COMPARATIVE STUDY OF CONSUMER PERCEPTION REGARDING DIFFERENT SERVICES PROVIDED BY PUBLIC AND PRIVATE SECTOR BANKS

Submitted in partial fulfillment ofThe degree ofBachelor of Business AdministrationTo be awarded byPanjab UniversitySession (2014 - 2015)

Supervised By: - Submitted By:-Mr. Ashok Singla Brahm GuptaBBA 3rd Year Univ. Roll No. 14112000350

ARYA COLLEGE FOR BOYS, CIVIL LINES, LUDHIANA

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled Comparative study of Consumer Perception regarding Different Services provided by Public and Private Sector Banks carried out by Mr. Brahm Gupta S/o Sh. Sanjay Gupta has been accomplished under my guidance & supervision. This project is being submitted by him/her in the partial fulfilment of the requirements for the award of the Bachelor of Business Administration from Panjab University, Chandigarh.

His/ Her project represents his/her original work and is worthy of consideration for the award of the degree of Bachelor of Business Administration.

___________________________________Ashok SinglaDate:

DECLARATION

I, Brahm Gupta, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme.

_______________________Brahm Gupta (Registration No. 14112000350)Date:__________________

ACKNOWLEDGEMENT

This work is essentially the result of final year project which is mandatory to be taken on the partial fulfillment of the course of B.B.A. The project Comparative study of Consumer Perception regarding Different Services provided by Public and Private Sector Banks, is the first life venture for me in the field of marketing.

So, I hereby wish to express my gratitude to those who generously helped me to colour the mosaic of this research work with the titles of their knowledge and expertise.

I would like to thanks Dr. R.C. Tejpal (Principal) for providing me such a great opportunity and I take this opportunity to express deep sense of gratitude and indebtedness to my teacher, Mr. Ashok Singla who supervised my work with his able guidance, suggestions and constructive criticism.

While expressing the gratitude, my debts are numerous than identified here. I cannot forget to mention a word about my teachers, parents and friends who provided me the help and co-operation in undertaking this project.

Brahm Gupta

TABLE OF CONTENTS

Sr. No.Chapter Name Page No.

1Introduction 1

2Review of Literature

3Need, Objective, Scope & Methodology

4Analysis of data

5Summary, Conclusion, Limitations & Recommendations

6References

7Appendix

CHAPTER - 1 INTRODUCTION

1.1 Introduction to BankingBank is defined in many ways by various authors in the book son economics and commerce. It is very difficult to define a bank; because a bank performs multifarious functions may be defined in many ways according to their functions. The evolution of different types of banks, each specializing in a particular field, gives emphasis on each and every kind of bank. A general and comprehensive definition to cover all types of banking institutions would be unscientific and probably impossible. Each type of bank should have its own definition, explaining its specialized functions. Legislators have understood this difficulty and that is why the bill of exchange Act 1882 (England) definesA bank includes a body of persons, whether incorporated or not, who carry on the business of banking

From this definition it is clear to us that any institution, which performs the various banking functions, may be termed as bank. But in practice it is found that many banking functions wary from time to time and country to country. It is not possible on the part of a single bank to perform all the banking functions at a time. So there originated numbers of specialized banks with the objective of performing one or more functions. As for example, Central Bank, Commercial bank, Industrial Bank, Agricultural Bank, Co-operative Bank etc., are seen in the practical field.Dr. Herbert L. Hart has defined a banker asA banker is one who in the ordinary course of business honours cheques drawn upon him by persons for whom he receives money on current accountAccording to Sir John PagetNo one and nobody corporate and otherwise can be a banker who does not (i) take deposit accounts (ii) take current accounts (iii) issue and pay cheques drawn upon him(iv) collect cheques crossed and uncrossed for his customersHilton banking commission defines bank or banker in the following words:Every person, firm or company using in the description or its title, bank or banker or banking and accepting deposits of money subject to withdrawal by cheque, draft or orderIn view of the above definitions, a simple and short definition can be given asBank is an institution, which deals in money and creditAccording to this precise definition a bank accepts deposits from public and makes advances and loans to them. In practice bank receives deposits of money in savings and current accounts at lower rate of interest or profit and gives on credit to needy persons and businessmen at a higher rate of interest or profit. It also transfers money for the clients from one city or country to another and also performs various other agency services for earnings.

1.2 Banking in IndiaBanking in Indiain the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct.The largest bank, and the oldest still in existence, is theState Bank of India, which originated in theBank of Calcuttain June 1806, which almost immediately became theBank of Bengal. This was one of the three presidency banks, the other two being theBank of Bombayand theBank of Madras, all three of which were established under charters from theBritish East India Company. The three banks merged in 1921 to form theImperial Bank of India, which, upon India's independence, became the Statein 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until theReserve Bank of Indiawas established in 1935.In 1969 theIndian governmentnationalizedall the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate ascommercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks; they have been joined since the 1990s by new private commercial banks and a number of foreign banks.Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through theNational Bank for Agriculture and Rural Developmentwith things like microfinance.

Indian Banking Industry currently employees 1,175,149 employees and has a total of 109,811 branches in India and 171 branches abroad and manages an aggregate deposit of67504.54 billion(US$1.1trillion or 820billion) andbank creditof52604.59 billion(US$880billion or 640billion). The net profit of the banks operating in India was1027.51 billion (US$17billion or 12billion) against a turnover of9148.59 billion(US$150billion or 110billion) for thefiscal year2012-13.

1.3 History of banking in IndiaIn ancient India there is evidence of loans from theVedic period(beginning 1750 BC).Later during theMaurya dynasty(321 to 185 BC), an instrument calledadeshawas in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another.Thepartition of Indiain 1947 adversely impacted the economies ofPunjabandWest Bengal, paralysing banking activities for months. India'sindependencemarked the end of a regime of theLaissez-fairefor the Indian banking. TheGovernment of Indiainitiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged amixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:TheReserve Bank of India, India's central banking authority, was established in April 1935, but was nationalised on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).In 1949, the Banking Regulation Act was enacted which empowered theReserve Bank of India(RBI) "to regulate, control, and inspect the banks in India".The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

Nationalization in the 1960sDespite the provisions, control and regulations of theReserve Bank of India, banks in India except theState Bank of India(SBI), continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of theIndian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry.Indira Gandhi, the thenPrime Minister of India, expressed the intention of theGovernment of Indiain the annual conference of the All India Congress Meeting in a paper entitled"Stray thoughts on Bank Nationalization."[7]The meeting received the paper with enthusiasm.

Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalisedthe 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country.Jayaprakash Narayan, a national leader of India, described the step as a"masterstroke of political sagacity."Within two weeks of the issue of the ordinance, theParliamentpassed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received thepresidentialapproval on 9 August 1969.

