HRD CLIMATE COMPARATIVE STUDY OF PUBLIC SECTOR AND PRIVATE SECTOR BANK

Abstract
The business organizations are attaching great importance to human resource because human resources are the biggest source of competitive advantage and has the capability of converting all the other resources in to product/service. The effective performance of this human resource depends on the type of HRD climate that prevails in the organization, if it is good than the employees performance will be high but if it is average or poor then the performance will be low. The study of HRD climate is very important for all the organization and the banking sector is not an exception, especially in the present situation of financial recession. The present study is an attempt to find out the type of HRD climate that is prevailing in public sector banks in Ahmedabad. The researcher have also tried to find out the difference in the perception of employees regarding HRD climate on the basis of age, gender, designation, qualification. The researcher collected the data from the employees of selected public sector banks using

structured HRD climate questionnaire .The data were analyzed using several statistical tools such as mean, standard deviation, percentiles, Z test. The result shown that the HRD climate in public sector banks is average and the perception of employees regarding the HRD climate do not differs significantly on the basis of gender, qualification and designation but it differs significantly on the basis of age . The paper ends by offering useful suggestions to the management involved in the operations of the banks.

Someone has rightly said that practical experience is for better and closer to the real world then mere theoretical exposure. The practical experience helps the students view the real world closely, which in turn widely influences their perceptions and argument their understanding of the real situation. .

TABLE OF CONTENTS

CHAPTER PARTICULARS NO.

1 2 3 INTRODUCTION OF THE STUDY OBJECTIVES OF THE STUDY 3.1 RESEARCH METHODOLOGY 3.2 LIMITATIONS OF THE STUDY DATA ANALYSIS AND ITS INTERPRETATION FINDING OF THE STUDY SUGGESTIONS CONCLUSION BIBLIOGRAPHY ANNEXURE

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1-23 24-25 26-36 37 38-46 47-50 51-54 55-56 57-58 59-62

4 5 6 7 8 9

Introduction
If we need to find a way to develop employees in order to become effective contributors to the goals of an organization, we need to have a clear view of what an effective contribution would look like. The use of personal capacities can be very helpful in describing the way in which an effective employee should operate and behave, but there can be no general prescription of an effective employee. Effectiveness will differ with organizational context, and on whose perspective we are adopting. The matter of what, finally, makes an effective employee is a combination of personality, natural capabilities, developed skills, experience and learning. The process of enhancing an employees present and future effectiveness is called development. Meaning of HR+D+Climate HR means employees in organization, who work to increase the profit for organization. Development, it is acquisition of capabilities that are needed to do the present job, or the future expected job. After analyzing Human Resource and Development we can simply stated that, HRD is the process of helping people to acquire competencies. Climate, this is an overall feeling that is conveyed by the physical layout, the way employees interact and the way members of the organization conduct themselves with outsiders. (It is provided by an organization.) Organizational climate is a set of characteristics of an organization which are referred in the descriptions employees make of the policies, practices and conditions which exist in the working environment. Abraham An organization became dynamic and growth oriented if their people are dynamic and pro-active. Through proper selection of people and by nurturing their dynamism and other competencies an organization can make their people dynamic and proactive. To survive it is very essential for an organization to adopt the change in the environment and also continuously prepare their employees to meet the challenges; this will have a positive impact on the organization.

What is needed to Develop Organizational Climate in Organization

Top to Bottom effort : - Organization is considered to be complete organization after including top authority to bottom line of workers. And whenever we talk about development at organizational level effort is needed from top level to bottom level. Top authority should not have thinking in their mind that their task is to only take

decisions but they should also emphasized on proper implementation of decision by adopting various controlling technique. Bottom level workers should have loyal mindset towards their organization. Bottom level workers have to work with dedication. They should have realisation that organization is their organization. Motivator role of Manager and Supervisor : - To prepare Human Resource Development Climate, Manager and Supervisors responsibilities are more or we can say that they are the key players. Manager and Supervisors have to help the employees to develop the competencies in the employees. To help the employees at lower level they need to updated properly and they need to share their expertise and experience with employees. Faith upon employees : - In the process of developing HRD Climate employer should have faith on its employees capabilities. Means whatever amount is invested that should be based on development of employees. Top management should trust the employees that after making huge effort to develop employees, employees will work for the well being of organization and for human being also. Free expression of Feelings : - Whatever Top management feels about employees they have to express to employees and whatever employees think about top management it must be express in other words we can say that there should not be anything hidden while communication process. Clear communication process will help to establish the HRD Climate. Feedback : - Feedback should be taken regularly to know the drawbacks in system. This will help to gain confidence in employees mind. Employee will trust on management and he can express his opinion freely which is very good for HRD Climate. Feedback will help to remove the weakness. Helpful nature of employees : - Whenever we talk about 100% effort then we have to talk about employees effort too. Nature of employees should be helping for management and for its colleagues. They should be always read to help to customers too. Supportive personnel management: - Personnel policies of organization should motivate employees to contribute more from their part. Top managements philosophy should be clear towards Human Resource and its well being to encourage the employees. Encouraging and risk taking experimentation : - Employees should be motivated by giving them authority to take decision. This concept is risky but gradually it will bring expertise in employees to handle similar situation in future. It will help to develop confidence in employees mind. Organisation can utilize and develop employees more by assigning risky task. Discouraging stereotypes and favouritism : - Management need to avoid those practices which lead to favouritism. Management and Managers need to give equal importance. Those people who are performing good they need to appreciated and those who are not performing good they need to be guided. Any kind of partial behaviour should be avoided. Team Spirit : - There must be feeling of belongingness among the employees, and also willingness to work as a team.

Components of HRD Climate

The organizational climate consists of: Organisational StructureAn organizations structure is actually a snapshot of a work process, frozen in time so that it can be viewed. The structure enables the peoples energy to be focused towards process achievement and goal achievement. Employee must have a clear definition of not only the work structure but also the role used to organize the work. If the structure and the role is not clear, people will not know what the work process is, who is responsible for what, whom to go for help and decision, and who can Assist in solving problems that may arise. Organisational CultureOrganisational culture is the pattern of beliefs, knowledge, attitudes, and customs that exists within an organisation. Organizational culture may result in part from senior management beliefs or from the beliefs of employees. Organizational culture can be supportive or unsupportive, positive or negative. It can affect the ability or willingness of employees to adapt or perform well within the organisation. The most effective work culture is one that supports the organizations HR strategies by aligning behaviors, processes and methods with the desired results. It is not just achieving results but the methods through which they are achieved that are critical to long-term success. Before any HR strategy is designed there must be a clear understanding of the organisation, its current values, its structure, its people as well as its goals and vision for the future. HR ProcessesThe HR system of an organisation should be comprehensive enough to take care of employees from the time they join till the time they leave HR. Their demands must not be ignored, but a feeling of belongingness be created. Process should be very clear and impartial, so that employees faith in organisation. From recruitment to retirement whole process should be according to employees expectation and ability of employer.

