'Comparison of Public and Private Banks\r'

'A â€Å"SUMMER TRAINING” PROJECT newspaper publisher ON COMPARATIVE think over mingled with backst grow empyrean BANKS ANP iiday SECTOR BANKS Submitted To: PUNJAB TECHNICAL UNIVERSITY,JALANDHAR attain OF BUSINESS ADMINISTRATION(MBA) SESSION(2007-09) CT INSTITUTE OF ENGINEERING,MANAGEMENT & TECHNOLOGY,JALANDHAR (SHAHPUR CHAMPUS) PREFACE single(a) has rightly verbalise that pr maskical experience is for fo chthonian and closer to the substantial human cosmos then classic theoretical exposure.The practical experience military function the students affect the real world closely, which in turn wide-eyedly influences their perceptions and job their perceptiveness of the real situation. explore devise constitutes the spur of each trouble education programme. A management student has to do look into pass water instead frequently during his entire span. The spendigate work gentle â€Å"COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS AND PUB LIC SECTOR BANKS” aims to analyze non-homogeneous hunt d fit admitd by secluded empyrean dopets and man ara believes for this purpose Pathankot metropolis cast off been chosen.ACKNOWLEDGEMENT I tint immense pleasure to grant up the recognize of my spend educate catch work non all(pre nominal phrase) to single(a) heterogeneous(prenominal) effort of all those who b conditi nonpareilr(a)ation with it. I want to thanks to all those individual who guided me to move on the track. The summer training project authorise â€Å"COMPARATIVE STUDY BETWEEN PRIVATE SECTOR AND PUBLIC SECTOR BANKS” I am g identifyfully indebted to Mr. Davinder Singh for providing me all the obligatory help and requisite guideline for the completion of my project and equiva changely for the valuable duration that he gave me from his scdedule. Neha Kapoor hedge OF CONTENTS |CHAPTER NO. PARTICULARS |PAGE NO. | | 1 |INTRODUCTION OF THE STUDY | 1-23 | | 2 |OBJECTIVES OF TH E STUDY | 24-25 | | 3 | 3. 1 RESEARCH method actingology | 26-36 | | | | | | |3. LIMITATIONS OF THE STUDY | | | | |37 | | 4 |DATA ANALYSIS AND ITS INTERPRETATION | 38-46 | | 5 |FINDING OF THE STUDY | 47-50 | | 6 |SUGGESTIONS 51-54 | | 7 | culmination | 55-56 | | 8 |BIBLIOGRAPHY | 57-58 | | 9 |ANNEXURE | 59-62 | Introduction The world of briming has simulated a new dimension at polish off of the 21st century with the advent of tech asserting, on that pointby lending the industry a stamp of universality.In general, depositing may be classified as retail and in bodied swearing. Retail curseing, which is objected to act the fate of individual guests and encourage their nest egg, includes payment of improvement peckerwoods, consumer loans, deferred payment post-horses, checking consider and the c argon. Corpo swan hopeing, on the new(prenominal)(a) hand, caters to the submit of corpo valuate customers c ar bills discounting, opening letters of commen dation, managing cash, and so on metamorphous potpourris took place in the Indian fiscal transcription during the eighties and nineties consequent upon de principle and liberalisation of sparing policies of the g all all overnment.India began shaping up its parsimoniousness and earmarked compulsive plan for economic growth. Consequently, a sea change in m atomic number 53y and hood commercializes took place. Application of selling concept in the deposeing field was introduced to enhance the customer satisfaction the policy of privatization of entrusting function aims at supporting(a) the competition in confideing firmament and introduction of fiscal function. Consequently, overhauls such as Demat, cyberspace lingoing, Portfolio Management, pull ahead believe capital, and so on came into existence to cater to the consumes of public.An writeant order of employment for e precise banker today is great operational talent and customer satisfaction. The mew watchword for the bank is reasonably ambitious: customer delight. The introduction to the marketing concept to banking fields commode be traced back to Ameri mickle silver boxing fellowship Conference of 1958. sparings banks marketing stand be defined as the start out of management activity, which seems to direct the emanate of banking go netability to the customers. The marketing concept basi refery requires that there should be thorough apprehension of customer train and to learn close to market it operates in.Further the market is segmented so as to at a lower placestand the requirement of the customer at a profit to the banks. comment OF BANK The Oxford dictionary defines the shore as, â€Å"An establishment for the clench of m maveny, which it pays out, on a customer’s order. ” check to ashen forefront, â€Å" A hope is defined as an start-off appearance which needs surplus finances from the public, safeguards them, and farms them o pen to the true owner when required and overly lends sums be their true owners to those who atomic number 18 in need of property and tail end take into invoice security. ” margining Company in India has been defined in the coasting Companies act 1949, One which achieves the business of banking which means the accepting, for the purpose of lending or investment of the sets of m unrivalledy from the public, repayable on demand, or former(a)wise and withdraw able be cheque, draft, order or an opposite(prenominal)wise. ” The banking governing clay is an integral sub dodging of the financial system. It re amazes an important duct of collecting small savings form the house transports and lending it to the corporate empyrean. The Indian banking system has booking coast of India (run batted in) as the apex body for all matters relating to the banking system. It is the central edge of India.It is in addition hold out as the hopeer To All Other beachs. EVOL UTION OF Indian BANKING Ancient banking system of India constituted of indigenous bankers. They gull been carrying on their age-old banking operations in incompatible parts of the unpolished at a lower place unlike names. The late age of banking constitutes the unplumbed basis of economic growth. The bound argot is being used since long cartridge clip alone there is no elapse creation regarding its beginning. According to the debatepoint, in good old long clip. Italian money leaders were cognize as â€Å"Banchi” because they unploughed a special type of table to execute their business.IMPORTANCE OF BANKS Today banks nourish be grow a part and