INTRODUCTION:

CUSUOMER PERCEPTION applies the concept of sensory perception to

marketing and advertising. Just as sensory perception relates to how humans perceive and
process sensory stimuli through their five senses, consumer perception pertains to how
individuals form opinions about companies and the merchandise they offer through the
purchases they make. Merchants apply consumer perception theory to determine how their
customers perceive them. They also use consumer perception theory to develop marketing
and advertising strategies intended to retain current customers -- and attract new ones. The
perceptions consumers have of a business and its products or service have a dramatic effect
on buying behaviour. Thats why businesses spend so much money marketing themselves,
honing their customer service and doing whatever else they can to favourably influence the
perceptions of target consumers. With careful planning and execution, a business can
influence those perceptions and foster profitable consumer behaviours.
Different customers may perceive one and the same product or service in different
ways. A customers perception of an offering may even deviate from what the producer or
service provider or marketer had intended. This may cause serious problems in todays
attention economy. Everybody is exposed to more and more diverse information than ever
before. It is hard enough for an offering to get a potential customers attention at all. If the
customers perception of this offering is an unfavourable one, it probably will not get a
second chance to make a better impression.
In simpler terms, it is how a customer see's a particular brand with whatever he or she
has been able to understand by watching the products, its promotions, feedback etc. It is the
image of that particular brand in the mind of the customer.

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WHY CONSUMER PERCEPTION IS IMPORTANT?

In todays globalising economy competition is getting more and more fierce. That
means it becomes more difficult for products and services to differentiate themselves from
other offerings than ever before.
Not only is the number of competitive offerings rising due to globalisation of
production, sourcing, logistics and access to information. Many products and services face
new competition from substitutes and from completely new offerings or bundles from
industry outsiders. Since product differences are closed at an increasing speed and many
companies try to win the battle for customers by price reductions, products and services tend
to become commodities.
On the other hand, customer behaviour becomes more hybrid. On one hand, customers
are increasingly price sensitive searching for bargains at marketplaces like ebay or buying
their groceries at discount markets. On the other hand they enjoy branded and luxury goods.
One and the same person may plan a weekend trip with a no-frills airline and a stay at a fivestar-hotel. In the result, customers have a wider choice of often less distinguishable products
and they are much better informed. For many offerings the balance of power shifts towards
the customer. Customers are widely aware of their greater power, which raises their
expectations on how companies should care for them. Bringing it all together, it becomes
ever more difficult to differentiate a product or service by traditional categories like price,
quality, functionality etc.
In this situation the development of a strong relationship between customers and a
company could likely prove to be a significant opportunity for competitive advantage. This
relationship is no longer based on features like price and quality alone. Today it is more the
perceived experience a customer makes in his various interactions with a company (e.g. how
fast, easy, efficient and reliable the process is) that can make or break the relationship.
Problems during a single transaction can damage a so far favourable customer perception.
Customer perception is an important component of our relationship with our customers.
Customer satisfaction is a mental state which results from the customers comparison of
expectations prior to a purchase with performance perceptions after a purchase. A customer
may make such comparisons for each part of domain specific satisfaction or for the offer in
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total called global satisfaction. Moreover, this mental state, which we view as a cognitive
judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the lower
end by a low level of satisfaction where expectations exceed performance perceptions and at
the higher end by a high level of satisfaction where performance perceptions exceed
expectations.

Like other industries, banking and financial service companies have reached the
conclusion that the relationship with the customer should not (metaphorically and literally)
end at the bank door. Customer access after the transaction adds value to the transaction.
Definition of Banking
Banking is accepting for the purpose of lending and investment of deposits of money from
the Public, repayable on demand or otherwise and withdraw able by cheques, draft, order or
otherwise.

Features of Banking:
1. Dealing in Money:
The banks accept deposits from the public and advancing them as loans to the needy people.
The deposits may be of different types- Current, Fixed, Savings, etc. accounts. The deposits
are accepted on various terms and conditions.
2. Deposits must be withdrawable:
The deposits (other than fixed deposits) made by the public can be withdrawable by cheques, draft or
otherwise, i.e., the bank issue and pay cheque. The deposits are usually withdrawable on demand.
3. Dealing with Credit:
The banks are the institutions that can create Credit i.e., creation of additional money for
lending. Thus, Creation of Credit is the unique feature of banking.
4. Commercial in Nature:
Since all the banking functions are carried on with the aim of making profit, it is regarded as
a commercial institution.
5. Nature of Agent:
Besides the basic functions of accepting deposit and lending money as loans, banks possess
the character of an agent because of its various agency service.
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MEASURING CUSTOMER PERCEPTION IN THE

BANKING INDUSTRY
Banking operations are becoming increasingly customer dictated. The
demand for 'banking super malls' offering one-stop integrated financial services is well on the
rise. The ability of banks to offer clients access to several markets for different classes of
financial instruments has become a valuable competitive edge. Convergence in the industry to
cater to the changing demographic expectations is now more than evident. Bancassurance
and other forms of cross selling and strategic alliances will soon alter the business dynamics
of banks and fuel the process of consolidation for increased scope of business and revenue.
The thrust on farm sector, health sector and services offers several investment linkages.
In short, the domestic economy is an increasing pie which offers extensive
economies of scale that only large banks will be in a position to tap. With the phenomenal
increase in the country's population and the increased demand for banking services; speed,
service quality and customer satisfaction are going to be key differentiators for each bank's
future success. Thus it is imperative for banks to get useful feedback on their actual response
time and customer service quality aspects of retail banking, which in turn will help them take
positive steps to maintain a competitive edge.
The working of the customer's mind is a mystery which is difficult to solve and
understanding the nuances of what perception the customer has to attain satisfaction is, a
challenging task. This exercise in the context of the banking industry will give us an insight
into the parameters of customer satisfaction and their measurement. This vital information
will help us to build satisfaction amongst the customers and customer loyalty in the long run
which is an integral part of any business. The customer's requirements must be translated and
quantified into measurable targets. This provides an easy way to monitor improvements, and
deciding upon the attributes that need to be concentrated on in order to improve customer
satisfaction.
We can recognize where we need to make changes to create improvements and
determine if these changes, after implemented, have led to increased customer satisfaction.

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THE NEED TO MEASURE CUSTOMER PERCEPTION

Satisfied customers are central to optimal performance and financial returns. In many
places in the world, business organizations have been elevating the role of the customer to
that of a key stakeholder over the past twenty years. Customers are viewed as a group whose
satisfaction with the enterprise must be incorporated in strategic planning efforts. Forwardlooking companies are finding value in directly measuring and tracking customer satisfaction
as an important strategic success indicator. Evidence is mounting that placing a high priority
on customer satisfaction is critical to improved organizational performance in a global
marketplace.
With better understanding of customers' perceptions, companies can determine the
actions required to meet the customers' needs. They can identify their own strengths and
weaknesses, where they stand in comparison to their competitors, chart out path future
progress and improvement. Customer satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvements in the work practices and
processes used within the company.
When buyers are powerful, the health and strength of the company's relationship with
its customers its most critical economic asset is its best predictor of the future. Assets on
the balance sheet basically assets of production are good predictors only when buyers are
weak. So it is no wonder that the relationship between those assets and future income is
becoming more and more tenuous. As buyers become empowered, sellers have no choice but
to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more
important to pay attention to the customer.
Customer satisfaction is quite a complex issue and there is a lot of debate and
confusion about what exactly is required and how to go about it. This article is an attempt to
review the necessary requirements, and discuss the steps that need to be taken in order to
measure and track customer satisfaction.

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NEED AND IMPORTANCE OF THE STUDY:

One of the most important developments in banking sector has been the growth of the
financial industry over the past two decades. The benefits of financial industry can be seen in
the form of large scale industrial development, increased employment opportunities, higher
turnover as well as revenue generation to the government and also increase in export of goods
and services.
Banking industry in India has undergone a process of evolution with the package of
time. To count or to depend on a bank merely by the function it is supposed to perform would
be insufficient in the world that we live today.
Investments play a vital role on the part of the customers. A real

investor does

not simply throw his or her money random investment; he or she performs through analysis
and commits capital only when there is a reasonable expectation of profit. Hence they both
are interdependent i.e., it all depends upon the customer. Customer knows what to expect.
Today banks have a relationship management approach with the Banks are offering more
customized solutions to their clients.
The need of the hour is not only to introduce more value added products for which
the customers are willing to pay here but also to innovate & enter new segments like small
business & periodical financier clients. Everything resolves around the customer and banks
via with their innovative and quality products to suit their clients. Today the bottom line for
any customer is convenience understanding and evaluating the customer perception on the
service & products of a bank has without doubt become a need, which propels the body to
structure itself for better performance and service.
This study will address the current services provided by the bank, the gap between
the customer expectations, perceptions and the actual state of performance. The results of the
study would be to recognise the problems in the system and thus provide key areas where
improvement is required for better performance ratio.

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Delivering high quality service to clients is just as important as

delivering performance that meets or exceeds their expectations. It is in this context that a
study is necessary to know about awareness levels on the services provided by the public and
private sector banks namely, Public Sector Banks: State Bank of India, Indian Bank and
Indian Overseas Bank and Private Sector Banks : ICICI, HDFC and IndusInd Bank and the
customer perception towards the banks.

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OBJECTIVES
THE OBJECTIVES OF THE STUDY ARE:

Toevaluate the different factors considered by the investors while making

investments.

To study the services provided by Private Sector and Public Sector banks and
the performance of it.

To analyze the service facilities those are being effectively utilized by the customers.

To ascertain suggestions from the investors for further improvement of the

institutions.

To find out the level of expectation of the customers and the level of perception of the
customers from the services offered by the banks.

To investigate whether the banks provides the services as per the expectation of the
customers.

To evaluate the pattern of the banks in providing the services and to examine its
effects on the level of customer expectations and their perceptions.

Finally to suggest measures for improvement based on the findings of the study.

Data Source

Primary Data:
It is collected through structured questionnaire by conducting survey.

Secondary Data:
Internet, journals, books, magazines.
Method Of Analysis

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The method of analysis followed in the study is descriptive as well as

analytical.

For analysing the data and to arrive at logical conclusions, mathematical tools
like:
Weighted average method has been used.

The different services provide by the banks and customers expectation and
perceived have been find out on the basis of data collected from the customers.