Importance of looking at the organisation climate are: Looking at the organizational climate, which means taking a closer look at what is happening in and around in the HR scenario of the various organization. It is essential to work on because directly or indirectly this environment affects the organization and the employee. Importances are:

 Environmental factors of HR are prime influencing elements of change in HR strategy. It gives HR professionals time to anticipate opportunities in HR area and time to plan optional responses to these opportunities. It helps HR professionals to develop an early warning system to prevent threats emerging out from HR scenario, or to develop strategies, which can turn a threat. It forms a basis of aligning the organisation strengths to the changes in the environment. It enables the entry of the latest national/international HR developments.

Measuring HRD Climate

Economic condition An organisations economic condition influences its culture in several ways. The more prosperous an organisation is the more it can afford to spend on research and the more it can afford to risk and be adventurous. Leadership Style : An organisation leadership style plays a profound role in determining several aspects of its culture. An authoritarian style may make the organisations culture characterized by high position structure, low individual autonomy, low reward orientation, low warmth and support and so on, or it may be opposite, like goal directed leadership. Managerial assumption about human nature : Every act on the part of the management that involves human beings is predicated upon assumptions, generalizations and hypotheses relating to human behaviour. There are two theories of behaviour (Theory X and Theory Y). Managerial values and ethos : The feeling of managers about norms and values what is good and what is poor as management practice. There are few dimensions on which it can be checked. They are self-awareness, risk-taking, participation, bureaucracy, equity, employees security and growth. Organisation size : An small organizations there are few levels of management, these are generally more amenable to democratic and participative functioning than big organisations. More open communication system in small organisations. Hence these organisations have a different type of climate than what are in big organizations.

HRD Climate and Communication

The communications that arise not out of formal relations between people but out of informal or social relationship is called the grapevine or informal communication. The management has no absolute control over this type of communication as they neither created nor destroyed it. Communication need not flow through authority-responsibility relationship or channels of organization in informal communications. In informal communication there is no formal superior subordinate relationship. The informal communication does both good and bad to the organization. The advantages of informal communication are: 1. It acts as a driving force to untie the workforce in cases of common matters; 2. It saves time and energy as the information flows at high speed; 3. It has immediate response from the receiver; 4. It provides the scope for creation of new ideas; 5. It satisfies the communication needs of various employees, 6. It provides scope for immediate feedback. Informal communication suffers from various drawbacks. They are: a) Informal communication sometimes spreads wrong information and rumours; b) It distorts information; c) Grapevine provides only inadequate information; d) Information provided through grapevine has no formal authority; and e) It overlooks superiors. The most effective communication results when managers utilize the informal organization to supplement the communication channels of the formal organization. It should be remembered that it is a part of the managers job to have a little control over this informal communication so that he can take the appropriate action to minimize the adverse effect of this channel. Organizational climate is very important in the context of communication. Organizational climate is the summary perception

which people have about an organization. It is thus a global expression of what the organization is: Organizational climate refers to a system of shared meaning held by members that distinguishes the organization from other organizations. The characteristics of organizational climate are: 1. Individual Initiative: The degree of responsibility, freedom and independence that individuals have. 2. Risk Tolerance: The degree to which employees are encouraged to be aggressive, innovative and risk-seeking. 3. Direction: The degree to which the organization creates clear objectives and performance expectations. 4. Integration: The degree to which units within the organization are encouraged to operate in a coordinated manner. 5. Management Support: The degree to which managers provide clear communication, assistance and support to their subordinates. 6. Control: The number of rules and regulations and the amount of direct supervision that is used to oversee and control employee behavior. 7. Identity: The degree to which members identify with the organization as a whole rather than with their particular workgroup or field of professional expertise. 8. Reward System: The degree to which reward allocations are based on employee performance. 9. Conflict Tolerance: The degree to which employees are encouraged to air conflicts and criticisms. 10. Communication Patterns: The degree to which organizational communications are restricted to the formal hierarchy of authority. Communicating with the Employees Both formal as well as informal communication channels are used to communicate with the employees. In addition to following written

communication, oral and nonverbal communication should be relied upon. In addition to downward communication to communicate rules, procedures and programs of the organization to employees, employees should also be encouraged to communicate to their superiors. In order to make use of team work, all channels of communication or star communication pattern should be encouraged. Interpersonal communication should be encouraged with a view to develop interpersonal relations. Employees should also be encouraged to develop effective and active listening skills.

HRD SOME CONCEPTS

HRD is mainly concerned with developing the skill, knowledge and competencies of people and it is people-oriented concept. When we call it as a people-oriented concept the question of people being developed in the larger or national context or in the smaller organizational context? Is it different at the macro and micro level? HRD can be applied both for the national level and organizational level. But many personnel managers and organizations view HRD as synonymous to training and development. Many organizations in the country renamed their training departments as HRD departments. Surprisingly some organizations renamed their personnel department as HRD departments. Some educational, institutions started awarding degrees and diplomas in HRD even though the concept is not yet crystal clear.

HRD from organizational point of view is a process in which the employees of an organization are helped/motivated to acquire and develop technical, managerial and behavioral knowledge, skills and abilities, and mould the values, beliefs, attitude necessary to perform present and future roles by realizing highest human potential with a view to contribute positively to the organizational, group, individual and social goals. A comparative analysis of these definitions shows that the third definition seems to be comprehensive and elaborate as it deals with the developmental aspects of all the components of human resources. Further, it deals with all types of skills, the present and future organizational needs and aspect of contribution to not only organizational also other goals. The analysis of the third definition further shows that there are three aspects, viz., 1. Employees of an organization are helped/motivated; 2. Acquire, develop and mould various aspects of human resources; and 3. Contribute to the organizational, group, individual and social goals. The first aspect deals with helping and motivating factors for HRD. These factors may be called Enabling factors which include: Organization structure, organizational climate, HRD climate, HRD knowledge and skills to managers, human resource planning, recruitment and selection. The second aspect deals with the techniques or methods which are the means to acquire develop and mould the various human resources. These techniques include: Performance, appraisal, Potential appraisal, Career planning and Development, Training, Management development, Organizational development, Social and Cultural programs, and Workers participation in management and quality circles. The third category includes the outcomes contribution of the HRD process to the goals of the organization, group, individuals and the society.

