EXECUTIVE SUMMARY

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. The research work entitle COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS aims to analyze various services provided by private sector banks and public sector banks for this purpose Delhi city have been chosen. Research work constitutes the backbone of any management education programme. A management student has to do research work quite frequently during his entire span. From this study we came to know that, more number of people has account with private banks; number of problem faced by the people is more in public sector banks. People are more satisfied with the private sector banks due to their better services provided by them in terms of speedy transactions, fully computerized facilities, more working hours. The facility that was availed by most of the people at public sector banks was that of ATM/Debit cards and the least availed facility was that of Demat account, Majority of respondents want to shift from their present bank. The private banks are providing better services than nationalized banks and majority of the respondents are ready to pay nominal charges for better services provided by private banks.

Introduction
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 indigenousBankers 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.
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Classification of Banks
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.

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 two 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 everyone 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.

Functions of 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 gives 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 VikasPatra : 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 act as representatives or correspondents of the clients especially in handling various applications. For instance, passports and travel tickets, booking of vehicles, plots etc. vi) BillionTrading: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.
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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. Acting as information banks: Commercial banks also act 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. 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.

v)

vi)

vii)

Issuing of gift cheques: Certain banks issue gift cheques of various denominations, e.g. Some Indian banks issue gift chequesf 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.

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List of Public Sector Banks

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

List of Nationalized Banks

Allahabad Bank Andhra Bank Bank of BarodaBank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank

List of Private Sector Bank

Bank of Punjab Bank of Rajasthan Catholic Syrian Bank City Union Bank Dhanalakshmi Bank Development Credit Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank KarurVysya Bank Laxmi Vilas Bank South Indian Bank UTI Bank
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Dena Bank Indian Bank Indian Overseas Bank OrientalBank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank

Literature Review
Roma Mitra, Shankar Ravi (2008), A stable and efficient banking sector is an essential precondition to incr.ease the economic level of a country. This paper tries to model and evaluate the efficiency of 50 Indian banks. The Inefficiency can be analyzed and quantified for every evaluated unit. The aim of this paper is to estimate and compare efficiency of the banking sector in India. The analysis is supposed to verify or reject the hypothesis whether the banking sector fulfils its intermediation function sufficiently to compete with the global players. The results are insightful to the financial policy planner as it identifies priority areas for different banks, which can improve the performance. This paper evaluates the performance of Banking Sectors in India. B.Satish Kumar (2008), in his article on an evaluation of the financial performance of Indian private sector banks wrote Private sector banks play an important role in development of Indian economy. After liberalization the banking industry underwent major changes. The economic reforms totally have changed the banking sector. RBI permitted new banks to be started in the private sector as per the recommendation of Narashiman committee. The Indian banking industry was dominated by public sector banks. But now the situations have changed new generation banks with used of technology and professional management has gained a reasonable position in the banking industry. Brijesh K. Saho, Anandeep Singh (2007), this paper attempts to examine, the performance trends of the Indian commercial banks for the period: 1997-98 - 2004-05. Our broad empirical findings are indicative in many ways. First, the increasing average annual trends in technical efficiency for all ownership groups indicate an affirmative gesture about the effect of the reform process on the performance of the Indian banking sector. Second, the higher cost efficiency accrual of private banks over nationalized banks indicate that nationalized banks, though old, do not reflect their learning experience in their cost minimizing behavior due to X-inefficiency factors arising from government ownership. This finding also highlights the possible stronger disciplining role played bythe capital market indicating a strong link between market for corporate control and efficiency of private enterprise assumed by property right hypothesis. And, finally, concerning the scale elasticity behavior, the technology and market-based results differ

