INTRODUCTION TO THE INDUSTRY

A remarkable shift in the Indian economy from the manufacturing sector to a budding service sector
(Banking) can be witnessed in recent years. The banking scenario in India is at the crossroads and is
continuously evolving, but the progress has been remarkable over the past decade. With the retail
banking sector expected to grow at a rate of 30%, players are focusing more and more on the retail and
are walking up to the potential of this sector of banking. In future the banking industry in India is likely
to reach a value of $300 billion by 2010.
TYPES OF BANKING
Commercial bank has two meanings:
o

Commercial bank is the term used for a normal bank to distinguish it from an investment
bank. (After the great depression, the U.S. Congress required that banks only engage in
banking activities, whereas investment banks were limited to capital markets activities.
This separation is no longer mandatory.)

Commercial bank can also refer to a bank or a division of a bank that mostly deals with
deposits and loans from corporations or large businesses, as opposed to normal individual
members of the public (retail banking). It is the most successful department of banking.

Community development bank are regulated banks that provide financial services and
credit to underserved markets or populations.

Private Banks manage the assets of high net worth individuals.

Savings banks accept savings deposits.

FINANCIAL SERVICES PROVIDED BY BANKS

Financial services refer to services provided by the finance industry. The finance industry
encompasses a broad range of organizations that deal with the management of money.
A bank is a financial intermediary that accepts deposits and channels those deposits into lending
activities, either directly or through capital markets. A bank connects customers with capital deficits to
customers with capital surpluses. A "commercial bank" is what is commonly referred to as simply a
"bank". The term "commercial" is used to distinguish it from an "investment bank," a type of financial
services entity which, instead of lending money directly to a business, helps businesses raise money
from other firms in the form of bonds (debt) or stock (equity).
BANKING SERVICES
The primary operations of banks include:

Keeping money safe while also allowing withdrawals when needed

Provide personal loans, commercial loans, and mortgage loans (typically loans to
purchase a home, property or business)

Issuance of credit cards and processing of credit card transactions and billing

Allow financial transactions at branches or by using Automatic Teller

Machines

(ATMs)

Provide wire transfers of funds and Electronic fund transfers between banks

Facilitation of standing orders and direct debits, so payments for bills can be made
automatically

Provide overdraft agreements for the temporary advancement of the Bank's own
money to meet monthly spending commitments of a customer in their current
account.

Provide Charge card advances of the Bank's own money for customers wishing to
settle credit advances monthly.

Provide a check guaranteed by the Bank itself and prepaid by the customer, such as a
cashier's check or certified check.
RETAIL BANKING
DEFINITION

"Retail banking is typical mass-market banking where individual customers use local branches of larger
commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans,
debit cards, credit cards, and so".
INTRODUCTION
Retail banking refers to banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other banks. The Retail Banking environment today is changing
fast. The changing customer demographics demands to create a differentiated application based on
scalable technology, improved service and banking convenience. Higher penetration of technology and
increase in global literacy levels has set up the expectations of the customer higher than never before.
Increasing use of modern technology has further enhanced reach and accessibility.
Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks
with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current /
savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and
educational) on the assets side, are the more important of the products offered by banks. Related
ancillary services include credit cards, or depository services.

RETAIL BANKING ESSENCE AND LATITUDE

Retail banking is that part of banks operations providing services at its branches for small
account holders. In short, retail banking is the banking services for individual customers.
The term Retail Banking encompasses various financial products viz., different types of deposit
accounts, housing, consumer, auto and other types of loan accounts, demote facilities, insurance, mutual
funds, Credit and Debit Cards, ATM and other technology-based services, stock-broking, payment of
utility bills, reservation of railway tickets, etc., catering to diverse customer groups, offering a host of
financial services, mostly to individuals. It takes care of the diverse banking needs of an individual.
Retail banking can be outlined as, the dealing of commercial banks with individual customers,
both on liabilities and assets sides of the balance sheet with fixed, current / savings accounts on the
liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side.
Retail Banking services are also termed as Personal Banking services.
INDIAS RETAIL-BANKING CUSTOMERS

Indian customers are hidden behind an impenetrable wall of loyalty to local banks.

They have a general aversion to credit.

The most profitable and fastest-growing segmentsthe young and the relatively affluentare
quite willing to give foreign entrants a chance.

By delivering quality service and a sophisticated portfolio of financial products the Multinational
banks may create an opening in this wall of loyalty and capture a share of India's fast-growing retailbanking market.

TYPES OF SERVICES:
CREDIT CARDS
A credit card is a small plastic card issued to users as a system of payment. It allows its holder
to buy goods and services based on the holder's promise to pay for these goods and services.
The issuer of the card creates a revolving account and grants a line of credit to the consumer (or
the user) from which the user can borrow money for payment to a merchant or as a cash advance to the
user.
BENEFITS TO CUSTOMERS
The main benefit to each customer is convenience. Compared to debit cards and cheques, a credit
card allows small short-term loans to be quickly made to a customer who need not calculate a balance
remaining before every transaction, provided the total charges do not exceed the maximum credit line
for the card.
Many credit cards offer rewards and benefits packages, such as offering enhanced product
warranties at no cost, free loss/damage coverage on new purchases, and points which may be redeemed
for cash, products, or airline tickets. Additionally, carrying a credit card may be a convenience to some
customers as it eliminates the need to carry any cash for most purposes.
DEBIT CARDS

A debit card (also known as a bank card or check card) is a plastic card that provides an
alternative payment method to cash when making purchases. Functionally, it can be called an electronic
check, as the funds are withdrawn directly from either the bank account or from the remaining balance
on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no
physical card.Debit cards may also allow for instant withdrawal of cash, acting as the ATM card for
withdrawing cash and as a check guarantee card. Merchants may also offer cash back facilities to
customers, where a customer can withdraw cash along with their purchase. The widespread use of debit
and check cards have revealed numerous advantages and disadvantages to the consumer and retailer
alike.
HOUSING LOANS
Buying a home is dream for many people. Owing to the rising price of properties, it has almost
become impossible for an average earning person to buy a home on a lump sum payment. Therefore the
concept of home loan has come in trend. There are plethora of housing finance companies and equal
number of banks that offer home loans these days. The task of selecting one company and one offer for
home loan amidst the thousands available options have become a very complex task owing to the
burgeoning housing finance market in the country. Apart from this, there are intricate business jargons
and technicalities that make this task more difficult. Explore here the basics of home loan technicalities,
so that when you apply for the home loan next time, you can understand the basics and help yourself
remain away from the duping elements in the market.
EDUCATIONAL LOANS
The boom in the banking sector has led to release of large amount of funds for education loans.
Now, education loans are easily available from various banks in India and this change is encouraging
more and more students to take up higher education despite their financial shortcomings.
Before approving the loan, banks take into consideration the feasibility of the borrower after a personal
discussion with the students. Other factors that the bank takes into consideration include your annual
income, family assets, how far the institute is reputed, the type of course you want to enroll into and
much more.