Research Design
My research is descriptive in nature as the banking industry is well-developed in India
and lot of research has already been done in this area.
Research Tool

SERVQUAL Analysis:
Servqual is an instrument for measuring how customers perceive the quality of

a service. In the mid- 1980s Berry and his colleagues, parasuraman and zeithaml began to
investigate what determines service quality and how it is evaluated by customers. As a result
of their study they developed servqual instrument for measuring service quality, which
initially included 10 service quality dimensions, which were later reduced to the following
five: tangibles, reliability, responsiveness, assurance and empathy.
The instrument is based on the idea of the disconfirmation model, in other words on
the comparison of customer expectations with their experiences from the service. Usually, the
five dimensions of the instrument are described through the use of o20 attributes and
respondents are asked to state (on a five point scale from strongly disagree to strongly
agree) what they expected from the service and how they perceived the service.
This instrument has been widely used by researchers, but still, there are some
controversies in its applicability across different service industries. On some studies the five
dimensions of the instrument (determinants) have been found to be unstable across different
types of services. Therefore, the SERQUAL tool should be applied very carefully and the set
of determinants and attributes used should be adapted to the specific situation.
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LIMITATIONS OF STUDY

Respondents may give biased answers for the required data. Some of the

respondents did not like to respond.

In my study I have included customers of each bank

HISTORY OF BANKING IN INDIA

There are three different phases in the history of banking in India:

1)
2)
3)

Pre- Nationalization Era.

Nationalization Stage.
Post Liberalization Stage.

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1) PRE- NATIONALIZATION ERA:

In India the business of banking and credit was practices even in very early times. The
remittance of money through "undies, an indigenous credit instrument, was very popular. The
hundies were issued by bankers known as Shroffs, Sahukars, Shahusor Mahajans in different
parts of the country.
The modern type of banking, however, was developed by the Agency Houses
of Calcutta and Bombay after the establishment of Rule by the East India Company in 18 th
1k9th centuries.
During the early part of the 19 th Century, at volume of foreign trade was relatively
small. Later on as the trade e3panded, the need for banks of the European type was felt and
the government of the East India Company took interest in having its own bank. The
government of Bengal took the initiative and the first presidency bank, the Bank of Calcutta
(Bank of Bengal) was established in 1820.In 1840, The Bank of Bombay and In 1943, the
Bank of Madras was also set up.

These three banks are also known as Presidency Bank. The &residency Banks had
their branches in important trading centres but mostly lacked in uniformity in their
operational policies. In k899 the Government proposed to amalgamate these the
three banks in to one so that it could also function as a Central Bank, but the &

residency

Banks did not favour the idea. However, the conditions obtaining during world war period
(1914-1918) emphasized the need for a unified banking institution, as a result of which the
Imperial Bank was set up in 1921. The Imperial Bank of India acted like a Central bank and
as a banker for other banks.
The Reserve Bank of India was established in 1935 as the Central Bank of the
Country. In 1949, the Banking regulation act was passed and the RBI was nationalized and
acquired extensive regulatory powers over the commercial banks.
In 1950, the Indian Banking system comprised of the RBI, The Imperial Bank of India,
Cooperative banks, Exchange banks and Indian Joint Stocks banks.

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2) NATIONALIZATION STAGES:
Government took major steps in this Indian Banking Sector Reform
after independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of
India to act as the principal agent of RBI and to handle banking transactions of the Union and
State Governments all over the country. Seven banks forming subsidiary of State Bank of
India was nationalized in 1960on 19th July,1969, major process of nationalization was carried
out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country was nationalized. Second phase of nationalization Indian
Banking Sector Reform was carried out in1980 with seven more banks. This step brought
80% of the banking segment in India under Government ownership. The following are the
steps taken by the Government of India to Regulate Banking Institutions in the Country:1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions
3) POST- LIBERALIZATION STAGES:
By the beginning of 1990, the social banking goals set for the banking industry
made most of the public sector resulted in the presumption that there was no need to look
at the fundamental financial strength of this bank. Consequently they remained
undercapitalized.

Revamping this

structure

of

the

banking industry

was

of extreme importance, as the health of the financial sector in particular and the
economy was a whole would be reflected by its performance.
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The need for restructuring the banking industry was felt greater with the initiation
of the real sector reform process in 1992. The reforms have enhanced the
opportunities and challenges for the real sector making them operate in a borderless
global market place. However, to harness the benefits of globalisation, there should be an
efficient financial sector to support the structural reforms taking place in the real
economy. Hence, along with the reforms of the real sector, the banking sector reformation
was also addressed.

BANKS IN INDIA
In India the banks are being segregated in different groups. Each group has their own
benefits and limitations in operating in India. Each has their own dedicated target market.
Few of them only work in rural sector while others in both rural as well as urban. Many even
are only catering in cities. Some are of Indian origin and some are foreign players. All these
details and many more is discussed over here. The banks and its relation with the customers,
their mode of operation, the names of banks under different groups and other such useful
informations are talked about. One more section has been taken note of is the upcoming
foreign banks in India. The RBI has shown certain interest to involve more of foreign banks
than the existing one recently. This step has paved a way for few more foreign banks to start
business in India. The banking section will navigate through all the aspects of the Banking
System in India. It will discuss upon the matters with the birth of the banking concept in the
country to new players adding their names in the industry in coming few years. The banker of
all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks
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like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads
with one page dedicated to each bank.

However, in the introduction part of the entire banking cosmos, the past has beenwell

explained under three different heads namely:

History of Banking in India
Nationalization of Banks in India

Scheduled Commercial Banks in India The first deals with the history part since the
dawn of banking system in India. Government took major step in the 1969 to put the banking
sector into systems and it nationalized 14 private banks in the mentioned year. This has been
elaborated in Nationalization Banks in India. The last but not the least explains about the
scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the
condition of scheduled commercial banks.

Major Banks in India

Indian Overseas

ABN-AMRO Bank

Bank IndusInd

Abu Dhabi Commercial Bank

Bank ING

American Express Bank

Vysya Bank

Andhra Bank

Jammu & Kashmir Bank

Allahabad Bank

JPMorgan Chase Bank

Bank of Baroda

Karnataka Bank

Bank of India

Karur Vysya Bank

Bank of Maharashtra

Laxmi Vilas Bank

Bank of Punjab

Oriental Bank of Commerce

Bank of Rajasthan

Punjab National Bank

Bank of Ceylon

Punjab & Sind Bank

BNP Paribas Bank

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Scotia Bank

Canara Bank

South Indian Bank

Catholic Syrian Bank

Standard Chartered Bank

Central Bank of India

State Bank of India (SBI)

Centurion Bank

State Bank of Bikaner & Jaipur State Bank China Trust Commercial Bank
of Hyderabad

Citi Bank

State Bank of Indore

City Union Bank

State Bank of Mysore

Corporation Bank

State Bank of Saurastra

Dena Bank

State Bank of Travancore

Deutsche Bank

Syndicate Bank

Development Credit Bank

Taib Bank

Dhanalakshmi Bank

UCO Bank

Federal Bank

Union Bank of India

HDFC Bank

United Bank of IndiaUnited Bank Of India

HSBC

United Western Bank

ICICI Bank

UTI Bank

IDBI Bank

Fact Files of Banks in India

The first, the oldest, the largest, the biggest, get all such types of
informations about Banking in India in this section.
The first bank in India to be given an ISO Certification

Canara Bank

The first bank in Northern India to get ISO 9002 Punjab and Sind Bank
certification for their selected branches.
The first Indian bank to have been started solely with Punjab National Bank
Indian Capital.
The first among the private sector banks in Kerala to South Indian Bank
become a scheduled bank in 1946 under the RBI Act.
India's oldest, largest and most successful commercial State Bank of India
bank, offering the widest possible range of domestic,
international land NRI products and services, through its

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vast network in India and overseas

India's second largest private sector bank and is now the The Federal Bank Limited
largest. Scheduled commercial bank in India
Bank which started as private shareholders banks, mostly Imperial Bank of India
Europeans shareholders.
The first Indian bank to open a branch outside India in .Bank of India, founded in
London in 1946 and the first to open a branch in 1906 in Mumbai
continental Europe at Paris in 1974
The oldest Public Sector Bank in India having branches Allahabad Bank
all over India and serving the customers for the last 132
years.
The first Indian commercial bank which was wholly Central Bank of India
owned and managed by Indians.

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open
a branch outside India in London in 1946 and the first to open a branch in continental Europe
at Paris in 1974.

PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the
14major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public
Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of
four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918),
Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932). Oriental Bank of Commerce
(OBC), Government of India Undertaking offers Domestic, NRI and Commercial banking
services. OBC is implementing a GRAMEENPROJECT in Dehradun District (UP)
disbursing small loans. This Public Sector Bank India has implemented 14point action plan
for strengthening of credit delivery to women and has designated 5 branches as
specialized branches for women entrepreneurs.
The following are the list of Public Sector Banks in India
Allahabad Bank
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 Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
Syndicate Bank
Union Bank of India
United Bank of India
Vijaya Bank

PRIVATE SECTOR BANKS

Private banking in India was practiced since the beginning of banking system
in India. The first private bank in India to be set up in Private Sector Banks in India was
IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. RBI
ranks the tenth largest development bank in the world as Private Banks in India and has
promoted as a world class institution in India.
The first Private Bank in India to receive an in principle approval from the
Reserve Bank of India was Housing Development Finance Corporation limited, to set up
a bank in the private sector banks in India as part of the RBIs liberali7ation of the Indian
Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with
registered office in Mumbai and commenced operations as Scheduled Commercial Bank
in January 1995.
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ING Vysya, yet another Private Bank of India was incorporated in the year 1930.
Bangalore has a pride of place for having the first branch inception in the year 1934 with
successive years of patronage and constantly setting new standards in banking, ING
Vysya Bank has many credits to its account.
List of Private Banks in India
Bank of Punjab
Bank of Rajasthan
Catholic Syrian Bank
Centurion Bank
City Union Bank
Dhanalakshmi Bank
Development Credit Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
South Indian Bank
United Western Bank

Entry of Private Sector Banks

There has been a paradigm shift in mind sets both at the Government level in the
banking industry over the years since Nationalization of banks in 1969, particularly during
the last decade (1990-2000) having achieved the objectives of the Nationalization, the most
important issue before the industry at present is survival and growth in the environment
generated by the economic liberalization greater competition with a view to achieving higher
productivity and efficiency in January k993 for the entry of Private Sector banks based on the
Nationalization Committee report of k99k,which envisaged a larger role for Private Sector
Banks.
The RBI prescribed a minimum paid up capital of Rs. 100 crores for
thenew bank and the shares are to be listed at stock exchange. Also the new bank after being
granted license under the Banking Regulation Act shall be registered as a public limited
company under the companies Act, 1956.