parcel of Kotak tills life. in that respect was a while when d intimatelyers of the city alone could enjoy their serve. in a flash banks offer approach to even a common man and their activities preserve to aras hitherto untouched. imprecates cater to the needs of agricultura counts, industrialists, mintrs and to all the opposite sections of the society. In modern age, the banking constitutes the fundamental basis of economic growth. then, they accelerate the economic growth of a atomic number 18a and steer the wheels of the economy towards its goals of â€Å"self reliance in all fields”.It naturally arouses Kotak bank buildings sake in recognizeing frequently round the ‘ shore’ and the various men and the activities connected with it. Indian margining System money boxing in India has its origin as proto(prenominal) as the Vedic consequence. It was believed that transition from money lending to banking must perk up occurred even sooner Manu, The great Hindu Jurist, who has commit a section of his work to deposit build up and laid down pat(p) rules relating to rates of pursuit. During the Mogul period, the indigeneous shoreers vie a very important role in lending money financing unconnected trade and commerce.During the days of eastside India Com pany, it was turn over the authorization houses to carry on the business. â€Å"The General believe of India” was the scratch line to join heavens in the year 1786. The others that followed were the lodge of Hindustan and the Bengal bank. The bank of Hindustan is reported to flummox pass ond cashbox 1906 date the other two failed in the mean season. In the first half of the 19th century the East India Company established three banks: 1. trust of Bengal (1809). 2. stick of Bombay (1840). 3. curse of Madras (1843. These three banks ar as well as known as Presidency jackpotts were independent building blocks and functioned well.These three banks were mingle in 1920 and Imperial Bank of India was established on 27th january1921, which started as mystical piece of knock down compelers banks, aboutly Europeans sh be incorporateers, with the fugitive of time Imperial bank was interpreted over by the newly constituted affirm bank of India act in1955. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab interior(a) 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 fifteenth April, 1980 six more than commercial snobbish banks were also taken over by the regimen. 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 (run batted in) as the apex body from all matters relating to the banking system. It is the â€Å"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. • border of monetary policy. • Exchange ascendancy. • Custodian to foreign agitate and gold reserves. • ontogeny activities. • Research and development in the banking sector. CLASSIFICATION OF BANKS On the basis of Ownership PUBLIC SECTOR BANKS unexclusive sector banks argon those banks that be have by the government. The government owns these banks. In India 20 banks were nationalized in 1969 and 1980 respectively. Social welf atomic number 18 is there of import objective. PRIVATE SECTOR BANKSThese banks atomic number 18 those banks that ar owned and run by orphic sector. An individual has conceal over these banks in proportion to the shargons of the banks held by him. CO-OPERATIVE BANKS These argon those banks that argon jointly run by a group of individuals. Each individual has an equal sh be in these banks. Its sh arholders manage the af cleans of the bank. According to the rectitude SCHED ULED BANK Schedule banks are the banks, which are include in the second muniment of the banking regulation act 1965. According to this schedule bank: 1. mustiness have paid-up capital and reserve of non less than Rsergocalciferol, 000. . Must also satisfy the RBI that its affairs are non conducted in a manner De terminationinate to the interest of its depositors. Schedule banks are sub-divided as:- a) State co-operative banks b) mercenary banks NON-SCHEDULED BANKS zero(prenominal) -schedule banks are the banks, which are non included in the second schedule of the banking regulation act 1965. It means they do non satisfy the conditions lay down by that schedule. These are the banks having paid up capital, less than Rs. 5Lakhs. They are advertise classified as follows:- A. Central Co-operative banks and basal book of facts Societies.B. Commercial banks According to Function COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banks devote loa ns for utterly to business and in the mould pee-pee money. commendation creation is the important function of these banks. FOREIGN BANKS These are those banks that are incorporated by foreign company. They have set up their telles in India. These banks have their head offices in foreign countries. Their principle function is to gear uper quote arrangement or the export and the import of the realm and these banks deals in foreign supervene upon. INDUSTRIAL BANKSIndustrial 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 sales event of their shares, debentures and bonds. They throw away loan to the industries for the purchase of land and mechanismry. AGRICULTURAL BANKS Agricultural banks are those banks that accomplish book of facts to agricultural sector of the economy. SAVING BANKS The principle function of these banks is to collect small savings across the country a nd put them to the productive use. In India department of moorage office functions a savings banks. CENTRAL BANKCentral Bank is the apex bank of the banking system of the country. It issues currency notes and acts a bankers bank. Economic stability is the principle function of this bank. In trivial, 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 a great deal of the last decade the process of collaborated financial slackening had cleared up the Bank’s equilibrium sheet enabling them to with stand emergenced competition, world(a) financing, turmoil and even unprotected industrial wispy 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 constrict these fundamental changes, their profit testament stay benea th 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 unappealing economy but the banking sector opened up for private competition. It is possible that private banks could become preponderant players even within India.It has been recorded a speedy rise of the new private sector banks and it has bring in the