A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the Government of India controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India withPunjab National Bank. It was the only merger between nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalization in the 1990sIn the early 1990s, the then government embarked on a policy ofliberalization, licensing a small number of private banks. These came to be known asNew Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce,UTI Bank(since renamed Axis),ICICI BankandHDFC Bank. This move, along with the rapid growth in theeconomy of India, revitalised the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the norms for foreign direct investment, where all foreign investors in banks may be given voting rights which could exceed the present cap of 10% at present. It has gone up to 74% with some restrictions.The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 464 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People demanded more from their banks and received more.

Current periodAll banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks. Scheduled Commercial Banks in India are categorised into five different groups according to their ownership and/or nature of operation. These bank groups are:State Bank of India and its AssociatesNationalised BanksPrivate Sector BanksForeign BanksRegional Rural Banks.In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalised Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks.

By 2010, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government.

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especiallyretail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowedWarburg Pincusto increase its stake inKotak Mahindra Bank(a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connexion with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

1.4 Adoption of banking technologyThe IT revolution has had a great impact on the Indian banking system. The use of computers has led to the introduction ofonline bankingin India. The use of computers in the banking sector in India has increased many fold after the economic liberalisation of 1991 as the country's banking sector has been exposed to the world's market. Indian banks were finding it difficult to compete with the international banks in terms of customer service, without the use of information technology.The RBI set up a number of committees to define and co-ordinate banking technology. These have included:In 1984 was formed the Committee on Mechanisation in the Banking Industry (1984)whose chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of India. The major recommendations of this committee were introducingMICRtechnology in all the banks in the metropolises in India.This provided for the use of standardized cheque forms and encoders.In 1988, the RBI set up the Committee on Computerisation in Banks (1988)headed by Dr. C Rangarajan. It emphasized that settlement operation must be computerized in theclearing housesof RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there should be National Clearing of inter-citychequesat Kolkata,Mumbai,Delhi,Chennaiand MICR should be made operational. It also focused on computerisation of branches and increasing connectivity among branches through computers. It also suggested modalities for implementing on-line banking. The committee submitted its reports in 1989 and computerisation began from 1993 with the settlement between IBA and bank employees' associations.In 1994, the Committee on Technology Issues relating toPayment systems,Cheque ClearingandSecurities Settlementin the Banking Industry (1994)was set up under Chairman W S Saraf. It emphasizedElectronic Funds Transfer(EFT) system, with the BANKNET communications network as its carrier. It also said that MICR clearing should be set up in all branches of all those banks with more than 100 branches.In 1995, the Committee for proposing Legislation on Electronic Funds Transfer and other Electronic Payments (1995)again emphasized EFT system. Total numbers ofATMsinstalled in India by various banks as on end June 2012 is 99,218.The New Private Sector Banks in India are having the largest numbers of ATMs, which is followed by off-site ATMs belonging to SBI and its subsidiaries and then by Nationalised banks and Foreign banks. While on site is highest for the Nationalised banks of India.

Table no. 1Branches and ATMs of Scheduled Commercial Banks as on end March 2013

1.5 Types of BanksCentral bankDevelopment BankInvestment BankCooperative Credit BankRegional Rural Bank Non Banking Financial CompaniesCentral BankThe money market that acts as the central monetary authority of the country, serving as the government bank as well as the bankers bank is known as a central bank of the country. The main functions of central bank of a country are functions of note issue, bankers to government, bankers bank etc.The RBI as the central bank of the country is the centre of the Indian financial and monetary system. It has been guiding, monitoring, and regulating, controlling, and promoting destiny of the IFS. It is quite young compared with such central banks as the Bank of England, Risks bank of Sweden, and the Federal Reserve Board of the U.S.Main Functions of The Reserve bank of India As the central banking authority of India, the reserve Bank of India performs the following traditional functions of the central bank: It provides currency and operates the clearing system for the government and banks. It formulates and implements monetary and credit policies. It functions as the governments and bankers bank It supervises the operations of credit institutions. It regulates foreign exchange transactions. It moderates the fluctuations in the exchange value of the rupee.

In addition to the traditional functions of the central banking authority, the Reserve bank of India performs several functions aimed at developing the Indian financial system: It seeks to integrate the unorganized financial sector with the organized financial sector. It encourages the extension of the commercial banking system in the rural areas. It influences the allocation of credit. It promotes the development of new institutions.

Development BanksA development bank may be defined as a financial institution concerned with providing all types of financial assistance to business units in the form of loans, underwriting, investment and guarantee operations and promotional activities-economic development in general and industrial development in particular.A development bank is basically a term lending institution. It is a multipurpose financial institution with a broad development outlook. The concept of development banks in a post independence phenomenon in India. With the end of II World War there was an urgent need for speed industrial development in India. The usual agencies that provided finance for large industries were inadequate. So the govt. of India came forward to set-up a series of financial institution to provide funds to industries. The industrial finance corporation of India, the first development bank was established in 1948. Subsequently many other institutions were set-up. Ex. IDBI, IFCI, SIDBI etc.

Investment BanksFinancial intermediaries that acquire the savings of people and direct these funds into the business enterprises seeking capital for the acquisition of plant and equipment and for holding inventories are called investment banks. Features:-Long term financing, Security, merchandiser, Security middlemen, Insurer, UnderwriterFunctions: - Capital formation, Underwriting, Purchase of securities, Selling of securities, Advisory services, Acting as dealer.

Cooperative Banking SectorThese banks play a vital role in mobilizing savings and stimulating agricultural investment.Co-operativecredit institutions account for the second largest proportion of 44.6% of total institutional credit of Rs.3854000 corer to agricultural and allied activities in the rural sector in 1998 to 99.Types of Co-operative Banking sectorThe co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories. State co-operative Banks Central co-operative banks Primary Agriculture Credit Societies

Non Banking Finance companiesAccording to RBI it means financial institutions which is a company and a non banking institution and which has as its principal business the receiving of deposits under any schemes or arrangement or in any other manner or lending in any manner.

Merchant BanksInstitution that render wide range of services such as the management of customers securities, portfolio management, counseling, insurance, etc are called Merchant Banks.Functions: - Sponsoring issues, Loan syndication, Servicing of issues, Portfolio, management, arranging fixed deposits, helps in merger& acquisition.

Commercial BanksCommercial banks comprising public sector banks, foreign banks, and private sector banks represent the most important financial intermediary in the Indian financial system.The changes in banking structure and control have resulted dueto wider geographical spread and deeper penetration of rural areas, higher mobilization of deposits, reallocation of bank credit to priority activities, and lower operational autonomy for a bank management.The largest commercial Banks in India, (SBI), was set up in 1955 when the Imperial Bank was nationalized and merged with some banks of the princely states. In 1969, in one fell swoop, the fourteen largest privately owned commercial banks were nationalized. Subsequently, several other privately owned commercial banks were nationalized. As a result of these actions, public sector commercial banks, dominate the commercial banking scene in the country.