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Subsequently 9 new commercial banks have been granted license to start banking
operations. The new private sector banks have been very aggressive in business

expansion

and is also reporting higher profile levels taking the advantage of technology and skilled
manpower. In certain areas, these banks have even our crossed the other group of banks
including foreign banks.

OVER VIEW OF BANKING

Banking Regulation Act of India, 1949 defines Banking as accepting, for the purpose of
lending or of investment of deposits of money from the public, repayable on demand or
otherwise or withdrawable by cheque, draft order or otherwise. The Reserve Bank of
India Act, 1934 and the Banking Regulation Act, 1949, govern the banking operations in
India.
ROLE OF BANKS
Banks play a positive role in economic development of a country as
repositories of communitys savings and as purveyors of credit. Indian Banking has aided
the economic development during the last fifty years in an effective way. The banking
sector has shown a remarkable responsiveness to the needs of planned economy. It has
brought about a considerable progress in its efforts at deposit mobilization and has taken a
number of measures in the recent past for accelerating the rate of growth of deposits. As
recourse to this, the commercial banks opened branches in urban, semi urban and rural
areas and have introduced a number of attractive schemes to foster economic
development
The activities of commercial banking have growth in multi-directional ways
as well as multi-dimensional manner. Banks have been playing a catalytic role in area
development, backward area development, e3tended assistance to rural development all
along helping agriculture, industry, international trade in a significant manner. In a way,
commercial banks have emerged as key financial agencies for rapid economic
development.
Banks play a positive role in economic development of a country as
repositories of communitys savings and as purveyors of credit. Indian Banking has aided
the economic development during the last fifty years in an effective way. The banking
19 | P a g e

sector has shown a remarkable responsiveness to the needs of planned economy. It has
brought about a considerable progress in its efforts at deposit mobilization and has taken a
number of measures in the recent past for accelerating the rate of growth of deposits. As
recourse to this, the commercial banks opened branches in urban, semi urban and rural
areas and have introduced a number of attractive schemes to foster economic
development.
Development and financial specification. A country like India, with
different regions at different stages of development, presents an interesting spectrum of
the evolving role of banks, in the matter of inter-mediation and beyond.
Commercial banks provide short-term and medium-term financial assistance.
The short-term credit facilities are granted for working capital requirements. The
medium-term loans are for the acquisition of land, construction of factory premises
and purchase of machinery and equipment. These loans are generally granted for periodsr
anging from five

to seven

years. They

also

establish

letters

of credit

on

behalf of their clients favouring suppliers of raw materials / machinery (both Indian and
foreign) which extend the bankers assurance for payment and thus help their
delivery.Certain transaction, particularly those in contracts of sale of Government
Departments, may require guarantees being

issued

in

lieu of security earnest money

deposits for release of advance money, supply of raw materials for processing,
full payment of bills on the assurance of the performance etc.
Commercial banks issue such guarantees also.

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PRODUCTS AND SERVICES OFFERED BY THE BANKS

Broad Classification of Products in a bank:
Retail Banking
Trade Finance
Treasury Operations
Retail Banking and Trade finance operations are conducted at the branch level while
the wholesale banking operations, which cover treasury operations, are at the hand office
or a designated branch.
Retail Banking:
Deposits
Loans, Cash Credit and Overdraft
Negotiating for Loans and advances
Remittances
Book Keeping (maintaining all accounting records)
Receiving all kinds of bonds valuable for safe keeping
Trade Finance:
Issuing and confirming of letter of credit
Drawing, accepting, discounting, buying, selling, collecting of bills of exchange,
promissory notes, drafts, bill of lading and other securities.
Treasury Operations:

Buying and selling of bullion

Foreign exchange Acquiring, holding, underwriting and dealing in shares, debentures,
etc.
Purchasing and selling of bonds and securities on behalf of constituents. The banks

can also act as an agent of the Government or local authority. They insure, guarantee,
underwrite, participate in managing and carrying out issue of shares, debentures, etc.
Apart from the above mentioned functions of the bank, the bank provides a whole
lot of other services like investment counselling for individuals, short-term funds
management and portfolio management for individuals and companies. It undertakes the

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inward and outward remittances with reference to foreign exchange and collection of
varied types for the Government.

COMMON BANKING PRODUCTS AVAILABLE

Some of common available banking products are explained below:

1. CREDIT CARD:
Credit Card is 'post-paid' or 'pay later' card that draws from a credit line- money made
available by the card issuer (bank) and gives one a grace period to pay. If the amount is
not paid full by the end of the period, one is charged interest. A credit card is nothing but
a very small card containing a means of identification, such as a signature and a small
photo. It authorises the holder to change goods or services to his account, on which he is
billed. The bank receives the bills from the merchants and pays on behalf of the card
22 | P a g e

holder. These bills are assembled in the bank and the amount is paid to the bank by the
card holder totally or by instalments. The bank charges the customer a small amount for
these services. The card holder need not have to carry money cash with him when he
travels or goes for purchasing. Credit cards have found wide spread acceptance in the
"metros" and big cities. Credit cards are joining popularity for online payments. The
major players in the Credit Card market are the foreign banks and some big public sector
banks like RBI and Bank of Baroda. India at present has about 3 million credit cards in
circulation.
2. DEBIT CARD:
Debit Card is a prepaid or pay now card with some stored value Debit Cards quickly
debit or subtract money from ones savings account, or if one were taking out cash. Every
time a person uses the card, the merchant who in turn can get the money transferred to his
account from the bank of the buyers, by debiting an exact amount of purchase from the
card. To get a debit card along with a Personal Identification number (PIN).
he major limitation of debit Card is that currently only some 3000-4000 shops
country wide accepts it. Also, a person cant operate it in case the telephone lines are
down

3. AUTOMATIC TELLER MACHINE:

The introduction of ATMs has given the customers the facility of round the clock
banking. The ATMs are used by banks for making the customers dealing easier. ATM card is
a device that allows customer who has an ATM card to perform routine banking transaction at
any time without interacting with human teller. It provides exchange services. This service
helps the customer to withdraw money even when the banks ate closed. This can be done by
inserting the card in the ATM and entering the Personal Identification number and secret
password.
ATMs are currently becoming popular in India that enables the customer to withdraw
their money 24 hours a day and 365 days. It provides the customers with the ability to

23 | P a g e

withdraw or deposit funds, check account balances, transfer funds and check statement
information. The advantages of ATMs are many.

To transfer money to and from accounts.

To view account information.
To order cash.
To receive cash

Advantages of ATMs:

o
o
o
o
o

To the customers:
ATMs provide 24 hrs., F days and 365 days a year service
Service is quick and efficient
Privacy in transaction
Wider flexibility in place and time of withdrawals.
The transaction is completely secure: you need to key in Personal Identification
number (unique number for every customer).

o
o
o
o
o

To the banks:
Alternative to extend banking hours.
Crowding at bank counters considerably reduced
Alternative to new branches and to reduce operating e3penses.
Relieves bank employees to focus on a more analytical and innovative work.
Increased market penetration
ATMs can be installed anywhere like Airports, railway stations, petrol pumps,

Big Business arcades, markets, etc. Hence, it gives easy access to the customers,
for obtaining cash.

The ATM services provided first by the foreign banks like Citibank, Grind lays
bank and now by many private and public sector banks in India like ICICI Bank, HDFC
Bank, UTI Bank etc.

4. E-CHEQUES:
The e-cheques consists five primary facts. They are the consumers, the merchant,
consumers bank the merchants bank and the e-mint and the clearing process. This
chequering system uses the network services to issue and process payment that emulates real
24 | P a g e

world chequing. The payer issues a digital cheques to the payee ant the entire transactions are
done through internet. Electronic version of cheques are issued, received and processed. A
typical electronic cheque transaction takes place in the following manner:
i.

The customer accesses the merchant server and the merchant server presents

ii.

its goods to the customer.

The consumer selects the goods and purchases them by sending an e-cheque

iii.
iv.
v.
vi.

to the merchant.
The merchant validates the e-cheque with its bank for payment authorization.
The merchant electronically forwards the e-cheque to its bank.
The merchants bank forwards the e-cheque to the clearing house for cashing.
The clearing house jointly works with the consumers bank clears the cheque

vii.
viii.

and transfers the money to the merchants banks.

The merchants bank updates the merchants account.
The consumers bank updates the consumers account with the withdraw all
information.

The e-chequing is a great boon to big corporate as well as small retailers. Most major
banks accept e-cheques. Thus this system offers secure means of collecting payments,
transferring value and managing cash flows.

5. ELECTRONIC FUNDS TRANSFER (EFT):

Many modern banks have computerised their che4ue handling process with computer
networks and other electronic e4uipments. These banks are dispensing with the use of paper
che4ues. The system called electronic fund transfer (EFT) automatically transfers money
from one account to another. This system facilitates speedier transfer of funds electronically
from any branch to any other branch. In this system the sender and the receiver of funds may
be located indifferent cities and may even bank with different banks. Funds transfer within
the same city is also permitted. The scheme has been in operation since February, 1996 in
India.
The other important type of facility in the EFT system is automated clearing houses.
These are the computer centres that handle the bills meant for deposits and the bills meant for
payment. In big companies pay is not disbursed by issuedche4ues or issuing cash. The
payment office directs the computer to credit an employees account with the persons pay.
25 | P a g e

6. TELE BANKING:
Tele banking refers to banking on phone services. a customer can access information
about his/her account through a telephone call and by giving the coded Personal
Identification Number (PIN) to the bank. Telebanking is extensively user friendly and
effective in nature.
To get a particular work done through the bank, the users may leave his instructions in
the form of message with bank.

Facility to stop payment on request.

One can easily know about the cheque status.
Information on the current interest rates.
Information with regard to foreign exchange rate.
Request for a DD or pay order.
D-Mat Account related services.
And other similar services.

