INTRODUCTION

PREFACEI am extremely happy to place before the esteemed teacher BANKING FINANCIAL INSTITUTE IN INDIA. It is an attempt make by me to find out the leading brands in Sagar City.The Project Report has on objective to get the B.B.A. Studetns familiar with real life buisness situations and gives an opportunity to the students to understand the theoretical concepts of marketing and finance in practical way. The research starts with a short introduction of the company followed by the line of the objective and research methodology.Next Chapter Deals with the data analysis and interpretation that is based on questionnaire. Then comes the limitation, suggestions conclusion of the research report. Students name : ANIL PATEL Class :BBA VTH SEM.

ACKNOWLEDGEMENTI Wish to express my deep sense of gratitude to all who generously helped in successful completion of the project work by sharing their valuable time and knowledge. I t thankfully acknowlege Mr. Manish Jain (HOD BBA Dept) GIMS Sagar for giving me the opportunity to conduct and survey. I Would like to express my sincere thanks to MR. MANISH JAIN LecturerBBA Dept) and all other faculty members, GIMS sagar who directly and indirectly rendered me all possible hlep and guidance for preparing the report. Finally I would like to thanks my parents, my friends without whom completion of my project report would not have been possible. Students name : ANIL PATEL Class :BBA VTH SEM.

CERTIFICATE A PROJECT REPORT ON BANKING FINANCIAL INSTITUTE IN INDIA is prepared by ANIL PATEL under The guidance of MR. MANISH JAIN is a satisfactory in respect to comments Contents and presentation of the Subject Matter. Language Submission with in due date.

Signature of Supervisor Signature of Examiner Signature of HOD

DECLARATION BY THE CANDIDATE

Date:

I declare that the project report titled BANKING FINANCIAL INSTITUTE IN INDIA is my own work conducted under the supervision of MR. MANISH JAIN, Gyanveer Institute of Management and Science Sagar. To the best of my knowledge the report does not contain any work, which has been submitted for the award of any degree, anywhere.

Students name : ANIL PATEL Class :BBA VTH SEM.

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TABLE OF CONTENTS Preface Acknowledgement Certificate Declaration by the CandidateTOPIC NAMEPAGE NO.

CHAPTER 1 INTRODUCTION

(A) COMPANY PROFILE

(B) HISTORY

(C) KEY PERSON

CHAPTER 2 OBJECTIVE

CHAPTER 3 RESEARCH METHODOLOGY

(A) TYPE OF RESEARCH

(B) SOURCE OF RESEARCH

CHAPTER 4 HOME LOAN SERVICE

CHAPTER 5 DATA ANALYSIS AND INTERPRETATION

CHAPTER 6 SWOT ANALYSIS

CHAPTER 7 LIMITATION

CHAPTER 8 SUGGESTION AND CONCLUSION

CHAPTER 9 BIBLIOGRAPHY

CHAPTER 1011 QUESTIONNAIRE

IntroductionWhile walking in the streets of any town or city you might have seen some signboards on buildings with names-Canara Bank, Punjab National Bank, State Bank of India, United Commercial Bank, etc. What do these names stand for? Did you ever try to know about them? If you enter any such building you will find some kind of a business office. You will see some employees sitting behind counters dealing with visitors standing in front of them. You will find that some are depositing money at one counter while some are receiving money at another counter. Behind the counters in the office you will see tables and chairs occupied by officers. On one side of the office you will also see a chamber (small partitioned room) where the manager is sitting with papers on his table.This is the office of a Bank.Let us know in detail about banks and their activities.

You know people earn money to meet their day-to-day expenses on food, clothing, education of children, housing, etc. They also need money to meet future expenses on marriage, higher education of children, house building and other social functions. These are heavy expenses, which can be met if some money is saved out of the present income. Saving of money is also necessary for old age and ill health when it may not be possible for people to work and earn their living.

The necessity of saving money was felt by people even in olden days. They used to hoard money in their homes. With this practice, savings were available for use whenever needed, but it also involved the risk of loss by theft, robbery and other accidents. Thus, people were in need of a place where money could be saved safely and would be available when required. Banks are such places where people can deposit their savings with the assurance that they will be able to withdraw money from the deposits whenever required. People who wish to borrow money for business and other purposes can also get loans from the banks at reasonable rate of interest.

Bank is a lawful organization, which accepts deposits that can be withdrawn on demand. It also lends money to individuals and business houses that need it.

Banks also render many other useful services like collection of bills, payment of foreign bills, safe-keeping of jewelery and other valuable items, certifying the credit-worthiness of business, and so on.

