1. 1.

A Project Report On RETAIL BANKING For By Rajesh Kumar Under the guidance of:
Ms. Aditi Das Submitted to: NATIONAL INSTITUTE OF TECHNOLOGY In partial
fulfilment of the requirements for the award of the degree of Master of Business
Administration (MBA) Through Department of Management Studies National Institute of
Technology Durgapur Technology, Mahatma Gandhi Avenue, Durgapur 713209 West
Bengal, India 1
2. 2. DECLARATION I hereby declare that the project report titled RETAIL BANKING WITH
REFERENCE TO ALLAHABAD BANK is my original work and has not been published or
submitted for any degree, diploma or other similar titles elsewhere. This has been
undertaken for the purpose of partial fulfilment of Master of Business Administration
(MBA) at National Institute of Technology, Durgapur (West Bengal). Date: 13/ 07/2013
RAJESH KUMAR Place: Durgapur, West Bengal Roll No.: 12/MBA/23 2
3. 3. PREFACE This project report attempts to bring under one cover the entire hard work
and dedication put in by me in the completion of the project work on Retail Banking with
reference to Allahabad Bank. I have expressed my experiences in my own simple way. I
hope who goes through it will find it interesting and worth reading. All constructive
feedback is cordially invited. 3
4. 4. ACKNOWLEDGEMENT It gives me great pleasure in presenting the project report that
gives the details of my project on Retail Banking carried out at Allahabad Bank, City
Centre Branch, Durgapur (West Bengal). It is impossible to list all the people who have
helped me during my project. I take this opportunity to express my whole hearted thanks
to Ms. Aditi Das (Chief Manager) at Allahabad Bank who has treated me as a bank
employee & helped me in all my queries personally. I would also like to express my deep
sense of gratitude towards all managers, staff, & to all those who directly or indirectly
helped me in successfully execution of my work. Lastly but most essentially I would like to
thank Mr. Sailaja Shankar Bhattacharya (Senior Manager) without his help it wouldnt be
possible for me to complete the project at the stipulated period of time. Rajesh Kumar
Roll no.: 12/MBA/23 Session: 2012-14 4
5. 5. CONTENTS A. Executive Summary 7-11 B. Introduction to the concept 12-15 C.
Industry profile 16 D. Company profile - Product/Services Profile - Workflow model (end
to end) 17-19 E. Mckinseys Seven S Model -Structure -Skill -Style -Strategy -System
-Staff -Shared Values -SWOT Analysis 29-31 32 33 33 34-35 35 35 36 37-38 F. Research
Methodology - Title of the Project - Statement of the problem - Objectives - Operational
definitions - Data collection - Statistical Tools used for research - Sampling Technique
Sampling Unit, Sample Size and 39 40 40 40 41 41 41 42-44 20-26 27-28 5
6. 6. Sampling method. - Plan of Analysis - Limitations to the study 45 46 G. Data Analysis
and Interpretation 47-66 H. Summary of findings 67-68 I. Suggestions 69-71 J.
Conclusions Future Growth 72 K. Learning Experience 73 L. Annexure - Financial
Statements - Questionnaires - Bibliography 74 75-80 81-83 84 6
7. 7. 7
8. 8. EXECUTIVE SUMMARY TITLE OF PROJECT A Study on Retail Banking with special
reference to ALLAHABAD BANK STATEMENT OF THE PROBLEM As there are
immense opportunities of the retail banking in India. This dissertation is on the issues
and challenges in the retail banking because of the competition of the various banks and
the customer satisfaction of the services which the banks are providing and at the same
time to solve the complaints of the customer and maintaining the sound relationship for

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the future and by this way to estimate the future growth of the retail banking.
OBJECTIVES To study the issues and challenges in retail banking. To study the recent
trends in retail banking. To ensure high satisfaction level and reduce percentage of
complaints of customers in retail banking. To estimate the future growth of Indian retail
banking. To understand Optimization of retail banking channels. To suggest strategies for
improvement in Customer Service. 8
9. DATA COLLECTION Data was collected from two sources-primary and secondary
sources. 1. Primary data collection- The primary data was collected by means of survey.
It was collected from different customers through questionnaire. 2. Secondary data
collection-This data was collected from Internet, Companys websites, Books &
Magazines. SAMPLE SIZE Sample size was restricted to 50 respondents, since it was
not possible to cover the whole universe in the available time period. SAMPLING
METHOD For this research Non- Probability Convenience Sampling has been used
because time limit for the completion of the work is limited and also managers and
employees were not available all the time. Area of Study Durgapur, West Bengal
Duration - 2 months (13th May 13 13th July 13) 9
10. SUMMARY OF FINDINGS 90% of customers are happy with the bank timings & they
belief that it is very good. 80% of respondents like the branch ambience & layout & find it
friendly. 80% of respondents said branch was clean and well maintained. Respondents
were of view that Branch personnel had listened to them patiently and have been able to
respond to their queries and clarifications. 74% of respondents responded that Branch
personnel had been very helpful and courteous. 72% of respondents opinion that branch
personnel does Need Analysis & Risk Assessment of customer savings before
recommending any investment option to them. 86% of respondents that branch personnel
are aware of Product and Services and responded to your queries. 10
11. SUGGESTIONS As 10% customer response is not good for the clarification of the
queries response towards them so bank personnel should improve this issue because
customer is a source through which business can be increase and satisfy customers is a
source to create more customers, with reference to table no. 4. As it is only 10%
respondent said that sometime there was a error in the transaction happened so to avoid
these kinds of errors should be avoided because it is unnecessarily results in wastage of
time for both staff members and service rendered, with reference to table no. 9. With
reference to table no. 6, large number of branch personnel should do Need Analysis &
Risk Assessment before recommending any investment option to customer. With
reference to table no. 7, more branch personnel should be aware of Product and
Services and responded to customers queries. With reference to table no. 10, Allahabad
Bank should look into the feedback provided by customer and takes necessary action
wherever required. With reference to table no. 12, Allahabad Bank should focus on
Mahila Sanchay Saving Bank account as small 10% of customer likes this. 11
12. 12
13. RETAIL BANKING AN INTRODUCTION Retail banking has become a very important
component in the business mix of banks. Retail banking offers multiple comfort factors for
banks to do business. Large and divergent customer base across income segment offers
huge scope for banks to develop and offer multiple products and services. In addition to
traditional products and services offered by banks over the years, the retail model has
undergone rapid innovation in the past decade with regard to products, processes,