The world of banking has assumed a new dimension at dawn of the 21st century with the advent of tech banking, thereby lending the industry a stamp of universality. In general, banking may be classified as retail and corporate banking. Retail banking, which is designed to meet the requirement of individual customers and encourage their savings, includes payment of utility bills, consumer loans, credit cards, checking account and the like. Corporate banking, on the other hand, caters to the need of corporate customers like bills discounting, opening letters of credit, managing cash, etc. Metamorphic changes took place in the Indian financial system during the eighties and nineties consequent upon deregulation and liberalization of economic policies of the government. India began shaping up its economy and earmarked ambitious plan for economic growth. Consequently, a sea change in money and capital markets took place. Application of marketing concept in the banking sector was introduced to enhance the customer satisfaction the policy of privatization of banking services aims at encouraging the competition in banking sector and introduction of financial services. Consequently, services such as Demat, Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to the needs of public. An important agenda for every banker today is greater operational efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious: customer delight. The introduction to the marketing concept to banking sectors can be traced back to American Banking Association Conference of

1958. Banks marketing can be defined as the part of management activity, which seems to direct the flow of banking services profitability to the customers. The marketing concept basically requires that there should be thorough understanding of customer need and to learn about market it operates in. Further the market is segmented so as to understand the requirement of the customer at a profit to the banks.

DEFINITION OF BANK
The Oxford dictionary defines the Bank as, An establishment for the custody of money, which it pays out, on a customers order. According to Whitehead,

 A Bank is defined as an institution which collects surplus funds from the public, safeguards them, and makes them available to the true owner when required and also lends sums be their true owners to those who are in need of funds and can provide security. Banking Company in India has been defined in the Banking Companies act 1949, One which transacts the business of banking which means the accepting, for the purpose of lending or investment of the deposits of money from the public, repayable on demand, or otherwise and withdraw able be cheque, draft, order or otherwise. The banking system is an integral subsystem of the financial system. It represents an important channel of collecting small savings form the households and lending it to the corporate sector. The Indian banking system has Reserve Bank of India (RBI) as the apex body for all matters relating to the banking system. It is the central Bank of India. It is also known as the Banker To All Other Banks.

EVOLUTION OF INDIAN BANKING

Ancient banking system of India constituted of indigenous bankers. They have been carrying on their age-old banking operations in different parts of the country under different names. The modern age of banking constitutes

the fundamental basis of economic growth. The term Bank is being used since long time but there is no clear conception regarding its beginning. According to the viewpoint, in good old days. Italian money leaders were known as Banchi because they kept a special type of table to transact their business.

IMPORTANCE OF BANKS
Today banks have become a part and parcel of Kotak Bank's life. There was a time when dwellers of the city alone could enjoy their services. Now banks offer access to even a common man and their activities extend to areas hitherto untouched. Banks cater to the needs of agriculturalists, industrialists, traders and to all the other sections of the society. In modern age, the banking constitutes the fundamental basis of economic growth. Thus, they accelerate the economic growth of a country and steer the wheels of the economy towards its goals of self reliance in all fields. It naturally arouses Kotak Bank's interest in knowing more about the Bank and the various men and the activities connected with it.

Indian Banking System

Banking in India has its origin as early as the Vedic period. It was believed that transition from money lending to banking must have occurred even before Manu, The great Hindu Jurist, who has devoted a section of his work to deposit advance and laid down rules relating to rates of interest. During the Mogul period, the

indigeneousBankers played a very important role in lending money financing foreign trade and commerce. During the days of East India Company, it was turn over the agency houses to carry on the business. The General Bank of India was the first to join sector in the year 1786.The others that followed were the Bank of Hindustan and the Bengal bank. The bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks: 1. Bank of Bengal (1809). 2. Bank of Bombay (1840). 3. Bank of Madras (1843. These three banks are also known as Presidency Banks were independent units and functioned well. These three banks were amalgamated in 1920 and Imperial Bank of India was established on 27th january1921, which started as private shareholders banks, mostly Europeans shareholders, with the passing of time Imperial bank was taken over by the newly constituted State bank of India act in1955.In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. On July, 1969, 14 major banks of India were nationalized and on 15th April, 1980 six more commercial private banks were also taken over by the government.

Reserve Bank of India

The Banking system is an integral sub-system of the financial system. It represents an important channel of collecting small savings from the households and lending it to the corporate sector. The Indian banking system has The Reserve Bank of India (RBI)

as the apex body from all matters relating to the banking system. It is the Central Bank of India and act as the banker to all other banks. Functions of RBI: Currency issuing authority Banker to the government. Banker to other Bank. Framing of monetary policy. Exchange control. Custodian to foreign exchange and gold reserves. Development activities. Research and development in the banking sector.

CLASSIFICATION OF BANKS

On the basis of Ownership

PUBLIC SECTOR BANKS Public sector banks are those banks that are owned by the government. The government owns these banks. In India 20 banks were nationalized in 1969 and 1980 respectively. Social welfare is there main objective.

PRIVATE SECTOR BANKS These banks are those banks that are owned and run by private sector. An individual has control over these banks in proportion to the shares of the banks held by him.

CO-OPERATIVE BANKS These are those banks that are jointly run by a group of individuals. Each individual has an equal share in these banks. Its shareholders manage the affairs of the bank. According to the Law SCHEDULED BANK Schedule banks are the banks, which are included in the second schedule of the banking regulation act 1965. According to this schedule bank: 1. Must have paid-up capital and reserve of not less than Rs500, 000. 2. Must also satisfy the RBI that its affairs are not conducted in a manner Determinate to the interest of its depositors. Schedule banks are sub-divided as:-

a) State co-operative banks b) Commercial banks

NON-SCHEDULED BANKS Non -schedule banks are the banks, which are not included in the second schedule of the banking regulation act 1965. It means they do not satisfy the conditions lay down by that schedule. These are the banks having paid up capital, less than Rs.5Lakhs. They are further classified as follows:A. Central Co-operative banks and Primary Credit Societies. B. Commercial banks According to Function COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banks make loans for short to business and in the process create money. Credit creation is the main function of these banks.

FOREIGN BANKS These are those banks that are incorporated by foreign company. They have set up their branches in India. These banks have their head offices in foreign countries. Their principle function is to make credit arrangement or the export and the import of the country and these banks deals in foreign exchange.

