project of banking andfinance

7/31/2019 Project of Banking Andfinance

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APROJECT REPORTON

BANKING AND FINANCE CUSTOMER

STISFACTION SURVEY

SUBMITTED BY: SUBMITTED TO:

PANKAJ SHARMA MEENAKSHI BORDIA


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TABLE OF CONTENT

Topic Page No.

Acknowledgement I

History of Bank 1

Objective of the Research 3

Scope of the Research 4

Sampling Method & Technique 6

Focus Group Interview 8

Data Analysis 11

Major Findings 24

Questionnaire 25

Bibliography 27


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ACKNOWLEDGEMENT

I express sincere thanks to Prof. Meenakshi Bordia who giving us the

opportunity to select a company which provided training of 20days. He took

personal interest in our training so that we could utilize our potential. We arevery thankful for her valuable guidance, encouragement and cooperation.

It is well-established fact behind every achievement lays an unfathomable sea

of gratitude to those who have ever come in to existence. It gives me a great

pleasure in acknowledging the invaluable assistance extended to me by

various personalities in the successful completion of this project. Same is true

with my survey in banking and finance at Jaipur, Rajasthan. I would like to

thanks the following people for their support & guidance without which

dimensions in my survey. I am heartily thankful to JSB (Jaipur School ofbusiness) jaipur. I also thank to the people who directly and indirectly

supported Sudhir Kumar pal, Tejpal Singh, Yusuf Khan, Shailendra Patidar,

Sumer Meena, Santos Kumar Dusad, Tanuj Sharma, Vijay Patidar, Sohan

Singh, Shiv Shankar and Ved Parkas for the successful fulfillment of my

survey of Banking and finance.


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History of bank in India

Banking in India originated in the last decades of the 18th century. The first banks

were The General Bank of India, which started in 1786, and The Bank of

Hindustan, which started in 1790; but both are now defunct. The oldest bank of

India is the State Bank of India, which originated as the Bank of Calcutta in June

1806, which almost immediately became the Bank of Bengal. This is the largest

commercial bank in the country. This was one of the three presidency banks, the

other two being the Bank of Bombay and the Bank of Madras, all three of which

were established under charters from the British East India Company.

Central banking is the responsibility of the Reserve Bank of India, which in 1935

formally took over these responsibilities from the then Imperial Bank of India,

relegating it to commercial banking functions. After India's independence in 1947,

the Reserve Bank was nationalized and given broader powers.

In 1969 the government nationalized the 14 largest commercial banks; the

government nationalized the six next largest in 1980. Currently, India has 88

scheduled commercial banks (SCBs) - 27 public sector banks (that is with the

Government of India holding a stake), 31 private banks (these. do not havegovernment stake; they may be publicly listed and traded on stock exchanges) and

38 foreign banks. They have a combined network of over 53,000 branches and

17,000 ATMs.
http://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bengal


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According to a report by ICRA Limited, a rating agency

Nationalization

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.The Reserve Bank of India, India's central banking authority, was

nationalized on January 1, 1949 under the terms of the Reserve Bank of India

(Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[Reference

www.rbi.org.in]

In 1949, the Banking Regulation Act was enacted which empowered the ReserveBank 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.

75%

18%

7%

Chart Title

public sector banks

private sector banks

foreign banks
http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://www.rbi.org.in/http://www.rbi.org.in/http://en.wikipedia.org/wiki/Reserve_Bank_of_India


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Liberalization

In the early 1990s, the then Narasimha Rao government embarked on a policy

ofliberalization, licensing a small number of private banks. These came to be

known as New 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, Axis Bank(earlier as UTI Bank), ICICI

Bankand HDFC Bank. This move, along with the rapid growth in the economy of

India, revitalized 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.

Difference between nationalized banks & private banks.

Nationalized banks are those banks where the Govt. holds more than 51 % of the

paid up equity shares capital and the management of the banks are vested in the

hands of the Govt. nominated Directors.

The private banks are those where the share capital is held by the public not the

Government and the management is vested in the hands of Directors elected byshare holders. The banking policies for both private and nationalized banks are

framed by the Central Bank. In India the RBI is the central bank.

Objectives of the Research

The first step in any research is deciding what we want to learn. The objectives of

the project determine whom we will survey and what we will ask them. If our

goals are unclear, the results will probably be unclear. Objectives are the keys toproceed forward in any research.