Banks accept deposits from the general public as well as from the business community. Any one who saves money for future can deposit his savings in a bank. Businessmen have income from sales out of which they have to make payment for expenses. They can keep their earnings from sales safely deposited in banks to meet their expenses from time to time. Banks give two assurances to the depositors

a. Safety of deposit, andb. Withdrawal of deposit, whenever needed

On deposits, banks give interest, which adds to the original amount of deposit. It is a great incentive to the depositor. It promotes saving habits among the public. On the basis of deposits banks also grant loans and advances to farmers, traders and businessmen for productive purposes.

Thereby banks contribute to the economic development of the country and well being of the people in general. Banks also charge interest on loans. The rate of interest is generally higher than the rate of interest allowed on deposits. Banks also charge fees for the various other services, which they render to the business community and public in general. Interest received on loans and fees charged for services which exceed the interest allowed on deposits are the main sources of income for banks from which they meet their administrative expenses.

The activities carried on by banks are called banking activity. Banking as an activity involves acceptance of deposits and lending or investment of money. It facilitates business activities by providing money and certain services that help in exchange of goods and services. Therefore, banking is an important auxiliary to trade. It not only provides money for the production of goods and services but also facilitates their exchange between the buyer and seller.

You may be aware that there are laws which regulate the banking activities in our country. Depositing money in banks and borrowing from banks are legal transactions. Banks are also under the control of government. Hence they enjoy the trust and confidence of people. Also banks depend a great deal on public confidence. Without public confidence banks cannot survive.

The development of banking in an inevitable precondition for the healthy and rapid development of the national economic structure. Banking institutions have contributed much to the development of the developed countries of the world. Today we cant imagine the business world without banking institutions. Banking is as important as blood in the human body. Due to the development of banking advances are increased and business activities developing so it is rightly said, The development of banking is not only the root but also the result of the development of the business world. After independence, the Indian government also has taken a series of steps to develop the banking sector. Due to considerable efforts of the government, today we have a number of banks such as Reserve Bank of India, State Bank of India, nationalized commercial banks, Industrial Banks and co-operative banks. India Banks contribute a lot to the development of agriculture, and trade and industrial sectors. Even today the banking systems of India possess certain limitations, but one cant doubt its important role in the development of the Indian economy.

Banking sector is the first and most important aspect of the economic-planning of a nation for the faster and speedy development of a nation; well-development and advanced banking sector is the precondition. In the most of developed countries of the world, there is very close relation between the business activities and banks. It is quite difficult to think the business activities without the existence in economy as blood in human body.

Thus, we can say that, there is a noteworthy contribution of banking sector in the development of various fields such as, agriculture, industries business activities, transportation and communication.

ORIGIN OF WORD BANKThe word bank is derived from, the Latin word Bonous or Banca means a bench. A bank refers to the function of accepting deposits, lending, repaying the deposited money of demand and functioning an agent whenever asked for. Now for healthy and rapid development of any national economical structure, the development of banking is an inevitable pre-condition.Some authorities observe that the word bank s originally derived from the German word bank which means a joint stock fund. This word was Italianized into banco by the German when they were the rulers of measure part of Italy. This term was again change into banck by the French; afterwards, the Britishers converted this term into bank which has now been universalized. The term bank or banker is used in almost all countries of the world to denote a financial institution dealing in money.There are different views regarding the origin of the term bank In ancient Greece and Rome the practice of granting credit was widely prevalent. The books of the old Sanskrit law giver, Menu, are full of regulations governing credit. In, past (I) traders (II) ledgers and (III) goldsmiths performed banking activities. Some experts opine that the term, bancus or banque means bench, and the term bank comes from these words. Ancient bankers and lenders used benches in the market place to do their lending business. When a banker failed in his business, the people broke his benches. The term, bankrupt, originated from such events.

DEFINITION OF BANK

A bank is an institution which deals in money. A Bank receives money in the form of deposits from the public, and lends money for the development of trade and commerce. Several economists have defined the term, baking, in various ways. From various definitions some of them as follow:

Banking company is a company, which transects the business of banking in any state of India. Section S (5) of banking company act 1949.

A bank or banker is one who, in the ordinary course of his business, receives money which he repays by honoring the cheques of persons from whom or on whose account he receives it. Hart Pofr.

Bank is an establishment which makes, to individuals, such advances of money as may be required and safely made and to which individuals entrust money which it is not required by them for use. Prof. KenlyBanking means where financial transactions of credit are done and bank means where draft, cheque, or credit paid by order, deposits of money or currency are accepted or assets, bonds, gold, silver, bills of exchange or promissory notes are accepted that kind of persons firms or companies having the place of business. Findlay sheraze

"Banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation)"banking business" means the business of either or both of the following: 1. receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period; 2. paying or collecting cheques drawn by or paid in by customersSince the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques.