7. MOBILE BANKING:
A new revolution in the realm of e-banking is the emergence of mobile banking. On-line
banking is now moving to the mobile world, giving everybody with a mobile phone access to
real-time banking services, regardless of their location. But there is much more to mobile
banking from just on-lie banking. It provides a new way to pick up information and interact
with the banks to carry out the relevant banking business. The potential of mobile banking is
limitless and is expected to be a big success. Booking and paying for travel and even tickets
is also expected to be a growth area. According to this system, customer can access account
details on mobile using the Short Messaging System (SMS) technology5 where select data is
pushed to the mobile device. The wireless application protocol (WAP) technology, which will
allow user to surf the net on their mobiles to access anything and everything. This is a very
flexible way of transacting banking business.

26 | P a g e

Already ICICI and HDFC banks have tied up cellular service provides such as
Airtel, Orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking services to
their customers.

8. INTERNET BANKING:
Internet banking involves use of internet for delivery of banking products and services.
With internet banking is now no longer confirmed to the branches where one has to approach
the branch in person, to withdraw cash or deposits a cheque or request a statement of
accounts. In internet banking, any inquiry or transaction is processed online without any
reference to the branch (anywhere banking) at any time.
The Internet Ban1ing now is more of a normal rather than an exception due to the
fact that it is the cheapest way of providing ban1ing services. As indicated by McKinsey
Quarterly research, presently traditional ban1ing costs the banks, more than a dollar per
person, ATM banking costs 27 cents and internet ban1ing costs below 4 cents approximately.
ICICI bank was the first one to offer Internet Banking in India.
Benefits of Internet Banking:
i.

Reduce the transaction costs of offering several ban1ing services and diminishes the

ii.

need for longer numbers of e3pensive bric1 and mortar branches and staff.
Increase convenience for customers, since they can conduct many banking

iii.
iv.
v.
vi.

transaction 24 hours a day.

Increase customer loyalty.
Improve customer access.
Attract new customers.
Easy online application for all accounts, including personal loans and mortgages.
9. DEMAT:
DE mat is short for de-materialisation of shares. In short, DE mat is a process where

at the customers re4uest the physical stoc1 is converted into electronic entries in the
depository system.
In January 1998 SEBI (Securities and Exchange Board of India) initiated DEMAT
ACCOUNTANCY System to regulate and to improve stock investing. As on date, to trade on
27 | P a g e

shares it has become compulsory to have a share demat account and all trades take place
through Demat.

BANKING SERVICES
Banking covers so many services that it is difficult to define it. However, these
basic services have always been recognised as the hallmark of the genuine banker which
are as follow;
The receipt of the customers deposits.
The collection of his cheques drawn on other banks.
The payment of the customers cheques drawn on himself.

There are other various types of banking services like:

i.
ii.
iii.
iv.
v.
vi.
vii.

Advances- overdraft, cash-credit etc.,

Deposits- saving deposit, current deposit etc.,
Financial service- bill discounting etc.,
Foreign service-providing foreign currency, travellers cheques etc.,
Money transmission-fund transfer etc.,
Savings-fixed deposits etc.,
Status- credit cards, debit cards etc.,

CUSTOMER SERVICES IN COMMERCIAL BANKS

Customer service is the service provided in support of a banks core products.

Customer service often includes answering questions handling complaints. Customer service
28 | P a g e

can occur on site 9as when an onstage employee helps a customer or answers a question; or it
can occur over the phone or the Internet. Quality customer service is essential to building
cordial customer relationship. Banking being a service industry, a lot depends on efficient and
prompt customer service. Customer service is the most important duty of the banking
operations. Prompt and efficient service with smile will develop good public relations reduce
complaints and increase business. Why is Customer Service Important Changing customer
expectations? Today the customer is more demanding and more sophisticated than he or she
was thirty years ago.

The increased importance of customer service:

With

changing customer expectations, competitors are seeing customer service as a competitive

weapon with which they differentiate their products and services.
The need for a relationship strategy: To ensure that a customer service strategy that
will create a value preposition for customers should be formulated implemented and
controlled. It is necessary to give it a central role and not one that is subsumed in the various
elements of the marketing mix.
The customer is the king in in growth organisations like commercial banks. Only
those institutions which work according to his dictates will flourish. Quality, Consistency and
Durability at low price are the final expectations of a customer. Quality will have to be
unambiguous, of world class quality. Quality cannot be of minimum acceptable standards.
Customer responsiveness must be quick and also competent. Speed, performance and cost
will be the new values mantra for success.

29 | P a g e

PEST ANALYSIS

POLITICAL/ENVIRONMENT:
Government and RBI policies affect the banking sector. sometimes looking into the
political advantage of a particular party, the Government declares some measures to their
benefits like waiver of short-term agricultural loans, to attract the farmers votes. By doing so
the profits of the bank get affected. Various banks in the cooperative sector are open and run
by the politicians. They exploit these banks for their benefits sometimes the government
appoints various chairmen of the banks. Various policies are framed by the RBI looking at the
present situation of the country for better control over the banks.

ECONOMICAL ENVIRONMENT:
Banking is as old as authentic history and the modern commercial banking are
traceable to ancient times. In India, banking has existed in one form or the other from time to
time. The present era in banking may be taken to have commenced with establishment of
Bank of Bengal in 1809 under the government charter and with government participation in
share capital. Allahabad bank was started in the year 1865 and Punjab national bank in 1895,
and thus, others followed.
Every year RBI declares its 5 monthly policy and accordingly the various measures and
rates are implemented which has an impact on the banking sector. Also the Union budget
affects the banking sector to boost the economy by giving certain concessions or facilities. If
in the Budget savings are encouraged, then more deposits will be attracted towards the banks
and in turn they can lend more money to the agricultural sector and industrial sector,
therefore, booming the economy. If the FDI limits are relaxed, then more FDI are brought
in India through banking channels
SOCIAL ENVIRONMENT:
Before nationalisation of the banks, their control was in the hands of the
private parties and only big business houses and the effluent sections of the society were
30 | P a g e

getting benefits of banking in India. In 1969 government nationalised 14 banks. To adopt the
social development in the banking sector it was necessary for speedy economic progress,
consistent with social justice, in democratic political system, which is free from domination
of law, and in which opportunities are open to all. Accordingly, keeping in mind both the
national and social objectives, bankers were given direction to help economically weaker
section of the society and also provide need-based finance to all the sectors of the economy
with flexible and liberal attitude. Now the banks provide various types of loans to farmers,
working women, professionals, and traders. They also provide education loan to the students
and housing loans, consumer loans, etc. Banks having big clients or big companies have to
provide services like personalised banking to their clients because these customers do not
believe in running about and waiting in queues for getting their work done. The bankers also
have to provide these customers with special provisions and at times with benefits like food
and parties. But the banks do not mind incurring these costs because of the kind of business
these clients bring for the bank.

TECHNOLOGICAL ENVIRONMENT:

Technology plays a very important role in banks internal control mechanisms as well as
services offered by them. It has in fact given new dimensions to the banks as well as services
that they cater to and the banks are enthusiastically adopting new technological innovations
for devising new products and service.
The latest developments in terms of technology in computer and telecommunication
have encouraged the bankers to change the concept of branch banking to anywhere banking.
The use of ATM and Internet banking has allowed anytime, anywhere is banking facilities.
Automatic voice recorders now answer simple queries, currency accounting machines makes
the job easier and self-service counters are now encouraged. Credit card facility has
encouraged an era of cashless society. Today MasterCard and Visa card are the two most
popular cards used world over. The banks have now started issuing smartcards or debit cards
to be used for making payments. These are also called as electronic purse. some of the banks
have also started home banking through telecommunication facilities and computer
technology by using terminals installed at customer home and they can make the balance
inquiry, get the statement of accounts, give instructions for fund transfers, etc. Through ECS
31 | P a g e

we can receive the dividends and interest directly to our account avoiding the delay or chance
of losing the post.
Today banks are also using SMS and Internet as major tool of promotions and giving
great utility to its customers. For example, SMS functions through simple text messages sent
from your mobile. The messages are then recognised by the bank to provide you with the
required information. All these technological changes have forced the bankers to adopt
customer-based approach instead of product-based approach.

32 | P a g e

REVIEW OF LITERATURE
Currently, technological changes are causing banks to rethink their strategies
for services offered to both commercial and individual customers. Moreover, banks that excel
in quality service can have a distinct marketing edge since improved levels of service quality
are related to higher revenues, increased cross-sell ratios and higher customer retention
(Bennett and Higgins, 1993) and expanded market share (Bowen and Hedges, 1993)
Moreover, the banks understand that customers will be loyal if they can produce greater value
than competitors.
It is indeed true that delivery of high-service quality to customers offers firms an
opportunity to differentiate themselves in competitive markets (Karatepe et al.,2005). In
contrast, high quality of service leads to customer satisfaction and loyalty and greater
willingness to suggest and or recommend to someone else, reduction in customer complaints,
and improved customer retention rates to a great extent (Bitner, 1990; Headley and Miller,
1993; Zeithaml et al., 1996; Danaher, 1997). In recent years, the financial sector has
developed rapidly interims of size, structure and the variety of consumer and business-tobusiness products and services around the world in general and gulf region, in particular. In
addition, many retail banks face huge challenges such as technological advancement,
competitive products, and services and thus, in order to survive and compete effectively,
banks must recognise the customer perceptions of the service quality, academicians and
practitioners have given more attention to this area as it assumed that service quality is a
critical measure of firm performance.
However, service quality is abstract and elusive and lac1s objective measures
(Karatepe et al.,2005). Therefore, in order to identify the firm strengths and /or
weaknesses, customer perceptions of service quality as a basic instrument. Therefore, the
objective of the paper is to test a service quality instrument by using retail banking services in
emerging countries.
Indeed, (Reassen and Olsen, 2008 and Liang et al., 2009) researchers argue that high
levels of customer satisfaction lead to customer retention, especially in markets that are
highly competitive and saturated, such as financial services. Moreover, in the present
competitive banking environment, most of the banks offer the same or similar products

33 | P a g e

around the world and service quality is a vital means to differentiate themselves in the market
place. ,The curare search contribute toward understanding the relationship among customer
services, customer satisfaction, and customer perception argue that high levels of customer
satisfaction lead to customer retention, especially in markets that are highly competitive and
saturated, such as financial services Moreover, in the present competitive banking
environment, most of the banks offer the same or similar products around the world and
service quality is a vital means to differentiate themselves in the market place.