INDUSTRIAL BANKS Industrial banks are those banks that offer long term and medium term loan to the industries and also work for their development. These banks help industries in sale of their shares, debentures and bonds. They give loan to the industries for the purchase of land and machinery.

AGRICULTURAL BANKS Agricultural banks are those banks that give credit to agricultural sector of the economy. SAVING BANKS The principle function of these banks is to collect small savings across the country and put them to the productive use. In India department of post office functions a savings banks.

CENTRAL BANK Central Bank is the apex bank of the banking system of the country. It issues currency notes and acts a banker's bank. Economic stability is the principle function of this bank. In short, it regulates and controls the banking system of the country. RBI is the Central Bank of India.

PRIVATIZATION OF INDIAN BANKING

For the public sector banks, the era of bumper profit is over. For much of the last decade the process of collaborated financial liberalization had cleared up

the Banks balance sheet enabling them to with stand increased competition, global financing, turmoil and even unprotected industrial slow down. But the cycle of liberalization has run its full course. Now it is the time for the big structural leap, rationalization, mergers, and privatization. Unless the banks undertake these fundamental changes, their profit will stay under pressure. There are twp areas of competitions which banking industry is facing internationally and nationally. In the pre-liberalization era, Indian banks could grow in a closed economy but the banking sector opened up for private competition. It is possible that private banks could become dominant players even within India. It has been recorded a rapid rise of the new private sector banks and it has tracked the transformation of the public sector banks as they grapple with the changes of financial deregulation. Use of ATM cards, Internet Banking, Phone Banking, Mobile Banking are the new innovative channels of banking which are being widely used as they result in saving both time and money which are two essential things that every one is short of and is running to catch hold of them. Moreover private sector banks are aligning its infrastructures, marketing quality and technology to build deep commitment in building consumer and retail banking. The main focus of these banks is on innovative range of services or products.

STRUCTURE OF BANKING SYSTEM

Different countries of the world have different types of banking systems. However, commercial banking had grown under all these banking systems. To understand the structure of banking system, let us take up various types of banking systems one by one. These types are: (1) UNIT BANKING Unit Banking originated in the United State of America. It grew in the United States of America. As a counter part of independent or industrial units. An independent unit bank is a corporation that operates one office and that is not related to other banks through either ownership or control. Shaper, Solomon and White. Thus under unit banking, a single bank is a complete organization in itself having its own management. The scale of operation is small and the area is restricted to a locality only. Unit banking is localized banking and is much more responsive to the needs of the locality. It has better understanding of the local problems and conditions, which helps it to cater to the needs of the area in a better way. The staff of the unit bank is generally local and is in a better position to determine the standing or desirability of the customers. The failure of the unit bank will not endanger the banking system and economy. It is free from the difficulties and diseconomies of large scale operations. It will not drain out the financial resources of villages and small towns to big industrial centers and will ensure a balanced growth.

(2) BRANCH BANKING: Economic and Managerial problems faced by the unit banks let to the emergence of banking system. Now, This the most popular and important banking system. In branch banking, a bank has a large network of branches scattered all over the country. Branch banking developed in England. Subsequently most of the countries of the world adopted the system. In terms of branches, the State Bank of India has emerged as one of the largest banks in the world. As under the system the resources of a number of branches get pooled under the same management, any individual branch is in a better position to face excessive withdrawals by the customers. It facilitates diversification of activities because the area covered by the branches is generally widespread. Under the system branches can operate without keeping large idle cash reserves. It becomes possible for the bank to hire the services of competent and professionally qualified managers, capable of understanding the handling technical problems and complex situations. The cost of remitting or transferring funds from one place to another works out to be less. The staff stays at a branch only for a limited period, so the chances of objective decision making in the branch banking are high. Branch Banking tends to bring homogeneity in the prevailing Interest Rates as it increases the mobility of resources from one place to another. It is easier for the Central Bank to exercise Control. It will communicate only with a few Registered /Head Offices of the Banks and not with each individual branch. In this system there more safety and liquidity of funds. The choice of securities and investments is larger. Branch banking makes complete banking services available to the smallest communities. The

branches in small localities can be initially operated at loss in expectation of future gains. The comparative study of unit banking and branch banking is a case of small scale banking versus large scale banking. It is evident that the scale is clearly titled towards branch banking. With the growth of large scale business it is no wonder that the trend is almost every country towards the branch banking i.e. big banks with a network of branches all over the country. Even in the U.S.A. The birthplace of unit banking. The Bank of America has now more than 500 branches in the state of California itself. (3) CHAIN BANKING : Shaper, Solomon and White have defined Chain Banking as An arrangements by which two or more banks each of which retains its identity, capital and personnel are brought under common control by any device other than a Holding Company. Under the system there is pooling of resources. Chain banking overcomes certain limitations of unit banking. But the system suffers from certain limitations of its own. There may be a lack of co-ordination, proper control etc. The system is inflexible. (4) GROUP BANKING : It is similar to Chain Banking, the difference being that under Group Banking two or more banks are brought under the control of the same management through a Holding Company. Both the systems aim at gaining the advantages of large scale operations. The banks are able to pool their resources in case of emergency or when large amount of cash is required to meet the loan requirements of the customer. The advantages and

disadvantages of both the systems are similar. Both the systems developed in the United State of America as a result of attempts to overcome the difficulties or limitations of unit banking. (5) CORRESPONDENT BANKING: Under Correspondent banking, small banks serving local communities hold deposits with joint banks serving in big cities. This kind of banking is prevalent in U.S.A. The correspondent banks perform two important services of outstation cheque clearing and loan participation for the respondent banks while they benefit for the deposit funds of respondent banks.