To study the kind ofservices provided by the Bank to the customers.

To find out whether the customers are satisfied by the services and facilities

provided by the Bank.
http://en.wikipedia.org/wiki/Narasimha_Raohttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/ICICI_Bankhttp://en.wikipedia.org/wiki/UTI_Bankhttp://en.wikipedia.org/wiki/Axis_Bankhttp://en.wikipedia.org/wiki/Liberalizationhttp://en.wikipedia.org/wiki/Narasimha_Rao


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To find out how frequently do the correspondents do?

To find out what are the factors correspondents are dissatisfied with.

To find out what are the factors correspondents are satisfied with.

Scope of the Research

Helps in identifying the factors which can help the Nationalized Bank toimprove their services and facilities.

Helps in creating awareness what are the factors the customers are lookingfor when they go for loan.

Helps in identifying the age group of the respondents who go for opening anaccount in the bank.

Helps in adopting suitable strategies for \improvement in the servicesand facilities being provided.

Helps in determining the average amount of loan provided to the customersincome.

Research methodology

Research is a diligent and systematic inquiry or investigation into a subject in

order to discover or revise facts, theories and application, etc.

Methodology is the system of methods followed by a particular discipline. Thus

research methodology is a way how we conduct our research.

The basic concept of research methodology refers to the way in which companies

conduct their research and how they collect the data they need. Whenever a

company or organization needs to investigate a particular area of their business

dealings, they need to adapt the most suitable research methodology for the job.

Research methodology typically involves a full breakdown of all the options that

have been chosen by a company in order to investigate something. This would

include the procedures and techniques used to perform the research; as well as any


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of the terminology and explanations of how these methods will be applied

effectively.

A company may need to decide what format of research they want to use before

the investigation begins. For example, if a company that sells a particular productneeds to launch research to find out how effective or desirable a new product is,

they will need to conduct what is known as primary research. This method means

that the company will collect data and information themselves first hand.

Alternatively, a company many only require figures or statistical findings that can

be located from an external source to themselves. This is known as secondary

research, and this area of research methodology typically involves reading

published journals, newspapers and other materials to give companies theinformation they need second hand.

However, research methodology is not always pin-point specific. Many areas of

research methodology may simply be referring to a generic path or method that a

company will apply in order to retrieve the information they need.

Research methodology is the way in which researchers specify how they are going

to retrieve the all-important data and information that companies will need to make

vital decisions.

Research Design

Research design is a set of advance decisions that make up the master plan

specifying the methods and procedures for collecting and analyzing the needed

information.

A research design is a framework or blueprint for conducting the market research.

It Details the procedures necessary for obtaining the information needed tostructure and/ Or solving market research problem. In other words, research design

constitutes the Blueprint for the collection, measurement and analysis of data. It

aids the scientist in the allocation of his limited resources by posing crucial

choices.


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Research design provides the glue that holds the research project together. A

design is used to structure the research, to show how all of the major parts of the

research project -- the samples or groups, measures, treatments or programs, and

methods of assignment -- work together to try to address the central research

questions.

The research design is classified into three kinds they are as follows-

Descriptive Research Exploratory Research Casual Research

Descriptive Research

Descriptive Research relies heavily on interview of respondents and data available

in secondary data sources. Descriptive research is proper when the research

objectives include the following:-

i) Portraying the characteristics of social or physical phenomena and determining

the Frequency of occurrence.

ii) Determining the degree to which the variables are associated (however, cause-

and effect relationships, discussed under causal research design, are different from

Measurements of degrees of association in descriptive research design).

iii) Making predictions regarding the occurrence of social or physical phenomena.

Exploratory research

Exploratory research is conducted into an issue or problem where there are few or

no earlier studies to refer to. The focus is on gaining insights and familiarity forlater investigation.

Secondly, descriptive research describes phenomena as they exist. Here data is

often quantitative and statistics applied. It is used to identify and obtain

information on a particular problem or issue. Finally causal or predictive research

seeks to explain what is happening in a particular situation. It aims to generalize


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from an analysis by predicting certain phenomena on the basis of hypothesized

general relationships.

Causal Research

Causal Research explores the effect of one thing on another and more specifically,

the effect of one variable on another.

The research is used to measure what impact a specific change will have on

existing norms and allows market researchers to predict hypothetical scenarios

upon which a company can base its business plan.