people and technology. Technology has become the driver for retail banking explosion,
and technology products like ATM, Internet Banking, Mobile Banking, Card products like
Debit Cards and Credit Cards and remittance products like RTGS and NEFT are making
their presence felt in retail space. Banks are embracing different strategies, redesigning
their conventional business silos, reengineering their channels, product and services to
increase the share of customer wallet. A bank functions can be divided into various
divisions like: Retail/Personal Banking: This division provides a range of financial
services to individual customers and small companies. It operates mainly through branch
networks. Retail banking includes routine transactions like deposits and withdrawals of
money; money transfer; foreign currency exchange and traveller's cheque encashment.
They also deal with personal and small loans, credit and mortgages; insurance policies;
investment schemes; pension funds; and advice to customers on various financial
matters. Apart from offering home loans, car loans, educational loans, consumer loans,
etc. they also develop various deposit schemes and help people fill their coffers. 13
14. 14. Corporate Banking: They deal with medium to large-scale companies and
government agencies. It could start at the local branch manager level, though more
complex dealings are routed through corporate divisions of clearing banks and their
merchant banking subsidiaries. Corporate banking deals with credit and advances, trade
finance, foreign exchange management, asset management, lease financing of heavy
equipment, infrastructure, machinery, credit risk assessment, etc. They also advise
clients on matters such as corporate mergers and acquisition, raising capital and
business strategy regarding competitors and outside factors. Merchant Banking:
Investment management is the primary activity of this group. It could be on behalf of
corporate clients, or institutional investors-like pension funds, investment trusts, or those
in the securities business. This groups also handles public issue and marketing of
shares, debentures and other such papers. It may also include other stock market
functions like dematerialization services, investment advisory services, etc. Merchant
banking executives research into capital market, advice and manage funds of various
corporate and individual customers. Treasury group: This group takes care of the total
funds of a bank including foreign exchange reserves. Responsibilities include bank
portfolio management, dealing in foreign currency, etc. There are Forex (foreign
exchange) dealers in this group who exclusively deal with the foreign market. They buy
and sell foreign exchange at the minimum exchange cost thereby earning maximum profit
from the transactions. Rural Banking: This group deals with the banking and credit needs
of people in the rural sector. Not all banks have this group and some banks have
separate subsidiary companies for rural banking. 14
15. 15. Product Management: This group conceptualizes various banking services and then
develops; implements and manages them. They have the responsibility for a banking
product (meaning services like personal loans, home loans, credit cards, loans against
shares, educational loans, etc.). Apart from these main functional groups, there is an
appraisal group to analyse economic feasibility of industrial projects, the bank's exposure
to financial risk and long term returns. There are internal auditors who audit the bank's
internal books of accounts. There are various groups of professionals like lawyers,
engineers, agricultural scientists, chartered accountant, company secretary, cost
accountant and economists who work in various departments in advisory capacities.
They help make decisions on issues that are legal, technical or economic in nature. For

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example, the economist advises various functional groups on the implications of the
Union budget on the business of the banks, consumer buying pattern, etc. 15
16. POTENTIAL FOR RETAIL IN INDIA: IS SKY THE LIMIT The Indian players are
bullish on the Retail business and this is not totally unfounded. There are two main
reasons behind this. Firstly, it is now undeniable that the face of the Indian consumer is
changing. This is reflected in a change in the urban household income pattern. The direct
fallout of such a change will be the consumption patterns and hence the banking habits
of Indians, which will now be skewed towards Retail products. At the same time, India
compares pretty poorly with the other economies of the world that are now becoming
comparable in terms of spending patterns with the opening up of our economy. For
instance, while the total outstanding Retail loans in Taiwan is around 41% of GDP, the
figure in India stands at less than 5%. The comparison with the West is even more
staggering. Another comparison that is natural when comparing Retail sectors is the use
of credit cards. Here also, the potential lies in the fact that of all the consumer
expenditure in India in 2001, less than 1% was through plastic, the corresponding US
figure standing at 18%. 16
17. 17
18. Type Public company Traded as BSE: 532480 NSE: ALBK Industry Banking,
Financial services Founded 1865 Headquarters Kolkata, India Number of 2,500 branches
(2012) locations Key people Services Shubhalakshmi Panse(Chairman & MD) T.R
Chawla (Executive Director) Finance and insurance Consumer banking Corporate
banking Revenue 16,822 crore(US$3.1 billion) (2012) Operating income 3,770
crore(US$690 million) (2012) Net income 1,867 crore(US$340 million) (2012) Total equity
500 crore (US$92 million) (2012) Website allahabadbank.in 18
19. Allahabad Bank which began operations in 1865, has its head head-quarters in
Kolkata is the oldest joint stock bank in India. The bank was founded in Allahabad in
1865 and as of 31 March 2012 now has over 2500 branches throughout India. The bank
has a branch in Hong Kong and a representative office in Shenzen. 19th century On 24
April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of
19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital Calcutta, and
Delhi. Nainital, 20th century In the early 20th century, with the start of Swadeshi
movement, Allahabad Bank witnessed a spurt in deposits. In 1920, P & O Banking
Corporation acquired Allahabad Bank with a bid price of 436 (US$8.00) per share. In
1923 the bank moved its head office and the registered office to Calcutta for reasons of
both operational convenience and business opportunities. Then in 1927 Chartered Bank
of India, Australia and China acquired P&O Bank. However, Chartered Bank continued to
operate Allahabad Bank as a separate entity. On 19 July 1969, the Government
nationalised Allahabad Bank, together with 13 other banks. In October 1989, Allahabad
Bank acquired United Industrial Bank, a Calcutta Calcuttabased bank that had been
established in 1940. Two years later, Allahabad Bank established AllBank Finance Ltd, a
wholly owned Merchant o Banking subsidiary. 21st century The government's ownership
of Allahabad Bank shrank in October 2002 after the bank engaged in an Initial Public
Offering (IPO) of 10 crore (US$1.8 million) of shares, each with a face value 10. The IPO
reduced the Government's shareholding to 71.16%. Then in April 2005 the bank
shareholding conducted a second public offering of 10 crore of shares, each with a face
value 10 and selling at a premium of 72. This offering reduced the Government's

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ownership to 55.23%. In June 2006 the bank opened its first office outside India when it
opened a representative office in Shenzen Mainland China. In February 2007, Allahabad
Shenzen, Bank opened its first overseas branch, in Hong Kong. In March, the bank's
business crossed the 1 million crore mark. 19
20. PRODUCT AND SERVICES 1. Personal Banking 2. Social Banking 3. MSME
Banking 4. Corporate Banking 5. International Banking 6. Other Services 20
21. PERSONAL BANKING Personal banking of Allahabad Bank is further divided into
three main categories: i) Deposit Products ii) Retail Credit Products; and iii) Other Credit
Products Deposit Products: It includes:a) Flexi-Fix Deposit b) Mahila Sanchay Account c)
Monthly Plus d) Current Plus Deposit Scheme e) Rs 5 Banking f) Vikash SB Account g)
Sishu Mangal Deposit Scheme h) Premium SB Account i) Premium Current Account j)
Tax Benefit Term Deposit Scheme 21
22. Retail Credit Products: It includes: a) Housing Loan b) Saral Loan c) Furnishing Loan
d) Gyan Dipika Scheme e) Gold Loan Scheme f) Personal Loan for Pensioners g)
Education Loan h) Loan Against NSC(National Saving Certificate)/KVP(Kisan Vikas
Patra) i) Property Scheme j) Reverse Mortgage Scheme k) Loan Scheme for
Doctors/Medical Practitioners l) Commercial Vehicle Finance m) Dream Car n) Bank Rent
Scheme o) Trade Scheme p) IPO/FPO Finance Scheme q) Mobike Scheme r) Overdraft
Facility in SB Account s) Housing Loan Scheme for NRIs(Non-Resident
Indians)/PIOs(Persons of Indian Origin) Other Credit Products: a) Akshay krishi Kisan
Credit Card Scheme b) Allahabad Bank EXPO Scheme c) Allahabad Bank Tax Benefit
Term Deposit Scheme 22
23. SOCIAL BANKING Social Banking is also further segmented into three different
categories: i) Priority Sector ii) Financial Inclusion iii) Credit Facilities to Minority
Communities MSME BANKING MSME stands for Micro, Small and Medium Enterprise.
An enterprises means an Industrial undertaking or a business concern or any other
establishment, by whatever name called, engaged in the manufacture or production of
goods pertaining to any industry specified in the First Schedule to the Industries
(Development and Regulation) Act 1951 or employing plant and machinery in the process
of value addition to the final product having a distinct name or character or use or
engaged in providing or rendering of any service or services. Some important MSME
portals of Allahabad Bank are: i) MSME Policy of the Bank ii) Presence in MSME Cluster
iii) Specialized MSME Branches in Each State iv) MSME Campaigns held and number of
borrowers given loan in the campaigns v) Training provided for the bank staff on MSME
needs and number of persons trained vi) Online system of acknowledgement of loan
application and loan tracking system vii) Format of loan application form with check list
viii) Interest on MSME/Services Charge ix) OTS Scheme of the Bank x) Rehabilitation of
sick MSME xi) Number of people trained in RSETIs and of them those provided credit
linkage xii) Branch Level Customer meets held xiii) Grievance Redressal Mechanism for
MSMEs xiv) Name of Nodal Officer of the bank for MSME complaints and queries: Sri
A.K. Mohapatra Assistant General Manager Priority Sector Credit Department Head
Office, 2 N.S. Road Kolkata 700001 23
24. CORPORATE BANKING Corporate banking includes: i) Cash Management Services
ii) Gold Card Scheme for Exporters iii) Allahabad e Trade iv) 3 IN 1 Account (Triple
Advantage) INTERNATIONAL BANKING Allahabad Bank is well spread out in India and
one overseas Branch at Hong Kong, besides a Representative office at Shenzhen,