BENEFITS OF TAKING EDUCATION LOANS

The question, which sometimes puzzles the mind of both aspiring students and parents, is why one
should adopt for an education loan.
Financial support for professional courses such as MBA, BTech and MBBS
Available for higher education in India and abroad
Easy repayment only after job placement
Affordable Interest Rates
Lesser burden on parents Loan cover up to as much as 20 lakhs available by various banks
ATM FACILITY
One of the newest phenomenons is the upsurge of ATM counters in India, especially in the
metropolitan cities and towns. Most of the ATM counters in India are placed not only right next to the
respective banks, but also in almost every market place, residential colonies, streets and shopping malls,
among others.
Some of these include depositing cash and checks, view account balance, request for new check
books and additional statements, transfer funds to any other account linked to the debit card, post a
cheque status inquiry or stop payment, pay bills and make online payments and send queries related to
Term deposits and Loan Accounts. This multi-functional, round the clock access to the banking services
has made the ATM counters in India one of the most convenient features of banks in India.
While most of the leading banks in India have ATM counters in India, there has been another
growing trend in the country. With the advent of E banking, the facilities offered at ATM counters are
being availed even by people from the nearby villages, including farmers and small businessmen.
Another facility offered by some of the banks in India is offering Debit Cards, which can be, used in
several ATM counters in India, irrespective of the bank. This has made it even more convenient for the
international traveler, who is in dire need of cash in a foreign country.

ONLINE BANKING
Online banking (or Internet banking) allows customers to conduct financial transactions on a
secure website operated by their retail or virtual bank, credit union or building society.
FEATURES
Online banking solutions have many features and capabilities in common, but traditionally also
have some that are application specific.
The common features fall broadly into several categories
Transactional (e.g., performing a financial transaction such as an account to account transfer,
paying a bill, wire transfer, apply for a loan, new account, etc.)

Payments to third parties, including bill payments and telegraphic/wire transfers

Funds transfers between a customer's own transactional account and savings accounts

Investment purchase or sale

Loan applications and transactions, such as repayments of enrollments

Non-transactional (e.g., online statements, cheque links, cobrowsing, chat)

Viewing recent transactions

Downloading bank statements, for example in PDF format

Viewing images of paid cheques

Financial Institution Administration

Management of multiple users having varying levels of authority
Transaction approval process

MOBILE BANKING
"The account that travels with you". This is needed in today's fast business environment with
unending deadlines for fulfillment and meetings to attend. With mobile banking facilities, one can bank
from anywhere, at anytime and in any condition or anyhow. Mobile Banking is the hottest area of
development in the banking sector and is expected to replace the credit/debit card system in future. In
past two years, mobile banking users have increased three times if we compare the use of either debit
card or credit card. Move over 85-90% mobile users do not own credit cards.
Mobile banking uses the same infrastructure like the ATM solution. But it is extremely easy and
inexpensive to implement. It reduces the cost of operation for bankers in comparison to the use of
ATMs.

NEED OF THE STUDY

Money deposited in a bank remains safe. Precious articles too can be kept in the safe custody of
banks in lockers.
Bankers should provide credit facilities to their customers and customers with bank accounts also
enjoy better credit in the business world.
Banks encourage the habit of savings among the people. They mobilize savings and it helps to
increase the rate of savings.
Farmers in rural areas can also avail bank credit for financing their activities.

 Banks need to differentiate themselves by adding value-added services, offerings and building
long-term relationships with their customers through more customized products, personalized
services and increased accessibility.
Banks need to retain existing customer.
Bankers invested in Internet banking, believe that Internet is a lowest- cost delivery channel and
a way to increase sales.

LIMITATIONS OF THE STUDY

The main limitation is the duration of the project work is short.
The customers attitudes and awareness level of retail banks have been carried out by taking into
account the present conditions.
The opinion of customers may be biased.
The number of respondents included in the survey is limited to 108 only

RESEARCH METHODOLOGY

Research methodology is a scientific and systematic research for pertinent information on a

specific topic. It includes testing, verification, classification, organization and orientation, which include
prediction and application.
According to Clifford Woody Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions, Collecting, organizing and evaluating data, making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
The following are the various components that constitute the research methodology.
Type of research
Nature of data
Sample size

 Sampling design
Tools used
1. Type of research
The type of research used in the study is descriptive research includes surveys and facts, finding,
enquiries of different kinds. The major purpose of descriptive research is description of the state of
affairs, as it exists at present.
2. Nature of data
The researcher would have to decide which sort of data would be used for the study. Both primary and
secondary data are used for the study.

Primary data:
The primary data has been collected by means of questionnaire
Secondary data:
Secondary data has been collected from books, websites.

3. Sample size
A sample size of 108 is taken for the study.

4. Sampling design
A sample of 108 respondents was selected from banking customers in Coimbatore using conveniencesampling techniques.