For example, if a clothing company currently sells blue denim jeans, causal

research can measure the impact of the company changing the product design to

the color white.

Following the research, company bosses will be able to decide whether changing

the color of the jeans to white would be profitable.

To summaries, causal research is a way of seeing how actions now will affect a

business in the future.

Causal Research relies on interviews and in the conduct of experiments. Causal

research is proper when the research objective is to identify variables that cause the

phenomenon being predicted and understand why they cause what is beingpredicted.

Sampling Method and Technique Used

There are many sampling methods which are taken by the need of the survey

report; all these methods are helping out for effective use of respondents response

in a positive way.

Some of the techniques are these:

Random Sampling

The first statistical sampling method is simple random sampling. In this method,

each item in the population has the same probability of being selected as part of the

sample as any other item.


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Systematic Sampling

Systematic sampling is another statistical sampling method. In this method, every

element from the list is selected as the sample, starting with a sample element n

randomly selected from the first k elements.

Stratified Sampling

The statistical sampling method called stratified sampling is used when

representatives from each subgroup within the population need to be represented in

the sample. The first step in stratified Sampling is to divide the population into

subgroups (strata) based on mutually exclusive criteria.

Random or systematic samples are then taken from each subgroup.

Cluster Sampling

The fourth statistical sampling method is called cluster sampling, also called block

sampling. In cluster sampling, the population that is being sampled is divided into

groups called clusters.

Instead of these subgroups being homogeneous based on a selected criterion as in

stratified Sampling, a cluster is as heterogeneous as possible to matching the

population. A random Sample is then taken from within one or more selectedclusters.

Judgmental Sampling

Another non-statistical sampling method is judgmental sampling. In judgmental

sampling, the person doing the sample uses his/her knowledge or experience to

select the items to be sampled.

For example, Based on experience.

We can use any technique which is suitable for our project.

Sample size


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Sample size is also a very important aspect in research design. It means how many

respondent we want for our survey completion.

Focus Group Interview

On the basis of the focus interview conducted with some experts of the banking

sector and those who have served accounts in both the sectors. Where able to

construct the questions in a better way. An in depth practical knowledge was

gained, by us, which, immensely helped us to know about the various services

offered by the banks in India. The comparative analysis they gave us was quite

appreciable their personal experiences added to our bucket of banking knowledge.

Major findings of focus group interview-

1. Paper work more2. Easy accessibility to banking services in private bank (For example-No

account transfer needed in change of state.)

3. Excellent customer hospitality by private bank.4. Excellent atmosphere were customer is force to except beyond banking.

Sample size = 200

Descriptive Research:

We have used descriptive research design for this survey.

Cross Sectional Design:

We have used cross sectional design for this survey.

Sampling Technique

Convenience sampling attempts to obtain a sample of convenient elements. Often,

respondents are selected because they happen to be in the right place at the right

time.


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Cluster Sampling:

Out ofvarious clusters made of jaipur we choose.

1. Vaishali Nagar2. Mansarovar3. M. I. Road

In these selected areas we went

National Handloom Easy Day Nursery Park V.T Chauraha Sward Path High court Albert Hall Ganpati Plaza Lifestyle

Here we did convenience Sampling.

Sources of data

Primary source:

Focus group Interview Structured questionnaires Mall-Intel

Secondary source:

Internet BRM Books Trade jaw


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Tools Used For Data

Statistical tools:The statistical tools used for analysis is percentage method

and data has been tabulated and represented using bar graph and pie charts.

Software Tools:The software used for the data analysis is Microsoft excel and

Microsoft word.

Limitations of the study

The method used for collecting the data is time consuming.

The data collected from the study may be ambiguous in few cases.

Difficult to collect the information from the respondents completely at the time of

the study.

Due to shortage of time the survey had to be restricted only in few areas, hence

could not cover all areas of the city

Data Analysis and Interpretation

Data analysis refers to the computation of certain measures along with searching

for patterns of relationship that exist among data groups.

This is essential for a scientific study and for ensuring that we have all relevant

data for making contemplated comparisons and analysis.

Interpretation refers to the task of drawing inferences from the collected facts

after an analytical and/or experimental study. In fact, it is a search for broader

meaning of research findings.