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China. Bank has also arrangements with correspondents at various important overseas
locations, which will ensure extending to all our NRI customers rich banking experience.
We understand your needs and value your patronage and would request you to invest
your surplus funds in the various products offered by our Bank. Non Resident: A. In
terms of Regulation 2(vi) of FEMA 5, a Person resident outside India, who is a citizen of
India or is a person of Indian Origin. B. Indian Residents working abroad on assignment
with Foreign Governments, Government agencies or in UNO and its affiliates IMF, IBRD
etc and Government officials and other officials of PSU's deputed abroad or assignments
or posted abroad to their own offices including Diplomatic Missions abroad. C. A person
of Indian Origin who is a citizen of any other country other than Bangladesh or Pakistan
if: i. ii. iii. He/She at any point of time, held an Indian Passport. He/She or either of his/her
parents or any of his/her grandparents was a citizen of India by virtue of Constitution of
India or Citizenship act 1955 (57 of 1955). The persons are a spouse of an Indian Citizen
or a person referred to in sub clause b (i) or (ii) above. 24
25. Students going abroad for studies are treated as Non Resident Indians provided their
stay abroad is for more than 182 days in the preceding financial year and broad their
intention to stay outside India for an uncertain period when they go abroad for studies.
Deposit Account: Non Resident Indians can open accounts under Repatriable and Non
NonRepatriable deposit schemes. In respect of Repatriable scheme the NRIs have the
choice of following schemes for depositing their savings with Our Bank. 25
26. OTHER SERVICES THER Other important services of Allahabad Bank are: i) ii) iii) iv)
v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) xv) xvi) xvii) xviii) xix) Insurance and Mutual Fund
Government Business Depository Services E Products Cards ASBA(Application
Supported by Block Amount) Facility Account Portability Agriculture Debt Wavier All
Ayushman Bima Yojana Samadhan Financial Literacy & Credit Counselling Centre
Deceased Settlement Depository Receipt International Debit Cum ATM Card Money
Transfer Services National Eligibility Fund Transfer(NEFT) New Pension System(NPS)
Non Life Business Insurance Real Time Gross Settlement(RTGS) Regional MSME
Care Centres NOTE: VARIOUS RETAIL LENDING SCHEMES (Hyperlink): Rate of
Interest under Retail Credit Products. Discretionary Authority under Various Retail
Schemes. Services Charges, Processing Fees and Prepayment Fees. 26
27. WORK FLOW MODEL DEPOSITS Customer Approaching the Bank/Enquiry
Introduction Documentation Saving, Fixed, Current and Recurring A/C A/C holder facility
Deposits Withdrawal Cashier Cashier Cash supervision Cash supervision Account for the
customer 27
28. ACCOUNT OPENING Choose an Institution Go to the Bank or Website Pick the
Product You Want Provide Your Information Agree to Terms Print, Sign, and Mail (If
Applicable) Congratulate Yourself! 28
29. MCKINSEYS SEVEN S MODEL AS APPLICABLE TO THAT ORGANIZATION The
Seven-S is a framework for analyzing organizations and their effectiveness. It looks at the
seven key elements that make the organizations successful, or not: strategy; structure;
systems; style; skills; staff; and shared values. Consultants at McKinsey & Company
developed the 7S model in the late 1970s to help managers address the difficulties of
organizational change. The model shows that organizational immune systems and the
many interconnected variables involved make change complex, and that an effective
change effort must address many of these issues simultaneously. 29

30. 30. 7-S Model A Systemic Approach to Improving Organizations The 7-S model is a
tool for managerial analysis and action that provides a structure with which to consider a
company as a whole, so that the organization's problems may be diagnosed and a
strategy may be developed and implemented. The 7-S diagram illustrates the multiplicity
interconnectedness of elements that define an organization's ability to change. The
theory helped to change manager's thinking about how companies could be improved. It
says that it is not just a matter of devising a new strategy and following it through. Nor is it
a matter of setting up new systems and letting them generate improvements. Shared
values are commonly held beliefs, mindsets, and assumptions that shape how an
organization behaves its corporate culture. Shared values are what engender trust.
They are an interconnecting centre of the 7Ss model. Values are the identity by which a
company is known throughout its business areas, what the organization stands for and
what it believes in, it central beliefs and attitudes. These values must be explicitly stated
as both corporate objectives and individual values Strategy is a plan of an
organization formulates to reach identified goals, and a set of decisions and actions
aimed at gaining a sustainable advantage over the competition. Systems define the
flow of activities involved in the daily operation of business, including its core processes
and its support systems. They refer to the procedures, processes and routines that are
used to manage the organization and characterize how important work is to be done.
Style refers to the cultural style of the organization, how key managers behave in
achieving the organization's goals, how managers collectively spend their time and
attention, and how they use symbolic behaviour. How management acts is more
important that what management says. Staff refers to the number and types of
personnel within the organization and how companies develop employees 30
31. 31. and shape basic values. Skills refer to the dominant distinctive capabilities and
competencies of the personnel or of the organization as a whole. Structure is the
organizational chart and associated information that shows who reports to whom and
how tasks are both divided up and integrated. In other words, structures describe the
hierarchy of authority and accountability in an organization, the way the organization's
units relate to each other: centralized, functional divisions (top-down); decentralized (the
trend in larger organizations); matrix, network, holding, etc. These relationships are
frequently diagrammed in organizational charts. Most organizations use some mix of
structures - pyramidal, matrix or networked ones - to accomplish their goals. 31
32. 32. STRUCTURE Board of Directors Mrs. Subhalakshami Panse Shri Tilak Raj Chawla
Shri Arun Tiwari Dr. Shashank Saksena Shri A. Udgata Chairman & Managing Director
Allahabad Bank Executive Director Executive Director Government Nominee Director RBI
Nominee Director Allahabad Bank Allahabad Bank Allahabad Bank Allahabad Bank Shri
Rajesh Madanmohan Chatruvedi Chartered Accountant Director Allahabad Bank Shri
Gour Das Workmen Employee Director Allahabad Bank Dr. Sudip Chauduri
Shareholders Director Allahabad Bank 32
33. 33. SKILLS Highly skilled candidates are recruited at various levels across the
organization. Skills can be classified broadly into highly skilled and semi skilled routine
work. Various training program are organized regularly to impart training needs of the
employees. STYLE /CULTURE The culture of the organisation, consisting of two
components: Organisational culture: the dominant values and beliefs, and norms, which
develop over time and become relatively enduring features of organisation life.