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significantly supporting the empirical distinction between returns to scale and economies of scale, often used interchangeably in the literature. Vradi, Vijay, Mauluri, Nagarjuna (2006), in his study on Measurement of efficiency of bank in India concluded that in modern world performance of banking is more important to stable the economy .in order to see the efficiency of Indian banks we have see the fore indicators i.e. profitability, productivity, assets, quality and financial management for all banks includes public sector, private sector banks in India for the period 2000 and 1999 to 2002-2003. For measuring efficiency of banks we have adopted development envelopment analysis and found that public sectors banks are more efficient then other banks in India PetyaKoeva (July 2003), in his study on The Performance of Indian Banks. During Financial Liberalization states that new empirical evidence on the impact of financial liberalization on the performance of Indian commercial banks. The analysis focuses on examining the behavior and determinants of bank intermediation costs and profitability during the liberalization period. The empirical results suggest that ownership type has a significant effect on some performance indicators and that the observed increase in competition during financial liberalization has been associated with lower intermediation costs and profitability of the Indian banks. KaushikMukerjee (2006) in his paper CRM in Banking-Focus on ICICI Banks initiatives had focused on CRM in Banking and its applications in ICICI Bank. The CRM in ICICI is being used for targeting customers, sales, consistent interface with customers, etc. ICICI Bank has managed to focus better on customers by undertaking a serious approach that has enabled it to manage its operations effectively. It included better targeting of customers; higher share of wallet; more effective channel strategies; database marketing, etc. The bank is able to evaluate customer usage pattern through CRM data warehouse. New products are developed through extensive customer profiling. Through CRM, ICICI is able to manage its data centrally. ShyamRamadhyani (2006) in his paper titled Audit of Banks operating in a computerized Information Systems Environment focused on Audit related issues of IS in bank. It was emphasized that the use of computers changes the processing, storage, retrieval and communication of financial information and may affect the accounting and

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internal control systems employed by a bank. The potential for human errors in the development, maintenance and execution of computer Information Systems may be greater than in manual systems, duetolevel of details inherent in these activities. Through audit reviews, a thorough look and understanding of IS in bank can be seen. The audit of IS would provide us general understanding of IS in bank, managing authentication of users, access control, data security, data integrity, audit logs, testing, accounting entries, data migration, network and RDBMS security, business continuity and disaster recovery plans, hacking, identification of transaction for substantative checking, use of reports generated by system and documentation.

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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 judge from the conclusions and suggestions, which appear in the later of this study.

The Chief Objectives of this study are:

1. To study the factors influencing the choice of a bank for availing services. 2. To find and compare the satisfaction level of customers in public sector as well as in private sectors bank. 3. To study what do people expect in the new era of banking.

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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.

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 account in private as well as public banks in Delhi were taken into consideration.

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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 this research some simple questions were set and the respondents were requested to answer these questions with correct information.

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. 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 give us deep information and data which may not be available at anywhere. They gives us there full co-operation. Internet:We also take into consideration the internet facility with which we collect lot of latest information.

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Sample Plan:
Sample Size:Keeping in mind all the constraints the size of the sample of the study was selected as 100. Sampling Technique:Stratified convenient sampling.All the public & private banks 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.

Limitations:
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: 1- Some of the respondents of the survey were unwilling to share information. 2- The research was carried out in a short period; therefore the sample size and other parameters were selected accordingly so as to finish the work within the given time frame. 3- The information given by the respondents might be biased because some of them might not be interested to give correct information.

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Analysis of Data collected:

PERSONAL DETAIL

Gender

Particulars Male Female Total

%age 63% 37% 100%

Gender

Male Female

Analysis: From the above result we come to know that out of 100, 63 respondents are male and 37 are female which is 63% and 37% are respectively. Interpretation: From the above data we conclude that most of our respondents are male.

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AGE

Particulars Below 20 20-30 years 30-40 years 40-50 years 50-60 years Above 60

%age of Respondent 23% 18% 16% 13% 16% 14%

Age
25 20 15 10 5 0 Below 20 20-30 30-40 40-50 50-60 Above 60 No. of Respondents

Analysis & Interpretation: From the above study we find that only 13 % of respondents lies between the age group 40-50 years & the maximum number of respondents i.e., 23% belongs to the age group of below 20.

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Educational Level

Particulars Intermediate Graduate Post Graduate & Above Total

% age 25% 57% 18% 100%

Education Level

Intermediate Graduate Post Graduate & Above

Analysis: This analysis shows that out of 100 respondent, 25% respondents are Intermediate, 57% respondents are Graduate& only18% respondents are Post Graduate & above. All the respondents of our survey are qualified. Interpretation: From the above data we conclude that most of our respondents are Graduates.