A) COMMERCIAL BANKS

PRIMARY FUNCTIONS : 1) Accepting of Deposits : A bank accepts deposits from the public. People can deposit their cash balances in either of the following accounts to their convenience:a. Fixed or Time Deposit Account : Cash is deposited in this account for a fixed period. The depositor gets receipts for the amount deposited. It is called Fixed Deposit Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of interest and the period of deposit. This receipt is not transferable. If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same after paying the discount to the bank. b. Savings Account : This type of deposit suits to those who just want to keep their small savings in a bank and might need to withdraw them occasionally. Banks provide a certain rate of interest on the minimum balance kept by the depositor during the month. c. Current Account : This type of account is kept by the businessman who are required to withdraw money every new and then. Banks do not pay any interest on this account. Any sum or any number of withdrawals can be presented by such an account holder. 2) Advancing of Loans : The bank advances money in any one of the following ways.

a. Overdraft Facilities : Customers of good trading are allowed to overdraw from their current account. But they have to pay interest on extra amount they have withdrawn. Overdrafts are allowed to provide temporary accommodation since the extra amount withdrawn is payable within a short period. b. Money at Call : It is the money lent for a very short period varying from 1 to 14 days. Such advances are usually made to other banks and financial institutions only. Money at call ensures liquidity. In the Interbank market it enables bank to make adjustment according to their liquidity requirements. c. Loans : Loans are granted by the banks on securities which can be easily disposed off in the market. When the bank has satisfied itself regarding the soundness of the party, a loan is advanced. d. Cash Credit : The Debtor is allowed to withdraw a certain amount on a given security. The debtor withdraws the amount within this limit, interest is charged by the bank on the amount actually withdrawn. e. Discounting Bill of Exchange : It is another method of making advances by the banks. Under this method, bank give advance to their clients on the basis of their bills of exchange before the maturity of such bills. f. Investment in Government Securities : Purchasing of government securities by the banks tantamount to advancing loans by them to the Government. Banks prefer to buy government securities as these are considered to be the safest investment. For example : Indira Vikas Patra : It enables the banks to meet requirement of statutory liquidity ratio (SLR)

3) Credit Creation :One of the main functions of banks these days is to create credit. Banks create credit by giving more loans than their cash reserves. Banks are able to create credit because the demand deposits i.e. a claim against the bank is accepted by the public in settlement of their debts. In this process the bank creates money. For this reason Prof. Sayers has called bank the manufactures of money.

4) Cheque system of Payment of Funds A cheque, a negotiable instrument, which in fact is a bill of exchange, drawn upon a banker, is the most popular credit instrument used by the client to make payments. Cheque system is the main credit instrument in the banking world. Although a cheque is not a legal tender money, the serves as a medium of exchange in a limited way as it is a negotiable instrument. Because of clearing houses and clearing operations of the banks, cheques can be and are used for transferring funds from one centre to another. In the modern days they can also be used for transferring funds from one country to another. SECONDARY FUNCTIONS Besides the above primary functions, banks also perform may secondary functions such as agency functions, general utility and social functions. A) Agency Functions Banks act as agents to their customers in different ways :-

i) Collection and Payment of Credit and Other Instruments: The Commercial banks collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On behalf of their customers and also make payments of income tax, fees, insurance premium etc. on behalf of the customers. Customers can leave standing instructions with the banker for various periodic payments ensuring the regular payments and avoiding the trouble of performing it themselves. ii) Purchase and Sale of Securities : The modern commercial banks also undertake the purchase and sale of various securities like shares, stocks, bonds units and debentures etc. On behalf of the customers, banks do not give any advice regarding the suitability or otherwise of a security but simply perform the functions of a broker. iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their customers on their advice. Sometimes banks also undertake income tax services on behalf of the customers. iv) Remittance of Funds : The Commercial banks remit funds on behalf of clients from one place to another through cheques, drafts, mail transfers etc. v) Representation and Correspondence : Sometimes commercial banks acts as representatives or correspondents of the clients especially in handling various applications. For instance, passports and travel tickets, booking of vehicles, plots etc. vi) Billion Trading : In many countries, the commercial banks trade is billions like gold and silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and Allahabad Bank have been allowed import of gold which has been put under open general licensed category.

vii) Purchase and Sale of Foreign Exchange : Banks buy and sell foreign exchange, promoting international trade. This function is mainly discharged by foreign Exchange Banks. viii) Letter of References : Banks also give information about economic position of their customers to domestic and foreign traders and vice versa. B) GENERAL UTILITY SERVICES In addition to agency services, banks render many more utility services to the public. These services are :i) Locker Facilities : Banks provide locker facilities to their customers. People can keep their valuables or important documents in these lockers. Their annual rent is very nominal. ii) Acting as a referee : It desired by the customers, the bank can be a referee i.e. who could be referred by the third parties for seeking information regarding the financial position of the customers. The bank will acts as referee only and only if it is desired by the customer, otherwise the secrecy of a customers is account is maintained very carefully. iii) Issuing letters of credit : Bankers in a way by issuing letters of credit certify the credit worthiness of the customers. Letters of credit are very popular in foreign trade. iv) Acting as Underwriters : Banks also underwrite the securities issued by the Government and Corporate bodies for a commission. The name of bank as an underwriter encouraged investors to have faith in the security. v) Acting as information banks : Commercial banks also acts as information bureau as they collect the financial, economic and

statistical data relating to industry, trade and commerce. HDFC Bank is providing information relating to NRI Schemes and commentaries of experts on development in the areas of finance through Internet. vi) Issuing Travelers cheques and credit cards : Banks have been rendering great service by issuing travelers cheques, which enable a person to travel without fear of theft or loss of money. Now, some banks have started credit card system under which a credit card holder is allowed to avail credit from the listed outlets without any additional cost or effort. Thus, credit card holder need not carry or handle cash all the time. Now, international credit cards are joining hands with Indian Banks. vii) Issuing of gift cheques: Certain banks issue gift cheques of various denominations, e.g. Some Indian banks issue gift cheques f the denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge. viii) Dealing in Foreign Exchange: Major branches of commercial banks also transact business of foreign exchange. Commercial banks are the main authorized dealers of foreign exchange in India. ix) Merchant banking Services: Commercial banks also render merchant banking services to the customers. They help in availing loans from non-banking financial institutions. x) Help in Transportation of Goods: Big businessmen or industrialists after consigning goods to their retailers send the Railway Receipt (Consignment Note) to the bank.

List of Public Sector Banks

o o o o o o

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

Other Nationalised banks are:

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 Private Sector Bank

Bank of Punjab

Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United Western Bank UTI Bank ABN-AMRO Bank Abu Dhabi Commercial Bank Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank Scotia Bank Taib Bank

List of Foreign Banks in India

Upcoming Foreign Banks In India

By 2009 few more names is going to be added in the list of foreign banks in India. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the world's best private bank by Euro Money magazine, Switzerland's UBS. The following are the list of foreign banks going to set up business in India Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China Merrill Lynch is having a joint venture in Indian investment banking space -- DSP Merrill Lynch. Goldman Sachs holds stakes in Kotak Mahindra arms. GE Capital is also having a wide presence in consumer finance through GE Capital India. India's GDP is seen growing at a robust pace of around 7% over the next few years, throwing up opportunities for the banking sector to profit from. The credit of banks has risen by over 25% in 2004-05 and the growth momentum is expected to continue over the next four to five years. Participation in the growth curve of the Indian economy in the next four years will provide foreign banks a launch pad for greater business expansion when they get more freedom after April 2009.