TRADITIONAL BANKING ACTIVITIESBanks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM.Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending.Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to

BANKING SYSTEM IN INDIA

In the economic development of a nation banks occupy an important place. Indian money market comprises both organized as well as unorganized sectors. The unorganized sectors include money lenders and indigenous bankers and largely cater to the needs of person living in villages and small towns. Financial institutions in the organized sector have grown significantly. Among the institution in organized sector of the Indian money market commercial banks, Co-operative banks, regional rural banks, development banks etc.

In 1770, first Indian bank known as Bank of Hindustan was started and was closed down twenty years later. Later on, the East India Co. started three presidency banks with government participation. These were: Bank of Calcutta 1806Bank of Bombay 1840Bank of Madras 1843 Other banks such as

Allahbad Bank came into existence in 1865Alliance Bank of simla in 1875.

The first Indian joint stock bank known as Oudh Commercial Bank was setup in 1880 and Punjab National Bank was launched in 1894. There were as many as 648 commercial banks in India by the and of 1947 and as many as 161 banks failed during 1913-14. Thus, there was a great need of an institution to control and regulate banking in the country. As a result, the RBI was setup in 1935 for regulating the banks in the country.

A scheme of social control on banks was enforced through statutory measures with effect from 1-2-1969. The banking industry saw a revolution after 14 major commercial banks were nationalized in June, 1982. More than 90 % of the bank deposits came under the control of the government.

Agricultural Credit Development, Rural Planning and Credit Cell and Agricultural Refinance and Development Corporation were combined together to setup national bank for agriculture and rural development in July, 1982. Later, the Exim Bank and National Housing Bank were setup in 1984 and 1988 respectively.

RECENT HISTORY OF INDIAN BANKINGIndian banking system, over the years has gone through various phases after establishment of Reserve Bank of India in 1935 during the British rule, to function as Central Bank of the country. Earlier to creation of RBI, the central bank functions were being looked after by the Imperial Bank of India. With the 5-year plan having acquired an important place after the independence, the Govt. felt that the private banks may not extend the kind of cooperation in providing credit support, the economy may need. In 1954 the All India Rural Credit Survey Committee submitted its report recommending creation of a strong, integrated, State-sponsored, State-partnered commercial banking institution with an effective machinery of branches spread all over the country. The recommendations of this committee led to establishment of first Public Sector Bank in the name of State Bank of India on July 01, 1955 by acquiring the substantial part of share capital by RBI, of the then Imperial Bank of India. Similarly during 1956-59, as a result of re-organization of princely States, the associate banks came into fold of public sector banking.Another evaluation of the banking in India was undertaken during 1966 as the private banks were still not extending the required support in the form of credit disbursal, more particularly to the unorganized sector. Each leading industrial house in the country at that time was closely associated with the promotion and control of one or more banking companies. The bulk of the deposits collected, were being deployed in organised sectors of industry and trade, while the farmers, small entrepreneurs, transporters , professionals and self-employed had to depend on money lenders who used to exploit them by charging higher interest rates. In February 1966, a Scheme of Social Control was set-up whose main function was to periodically assess the demand for bank credit from various sectors of the economy to determine the priorities for grant of loans and advances so as to ensure optimum and efficient utilization of resources. The scheme however, did not provide any remedy. Though a no. of branches were opened in rural area but the lending activities of the private banks were not oriented towards meeting the credit requirements of the priority/weaker sectors.On July 19, 1969, the Govt. promulgated Banking Companies (Acquisition and Transfer of Undertakings) Ordinance 1969 to acquire 14 bigger commercial bank with paid up capital of Rs.28.50 Cr,deposits of Rs.2629 cr, loans of Rs.1813 cr and with 4134 branches accounting for 80% of advances. Subsequently in 1980, 6 more banks were nationalised which brought 91% of the deposits and 84% of the advances in Public Sector Banking. During December 1969, RBI introduced the Lead Bank Scheme on the recommendations of FK Nariman Committee.Meanwhile, during 1962 Deposit Insurance Corporation wasestablished to provide insurance cover to the depositors.In the post-nationalisation period, there was substantial increase in the no. of branches opened in rural/semi-urban centres bringing down the population per bank branch to 12000 appx. During 1976, RRBs were established (on the recommendations of M. Narasimham Committee report) under the sponsorship and support of public sector banks as the 3rd component of multi-agency credit system for agriculture and rural development. The Service Area Approach was introduced during 1989.While the 1970s and 1980s saw the high growth rate of branch banking net-work, the consolidation phase started in late 80s and more particularly during early 90s, with the submission of report by the Narasimham Committee on Reforms in Financial Services Sector during 1991. In these five decades since independence, banking in India has evolved through four distinct phases:Foundation phase can be considered to cover 1950s and 1960s till the nationalisation of banks in 1969. The focus during this period was to lay the foundation for a sound banking system in the country. As a result the phase witnessed the development of neces sary legislative framework for facilitating re-organisation and consolidation of the banking system, for meeting the requirement of Indian economy. A major development was transformation of Imperial Bank of India into State Bank of India in 1955 and nationalisation of 14 major private banks during 1969. Expansion phase had begun in mid-60s but gained momentum after nationalisation of banks and continued till 1984. A determined effort was made to make banking facilities available to the masses. Branch network of the banks was widened at a very fast pace covering the rural and semi-urban population, which had no access to banking hitherto. Most importantly, credit flows were guided towards the priority sectors. However this weakened the lines of supervision and affected the quality of assets of banks and pressurized their profitability and brought competitive efficiency of the system at a low ebb. Consolidation phase: The phase started in 1985 when a series of policy initiatives were taken by RBI which saw marked slowdown in the branch expansion. Attention was paid to improving house-keeping, customer service, credit management, staff productivity and profitability of banks. Measures were also taken to reduce the structural constraints that obstructed the growth of money market.

