5

PROJECT REPORT
ON
_NON FUND BASED ACTIVITIES OF BANK__

BACHELOR OF COMMERCE (BANKING & INSURANCE) SEMESTER V

(2017-2018)

SUBMITTED
IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE
AWARD OF DEGREE OF
B.Com (Banking & Insurance)

BY

AMRITA DEVANAND_PASWAN_
ROLL NO. -___56____

BIRLA COLLEGE OF ARTS, SCIENCE &COMMERCE

MURBAD ROAD KALYAN (W)
 CERTIFICATE

RLACOLLEGE OF ARTS, SCIENCE, & COMMERCE, KALYAN

(Conducted by Kalyan Citizens Education Society)
(Affiliated by University of Mumbai)

BACHELOR OF COMMERCE (BANKING& INSURANCE)

CERTIFICATE
This is to certify that AMRITA DEVANAND PASWAN OF T.Y B.COM
(BANKING & INSURANCE) Semester V (2017-2018) has successfully
complete the project on NON FUND BASED ACTIVITIES OF BANK under
the guidance of MS: RINKY RAJWANI

PROJECT SUPERVISOR: Anil Tiwari

COURSE CO-ORDINATOR: Mr. Anand Dhamadhikari

INTERNAL EXAMINER

EXTERNAL EXAMINER

PRINCIPAL

ii
 DECLARATION
I, AMRITA DEVANAND PASWAN student of T.Y B.COM (BANKING & INSURANCE)

semester V (2017-2018) hereby declare that I have completed the project on NON FUND

BASED ACTIVITIES OF THE BANKS. I further declare that the information imparted is

true and fair to the best of my knowledge.

SIGNATURE

Name: _AMRITA DEVANAND PASWAN

ROLL NO. ____56_______

iii
 ACKNOWLEDGEMENT

I hereby express my heartiest thanks to all sources who have contributed to

the making of this project. I oblige thanks to all who supported, provided their

valuable guidance and helped for the accomplishment of this project.

I am thankful to Mumbai University for giving me such a challenging task to

explore the urbanization which includes not only thinking and analyzing various

facts and updates about real work, our principal Dr. (Mr.) NARESH

CHANDRA and the course coordinatorfor having such wonderful course.

I am very much grateful to my project guide _RINKY RAJWANI_who in spite of

busy schedule spent valuable time to guide me and helped in completion of this

project.

I also extent my hearty thanks to all my family, friends and all the well-

wisher.

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 Project synopsis

BACKGROUND OF THE STUDY

The non- fund activities play a very important role in India as its helps to regulate the non-

fund activities in the country. The banks carry out the important functions of providing non

fund based service to the customer .These services are performed by the banks as an agent.

The following are the Non-fund based services provided by the India banks which helps the

growth of India.

1-TELE BANKING

2- INTERNET BANKING

3-MERCHANT BANKING

SIGNIFICANCE OF THE STUDY

Better turnaround time through timely processing of your documents

Facilitating faster payments

Lower cost

Excellent trade support

Arrangement of credit reports of overseas parties

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 RESEARCH PROBLEMS

While collecting the primary data majority of banks dont want to provide their expert

advice regarding the project.

OBJECTIVE OF THE STUDY

Rapid Industrial growth

Encouraging entrepreneur

Balanced regional development

SAMPLING MEHTOD

Method used for sampling is survey method. A questionnaire is generated from the
reviews and circulated to 30 candidates who have experience.

ANALYSIS DATA

Data taken from candidates is analyzed in the Microsoft excel

KEY FINDINGS

A large percentage of people think that services provided by the bank in non-fund based

service satisfy them.

Many have responded that private bank are more efficient in providing the non-fund based

service than public bank.

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 A large number of percentage indicate that steps taken by bank is to help in increasing the

productivity in term of return.

The social objectives of bank are to help in economic growth.

After the Post Liberalization many banks have encouraged trading activities to increase their

services.

Nowadays mobile banking play a vital role in the banking sector .It is one of the best way to

deal with the costumer.

Due to the IT sector all the banking sector has improved their work efficient.

SUGGESTIONS

TO INCREASE NON FUND BASED ACTIVITY IN COUNTRY WHICH LEADS TO

DEVELOPMENT AND GROWTH OF THE COUNTRY.

To find out the major problems faced by banks while providing non- fund based activities.