Management Style: More matter of what managers do than what they say how do a
companys managers spend their time? What are they focusing attention on? Symbolism
the creation and maintenance (or sometimes deconstruction) of meaning is a
fundamental responsibility of managers. Building a high performance culture is another
key prerogative of the HR function. Allahabad bank envisage a credible and transparent
performance management process that helps in aligning individual goals with corporate
objectives, both quantitative and qualitative, and encourages cross sell and team spirit.
Allahabad bank performance management process will be supported by a robust rewards
and recognition strategy for each business and a market based compensation structure
that is flexible, responsive and helps retention through asset building and wealth creation
for top performers. 33
34. 34. STRATEGY Being one of the leading banking institutions with rich culture of
professionalism the bank has various strategies to tackle with competitors in the market.
The bank has the strategy to make use of the growing potential of the rural sector as well
as the global academy, the business landscape will be changing magically and so will the
financial service need. The bank has the strategy to enhance the reach of anytime and
anywhere banking. It has the ATMs almost in all the cities and in good numbers. With the
growing of the net banking the bank have several new products and facilities with stateof-the-art facilities, enabling you to conduct all your banking activities using your personal
computer, from the comfort of your home or office. Thus providing you with secure, 24
hour access to all your accounts from anywhere in the world. Unique Advantages: Single
Access Key: Our revolutionary technology allows you to access your account with your
debit card PIN. Just log on to our website, select Internet Banking services and key in
your Customer ID and debit card PIN. On successful validation you will be allowed to
select an Internet password. It's that easy. Secure Technology: For the first time in India,
our Two Factor Authorization allows for "One Time Passwords" for Internet Banking
transaction authentication to be delivered via SMS to your Mobile Phone. This password
enhances your Internet Banking security and allows you the freedom of banking without
remembering multiple passwords. 34
35. 35. Instant Payment Solutions: Our Real Time Gross Settlement (RTGS) Payment and
Electronic Funds Transfer (EFT) facilities allow you to transfer funds to own or third party
accounts instantly. You can also request for multiple Demand Drafts at various locations
and set up standing instructions for your account to execute routine payments SYSTEM
Formal and informal procedures that support the strategy and structure (systems are
more powerful than they are given credit). The bank follows a systematic procedure at all
the levels. The bank has very good performance appraisal system, training and
development system, resource allocation system, distribution and recovery system. The
instructions flow from top management to lower levels of management. The training
needs are developed after TNI (Training Needs Identification) and all the programs are
put on the monthly/annual training calendar to be implemented. STAFF The
people/human resources management processes used to develop managers,
socialization processes, ways of shaping basic values of management cadre, ways of
introducing young recruits to the company, ways of helping to manage the careers of
employees. Allahabad Bank envisaged that for an individual to work with the organization
in perfect synergy, his/her goals had to be linked with the goals of the organization. This
process of aligning individual and organizational goals was termed as the performance

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management process. The main objective of these innovative performance management

practices was to encourage the employees to think innovatively. 35
36. SHARED VALUE The bank aimed at building a culture to inculcate professional
entrepreneurship in them to make themselves and the shareholders prosperous.
Allahabad Bank has planned to steadily increase its presence in retail business. Earlier
bank has purposely maintained a low-key presence in the retail market, now is planning
to increase exposure in this segment. There is tremendous scope for Allahabad Banks
growth as it was trying to take care of the latent needs of the customers with highly skilled
and involved employees. 36
37. SWOT ANALYSIS STRENGHTS: It has an extensive distribution network comprising
of 2716 branches. The Bank has a strong retail depository base & has good number of
customer. Bank boasts of strong brand equity. The bank has a near competitive edge
in area of operations. The bank has a market leader in cash settlement service for the
major stock exchanges in its country. Allahabad Bank is one of the largest public sector
banks operating in India. It has a highly automated environment in terms of information
technology & communication system. Infrastructure is best. It has many innovative
products like kids Instapay, NRI services. WEAKNESS: Some time account opening and
delivery of cheque book take comparatively more time. Occasionally link failure. 37
38. OPPORTUNITY: Branch expansion. Door step services. Infrastructure improvements
& better systems for trading & settlement in the government securities & foreign exchange
markets. THREATS: o The bank has started facing competition from players like SBI,
HDFC Bank in the finance market itself. o This reduces the profit margins in the future. o
Some Private Banks have 7 days banking. 38
39. 39
40. TITLE OF THE PROJECT A Study on Retail Banking with special reference to
Allahabad Bank STATEMENT OF THE PROBLEM As there are immense opportunities
of the retail banking in India. This project is on the issues and challenges in the retail
banking because of the competition of the various banks and the customer satisfaction of
the services which the banks are providing and at the same time to solve the complaints
of the customer and maintaining the sound relationship for the future and by this way to
estimate the future growth of the retail banking. OBJECTIVES OF STUDY To study the
issues and challenges in retail banking. To study the recent trends in retail banking. To
ensure high satisfaction level and reduce percentage of complaints of customer in retail
banking. To estimate the future growth of Indian retail banking. To understand
Optimization of retail banking channels. To suggest strategies for improvement in
Customer Service. 40
41. OPERATIONAL DEFINITION Retail banking refers to banking in which banking
institutions execute transactions directly with consumers, rather than corporations or
other banks. Services offered include: savings and checking accounts, mortgages,
personal loans, debit cards, credit cards, and so forth. And to know about the customers
perceptions about the different products of the bank like current account, savings
account, FD, Smart Saver, Smart Access and others. DATA COLLECTION There are
several approaches of data collection. The primary sources of data collection are done
through: Observation Questionnaire Questionnaire: Questionnaire is the method of data
collection, which is very much popular, particularly in big cities. Different modes of
questions are put up on the paper and the particular universe, on which the research is

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conducted, are asked to fill their responses. The Secondary source includes data
collection through: Magazines, Journals, Books, Newspapers etc. Company Website. 41
42. 42
43. SAMPLING TECHNIQUE (a) Sampling Unit: - Walk in customers and the company
database of high ended customer. (b) Sample Size:Sample size for this project was
restricted to 50 respondents. Since it was not possible to cover the whole universe in the
available time period, it was necessary for me to take a sample size of 50 respondents.
(c) Sampling Method:There are three methods of sampling:1. Probability Sampling 2.
Non-Probability Sampling 3. Quota For this research work Non- Probability Convenience
Sampling has been chosen because time limit for the completion of the work is limited.
Area of Study - Durgapur, West Bengal Duration - 2 months (13th May 13 13th July
13) 43
44. DATA COLLECTION METHOD Data for the present study is collected from two
sources: 1. Primary Data: The data are collected directly from the universe by conducting
interviews, etc. these are the original sources from which the researcher directly gathers
data which are not previously referred. All the people from different profession were
personally visited and interviewed. They were the main source of primary data. The
method of collection of primary data was personal direct interview through a structured
questionnaire. The primary data was collected by means of survey. Questionnaires were
prepared and customers of Allahabad Bank were approached to fill up these
questionnaires. The filled up information was later analyzed to obtain the required
information. 2. Secondary Data: The data are collected from the secondary sources such
as magazines, journals, etc. These sources consist of already variable data in the form of
statements, and reports, which may include sensory reports, financial statements of the
company, reports of governments departments, etc. It was collected from internal
sources. The secondary data was collected on the basis of organizational file, official
records, newspapers, magazines, management books, preserved information in the
companys database and the website of the company. Both Primary and Secondary
sources was used for data collection. For primary source, Questionnaire was used. For
secondary source Internet, Books and Newspapers etc were used. 44
45. RESEARCH DESIGN Research design is simply the framework or plan for a study,
used as a guide in collecting and analyzing data. There are three types of Research
Design:1. Exploratory Research Design 2. Descriptive Research Design 3. Casual
Research Design For the study, Exploratory Research Design was undertaken to classify
the investors on their risk and return profile. PLAN OF ANALYSIS The data obtained from
the structured questionnaire was interpreted and recorded. The table and graph were
constructed using data from the questionnaire through simple techniques like average,
percentage, etc. which was then used for analyzing the acquired data. 45
46. LIMITATIONS Designing own and new financial products is very costly and time
consuming for the bank. Customers now-a-days prefer net banking to branch banking.
The banks that are slow in introducing technology-based products, are finding it difficult to
retain the customers who wish to opt for net banking. Customers are attracted towards
other financial products like mutual funds etc. Though banks are investing heavily in
technology, they are not able to exploit the same to the full extent. A major disadvantage
is monitoring and follows up of huge volume of loan accounts inducing banks to spend
heavily in human resource department. Long term loans like housing loan due to its long