1.6 Public Sector Banks Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932). Oriental Bank of Commerce (OBC), Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.The following are the list of Public Sector Banks in India Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas 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 State Bank of India and its subsidiary, a Public Sector Banks State Bank of India State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore

1.7 Private sector banksPrivate banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India.The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account. List of Private Banks in India 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 PROFILES OF BANK

About - HDFC Bank Limited, India

Incorporated in August 1994 as HDFC Bank Limited, the bank now has a wide network of over 531 branches across 228 cities in India, and over a thousand networked ATM's.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking Industry. The bank was incorporated in Aug 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai. The bank commenced operations as a Scheduled Commercial Bank in Jan 1995.

HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1997, the Corporation has maintained a consistent and healthy growth in its operations to remain the clear market leader in mortgages in India. Its outstanding loan portfolio covers a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique customer franchise, HDFC was ideally positioned to promote a bank and the Indian Environment.

CAREERS

HDFC Bank is India's leading private sector bank. Or it could be because HDFC Bank was rated so highly by leading national and international magazines such as Business India, Business Today, Euro money, Finance Asia and Forbes Global, to name a few. It could also be because we see the wide range of opportunities that we offer in Branch Banking, Retail Assets, Product Development, Operations, Marketing, Treasury, Equities, Corporate Banking, Cash Management Services, Custody and Depositories etc. HDFC Bank is a young and dynamic bank, A bank with a dedicated team determined to accomplish the bank's mission of becoming a world-class Indian bank as early as possible. The Bank's strategic framework has provided us with four core values - customer focus, operational excellence, product leadership and people. Finally, we believe that ultimately, the success of our bank resides in the exceptional quality of our people and their extraordinary efforts. For this reason, we are committed to hiring, developing, motivating and retaining the best people in our industry.

HDFC Bank recognizes the importance of good corporate governance, which is generally accepted as a key factor in attaining fairness for all stakeholders and achieving organizational efficiency. This Corporate Governance Policy, therefore, is established to provide a direction and framework for managing and monitoring the bank in accordance with the principles of good corporate governance.

HDFC Bank maintains the web-site http://www.hdfcbank.com ("the Site") to provide you with information about HDFC Bank services and products and to facilitate communication with HDFC Bank. The visitors to the Site are required to read the below terms and conditions and your use of the Site constitutes your acceptance and agreement to be bound by such terms and conditions including those excluding the Bank's liability

MISSIONHDFC Banks began operations in 1995 with a simple mission to be a World Class Indian Bank. We realized that only a single-minded focus on product quality and service excellence would help us get there. Today, the bank is on the way towards that goal. It is extremely gratifying that its efforts towards providing customer convenience have been appreciated both nationally and internationally. The banks aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of banking services in the niche segments that the bank operates in and to achieve healthy growth in profitability, consistent with the banks risk appetite. The Bank aims to assure the highest level of ethical standards, professional integrity and regulatory compliance.

Terms & Conditions HDFC Bank does not warrant the accuracy, adequacy or completeness of the information and materials contained in these pages, including text, graphics, links and other items, and expressly disclaims liability for errors or omissions of any kind. Copyright: All information, content, materials, products (including, but not limited to text, content, photographs, graphics, video and audio content) is protected by copyright in the favor of HDFC Bank under applicable copyright laws and is also protected otherwise under general intellectual property law. All information submitted to HDFC Bank through the Site shall be deemed to be the property of HDFC Bank, and HDFC Bank shall be free to use any ideas, concepts, know-how or techniques provided by a visitor at the Site, in any manner whatsoever. HDFC Bank is not bound by the obligation of confidentiality regarding submitted information unless the visitor has a direct customer relationship with the Bank or unless specifically agreed or required by law. Personal and Non-commercial use restriction: You may not copy, reproduce, sell, redistribute, publish, enter into a database, display, perform, modify, transmit, license, create derivatives from, transfer or in any way exploit any part of any information, content, materials, services available from or through the Site, except that you may download material for your own personal, non-commercial use. Unlawful Use Restriction: As a condition of your use of the Site you warrant that you will not use the Site for any purpose that is unlawful, or prohibited by these terms and conditions. You may not use the Site in any manner that could damage, disable or impair the Site or interfere with any other party's use or enjoyment of the Site. Not all the products and services are available in all geographic areas and you may not be eligible for all the products or services offered by HDFC Bank on the Site. HDFC Bank reserves the right to determine the availability and eligibility for any product or service. HDFC Bank proposes to use "cookies" (Cookies are small data files that a website stores on your computer.) for storing visitor preferences, profiling visitors and tracking visitor behavior on the Site. By visiting the site you acknowledge, accept and expressly authorize the Bank for the placement of cookies on your computer. HDFC Bank shall not be considered in default of its obligations hereunder if performance of such obligations is prevented or delayed by causes beyond its reasonable control, including, without limitation, internet failures, computer equipment failures, telecommunication equipment failures, other equipment failures, electrical power failures, strikes, virus, other malicious computer code, hacking, acts of God or government, war, riots, acts of civil disorder, labour disputes, failure or delay of transportation, non-performance of third parties. Modification of these Terms of Use- HDFC Bank reserves the right to change the terms, conditions and notices applicable to the use of the Site and reserves the right to modify any features of any products or services offered by HDFC Bank on the Site and any information found on the Site. You are responsible for regularly reviewing these terms and conditions. Continued use of the Site after any such changes shall constitute your consent to such changes. The Courts in Mumbai alone shall have exclusive jurisdiction as regards any claims or matters arising out of dealings with HDFC Bank , and all disputes will be governed by the laws of India These terms and conditions are in addition and not in derogation of the applicable terms and conditions relating to the services that you may obtain, including without limitation Net Banking.

ORGANIZATIONHDFC Bank is a two tier organization, head office and Branch Office. It has been done so as to make decision making more responsive to the needs of the customers. The branches are directly linked to the head office at Mumbai.

HDFC BANK HIGHLIGHTS Ranked as best Domestic Bank in India as per Forbes World Best for 2001 amongst Best Managed Indian Companies out of 300 best small companies of the world. The best Bank in India as per Euro money July, 2000. A scheduled commercial bank promoted by Nat West Bank, U.K. and HDFC in 1994. The Bank has strategic Business Alliance with Chase Manhattan Bank, largest bank of USA. Open an account in a city and operate it from any branch all over the world. FD cum savings account linked to ATM providing liquidity convenience and returns. Operate your account from the comfort of your home/office anywhere in the world through INTERNET BANKING. Personalized Cheque Book with your name and account no embossed on each cheque. Avail 24 hours banking facility through ATMs at all our branches for cash, cheque deposit, withdrawal, account statement, new cheque book request, funds transfer etc. Preferred Customer Status for individual having deposit of Rs. 5 lakh and above with special personalized service. Use all your credit cards at your ATMs: MASTERCARD, AMERICAN EXPRESS AND VISA. Use HDFC BANK DEBIT CARD for withdrawals and purchase at any of the Visa Electrons more than 5 lakh locations worldwide. At par collection of outstation cheques from HDFC BANK branches (after 10 working days). Free usage of Mobile Banking, Phone Banking to operate / inquire about the account. Unique Multicity Current Account (PLUS CURRENT ACCOUNT) with PAYABLE AT PAR cheque book facility and fee Dds up to Rs. 10 lacks per day on HDFC Bank brooches combined Fees Outstation Cheque Collection in 7 working days for cheques available at metros.