5. Tools used
The following scientific tools are used to analyses the data

Simple Percentage Method

Ranking method

REVIEW OF LITERATURE

RBI appointed a working a group in (1979) with K.B. Chore committee as a chairman to review to
make a study on cash credit system and suggest improvements. The major recommendations of the
chore working groups were, banks should fix separate credit limits for normal periods and peak levels.
Borrowers should indicate before the commencement of each quarter. In order to encourage the bill
system of financing, banks should extend at least 50 percent of the cash credit limit against raw
material by way of drawee bills.
The study was done by Libf (1998) on the topic: Retail banking, 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 segments 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, credit cards and remittance products like (RTGS) Real Time Gross Settlement
and (NEFT) National Electronic Fund Transfer have made their presence felt in the retail space, the
study covered the different dimensions of retail banking.
M.S. K.M Rahman and Rezaul .A in (1999) considered that E-Banking on investment, reliance in ebanking and to offer their services makes it essential to understand how various aspects of consumer
behavior affect the innovation and responds to service quality.
Innovation and respond to service quality within this context the paper has undergone critical literature
reviews of pervious researchers with an objective to examine the impact of e-banking on consumers
behavior to e- service quality. It increased adoption of Internet as a delivery channel contributing a
gradual reduction in overhead expenses. Banks have successfully achieved customers satisfaction, by
providing high level of quality service through online delivery channel, besides, minimizing operating
cost and revenue maximization.
This study was done by Lee and Hogarth in 1999, this research analyzed the credit card users, they
found that based on the main use of credit cards and the benefits sought, and credit card user can be
segmented into two groups: convenience users and revolvers. Convenience users tend to employ credit
cards as an easy mode f payment; typically pay their balance in full, upon receiving the statement,
Revolvers on the other hand used the card principally as a mode of financing and choose to pay interest
charges on the unpaid balance.
This was an attempt made by Daniel and Satnye (1999), on the customer and banker attitudes towards
Internet banking. Internet banking was the newest delivery channel for retail banking services. Online
banking referred to several types of services through which bank-customers can request information and
carry out most retail banking services such as balance reporting, inter-account transfer, bill payment, etc,
via a telecommunication network without leaving their homes or organizations. There were two models

that most adopted in order to incorporate in their strategy. First model referred to the internet only
model. In this model there was no actual branch and no paper based transactions. This was a relatively
new model and it was subject to reduced paper work and reduced delay in processing. Second model
was adopted by most of the banks in which the traditional banking system was used along with Internet
banking giving the customers the choice to use any or both systems. The model was called as clicks and
mortar systems. The model found it more convenient to pursue customers to use Internet banking as
compared to internet only banks.
The research was done by Peter and Olson (1999), the researchers proposed that according to the
consumer behavior literature, consumer usage behavior and the benefits sought from a product or a
service are one of the best predictors to explain consumer purchase behavior.
Ziqi liao and Michael Tow Cheung, school of business, Hong Kong Baptist university analyzed this
paper (2002) this paper examined the internet based e-banking and consumer attitudes. It should the
consumer attitudes toward the usefulness of and willingness to use Internet e-retail banking. This survey
was undertaken in Singapore, because its geography and well-developed infrastructure implied similar
and small physical and tele-communication costs, thereby highlighting the differences between
traditional and internet-based retail banking upon the latters introduction. The data showed that
expectations of accuracy, security, and network speeded; user-friendliness, user involvement and
convenience were the most important quality attributes underlying perceived usefulness. Their result
drawn attention to demand-side changes in explaining the recent slowdown in Internet e- retail banking,
and also for the usefulness of development planning and marketing.
This study was done by Barry Howcroft and Robert Hamilton (2002). On the paper titled consumer
attitudes and the usage and adoption of home-based banking in the united kingdom. This paper
seeked to develop an understanding of consumer attitudes towards bank and delivery channels.
Accordingly, a questionnaire was designed to obtain information about which delivery channels,
consumer had used when acquiring financial services. The information was then contrasted with data on
how these consumers would acquire the same services if they had to purchase them again at some time
in the future. The questionnaire also obtained information about the factors which consumers believed to
be important in encouraging and discouraging the adoption of home-based banking. In concluding, the

paper discussed and assessed the strategic implications of the studys findings for financial service
providers.
This was an attempt made by M.S. E. Dave port (2002), on the paper titled consumer attitudes to
information technology in banking. The study report the results of a survey into consumer attitudes
to the use of information technology in retail banking conducted by the bank of Scotland results
suggested that while technology and other factors have fundamentals altered financial services.
Consumer understood of the ways in which services can be offered has not kept place with to rate of
technological change. Traditional, patterns of payment would continued, unless consumers can be
convinced that new systems offered substantial advantages that new systems offered substantial
advantages over more familiar forms of payments.
This research was done by M.S. Mark Durkin (2003), on the topic retail bank customer
preferences: personal and remote interactions, the research paper use a questionnaire and a
theoretical model of bank-customer interaction preferences as the basis for examined the perceptions of
retail bank customers regarding the use of remote delivery channels and the extent to which they value
traditional branch-based face-to-face interactions. The empirical evidence suggests that despite the
increase in remote banking, retail bank customers place, significantly greater emphasis on face- to face
contact. The implications of the findings are that if banks want to encourage widespread customer
adoption of remote banking, they must better understand customer attitudes towards alternative delivery
channels and use this information to educate their customers on the tangible service benefits which
eliminate from remote delivery.
This study was done by Bailey .A (2004) on the titled perception of financial distress and customers
attitude toward banking this study examined the influence of perceived financial distress and
customers attitude towards banking n Nigeria. Two hundred and one bank customers made up of 144
males and 57 females drawn from 27 banks participated in the study.
The study concluded that perceived financial distress had significant negative influence on attitude
toward banking. The banks regulatory authorities and management should give attention to the publics
perception of the banking industry in the interest of the economy, as the economic health of a nation on
the efficiency of financial institutions.