34 | P a g e

BANK
PROFILE

35 | P a g e

HISTORY OF CANARA BANK

Late Sri Ammembal Subbarao Pai

Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Shri Ammembal
Subba Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara
Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalization.

"A good bank is not only the financial heart of the community, but also
one with an obligation of helping in every possible manner to improve the
economic conditions of the common people"
- A. Subba Rao Pai.

36 | P a g e

PROFILE
A Brief Profile of the Bank:

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal
Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small
port town in Karnataka. The Bank has gone through the various phases of its growth
trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal,
especially after nationalization in the year 1969, attaining the status of a national level player
in terms of geographical reach and clientele segments. Eighties was characterized by business
diversification for the Bank. In June 2006, the Bank completed a century of operation in the
Indian banking industry. The eventful journey of the Bank has been characterized by several
memorable milestones. Today, Canara Bank occupies a premier position in the comity of
Indian banks. Canara Bank has several firsts to its credit. These include:

Launching of Inter-City ATM Network

Obtaining ISO Certification for a Branch

Articulation of Good Banking Banks Citizen Charter

Commissioning of Exclusive Mahila Banking Branch

Launching of Exclusive Subsidiary for IT Consultancy

Issuing credit card for farmers

Providing Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major
'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint
ventures in India and abroad. As at June 2016, the Bank has further expanded its domestic
37 | P a g e

presence, with 5847 branches spread across all geographical segments. Keeping customer
convenience at the forefront, the Bank provides a wide array of alternative delivery channels
that include 9657 ATMs, covering 4081 centres. Several IT initiatives were undertaken during
the year. The Bank set up 172 hi-tech E-lounges in select branches with facilities like ATM,
Cash Deposit Kiosk with voice guided system, Cheque Deposit Kiosk, Self-Printing
Passbook Kiosk, Internet Banking Terminal, Online Trading Terminal and Corporate Website
Access. Canara e-Info book an electronic passbook and banking related information
facility was introduced on mobile platforms - Android, Windows & iOS. The Bank also
launched Canara Bank RuPay Debit Card, Canara Club Card Debit, Canara Secured Credit
Card, Canara Elite Debit Card, Canara Bank Platinum Rupay Cards, Platinum Rupay Card
and EMV Chip Cards under debit and credit cards. Online Savings Bank and PPF account
opening were introduced. The Bank made several value additions under internet banking and
Mobile banking services. The Bank has introduced enhanced version of Can Mobile, Canara
e-InfoBook- an electronic passbook and banking related information facility on mobile
platforms - Android, Windows & iOS and Canara m-Wallet to provide more convenience and
facilities to customers. Canara Galaxy, a combo product launched, comprising SB, Demat,
OLT, Internet & Mobile Banking, Insurance, card services and other add-ons. Under
education loan interest subsidy, web portals released for Central Scheme for Interest Subsidy
(CSIS), Ministry of HRD, GoI, Dr. Ambedkar Central Sector Scheme of Interest Subsidy
(ACSIS), Ministry of Social Justice & Empowerment, GoI and Padho Pardesh, Ministry of
Minority Affairs, GoI.

The Bank has launched Instant loan application in principle sanction portal for
Housing Loan and Car Loan. The Bank issued MUDRA Debit Card for overdraft accounts
under MUDRA Card scheme. P2U (Person to UIDAI) funds transfer through Mobile Banking
in WAP channel was enabled by the Bank. Subscription of Social Security Schemes of Govt.
of India through ATM, SMS and Internet Banking was enabled by the Bank. The Bank has
implemented Jeevan Praman a digital life certificate for pensioners. The Bank Has
Implemented automated reminder SMS/Email Alerts to customers intimating to submit RC
Copy/Insurance for the vehicle loans and tax paid receipt/certificate for the mortgaged
property. Missed Call / SMS Based ePass Sheet generation made live by the Bank. The Bank
has successfully implemented SMS/Email Alerts to NPA Borrowers intimating to regularize
over dues in accounts. Mobile Banking Registration through ATMs (Interoperability through
38 | P a g e

NFS) has been successfully introduced by the Bank. Not just in commercial banking, the
Bank has also carved a distinctive mark, in various corporate social responsibilities, namely,
serving national priorities, promoting rural development, enhancing rural self-employment
through several training institutes and spearheading financial inclusion objective. Promoting
an inclusive growth strategy, which has been formed as the basic plank of national policy
agenda today, is in fact deeply rooted in the Bank's founding principles.
"A good bank is not only the financial heart of the community, but also one with an
obligation of helping in every possible manner to improve the economic conditions of
the common people".
These insightful words of our founder continue to resonate even today in serving the
society with a purpose. The growth story of Canara Bank in its first century was due, among
others, to the continued patronage of its valued customers, stakeholders, committed staff and
uncanny leadership ability demonstrated by its leaders at the helm of affairs. We strongly
believe that the next century is going to be equally rewarding and eventful not only in service
of the nation but also in helping the Bank emerge as a "Preferred Bank" by pursuing global
benchmarks in profitability, operational efficiency, asset quality, risk management and
expanding the global reach.

Vision & Mission

Vision:
To emerge as a Preferred Bank by pursuing global benchmarks in profitability,
operational efficiency, asset quality, risk management and expanding the global reach.

Mission:
To provide quality banking services with good customer care, create value for all
stakeholders and continue as a responsive corporate social citizen.

39 | P a g e

Founding Principles:
1. To remove Superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the community
but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the surroundings with
a view to make changes/remove hardships and sufferings.

Sound founding principles, enlightened leadership, unique work culture and remarkable
adaptability to changing banking environment have enabled Canara Bank to be a frontline
banking institution of global standards.

40 | P a g e

SUBSIDIARIES

1) Canara Robeco Asset Management Company Limited

Bank had established its Mutual Fund arm Can bank Mutual Fund on 19.12.1987
for foraying into the Capital Market. Subsequently Can bank Investment Management
Services Limited was established by the Bank on 02.03.1993 and was a wholly owned
Subsidiary of the Bank. In the year 2007, Canara Bank divested 49% stake in the AMC in
favour of M/s Rebeca Groep N V, forming a Joint Venture for managing the assets of Can
bank Mutual Fund. The Company was re-christened as Canara Robeco Asset Management
Company Limited.

An Asset Management Company under the aegis of Canara Robeco Mutual Fund.
Canara Robeco Mutual Fund is a Trust managed by Independent/ Associate Trustees.

Canara Bank continues to have 51% stake in the Joint Venture Company.

The Joint Venture Company is managed by a team of professionals bringing in the

best international practice and expertise. This, coupled with the enviable network of Canara
Bank, aims to capture a decent market share of MF Industry.

The Company invest in Debt / Equity Market. As on 31st March 2015, the Company is
managing 28 schemes of Canara Robeco Mutual Fund of which 17 were debt oriented
schemes, 8 were equity oriented schemes, 1 balanced fund, 1 Gold ETF and 1 Gold savings
und.

The Asset Under Management as on 31st March, 2015 is Rs.6420 Cr.

AMC has 14 Investor Relation Centres spread over important cities of the country for
education / helping the investors and garnering business for the Company.
41 | P a g e

The Company has set up a full-fledged in-house research and market information
departments and having a team of experienced Fund Managers.

2) Can bank Financial Services Limited (Canfina)

Wholly owned Subsidiary of Canara Bank was established in the year 1987. Canfina
was very quick to carve a niche for itself in the Merchant Banking arena as a premier
institution providing a host of financial services under one roof.
Canfina is presently attending to matters like collection of lease rentals, realization
of investments and follow up of court cases.

Registered Office of the Company is at Bangalore.

3) Canara Bank Securities Limited (CBSL)

Canara Bank Securities Limited originally incorporated as Gilt Securities Trading
Corporation Limited on 01.03.1996 and was a Primary Dealer in Government Securities
Market till 20.02.2007. Subsequently, Primary Dealer Business was hived off to the Parent
Bank and the Company forayed into Corporate Broking business. The Company is a wholly
owned Subsidiary of Canara Bank since September 2004.
CBSL has obtained membership/certificate from NSE/ BSE/ MCX-SX/ SEBI for Stock
Broking.
CBSL is offering investment and online trading facilities in the Capital Market-Cash
Segment, Futures and Options and Currency Derivatives Segments and subscription to
public issues and Mutual Fund products.
CBSL operates both in Retail and Institutional Segment apart from undertaking
proprietary trading.

42 | P a g e

 CBSL offers On Line Trading (OLT) facility to the Demat constituents of the Bank
maintaining Savings / Current account with the Bank.
CBSL offers Retail Trading facility through its website www.canmoney.in
CBSL is having Registered Office at Mumbai and Representative Offices at Bangalore
and Chennai.

4) Can bank Computer Services Limited (CCSL)

With fast increasing impetus on information technology and extensive use of
computers, the Bank found good opportunity for establishment of a Company, to develop
software and provide consultancy services, Bank established Canbank Computer Services
Limited during 1994 as a Subsidiary. It is the only Public Sector Bank sponsored IT outfit in
the country.
The Company is co-promoted by Bank of Baroda, Vijaya Bank, The Lakshmi Vilas
Bank Ltd and The Karur Vysya Bank Ltd. Canara Bank is holding 69.14% of the equity of
the Company.
Captive availability of techno-domain expertise has been the strength of Canbank
Computer Services Limited, as a result the Company has accomplished robust development
of Software & Maintenance of Software for Banks, Financial Institutions and Government
Departments.
Can bank Computer Services Limited, broadly offers services in the following
areas:
Development of Customized Software Projects, Business Process Outsourcing, Web
based solution, Information Systems Audit, Migration Audit, Consultancy Services, Preshipment & Post-shipment testing of Hardware, Software Testing, IT Enable services like
ATM managed services, Any Time Payment Kiosks, Registrars & Transfer Agents and
Training.

The Registered Office is situated at Bangalore

5) Can Fin Homes Limited

Can Fin Homes Limited was established on 29.10.1987 with HDFC, UTI and NHB as
co-promoters of the Company.