SWOT ANALYSISSTRENGTH1. The biggest strength of Bank is Direct Banking channels. As Direct banking channels saves time and money both as a customer does not need to go to bank for any kind of transaction except cash withdrawal and cash deposits all other things are done sitting anywhere in the world.2. All services or products of HDFC Bank are available through direct banking channels.3. Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours services.4. Very easy to access and use.5. A highly personalized services provided by the bank.6. HDFCs Direct Banking channels provide real time and accurate information.7. HDFCs Direct Banking is user friendly any one can easily operate it.8. Now International Debit Card is Free for one year.9. The Bank has strategic business alliance with Chase Manhattan Bank, largest bank of USA.

WEAKNESS:1. Unawareness about all Direct Banking Channels due to less advertisement.2. Other private banks have started direct banking channels it may put some competition to HDFC Bank in near future.3. Resistance to Change.4. One should have the knowledge of the operations of the computers and of course the Internet.OPPURTUNITIES:1. As Nationalized Banks and Co-operative Banks do not provide Direct Banking services, so HDFC Bank can attract more customers.2. Centralized banking makes easy for HDFC Bank to provide services to customers.3. Huge market of shareholders.THREATS:1. Competition from other private sector banks.2. Attacks of web hackers.ICICI BANK LTD.

ICICI bank Ltd is the second largest bank of India. ICICI Bank is a private sector commercial bank organized under the law of India in 1994. ICICI bank offers a wide range of banking product to corporate and retail customer through a Variety of delivery channels. ICICI bank is an affiliate company of ICICI. ICICI Bank was originally promoted by the erstwhile SCICI ltd. It was incorporated as a company under the Companies Act, 1956 on 5th January 1994 and received the certificate of the commencement of the business on 24 February, 1994.

In May, 1994 when ICICI Bank was incorporated as a subsidiary of ICICI and granting a banking Licence, ICICI held 75% of the equity share capital of ICICI Bank and the balance 25% of the equity share capital of ICICI Bank was held by SICICI Ltd.

Following the amalgamation of the SICICI Ltd. with ICICI, ICICI Bank become wholly the subsidiary of ICICI. The reserve bank of India imposed a condition that ICICI reduce its shareholding in ICICI Bank in stages, first to not more than 75%of its equity share capital and ultimately 405of its equity share capital. On September 30, 2001, ICICI held 46%of the equity share capital of ICICI bank.

The ICICI Bank was founded with the objective of providing quality banking services using the state of art technology. ICICI bank placed a great emphasis on the need for competitive, efficient, and low cost financial intermediation. ICICI Bank conducts banking operation in an organized and systematic manner. Toward this end, it has set up a fully computerized continually upgrades its strong systems and procedures with special emphasis on risk management.

ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited was established in 1955 by the World Bank, the Government of India and the Indian Industry, for the promotion of industrial development in India by giving project and corporate finance to the industries in India. ICICI Bank has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI Bank has financed all the major sectors of the economy, covering 6,848 companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of Rs.1,13,070 crores, since inception.ICICI Bank Fact Files:Total assets: Rs.146,214 crore (December 31, 2004)Network: 530 branchesATMs: Over 1,880Abroad Subsidiaries: United Kingdom and CanadaAbroad branches: Singapore and BahrainRepresentative offices: United States, China, United Arab Emirates, and Bangladesh and South Africa.

ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a network of about 614 branches and extension counters and over 2,200 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally.ICICI Bank is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 180 billion (at the end of March 2013), a network of over 1,891 branches, 34 regional offices and 64 regional processing centers, about 6,485 ATMs (at the end of September 2008), and 48 million customers (at the end of July 2013). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE).The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the hisave savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Center and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalization. ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank has formulated a Code of Business Conduct and Ethics for its Directors and employees. At June 5, 2006, ICICI Bank, with free float market capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial Institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of The World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for Providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial service group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking Operations, both wholesale and retail, have been integrated in a single entity.Free float holding excludes all promoter holdings, strategic investments and Cross holdings among public sector entities.VisionTo be the leading provider of financial services in India and a major global bank.Mission We will leverage our people, technology, speed and financial capital to be the banker of first choice for our customers by delivering high quality, world-class service. Expand the frontiers of our business globally. Play a proactive role in the full realisation of Indias potential. Maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders.

Product and ServicesService and banking of ICICI bank categorized in to personal banking, business banking and NRI banking services.

Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and children depository account are there for individual customer can also avail of their housing, automobile, farm equipment, business or personal loan scheme. Personal client can also invest in mutual funds and participate in stock trading through ICICI bank.

Business banking Business banking services of ICICI Bank are exhaustive. Project financing, deal assessment, and land evaluation are investment banking services offered to corporate clients. Global trade and cash management transaction services facilitate remittances and receipts across important cities. Capital market and custodial services enable business houses to participate in equity trading and transfer across major stock markets of world.

EVOLUTION OF SBIThe origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Group Photograph of Central Board (1921)A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had till then any branches (except the sole attempt and that took a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centers in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking sub serving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.Mission statement:To retain the Banks position as premiere Indian Financial Service Group, with world class standards and significant global committed to excellence in customer, shareholder and employee satisfaction and to play a leading role in expanding and diversifying financial service sectors while containing emphasis on its development banking rule.

VISION STATEMENT: Premier Indian Financial Service Group with prospective world-class Standards of efficiency and professionalism and institutional values. Retain its position in the country as pioneers in Development banking. Maximize the shareholders value through high-sustained earnings per Share. An institution with cultural mutual care and commitment, satisfying and Good work environment and continues learning opportunities.

VALUES: Excellence in customer service Profit orientation Belonging commitment to Bank Fairness in all dealings and relations Risk taking and innovative

PRODUCT & SERVICES OFFERED BY SBI:- Terms deposit scheme Recurring deposits scheme Loans SBI SARAL Personal loan Education loan Car loan Home loan Medi-Plus loan

TERM DEPOSITS Provide security, trust and competitive rate of interest. Flexibility in period of term deposit from 15 days to 10 years Affordable Low Minimum Deposit Amount: One can open a term deposit with SBI for a nominal amount of Rs.1000/- only. Flexibility in choosing the amount one wish to invest and the maturity period.

BENIFITS OF SCHEME: -Safety: SBI IS continues to deliver on its promise of safety and security over 200 years.Liquidity Loan /overdraft facility: One can avail a loan/overdraft against his deposit. SBI provides loan / overdraft up to 90% of deposit amount at nominal cost. So one can continue to earn interest in his deposit and still can meet his urgent financial requirements.

Premature Withdrawal: Interest to be charged on premature withdrawal of term deposits at 1.00% below the rate applicable for the period deposit has remained with the Bank.