The study was done by M.S. Edensor Kayank and Talca D.harcar (2005) on the topic consumer
attitudes towards online banking. A new strategic marketing medium for commercial banks, due to
advances and developments in electronic banking, the physical location of a bank has become less
important, were transactions can be completed in cyberspace. Banks had increasingly adopted internetbased systems to transact banking operations with other businesses, private consumers, and government
departments/agencies. The banking industry enhanced services on the internet include bill payment,
electronic checking, tracing of expenditures and credit cards, monitoring transaction history, transferring
monitory between bank accounts, investment tracking, analyzing securities, etc., in this paper, consumer
attitudes towards online banking were examined. The empirical study finding indicates that online bank
marketing would gain importance. And its use would accelerate at a faster rate.
The research was done by Sylvie Laforet and Xiaoyan li, (2005) on the topic consumer attitudes
towards online and mobile banking in china. The aim of the study was to investigate the market
status for online/mobile banking in china. The demographic, attitudinal and behavioral characteristics of
online and mobile bank users were examined. Respondents from six major Chinese cities participated in
the consumer survey. The result showed Chinese online and mobile bank users were predominantly
males, not necessarily young and highly educated, in contrast with the electronic bank users in the west.
The issue of security was found to be the most important factor that motivated Chinese consumer
adoption of online bank. Main barriers to online bank were the perception of risks, computer and
technological skills and Chinese traditional cash-carry bank culture. The barriers to mobile banking were
lack of awareness.
This was am attempt made by M.S.V.Ravi and N.Vidya (2010) considered that, Internet banking was a
new delivery channel for banks in India. The Internet channel was both an informative and a
transactional medium. However, Internet banking had not been popularly adopted in India as expected.
The objective of this paper was to find the profiles of Internet banking users as well as non-users using
intelligent techniques. This study investigated and identified potential customer base on profiles of
existing users. The profile used to target and attract potential customers to adopt Internet banking.

ANALYSIS AND INTERPRETATION

ANALYSIS
Analysis of data means studying the tabulated material in order to determine inherent facts of meanings.
It involves breaking down existing complex factor into simpler parts and putting the parts together in
new arrangement for the purpose of interpretation. A plan of analysis can and should be prepare in
advance before the actual collection of material.
Prot. Wilkinson and Bhandarker, Analysis of data involves a number of closely related operations that
are performed with the purpose of summarizing the collection data and organizing these in such a

manner that they will yield answer to the research questions or suggest hypothesis had initiated the
study. Some scholars are of the opinion that processing of data is done under analysis of data.
INTERPRETATION
Scientific interpretation seeks for relationship between the data of a study and between the study
finding and other scientific knowledge. The interpretation of research data cannot be considered in the
abstract in view of the diversity of the research method used in social sciences and the corresponding
diversity of the data they seek, the interpretation of such data is best considered within the context of
each of the methods. The analysis and interpretation of historical data for example, is best viewed in the
light of the historical method its objectives and its objectives and its limitation. It is important to note in
all circumstances that data do not interpret themselves and that it is the investigator who must pass
judgment of their meaning from the standpoint of the problem under investigation.

TABLE: 1
TABLE SHOWING THE AGE GROUP OF THE RESPONDENTS
S.NO

PARTICULARS

NO.OF

PERCENTAGE

RESPONDENTS
1

Below 20 years

20 35 years

77

71

35 - 50 years

23

21

Above 50 years

2
3
4

TOTAL

108

100

INTERPRETATION:
The above table shows the age group of the respondents. From the table it is interpreted that,
71% of the respondents are in age group of 20 35 years
21% of the respondents are in age group of 35-50 years
4% of the respondents are below the age group of 20 years
4% of the respondents are above the age group of 50 years
INFERENCE:
It is inferred that most of the respondents (71%) are in age group of 20 35 years.

CHART NO: 1
CHART SHOWING THE AGE GROUP OF THE RESPONDENTS

TABLE: 2
TABLE SHOWING THE GENDER OF THE RESPONDENTS

S.NO

1
2

PARTICULAR

NO. OF

PERCENTAG

RESPONDENT

Male
Female
TOTAL

S
76
32
108

70
30
100

INTERPERTAITON:
The above table shows the gender of the respondents. From the above table it is interpreted that,
70% of the respondents are male
30% of the respondents are female
INFERENCE:
It is inferred that most of the respondents (70%) are male.

CHART NO: 2
CHART SHOWING THE GENDER OF THE RESPONDENTS

TABLE: 3
TABLE SHOWING THE MARITAL STATUS OF THE RESPONDENTS
S.NO

PARTICULARS

NO.OF
RESPONDENT

PERCENTAGE

S
1
2

Married
Unmarried
TOTAL

76
32
108

70
30
100

INTERPRETATION:
The above table shows the marital status of the respondents. From the above table it is
interpreted that,
70 % of the respondents are married
30% of the respondents are unmarried
INFERENCE:
It is inferred that most of the respondents (70%) are married.

CHART NO: 3
CHART SHOWING THE MARITAL STATUSOF THE RESPONDENTS

TABLE: 4
TABLE SHOWING THE EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
S.NO

PARTICULARS

NO.OF
RESPONDENTS

PERCENTAGE

1
2
3
4
5

Primary level
Secondary level
Under graduate
Post graduate
Illiterate
TOTAL

7
35
46
15
5
108

6
32
43
14
5
100

INTERPRETATION:
The above table shows the educational qualifications of the respondents. From the table it is
interpreted that,
43% of the respondents are under graduates
32% of the respondents have secondary level education
14% of the respondents are post graduates
6% of the respondents have primary level education
5% of the respondents are illiterates
INFERENCE:
It is inferred that most of the respondents (43%) are under graduates

CHART NO: 4
CHART SHOWING THE EDUCATIONAL QUALIFICATION
OF THE RESPONDENTS

TABLE: 5
TABLE SHOWING THE OCCUPATIONAL STATUS OF THE RESPONDNETS
S.NO

PARTICULARS

NO. OF
RESPONDENTS

PERCENTAGE

1
2
3
4
5

Labour
Agriculturists
Employee
Student
Business
TOTAL

24
9
53
12
10
108

22
8
50
11
9
100

INTERPRETATION:
The above table shows the occupational status of the respondents. From the table it is interpreted that,
50% of the respondents are employees
22% of the respondents are laborers
11% of the respondents are students
9% of the respondents are business peoples
8% of the respondents are agriculturists
INFERENCE:
It is inferred that most of the respondents (48%) are employees.