Reforms phase The macro-economic crisis faced by the country in 1991 paved the way for extensive financial sector reforms which brought deregulation of interest rates, more competition, technological changes, prudential guidelines on asset classification and income recognition, capital adequacy, autonomy packages etc.

BANK NATIONALISATION & PUBLIC SECTOR BANKINGOrganised banking in India is more than two centuries old. Till 1935 all the banks were in private sector and were set up by individuals and/or industrial houses which collected deposits from individuals and used them for their own purposes. In the absence of any regulatory framework, these private owners of banks were at liberty to use the funds in any manner, they deemed appropriate and resultantly, the bank failures were frequent.Move towards State ownership of banks started with the nationalisation of RBI and passing of Banking Companies Act 1949. On the recommendations of All India Rural Credit Survey Committee, SBI Act was enacted in 1955 and Imperial Bank of India was transferred to SBI. Similarly, the conversion of 8 State-owned banks (State Bank of Bikaner and State Bank of Jaipur were two separate banks earlier and merged) into subsidiaries (now associates) of SBI during 1959 took place. During 1968 the scheme of social control was introduced, which was closely followed by nationalisation of 14 major banks in 1969 and another six in 1980.Keeping in view the objectives of nationalisation, PSBs undertook expansion of reach and services. Resultantly the number of branches increased 7 fold (from 8321 to more than 60000 out of which 58% in rural areas) and no. of people served per branch office came down from 65000 in 1969 to 10000. Much of this expansion has taken place in rural and semi-urban areas. The expansion is significant in terms of geographical distribution. States neglected by private banks before 1969 have a vast network of public sector banks. The PSBs including RRBs, acount for 93% of bank offices and 87% of banking system deposits.

STRUCURE OF BANKING IN INDIA

HEAD LINESSTRUCTURE OF INDIAN BANKINGTypes of BankReserve bank of India (central bank)Foundation of RBIFunction of Reserve Bank of IndiaCommercial banks Public sector banks,Private sector banks Foreign banks.Co-Operative banksPrimary Credit SocietiesCentral Co-operative BanksState Co-operative BanksDevelopment banks

Indian banking system comprises of both organized and unorganized banks. Unorganized banking includes indigenous bankers and village money lenders. Organized banking includes the following,

The main four types are: Reserve bank of India (central bank) Commercial banks Co-Operative banks Development banksOthers are: Exim banks Regional rural banks Land development banks National Bank for Agriculture and Rural Development(NABARD) Industrial Development Bank of India Small Industrial Development Bank of IndiaSTRUCURE OF BANKING IN INDIA

Bank for Agriculture and Rural Development

MISSIONI. World Class Indian BankII. Benchmarking against international standards.III. To build sound customer franchises across distinct businessesIV. Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. HDFC Banks business philosophy is based on four core values such as:-

1. Operational excellence.2. Customer Focus.3. Product leadership.4. People.

The objective of the HDFC Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-step window for all his/her requirements. The HDFC Bank plus and the investment advisory services programs have been designed keeping in mind needs of customers who seeks distinct financial solutions, information and advice on various investment avenues.

OBJECTIVE OF THE STUDY To study how to choose the right housing finance bank. To study how do get loan for construction of residential houses. To discuss housing credit more affordable. To know the some of housing finance schemes. To discuss some tip for buying house. To study of terms and condition of home loan. To find out that how people to construction of houses by attractive EMI systems.

RESEARCH METHODOLOGYAccording to Green and Tall A research design is the specification of the methods and procedures for acquiring the information needed. It is the overall operational pattern or framework of the project that stipulates which information is to be collected, from where it is to be collected and by what proceduresThis research process based on primary data analysis and secondary data analysis will be clearly defined to meet the objectives of the study. I chose the primary sources to get the data. A questionnaire was designed in accordance with our mentor in Banking. I chose a sample of about 45 corporate customers around the Sagar City from which I can get the instant information of whose analysis will give me the desired outcome of my research project. I collected some data from the secondary sources like published Company documents, internet etc.