Transferability-Transfer of Term Deposits between wide networks of branches without any charge.Compounding / Flexible / Timely Payment of InterestUnder Special Term Deposit Scheme, interest accrues in account and gets compounded quarterly. Term Deposits are available at all SBI Branches Easy and convenient access of information at SBI internet banking.Tax Implications: Tax Deductible at Source, as per Income Tax Act

Flexibility to convert Special Term Deposit to Term Deposit and vice versa One can convert his special Term Deposit to a Term Deposit to receive monthly/quarterly interest payments to match his financial requirements. One can also convert his Term Deposit to a Special Term Deposit, which provides compounded rate of interest to multiply his money faster.

RECURRING DEPOSIT:-Recurring deposit refers to a little investment by an investor to meet his financial goals of future (Childrens education or marriage, buy a car etc.) Recurring deposit provides the element of compulsion to save at high rates of interest, wide choice in period of deposit.

Features:- Flexibility in period of deposit with maturity ranging from 12 months to 120 months. Low minimum monthly deposit amount. One can start a Recurring Deposit with SBI for a monthly installment of Rs.100/- only.

Benefits:-Including all the benefits of terms deposits there are some more benefits of recurring benefits:- Nomination Facility is available in this scheme One can save a monthly installment of multiple of 10 every month One can monitor his deposit through SBI Internet Banking or through a passbook issued to you.

PUNJAB NATIONAL BANKHERITAGEPunjab National Bank has faced many a trials of strength including the trauma of partition of India in 1947 at the time of independence. However, due to its inherent strengths and resilience, the bank not only withstood such adversities but established itself still firmly on the Indian subcontinent. The bank was nationalized in July 1969 Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinction of being the first bank to have been started solely with Indian capital. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present. During its existence of over one hundred and eight years, along with 13 other banks. The bank's strength lies in its corporate belief of growth with stability.

Punjab National Bank is a state-owned financial services company located in New Delhi, India. It was registered on May 19, 1894 under the Indian Companies Act with its office in Anarkali Bazaar Lahore. Today, the Bank is the second largest government-owned commercial bank in India with about 5000 branches across 764 cities. It serves over 37 million customers. The bank has been ranked 248th biggest bank in the world by the Bankers Almanac, London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.Punjab National Bank is one of the Big Four Banks of India, along with ICICI Bank, State Bank of India and Canara Bank .

HISTORY OF PUNJAB NATIONAL BANKPunjab National Bank was established in the year 1895 found by Punjab Kesari Shri Lala Lajpat Rai at Lahore (now in Pakistan) as a joint stock company. After the partition in 1947, the bank grew steadily with its presence at the important centers and metropolitan cities of the country and emerged as one of the big five Indian banks during pre-nationalized period.

The bank was nationalized in 1969 along with 13 other banks. Subsequently, in 1993 it took over the New Bank of India, another bank that was nationalized in 1980. In 2003 the Nedungadi Bank Ltd., a south based private sector bank alsomerged the bank. Thus the bank, which previously had its main business area around the Indo-Gangetic belt and major metros, could ensure its remarkable presence in the entire country.

Presently, it is the second largest bank of the country rendering a wide variety of banking services (corporate/personal/industrial finance/agriculture finance/financing of trade and commerce/international banking). It has a broad clientele base like Multi National Corporation, Indian Conglomerates, medium/small industrial units and NRIs. As a bank with global standard, it was ranked 416th among the biggest bank in the world by the bankers Almanac in 2002.The bank is member of the SWITY (society for Worldwide International Financial Telecommunication) and has strong correspondent relationship with the leading international banks. Continued financial sector reforms led to greater alignment of financial sector to the competition business environment.

Operational and supervisory practices in the sector have been progressively matching international standards. In the process Indian banking system is becoming increasingly mature in terms of transformation of business process and risk management. The head office of the Bank is at, Bhikaji Cama Place, New Delhi.

The bank also has subsidiaries like PNB Gilts Ltd., PNB Housing Finance Ltd.,PNB Capital Services Ltd., PNB Assets Management Co .Ltd.VISIONTo evolve and position the Bank as a world class progressive cost effective and customer friendly institution providing comprehensive financial and related services; integrating frontiers of technology and serving various segments of society especially the weaker section; committed to excellence in serving the public and also excellence in serving the public and also excelling in corporate values.

MISSION To provide excellent professional services and improve its position as a leader in the field of financial and related services; build and maintain a team of motivated and committed workforce with high work ethos; use latest technology aimed at customer satisfaction and act as an effective catalyst for socio-economic development

PRODUCTS OFFERED BY PUNJAB NATIONAL BANK: Presently, it is the second largest bank of the country rendering a wide variety of banking services:

CENTRALISED BANKING SOLUTION (CBS): CBS, an inter-branch networking and data-sharing platform helps to operate account from any city in India having CBS networked branches. Changing status from Customer of the Branch to Customer of the Bank, presently, there are over 2,616 CBS networked brandies in 820 cites.

NRIS & TOURISTS: Currency exchange services are being provided by our Exchange Bureaus spread throughout the country.

ONLINE TAX PAYMENT: PNB provides the facility of online payment of service tax, excise duty, DGFT, custom duty & all charges under MCA.

CASH MANAGEMENT SERVICE (CMS): PNBs CMS facilitates management of receivables and payments in technology driven environment, ensuring availability of funds at reduced cost, helping reconciliation at multi location accounts besides providing customized MIS. MUTUAL FUNDS & INSURANCE: The bank has tied-up with Principal Financial Group for providing Mutual Funds and Insurance services & also tied up for distribution & marketing of UTI Mutual Funds.

NRI SERVICES: NRE, FCNR, RFC, NRO Deposit a/c investment Management & Housing Loan facilities for NRIs.

FOREIGN EXCHANGE: PNB has 150 branches authorized for handling foreign exchange business and these branches have been provided with SWIFT connectivity to ensure faster realisation of funds.

e-MONEYINDIA: Send money to the loved ones in India through PNBs e-Money India service. Draft delivery across 4,038 locations and Bank Credit to over 2,500 branches in India.

ONLINE RAILWAY RESERVATION/AIR TICKET BOOKING: Say goodbye to long queues. PNB offers online booking & information through IRCTC payment gateway. Just click and travel comfortably.

DEPOSITORY SERVICE: PNB Depository service provides the facility of having shares & securities in Demat form & executes transactions of sales & purchase hassle free electronically.

LOCKERS: Now, customer can relax with assurance of having your locker at the PNB branch nearest to their home.

CUSTOMER CARE FACILITY: All the banking queries and problems are just a call away! PNB presents 24 hr. customer care facility.

PNB GOLD COIN: PNB gives opportunity to dazzle the well wishers, patrons, partners and acquaintances with the mystical charisma of PNBs 999.9 fineness pure 24-carat gold coins and to convey the true value of treasured relationship. Enjoy guarantee of purity & weight of hallmarked gold coins.

ELECTRONIC CLEARING Service (ECS) & ELECTRONIC FUNDS TRANSFER (EFT): Avail ECS for quick movement of funds in a paperless mode & EFT to ensure an expeditious transfer of funds by using electronic media.