CHART NO: 5
CHART SHOWING THE OCCUPATION STATUS OF THE RESPONDENTS

TABLE: 6
TABLE SHOWING THE INCOME LEVEL OF THE RESPONDENTS
S.NO
1

PARTICULARS

NO. OF

PERCENTAGE

Below Rs.5000

RESPONDENTS
29

30

2
3
4
5

Rs. 5000 to Rs. 10000

Rs. 10000 to Rs. 20000
Rs.20000 to Rs. 50000
Above Rs. 50000
TOTAL

46
16
3
2
96

48
17
3
2
100

INTERPRETATION:
The above table shows the income level of the respondents. From the above table it is interpreted that,
47% of the respondents have an income level between Rs. 5000 to Rs. 10000
30 % of the respondents have an income level below Rs. 5000
18 % of the respondents have an income level between Rs. 10000 to Rs. 20000
3 % of the respondents have an income level between Rs. 20000 to Rs. 50000
2% of the respondents have an income level above Rs. 50000
INFERENCE:
It is inferred that most of the respondents (47%) have an income level Between Rs. 5000 to Rs.
10000

CHART NO: 6
CHART SHOWING THE INCOME LEVEL OF THE RESPONDENTS

TABLE: 7
TABLE SHOWING THE BANK ACCOUNT OF THE RESPONDENTS

S.NO

PARTICULARS

1
2
3
4
5

State bank of India

ICICI bank
Union bank
HDFC bank
Indian Bank
TOTAL

NO. OF
RESPONDENTS
66
19
9
12
2
108

PERCENTAGE
61
18
8
11
2
100

INTERPRETATION:
The above table shows the bank account of the respondents. From the table it is interpreted that,
61 % of the respondents have State Bank of India account
18% of the respondents have ICICI Bank account
11 % of the respondents have HDFC Bank account
8% of the respondents have Union Bank account
2% of the respondents have account in Indian Bank
INFERENCE:
It is inferred that most of the respondents (61%) have an account in State Bank of India.

CHART NO: 7

CHART SHOWING THE BANK ACCOUNT OF THE RESPONDENTS

TABLE: 8
TABLE SHOWING THE AWARENESS OF RETAIL SERVICES PROVIDED BY BANK
AMONG THE RESPONDENTS
S.NO

PARTICULARS

NO. OF

PERCENTAGE

1
2

Yes
No
TOTAL

RESPONDENTS
108
0
108

100
0
100

INTERPRETATION:
The above table shows the awareness of retail services provided by banks. From the table it is
interpreted that,
100 % of the respondents are aware of retail banking service
There are no respondents who are unaware of the retail banking services
INFERENCE:
It is inferred that most of the respondents (100%) are aware of retail banking services.

CHART NO: 8
CHART SHOWING THE AWARENESS OF RETAIL BANKING SERVICES

TABLE: 9
TABLE SHOWING THE SERVICE FACILITES IN RETAIL BANKING
PARTICULARS

PERCENTAGE

S.NO

NO. OF
RESPONDENT
S

ATM

86

80

Internet banking

24

22

Mobile banking

40

37

Loan facilities

80

74

Electronic fund transfer

10

14

Credit cards

70

65

INTERPRETATION:
The above table shows the service facilities in retail banking. From the table it is interpreted that,
80% of the respondents avail ATM facility
74% of the respondents avail loan facilities offered by bank
65% of the respondents use credit card services
37% of the respondents avail Mobile-banking facility

 22 of the respondents avail Internet banking facility

14% of the respondent have electronic funds transfer services
INFERENCE:
It is inferred that most of the respondents (80%) avail ATM services and (74%) of them acquire and
utilize loan services.

CHART NO: 9
CHART SHOWING THE SERVICE FACILITIES IN RETAIL BANKING

TABLE: 10
TABLE SHOWING THE PURPOSE OF VISIT TO BANKS

S.NO
1
2
3
4
5

PARTICULARS

Deposits
Acquire loan
Frequent withdrawal
Cheque clearance
All the above
TOTAL
INTERPRETATION:

NO.OF

PERCENTAGE

RESPONDENTS
12
18
3
8
67
108

11
17
3
7
62
100

The above table shows the purpose of visit to banks. From the above table it is interpreted that,
62% of the respondents visit banks for the purpose of all facilities such as deposits, to acquire
loan, for frequent withdrawals and cheque clearance services
17% of the respondents visit banks to acquire loans
11% of the respondents visit banks for deposits
7% of the respondents visit banks for cheque clearance services
3% of the respondents visit banks for frequent withdrawals
INFERENCE:
It is inferred that most of the respondents (62%) visit banks for the purpose of all facilities such
as deposits, to acquire loan, for frequent withdrawals and cheque clearance services.

CHART NO: 10

CHART SHOWING THE PURPOSE OF VISIT TO BANKS

TABLE: 11
TABLE SHOWING THE ACCESSIBILITY CHANNELS FOR RESPONDENTS QUERIES

S.NO

PARTICULARS

NO.OF

PERCENTAGE

1
2
3

Direct approach
Customer care
Online services
TOTAL

RESPONDENTS
87
16
5
108

81
15
4
100

INTERPRETATION:
The above table shows the accessibility channels for respondents queries. From the table it is
interpreted that,
81% of the respondents directly approach for queries
15% of the respondents use customer care service for queries
4% of the respondents use online services for queries
INFERENCE:
It is inferred that most of the respondents (81%) directly approach their banks for queries.

CHART NO: 11
CHART SHOWING THE ACCESSIBILITY CHANNELS FOR RESPONDENTS QUERIES

TABLE: 12
TABLE SHOWING THE SATISFACTION LEVEL ON BANKS TERMS AND CONDITIONS

S.NO

PARTICULARS

NO OF

PERCENTAGE

RESPONDENT
1
2
3
4
5

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
TOTAL

S
26
63
11
8
0
108

24
59
10
7
6
100

INTERPRETATION:
The above table shows the satisfaction level on banks terms and conditions.

From the table it is

interpreted that,
59% of the respondents are satisfied with their bank terms and conditions
24% of the respondents are highly satisfied with their bank terms and conditions
10% of the respondents are neutral
7% of the respondents are dissatisfied with their banks terms and conditions
INFERENCE:
It is inferred that most of the respondents (59%) are satisfied with their bank terms and conditions.