43 | P a g e

Canara Bank presently holding 43.45% of equity in the Company and is an Associate
Company.
Being a listed Company, the shares of the Company are listed on BSE Limited and
the National Stock Exchange of India Limited, Mumbai.
The prime objective and activity of the Company is to provide long term finance to
individuals for construction or purchase of residential houses/ flats and to Companies or
Corporations or Societies or Associations for the purpose of construction or purchase of
residential houses / flats.
Company is also having other Non-Housing Finance Products, namely Loan against
Commercial Properties, Loan against Rent Receivables, Mortgage loans against house
properties, Commercial Housing Loan, Flexi LAP and Builders Loan.

As at 31.3.2015, Company has network of 107 branches and 10 Satellite Offices spread
across the country.
The deposit schemes of the Company were rated MAAA (pronounced as M Triple A)
by ICRA Ltd., indicating highest-credit-quality and the rated deposit programme carries
lowest credit risk`

The Registered Office of the Company is at Bangalore

6) Can bank Factors Limited

Can bank Factors Limited is incorporated in 1991, as a Subsidiary of Canara Bank
with Andhra Bank and Small Industries Development Bank of India as

co-promoters.

Canara Bank is holding 70% equity shares in the Company.

The Company enjoys the highest rating of A1+ by CRISIL for its Short Term Debt
Programmed.
With network of 13 branches, Company is into Sale Bill Domestic Factoring - To
meet the post sales working capital requirement of the industrial/ trade / service sector by
converting credit sales into cash sales. The Company also provides Invoice Discounting
facility against bills / invoices backed by LCs.

44 | P a g e

The Registered office is at Bangalore.

7) Can bank Venture Capital Fund Limited (CVCFL)

To provide venture capital assistance to needy ventures, Bank formed a Venture
Capital Fund (CVCF) in the year 1989. The Fund is managed by Can bank Venture Capital
Fund Ltd, a wholly owned Subsidiary of Canara Bank.
Canara Bank is the first Public Sector Bank to set up a Venture Capital Fund, duly
registered with SEBI.
CVCFL as a Trustee and Manager of Can bank Venture Capital Fund (CVCF),
provides growth capital for Expansion of Industries and also for start-ups.
Till date Company has launched 5 Funds with total corpus of Rs.617 Cr with
investment spread across diverse industrial segments. The latest fund is Emerging India
Growth Fund floated during 2010 with a corpus of ` 500 Cr and is in investment mode.
CVCFLs Registered Office is situated at Bangalore

8) Canara HSBC Oriental Bank of Commerce Life Insurance

Company Ltd

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited is

jointly owned by two of India's largest Public Sector Banks Canara Bank (holding
51%) and Oriental Bank of Commerce (23%) and HSBC Insurance (Asia-Pacific)
Holdings Limited (26%), the Asian insurance arm of one of the worlds largest banking
and financial services groups -HSBC. The Company launched its business in June 2008.
The formidable distribution strength and in-depth local market knowledge of
Canara Bank and Oriental Bank of Commerce which is widely spread across length and
breadth of the country coupled with the considerable insurance experience, product range
and proven Bancassurance capabilities of HSBC make Canara HSBC Oriental Bank Of
Commerce Life Insurance Company Limited an unparalleled union of financial strength,
expertise and most importantly Trust.
The Companys core philosophy is Treating Customers Fairly and is always
committed to deliver Value for Money (VFM) to its customers. Based on customer
needs, the Company currently offers 16 products (8 unit-linked and 8 traditional).
The Company was the first to launch Immediate Payouts on Death Claim, so that
the deceaseds family receives the fund value immediately on registration of death claim
under unit-linked policies. Over the years, the Company has received many awards for its
innovations, customer centric initiatives and processes. The Company was recently
45 | P a g e

awarded as ET Promising Brands 2015. The award distinguishes the Company as a

trusted brand & exhibits its commitment on customer centricity.

Overseas subsidiaries, branches and offices

Canara Bank established its International Division in 1976. In 1983, Canara Bank
opened its first overseas office, a branch in London. Two years later, Canara Bank
established a subsidiary in Hong Kong, Indo Hong Kong International Finance. In 20089, Canara Bank opened its third foreign operation, this one a branch in Shanghai. Later
Canara Bank established a branch each in Leicester and Bahrain, and converted its Hong
Kong subsidiary into a branch. It also has a representative office in Sharjah.
Together with State Bank of India, Canara Bank established a joint venture in
Moscow, Commercial Bank of India LLC.
Canara Bank provides the general manager and the branch managers for Al Razouki Intl
Exchange Co (LLC), which a number of business leaders and Non-Resident Indians
(NRIs) established in 1981 in the United Arab Emirates to facilitate remittances to
India by tourists and NRIs.
Since 1983, Canara Bank has been responsible for the management of Eastern
Exchange Co. WLL, Doha, Qatar, which Abdul Rahman M.M. Al Muftah had established
in 1979.[6]
Canara Bank opened its seventh overseas branch in New York, USA on 10 June 2014.

Regional rural banks

Canara Bank sponsors two regional rural banks (RRB):

Kerala Gramin Bank It is the largest RRB in India. Its headquarters are
at Malappuram and it operates in all districts in Kerala. It was established in 1976 as a
Scheduled Commercial Bank.

Pragathi Krishna Gramin Bank has its headquarters at Bellary, Karnataka, and has
645 branches spread over eleven districts.

46 | P a g e

Canara bank is a state level lead bank in Kerala.

Awards/Accolades
Received during 2007-08

First National Award, instituted by the Ministry of Micro, Small & Medium
Enterprises, Govt. of India for 'Excellence in Micro & Small Enterprises
(MSE)Lending' for 2006-07.

Golden Peacock Award for Corporate Social Responsibility' for the year 2007.Canara
Bank is the first PSB to receive the award since its institution in the year 1991.

Golden Peacock National Training Award-2007, instituted by the Institute

of Directors, New Delhi, a pioneer in Quality Revolution.

Conferred the Business Super brands Status for 2008.

'The Organization of the Year Award- for PR Excellence', instituted by Public

Relations Council of India.

Excellence in the field of Khadi & Village Industries in South Zone for the year 200607, instituted by Khadi & Village Industries Commission, Ministry of Micro, Small &
Medium Enterprises, Government of India.

Received during 2008-09

Conferred 'First Rank' in India's Best Banks awards under the category 'Strength and
Soundness' for 2006-07 by a survey conducted by Ernst & Young.

Best Performing Bank under Rural Employment Generation Programme, (REGP)of

Khadi and Village Industries Commission (KVIC), in South Zone for the year 200708, instituted by the Ministry of MSME, Government of India.

Golden Peacock National Training Award 2008 for excellence in training.

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Global HR excellence in Training, an award conferred by the Asia Pacific HR

Congress, the largest rendezvous of HR Professionals, at its Employer Branding

Talent Management Congress held on 22nd and 23rd August 2008, Delhi.

Best Corporate Social Responsibility Practice Award, instituted by BSE, NASSCOM

and Times Foundation.

The Bank won two Silver Corporate Collateral Awards for Best Corporate Ad in the
Print Media and Best Corporate Film on Corporate Social Responsibility at the Public
Relations Council of India Awards 2009.Canara bank helps you in planning to own a home
by buying a flat or building a house. The bank offers you loan for constructing a new house
or for doing additions or renovation in the existing house. Anyone from salaried individual to
self-employed persons can take the home loan by fulfilling certain criteria and documentation
for the entitlement of the loan. Even NRIs can apply for home loan offered by Canara Bank.
Canara bank has a wide array of network opened in the country to help people in banking. As
at December 2007 bank has network of 2641 branches spread all over India. Bank has over
1900 ATMs, covering 680 centers, over 1100 branches providing Internet and Mobile
Banking (IMB) services and more than1833 branches offering 'Anywhere Banking' services.
Now more than 1693 branches of the Bank offer advanced payment and settlement system
under Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT)

48 | P a g e

CANARA BANK PRODUCTS / SERVICES

Anywhere Banking:
Anywhere Banking is a technology-based, customer-friendly service designed to provide
greater convenience to our customers. With Anywhere Banking facility, once customer has an
account with any of the select branches, Customer can operate it From any other designated
branch across 85 cities.
FACILITIES
Individuals/ joint account holders (operated severally) maintaining Current/ 58/OD Accounts:
1. Withdrawal of cash 2. Remittance of cash 3. Transfer of funds 4. Balance enquiry 5. Issue
of mini statement 6. Depositing local cheques for collection 7. Purchase of Demand draft
Firms / Companies/ Other Bodies maintaining Current/ OD/OCC Accounts:
1. Transfer of funds between accounts; from one Anywhere Banking branch to Another
anywhere banking branch.
2. Depositing of local checks for collection and crediting to the respective accountant any
Anywhere Banking branch.
ELIGIBILITY:
Account holders should have maintained a minimum average balance of Rs.5, 000/ - in SB
account and Rs. 10, 000/ - In Current account in the last six months.
FEATURES:
1.Cash withdrawal up to Rs.50, OOO/ - per occasion.
2. Transactions permitted on production of identity card issued exclusively for Anywhere
banking facility.
3. Facilities of both intra-city and inter-city transactions.
4. HOME CLEARING - on line debit of checks drawn on our own A WB branches Within
the city / clearing zone.
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Tele services:
Access information about your account right from your home, office or from anywhere over
telephone, a round the clock teller answering the enquiries from anywhere presenting voice
information at any time.
You can make the following enquiries/requests over telephone:
Balance in the account including clear balance. Last five transactions in the account. Request
for check book. Request for pass sheet. Change in pass word. Fax on demand.
Note:
The facility is password protected to ensure secrecy. Ask your Branch Manager for details
and enroll today itself the service 'is absolutely lice of cost.

Personal Banking:
Credit Cards:
Canara Bank offers a credit card named CANCARD that provides both convenience
and quality services to the cardholders. It is a widely accepted card under the principal
membership of Visa International and Master card International.
The bank offers free insurance cover under the card. The bank has set a liberal credit
limit of minimum gross income of Rs 60,000 per annum to avail the card. There is no
maximum amount for accumulation and you earn bonus points on using the card
a) Cancard visa classic:

Liberal Card limit

Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing up of

the limit is at the sole discretion of Canara Bank.

Cash withdrawal facility at designated 450 branches all over India
Cash withdrawal at Canara Bank ATMs.
No Interest on cash withdrawal if paid by the due date. If not paid by the Due Date,

interest is charged from Due Date only and not from the Date of Cash withdrawal.
Opt for Revolving Payment system and pay only 5% of the billed amount and defer
the payment.