transformation of the public sector banks as they carry off with the changes of financial deregulation. Use of standard pressure wits, lucre Banking, name Banking, liquid Banking are the new innovative bring of banking which are being widely used as they turn up in saving both time and money which are two essential things that both one is short of and is running to catch hold of them. moreover private sector banks are reorient its infrastructures, marketing quality and technology to build sound commitment in building consumer and retail banking. The main focus of these banks is on innovative range of operate 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 encounter 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 fall in State of America. It grew in the get together States of America. As a counter part of independent or industrial units. An independent unit bank is a great deal 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 boldness in itself having its own management. The exceed of operation is small and the area is cut back to a locality just now. Unit banking is localized banking and is much(prenominal) more responsive to the needs of the locality. It has break dance understanding of the local problems and conditions, which helps it to cater to the needs of the area in a break up substance.The staff of the unit bank is generally local and is in a separate positioning to determine the standing or zing of the customers. The failure of the unit bank allow for not endanger the banking system and economy. It is allow from the difficulties and diseconomies of epic exfoliation operations. It go away not drain out the financial resources of villages and small towns to big industrial centers and will realize a balanced growth. (2) BRANCH BANKING: Economic and managerial problems go about by the unit banks let to the government issue of banking system. Now, This the closely popular and important banking system.In branch banking, a bank has a large network of branches mazed all over the country. Branch banking developed in England. Subsequently most of the countries of the world adoptive the system. In ter ms 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 break position to manifestation excessive withdrawals by the customers. It hurrys variegation of activities because the area covered by the branches is generally widespread. chthonian the system branches asshole operate without keeping large clean cash reserves. It becomes possible for the bank to hire the redevelopments of competent and professional pers solitary(prenominal) qualified managers, capable of understanding the handling technical problems and complex situations. The cost of remitting or transferring funds from one place to other works out to be less. The staff stays at a branch only for a expressage period, so the chances of objective decision making in the branch banking are high. Branch Banking tends to bring homogeneity in the prevailing Inter est Rates as it increases the mobility of resources from one place to another.It is easier for the Central Bank to employment Control. It will communicate only with a roughly Registered /Head Offices of the Banks and not with each individual branch. In this system there more safety and liquidness of funds. The choice of securities and investments is larger. Branch banking makes complete banking function addressable to the smallest communities. The branches in small localities layabout be initially operated at loss in expressation of in attack gains. The comparative ask of unit banking and branch banking is a exercise 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 â€Å"An arrangements by which two or more banks â€each of which retains its identity, capital and personnel â€are brought under common control by any device other than a Holding Company. ” Under the system there is pooling of resources.Chain banking overcomes sealed 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 collection 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 join of cash is required to cope with 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 benevolent of banking is prevalent in U. S. A. The correspondent banks perform two important services of outstation cheque glade and loan participation for the respondent banks patch they proceeds for the deposit funds of respondent banks.A) COMMERCIAL BANKS [pic] indigenous FUNCTIONS : 1) Accepting of lodges : A bank accepts deposits from the public. pile can deposit their cash balances in either of the quest banknotes to their whatchamacallit:- a. Fixed or Time dethronement tarradiddle : Cash is deposited in this theme for a obdurate period. The depositor gets receipts for the marrow deposited. It is called Fixed Deposit Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of interest and the period of deposit. This receipt is not transferable.If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same by and by stipendiary the discount to the bank. b. savings Account : This type of deposit suits to those who just want to keep their small savings in a bank and might need to withdraw them occasionally. Banks provide a certain rate of interest on the minimum balance kept by the depositor during the month. c. authorized Account : This type of notice is kept by the businessman who are required to withdraw money every new and then. Banks do not pay any interest on this bank bill.Any sum or any number of withdrawals can be presented by such an flyer holder. 