CHART NO: 12
CHART SHOWING THE SATISFACTION LEVEL ON BANKS TERMS AND CONDITIONS

TABLE: 13
TABLE SHOWING THE NEEDS OF BANK S FRIENDLY APPROACH ON QUERIES

S.NO

PARTICULARS

NO OF

PERCENTAGE

1
2

Yes

RESPONDENTS
108
0

100
0

108

100

No
TOTAL
INTERPRETATION:
The above table shows whether the bank requires a friendly approach on customer queries. From the
table it is interpreted that,
100% of the respondents felt that the bank should follow a friendly approach to answer their
queries
There are no respondents who said NO against this
INFERENCE:
It is inferred that all respondents (100%) suggested that bank should follow a friendly approach in
answering customer queries.

CHART NO: 13
CHART SHOWING THE NEEDS OF BANKS FRIENDLY APPROACH ON QUERIES

TABLE: 14

TABLE SHOWING THE EFFICIENCY OF BANKS TO RESPOND TO CUSTOMER

QUERIES

S.N

PARTICULAR

NO.OF
RESPONDENT

PERCENTAG
E

Yes

S
93

No

15

14

TOTAL

108

100

86

INTERPRETATION:
The above table shows the efficiency of bank to respond to customer queries. From the table it is
interpreted that,
86% of the respondents shows that banks do respond efficiently to customer queries
14% of the respondents shows that banks do not respond efficiently to customer queries
INFERENCE:
It is inferred that most of the respondents (86%) shows that banks respond efficiently to
customer queries.

CHART NO: 14

CHART SHOWING THE EFFICIENCY OF BANKS TO RESPOND TO CUSTOMER QUERIES

TABLE: 15

TABLE SHOWING THE SATISFACTION LEVEL REGARDING THE RESPONSE TO

QUERIES

PARTICULARS

PERCENTAGE
NO. OF

S.NO

RESPONDENTS

Highly satisfied

27

25

Satisfied

51

47

Neutral

19

18

Dissatisfied

Highly dissatisfied

TOTAL

108

100

INTERPERTAITON:
The above table shows the satisfaction level regarding the response to queries. From the table it is
interpreted that,
47% of the respondents are satisfied with banks response to queries
25% of the respondents are highly satisfied with banks response to queries
18% of the respondents are neutral
6% of the respondents are dissatisfied with banks response to queries
4% of the respondents are highly dissatisfied with banks response to queries
INFERENCE:
It is inferred that most of the respondents (47%) are satisfied with banks response to queries.

CHART NO: 15
CHART SHOWING THE SATISFACTION LEVEL REGARDING THE RESPONSE TO
QUERIES

TABLE: 16
TABLE SHOWING THE MEDIAS APPROACH TOWARDS A PARTICULAR BANKS

NO. OF

S.NO

PARTICULARS

Advertising

RESPONDENTS
14

PERCENTAGE

Friends and relatives

34

31

Easy availability of loans

37

34

Trust

23

21

TOTAL

108

100

13

INTERPRETATION:
The above table shows the Medias approach towards a particular bank. From the table it is interpreted
that,
34% of the respondents show that easy availability of loans have influenced them to approach a
particular bank
31% of the respondents show that their friends and relatives influenced them to approach a
particular bank

 21% of the respondents show that banks influenced them to approach a particular bank
13% of the respondents say that advertising has influenced them to approach a particular bank

INFERENCE:
It is inferred that most of the respondents (34%) say that easy availability of loans have
influenced them to approach a particular bank.

CHART NO: 16
CHART SHOWING THE MEDIAS APPROACH TOWARDS A PARTICULAR BANKS

TABLE: 17
TABLE SHOWING THE ATTRIBUTES TO CHOOSE A BANK

PARTICULARS

PERCENTAGE

S.NO

NO. OF
RESPONDENT
S

To mobilize savings

24

22

To gain interest on deposits

16

15

Loan processing system

52

48

Efficient customer service

Tax saver scheme offered

13

12

TOTAL

108

100

INTERPRETATION:
The above table shows the banks attributes to choose a particular bank. From the table it is interpreted
that,
48% of the respondents considered banks for easy loan processing system adopted by bank
22% of the respondents considered to mobilize savings
15% of the respondents choose to gain interest on deposits
12% of the respondents considered to claim tax saver scheme offered by the banks
3% of the respondents choose due to efficient customer service provided by banks
INFERENCE:

It is inferred that most of the respondents (48%) choose banks for easy loan processing system,
adopted by the banks.

CHART NO: 17
CHART SHOWING THE ATTRIBUTES TO CHOOSE A BANK

TABLE: 18
TABLE SHOWING THE LEVEL OF APPROACH ON INTEREST CHARGES TOWARDS
LOANS, CREDIT CARDS AND DEBIT CARDS
S.NO

PARTICULARS

NO. OF

PERCENTAGE

Excellent

RESPONDENTS
28

Good

73

68

Average

Poor

TOTAL

108

100

26

INTERPRETATION:
The above table shows the level of approach on interest charges towards loans, credit cards and debit
cards. From the table it is interpreted that,
68% of the respondents feel that interest rate provisions are good towards loans, credit cards and
debit cards
26% of the respondents feel that the existing interest rates provision are excellent towards loans,
credit cards and debit cards
6% of the respondents feel that interest rates provisions are average on loans, credit cards and
debit cards

INFERENCE:
It is inferred that most of the respondents (68%) felt that the interest rates are nominal on loans,
credit cards and debit cards issued by the bank.

CHART NO: 18
CHART SHOWING THE LEVEL OF APPROACH ON INTEREST CHARGES TOWARDS
LOANS, CREDIT CARDS AND DEBIT CARDS

TABLE: 19

TABLE SHOWING THE USAGE OF INTERNET BANKING

S.N

PARTICULAR

NO.OF
RESPONDENT

PERCENTAG
E

Yes

S
24

No

84

78

TOTAL

108

100

22

INTERPRETATION:
The above table shows the usage of Internet banking services. From the table it is interpreted that,
78% of the respondents are not using internet banking services
22% of the respondents are using internet banking services

INFERENCE:
It is inferred that most of the respondents (78%) are not using Internet banking services.