Research DesignA research design is the arrangement of conditions for collections and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedures. It is a descriptive cross sectional design .It is the conceptual structure with in which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.It is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximal information with minimal expenditure of effort, time and money. In the preliminary stage, my research stage constituted of exploratory study by which it is clear that the existence of the problem is obvious .So, I can directly head for the conclusive research. Sampling PlanSampling plan is a distinct phase of research process. In this stage I have to determine who is to be sampled, how large should be the needed sample and how sampling unit is to be selected.PopulationIn my research, I have defined my population as a complete set of customers of Sagar CitySample SurveyAs compared to census study, a sample study has been conducted by us because of: Wide range of population, it was impossible to cover the whole population Time and money constraints.Sample UnitIn this survey I took the list of customers from the dealers of HDFC in Sagar City.Sampling Technique Sampling technique implies the method of choosing the sample items, the two methods of selecting sample are: Probability method. Non-probability method.Probability method is those in which every item of the universe has an equal chance of the inclusion in the sample. Non-probability methods are those that do not provide every item in the universe with known cause of being included in the sample. The selection process is partially subjective.For my study, I employed the Non-probability sampling technique, in which I got the data of the customers from the dealer of HDFC in Sagar City Instrument of collection of dataI have used one set of questionnaire to collect data from the customers. This questionnaire is structured and highly ordered. This includes both close ended and open ended questions. The close ended questions included both dichotomous and multiple choice questions.Data analysis and interpretations Large volumes of raw data were collected through questionnaires in my research study. This raw data has been further converted into significant statistical information before further interpretation so that I can answer my research objective well. The collected raw data was then edited and coded by the researchers to eliminate errors and to assign data to pertinent categories. The data was then tabulated and presented with the help of bar diagrams and pie charts.

NATIONALIZED BANKS:Following 14 commercial banks were nationalized on the 19th July, 1969. Bank of India Canara Bank Central Bank of India Corporation bank Indian Bank Indian overseas bank Syndicate Bank UCO Bank Allahabad Bank Bank of Baroda Bank of Maharashtra Dena Bank Oriental Bank of Commerce Punjab & Sind Bank Union Bank of India United Bank of India Vijaya Bank IDBI BankOther six banks were nationalized on the 10th April, 1980. State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Mysore State Bank of Indore State Bank of Pateyala State Bank Of Saurashtra State Bank of Travancore

In October 1993, the New Bank of Indian and Punjab National Bank were merged.

PRIVATE SECTOR BANKS: HDFC Bank ICICI Bank Federal Bank ING Vysya Bank Axis Bank (formerly UTI Bank) Yes Bank Bank of Rajasthan Bharat Overseas Bank Catholic Syrian Bank Centurion Bank of Punjab City Union Bank Development Credit Bank Dhanalakshmi Bank Ganesh Bank of Kurundwad IndusInd Bank Jammu & Kashmir Bank Karnataka Bank Limited Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Nainital Bank Ratnakar Bank SBI Commercial and International Bank South Indian Bank Amazing Mercantile Bank Punjab National Bank Rupee Bank Saraswat Bank Tamilnad Mercantile Bank Thane Janata Sahakari Bank Bassein Catholic Bank

Specialised Banks

There are some banks, which cater to the requirements and provide overall support for setting up business in specific areas of activity. EXIM Bank, SIDBI and NABARD are examples of such banks. They engage themselves in some specific area or activity and thus, are calledspecialised banks. Let us know about them.

Export Import Bank of India (EXIM Bank): If you want to set up a business for exporting products abroad or importing products from foreign countries for sale in our country, EXIM bank can provide you the required support and assistance. The bank grants loans to exporters and importers and also provides information about the international market. It gives guidance about the opportunities for export or import, the risks involved in it and the competition to be faced, etc.

Small Industries Development Bank of India (SIDBI): If you want to establish a small-scale business unit or industry, loan on easy terms can be available through SIDBI. It also finances modernisation of small-scale industrial units, use of new technology and market activities. The aim and focus of SIDBI is to promote, finance and develop small-scale industries.

National Bank for Agricultural and Rural Development (NABARD): It is a central or apex institution for financing agricultural and rural sectors. If a person is engaged in agriculture or other activities like handloom weaving, fishing, etc. NABARD can provide credit, both short-term and long-term, through regional rural banks. It provides financial assistance, especially, to co-operative credit, in the field of agriculture, small-scale industries, cottage and village industries handicrafts and allied economic activities in rural areas.

(1.5.E) Exchange BanksThere is a difference in financing of foreign trade and financing of internal trade. Generally a person carrying on international trade requires foreign currencies to meet his obligations. It is here that exchange banks play the role of financing the dealer for setting transactions involved in foreign trade. Though commercial banks undertake financing international trade, there are specialized banks for foreign exchange business. In India, there is the Export-Import Bank (EXIM).