Lack of awareness among the customers regarding use of non-fund activity of bank.

To find how the banks resolve those problems faced in providing non-fund service to

customer.

1. Creating awareness among the customer by taking seminar.

2. By providing information to customers for their knowledge through website.

vii
 CONCLUSION

Banks as financial intermediaries are expected to provide basic financial services for

everyone. Banking, considered as mirror of economic growth, can contribute to economic

development in at least two ways: directly, by increasing balance sheet items, and indirectly,

through financing. In the global economy, the growing importance of banks is obvious, given

that in the context of accelerating the development of information systems and

communications, we are witnessing the emergence of global financial networks. Many

researchers argue that a sound and efficient banking system is significant in achieving

economic development. Thus, well functioning banks accelerate economic growth, while

poorly functioning banks are an obstacle to economic progress and aggravate poverty

Contents
1 Introduction: Meaning and definition ................................................................................ 1

1.1 Meaning ....................................................................................................................... 1

1.2 Features/Characteristics .............................................................................................. 2

1.3 Advantages and Disadvantages of Bank Overdraft..................................................... 6

Funds and growing importance .............................................................................................. 9

1.4 Key challenges .......................................................................................................... 10

1.5 Objective of the study ............................................................................................... 11

Chapter 2: Review of literature (5-10 Pages) .......................................................................... 11

2.1 Nayan (1985):- .......................................................................................................... 12

2.2 Aggarwal (2005):- .......................................................................................................... 12

2.3 Singh (1992):- ................................................................................................................ 12

viii
 2.4 Kaushik (1995):- ............................................................................................................ 13

2.5 Bansal (2010) :-.............................................................................................................. 14

2.6 Uppal (2010) :- ............................................................................................................... 14

2.7 Kumar (2002) ................................................................................................................. 15

2.8 Verghese (1983) ............................................................................................................. 16

2.9 Arora and Verma (2005) :- ............................................................................................ 17

Chapter 3: Research methodology (3-5 pages) ........................................................................ 18

3.1 Research design ......................................................................................................... 18

3.2 Sampling design ........................................................................................................ 18

3.2.1 Target population ............................................................................................... 18

3.2.2 Sampling frame .................................................................................................. 18

3.2.3 Period of study ................................................................................................... 18

3.3 Sample size................................................................................................................ 19

3.4 Data collection........................................................................................................... 19

3.5 Structure of questionnaire ......................................................................................... 19

3.6 Format of questionnaire designed ............................................................................. 20

3. Research ethics................................................................................................................. 24

4 Chapter 4: Data analysis .................................................................................................. 25

4.1 Average score................................................................................................................. 25

4.1.1 Testing of Hypothesis ............................................................................................ 26

4.2 Percentage analysis ................................................................................................... 27

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 4.3 Gender vise percentage analysis ............................................................................... 28

4.4 Descriptive statistics ................................................................................................ 30

4.2.2 Analysis of study variables ............................................................................................. 33

5 Chapter 5: Summary of findings ...................................................................................... 38

6 Chapter 6: Suggestions and conclusion ........................................................................... 40

7 Bibliography .................................................................................................................... 41

List of Tables

Table 4.1 Average score analysis....22

Table 4.2Average score analysis....23

Table 4.3Percentage analysis...................23

Table 4.4 Gender wise percentage analysis......25

Table 4.5 Gender wise percentage analysis......25

Table 4.6 Descriptive analysis.....26

Table 4.7Age wise average score analysis.......27

Table 4.8 Education qualification wise average score analysis...... 27

Table 4.9 Experience wise average score analysis...28

Table 4.10 Correlation analysis on gender..28

List of Pie-Diagram

Pie 4.2.2 1 Satisfactory ....29

Pie 4.2.2 2 Efficient..30

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Pie 4.2.2 3 Productivity....31

Pie 4.2.2 4 Social objective ....32

Pie 4.2.2 5 Liberalization.....31

Pie 4.2.2 6 Mobile banking..32

Pie 4.2.2 7 IT....32

Pie 4.2.2 8 Profitability....33

Pie 4.2.2 9 Reforms .34

List of figure

Fig 1

Percentage of noncore funds to total assets5

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1 Introduction: Meaning and definition

Meaning

Non-fund based facilities are such facilities extended by banks which do not involve outgo of

funds from the bank when the customer avails the facilities but may at a later date crystallize

into financial liability if the customer fails to honors the commitment made by availing these

facilities. Non-fund based facilities are generally extended in the form of Bank Guarantees,

Acceptances and Letters of Credit.