2) locomote of Loans : The bank advances money in any one of the following ways. a. Overdraft Facilities : Customers of good trading are allowed to overdraw from their current account. But they have to pay interest on extra amount they have withdrawn. Overdrafts are allowed to provide temporary accommodation since the extra amount withdrawn is payable within a short period. b. Money at Call : It is the money lent for a very short period vary from 1 to 14 days.Such advances are usually do to other banks and financial institutions only. Money at call ensures liquidity. In the Interbank market it alters bank to make registration according to their liquidity requirements. c. Loans : Loans are granted by the banks on securities which can be easily habituated off in the market. When the bank has satisfied itself regarding the sapience of the party, a loan is advanced. d. Cash impute : The debtor is allowed to withdraw a certain amount on a addicted security. The debtor withdraws the amount within this limit, interest is charged by the bank on the amount rattling withdrawn. . Disc ounting Bill of Exchange : It is another method of making advances by the banks. Under this method, bank compensate advance to their clients on the basis of their bills of tack before the maturity of such bills. f. Investment in political relation Securities : Purchasing of government securities by the banks tantamount(predicate) to advancing loans by them to the Government. Banks pick to buy government securities as these are considered to be the safest investment. For example : Indira Vikas Patra : It enables the banks to meet requirement of statutory liquidity ratio (SLR) ) mention Creation :One of the main functions of banks these days is to create assent. Banks create consultation by giving more loans than their cash reserves. Banks are able to create credit because the demand deposits i. e. a claim against the bank is current by the public in settlement of their debts. In this process the bank creates money. For this reason Prof. Sayers has called bank â€Å"the manu factures of money. ” 4) take out system of Payment of pecuniary resource A cheque, a negotiable instrument, which in fact is a bill of exchange, drawn upon a banker, is the most popular credit instrument used by the client to make payments.Cheque system is the main credit instrument in the banking world. Although a cheque is not a sub judice tender money, the serves as a medium of exchange in a limited way as it is a negotiable instrument. Because of â€Å"clearing houses” and â€Å"clearing” operations of the banks, cheques can be and are used for transferring funds from one centre to another. In the modern days they can also be used for transferring funds from one country to another. SECONDARY FUNCTIONS Besides the in a higher place uncomplicated functions, banks also perform may utility(prenominal) functions such as agency functions, general utility and social functions.A) Agency Functions Banks act as agents to their customers in different ways :- i) C ollection and Payment of Credit and Other Instruments: The Commercial banks collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On behalf of their customers and also make payments of income tax, fees, insurance premium etc. on behalf of the customers. Customers can leave standing instructions with the banker for various casual payments ensuring the regular payments and avoiding the trouble of performing it themselves. ii) Purchase and sale of Securities : The modern ommercial banks also undertake the purchase and sale of various securities like shares, stocks, bonds units and debentures etc. On behalf of the customers, banks do not give any advice regarding the suitability or other of a security but solely perform the functions of a broker. iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their customers on their advice. Sometimes banks also undertake income tax services on behalf of the customers. iv) Remittance of Funds : The Commercial banks remit funds on behalf of clients from one place to another through cheques, drafts, mail transfers etc. ) Representation and Correspondence : Sometimes commercial banks acts as representatives or correspondents of the clients especially in handling various applications. For instance, passports and travel tickets, booking of vehicles, plots etc. vi) Billion business : In more countries, the commercial banks trade is billions like gold and silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and Allahabad Bank have been allowed import of gold which has been put under open general licensed category. vii) Purchase and deal of outside Exchange : Banks buy and sell foreign exchange, promoting international trade.This function is mainly discharged by foreign Exchange Banks. viii) Letter of References : Banks also give information about economic position of their customers to domesticated and foreign traders and vice versa. B) GENERAL UTILITY operate In addition to agency services, banks render many more utility services to the public. These services are :- i) Locker Facilities : Banks provide locker facilities to their customers. People can keep their valuables or important documents in these lockers. Their one-year rent is very nominal. ii) performing as a referee : It desired by the customers, the bank can be a referee i. . who could be referred by the third parties for seeking information regarding the financial position of the customers. The bank will acts as referee only and only if it is desired by the customer, otherwise the secrecy of a customers is account is maintained very carefully. iii) issue letters of credit : Bankers in a way by issuing letters of credit demo the credit worthiness of the customers. Letters of credit are very popular in foreign trade. iv) Acting as Underwriters : Banks also underwrite the securities issued by the Government and Corporate bodies for a commission.The name of ba nk as an underwriter encouraged investors to have faith in the security. v) Acting as information banks : Commercial banks also acts as â€Å"information” bureau as they collect the financial, economic and statistical data relating to industry, trade and commerce. HDFC Bank is providing information relating to NRI Schemes and commentaries of experts on development in the areas of finance through Internet. vi) Issuing Traveler’s cheques and credit cards : Banks have been rendering great service by issuing traveler’s cheques, which enable a person to travel without fear of thievery or loss of money.Now, some(prenominal) banks have started credit card system under which a credit card holder is allowed to avail credit from the listed outlets without any additional cost or effort. Thus, credit card holder need not carry or handle cash all the time. Now, international credit cards are joining hands with Indian Banks. vii) Issuing of leave cheques: Certain banks issu e apply cheques of various denominations, e. g. Some Indian banks issue gift cheques f the denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge. viii) Dealing in Foreign Exchange: Major branches of commercial banks also transact business of foreign exchange.Commercial banks are the main authorised dealers of foreign exchange in India. ix) Merchant banking go: Commercial banks also render merchant banking services to the