(1.5.F) Investment or Industrial BanksInvestment banks provide long-term credit to industries. They raise their funds by way of share capital, debentures, and long-term deposits from the public. They also raise funds by the issue of bonds for business corporations and government agencies. Usually they underwrite the fresh issue of shares and debentures of companies. Such banks also buy the entire issue of new securities of public limited companies and try to get them subscribed at a higher price by the public.

(1.5.G) Land Development Banks Land development banks were earlier known as land mortgage banks. In India, there are a limited number of such banks. They are special institutions providing long-term loans to agriculturists and farmers. They provide loans on the security of land and other immovable properties. They supply long-term funds for period exceeding six years. Agriculturists and farmers need such funds for making permanent improvements to land and for buying farming machinery and equipment.

(1.5.H) Rural BankRural Bank provides various advance facilities for manufacturing activities such as business, industry, and for the aim of rural economic development, the Rural Bank Act is passed in 1974. Rural Bank has given major contribution in the development of rural area.

(1.5.I) Saving BanksSaving banks are specialized institutions which encourage the general public to save something from their earnings. In other words, such banks pool the small saving s of the lower and middle income sections of society. They are not banks in the true sense of the term and their main aim is to promote and collect the savings of the public. Not only the depositors are given interest, but they are allowed to withdraw in times of needs. The numbers of withdrawals are, however, restricted. Separate savings banks are organized in various nations. The government can also run a savings bank. In India, the Postal Department runs the Postal Saving Bank all over the country.

(1.5.J) Deposit Bank V/s Mixed BanksThe main function of a commercial bank is to accept deposits from the public and lend them to traders, industrialists and others for period not exceeding one year. The loans and advances provided for a short period are meant to supplement the working capital of trade and industry in times of need. This type of banking of attracting and accepting deposits and then lending for short period is known as deposit banking. Banks which follow such a system are called deposit banks.

(1.6.A) General Banks FunctionPrincipal Function: Accounting Deposits Granting Advances

Ancillary Function: Discounting of Bills & Cheques. Collection of Bills & Cheques. Remittance. Safe Custody of Articles. Safe Deposit Lockers. Conducting: Safe Deposit lockers Issue of : Letters of credit. Guarantees.

(1.6.B) Function of the Commercial BankCentral Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. So the main function of the commercial bank is as follow:

The functions of commercial banks are of two types.(A) Primary functions; and(B) Secondary functions.Let us discuss details about these functions.

PRIMARY FUNCTIONSThe primary functions of a commercial bank include:a) Accepting deposits; andb) Granting loans and advances.Accepting depositsThe most important activity of a commercial bank is to mobilize deposits from the public. People who have surplus income and savings find it convenient to deposit the amounts with banks. Depending upon the nature of deposits, funds deposited with bank also earn interest. Thus, deposits with the bank grow along with the interest earned. If the rate of interest is higher, public are motivated to deposit more funds with the bank. There is also safety of funds deposited with the bank.

Grant of loans and advancesThe second important function of a commercial bank is to grant loans and advances. Such loans and advances are given to members of the public and to the business community at a higher rate of interest than allowed by banks on various deposit accounts. The rate of interest charged on loans and advances varies according to the purpose and period of loan and also the mode of repayment.

i) LoansA loan is granted for a specific time period. Generally commercial banks provide short-term loans. But term loans, i.e., loans for more than a year may also be granted. The borrower may be given the entire amount in lump sum or in instalments. Loans are generally granted against the security of certain assets. A loan is normally repaid in instalments. However, it may also be repaid in lump sum.ii) AdvancesAn advance is a credit facility provided by the bank to its customers. It differs from loan in the sense that loans may be granted for longer period, but advances are normally granted for a short period of time. Further the purpose of granting advances is to meet the day-to-day requirements of business. The rate of interest charged on advances varies from bank to bank.Interest is charged only on the amount withdrawn and not on the sanctioned amount.Types of AdvancesBanks grant short-term financial assistance by way of cash credit, overdraft and bill discounting.Let us learn about these.a) Cash CreditCash credit is an arrangement whereby the bank allows the borrower to draw amount up to a specified limit. The amount is credited to the account of the customer. The customer can withdraw this amount as and when he requires. Interest is charged on the amount actually withdrawn. Cash Credit is granted as per terms and conditions agreed with the customers.b) OverdraftOverdraft is also a credit facility granted by bank. A customer who has a current account with the bank is allowed to withdraw more than the amount of credit balance in his account. It is a temporary arrangement. Overdraft facility with a specified limit may be allowed either on the security of assets, or on personal security, or both.c) Discounting of BillsBanks provide short-term finance by discounting bills, that is, making payment of the amount before the due date of the bills after deducting a certain rate of discount. The party gets the funds without waiting for the date of maturity of the bills. In case any bill is dishonoured on the due date, the bank can recover the amount from the customer.