47.
48.

49.

50.

51.

52.

53.

repayment term in the absence of proper follow-up, can become NPAs. The volume of
amount borrowed by a single customer is very low as compared to wholesale banking.
This does not allow banks to exploit the advantage of earning huge profits from single
customer as in case of wholesale banking. 46
47. 47
48. Profile of Respondents Respondents were the customers of Allahabad Bank of
Durgapur ere Bank city (West Bengal) of age group 21 21-65 years. A. Opinion on
Branch experience. The Branch timings (10:0 am to 3:30 pm from Monday to Friday and
(10:00 10:00 am to 12:30 pm on Saturday are convenient? Saturday) Table: 1 Parameter
Very Good Good Satisfactory Could be better In numbers In percentage 45 5 0 0 90 10 0
0 Interpretation The purpose of this question is to know the whether the bank timings are
convenient for the custom 90% of respondents says that bank timings are customer, very
good and 10% of respondent replied that timings are good. None of the customers have
any problem with resp to timings. respect Inference: As 90% responded very well, it
seems high number are happy , with bank timings. 48
49. Is the branch ambience & layout is very friendly? Table: 2 Parameter In numbers In
percentage Very Good 40 80 Good 7 14 Satisfactory 2 4 Could be better 1 2
Interpretation 80% were of the respondent says that branch ambience is very good, 14%
were of the respondent replied that branch ambience is good while 4% says that it is
satisfactory & just 1% replied that it could be better. Inference: As 80% of respondents
say branch ambience is very good, so not too many respondents like the branch
ambience. 49
50. Is the Branch was clean and well maintained? Table: 3 Parameter Very Good Good In
numbers 40 7 In percentage 80 14 Satisfactory 2 4 Could be better 1 2 Interpretation
80% were of the respondent says that branch cleanness is very good, 14% were of the
replied that branch cleanness is good while 4% says that it is satisfactory & just 1%
replied that it could be better. Inference: As 80% of respondents say branch cleanness is
very good, so not too many respondents like the branch cleanness. 50
51. B. Opinion of the customer regarding Branch personnel. Is the branch personnel have
listened to you patiently and have been able to respond to your queries and
clarifications? Table: 4 Parameter In numbers In percentage Very Good Good 38 7 76 14
Satisfactory Could be better 3 2 6 4 Interpretation 76% of respondent says that branch
personnel listened patiently& have been able to respond to their queries, 14% of
respondents replied that it is good. While only 6% of respondent says that it is
satisfactory and 4% replied that it could be better. Inference: As only 76% of respondent
says that branch personnel listens patiently and have been able to respond to queries
and clarifications, so not too many respondents are satisfied. 51
52. Is the branch personnel have been very helpful and courteous? Table: 5 Parameter In
numbers In percentage Very Good 37 74 Good 8 16 Satisfactory 3 6 Could be better 2 4
Interpretation 74% of respondent says that branch personnel have been very helpful and
courteous, 16% of respondents replied that it is good. While only 6% of respondent says
that it is satisfactory and 4% replied that it could be better. Inference: As only 74% of
respondent says branch personnel have been very helpful and courteous, so not too
many respondents are satisfied. 52
53. Is the branch personnel have done a Need Analysis & Risk Assessment before
recommending any investment option? Table: 6 Parameter Very Good Good Satisfactory

54.

55.

56.

57.

58.

59.

Could be better In numbers 36 10 3 1 In percentage 72 20 6 2 Interpretation 72% of the

respondent says that risk assessment before recommending any investment is very
good, 20% of respondents replied that it is good, 6% of respondent says that it
satisfactory and only 2% replied it could be better. Inference: As only 72% of respondent
says that branch personnel does a Need Analysis & Risk Assessment before
recommending any investment option, so not too many respondents have positive
response. 53
54. Is the branch personnel were aware of Product and Services and responded to your
queries? Table: 7 Parameter In numbers In percentage Very Good 43 86 Good 3 6
Satisfactory 3 6 Could be better 1 2 Interpretation 86% respondent says that branch
personnel responded to their queries and is very good, 6% says to be good & 6%
satisfactory. Only 2% said it could be better. Inference: As 86% of respondent says that
branch personnel were aware of Product and Services and responded to customer
queries, so not too many respondents are satisfied. 54
55. C. Customers opinion of transacting in Branches. Is the waiting time at the Teller
Counter was minimal? Table: 8 Parameter In numbers In percentage Very Good 40 80
Good 5 10 Satisfactory 1 2 Could be better 4 8 Interpretation 80% of respondent says
that waiting time is minimum at teller counter and it is very good, 10% of respondent
replied that it is good, 8% its satisfactory and 2% said it could be better. Inference: As
80% of respondent says that waiting time at teller counter was minimal, not too many
were satisfied with transaction. 55
56. Is the transactions done by us have been smooth & error free? Table: 9 Parameter In
numbers In percentage Very Good 45 90 Good 5 10 Satisfactory 0 0 Could be better 0 0
Interpretation 90% of respective says that transactions are smooth and error free, 10% of
respondent replied that transactions are good. None of the customers have any problem
with respect to timings. Inference: As 90% responded very well, it seems high number
are happy with the banking transactions. 56
57. Is Allahabad Bank looks into the feedback provided by you and takes necessary
action if required? Table: 10 Parameter In numbers In percentage Very Good 41 82 Good
5 10 Satisfactory 2 4 Could be better 2 4 Interpretation 82% of respondent responded
that Allahabad Bank looks into the feedback & is very good, 10% said its good, 4% said
its satisfactory and 4% said it could be better. Inference: As 82% of respondent says
Allahabad bank looks into the feedback provided by customer and takes necessary
action if required, not too many were satisfied with transaction. 57
58. D. Customers opinion for bank services. Are you happy with the TAT (Turn Around
Time) post request? Table: 11 Parameter In numbers In percentage Very Good 40 80
Good 7 14 Satisfactory 2 4 Could be better 1 2 Interpretation 80% of respondent says
that TAT post request is very good, 14% said its good 4% said its satisfactory and 2%
said it could be better. Inference: As 80% of respondent says the TAT (Turn Around Time)
post request is very good, not too many were satisfied with TAT post request. 58
59. E. Products and Services. Which feature of the Allahabad Bank Savings account you
like most? Table: 12 Parameter In numbers In percentage Rs 5 Banking Current plus
Deposit Scheme Mahila Sanchay 19 38 22 7 45 13 Vikash SB A/C 2 4 Interpretation 38%
of the respondent says for Rs 5 Banking, 45% of respondent are in favour of Current plus
Deposit Scheme, 13% are in favour of Mahila Sanchay while only 4% like Vikash Saving

60.