customers. They help in availing loans from non-banking financial institutions. x) Help in Transportation of trues: Big businessmen or industrialists after consigning goods to their retailers send the Railway Receipt (Consignment Note) to the bank. List of globe area Banks o State Bank of Bikaner & Jaipur o State Bank of Hyderabad o State Bank of Indore o State Bank of Mysore o State Bank of Saurastra State Bank of Travancore Other Nationalised banks are: • Allahabad Bank • Andhra Bank • Bank of Baroda â₠¬Â¢ Bank of India • Bank of Maharastra • Canara Bank • Central Bank of India • Corporation Bank • Dena Bank • Indian Bank • Indian oversea Bank • Oriental Bank of Commerce • Punjab & Sind Bank • Punjab National Bank • Syndicate Bank • UCO Bank • Union Bank of India • United Bank of India • Vijaya Bank List of hidden Sector Bank • Bank of Punjab • Bank of Rajasthan • Catholic Syrian Bank • Centurion Bank • City Union Bank • Dhanalakshmi Bank • Development Credit Bank • Federal Bank • HDFC Bank ICICI Bank • IDBI Bank • IndusInd Bank • ING Vysya Bank • Jammu & Kashmir Bank • Karnataka Bank • Karur Vysya Bank • Laxmi Vilas Bank • South Indian Bank • United Western Bank • UTI Bank List of Foreign Banks in India • ABN-AMRO Bank • Abu Dhabi Commercial Bank • Ba nk of Ceylon • BNP Paribas Bank • Citi Bank • chinaware Trust Commercial Bank • Deutsche Bank • HSBC • JPMorgan cut through Bank • Standard Chartered Bank • Scotia Bank • Taib Bank Upcoming Foreign Banks In India [pic] |[pic] | By 2009 few more names is dismission to be added in the list of foreign banks in India.This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the worlds best private bank by Euro Money magazine, Switzerlands UBS. The following are the list of foreign banks going to set up business in India • Royal Bank of Scotland • Switzerlands UBS • US-based GE peachy • Credit Suisse Group • Industrial and Commercial Bank of China Merrill Lynch is having a joint meditation in Indian investment banking space — DSP Merrill Lynch. Goldman Sachs holds bet in Kotak Mahindra arms.GE Capital is also having a wide presence in consumer finance through GE Capital India. Indias GDP is seen growing at a robust pace of around 7% over the next few years, throwing up opportunities for the banking sector to profit from. The credit of banks has risen by over 25% in 2004-05 and the growth momentum is expected to continue over the next four to five years. meshing in the growth curve of the Indian economy in the next four years will provide foreign banks a launch grace for greater business expansion when they get more freedom after April 2009. Objectives of the StudyThis view has been conducted with a phase of important objectives in mind. The following provides us with the mind objectives that have tried to achieve through the study. The goal to which these objectives have been met could judged from the conclusions and suggestions, which appear in the later of this study. The read/write head Objectives of this study are: 1. To fall upon the bank sector that is larg ely availed by the customer. 2. To study the factors the factors influencing the choice of a bank for 3. availing services. 4. To note and oppose the satisfaction take of customers in public sector 5. s well as in private sectors bank. 6. To study the problem faced by customer. 7. To get suggestions for improvement or change in the services of public and private sector banks. 8. To study what do great deal expect in the new era of banking. RESEARCH METHODOLOGY Research is an art of scientific investigation. In other word research is a scientific and domineering search for pertinent information on a specific topic. The logic behind taking research methodology into attachment is that one can have knowledge about the method and social occasion adopted for achievement of objectives of the project.With the adoption of this others can evaluate the results also. Its main aim is to keep the researchers on the right track. The methodology adopted for studying the objectives was regar ding the saving account holders of District Jalandhar. So keeping in view the nature of requirements of the study to collect all the applicable information regarding the comparison of saving account of Centurion Bank of Punjab with other banks, direct personal interview method with structured questionnaire was adopted for the collection of uncreated data. unoriginal data has been compile through the various magazines and newspapers and by surfing on Internet.And the guide in the organization was consulted at many times. SAMPLE DESIGN:-A take in design is a definite plan for obtaining a strain from a given commonwealth. It refers to the techniques or the procedure the researcher would adopt in selecting items for the specimen. Sample design may as well lay down the number of items to be included in the sample i. e. , the size of the sample. Sample design is determined before data are calm. Here we select the commonwealth as sample in our sample design. The selected respond ents should be as representatives of the total population.POPULATION:- The persons holding saving account related to business class of District Jalandhar were taken into consideration. DATA COLLECTION Data was collected by employ main two methods i. e primary data and unessential data. PRIMARY DATA Primary data is the data which is used or collected for first time and it is not used by anyone in the past. There are number of sources of primary data from which the information can be collected. We direct the following resources for our research. QUESTIONNAIRE:-This method of data collection is kind of popular, particular in case of big enquiries.Here in our research we set 15 simple questions and beseech the respondents to answer these questions with correct information. RESPONDENTS:-answerers helps in creation of more accurate idea about our research. We personally meet the respondents inside and outside the banks. SECONDARY DATA subsidiary data is the data which is available in ready do form and which is already used by masses for some purposes. There may be various sources of secondary data such as-newspapers, magazines, journals, books, reports, documents and other published information.BANKS yearly REPORTS:-Banks issues there annual reports to get the citizenry conscious with the profitability and growth of the bank. These annual reports helps us a lot to get the in