SECONDARY FUNCTIONThe subsidiary functions of a commercial bank constitute the agency services and the miscellaneous services.

Agency Services:-One of the important functions of a banker is the services performed by him as an agent. The services as an agent are as under: Collection of Interest and Dividend: The bank collects interest or dividend as and when earned by the customers from securities. A very small charge is levied for the collection on behalf of the customer. Collection and payment: Commercial banks also collect and pay cheques, bills and promissory notes. Executing standing orders: A customer may leave standing instructions to a banker to make payments to certain individuals or institutions against his account. The banker usually charges small fees for such services. Buying and selling of Securities: A commercial baker also undertakes to purchase or sell stocks or shares on behalf of his customers. Remittance of Funds: It is convenient for banks to transfer funds as they have a network of branches all over the country. The remittance of funds is done by mail transfer, telegraphic transfer, and bank draft. Miscellaneous Services: - Among the various function when they are many general utility personal or miscellaneous services rendered to the customers. The important ones are as under: Safety of Customers valuable: This is undertaken when they are kept in specially constructed rooms in the bank premises. Here the bank acts as a bailee of the goods as it is entrusted to its safe keeping. Usually there are two methods of ensuring safety of customers valuable. One is the acceptance of valuables ( e.g. documents of title, jeweler etc.) for safe custody, and the other is the provision of safe deposit vault (Lockers) on hire to customers. Foreign Exchange: Commercial banks also deal in foreign exchange transactions. They assist in foreign trade by discounting foreign bills of exchange and sometime even have to arrange transport, insurance and warehousing of goods. Letters of Credit: A commercial bank can issue personal and commercial letters of credit, enabling the customer to profit by the superior credit. Bankers as Referee: Commercial bankers certify the respectability and financial standing of their customers. This service benefits businessmen who deal with the banks customers. Underwriting: - Banks often act as underwriters to local and municipal authorities or other public bodies. Banks also underwrite for companies, corporations, and underwrite issues of Govt. loans, raised by municipal authorities, and industrial securities.Information & Statistics: - Several big banks have started the collection of information related to trade and business and provide the same to its customers. Some banks even publish monthly reviews containing financial and economic information

DATA ANALYSIS AND INTERPRETATION

Interpretation The amount of advances of CBI is increases since last 4 years, but it is increasing with decreasing rate because in 2008 growth rate of advances was 11% while in 2009 it 10.20%

Interpretation The amount of current a/c was in increasing rate since 2005, but in 2009 it was decreased by 20%

Interpretation The amount of saving deposits of CBI is increases since last 4 years, but it is increasing with fluctuating growth rate because in 2007 growth rate of saving deposit was 20.1% ,in 2008 it was 9.9%, while in 2009 it was again 17.80%

Interpretation The amount of time deposit was increase with high rate of growth in 2009 it was around double compare to 2008

TREND ANALYSIS OF PROFIT & LOSS A/C

(By taking data of 2005 as a base year) (Amount in Rs.)31/3/200531/3/200631/3/200731/3/200831/3/2009

Interest Earned1,45,89,5001,50,98,7851,97,94,8712,59,28,9713,93,14,270

Other income10,26,35612,05,56014,19,19811,04,37615,18,648

Total income1,56,15,8561,63,04,3452,12,14,0692,70,33,3474,08,32,918

Interest Expended98,45,6981,02,56,5651,34,85,4351,84,67,5123,43,94,367

Operating Expenses35,45,56638,58,58042,71,93646,91,54856,25,512

Total expenditure1,33,91,2641,41,15,1451,77,57,3712,31,59,0604,00,19,879

Profit22,24,59221,89,20034,56,69838,74,2878,13,039

2006200720082009

Growth in Interest Earned3%31%31%52%

Growth in Other income17%18%-22%38%

Growth in Total income4%30%27%51%

Growth in Interest Expended4%31%37%86%

Growth in Operating Expenses9%11%10%20%

Growth in Total expenditure5%26%30%73%

Growth in Profit-2%58%12%-79%

Interpretation:The amount of the interest earned was increased with increasing rate so it is good sign for the bank and profitability point of view, in 2007 and 2008 the growth rate was became stable but in 2009 it was increased and became around 52%

Interpretation:The amount of other income was also increased with 38% of growth rate, while in 2008 it was decreased by 22%, so overall it is good sign for the bank

Interpretation:The total income of the bank was also increased due to increases in the interest earning and other income

Interpretation:The amount of the interest expended was increased with increasing rate since 2005, but in 2009 it was increased by 86% which is very high compare to previous years. The reason may be that increased the dependability on the out side debt like deposits and borrowing. And this is not good sign for the bank

Interpretation:The operating expenditure also increased with increasing rate since 2005. In 2008 it was increased by 10% while in 2009 it was increased by 20%

LIMITATION OF THE STUDY

1- As the Sagar dealt in survey, so the coverage area is small according to the project need.2- Size Of the research may not be substantial.3- Information may be biased because of the preference of the customers.4- Complete data was not available due to company privacy and secrecy.5- The survey was carried through questionnaire and the questions were based on perception.6- There was lack of time on the part of respondents.7- The banking sector is too vast & it is not possible to cover each & every customer.