Objectives of the Study

This study has been conducted with a variety of important objectives in mind. The following provides us with the chief objectives that have tried to achieve through the study. The extent to which these objectives have been met could judged from the conclusions and suggestions, which appear in the later of this study.

The Chief Objectives of this study are:

1.To find the bank sector that is largely availed by the customer. 2.To study the factors the factors influencing the choice of a bank for 3.availing services. 4.To find and compare the satisfaction level of customers in public sector 5.as well as in private sectors bank. 6.To study the problem faced by customer. 7.To get suggestions for improvement or change in the services of public and private sector banks. 8.To study what do people expect in the new era of banking.

RESEARCH METHODOLOGY
Research is an art of scientific investigation. In other word research is a scientific and systematic search for pertinent information on a specific topic. The logic behind taking research methodology into consideration is that one can have knowledge about the method and procedure adopted for achievement of objectives of the project. With the adoption of this others can evaluate the results also. Its main aim is to keep the researchers on the right track. The methodology adopted for studying the objectives was surveying the saving account holders of District Jalandhar. So keeping in view the nature of requirements of the study to collect all the relevant information regarding the comparison of saving account of Centurion Bank of Punjab with other banks, direct personal interview method with structured questionnaire was adopted for the collection of primary data. Secondary data has been collected through the various magazines and newspapers and by surfing on Internet. And the guide in the organization was consulted at many times. SAMPLE DESIGN:-A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i.e.,

the size of the sample. Sample design is determined before data are collected. Here we select the population as sample in our sample design. The selected respondents should be as representatives of the total population. POPULATION:- The persons holding saving account related to business class of District Jalandhar were taken into consideration. DATA COLLECTION Data was collected by using main two methods i.e primary data and secondary data. PRIMARY DATA Primary data is the data which is used or collected for first time and it is not used by anyone in the past. There are number of sources of primary data from which the information can be collected. We choose the following resources for our research. QUESTIONNAIRE:-This method of data collection is quite popular, particular in case of big enquiries. Here in our research we set 15 simple questions and request the respondents to answer these questions with correct information. RESPONDENTS:-Respondents helps in creation of more accurate idea about our research. We personally meet the respondents inside and outside the banks.

SECONDARY DATA Secondary data is the data which is available in readymade form and which is already used by people for some purposes. There may be various sources of secondary data such as-newspapers, magazines, journals, books, reports, documents and other published information. BANKS ANNUAL REPORTS:-Banks issues there annual reports to get the people informed with the profitability and growth of the bank. These annual reports helps us a lot to get the latest data and other related information for our research. It tells us about the increase or decrease in profits and other facilities. JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS :- We also take into consideration the journals and publications issued by the bank at different times. we comes to know about the Branches, ATM, locations and other useful information. MANUALS AND BROACHERS OF DIFFERENT BANKS:-We take the help of bank staff and other people who gives us deep information and data which may not be available at anywhere. They gives us there full cooperation. INTERNET:-We also take into consideration the internet facility with which we collect lot of latest information.

SAMPLE PLAN :
SAMPLE SIZE: Keeping in mind all the constraints the size of the sample of the study was selected as 80.

SAMPLING UNIT:Centurion Bank of Punjab Branch in Jalandhar city. Due to nature of study, we also visited various different banks ICICI, HDFC, SBI, PUNJAB NATIONAL BANK etc. of Jalandhar District.

SAMPLING TECHNIQUE:- Stratified convenient sampling. All the saving account holders were taken into consideration. Research was conducted on clear assumptions that the respondents would give frank and fair answers in a pragmatic way and without any bias. SAMPLING DESCRIPTION:- In order to understand the nature and characteristics of various respondents in this study, the information was collected and analyzed according to their socio economic background which included the characteristic of their respondents like education, age marital status and monthly income. This description shows that respondents included in this survey

belong to different backgrounds and this turn increase the scope of the study.

PERSONAL DETAIL AGE Particulars 20-30 years 30-40 years 40-50 years 50-60 years

%age of Respondent 20% 50% 20% 10%

Analysis & Interpretation: From the above study we find that nobody is below
20 age and 20% respondents are between 20-30 age group, 50% respondents are between 30-40 age group, 20% respondents is between 40-50 age group and 10% respondents are between 50-60 age group.

SEX Particulars Male Female Total No of Respondent 70 30 100 %age 70% 30% 100%

Analysis: From the above result we come to know that out of 100, 62 respondents are male and 38 are female which is 62% and 38% are respectively. Interpretation: From the above data we conclude that most of our respondents are male.

MARITAL STATUS Particulars Married Unmarried Total No of Respondent 33 67 100 %age 33% 67% 100%

Analysis: From the above study we find that out of 100%, 33% respondents are married and 67% respondents are unmarried. Interpretation: Most of the respondents of our survey are Unmarried.

Q4: HIGHEST EDUCATIONAL QUALIFICATION:Particulars Matric Senior Secondary Graduate &professional Post graduate Total No of Respondent % age 4 4% 14 14% 46 46% 36 100 36% 100%

Analysis: This analysis shows that out of 100 respondent, 46% respondents are graduate & professional, 36% respondents are post graduate, 14% respondents are senior secondary and 2% respondents are of Matric category. All the respondents of our survey are qualified. Interpretation: From the above data we conclude that most of our respondents are Graduates & professional degree holders.

OCCUPATION Particulars Businessman Government No of Respondent 32 28 %age of respondents 32% 28%

Employee Student Others

24 16

24% 16%

Occupation
Businessmen Government Employee Students Others

16%

32%

24%

28%

Analysis: From the above analysis it is clear that 32% respondents are doing their own business, 28% are employees and 16% respondents belong to other category And 24% of our respondents are students. Most of the respondents of our survey are Businessmen. Interpretation: From the Above data we conclude that most of our survey respondents are businessmen.

DATA COLLECTION: Data was collected using two main methods:

COLLECTION OF DATA

Secondary Data

Primary Data

Banks Annual Reports

Questionnaire

Journals and Publications of Different banks

Respondents

Manuals/Broachers of Different Bank

Economics times and financial world

LIMITATIONS OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from certain limitations. Some of these are mentioned here under so that the findings of the study may be understood in a proper perspective. The limitations of the study are: Some of the respondents of the survey were unwilling to share information. The research was carried out in a short period of 6 weeks . Therefore the sample size and other parameters were selected accordingly so as to finish the work within the given time frame. The information given by the respondents might be biased because some of them might not be interested to give correct information. The officials of the bank supported me a lot, but did not have sufficient time to make the points more clear.