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No financial charges i.e. interest on other transactions subsequent to cash withdrawal

till the cash withdrawal is repaid

b) Cancard visa corporate :

Liberal Card limit

Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing

up of the limit is at the sole discretion of Canara Bank.

Cash withdrawal facility at designated 450 branches all over India
Cash withdrawal at Canara Bank ATMs.
No Interest on cash withdrawal if paid by the due date. If not paid by the Due
Date, interest is charged from Due Date only and not from the Date Of Cash

withdrawal.
Option for Revolving Payment system and pay only 5% of the billed amount and
defer the payment

c) Cancard Master Card:

Liberal Card limit

Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing

up of the limit is at the sole discretion of Canara Bank.

Cash withdrawal facility at designated 450 branches all over India.
Cash withdrawal at Canara Bank ATMs.
No Interest on cash withdrawal if paid by the due date. If not paid by the Due
Date, interest is charged from Due Date only and not from the Date of Cash

Withdrawal.
Option for Revolving Payment system and pay only 5% of the billed amount and

defer the payment.

No financial charges i.e. interest on other transactions subsequent to cash

withdrawal till the cash withdrawal is repaid.

Date of Billing: Last day of every calendar month

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Payment due date: 20th of every calendar month

d) Cancard visa international gold:

Liberal Card limit

Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing

up of the limit is at the sole discretion of Canara Bank.

Cash withdrawal facility at designated 450 branches all over India.
Cash withdrawal at Canara Bank ATMs.
No Interest on cash withdrawal if paid by the due date. If not paid by the Due
Date, interest is charged from Due Date only and not from the Date Of Cash

Withdrawal.
Option for Revolving Payment system and pay only 5% of the billed amount and
Defer the payment

Deposits:
Savings Bank Account:
Canara Bank savings account can be opened singly / jointly, as minor account, by noncorporate bodies, societies, associations, etc. The minimum balance required to open an
account is Rs 500/- without cheque book and Rs 1000/- with cheque book in Metro/Urban
whereas in Semi-urban/Rural Branches the account can be opened with Rs.100/- without
cheque book and Rs 500/- with cheque book. You have to fulfil documentation criteria laid
down by the bank for opening an account. Bank gives an interest which is compounded halfyearly on the minimum balance in the account betweenthe10th and the last day of the month.
Canara Saral Savings Account: An SB product designed for the common man to provide a basic banking facility as part of
the financial inclusion objective of RBI.
MINIMUM DEPOSIT The account can be maintained even with zero balance.
WITHDRAWAL/DEPOSIT:
1. Permitted through withdrawal order form, cheque and ATM cum Debit Card

52 | P a g e

2. Maximum 6 withdrawals per month including drawings through ATM free of charge. For
withdrawals exceeding 6 per month would be levied a service charge at the rate not exceeding
Rs.5/- per withdrawal at the discretion of the branch.
3. The minimum amount that may be deposited/ withdrawn IN CASH in an account is as
prescribed by the bank from time to time. Currently minimum deposit or withdrawal IN
CASH is Rs.10/-. In case of withdrawal through ATM, the minimum amount is Rs.100/(Currently)

Sb Gold Scheme (CB branches only) :i.

ii.
iii.
iv.

DD facility at 50% concession i.e. Re.1/- per Rs.1000/- or part thereof

Funds transfer under NEFT and RTGS (Can speed) at 50% concession
Free Debit Card (as per Bank's rules for issue of Debit Cards)
Issue of free Credit Card to the 1st account holder (for others as per existing rules of

v.
vi.
vii.

the
Bank
Waiver of demat account opening charges
Free Anywhere Banking (AWB) facility.
Sweep-in Sweep-out facility: Sweep-in into term deposit of amounts beyond
Rs.1,00,000/-

viii.
ix.
x.
xi.

at the request (one time) of the customer mentioning the tenor of

the term deposit.

Name printed cheque book
Free funds transfer facility through our Internet Banking
Free Telebanking facility.
No ledger folio charges

Current Account
Term Deposits:
- Fixed Deposit
- Kamadhenu Deposits
- Recurring Deposits
- Can flexi Deposits
Loans & Advances:
- Housing Loan
- Home Improvement
- Can carry (Consumer Durables)
- Can cash (Shares)
- Can mobile(vehicle)
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NRI:
- NRE (Non Resident External Rupee Account)
- NRO (Non Resident Ordinary Account)
- FCNR (Foreign Currency Non Resident Accounts -Banks)
- RFC Deposits.

International Banking Services:

Canara Bank entered fore arena in 1953 with the opening of its first Foreign Exchange
Department in Mumbai Today Canara Bank the 4th largest Bank in India catering to the cross
border trade & remittances and financing of foreign trade. We finance exports at pre-shipment
stage as well as post shipment stage, which can be availed either in foreign currency or Indian
Rupees.
In addition we facilitate for fainting. That is, discounting of deferred export
receivables on 'without recourse basis' from an overseas forfeiting agency. The Bank has been
the pioneer in financing of LC based International Trade transactions in India. The Bank not
only finance at customers option in foreign currency at pre-shipment and post- shipment
stages at LIB OR related rates but also finance the import leg in foreign currency where
imported inputs are required for exports. The Bank has the expertise in handling project
exports of goods and services. The Bank has an excellent worldwide correspondent
relationship and have the capability to handle any export, import, remittance and related
transactions anywhere in the world and in any currency.
Non fund based transactions like adding confirmations to LC, issuing inward and
outward Bid bonds & guarantees, establishing LCs for import into India, arranging buyer's
credit at attractive terms etc. are our forte. Canara Bank has a branch in London and holly
owned subside in Hong Kong. We have a joint venture with SBI at Moscow under the name
Commercial Bank of India LLC. We have recently opened a Representative Office at
Shanghai, People Republic of china. They are engaged in Trade finance and have expertise on
the Indian market scenario.

54 | P a g e

The Bank also manages 2 Exchange houses in the Gulf and arrangement with 20
Exchange Houses and 18 Banks for drawing on DDs from Gulf Countries on our
select branches thought out India. The Bank has 5 core dealing rooms located in Mumbai,
New Delhi, Calcutta, Chennai and Bangalore in India. We provide a whole range of services
and products like purchases and sale of 7 world currencies forward booking and other fore
hedging instrument like currency swaps.
Loans :Canara Bank offers wide variety of Loans Products to suit your requirements. Coupled with
convenience of networked branches/ ATMs and facility of E-channels like Internet and
Mobile Banking, Canara Bank brings banking at customers doorstep.
a. Home Loans :Canara bank helps you in planning to own a home or you want to build your home / buy a
flat. You name it and bank has offer for you whether you want to construct a new house
or you want to do additions in your existing house. Moreover you can take loan
for renovation of your house /flat, etc. Salaried individual, self-employed persons, running
your own business, etc., anyone can take home loan by fulfilling certain criteria for the
entitlement and the documentation formalities for the loan. Even NRIs can apply for home
loan.
.
b. Personal Loans :Canara bank has a range of personal loan to help you meeting the cost of various personal
needs. The various categories of personal loan are Can Mahila exclusive scheme for women,
Doctors Choice designed for medical practitioners to help them in meeting their professional
needs, Can Cash (Loan against Shares) you can take instant cash against shares/ debentures /
bonds / units, Can Budget loan scheme for the benefit of employees of Corporates, PSUs,
Government Departments, Institutions, etc., Can Pension loan scheme for senior citizens,
Teachers loan to meet their needs, Swarna loan (Gold loan) loan against gold jewellery /
ornaments, Can Rent loan for owners of the property to meet their business needs and / or
genuine personal needs, against rents receivable, Can Take loan for professionals working in
reputed information technology and biotechnology companies, Home improvement loan for
furnishing house / flat with household furniture items, air conditioners, etc.
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c. Education Loans :Canara bank offers education loan under Vidyasagar to needy and meritorious Indian
students. High school students can also avail education loan. Loan can be taken for job
oriented courses at degree level and advanced studies for post graduation for study in
abroad.
d. Car Loans :Canara Bank offers loan to buy your own luxury car. The bank provides loan upto 90% of the
on road price and there is no ceiling on the maximum loan amount. For used cars, which are
not older than 5 years, bank finance 75% of the agreed price or 75%of the value of the car, as
assessed by an automobile engineer or Rs.6 lakhs whichever is lower.

Financial Statement of Canara Bank

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Financial statements and reports are the tools which provide information of the firms
financial affairs. This information is required for financial analysis & decision making. It
assesses the financial status of organization which is prepared with help of accounting
principle. Financial statement has mainly as follow:

Balance sheet

Profit & loss account

Financial statement is prepared on basis of generally accepted accounting principle. These

area:
a)
b)
c)
d)
e)
f)

Business entity principle

Going concern principle.
Monetary principle.
Historical principle.
Realizations principle.
Accrual concept

Basic conventions under which financial statements prepared is:

Consistency
Conservativeness
Disclosure

Analysing of financial statements helps to know the financial health of the borrower,
which provides the detail of the liabilities and the assets of the applicant. It also helps to
study the trends in the financial matters of the company. It helps to valuate the assets of
the applicant company. It assists in decision making process relating to the future
activities.

Profit and Loss account:

Meaning:- profit and loss account is one of the essential document which shows the
summary of revenues, expenses and net income of the firm during the particular
financial period.

57 | P a g e

Functions of the Profit and Loss account:

It gives a concise summary of the firms revenue and expenses during the particular

period.
It measures the firms profitability.
It represents the activity of the firm.

Ratio Analysis:
Ratios are classified into four parts like:1. Liquidity ratios
2. Activity ratios
3. leverage ratios
4. profitability ratios
OBJECTIVES OF THE STUDY
To collect information of other Banks.
To educate the customers about facilities provided by Canara Bank.
To draw the comparative analysis of Canara BANK.
To identify the major attributes of customer satisfaction.
To study customer perception about Canara BANK.
To identify and study the various ways of ensuring customer Satisfaction adopted by
Canara BANK Vs other Banks.