FINDINGS-Most of the respondents choose SBI because the bank is giving more loan and advances facility to the customers.-The age group of 25yrs 35yrs respondents mostly having accounts in ICICI bank where as maximum old age respondents having account in SBI. - According to my knowledge and perception maximum old age customers found SBI more reliable bank as a public sector bank where as mostly youngsters have interest in ICICI bank.-Customer awareness programme is required so that more people should attract towards loans & advances product.-Maximum customers are satisfied with todays banking scenario.-Maximum customers like the most in banking services i.e less paper work where as they also like the EMI base loan scheme.-Even in case of loan & advances customers not only give preference to SBI but they are also satisfied with it.-In ICICI bank maximum customers having saving accounts where as in SBI maximum customers have fixed account, reason among this that maximum customer rely over SBI for their long term money deposits.-maximum customers are satisfied with the more no. of ATM facilities of SBI where as ICICI customers like it low transaction cost.-36% of SBI customers well known about its loans & advances products where as, in ICICI bank 16% customers dont know about the loan & advances product of it.

RECOMMENDATIONS1-Since many of the respondents are not aware of their product & services. The bank has to take some initiatives.2- The bank can post a list of services that they are rendered to the customers inside the bank Premises And they can post demo of all these services in their bank website..3- SBI should concentrate more on the respondents are falling under the age group 25yrs 35yrs.4- ICICI should concentrate more over the people are falling under the age group of 45-55 yrs.5- ICICI needs to increase its lending money to attract the more people towards its loan and advances products.

CONCLUSIONWe can conclude that the financial sector is a nerve system of Indian economy. For steady growth in economy innovations and development in financial sector is very important..The banks should focus on--Launch Innovative product-Customized advance products-Better customer services-Fastest customers problem solving techniques-Customer retentionSince both the banks are competing equally with each other.But SBI bank is little bit below the line in young customer handling when compared to ICICI bank. The ICICI bank is little bit below the line in concentrating on Loan & advances products & services then to SBI bank. But SBI should be considering more reliable because of public sector bank & because of its various schemes.

BIBLIOGRAPHYBOOKS or JOURNALS1- Preston Mcafee, R, Introduction to economic analysis, IV edition - 2- Varshnnew, P.N. Banking and Practices, IVth edition3- Mithani, D.M, Money, Banking, International trade & Public finance 2nd edition4-Business world 2010 February volume. WEBSITESwww.rbi.comwww.statebankofindia.comwww.ICICIbank.comwww.moneycontrol.com

ANNEXURE- 1QUESTIONNAIRE1. Name:2. Age: a) 25yrs- 35 yrs b) 36 yrs - 45yrs c) 46 55 yrs d) above 55 yrs3. Gender: a) Male b) Female 4. Educational Qualification:a) Illiterate (b) School (c) UG (d) PGe) Professional Course (f) Others5. Occupation:a) House wife (b) Students (c) Salaried persond) Business man (e) Professionals (f) Supervisorg) Managerial (h) pensioner6. Income level: a) Rs.50,000 Rs.150,000 b) Rs.150,001-Rs.250,000 c) Rs.250,001- Rs.350,000 d) Rs.350,001-Rs.450,000 e) Above Rs. 450,0007. In which bank do you have an account? a) ICICI bank (b) SBI bank8. Why you choose the particular bank? a) Efficient customer service b) more ATMs c) Time saving d) transaction costs e) Technology 9. What type of account do you have in bank? a) Saving b) Fixed c) Current d) Others.10. Which type of service you prefer the most in your bank?a) ATM service b) Internet bankingc) Mobile banking d) core banking10. Are you satisfied with it? a) Yes b) quite satisfy c) No11. Are you aware about the product and services provided by these banks? a) Yes b) No12. What do you feel by services provided by SBI and ICICI bank in advance product? a) Highly Satisfactory (b) satisfied c) average d) dissatisfied e) Highly dissatisfied13. Are you taking the loan from your bank? a) Yes b) No14. What Features do you like most in todays banking scenario regarding the loans? a) Less paper work b) Transparency c) Less interest rates d) longer tenure loan for ease of repayment e) Flexibility to choose EMI base loan or an over draft f) Specially design products for self employed.15. Are you satisfied with todays banking system?a) Yes b) No

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