CHART NO: 19
CHART SHOWING THE USAGE OF INTERNET BANKING SERVICES

TABLE: 20
TABLE SHOWING THE PREFERENCE OF INTERNET BANKING FACILITIES AMONG
THE RESPONDENTS

S.NO

PARTICULARS

NO. OF

PERCENTAGE

Save time

RESPONDENTS
7

East access

38

Security

25

Increased efficiency

TOTAL

24

100

29

INTERPRETATION:
The above table shows the preference of Internet banking facilities among the respondents. From
the table it is interpreted that,
38% of the respondents prefer internet banking services due to easy accessibility
29% of the respondents prefer internet banking services as it saves time
25% of the respondents prefer internet banking services due to enough security
8% of the respondents prefer internet banking services due to it increased efficiency
INFERENCE:
It is inferred that most of the respondents (38%) prefer Internet banking services due to its easy
accessibility.

CHART NO: 20

CHART SHOWING THE PREFERENCE OF INTERNET BANKING FACILITIES AMONG

THE RESPONDENTS

TABLE: 21

TABLE SHOWING THE USAGE OF NOT AVAILING INTERNET BANKING SERVICES

S.NO

PARTICULARS

NO.OF
RESPONDENTS

PERCENTAGE

Lack of knowledge

26

30

Lack of time

10

Complex procedure

50

60

TOTAL

84

100

INTERPRETATION:
The above table shows the usage of those respondents who are not using internet banking services.
From the table it is interpreted that,
60% of the respondents are not using internet banking services because of its complex
procedure
22% of the respondents are not using internet banking services because of lack of knowledge
10% of the respondents are not using internet banking services because of lack of time
INFERENCE:
It is inferred that most of the respondents (60%) are not using Internet banking services because
of its complex procedure.

CHART NO: 21
CHART SHOWING THE USAGE OF NOT AVAILING INTERNET BANKING SERVICES

TABLE: 22
TABLE SHOWING THE CUSTOMER ATTENTION TOWARDS ONLINE BANKING
FACILITY

S.N

PARTICULAR

NO.OF
RESPONDENT

PERCENTAG
E

Yes

S
43

No

65

60

TOTAL

108

100

40

INTERPRETATION:
The above table shows the customer attention towards online banking facility. From the table it is
interpreted that,
60% of the respondents think that online banking would not increase customer attention
towards bank
40% of the respondents think that online banking would increase customer attention towards
bank
INFERENCE:
It is inferred that most of the respondents (60%) think that online banking would increase attention
towards bank.

CHART NO: 22
CHART SHOWING THE CUSTOMER ATTENTION TOWARDS ONLINE BANKING
FACILITY

S.
No.

NUMBER OF RESPONDENTS
(WEIGHTS)

Factors
10

1
2
3

6
7
8
9
10

Quick
response
Good
customer
relationship
Queries
solved
Time taken
for clear
transactions
on loans and
deposits
Various loan
facilities
Extra
facilities
provided by
banks
Credit
facilities
Electronic
fund transfer
Internet
banking
Mobile
banking

Total
Score

Average
Rank
Score

11 19 30 21 19

817

13.8

34 20 10 12 12 10

841

14.2

13 10 20 20 11 18

683

11.5

10 15 12 10 32

666

11.2

793

13.4

10 12 33 22 10

444

7.51

22 18 19 16 11

11 12 18 22 17 14

694

11.7

24 23 17 33

306

5.18

10

13 49 15 20

386

6.53

276

4.67

10 51 33

TABLE: 23
TABLE SHOWING THE OVERALL CUSTOMER SERVICE PROVIDED BY BANKS

INTERPRETATION:
The above table shows the overall customer services provided by banks. From the table it is
interpreted that,

Most of the respondents ranked good customer relationship and quick response as first
and second.
Third, fourth and fifth rank has been given to various loan facilities provided, credit
facilities issued and queries solved.

 Sixth, seventh and eight rank has been given to time taken to clear transactions on loans
and deposits, extra facilities provided by banks and on internet banking services.
Ninth and tenth rank has been given to mobile banking facility and electronic fund
transfer.

TABLE: 24
TABLE SHOWING THE ESSENTIAL FACTORS FOR CUSTOMER RETENTION
S.NO
1

PARTICULARS
Handle account efficiently
Rectify mistakes as early as
possible

NO. OF
RESPONDENTS

PERCENTAGE

34

31

11

10

Clarify details on internet rate and

charges

32

30

31

29

108

100

Friendly approach on
4

documentation / application
services
TOTAL

INTERPRETATION:
The above table shows the essential factors for customer retention. From the table it is interpreted that,
31% of the respondents said that bank should handle accounts efficiently
30% of the respondents said that bank should provided clear details on interest rates and charges
29% of the respondents said that bank should follow friendly approach during documentation or
application services
10% of the respondents said that bank should try to rectify mistakes as early as possible
INFERENCE:
It is inferred that most of the respondents (31% and 30%) said that bank should handle accounts
efficiently and also give clear details regarding interest rates charges.

CHART NO: 23
CHART SHOWING THE ESSENTIAL FACTORS FOR CUSTOMER RETENTION

TABLE: 25
TABLE SHOWING THE ACTIVITIES FOR BANKS TO BUILD TRUSTWORTHY
RELATIONSHIP

S.NO

PARTICULARS

NO.OF
RESPONDENTS

PERCENTAGE

1
2

Quick timely services

Provide easy access to
transaction
Being proactive
Reduced waiting time
Nominal charges on
various retail facilities
provided
Being confidential

42
21

39
19

11
55
20

10
32
19

3
4
5
6

INTERPRETATION:
The above table shows the activities for banks to build trustworthy relationship. From the above table it
is interpreted that,
39% of the respondents consider timely services adopted by banks to build trustworthy
relationship
32% of the respondents felt reduced waiting time by banks would build trustworthy
relationship
19% of the respondents considered that banks should provide easy access to transactions to
build trustworthy relationship
19% of the respondents felt that banks should allot nominal charges on various retail services
10% of the respondents considered that banks should be proactive
6% of the respondents considered that banks should be confidential
INFERENCE:
It is inferred that most of the respondents (39%and 32%) felt that timely services and reduced
waiting time by banks would build trustworthy relationship.