61.

62.

63.

64.

Bank Account. Inference: Maximum number of people like Current plus Deposit Scheme
feature of Allahabad Bank Savings account. 59
60. How do you rate the ALLAHABAD BANK COMMUNITY EVENTS held at Allahabad
Bank? Table: 13 Parameter In numbers In percentage Very Good 37 74 Good 8 16
Satisfactory 3 6 Could be better 2 4 Interpretation 74% of the respondent says that
ALLAHABAD BANK COMMUNITY EVENTS are very good, 16% of respondents replied
that events are good, 6% said it is satisfactory and 4% said it could be better. Inference:
As 74% of respondent says ALLAHABAD BANK COMMUNITY EVENTS is very good,
not too many replied for community events. 60
61. Is the information in the Bank Statement clear, easy to understand and adequate?
Table: 14 Parameter In numbers In percentage Very Good 39 78 Good 6 12 Satisfactory
5 10 Could be better 0 0 Interpretation 78% of the respondent says that information in
bank statement is clear, easy & adequate and is very good, 12% of respondent replied
that it is good, 10% said it is satisfactory. Inference: As 78% of respondent says that
information in the Bank Statement is clear, easy to understand and adequate or not, not
too many were satisfied with the bank statement. 61
62. Will you recommend Allahabad Bank to your friends and relatives? Table: 15
Parameter In numbers In percentage Most Definitely 45 90 Yes 4 8 May Be 1 2 No 0 0
Interpretation 90% of respondent says that they will most definitely recommend
ALLAHABAD BANK to their friends & relatives, 8% of respondent says yes. Only 2% said
may be. Inference: As 90% of respondent says that they will definitely recommend
ALLAHABAD BANK to their families & friends, maximum number of respondent replied
positive. 62
63. OPPORTUNITIES AND CHALLENGES Retail banking has immense opportunities in
a growing economy like India. As the growth story gets unfolded in India, retail banking is
going to emerge a major driver. How does the world view us? The BRIC report is viewing
India as an economic superpower. A.T. Kearney, a global management-consulting firm,
recently identified India as the second most attractive retail destination of 30 emergent
markets. The rise of Indian middle class is an important contributory factor in this regard.
The percentage of middle to high-income Indian households is expected to continue
rising. The younger population not only wields increasing purchasing power, but as far as
acquiring personal debt is concerned, they are perhaps more comfortable than previous
generations. Improving consumer purchasing power, coupled with more liberal attitudes
towards personal debt, is contributing to Indias retail banking segment. The combination
of above factors promises substantial growth in retail sector, which at present is in the
nascent stage. Due to bundling of services and delivery channels, the areas of potential
conflicts of interest tend to increase in universal banks and financial conglomerates.
Some of the key policy issues relevant to the retail-banking sector are: financial inclusion,
responsible lending, and access to finance, long-term savings, financial capability,
consumer protection, regulation and financial crime prevention. 63
64. Challenges for the Industry and its Stakeholders: First, retention of consumers is
going to be a major challenge. According to a research by Riechheld and Sasser in the
Harvard Business review, 5 percent increase in customer retention can increase
profitability by 35 percent in banking business, 50 percent in insurance and brokerage,
and 125 percent in the consumer credit card market. Thus, banks need to emphasis on
retaining consumer and increasing the market share. Second, rising indebtedness could

turn out to be a cause for concern in the future. Indias position, of course, is not
comparable to that of developed world where household debt as a proportion of
disposable income is much higher. Such a scenario creates high uncertainty. Expressing
concerns about the high growth witnessed in consumer credit segments the reserve bank
has, as a temporary measure, put in place risk containment measures and increased the
weight from 100 percent to 125 percent in the case of consumer credit including personal
loans and credit cards. Third, information technology poses both opportunities and
challenges. Even with ATM machines and Internet Banking, many of the customers still
prefer the personal touch of their neighbourhood branch bank. Technology has made it
possible to deliver services throughout branch network, providing instant updates to
checking accounts and rapid movement of money for stock transfers. However, this
dependency on the network has bought IT departments additional responsibilities and
challenges in managing, maintaining and optimizing the performance of retail banking
networks. Fourth, KYC Issues and money laundering risks in retail banking is yet another
important issue. Retail lending is regarded as a low risk area for money laundering
because of the perception of the sums involved. However, competition for clients may
also lead to KYC procedures being waived in the bid for new business. Banks must also
consider seriously the type of identification documents the will accept and other
processes to be completed. The Reserve Bank has issued details guidelines on
application of KYC norms in November 2004. 64
65. 65. Trends in Retail Banking Growing a retail banking business is becoming increasingly
challenging. The yield curve is flattening, reducing banks net interest margin.
Competition is intensifying, as new, non-traditional players enter the retail banking space.
And consumer preferences for financial products, payment methods and distribution
channels continue to evolve, providing revenue opportunities, but also introducing new
operational challenges. The changing dynamics of the retail banking business have
significant implications for financial institutions. In order to successfully compete in this
environment, banks must provide a distinctive customer experience and offer innovative
product solutions in order to differentiate their value proposition in the marketplace. Key
trends in retail Banking are: 1. Bifurcation of the retail banking business: NationalConsolidate- Credit Cards Home Equity Loans Mortgages Local- Fragmented- Deposits
Instalment Loans & Small Business Loans 2. Lack of differentiation in retail financial
services: Many financial institutions are struggling to differentiate their value propositions
in the retail banking market. Free checking is now offered by all or most financial
institutions. Most institutions no longer charge for online banking or online bill payment.
Extended branch hours are increasingly common in many markets, as banks seek to
increase customer convenience. 3. Proliferation and growth of electronic payments. 4.
Increasing demand for ATM access. 65
66. 66. Strategies for Ensuring high Customer Satisfaction Set service expectations and
standards of behaviour - this means that managers must set clear service expectations
and standards of behaviour, beginning with defining "excellent service." Identify and
eliminate barriers and obstacles. Policies that do not make sense; procedures that get in
the way; and rules, norms that make satisfying customers difficult all need to be
eliminated to successfully improve service. Learn and develop skills. Clearly, personnel at
all levels should learn new skills related to service excellence and serve the customer.
Listen to your customers. Measurement of customer satisfaction can be a powerful way to

67.

68.

69.