WEALTH MANAGEMENT SERVICE: PNB provides customized financial advisory services for individuals that includes Mutual Funds, insurance, Retirement Planning, Tax planning, & Debt Management to customers for wealth maximization.

ONLINE BILL PAYMENT: No more queues to pay your bills. Now pay telephone, mobile, electricity, insurance & several other bills 24 hours, 365 days, from the desktop.

SERVICES PROVIDED BY PUNJAB NATIONAL BANK: Punjab National Bank offers financial solutions and services in an array of sectors. All these services that are offered keep pace with the changing market trends in order to fulfill the needs and preferences of the customers. Some of the well known sectors on which the main functions of the bank are based are: Personal Banking Corporate Banking Agriculture finance services Industrial finance services Trade financial services International banking services

PNB also has commercial relationship with more than 200 prestigious international banks across the globe. It has the provisions of Rupee Drawing Arrangements with around 15 exchange companies in the UAE and 1 in Singapore.In case of the personal banking segment, the bank offers customized solutions to take care of almost all financial needs of the customers. Some of the well known services that are offered in the bank are: Savings Fund Account Fixed Deposit scheme Current account Loan servicesPunjab National Bank is also a well known name in housing loan benefits. The bank offers both short term and long term loans. The rates are also affordable and can be paid within a particular time. The housing loans are given for a number of purposes such as: Construction of a building Purchase of a new house or a flat Purchase of flat or house on a First Power of Attorney basis For the purpose of repair or renovation of a house or a building The PNB Housing Finance sanctions around 80% of the cost of the project. However, the maximum amount is around Rs 50 lakh. The maximum loan amount for the purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a period between 5 and 20 years before one becomes 65 years of age. The interest of the loan is based on the reducing balance and the principal amount of the loan is also based on the repaying capability of the borrower.

CHAPTER - 2REVIEW OF LITERATURE

This chapter presents the review of selected studies having relevance to present studies. To formulate the problem and to point out the importance of understanding the study, it is essential to present the brief review of the various aspects of services of banks. In this chapter, an attempt has been made to present the review of literature available in the area of banking services.

Theodore Levitt (1974)We live in an age in which our thinking about what a product or a service is must be quite different from what it ever was before it is not so much the basic, generic central thing we are selling that counts, but whole cluster of satisfaction with which we surround it.

Working Group on Customer Services (1975)In Their final report, it has confidently concluded that small branches serve customers far better than bigger ones. They invariably more frequently and generate very few complaint choose and remittances through past.

Vaghul (1976)Has studied employee development in relation to customer services. He writes that delays in customer service flow not only out of defective systems, but attitude of employees. Even if system is modified, unless the employee attitude does not change, the desired results cannot be achieved. Instead of trying to change their attitude through classroom training, it is appropriate to include new value system and attitudes when they join the organization. He suggested that instead of starting an employee on monotonous type of jobs, the employee be given a challenging task

Suneja (1978)Recalled that before period of nationalization, rendering of banking services was not accompanied by the immigration and innovation i.e. they were living in the selling age but the trend is changing now and those two factors are acting as inputs to the improvement of quality of banking services.

Klein (1977)He studied the impact of long range planning on profit and growth of commercial banks. The study indicates that banks size is an important variable affecting growth trends in commercial banks. Future, the extent of large range planning efforts undertaken does influence growth trends.

Sampat P Singh (1980)He questioned the pricing structure of banking services. He wrote that in view of manifold increase in services and service package offered by banks, there is pressing need for unbundling bank services and for instituting pricing system.

Mehra (1983)Emphasized that the banks should try to market its services and his efforts should always be to convert a visitor to a regular customer. Also he emphasized the importance of personal approach in promoting bank services then advertising through formal media.

ManMohan Singh (1984)During Indian banking system in the five year plan, he said that the deterioration standard of customer services is attributed due to rapid expansion of Indian banking system and work technology on selected basis.

Patel (1986)Has expressed concern over nothing being done about deterioting banking services and monetary costs for the same. Unfortunately, customers' complaints only end up in paper baskets or letter or two does not force them to take some actions. At senior management levels, however is awakening and awareness to consumer complaints.

Subrahmaniyam (1991) Established that some useful and constructive schemes had been designed by commercial banks, but these had not been efficiently and properly implemented. In contrast to this, some private finance companies had taken to lead in matter of advertisement to attract customers.

Asthana (1997)Says in the study conducted by Mehsana Cooperative Bank Ltd., Gujarat, a marketing mix of banking services, product, price, place, promotion, people and procedures are the 6 Ps of bank services marketing mix. The study has fully determined the need of adopting marketing approach in banking services and it realizes that it is more urgent. The study concludes that the banks should adopt proper marketing mix depending upon competition and global conditions that only can the bank fully realize the benefits of marketing. The banks delivering the services to customers in a less time commands a competitive edge over the others.

Anu Handa (2001)Performance evaluation criteria adopted by public and private sector banksShe concluded that Public sector banks largely dominate the banking industry. Public sector banks facing problem in implementing or upgrading technologies. Private sector banks on expansion phase. Respondents of study having account in different banks, but private banks got the higher rating then the public sector banks. Public sector banks were willing to professionalize. Internet banking, bill pay facility etc are provided by private sector banks and not public sector banks.

Manisha Dhiman (2002)Comparative study of ATM, DEMAT & E-banking services provided by the public and private sector banksIn her findings she said that total investments made by the private are more than the public sector banks. Number of customers and staff members is more in public sector banks than private sector banks. Customer avail ATM service more than DEMAT and E-banking service. Public sector banks customer take more time to become actual customer than private banks. Average number of customers is more in private sector banks who are availing services daily than public sector banks.

Rakesh Kumar (2002)Study of Customer relationship management in private sector banksThe study states that most of the services provided by private sector banks were like depository, loans and advances, e-banking, ATM, etc. and for the advertisement of various services 63% of the banks use print media. The private sector banks offer various facilities free of cost like pass book and anywhere banking facility to attend and retain the customer. Most of the banks attracted the customers by its retail advertising.

Majority of banks (i.e. 40%) use financial and customization bonds to retain the customer. The information about the services is circulated mostly by the customer and employees of the banks and 56% of the respondents states that they had availed the services of another before coming to private banks and shifted because of better services.The major problem of the customer was improper functioning of ATM facility, 36% of the customers stated that time taken to solve the problem was usually 10-150days.

Deepinder Bajwa (2003)Comparative study of selected public and private sector banks providing car finance in Ludhiana.He concluded in his research that schemes offered by private banks are so alluring that force the customer to go for car finance. The public sector banks are charging higher interest rates. Processing time taken by public sector banks is far more than the private banks. Private banks customer are more satisfied than the public sector banks.