Analysis of Data collected

1. The respondents were asked about which banking sectors services do their avail. Table1: banking sectors services which the respondents avail. Banking sector Public Private Both Number of respondents 32 38 30

40 35 30 25 Public 20 15 10 5 0 No of respondents Private Both

Graph 1: Banking Sectors services which the respondents avails

INTERTRETATION:-It was found that most of the respondents were availing services of private sectors banks while those of the public sector banks were less as compare to public sector

2. The respondents were Asked about the type of account they have in the public sector as well as Private sector banks Table 2.1 Number of type of account held in Public sectors banks Type of Accounts Name of Account Total no of responden ts Savings 50 Current 15 Demat 6 Fixed deposits 15 Salary 14

T otal no of respondents
60 50 40 30 20 10 0 Saving Current Demat Fixed deposits Salary Total no of respondents

Graph 2.1 :- Number of type of accounts held in Public sector banks

Analysis: 50% people own Saving Account, 15% own Current account, 6% demat,15% fixed deposits account and 14% salary Account

Interpretation: It was found that in case of public sector banks,

maximum number of account holders owns Saving Account. After Saving account most prefer account is salary account prefer by people and the next priority goes to fixed deposits Accounts.

3. The basic purpose of this question was to know the most preferred bank. Table 3. Number of respondents preferring different banks Names of Banks ICICI Bank HDFC Bank State Bank Group Punjab National Bank Punjab And Sind Bank Number of respondents 24 22 20 28 6

30 25 20 15 10 5 0 Number of respondents

ICICI bank HDFC Bank State Bank Group P.N.B Punjab and sind Bank

Analysis: From above graph, it is seen that 28% stake of the respondents follows to Punjab National bank followed byICICI bank. It is the bank

which provide 12-hour banking.also the ATM machine is more as compared to the other private sector banks. Interpretation : From the above graph, it is seen that Punjab national is the most preferred bank as compared to other Public and Private sector Banks. The reason for preference of public sector bank is the minimum amount of deposit for saving account. 4. The aim to ask this question was to know he reasons for their preference in different banks :-

Table 4:- Reason for account in different banks Reasons Friendly Behaviour of the Staff Reliability/trust Quick and fast services Location No of respondents 16 14 55 15
Friendlybehaviour of the staff Reliability/ Trust Quick and fast services 50 40 30 20 10 0 No of respondents

ChartTitle
60

Graph 4:-Reasons for account in different banks

Inpretation: By analyzing this graph, we can conclude that most of the people is influenced by the quick and speedy services provided by the bank and location is given less preference than others. 5.The respondents were asked about the facilities they were availing in public as well as private sector banks :Table 5.1 Number of people availing different facilities at public sector banks: Facilities Availed No of respondents ATM/Debit card 60 Demat 5 Internet/Mobile/Phone Banking 15 Insurance 20

Graph 5.1: Number of people availing different facilities at public sector banks Interpretation: From the above graph, it was found that was availed by most of the people at public sector banks was that of ATM/Debit cards which hold

90% of respondents. It is clearly observed by the graph that Insurance are neck to neck holding 20% of respondent each.

6. The purpose of this question is to know the satisfaction level they were having with their banks overall performance:Public sector banks Table 6.1 Satisfaction level of the customers regarding the facilities availed from the public sector banks Level of Satisfaction Excellent Good Very Good No.of respondents 12 21 27 %age 24% 42% 54%

60% 50% 42% 40% 30% 20% 10% 0% Excellent Good Series1

54%

24%

VeryGood

Graph 6.1 Satisfaction level of Customers regarding the facilities availed from the public sector banks. Analysis:

It was found that in case of public sectors banks, 18% of the respondents were highly satisfied ranked excellent from the products and services availed by them. 44% were just satisfied given very good and 38% have moderate view. Interpretation: People have mixed type of view regarding public sector banks. 7. The respondents were asked that if they have given option, would they like to shift from the present banks:Table 7 Number of customers ready to shift from present bank.

Graph 7:- Number of customers ready to shift from their present bank or not.

Interpretation:

From this above Graph, we can conclude that the number of respondents ready to shift from their present bank is 28% while 70% customers seems to be satisfied from their bank and hence willing to shift from their present bank to other. 8. The aim to ask this question was to know whether the respondents faces any problem regarding the services provided them by their preferred bank :Table 8 Problem faced by customers. Types of problem Time consuming Introduction Reference Too many formalities No facility of photograph instantly No problem No of respondents 10 8 15 6 4 6

Interpretation:

It was found that most of the respondents are facing problem of reference. Respondents also find that the time and too much formalities also cause problem in banks.

FINDINGS OF THE STUDY

More number of people have account with private banks. Majority of the respondents whether in public sectors or in private sector banks have savings account with banks. Number of problem faced by the people is more in public sector banks. People want a change in the behavior of the staff of the public sector banks. People are more satisfied form the private sector banks due to their better services provided by them in terms of speedy transactions, fully computerized facilities, more working hours (in case of ICICI bank, the number of working hour are 12), good investment Advisory services, efficient and co-operative staff, better approach to Customer Relationship Management. In private sector banks proper promotional activities should be taken up so as to make the population aware of the services provided by the banks even in rural areas. The facility that was availed by most of the people at public sector banks was that of ATM/Debit cards. The least availed facility was that of Demat account and foreign transfer of funds.

The facility that was availed by most of the people at private sector banks was that of Internet/Phone banking by ATM/Debit card. Majority of respondents do not want to shift from their present bank.

From the above study it is clear that private banks are providing better services than nationalized banks. 95% respondents favored that private banks are providing better services than nationalized banks while 5% respondents are not agree with it. From the above study it is clear that majority of the respondents said that the average balance requirement for operating their saving account is between 5000-10000. 20% said it is between 10000-20000 and remaining 5% said it is between 20000-50000 in private sector banks which as compared to Public sector bank is very high. 40% respondents said that the bank employees never pay any attention to them and 10% respondents said that their problems are not solved by bank executives. The remaining 50% respondents give a positive reaction in the favour of bank. 30% respondents favoured that their problems are solved by bank executives and 20% respondents said they are received with smile by bank executives. So there is a mix response. Majority of the respondents said that the average time taken for transactions is between 25 to 50 minutes in their bank. 30% respondents said the average time taken for transaction is between 2025 minutes, 20% said it is between 10 to 25 min. and remaining 10%

said that the average time taken for transaction by their bank is 5 to 10 minutes.