Financial, liberalization has highlighted competition among banks and other financial

institution. As a result public sector banks have not only diversified their fund based financial

service e.g. Mutual funds factoring, forfeiting etc. But also their non- fund based financial

service.

This would help them to increase their revenue while optimizing the use of funds would

help to spread their risk over variety of activities. The non- fund based financial service of the

public sector banks includes loan syndication, consultancy and advisory service, capital issue

management etc.

The public sector bank have marketing all the non- fund based financial service either

directly by starting merchant banking divine or by indirectly floating their subsidiary

companies or both . The paper emphasis on the analysis of non- fund based financial service

of public sector banks sectors in India.

THE NON-FUND BASED CREDIT FACILITIES ARE NATUR OF PORMISES MADE

BY BANKS IN FAVOUR OF A THIRD PARTY MONETARY COMPENSATION ON

BEHALF OF THEIR CLIENTS , WHERE THE LNDING BANK DOES NOT COMMIT

1
 ANY PHYSICAL OUTFLOW OF FUNFS . THE FUNDS POSITION OF THE LENDING

BANK REMAINS INACT.

(Ref:- http://www.chinatrustindia.com/index.php/corporate-banking/non-fund-based-

services)

Features/Characteristics

LETTERS OF CREDIT

Letter of credit is a legal document issued by a buyers bank that upon presentation of

required documents payment would be made. Usually confirmed by the seller's bank,

protection is given to the seller that payment will be made if the goods are shipped correctly,

following the conditions laid down when the LC is opened or based on subsequent

amendments and protection is given to the buyer that the goods will be shipped before

payment is made. The LC facility can be granted to the importers after assessing their

requirement/ credit worthiness/ financial strength and other parameters being to the

satisfaction of the Bank. China trust Commercial Bank can extend Import financing through

Letters of Credit, which are well accepted globally and are supported by a strong trade

finance set-up. We are direct members of SWIFT and have correspondent banking

arrangements with many banks worldwide.

Bank Guarantee is a contract to perform the promise or discharge the liability of a third

person in case of his default. China trust Commercial Bank sanctions Bank Guarantee limit to

facilitate issue of guarantees on behalf of its clients. Various types of guarantees offered are

financial, performance, bid bond, tenders, customs, etc. Our guarantees are accepted by all

government agencies including Customs, Excise, Insurance Companies, Shipping

Companies, all Capital Market Agencies such as NSE, BSE, ASE, CSE etc. and all major

corporates.

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We have a full-fledged trade finance set-up catering to all your trade related requirements,

which offers you the following advantages:

Better turnaround time through timely processing of your documents

Facilitating faster payments

Lower cost

Excellent trade support

Arrangement of credit reports of overseas parties

Specialized advice on international trade related issues as well as technical issues such as

Exchange Control requirements, RBI reporting, latest circulars and latest international

developments.

1. Applicant/Opener: It is generally the buyer of the goods

who gets the letter of credit issued by his banks in favors of the seller. The person on

whose behalf and under whose instruction the letter of credit is known as applicant/

opener of the credit.

2. Opening bank / issuing bank: The bank issuing the letter of credit. Parties to a letter of

Credit

3 Beneficiary: The seller of good in whose favors the letter of credit is issued.

4. Advising bank: Notification regarding issuing of letter of credit may be directly sent to the

beneficiary by the opening bank. .It is however, customer to advise the letter of credit through

3
sane other bank operating at the place/county of seller. The bank which advises the letter of credit

to the beneficiary is known as advising bank.

5. Confirming Bank: A letter of credit substitutes the credit worthiness of the buyer with that of

the issuing bank

. IT may sometime happen especially in import trade that the issuing bank itself is not widely

known in the exporters country and exporter is not prepared to rely on the L/C opened by that

bank. In such cases the opening bank may request other bank the exporter to add its

confirmation which amounts to an additional undertaking being given by that bank to the

beneficiary. The bank adding its confirmation is known as confirming bank. The confirming bank has

the same liabilities towards the beneficiary as that of opening bank.

The function of advising bank, confirmation bank and negotiating bank may be undertaken by a

single bank only.