70.

improve service if the feedback is not focused on punishment. Managers need to help
staff hear, first hand, how they are doing. For this feedback to be effective, however, it
must be tied to specific targets and goals and needs to be frontline driven. Reinforce and
support continuous improvement. The real challenge is keeping the energy, learning, and
improving alive. 66
67. SUMMARY OF FINDINGS With reference to table no.1, 90% of customers are happy
with the bank timings & they said that it is very good. With reference to table no. 2, 80%
of respondents like the branch ambience & layout & find it friendly with reference to table
no.3, 80% of respondents said branch was clean and well maintained. With reference to
table no.4, 76% respondents view that branch personnel had listened to them patiently
and have been able to respond to their queries and clarifications. 74% of respondent
responded that Branch personnel had been very helpful and courteous with reference to
table no.5. With reference to table no. 6, 72% of respondent says that branch personnel
do Need Analyses & Risk Assessment of customer savings before recommending any
investment option to them. With reference to table no.7, 86% of respondent that branch
personnel are aware of Product and Services and responded to your queries. With
reference to table no 8, 80% of respondents says that waiting time at the Teller Counter is
minimum and is very good. With reference to table no.9, 90% of respondent says that
transactions are smooth and error free & is very good. With reference to table no. 10,
82% of respondent responded that Allahabad Bank looks into the feedback & is very
good. 67
68. With reference to table no.11, 80% of respondent said that they are happy with the
TAT post request is very good. With reference to table no.12, 45% of respondents are in
favour of Current plus Deposit Scheme feature of the Allahabad Bank Savings account.
With reference to table no.13, 74% of the respondent said that ALLAHABAD BANK
COMMUNITY EVENTS are very good. With reference to table no. 14, 78% of the
respondent said that information in bank statement is clear, easy & adequate and is very
good. With reference to table no 15, 90% of respondent said that they will most definitely
recommend ALLAHABAD BANK to their friends & relatives. Overall the response of the
bank customer is good. 68
69. SUGGESTIONS Suggestions are always considered to be the most important part of
any project report because for every pros; there is cons associated with and to reduce the
effect of latter, following suggestions must be taken into consideration in regard to retail
banking. The Branch personnel should listen to customer patiently and should be able to
respond to their queries and clarifications because some customer are new to some of
the bank services and until and unless they will come to know about those services they
will be not be satisfied. With reference to table no. 5 as not many respondents said that
Branch Personnel are helpful and courteous, so I will suggest that Bank personnel should
be helpful & courteous towards maximum number of customers. With reference to table
no. 6, larger number of branch personnel should do Need Analysis & Risk Assessment
before recommending any investment option to customer. With reference to table no.7,
more branch personnel should be aware of Product and Services and responded to
customers queries. With reference to table 10, Allahabad bank should look into the
feedback provided by customer and takes necessary action wherever required. 69
70. With reference to table no. 12, bank should focus on Mahila Sanchay Saving Bank
A/C as small 10% of customer likes this. Some time the customer has to wait at the Teller

Counter, the service should be improved by appointing more staff, with reference to table
no.11. Information in the Bank Statement should be more clear, easy to understand and
adequate. Along with customer satisfaction employees participation must be kept active
by appraising their salary as well as their work. Frequently customers must be kept
delighted by providing them regards and by maintaining customer relationship so that
their interest can be kept maintained. The Allahabad bank should focus on business and
service portfolio for a reputation of being niche players in the industry. The bank should
concentrate on few reliable high net worth companies and individuals rather than cater to
the mass market. As 10% customer response is not good for the clarification of the
queries response towards them so bank personnel should improve this issue because
customer is a source through which business can be increase and satisfy customers is a
source to create more customers, with reference to table no.4. 70
71. 71. As it is only 10% respondent said that sometime there was a error in the transaction
happened so to avoid these kinds of errors should be avoided because it is unnecessarily
results in wastage of time for both staff members and service rendered, reference to table
no. 9. There should be increase in the number of events organize by bank because it is a
opportunity for the bank to introduce new products and services and at the same time it is
a open opportunity for the customer to come forward and suggest its views which might
prove to add the values for the bank because 10% customer still not have a good
response, with reference to table no.13. Communication with the customer should be
improved and increased so that bank can easily response towards them and in result the
customer would be satisfy and no question that they will recommend the Allahabad Bank
to their friends and relatives because only 2% of customer are not responding in a
positive manner. 71
72. 72. CONCLUSIONS FUTURE GROWTH The project aims to study the retail banking
operations of ALLAHABAD BANK. The study was very fruitful, it yielded the desired
results, helped me understand the retail banking. The study also helps in what are the
customer opinions towards operations of bank & its various product and services. Any
serious discussion of the future of the retail banking industry eventually raises a basic
question: will future customers still need retail banks? The answer, it turns out, depends
on banks themselves. With technology and non blank businesses providing new options
for safeguarding and managing their finances, customers will continue to depend on
banks only as long as banks can provide service and value that cannot be found
anywhere else. The need to become highly customer focused has forced the slowmoving public sector banks to adopt a fast track approach. The unleashing of products
and services through the net has galvanized players at all levels of the banking and
financial institutions market grid to look a new at their existing portfolio offering.
Conservative banking practices allowed. Indian banks to be insulated partially from the
Asian currency crisis. Indian banks are now quoting at higher valuation when compared
to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have
major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Cooperative banks are nimble footed in approach and armed with efficient branch networks
focus primarily on the high revenue niche retail segments. The Indian banking has finally
worked up to the competitive new Indian market and is addressing the relevant issues
multifarious challenges of globalization. Banks that employ perceived to be futuristic and
proactive players capable multifarious requirements of the large customers base.

73.

74.
75.

76.

dynamics of to take on IT solutions of meeting the the are the ALLAHABAD BANK has a
great opportunity to increase their market potential in the present market situation. 72
73. LEARNING EXPERIENCE The dissertation is to define the retail banking and
regarding the general services of bank. The study was very fruitful, it yield the desire
result, helped me to understand the banking services better. The study also yields what
are the factors that banking is looking forward for the customer. The Indian banking has
come from a long way from being a sleepy business institution to a highly proactive and
dynamic entity. This transformation has been largely brought about by the large dose of
liberalization and economic reforms that allowed banks to explore new business
opportunities rather than generating revenues from conventional streams (i.e. borrowing
and lending). The banking in India is highly fragmented with 30 banking units contributing
to almost 50% of deposits and 60% of advances. Under the ambit of the nationalized
banks come the specialized banking institutions. The bank gives great importance
towards customer satisfaction. The senior staffs with their busy schedule try to advice the
customer how to invest in better way. The employees in the bank are well behaved and
give a great deal of satisfaction to see them how they approach their customers. The
bank plays an important role not only to fulfil their duties towards customer but also to
understand them better regarding what they want and how to maximize the return on the
investment. The bank has set up separate department to impart training program for the
employees. The biggest achievement is the implementation of core banking solution. 73
74. 74
75. Audited Financial Results for the year ended 31st March 2013 ALLAHABAD BANK
AUDITED FINANCIAL RESULTS for Year ended 31st March, 2013. (Rs. In lakh) Quarter
Ended PARTICULARS Year Ended Year Ended (Consoli dated) 31.12.2 31.03.2 012 013
(Revie wed) 31.03.2 31.03.2 31.03.2012 (A 31.03.2 012 31.03.2 012 udited) 013 (Audit
013 (Audit ed) ed) 425236 444466 416824 174356 155232 174612 155276 9 8 0 7
Interest/disco (a unt on 312619 323371 ) advances/bills 307631 127450 116641 127450
116641 3 3 4 3 (b Income on ) investments 109792 116104 103974 447332 371638
449834 372009 Interest on balances with Reserve (c Bank of India ) and other interbank
funds 1808 2931 4843 15944 12289 15993 12289 (d Others ) 1017 2060 376 5790 1988
5789 2056 2. Other Income 52454 34068 35514 147691 129868 158773 131912 3
TOTAL INCOME (1+2) 477690 478534 452338 189126 168219 190489 168467 0 6 3 9 4
Interest Expended 319634 311444 287987 125692 103606 125685 103599 8 3 3 7 5
Operating Expenses (i) + (ii) 81328 74244 295810 269139 306770 272290 1. Interest
Earned (a) + (b) + (c) +(d) 81086 75
76. (i) Employee Cost Other operating expenses (All items exceeding 10% of the (ii total )
expenditure excluding interest expenditure may be shown separately) 54498 56349
49504 198594 183449 200069 183611 26830 24737 24740 97216 85690 106701 88679
6 Total Expenditure (4+5) excluding provisions and contingencies 400962 392530
362231 155273 130520 156362 130828 8 2 3 7 7 Operating Profit before Provisions and
contingencies (3-6) 76728 86004 90107 338522 376994 341270 376392 8 Provisions
( other than tax) and contingencies 62249 43243 45440 183254 160697 183253 160813
9 Exceptional Items 0 0 0 0 9 --Of which Provisions for nonperforming assets 14479
42761 44667 155268 216297 158017 215579 Profit (+)/ Loss (-) from 10 Ordinary
Activities before tax (7- 0 0 0 76