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Professional Details

Particulars Service- Private Sector Service- Government Sector Business Profession / Self Employed Housewife / Homemaker Others Total

%age 27% 26% 6% 11% 8% 22% 100%

Professional Details
30 25 20 15 10 5 0 Service Private Sector Service Public Sector Business Self Housewife Employed Others No. of Respondents

Analysis: From the above analysis it is clear that most of the respondents are employed in private sector i.e., 27% which is followed by people employed in Public sector i.e., 26% Interpretation: From the Above data we conclude that most of our survey respondents are employed.

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Income Level

Particulars Below 15,000 15,000-25,000 25,000-35,000 35,000-50,000 Above 50,000 Total

%age 20% 34% 29% 11% 6% 100%

Income Level
40 35 30 25 20 15 10 5 0 No. of Respondents

Analysis& Interpretation: From the above analysis it is clear that most of the respondents lie at the income level of 15,000-25,000 i.e., 34% followed by 29% respondents which lie between the income range of 25,000-35,000.

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Q1- Which sector bank do you have account?

Particulars Public Private Both Total

% age 32% 49% 19% 100%

Sector

Public Private Both

Analysis: This analysis shows that out of 100 respondent, maximum number of respondents have account with private sector banks i.e., 49%, followed by 32% respondents having account with public banks. Interpretation: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

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Q2- Which type of Account do you have in the Bank ?

Name of Account %age

Savings

Current

Demat

Fixed Deposits

Salary

19

11

28

38

Total no of respondents
40 35 30 25 20 15 10 5 0 Saving Current Demat Fixed deposits Salary Total no of respondents

Analysis: 19% people own Saving Account, 11% own Current account, 4% demat, and 28% fixed deposits account and 38% salary Account Interpretation: It was found that in case of public sector banks, maximum number of account holders owns Salary Account. After Salaryaccount most preferred account is Fixed Deposit account.

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Q3- Rate the importance of following factors on a scale of 1 to 5.

Brand Image
35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

Products & Services offered

40 35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

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Location
35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

Trust / Reliability
30 25 20 15 Total no of respondents 10 5 0 Most Important Important Neutral Somewhat Important Least Important

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Charges
35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

Service Quality
35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

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Advertisement
35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

Promotional Schemes
40 35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

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Customer Care
30 25 20 15 Total no of respondents 10 5 0 Most Important Important Neutral Somewhat Important Least Important

Value Added Services

45 40 35 30 25 20 15 10 5 0 Most Important Important Neutral Somewhat Important Least Important Total no of respondents

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Q4- Which facilities are you availing at your Bank?

Facilities Availed ATM/Debit card Credit Card Insurance Mobile Banking Mutual Funds Internet Banking Loans Online Traiding Total

No of respondents 33 8 11 9 20 12 3 4 100

35 30 25 20 15 10 5 0 No of Respondents ATM/Debit card Credit Card Insurance Mobile Banking Mutual Funds Internet Banking Loans Online Traiding

Interpretation: From the above graph, it was found that was availed by most of the people at public as well as private sector banks was that of ATM/Debit cards which hold 33% of respondents followed by 20% of respondents using mutual funds facility.

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Q5- How often do you use Debit/Credit card to shop?

Facilities Availed Always Never Occasionally Mostly Total

No of respondents 18 28 16 38 100

40 35 30 25 20 15 10 5 0 No of Respondents Always Never Occasionally Mostly

Analysis &Interpretation: From the above graph, it was found that was availed by most of the people mostly shop using their ATM / Debit card i.e., 38% respondents.

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Q6- How much are you satisfied with your current Banks Performance?

Facilities Availed Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total

No of respondents 13 21 36 19 11 100

40 35 30 25 20 15 10 5 0 No of Respondents Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Analysis &Interpretation: From the above graph, it was found that 36% of the total respondents are neutral with their satisfaction level towards their bank. And 11% are highly dissatisfied with their banks.

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Q7- If an option is given to you, would you like to shift from the present Bank?