LETTER OF CREDIT MEDCHANISM:

1. Issuing of credit

2. Negotiation of Document by beneficiary.

3. Settlement of Bill Drawn under letter of credit by the opened.

Guarantees

Co-acceptance Bill

4
 Corporate restructuring

Portfolio management

Hedging

NON -FUND PRODUCTS OFFERED BY BANK TO ITS CLIENTS ARE AS

FOLLOWS:

1. Letter of Credit.

2. Bank Guarantees.

3. LC Advising / Confirming Services

4. Banc assurance..

5. Solvency certificate.

6. Credit Reports.

7. ONE OF THE MOST IMPORTANT FUNCTION OF NON-FUND BASED IS MERCHANT

BANKING :

Non-fund based financial service of the public sector banks are covered under merchant banking

activities. Merchant banking service has been statutorily brought under the regulatory farm work

of the Securities and Exchange Board of India (SEBI) under the SEBI Act 1992. No person can

act as a merchant banker without obtaining a Certificate of Registration from SEBI .According to

SEBI ,a merchant banker is a person who is engaged in the business of issue management either

5
 by making arrangement regarding selling , buying or subscribing to securities as a manager ,

consultant advisor or rendering corporate advisory etc. .

Merchant banking service strengthens the economic development of a country as they act as

sources of funds and information for corporation. Considers the way Indian economy is

growing , the role of merchant banking service in India is indispensable .These financial

institution also act as corporate advisory bodies to help corporation rightly gets involved in

various financial activities .The need of merchant banking service in India arise from the fact

the high level industrialization is taking place in the country .

QUALITIES OF MERCHANT BANKER ARE AS FOLLOW :

1. Knowledge

2. Capital Market Facilities

3. Liaisoning ability

4. Integrity.

Advantages/Disadvantages/Benefits/Limitations

Advantages and Disadvantages of Bank Overdraft

A bank overdraft is a temporary facility extended by a bank to corporates and other clients

to withdraw funds from their account in excess of the balance. This facility is provided by the

bank for a fee and interest is charged on the excess amount that is withdrawn for the length of

the time. It is important to know the advantages and disadvantages of the bank

overdraft facility in order to use it effectively.

An overdraft facility allows the facility holder to withdraw money from the account despite

having no balance. There is usually a limit on the amount that can be overdrawn from the

6
account. The overdraft limit is usually set by the bank basis the amount of working capital

and credit worthiness of the facility taker.

ADVANTAGES OF BANK OVERDRAFT

HANDLES TIMING MISMATCH OF FLOW OF FUNDS

A bank overdraft is usually helpful for a business where it has cash flows moving in and out
many times during a month. In other words, if sales proceeds and purchases result in a flow
of money in and out many times during a week/month; an overdraft facility allows managing
cash flow gaps that might arise due to timing mismatch.

HELPS IN KEEPING GOOD TRACK RECORD

It helps to maintain a good payment history as any payment made via cheque does not bounce
due to insufficient funds, which may have been made against some receivable, which may
come a couple of days later.

TIMELY PAYMENTS
It also aids in ensuring that timely payments are made and no late payments penalties are
faced, as payments would be made even if there is no balance in the account.

LESS PAPERWORK
Overdraft facility is usually easy to avail compared to long term loans which may require more paperwork.

FLEXIBILITY
Overdraft facility is flexible in the nature that one may take it whenever required for
whatever amount (up to the limit allotted) and for even as less as one or two days.
THE BENEFIT IN INTEREST COST

7
Since the interest is calculated only on a number of funds utilized, there are great savings in
the interest cost when compared to a normal loan was taken on fixed interest rate. In other
loans, you have to pay interest even if you are not using the money. The meter of interest
starts with the payments you make but it stops instantly when there are receipts.

DISADVANTAGES OF BANK OVERDRAFT

HIGHER INTEREST RATES

Overdraft facility comes with a cost. The cost is usually higher than the other sources of
borrowing. Also, if one goes above or exceeds the overdraft limit, the charges thereby are
much higher.

THE RISK OF REDUCTION IN LIMIT

Overdraft facility is a temporary loan and undergoes regular revisit by the bank. Hence, it
runs a risk of a decrease in the limit or withdrawal of the limit. The withdrawal of limit may
happen usually when company financials may represent poor performance; hence, the facility
may be withdrawn largely when the company may require it the most.