Saibal Ghosh, D.M. Nachane, Aditya Narain, Satyananda Sahoo, department of Economics Analysis and Policy, Reserve Bank of India, Mumbai , IndiaCapital requirements and bank behavior: an empirical analysis of Indian public sector banksConsequent upon the introduction of prudential norms as an integral part of financial sector reforms, the present paper investigated the relationship between changes in risk and capital in the Indian banking sector. A dynamic, multivariate panel regression model is formulated wherein changes in capital ratio depend on lagged value, a range of conditioning variables and regulatory dummies. Analysis reveals that:1. The regulatory framework needs to be designed to encourage individual banks to maintain higher than stipulated capital levels to reflect their differential risk profiles.2. There is no conclusive evidence of risk aversion among Indian banks.

Manpreet Kaur (2005)An evaluation of customer services provided by selected public sector banks in Ludhiana.Among the customers, saving account was most popular form of deposit and recurring deposit was losing its popularity. Behavior of employees and modern technology are the very important factor that influences the customer to visit a particular bank. Most of the customers are satisfied with ATM and debit cards facilities, at the same time customer are facing the problem of long processing time, they are also facing the problem of behavior of bank employees, poor services.

CHAPTER 3NEED, OBJECTIVES & RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY To find the satisfaction level among customers regarding the services provided by the public and private banks. To know in detail about the services provided by some selective Public & Private sector banks.

RESEARCH METHODOLOGYResearch DesignThe research design is a pattern or an outline of a research projects working, it is a statement of only the essential elements study, those that provide the basic guidelines for the details of the project. Further a research design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. It constitutes the blueprint for collection, measurement and analysis of data. Research design stands for advance planning of the methods to be adopted for collecting the relevant data and the techniques to be used in their analysis, keeping in view of the objectives of the research.

The present study, being conducted, followed a descriptive as well exploratory design. It produces a picture of the phenomenon in which the decision maker is interested. As the data would be responses from a sample containing large number of source. Design of descriptive studies includes the nature and source of the data, the nature of expected results and the analytical method.

The research design for my research is exploratory and descriptive, as I will be exploring some new facts about the satisfaction of customer regarding their respective public and private banks and describing the phenomenon in which sector banks are more satisfied and what are the contributing factors causing the satisfaction.For my research total of four banks were selected out of which two Private sector banks and two Public sector banks, namely:

Private Banks: ICICI Bank & HDFC BankPublic Banks: State bank of India Bank & Punjab National Bank.

Data CollectionFor my research study the data has been collected by both the primary & secondary means. The primary data has been collected regarding the different attributes to be considered while preparing the questionnaire. The questionnaire was then designed keeping in mind the objectives of the study.

For primary data collection I adopted the structured questionnaire, which was filled by hundred respondents who were selected randomly, 25 respondents per bank were selected according to convenience so this data collection is convenient random data collection.

The secondary data of my research has been collected through magazines, journals and some previous researches done on comparative study of public and private sector banks.

Data analysisFor the purpose of analyzing, raw data was summarized into a master table and from this table the results have been carried out. The questions that have an alternate choices were analyzed by taking percentages. In the case of exploratory questions, suggestions and major tips have been summarized.

Sampling PlanSampling is an effective step in the collection of primary data and has a great influence on the quality of results. The sampling plan includes the universe, population, sample size and sample design.

UniverseUniverse refers to all the eligible respondents for a particular research around the world.The universe for my research is all the persons of the world who are availing the services of banking services provided by the banks and who are their customers.

PopulationPopulation refers to part of universe from which the sample for conducting the research is selected. Universe & population can be same in some researches.The population for my research is the residents of Ludhiana city who are currently using the banking services of public and private banks

Sampling DesignA sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. The selection of customers was done on the basis of convenience sampling.

Sampling UnitSampling unit refers to smallest possible individual eligible respondent.In my study the sampling unit is single individual respondent consumer who is availing banking services in Ludhiana from respective banks.

Sample sizeSampling size refers to total number of respondents targeted for collecting the data for the research. The sampling size of my study is 100 respondents and this sampling size was selected on the basis of Convenience Sampling and Random Sampling.

CHAPTER 4ANALYSIS OF DATA

1. Do you have Bank Account?a) Yes b) No

As the research is convenience sampling and related to respondents who are availing services of banks so only those customers were targeted who were having bank accounts and using banking services.

2. In which Bank you are having account:a) HDFCb) ICICI c) SBId) PNB

Since it is comparative study of public and private sector banks so four banks were chosen namelyNo. of Respondents1. STATE BANK OF INDIA252. PUNJAB NATIONAL BANK253. HDFC BANK254. ICICI BANK25Total 100

3. Which of the following service of the bank you are using :a) Saving Bank b) Current A/cc) CC Limitd) Demat A/ce) Any other please specify

In the above question 69 respondents were having Saving A/c, 20 were having current A/cs, 7 had CC limits and 4 were having Demat A/c. Out of which in SBI and PNB 36 respondents have Saving A/c, 6 each have Current A/c and CC Limit A/c and 2 have Demat A/c.In HDFC and ICICI Bank 33 are having Saving A/c, 14 have Current A/c, 1 have CC Limit and again 2 have Demat A/c.

4. For how long you are using the services of this bank?a) Less than one yearb) More than 1 to 3 yearsc) More than 3 to 5 yearsd) More than 5 years

10 respondents of SBI & PNB says they are holding account in bank for less than year, 17 says they have more than 1 to 3 years old account, 13 respondents says there account is more than 3 to 5 years old and finally respondents holding account for more than 5 years are 10 only.

14 respondents of HDFC & ICICI bank says less than 1 year have been passed after opening an account, 25 says 1 to 3 years passed, 8 respondents have 3 to 5 years old account, only 3 respondents have opened there account for more than 5 years.

5. Does the faster services provided by the banks, influence your decision in choosing bank:a) Yesb) No.

As interpreted above, in the case of SBI and PNB out of 50 respondents, 47 respondents or 94% feel that their decision while choosing bank is influenced by faster services provided by banks, 3 or 6% feel their faster services does not affect their decision.

For HDFC and ICICI again out of 50 responses received, 41 respondents or 82% says there decision regarding choosing banks is influenced by faster services of the bank, 9 or 18% respondents says faster services of the banks does not affect their decision.

6. Are you satisfied with VAS and ATMs services of the banks: a)Yesb) No

For this question the respondents of both PSU banks and private banks have satisfaction of same level i.e. 94% of the respondents of both public banks and private banks are satisfied by the ATMs and VAS provided by their banks, and only 6% respondents are not satisfied by the ATM and VAS services.

7. Does ATM machines work properly:a) Alwaysb) Most of the timec) Sometimes d) Rarely

19 respondents of SBI and PNB bank says that there ATM always work properly, 26 says ATMs works most of the time, 5 respondents sometimes ATMs works.

23 respondents for the above question of HDFC and ICICI banks customers replied that ATMs always work properly, 21 says it works most of the time, 6 says sometimes it works.