Interpretation is essential for the simple reason that the usefulness and utility of

research findings lie in proper interpretation. It is being considered as a basic

component of research process.


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Table No. -1 Bank Account of the respondent

Have any Bank

Account

yes No

Total 200 0

Percentage 100% 0%

Interpretation:

From the above table it can be interpreted that 100% respondents have A/c in the

bank.

Graphical representation of the respondents who have bank account.

Primary Sources Sample Size200

yes no


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Table No.-2 if yes then specify?

If yes then specify Private bank Public bank Both

Total 103 23 74

Percentage 51.5 11.5 37

Interpretation:

From the above table it can be inferred that 51.5% respondents have private bank

account and 11.5% respondents have public bank account and 37% respondents

have accounts in private bank and public bank.

Graphical representation of respondent who have bank a/c in

public,Private and in both a/c

Sources - primary Sample size200

private

51%public

37%

both

12%

respodent


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Table no.3 Rate the service of your bank.

Rate the service of your

bank

Excellent Average Poor

Total 67 86 47

percentage 33.5 43 23.5

Interpretation:

From the above it can be interpreted that about 34% of the respondents have said

Excellent, 43% of average and the remaining about 24% respondents have said

poor.

Graphical representation of respondents rate the service of your

bank.

Sourcesprimary Sample size - 200

Excellent

Average

Poor

67

86

47

33.5

43

23.5


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Table no.4 borrowed any loan? Then specify

Borrowed any

loan

Private Bank Public Bank No

Total 63 94 43

percentage 31.5 47 21.5

Interpretation:


Public Bank And 31% of private Bank and the remaining about 22% respondents

have not taken any loan.

Graphical representation of respondents who borrowed loan

SourcePrimary Sample Size200

0%

31%

47%

22%

Have you borrowed any loan?

Borrowed any loan Private Bank Public Bank No


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Table No. 5 Paper work procedure for the loan?

Paper work procedure Easy Difficult

Total 102 98

percentage 51 49

Interpretation:


Easy and the remaining 49% respondents have said difficult.

Graphical representation of respondents said easy and difficult

SourcesPrimary Sample Size200

Easy Difficult

102 98

51 49

Paper work procedure for the loan

Total percentage


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Table No.6 Were there any hidden charges?

Any hidden charges? Yes No

Total 96 104Percentage 48 52

Interpretation:

From the above it can be interpreted that 52% of the respondents said No and

The remaining 48% said yes.

Graphical representation of respondents said yes and no

SourcesPrimary Sample Size200

0

96

48

0

104

52

Total Percentage

hidden charges?

Yes No


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Table No.7 Satisfied with the rate of interest of your bank loan?

Satisfied with the rate of interest

of your bank loan?

Yes No

Total 42 158

Percentage 21 79

Interpretation:

From the above it can be interpreted that about 79% of the respondents

are not satisfy with the rate of interest and the remaining respondents about 21%

respondents satisfy with the rate of interest of the bank.

Graphical representation of respondents is happy rate of interest

42 158

21 79

Yes No

Satisfied with the rate of interest of your bank loan?

Total Percentage


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Table No.8: Any hidden charges?

Hidden Charges Yes No Didnt

Total 86 81 25

Percentage 43% 41% 11%

Interpretation:

From the above data there is 43% says yes, in the same 41 % respondents says no,

and remaining 11% didnt answer this question. It indicates the average peoplehave information about the banks hidden charges.

Graphic representation of hidden charges of banks:

Source: primary sample size: 200

0% 10% 20% 30% 40% 50%

no

did'nt answer

yes


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Table No: -10 bothered by the bank for the payment of the loan?

Bothered by

payment of bank for

loan

Yes No Didnt

Total 70 108 22

Percentage 35% 54% 11%

Interpretation:

In this question the 35% respondents show they are bothered by the bank for the

payment. The 54% respondents say no it means they are really bothered for thepayment of the loan. In this same question the 11% respondent didnt give the

answer. Its shows the more persons didnt bothered by the payment of bank loan.

Graphic representation of respondents bothered by payment of bank loan:-


35%

54%

11%

yes no did'nt


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Q. no. 11:- What type of a/c do you have in the bank?