RISK OF SEIZING

Bank overdraft facility may at times be secured against inventory or other collateral like

shares, life insurance policies etc. The company may run a risk of those assets being seized if

it fails to meet payments.

DEBTORS COLLECTION BECOMES LETHARGIC

At times, availability of overdraft facility may make the company less strict on the collection

of debtors payment. In other words, a company may not be too much on their feet to collect

payments from debtors, as immediate payment outflows can be managed

by overdraft facility.

8
Conclusion:

Overdraft is a temporary facility obtained by the companies to meet their ultra-short term

cash shortage/requirement. One needs to bear in mind that such facility comes with a high

cost and should be used as a stop-gap management of funds or as an emergency activity

rather than a routine funding activity. Higher dependence on overdraft for working capital

management indicates poor working capital management and a liquidity constraint faced by

the company. Only temporary working capital should be financed by bank overdraft. The

permanent working capital should be financed by long term loans having lower interest rates.

REF:-https://efinancemanagement.com/working-capital-financing/advantages-and-

disadvantages-of-bank-overdraft

Funds and growing importance

Noncore funding sources have always played an important funding role for banks; however,
in the last decade, reliance on them has increased.

Noncore funding sources include federal funds purchased, Federal Home Loan Bank (FHLB)
advances, subordinated notes and debentures, CDs of more than $100,000 (jumbo CDs) and
brokered deposits. Aside from a blip during the 2000-01 recession, reliance on these noncore
funds has increased steadily at banks of all sizes over the last decade. (See Figure )

As the financial services industry has evolved over the past 10 to 20 years, depositors have
had the opportunity to invest in the stock market, mutual funds and money market funds. As
such, there has been a shift in core deposits away from banks to these alternate investment
vehicles, which have potentially higher return. Banks, meanwhile, have experienced
tremendous growth in loans over the same period. To keep up, banks have turned to more
nontraditional noncore sources of funds.

As a percentage of assets, noncore funds are more important to large banks than community
banks. Still, the growth in noncore funding has been much faster at community banks.

Key challenges

ADMIST THE SIGNS OF PROGRESS THE INDIAN BANKING SECTOR HAS BEEN

FACING MULTIPLE CHALLENGE IN RECENR TIMES,FEW OF THEM ARE-

NON PERFORMING ASSESTS

PERCENT OF THE TOTAL LOANS IN THE SYSTEM

ECONOMIC GROWTH

GLOBALISATION

POLICY INTIATIVES

10
 USAGE OF TECHNOLOGY

Objective of the study

TO INCREASE NON FUND BASED ACTIVITY IN COUNTRY WHICH LEADS TO

DEVELOPMENT AND GROWTH OF THE COUNTRY.

Chapterisation scheme

This Black Book is all about bank auditing and it is majorly divided into 6 Chapters that is
given below

Introduction
Review of literature
Research methodology
Data analysis
Summary of findings
Suggestion and Conclusion

Chapter 2: Review of literature (5-10 Pages)

Banks play a significant role in financing the economic needs of the country. To compete
effectively in present day competitive world, banks have been permitted to undertake new
activities such as investment banking, securities trading, insurance business, etc. The number
of market players has increased as their entry barriers have erased. The researchers and
economists have recognized that the measurement of productivity and profitability in banking
is necessary to improve the financial soundness of banks. A large number of studies have
been conducted in the field of operational and financial performance of banks. There are
some brief review of some of these authors which are been presented down.

11
2.1 Nayan (1985):-

conducted a study on the performance evaluation of commercial banks and presented

a performance evaluation model on the basis of important quantifiable parameters of
performance. The main findings were that the present system of ranking the banks on the
basis of aggregate deposits failed to reflect their overall achievements. The existing system of
performance budgeting is not suitable at branch level. On the basis of all important and
quantifiable parameters of performance, an integrated performance index needs to be
developed for evaluating the performance of commercial banks.
From the above literature review we identify the variable is Quantifiable Paramaters
Q.1 Are the quantifiable Paramaters provided by banks satisfactory?

2.2 Aggarwal (2005):-

Measured the relative productivity of Public Sector Banks. Productivity of all the
existing twenty-seven Public Sector Banks for the year 2003 has been calculated. The
researcher used Data Envelopment Analysis technique to measure the productivity. The
researcher found five out of eight banks under State Bank Group and nine out of nineteen
Nationalized Banks to be efficient. Their inefficiency was due to excessive borrowings.
The researcher pointed out that these banks were not properly maintaining their income
from commission, income from exchange and income from borrowings.
From the above literature review we identify the variable is Efficient
Q.2 Do you think private banks are more efficient than public banks?