From the above study is clear that the banks do not organize any customer meets. All the 100% respondents said that their bank does not organize any customer's meets to resolve their problems. Customer satisfaction is the demand of time, so the banks should organize customer meets to resolve the problems of their customers. From the above study it is clear that majority of the respondents are ready to pay nominal charges for better services provided by private banks while 40% respondents are not ready to pay any nominal charges. The above study depicts that 60% respondent said that their bank updates them time to time about the latest facilities and remaining 40% said that their bank doesn't update them.

SUGGESTIONS

Based on the study conducted, There are some of the suggestions given by the customers of how the modern banking should be. These are the comment given by them about the improvement of the banking sector in India. Banks should obey the RBI norms and provide facilitiesas per the norms, which are not being followed by the banks. While the customer must be given prompt services and the bank officer should not have any fear on mind to provide the facilities as per RBI norms to the units going sick. Banks should increase the rate of saving account Banks should provide loan at the lower interest rate and education loans should be given with ease without much documentation. All the banks must provide loans against shares. Fair dealing with the customers. More contribution from the employee of the bank. The staff Should be co-operative, friendly and must be capable of understanding the problems of customers Internet banking facility must be made available in all the banks. Prompt dealing with permanent customers and speedy transaction without harassing the customers Each section of every bank should be computerized even in rural areas also. Real time gross settlement can play a very important role.

 More ATM coverage should be provided for the convenience of the customers. No limit on cash withdrawls on ATM cards. The bank should bring out new schemes at time-to-time so that more people can be attracted. Even some gifts and prizes may be offered to the customers for their retention. 24 hours banking should be induced so as to facilitate the customers who may not have a free time in the daytime. It will help in facing the competition more effectively. The charges for saving account opening are high, so they should also be reduced. Customers generally complain that full knowledge is not granted to them. Thus the bank should properly disclose the features of the product and services to the customers. Moreover door to door services can also be introduced by bank. The need of the customer should properly be understood so that customer feels satisfied. The relationship value should be maintained. The branch should promote cooperation and coordination among employees which help them in efficient working. Maintenance of proper hierarchy should be done. A good hierarchy set up can ensure better results with in the bank. Banking sector is improving by leaps but still it needs to be improved. Proper and efficient relationship staffs having knowledge for one stop banking, customer friendly atmosphere, and better rate of interest are

need of the hour.the concept of privatization has overall improved the services in all the banks. Home banking will be order of the day.

Recommendations
For Public Sector Banks: Bank staff should be customer friendly and highly motivated to serve the normal customer. As far as possible, banks should reduce its documentation process while providing loans. Computerization should be done in banks at all level and the operators should de properly trained. Token system should be induced so as to minimize the waiting lines in the banks. Proper ambience in the banks can develop a healthy working culture. Quick services should be provided.

For Private sector Banks 24 hours banking should be induced so as to facilitate the customers who may not have free time in the day time. It will help in facing the competition more effectively. More ATM coverage should be provided for the convenience of the customers. Customer care services should be provided by banks.

CONCLUSION
The customers now days are not only exposed of what type of service is being provided by banks in India but in the world as a whole. They expect much more than what is actually being provided. So the new coming banking sector has to provide and cater to all the needs of the customers otherwise it is difficult to survive in the competition coming up. They not only expect the safety of money but also best ways to invest that money which need needs to be fulfilled. Banks need to have a better outlook towards to actually what customers are requiring. Entries of the private sector banks have made the competition tougher. If a bank is not functioning properly it is being closed. So it is difficult to face these types of conditions. Here a simple philosophy can work that customers are God and we need to follow this to survive and serve better. The banking sector is poised for explosive growth. In this, scenario, it is imperative that banks adopt technology at an aggressive Pace, if they wish to remain competitive. Mani Mamallan makes a case for banks to outsource their technology infrastructure requirement, thus enabling early adoption and increased efficiencies. In the prevailing scenario, a number of banks have adopt a new deployment strategy of infrastructure outsourcing, to lower the cost of service channels. As a result, other banks too will need to align their reinvented business models. The required changes at both the business and technology levels are enormous. In a highly competitive banking markets, early adopters are profiting from increased efficiencies.

BIBLIOGRAPHY
BOOKS: Kothari C.R. (1990) Research Methodology: Method and Techniques; Wishva Prakashan, New Delhi. Bodie.Z, Kane.A & Mracus.J : Essentials of Investments. Prof. E Gordon & Dr. K. Natrajan Banking Theory Law and Practice. Indian financial System & Commercial Banking by Khan Masood Ahmed Banking in India by P.N.Varshney

WEBSITES: www.centurionbop.co.in www.pnbindia.com www.statebankofindia.com www.icicibank.com www.rbi.org.in www.iba.org.in www.knowledgestom.com www.igniter.com

BROACHERS & PAMPHLETS Broachers and pamphlets of Saving A/c

QUESTIONNAIRE

Comparative Study on public and private sector banks Dear customer,

We are the students of C.T.I.E.M.T. Shahpur, Jalandhar. We are undergoing the project entitled named Comparative Study on public and Private sector banks So by filling this questionnaire please helps us in completing our project. Q1. Which Sector bank do you have your account? Public Q2. Private Both

In which bank do you have your Account? 1. 2. 3. 4.

Q3. Which type of account do you have in the bank? Saving Demat Salary Current F.D

Q4 In Case you have yours Account in more than one a Bank which one is your most preferred bank (Give only one bank)

Q5. Rank the selection criteria for opening account with bank? Brand Image Location Services Charges

Q6. Kindly rank the reasons for yours preference in this particular bank? Quick and fast services Friendly Behavior Location Reliability

Q7. Which facilities are you availing at your bank? Atm/Debit card Insurance Credit card

Mobile Banking

Q8.How often do you use debit card to shop? Occasionally Never

Q9. How much Satisfied are you with your banks overall performance ? Excellent Good Very Good

Q10. Any Specific services you expect from your bank ?

Q11.If an option is given to you, would you like to shift from the present Bank? Yes No

Q12. Do you face any problem regarding the services provided by your preferred bank? If Yes Q13. Would you like to give any suggestions for the better functioning of banks in these sectors? Public Sector Private sector

16.

Any other suggestions please specify ?

____________________________________________________________ ____________________________________________________________
Thanks for your valuable time given to us .We assure you that the information provided by you will remain confidential. Thanks for your co-operation.

PERSONAL DETAILS. NAME- AGE-... GENDER-.. EDUCATION-... ADDRESS-. . PHONE NO.-. E-MAIL ID-

SIGNATURE OF RESPONDENT