vogue(p) data and other related information for our research. It tells us about the increase or decrease in profits and other facilities. JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS :- We also take into consideration the journals and publications issued by the bank at different times. we comes to know about the Branches, atmospheric state, postures and other useful information.MANUALS AND BROACHERS OF DIFFERENT BANKS:-We take the help of bank staff and other people who gives us deep information and data which may not be available at anywhere. They gives us there full co-operation. I NTERNET:-We also take into consideration the internet facility with which we collect lot of latest information. SAMPLE PLAN : ? SAMPLE SIZE: charge in mind all the constraints the size of the sample of the study was selected as 80. ? SAMPLING UNIT:- Centurion Bank of Punjab Branch in Jalandhar city. Due to nature of study, we also visited various different banks ICICI, HDFC, SBI, PUNJAB NATIONAL BANK etc. f Jalandhar District. ? SAMPLING TECHNIQUE:- Stratified well-provided sampling. All the saving account holders were taken into consideration. Research was conducted on clear assumptions that the respondents would give f roll and fair answers in a pragmatic way and without any bias. ? SAMPLING DESCRIPTION:- In order to understand the nature and characteristics of various respondents in this study, the information was collected and analyzed according to their socio economic background which included the characteristic of their respondents like education, age marital side and month ly income.This description shows that respondents included in this subject field belong to different backgrounds and this turn increase the backdrop of the study. PERSONAL DETAIL AGE |Particulars |%age of responsive | |20-30 years |20% | |30-40 years |50% | |40-50 years 20% | |50-60 years |10% | [pic] digest & edition: From the above study we find that nobody is to a lower place 20 age and 20% respondents are mingled with 20-30 age group, 50% respondents are amongst 30-40 age group, 20% respondents is between 40-50 age group and 10% respondents are between 50-60 age group. SEX Particulars |No of Respondent |%age | |Male |70 |70% | |Fe phallic |30 |30% | |Total | cytosine | carbon% |Analysis: From the above result we come to know that out of light speed, 62 respondents are male and 38 are female which is 62% and 38% are respectively. definition: From the above data we cease that most of our respondents are male. MARITAL STATUS Particulars |No of Respondent |%a ge | |Married |33 |33% | |Un hook up with |67 |67% | |Total |100 100% | [pic] Analysis: From the above study we find that out of 100%, 33% respondents are married and 67% respondents are unmarried. Interpretation: Most of the respondents of our survey are Unmarried. Q4: HIGHEST EDUCATIONAL QUALIFICATION:- Particulars |No of Respondent |% age | | matriculation |4 |4% | | aged Secondary |14 |14% | |Graduate |46 |46% | |Post refine | 36 |36% | | Total |100 |100% | [pic] Analysis: This compendium shows that out of 100 respondent, 46% respondents are graduate & professional, 36% respondents are post graduate, 14% respondents are senior secondary and 2% respondents are of Matric category. All the respondents of our survey are qualified. Interpretation: From the above data we bring to an end that most of our respondents are Graduates & professional degree holders.OCCUPATION |Particulars |No of Respondent |%age of respondents | |man of affairs | 32 |32% | | Government Employe e | 28 |28% | | Student | 24 |24% | | Others |16 |16% |Analysis: From the above analysis it is clear that 32% respondents are doing their own business, 28% are employees and 16% respondents belong to other category And 24% of our respondents are students. Most of the respondents of our survey are Businessmen. Interpretation: From the preceding(prenominal) data we conclude that most of our survey respondents are businessmen. DATA COLLECTION: Data was collected using two main methods: COLLECTION OF DATA LIMITATIONS OF THE STUDY Due to constraints of time and resources, the study is likely to suffer from certain limitations. Some of these are mentioned here under so that the findings of the study may be tacit in a proper perspective. The limitations of the study are: Some of the respondents of the survey were unwilling to share information. ? The research was carried out in a short period of 6 weeks . Therefore the sample size and other parameters were selected accordingly so as to fi nish the work within the given time frame. ? The information given by the respondents might be biased because some of them might not be interested to give correct information. ? The officials of the bank supported me a lot, but did not have sufficient time to make the points more clear. Analysis of Data collected 1. The respondents were asked about which banking sector’s services do their avail. tabulate1: banking sector’s services which the respondents avail. Banking sector | payoff of respondents | | general |32 | | mysterious |38 | |Both |30 | Graph 1: Banking Sector’s services which the respondents avails INTERTRETATION:-It was appoint that most of the respondents were availing services of private sectors banks while those of the public sector banks were less as compare to public sector 2. The respondents were Asked about the type of account they have in the public sector as well as secret sector banks Table 2. 1 Number of type of account held in worldly concern sectors banks Type of Accounts Name of Account |Savings |Current |Demat |Fixed deposits | stipend | |Total no of respondents |50 |15 |6 |15 |14 | [pic] Graph 2. 1 :- Number of type of accounts held in normal sector banks Analysis: 50% people own Saving Account, 15% own Current account, 6% demat,15% fixed deposits account and 14% salary Account Interpretation: It was found that in case of public sector banks, maximum number of account holders owns Saving Account. After Saving account most prefer account is salary account prefer by people and the next priority goes to fixed deposits Accounts. 