Account types Saving a/c Current a/c Salary a/c other

Total 114 17 67 02

percentage 57% 8.50% 33.50% 1%

Interpretation:

From the above table it can be interpreted that. Around 57% respondents have the

savings A/c8.50% respondents have the current a/c, 33.50% are have salary a/c and

only 1% respondents have other a/cs in the banks it shows the majority of the a/c

holders are having saving a/c or salary a/c.

Graphic representation of types of A/c:


57%

8%

34%

1%

saving a/c current a/c salary a/c other


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Q.no.12: Are you satisfied with the paper work done for the A/c?

Satisfy with paper

work

yes no Didnt

Total 158 33 9

Percentage 79% 16.5% 4.5%

Interpretation:

From the above table it can be inferred that 79% respondents say yes for they are

satisfy with the paper work done by the bank, and only 16.5% respondents shows

they are not satisfy. So by this data it can be assumed more peoples satisfy with

paper work.

Graphic representation of satisfy with paper work:

Source: primary Sample size: 200

0% 20% 40% 60% 80%

yes

no

did'nt

yes no did'nt

79% 16.50% 4.50%


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Q. no. 13:- Have you given any free offering with your bank A/c?

Free

Offerings

Lockers Credit Card Fixed

Deposit

Overdraft Others

Total 22 56 79 20 23percentage 11% 28% 39% 10% 12%

Interpretation:

From the above table it can be inferred that 11% says they have lockers with their

a/c by offering, 28% says credit cards, 39% says fixed deposits, 10% says

overdraft and 12% says they get other offerings with their A/c.

Graphical representation of free offerings by banks:

Sources- Primary Sample Size- 200

11%

28%

39%

10%

12%

Locker

Credit card

Fixed Diposit

Overdraft

Did'nt


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Table No. 14 rate your bank.

Rate your bank Excellent Very Good Average Poor

total 40 42 88 15

Percentage 20 21 44 15

Interpretation -From the above it can be interpreted that about 20% of the

respondents rate their bank excellent, 21% very good, 44% average and the

remaining were 15% rated poor.

Graphical representation of banks rating

Source- Primary Sample aize-200

20%

21%44%

15%

Chart Title

Excellent Very good Average Poor


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Major Findings:

51.5% respondents have private bank account and 11.5% respondents have public

bank account and 37% respondents have accounts in private bank and public bank.

20% of the respondents rate their bank excellent, 21% very good, 44% average

and the remaining were 15% rated poor.

11% says they have lockers with their a/c by offering, 28% says credit cards, 39%

says fixed deposits, 10% says overdraft and 12% says they get other offerings with

their A/c.

79% respondents say yes for they are satisfy with the paper work done by the bank,and

Only 16.5% respondents show they are not satisfied. So by this data it can be

assumed

More peoples satisfy with paper work.

35% respondents show they are bothered by the bank for the payment. The 54%respondents say no it means they are really bothered for the payment of the loan. In

this same question the 11% respondent didnt give the answer. Its shows the more

persons didnt bothered by the payment of bank loan.

43% says yes, in the same 41 % respondents says no, and remaining 11% didnt

answer this question. It indicates the average people have information about the

banks hidden charges.

79% of the respondents are not satisfying with the rate of interest and the

remaining respondents about 21% respondents satisfy with the rate of interest of

the bank.


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Questisonnaire

Gender -_________________ Age-_____

Occupation-_______________________

Do you have any bank account?Yes No

If yes then specifyPrivate Bank Public Bank

How would you rate the services of your bank?Excellent Average Poor

Have you borrowed any loan? Then specifyPrivate Public

How was the paper work procedure for the loan?Easy Difficult

Were there any hidden charges?Yes No

Are you satisfied with that interest on your loan?Yes No

Do you get a regular information on when pay yourdues from your bank?


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Yes No

Have you ever bothered by the bank for the payment ofthe loan?

Yes No

What type of account do you have in the bank?Saving A/C Current A/C

Salary A/C Other A/C

Are you satisfied with the paper work done for theAccount?

Yes No

Have you given any free offering with your bankaccount?Locker Credit card FD OD

Rate the following for the sales man / banker youcommunication with?

Awareness-Excellent very good GoodHelpfulness- Yes No

Rate your bank?Excellent Very good Average Poor

Have you got any suggestion to improve the bankservices.

.


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Bibliography

C.R. Kothari

Ronald S. Rubin

Donald S. Tull

Del I. Hawkins

Naresh K. Malhotra

David J. Luck

WWW.Google.Com


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