RESEARCH METHODOLOGY

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Research is common refers to search for knowledge. It is the pursuit of truth with the help
of study, observation, composition and experiment. Research methodology is a systematic
way to solve the research problems. It helps in studying the various steps that are adopted
by the researcher to study there search problems along with the logic behind the It
describe mail what must be done, how will be done. What data will be needed and how
the data will be analyzed.
1. Research Objectives
Top mind awareness of consumers for banks offering various retail products.
Factors influencing their purchase decision.
To study the comparative influence of various mediums of advertisements in creating
Awareness amongst the consumers.
To find the immediate competitors in the minds of consumer for every retail product.
2.Sample Size
A random sample of 50 were administered with the questionnaire and responses collected.
3.Research Area
The research was carried out at Mulund, Thane and Dombivli regions in Mumbai
Descriptive Research
Descriptive research includes surveys and fact-finding enquires of different kinds. The
major purpose of descriptive research of the state of affairs as it exists at present. In social
science and business research, we quite often use the term Ex post facto research for
descriptive research studies. Descriptive research was conducted in order the study the
consumer perception about various banks offering retail products and the banks they
option for.
Sampling Procedure
This refers to the procedure by which the respondents should be chosen. In order to obtain
a representative sample, a probability sample of the population was drawn. Probability
59 | P a g e

sampling can be of the following types:- Simple random sample- Stratified random
sample.- Cluster (area) sample. In this case, simple random sampling was done.
Formation of questionnaire
Quite often the questionnaire is considered as the heart of a survey operation. Hence it
should be carefully constructed. In the words of good and Hatt, "In general, the word
questionnaire refers to a device for securing answers to questions by using a form which
the respondent fills in himself". All the questions in a questionnaire are framed with a
specific objective in mind and are placed in logical, sequential order. The questionnaire
framed for the purpose of the study consists of a limited number of questions placed in a
logical order. The questions were framed keeping in mind the educational and social
background of the companies dealers. The questions were both open and closed ended as
well as multiple choices.
4.Data Collection Tools
Data was collected using Questionnaires. The Questionnaire consisted of suitable
combination of Rating Scale, Ranking Scale and open ended Questions in the level of
importance.
5. Sources of Data
Primary source:
Questionnaires were administered to people with experience of any retail offering,
currently using or used in the past.
Secondary Sources
Data was collected from the various websites from the internet as well as magazine and
book.
RESPONDENT S PROFILE :
Data was collected from respondents across all age and income groups. Data relating to
age was collected. This segmentation helped us to gain insights into the perception
and preferences across all age groups. Based on the nature of retail banking products age
groups were identified and classified as follows:
1.ORGANISING THE DATA
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The data collected during data collection process are organized and presented in a
comprehensible sequence to make them more meaningful.
2.PRESENTATION OF DATA
After the data has been properly organized, it is ready for presentation. There are
different modes of presentation like tables, charts etc. The main objectives of presentation are
to put collected data into an easy readable form.
3.ANALYSIS OF DATA
After organizing and presenting the data, the researchers then have to proceed towards
conclusion by logical inferences. The raw data is then analyzed:
By bringing raw data to measured data.
Summarizing the data.
4.INTERPRETATION OF DATA
Interpretation means to bring out meaning of data or to convert more data into information.
From the analysis of data the various conclusions are find out on the basis of logical
inferences.
5.CLASSIFICATION OF DATA
If refers to the process of arranging data into homogenous classes. Subsequent to the
collection of data, the results were sorted out and arranged in different categories like Graph,
Table etc.

ANALYSIS
Q1. Which type of account you have in a bank?

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1.2; 10%

2.2; 19%
6.2; 53%
saving account

current account

2.2; 19%

Interpretation:

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canara saral saving account

fixed Deposit Account

During the survey it was found out that the 52% of the customers are interested in saving a/c
as it has a lucrative activity these days and 19% in Canara saral saving a/c. Only few of the
customers were interested in fixed deposit a/c & current a/c.

Q2. Which type of services prefers the most by you?

9%
10%

ATM

23%
Internet

Mobile Banking

59%
Core Banking services

Interpretation:
According to survey 58% customers of can prefer ATM service and 23% of customer can
prefer internet banking service. Customers mainly prefer this both services because of these

63 | P a g e

two are easy & fast. So, Rest 10 % and 9% customers can prefer mobile & core banking
service.

Q3. Which retail banking product have you availed?

9%
15%

Home Loan

Car Loan

16%

35%

Educational Loan

Personal Loan

Other specify

25%

Interpretation:
In this survey 35% of customer availed home loan. Also 25% of customer can availed car
loan & 16% for educational loan, this because of this three are major chunk of retail product.
So, rest 15% can availed personal & 9% for other product availed by customer
64 | P a g e

Q4. What type of credit card using from this?

10%

4%

15%

CANCARD VISA
CANCARD CORPORATE
CANCARD MASTERCARD

71%

Interpretation:

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CANCARD VISA
INTERNATIONAL GOLD

71% of the customers are use Cancard visa classic, because it gives no interest and no
financial charge facility. 15% of customer can use Canard visa corporate, 10%can prefer
Cancard MasterCard and only 4% can prefer Cancard visa international gold

Q5. How you aware about Canara bank product of them?

12%

3%
35%

23%
Word of mouth

Television

Newspaper/Magzines

27%

Interpretation:

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Radio

Hordings/Billboards

35% of customer can awareness the product through word of mouth & 27% can aware
through television & 23%can aware through newspaper and magazines. So this both can give
more information about product to customer. Also 12% can aware through radio & rest 3%
through billboards / hoardings.

Q6. Are you satisfied with Canara bank services?

9%

Yes

6%

No

Can't say

85%

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Interpretation:
In this survey 85% of customer can satisfied with Canara bank services because of Canara
can provide core services. Also 9% of customer cannot satisfied with services & rest, 6%
cannot decide anything.

Q7. Canara bank can provide better facility than other bank?

13%

51%
Yes

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36%

No

Can'tsay

Interpretation:
The above data can shows that 51% can say yes, that Canara bank can provide better facility
than other bank & 36% say no & 13% cannot say.

SWOT Analysis of Canara Bank

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STRENGTHS

WEEKNESS

Retail banking supermarket with the ability Efforts are concentrated more towards the
to cross-sell entire range of credit products.

urban consumers thus ignoring the rural

Innovative products

counterpart.

Technological superiority

Number and spread of branches is very

Wide distribution

low as compared to PSU banks. Excessive

High top of mind awareness due to focus on non-branch distribution channel

aggressive advertising

reducing the scope of personal interaction

Strong Credit controls

needed for the sale of retail products.

High Customer Service Standards

Economies of scale through growing
volumes.
24x7 service levels
OPPORTUNITY

THREAT

Changing consumer outlook towards loans Stiff competition in the housing loans
and related products

segment from HDFC, LIC Housing etc.

Rising consumer income levels

In the Credit card segment, competition

Increasing banking habits among Indian from Citibank, Stan Chart etc.
consumer.

Of late, lots of Non Banking Financial

Being No.1 in the auto finance segment Institutions have emerged and have eaten up
paves the way to consolidate its market the banks market share.
leadership across all the segments.

Educating

people

by

way

Rapid increase in the retail loan market size of advertisements might help competitors to
to the tune of 30 40 %

reap the benefits

Findings
1. It was found from the study that bank believes in quality service rather than quantity
of Service.
2.The officials employed are very much enthusiastic about their job.
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3.The officials try to make best relation with the customers.

4.There is separate counter for NRI services.
5.The limit of cash vault is Rs. 10, 00,000 for a day.
6.The registers and files are maintained on a daily basis.
7.The registers are maintained in a well organized manner.
8.The marketing strategy of the bank is very attractive.
9. The bank always tries to attract customers with Innovative offers.

Suggestions
Special training modules for managers on current Economic scenario
Extend Internet Banking to more branches and enable more transactions at ATMs
Increase Manpower (skilled)
Recruit more Marketing Managers
Lend adequate support to Marketing Managers
Information from new customers
Implement single window transaction
Youngsters at counters

Limitations
1.The study restricted to only one branch.
2. The time constraint was a limiting factor, as more time required carrying out study on
other aspects of the topic.
3. Due to secrecy it is difficult obtain actual facts and figures of advances of branches.

Conclusion

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The scenario is becoming highly competitive in every sphere of banking activity- more
so u n respect of retail lending. Processing time and interest rates are major influencing factor
for making purchase decision.
As per survey ICICI, Canara and HDFC are to major brand name considered for
housing, auto and personal loans. Awareness through television is the highest level followed
by newspapers. The future of banking is dependent on technology, marketing, logistics.
Banks have to prepare themselves for facing a soft interest regime.
New kind of management skills are required to manage the retail lending portfolio. True to
Infosys cult, bankers do need to understand that:
-

Growth comes from repeat business

Repeat business from relationships
Relationship from customers
Customers relationship based on trust
Trust emanates from customers faiths/beliefs and,
Lastly maintaining harmony with the environment.

QUESTIONNAIRE
Note :- ( please tick only one from multiple answers)
Q1) Which type of account you have in a bank?
a) SAVING ACCOUNT
b) CANSARAL SAVINGS ACCOUNT
c) FIXED DEPOSIT ACCOOUNT
d) CURRENT ACCOUNT
Q2) Which type of services prefers the most by you?
a) ATM SERVICE ......................
b) INTERNET BANKING ......................
c) MOBILE BANKING ......................
d) CORE BANKING ......................

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Q3) Which retail banking product have you availed?

a) HOUSINGLOAN
b) CARLOAN
c) EDUCATIONLOAN
d) PERSONAL LOAN
e) OTHER, PLZ SPECIFY
Q4) What type of credit card using from this?
a) CANCARD VISA CLASSIC
b) CANCARD VISA CORPORATE
c) CANCARD MASTERCARD
d) CANCARD VISA INTERNATIONAL GOLD
Q5) How you aware about Canara bank product of them?
a) TELEVISION
b) NEWSPAPERS & MAGAZINES
c) RADIO
d) WORD OF MOUTH
e) BILLBOARDS/HOARDINGS
Q6) Are you satisfied with Canara bank services?
a) Yes b) No c) Cant say Reason why................................
Q7) Canara bank can provide better facility than other bank?
a) Yes
b) No
c) Can`t Say
Can you give any opinion to us?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
........................
Would you suggest any improvement?
..........................................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
....................

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REFERENCES & BIBLIOGRAPHY :1.Professional Banker.

2.www.rbi.org
3.Economic times
4.www.canarabank.com
5.www.google.com
6.www.moneycontrol.com

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