3. The basic purpose of this question was to know the most prefer bank. Table 3. Number of respondents preferring different banks name calling of Banks |Number of respondents | |ICICI Bank |24 | |HDFC Bank |22 | |State Bank Group |20 | |Punjab National Bank |28 | |Punjab And Sind Bank |6 | Analysis: From above graph, it is seen that 28% stake of the respondents follows to Punjab National bank followed byICICI bank. It is the bank which provide 12-hour banking. also the ATM machine is more as compared to the other private sector banks. Interpretation : From the above graph, it is seen that Punjab national is the most pet bank as compared to other Public and Private sector Banks. The reason for preference of public sector bank is the minimum amount of deposit for saving account. 4. The aim to ask this question was to know he reasons for their preference in different banks :- Table 4:- Reason for account in different banks Reasons |No of respondents | |Friendly Behaviour of the Staff |16 | | dependability/trust |14 | | degraded and fast services |55 | |Location |15 | Graph 4:-Reasons for account in different banks Inpretation: By analyzing this graph, we can conclude that most of the people is influenced by the rapid and speedy services provided by the bank and location is given less preference than others. 5. The respondents were asked about the facil ities they were availing in public as well as private sector banks :- Table 5. Number of people availing different facilities at public sector banks: |Facilities Availed |No of respondents | |ATM/ calculate card |60 | |Demat |5 | |Internet/Mobile/Phone Banking |15 | |Insurance |20 | [pic]Graph 5. 1: Number of people availing different facilities at public sector banks Interpretation: From the above graph, it was found that was availed by most of the people at public sector banks was that of ATM/ calculate cards which hold 90% of respondents. It is clearly observed by the graph that Insurance are neck to neck holding 20% of respondent each. 6. The purpose of this question is to know the satisfaction direct they were having with their banks overall performance:- Public sector banks Table 6. 1 satisfaction level of the customers regarding the facilities availed from the public sector banks |Level of Satisfaction |No. f respondents |%age | |Excellent |12 |24% | |Good |21 |42% | |Very Good |27 |54% | Graph 6. 1 Satisfaction level of Customers regarding the facilities availed from the public sector banks. Analysis: It was found that in case of public sectors banks, 18% of the respondents were passing satisfied ranked excellent from the products and services availed by them. 44% were just satisfied given very good and 38% have moderate view. Interpretation: People have mixed type of view regarding public sector banks. 7.The respondents were asked that if they have given option, would they like to shift from the present banks:- Table 7 Number of customers ready to shift from present bank. [pic] Graph 7:- Number of customers ready to shift from their present bank or not. Interpretation: From this above Graph, we can conclude that the number of respondents ready to shift from their present bank is 28% while 70% customers seems to be satisfied from their bank and hence willing to shift from their present bank to other. 8. The aim to ask this question was to k now whether the respondents faces any problem regarding the services provided them by their preferred bank :- Table 8 Problem faced by customers. Types of problem |No of respondents | |Time consume |10 | |Introduction |8 | |Reference |15 | |Too many formalities |6 | |No facility of photograph instantly |4 | |No problem |6 | [pic] Interpretation: It was found that most of the respondents are facing problem of reference. Respondents also find that the time and too much formalities also cause problem in banks. FINDINGS OF THE STUDY much number of people have account with private banks. ? Majority of the respondents whether in public sectors or in private sector banks have savings account with banks. ? Number of problem faced by the people is more in public sector banks. ? People want a change in the manner of the staff of the public sector banks. ? People are more satisfied form the private sector banks due to their better services provided by them in terms of speedy transactio ns, fully computerized facilities, more works hours (in case of ICICI bank, the number of working hour are 12), good investment Advisory services, good and co-operative staff, better approach to Customer Relationship Management. In private sector banks proper promotional activities should be taken up so as to make the population aware of the services provided by the banks even in unsophisticated areas. ? The facility that was availed by most of the people at public sector banks was that of ATM/Debit cards. The least availed facility was that of Demat account and foreign transfer of funds. ? The facility that was availed by most of the people at private sector banks was that of Internet/Phone banking by ATM/Debit card. ? Majority of respondents do not want to shift from their present bank. ? From the above study it is clear that private banks are providing better services than nationalized banks. 5% respondents favored that private banks are providing better services than nationali zed banks while 5% respondents are not agree with it. ? From the above study it is clear that bulk of the respondents state that the second-rate balance requirement for in operation(p) their saving account is between 5000-10000. 20% say it is between 10000-20000 and rest 5% said it is between 20000-50000 in private sector banks which as compared to Public sector bank is very high. ? 40% respondents said that the bank employees never pay any tutelage to them and 10% respondents said that their problems are not puzzle out by bank executives. The remaining 50% respondents give a positive reaction in the party favor of bank. 0% respondents favoured that their problems are solved by bank executives and 20% respondents said they are received with grimace by bank executives. So there is a mix response. ? Majority of the respondents said that the average time taken for transactions is between 25 to 50 minutes in their bank. 30% respondents said the average time taken for transaction is between 20-25 minutes, 20% said it is between 10 to 25 min. and remaining 10% said that the average time taken for transaction by their bank is 5 to 10 minutes. ? From the above study is clear that the banks do not prink any customer meets. All the 100% respondents said that their bank does not organize any customers meets to resolve their problems.Customer satisfaction is the demand of time, so