77. 77. 8-9) 11 Tax Expenses 1864 11678 4645 36747 Net Profit(+) / Loss (-) from Ordinary
12 12615 Activities after tax(1011) 31083 40022 118521 186678 121186 185960
Extraordinary Items (net of 13 tax expenses) 0 0 0 Net Profit (+) / Loss (-) for 14 12615
the period (12-13) 31083 40022 118521 186678 121186 185960 Paid-up equity share
capital 15 (Face Value of share is Rs10.00) 50003 50003 50003 50003 Reserves
excluding 16 revaluation reserves 998326 914659 914659 999650 914658 102222
934240 1 55.24 55.24 55.24 55.24 55.24 55.24 55.24 Capital Adequacy (ii Ratio (%)
11.03 ) (As per BaselII) 11.96 12.83 11.03 12.83 11.85 13.99 Earnings per share (Rs.) a.
(ii Basic and i) diluted EPS before 6.22 8.40 23.70 39.18 24.24 39.03 17 0 29619 0
50003 36831 0 50003 29619 0 50003 Analytical Ratios Percentage of shares held (i) by
Government of India 2.52 77
78. 78. Extraordinary Items (net of tax expense) for the period, for the year to date and for the
previous year (not annualised) b. Basic and diluted EPS after Extraordinary Items for the
period, for the 2.52 year to date and for the previous year (not annualised) 6.22 8.40
23.70 39.18 24.24 39.03 NPA Ratios a) (i) Gross NPA 513699 353160 205898 513699
205898 513699 205898 (ii) Net NPA 412676 247750 109170 412676 109170 412676
109170 3.92 2.91 1.83 3.92 1.83 3.92 1.83 (ii) % Net NPA 3.19 2.06 0.98 3.19 0.98 3.19
0.98 (c) Return on Assets 0.26 0.67 0.88 0.64 1.02 0.64 1.02 (i (b) (i) % of v) Gross NPA
Public Shareholding 223810 223810 771 771 223810771 223810 223810 223810
223810 771 771 771 771 --Percentage of share holding 18 -- Number of shares 44.76
44.76 44.76 276215418 276215 276215 276215 276215 418 418 418 418 44.76
Promoters and 276215 276215 19 promoter 418 418 group 44.76 44.76 44.76 78
79. 79. Shareholding a) Pledged/Encu mbered - Number of Shares NIL NIL NIL NIL NIL NIL
-Percentage of share (as a % of the total shareholding of promoter and promoter group)
NIL NIL NIL NIL NIL NIL NIL -Percentage of share (as a % of the total share capital of the
company) b) NIL NIL NIL NIL NIL NIL NIL NIL Nonencumbered - No of Shares 276215
276215 418 418 276215418 276215 276215 276215 276215 418 418 418 418
-Percentage of share (as a % of the total shareholding of promoter and promoter group)
100 100 100 100 100 100 100 -Percentage of share (as a % of the total share capital of
the company) 55.24 55.24 55.24 55.24 55.24 55.24 55.24 79
80. 80. Statements of Assets and Liabilities are as under: Rs. in lacs Particulars As on
31.03.2013 (Audited) As on 31.03.2012 (Audited) Capital and Liabilities: 50003 50003
1085249 1000659 17874160 15959308 1009759 909448 418148 374039 20437319
18293457 Cash and Balances with Reserve Bank of India 780822 871245 Balances with
Bank and Money at Call and Short Notice 526251 531276 5830586 5428324 12948965
11114510 Fixed Assets 125152 119773 Other Assets 225543 228329 20437319
18293457 Capital Reserve and Surplus Deposits Borrowings Other Liabilities Total
Assets: Investments Advances Total 80
81. 81. QUESTIONNAIRE Allahabad Bank Help us to serve you even better Dear Valued
Customer, Your candid feedback on our service standards is very important for us to help
you even better. We would like to know a little more about you:Your Name:
____________________________________________________ Your Customer Id/A/c
No. (Optional): _______________________________ Your Branch:
___________________________________________________ Your E-mail id:
_________________________________________________ Your Contact details:
_____________________________________________ How frequently do you visit the

Branch (in a month)? ___________________

______________________________________________________________ 81
82. 82. We would like to know about your experience of banking with us. Please tick as
appropriate. A. How was the Branch experience? 1) Is the branch timings (10:00 am to
3:30 pm from Monday to Friday and 10:00 am to 12:30 pm on Saturday) are convenient?
a) Very Good b) Good c) Satisfactory d) Could be better 2) Is the branch atmosphere &
layout is very friendly? a) Very Good b) Good c) Satisfactory 3) Is the Branch was clean
and well maintained? a) Very Good b) Good c) Satisfactory d) Could be Better d) Could
be Better B. How did you find our Branch personnel? 4) Is the Branch personnel have
listened to you patiently and have been able to respond to your queries and
clarifications? a) Very Good b) Good c) Satisfactory d) Could be better 5) Is the Branch
personnel have been very helpful and courteous? a) Very Good b) Good c) Satisfactory
d) Could be better 6) Is the branch personnel have done a Need Analyses & Risk
Assessment before recommending any investment option? a) Very Good b) Good c)
Satisfactory d) Could be better 7) Is the branch personnel were aware of Product and
Services and responded to your queries? a) Very Good b) Good c) Satisfactory d) Could
be better C. How was your experience of transacting in our Branches? 8) Is the waiting
time at the Teller Counter was minimal? a) Very Good b) Good c) Satisfactory d) Could
be better be 82
83. 83. 9) Is the transactions done by us have been smooth & error free? a) Very Good 10) b)
Good c) Satisfactory d) Could be better Is Allahabad bank looks into the feedback
provided by you and takes necessary action if required? a) Very Good 11) b) Good c)
Satisfactory d) Could be better Are you Happy with the TAT (Turn Around Time) post
request? a) Very Good b) Good c) Satisfactory d) Could be better 12) Which feature of
the Allahabad Bank Savings account you like most? a) Mahila Sanchay b)Vikash SB A/C
c) Current plus Deposit Scheme d) Rs 5 Banking D. How do you like what we send to
you? 13) How do you rate the COMMUNITY EVENTS held at Allahabad Bank? a) Very
Good b) Good c) Satisfactory d) Could be better 14) Is the information in the Bank
Statement clear, easy to understand and adequate? a) Very Good b) Good c)
Satisfactory d) Could be better 15) Will you recommend Allahabad Bank to your friends
and relatives? a) Most Definitely b) Yes c) May be d) No Thank You 83
84. 84. BIBLIOGRAPHY BOOKS: Retail Banking (By Indian Institute of Banking and
Finance), Macmillan Retail Management (By Bajaj Tulsi Shrivastva), OXFORD, University
Press INTERNET: www.allahabadbank.in www.rbi.org.in w