called the questionnaire. This is only method to measure attitude & motivation

directly

SECONDARY DATA:

I have also used the secondary data, which included the written document of the organization

& other places.

 INTERNET
  PAPERS & RECORDS

The data collected from the above mentioned sources helped me in getting information about

the brief history of organization.

SAMPLE PLAN

Descriptive Research- The research design is descriptive in nature. This research is mainly

focused on cutomer preference towards public & privet sector bank.

Universe of the Study- Bareilly city U.P.

1 Sample Size Sample size is the number of elements to be included in a study. Keeping in

mind all the constraints 100 respondents have been selected.

2 Sampling Technique- Simple Random Sampling

3 Tools Of Presentation And Analysis- Pie Chart , Bar chart.

Data analysis and interpretation
1. Gender

Interpretation : As per table and graph there are 80% male respondents and 20% are female

respondents
2. Whai is your age

Interpretation: As per table and graph there are 10.67% respondents are from the age group

of below 18, 65.33% respondents arefrom 18-25yrs, 10.67% respondents are from 25-35 yr

and 13.33% are from 35 and above year.

3. Profession
Interpretation: As per table and graph there are 64% respondents are student, 4%

respondents are farmer, 18.67% respondents are employees of different organization and

6.67% respondents are business man and 6.67% people belongs to other profession.
4. Which Sector bank do you have your account?

Interpretation: As per table and graph there are 48% respondents have account in public

sector bank , 29.33% respondents says private bank and 26.67% respondents have account in

both banks.
5. In which bank do you have your Account?
Interpretation: As per table and graph there are 21.33% respondents have account in state

bank of india, 8% respondents says Punjab national bank ,12% says HDFC and 12%

respondents says ICICI and 46.67% have accounts in different banks.

6. Which type of account do you have in the bank?

Interpretation: As per table and graph there are 78.67% respondents have saving account,

6.67% respondents says current account, 2.67% respondents says demat account, 1.33%

respondents have FD account and 10.67% respondents have Salary account .

7. Rank the selection criteria for opening account with bank?

Interpretation: As per table and graph there are 18.67% respondents are in favor of brand

image of bank, 58.67% respondents says Services , 16% respondents says location is most

important criteria for opening account with bank and 6.67% respondents says charges.
8. Kindly rank the reasons for yours preference in this particular bank?

Interpretation: As per table and graph there are 46.67% respondents prefer bank for quick

and fast service, 17.33% respondents says location wise , 18.67% respondents says behavior

of bank employees and 17.33% respondents are in favor of reliability.

9. Which facilities are you availing at your bank?
Interpretation: As per table and graph there are 54.67% respondents availing facility of

ATM/Debit card , 5.33% respondents says Credit Card, 4% respondents says Insurance and

26.67% respondents says Mobile Banking and 6.67% people use other facilities of bank

10. How often do you use debit card to shop?

Interpretation: As per table and graph there are 57.33% respondents use debit card for

shopping occasionally and 9.33% respondents Never use debit card for shopping and 33.33%

people use every time debit card to shop

11. How much Satisfied are you with your bank’s overall performance?

Interpretation: As per table and graph there are 32% respondents rank their bank as per

performance Excellent , 48% respondents says good and 20% respondents says average.
12. If an option is given to you, would you like to shift from the present Bank?

Interpretation: As per table and graph there are 24% respondents want to switch their bank

and 44% respondents says no to the statement and 32 % people may shift to another banks.
 FINDINGS

1. Found that 48% respondents have account in public sector bank , 29.33%

respondents says private bank and 22.67% respondents have account in both banks

2. Found that 21.33% respondents have account in state bank of india, 8% respondents

says Punjab national bank , 12%respondents says HDFC and 12% respondents says

ICICI and 46.67% people have accounts in other bank.

3. Found that 78.67% respondents have saving account, 6.67% respondents says

current account, 2.67% respondents says demat account, 1.33% respondents have FD

account and 10.67% respondents have Salary account .

4. Found that 18.67% respondents are in favor of brand image of bank, 58.67%

respondents says Services , 16% respondents says location is most important criteria

for opening account with bank and 6.67% respondents says charges.

5. Found that 46.67% respondents prefer bank for quick and fast service, 17.33%

respondents says location wise , 18.67% respondents says behavior of bank

employees and 17.33 % respondents are in favor of reliability.