CHART NO: 24
CHART SHOWING THE ACTIVITIES FOR BANKS TO BUILD TRUSTWORTHY
RELATIONSHIP

TABLE: 26
TABLE SHOWING THE KINDS OF PROBLEMS FACED BY THE RESPONDENTS
S.NO

PARTICULARS

NO.OF
RESPONDENTS

PERCENTAGE

1
2
3
4
5
6
7
8

Lack of accessibility
Lack of services
High penalty rate
Queries handled inefficiency
Outstanding interest
Delay in processing transaction
No friendly approach
No such issues
TOTAL

10
11
2
5
20
40
12
8
108

9
10
2
4
19
38
11
7
100

INTERPRETATION:
The above table shows the kinds of problems faced by the respondents in banks. From the above table it
is interpreted that,
38% of the respondents faced problems in delayed transaction processing
19% of the respondents faced problems due to outstanding interest charges on loans and
credit cards
11% of the respondents faced problems due to lack of services
9% of the respondents faced problems due to less accessibility
7% of the respondents faced problems on product and services provided by banks
4% of the respondents faced problems on queries handled inefficiently
2% of the respondents faced problems due to high penalty rates imposed by banks
INFERENCE:
It is inferred that most of the respondents (38%) faced problems with regard to delayed
transaction processing.

CHART NO: 25
CHART SHOWING THE KINDS OF PROBLEMS FACED BY THE RESPONDENTS

TABLE: 27
TABLE SHOWING THE BIAS SHOWN BY BANKS

S.NO

PARTICULARS

NO.OF
RESPONDENTS

PERCENTAGE

Work in harmony

23

21

Regular contact with customers

85

32

Provide better services

50

47

TOTAL

108

100

INTERPRETATION:
The above table shows the bias shown by banks. From the table it is interpreted that,
47% of the respondents feel that banks must provide better service to minimize bias
32% of the respondents feel that bank must have regular contact with customer to minimize
bias
21% of the respondents feel that banks must work in harmony to minimize bias
INFERENCE:
It is inferred that most of the respondents (47%) feel that banks must provide better services to
minimize bias.

CHART NO: 26

CHART SHOWING THE BIAS SHOWN BY BANKS

TABLE: 28

TABLE SHOWING THE COMPLAINTS REGARDING RETAIL SERVICES

S.N

PARTICULAR

NO.OF
RESPONDENT

PERCENTAG
E

Yes

S
19

No

89

82

TOTAL

108

100

18

INTERPRETATION:
The above table shows the complaints regarding retail services of the respondents. From the table it is
interpreted that,
82% of the respondents have no complaints regarding retail services provided by banks
18% of the respondents have complaints regarding retail services provided by banks
INFERENCE:
It is inferred that most of the respondents (82%) have no complaints regarding retail services
provided by banks.

CHART NO: 27
CHART SHOWING THE COMPLAINTS REGARDING RETAIL SERV ICES

FINDINGS
The following are major findings of the studies, which are mainly based on the data obtained on
customer attitudes towards retail banking through scheduled questionnaire.
71% of the respondents are in age group of 20 35 years.
70% of the respondents are male.
70% of the respondents are married.
50% of the respondents are employees earning an income level between Rs. 5000 to Rs. 10,000
100% of the respondents are aware of retail banking services, provided by banks.
80% of the respondents use ATM services provided by banks.
62% of the respondents visit banks for the purpose of using services on deposits, to acquire
loans, for frequent withdrawals and cheque clearance services.
81% of the respondents directly approach their banks for queries.
100% of the respondents felt that the bank should follow a friendly approach to answer their
queries and 86% of them said banks responded efficiently to customer queries.
34% of the respondents show that easy availability of loans has influenced them to approach a
particular bank and 48% of them considered banks should adopt easy loan processing system.
78% of the respondents are not using Internet banking services and 60% of them find difficulty
due to its complex procedure.
38% of the respondents choose Internet banking services as it has easy access.
60% of the respondents think that online banking would not increase customers attention.
31% of the respondents said that bank should handle accounts efficiently and give precise details
regarding interest rates and charges.
39% of the respondents said in order to build trustworthy relationship; banks should provide
timely services and reduce its waiting time, as 38% of them faced problems in delayed
transaction processing.

 82% of the respondents have no complaints regarding retail service provided by banks.

SUGGESTIONS
Customers faced service problems when availing loans, during cheque clearance services where
necessary steps should be taken by the bank to avoid the customers difficulty in availing these
services.
Efficiency in loan processing, and clarity on outstanding interest charges and awareness on
Internet banking a service becomes the need of the hour in retail banking services.
Internet banking facilities are very useful to the customers, as knowledge on its workings should
be created among the public through external agents and through market approach in rural areas.
Banks can use the automatised transaction processing to reduce the waiting time and increase
quick money based transactions.
The failure of ATM machines wants to be rectified immediately and banks can increase security
for ATM services to avoid thefts.
Awareness can be created on these services by conducting melas frequently in and around the
city.

CONCLUSION
Retail banking has a great scope in India due to increase in consumerism and purchasing power of
customers. E-banking, Mobile banking, ATM, Credit cards and loans have become necessity and are no
more factors of differentiation is there in urban and semi urban cities.
The above study was carried out with the prime objective to find out major factors that banks can
plan to create more awareness and make their banking customers understand the benefits of the various
schemes offered by banks. Retail services helps to understand that overall customers are quite satisfied
with the services offered by banks. Processing time and interest rates are major influencing factor for
making purchase decision.
Therefore it can be concluded that the customer should not have sufficient knowledge to find out
available sources. So, bankers should take efforts to increase the customer awareness in developing their
retail banking services.

BIBLIOGRAPHY
BOOKS
Kothari C.R, Research Methodology, Vishwa Prakasan publications, Second Edition, 1997.
International Journal of Retail and Distribution Management, vol.31 Issue: 4,
Pp: 177- 189
Shanamugam.V,Introduction to Banking Management, Second Edition, Vikas publishing house
Pvt Ltd. New Delhi.
WEBSITES
www.scribd.com
www.answers.com/topic-retail banking
www.corpretail.com