Particulars Yes No Total

%age 71% 29% 100%

Yes No

Analysis& Interpretation: From the above result we come to know that out of 100, 71% respondents are willing to shift from their present bank.

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Findings Of The Study

More number of people have account with private banks.

Number of problem faced by the people is more in 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.

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.

Majority of respondents want to shift from their present bank, if given an option.

From the above study it is clear that private banks are providing better services than nationalized banks.

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.

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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 facilities as 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 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 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 withdrawals 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. 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.

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 The branch should promote cooperation and coordination among employees which help them in efficient working.

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
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. 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.

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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. Entry of private sector banks has made the competition tough. If a bank is not functioning properly, it will perish. So it is difficult to face these types of conditions. A simple philosophy that can work here is customer is God and banks need to follow this to survive and serve better. From the above study the following points are clear: 1- Maximum numbers of people have account with private banks; 2- Number of problem faced by the people is more in public sector banks. 3- 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. 4- The facility that was availed by most of the people at public sector banks was that of ATM/Debit cards and the least availed facility was that of Demat account, 5- Majority of respondents want to shift from their present bank. 6- The private banks are providing better services than nationalized banks and majority of the respondents are ready to pay nominal charges for better services provided by private banks.

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BIBLOGRAPHY
BOOKS
Soloman,Michael R. Consumer BehaviourPrentice hall (ninth edition) Schiffman,Leon G., Kanuk,Leslie, Kumar,Ramesh, Indian Banking (2010), Prentice hall Hawkins, Best ad Coney , Customer Satisfaction, Prentice hall 6th Edition,

JOURNALS
Bettis,R.A& hit,M.A(1995) The new competitive landscape, The strategic management journal, Volume 16, Page no. 7-19. Sheth, J.N., Newman, B.I 7 Gross, B.L(1991) why we buy & what we buy: A theory of consumption values. Journal of business research. Volume 22, Page no 159-170 Volkman,Roger J., and Ronald H. Gorman. "The Influence of Cognitive-Based Group Composition on Decision-Making Process and Outcome." Journal of Management Studies. 35.1 (1998): 105-121.

WEBSITES
http://www.m4bmarketing.com/small-business-marketing-customers-buying/ http://www.articlesbase.com/branding-articles/consumer-buying-behaviour681623.html#ixzz1WJaFwrMK http://www.slideshare.net/jatinderbatish/introduction-to-Indian -Banking

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QUESTIONNAIRE
Comparative Study on Public & Private Sector Banks in Delhi(India)

Personal Details:Name: _____________________________________________________________ Gender: Age: Male Below 20 40-50 Years Female 20-30 Years 50-60 Years 30-40 Years Above 60

Education Level:

Intermediate Graduate Post Graduate & Above

Professional Details:

Service Private Sector Business

Service- Public Sector Profession / Self- Employed Others

Housewife / Homemaker ___________________

Income Level: 35,000

Below 15,000 35,000-50,000

15,000-25,000 Above 50,000

25,000-

______________________________________________________________________________ _______ Q1- Which sector bank do you have account? Public Private Both

Q2- Which type of Account do you have in the Bank ? Saving Demat Salary Current Fixed Deposit

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Q3- Kindly Rate the importance of following factors on a scale of 1 to 5. (5 being Most Important, 1 being Least Important) Particulars Brand Image Product & Services offered (Bank Accounts, Loan Services, Credit / Debit Cards etc.) Location Trust / Reliability Charges Service Quality Advertisement Promotion Schemes Customer Care Value Added Services(Mobile Banking, Cash Deposit at ATM, Other Services etc.) Q4- Which facilities are you availing at your Bank? ATM/Debit Card Insurance Mutual Funds Loans Credit Card Mobile Banking Internet Banking Online Trading 1 2 3 4 5

Q5- How often do you use Debit/Credit card to shop? Always Occasionally Never Mostly

Q6- How much are you satisfied with your current Banks Performance? Highly Satisfied Neutral Highly Dissatisfied Q7- If an option is given to you, would you like to shift from the present Bank? Yes No Satisfied Dissatisfied

Q7- Any Other Comments : ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ***** Thank You *****

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