8. The problems faced while using ATM or VAS are:a) Non working b) Non adequate denomination of cashc) Network Problems d) Out of order machinese) Software problems

14% respondents of SBI and PNB are facing the problem of non working of ATMs, 39% says it is due to non adequate of cash in ATMs, 21% feel their problem of ATMs is due to network problems, 14% found their ATMs machines out of order, and 12% respondents problem is due to software problems. 7 respondents does not replied for this question so it is assumed that they have no problem with ATMs. 12% respondents of HDFC and ICICI are facing problem due to non working of ATMs and VAS, maximum 46% respondents face problem of non adequate denomination of cash in ATMs, 12% respondents face problem of network problem, 21% says they have faced out of order machines, 9% says there is sometimes software problem with the ATMs, and 14 respondents does not reply for this question so it is assumed that they have no problem with ATMs and VAS. Here also 7 respondents does not reply for this question so it is assumed that they have no problem at all with the ATMs.

9. How quickly Bank Customer Care staff solve out the problem.a) Within 1 hourb) Within 4 hourc) Within a day

For this question only 9 customer out of 50 of SBI and PNB said that bank solve out their problem within 1 hour, 18 says their problem is solved within 4 hours and 23 says that there problem is solved within a day.

Similarly of HDFC and ICICI bank, 16 customer says that bank customer care staff solve their problem within 1 hour, 12 says that bank solve their problem in 4 hours and 22 respondents say that bank solve their problem within a day.

10. Do the bank inform or call you, after solving the problem:a) Yesb) No

For this 23 respondents of PSU banks says that bank call or inform them after solving the problem, where as 27 says bank does not inform or call them after solving the problem.

For HDFC and ICICI there is 50% response for each as 25 customer says bank inform them and 25 says bank does not inform them after solving the problem.

11. The per day withdrawal limit should be:a) Increasedb) Current limit is adequatec) Not botheredd) Cant say 38% respondents of SBI and PNB says that current per day withdrawal limit of ATM should be increased, 26% says current limit is sufficient, 18% each says they have bothered and they cant say regarding withdrawal limit.

46% of respondents of HDFC and ICICI bank feels that per day withdrawal limit ATMs should be increased, 36% says that current is adequate, 8% says they have not bothered for withdrawal limit, 16% cant say anything regarding withdrawal limit.

12. Do you justify the minimum balance to be maintained with bank?a) Yesb) No.

42 respondents of SBI and PNB bank feel that minimum balance to be maintained is justified, and only respondents says it is unjustified.

38 respondents of HDFC and ICICI bank feel that minimum balance to be maintained is justifiable and only 12 says that maintaining minimum balance is not justified.

13. While using any service at the bank, the time taken to process the service isa) Less than 10 minutesb) Less than 30 minutesc) Less than 1 Hour d) More than 1 hour

10% respondents of the SBI & PNB banks says that they get there work done at banks in less than 10 minutes, maximum 50% respondents says that bank employee takes less than 30 minutes to provide the service, 20% respondents says it takes less than 1 hour to get there work done at banks, and only 14% says that they have to spend more than 1 hour at banks to get the service.

In HDFC & ICICI 36% respondents says that bank employee takes less than 10 minutes to provide the needed service, 42% says that they get there work done in less than 30 minutes, 16% says that they have to approx. or less than 1 hour to get service, and only 6% says that it takes more than 1 hour to get service.

14.What do you think is the response regarding your queries to the bank official?a) Perfect knowledge and satisfies the queryb) Less knowledge and does not clearly satisfy the queryc) They redirect you to some other employee(s).d) Not able to satisfy the query at all

32 respondents of SBI & PNB banks says that the employees have perfect knowledge to quench their query, 11 says they have less knowledge, 6 says they that they redirect to other employee and only 1 respondent says they are not able to handle their query.

38 respondents of HDFC and ICICI bank says that the employees have perfect knowledge while solving their query, 6 says they have less knowledge while handling there query, 4 says they redirect to other employees and 2 respondents says they are not able to satisfy their query.

15. Are you satisfied with charges for services being charged by the bank?a) Yesb) No

42 respondents of public banks says that they are satisfied with charges for services being charged by the bank comparing to 33 responses of private banks saying they are satisfied with charges. Only 8 respondents of public banks are not satisfied regarding the charges for services and 17 responses of private banks are not satisfied with the charges.

16.The charges taken by bank are:a) Reasonableb) Higher compared to other banksc) Lower compared to other banksd) Not bothered e) Cant say

33 respondents of SBI & PNB found charges for services as reasonable, 8 finds them higher, 3 says charges are lower compared with other banks, 1 says not bothered for charges and 5 cant say anything regarding the charges for services.

26 respondents of HDFC & ICICI bank says charges are reasonable, 17 says they are higher comparing with other banks, 5 says they have not bothered for charges and 2 cant say about the charges.

17. Are you facing any problem with the below mentioned reasons: (Please Rank) (1: Maximum problem, 2: Moderate problem, 3: problematic, 4: minimum problem)a) Employees behaviorb) Servicesc) ATM and VAS of the bankd) Bank timings

In Case of SBI & PNB out of 50 respondents only 43 responded for this question of which 21% have maximum problem with bank timings, 24% have moderate problem with services, 27% says employees behavior is problematic factor, and maximum 28% least problem with ATM & VAS. 7 respondents do not reply for this question so it is assumed that they have no problem at all with above factors.

Similarly in case of HDFC and ICICI bank 19% have maximum problem with bank timings, 24% have moderate problem with ATM & VAS, 25% have problematic factor as services and they have least problem with employees behavior 32%, here also 6 respondents do not replied for this question, assuming they have no problem with these factors.

18. Are you over all satisfied with the bank?a) Strongly satisfied b) Satisfiedc) Neutral d) Dissatisfiede) strongly dissatisfied Out of 50 respondents of SBI & PNB, 8 are strongly satisfied, while 28 are satisfied, 12 are neutral that means neither they are on satisfaction side nor dissatisfaction side, 2 are dissatisfied.

In HDFC & ICICI bank, 9 respondents are strongly satisfied, with 31 saying they are satisfied, 9 are neutral on this parameter and 1 is dissatisfied.None of the respondents of any sector bank is strongly dissatisfied with their bank.

CHAPTER - 5SUMMARY, CONCLUSION, LIMITATIONS & RECOMMENDATIONS

Summary Majority of the respondents have Saving Account followed by the Current Account, then CC Limit, and lastly Demat Accounts. Only 14%-15% of respondents go to bank daily, maximum 30% visits bank once in week, followed by 26% visiting once or twice per month. Public bank customers have account for longer duration as compared to private banks, this is due to changing perception of people regarding private banks. Faster services provided by banks is a dominating factor in case of banks, all banks customer consider faster services as most important. 94% customers of public banks compared to 82% of private banks says they consider faster services as influential factor while choosing banks. Satisfaction level in case of ATM services is equal in both public and private banks. Private banks ATMs works more properly compared to public banks. Majority of Public banks ATM works properly most of the time, whereas Private banks ATMs are more properly working. Private banks customer are more satisfied in case of ATM working as compared to Public banks. Even though maximum problem is faced because of non adequate denomination of cash, this problem is more faced by private bank customers. Private banks customer can get their problem solved in lesser time comparing with public banks, public banks take more time in solving the problem. There is mixed response from private banks customer that after solving the problem banks info