6. Found that 54.67% respondents availing facility of ATM/Debit card , 5.33%

respondents says Credit Card, 4% respondents says Insurance and 26.67%

respondents says Mobile Banking and 6.67% respondents use other facilities of bank.

7. Found that 57.33% respondents use debit card for shopping occasionally and 9.33%

respondents Never use debit card for shopping and 33.33% use debit card Everytime

for shopping.

8. Found that 32% respondents rank their bank as per performance Excellent , 20%

respondents says average and 48% respondents says good.

9. Found that 24% respondents want to switch their bank and 44% respondents says no

to the statement and 32% respondents may shift to other bank if option is given to

them.
 SUGGESTIONS

For Public Sector Banks:

 Bank staff should be customer friendly and highly motivated to serve the

normal customer.

 As far as possible, banks should reduce its documentation process while

providing loans.

 Computerization should be done in banks at all level and the operators

should de properly trained.

 Token system should be induced so as to minimize the waiting lines in the

banks.

 Proper ambience in the banks can develop a healthy working culture.

 Quick services should be provided.

For Private sector Banks

 24 hours banking should be induced so as to facilitate the customers who

may not have free time in the day time. It will help in facing the competition

more effectively.

 More ATM coverage should be provided for the convenience of the

customers.

 Customer care services should be provided by banks.

 CONCLUSION

The customers now days are not only exposed of what type of service is being provided by

banks in India but in the world as a whole. They expect much more than what is actually

being provided. So the new coming banking sector has to provide and cater to all the needs of

the customers otherwise it is difficult to survive in the competition coming up.

They not only expect the safety of money but also best ways to invest that money which need

needs to be fulfilled. Banks need to have a better outlook towards to actually what customers

are requiring. Entries of the private sector banks have made the competition tougher. If a

bank is not functioning properly it is being closed. So it is difficult to face these types of

conditions. Here a simple philosophy can work that customers are God and we need to follow

this to survive and serve better.

The banking sector is poised for explosive growth. In this, scenario, it is imperative that

banks adopt technology at an aggressive Pace, if they wish to remain competitive. Mani

Mamallan makes a case for banks to outsource their technology infrastructure requirement,

thus enabling early adoption and increased efficiencies.

In the prevailing scenario, a number of banks have adopt a new deployment strategy of

infrastructure outsourcing, to lower the cost of service channels. As a result, other banks too

will need to align their reinvented business models. The required changes at both the business

and technology levels are enormous. In a highly competitive banking markets, early adopters

are profiting from increased efficiencies.

 QUESTIONNAIRE

1. Name

2. Email I'd

3. Contact details

4. Gender

Male

Female

5. Age

Below 18

18-25 yrs

25-35 yrs

35 and above

6. Profession

Student

Farmer

Employee

Business men

Other

7. Which Sector bank do you have your account?

Public

Private

Both

8. In which bank do you have your Account?

State bank of india

Punjab national bank

 HDFC

ICICI

Other

9. Which type of account do you have in the bank?

Saving

Current

Demat

F.D

Salary

10. Rank the selection criteria for opening account with bank?

Brand Image

Services

Location

Charges

11. Kindly rank the reasons for yours preference in this particular bank?

Quick and fast services

Location

Friendly Behavior

Reliability

12. Which facilities are you availing at your bank?

Atm/Debit card

Credit card

Insurance

Mobile Banking

Other
13. How often do you use debit card to shop?

Everytime

Occasionally

Never

14. How much Satisfied are you with your bank’s overall performance ?

Excellent

Very Good

Good

15. If an option is given to you, would you like to shift from the present Bank?

Yes

No
 BIBLIOGRAPHY

BOOKS:

 Kothari C.R. (1990) Research Methodology: Method and Techniques; Wishva

Prakashan, New Delhi.

 Bodie.Z, Kane.A & Mracus.J : Essentials of Investments.

 Prof. E Gordon & Dr. K. Natrajan “Banking Theory Law and Practice”.

 “Indian financial System & Commercial Banking” by Khan Masood Ahmed

 “Banking in India” by P.N.Varshney

WEBSITES:

 www.centurionbop.co.in

 www.pnbindia.com

 www.statebankofindia.com

 www.icicibank.com

 www.rbi.org.in

 www.iba.org.in

 www.knowledgestom.com

 www.igniter.com

BROACHERS & PAMPHLETS

 Broachers and pamphlets of Saving A/c