the banks should organize customer meets to resolve the problems of their customers. ? From the above study it is clear that majority of the respondents are ready to pay nominal charges for better services provided by private banks while 40% respondents are not ready to pay any nominal charges. ? The above study depicts that 60% respondent said that their bank updates them time to time about the latest facilities and remaining 40% said that their bank doesnt update them. [pic] SUGGESTIONS Based on the study conducted, There are some of the suggestions given by the customers of how the mo dern banking should be.These are the comment given by them about the improvement of the banking sector in India. ? Banks should adjust the RBI norms and provide facilitiesas per the norms, which are not being followed by the banks. While the customer must be given prompt services and the bank police officer should not have any fear on mind to provide the facilities as per RBI norms to the units going sick. ? Banks should increase the rate of saving account ? Banks should provide loan at the lower interest rate and education loans should be given with ease without much documentation. All the banks must provide loans against shares. ? Fair traffic with the customers. More contribution from the employee of the bank.The staff Should be co-operative, well-disposed and must be capable of understanding the problems of customers ? Internet banking facility must be made available in all the banks. ? Prompt dealing with permanent wave customers and speedy transaction without harassing the customers ? Each section of every bank should be computerized even in rural areas also. ? Real time gross settlement can play a very important role. ? More ATM coverage should be provided for the convenience of the customers. ? No limit on cash withdrawls on ATM cards. ? The bank should bring out new schemes at time-to-time so that more people can be attracted. Even some gifts and prizes may be offered to the customers for their retention. 24 hours banking should be induced so as to facilitate the customers who may not have a free time in the daytime. It will help in facing the competition more effectively. ? The charges for saving account opening are high, so they should also be reduced. ? Customers generally complain that full knowledge is not granted to them. Thus the bank should properly wear the features of the product and services to the customers. Moreover approach to door services can also be introduced by bank. ? The need of the customer should properly be silent so tha t customer feels satisfied. The relationship value should be maintained. ? The branch should promote cooperation and coordination among employees which help them in efficient working. Maintenance of proper hierarchy should be done. A good hierarchy set up can ensure better results with in the bank. Banking sector is better by leaps but still it needs to be improved. Proper and efficient relationship staffs having knowledge for one stop banking, customer cordial atmosphere, and better rate of interest are need of the hour. the concept of privatization has overall improved the services in all the banks. dental plate banking will be order of the day. Recommendations 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. â⠂¬Â¢ particular system should be induced so as to minimize the waiting lines in the banks. • Proper ambiance in the banks can develop a hearty 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. CONCLUSIONThe 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 really 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 go far in the competition coming up. They not only expect the safety of money but also best ways to invest that mon ey 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 carrying into action 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 raptorial 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 change magnitude 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. 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 â€Å"Banking Theory Law and hold”. ? â€Å"Indian financial System & Commercial Banking” by Khan Masood Ahmed ? â€Å"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 QUESTIONNAIRE â€Å"comparative degree Study on public and private sector banks” Dear customer, We are the students of C. T. I. E. M. T. Shahpur, Ja landhar. We are undergoing the project entitled named â€Å"Comparative Study on public and Private sector banks” So by filling this questionnaire interest helps us in completing our project. Q1. Which Sector bank do you have your account? Public (Private( Both ( Q2. In which bank do you have your Account? 1. 2. 3. 4. Q3. Which type of account do you have in the bank? Saving ( Current ( Demat ( F. D ( Salary (Q4 In Case you have yours Account in more than one a Bank which one is your most preferred bank (Give only one bank) Q5. Rank the selection criteria for opening account with bank? Brand Image (Services ( Location ( Charges ( Q6. Kindly rank the reasons for yours preference in this particular bank? Quick and fast services (Location ( Friendly Behavior ( reliableness ( Q7. Which facilities are you availing at your bank? Atm/Debit card ( Credit card ( Insurance ( Mobile Banking ( Q8. How often do you use debit card to shop? Occasionally(Never( Q9. How much Satisfied are yo u with your bank’s overall performance ? Excellent(Very Good(Good ( Q10. Any special(prenominal) services you expect from your bank ? Q11. If an option is given to you, would you like to shift from the present Bank? Yes ( No ( Q12. Do you face any problem regarding the services provided by your preferred bank? If Yes Q13. Would you like to give any suggestions for the better functioning of banks in these sectors? Public Sector Private sector 16. Any other suggestions please specify ? ____________________________________________________________ ____________________________________________________________ Thanks for your valuable time given to us .We assure you that the information provided by you will remain confidential. Thanks for your co-operation. PERSONAL DETAILS. NAME-……………………………………………………………………… AGE-…â₠¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦Ã¢â‚¬Â¦ GENDER-………………………………………………………………….. EDUCATION-……………………………………………………………… ADDRESS-…………………………………………………………………. ………………………………………………………………………………. remember NO. -…………… ………………\r\n'