2.3 Singh (1992):-

Carried out a comprehensive study to analyze the trends in the productivity of the Indian
banking industry since nationalization of 14 major banks in 1969 till the year 1985. The
State Bank of India and its subsidiaries along with the banks nationalized in 1969 were
considered for analysis. He performed cross-sectional and inter-temporal analysis on the
basis of 17 indicators. The indicators were: deposit per employee; credit per employee;
business per employee: establishment expenses per employee; spread per employee;
deposit per branch; credit per branch; business per branch; total earnings per branch; total
expenditure per branch; total earnings as percentage of total credit; establishment
expenditure as percentage of total expenditure; establishment expenditure as percentage

12
of total earnings; volume of business per Rs. 100 of establishment expenses; and volume
of business per Rs. 100 of total expenditure. The results provided that all the banks under
study showed improvement in their productivity except that UCO Bank, which showed
decline in productivity from all angles. He suggested that banks should monitor the
productivity and its growth on the basis of key indicators identified by him. All banks
should create productivity cells. These cells should develop and implement productivity
improvement programmes. He further suggested that the information relating to
productivity should become a part of the annual reports of banks.
From the above literature review we identify the variable is productivity
Q.3 Do you think that the steps taken by bank to increase the productivity in terms of

returns satisfies?

2.4 Kaushik (1995):-

Studied the social objectives and profitability of public and private sector banks
during the period 1973 to 1991. He compared the public and private banks with the
help of various profitability and productivity indicators through ratios, average,
correlation, regression and factor analysis. He found that public sector banks were
having lower profitability as compared to private sector banks. Further, he found that
the various productivity indicators showed an increasing trend during the period of
study for all the banks though the increase was much higher in the case of private
sector banks. He concluded that the profitability of public sector banks showed a
declining trend due to social objectives not because of cost inefficiency and low
productivity. He suggested that productivity could be increased with the help of
innovative banking, improved technological and managerial knowledge, well
educated and trained manpower and infrastructural facilities.
From the above literature review we identify the variable is Social objectives
Q.4 How does the social objectives of banks help in economic growth?

13
2.5 Bansal (2010) :-

Studied the impact of Liberlization on productivity and profitability of public sector

banks in India. The study has been conducted on the basis of primary as well as

secondary data for the period 1996-07. The study concluded that the ability of banks

to face competition was dependent on their determined efforts at technological

upgradation and improvement in operational and managerial efficiency, improvement

in customer service, internal control and augmenting productivity and profitability.

The study found that public sector banks have to pay great attention to strategic

management, strategic planning and to greater specialization in the technical aspect of

lending and credit evaluation. It was recommended that public sector banks should

strengthen their project appraisal capabilities. In order to raise their productivity and

profitability, public sector banks should spell turnover strategies, income-oriented and

cost oriented strategies from time to time.

From the above literature review we identify the variable is Liberalization

Q.5 Do you think that post liberalization banks have encouraged trading activities?

2.6 Uppal (2010) :-

studied the extent of mobile banking in Indian banking industry during 2000-07. The

study concluded that among all e-channels, ATM is the most effective, while mobile

banking does not hold a strong position in public sector banks and old private sector

banks. In new private sector banks and foreign banks, mobile banking is good enough

with nearly 50 per cent average branches providing mobile banking services. Mobile

banking customers are also the highest in banks providing electronic services, which

have a positive impact on net profits and business per employee of these banks.

Among all, foreign banks are on the top position followed by new private sector

14
 banks in providing mobile banking services; and their efficiency is also much higher

as compared to other groups. The study also suggested some strategies to improve

mobile banking services

From the above literature review we identify the variable is mobile banking

Q.6 Have the mobile banking facilities provided by banks nowadays helped you in

easy work and saving time?

2.7 Kumar (2002)

analyzed the impact of information technology on growth and performance of Indian

banks in terms of profitability and productivity for the period ranging from 1995 to
2000. The researcher evaluated the perception of bank customers regarding the use of
modern technological services provided by the banks. For the purpose of study, banks
were divided into four groups. These groups are classified as: Group-I comprised of
three new fully computerized private sector banks providing online services (ICICI
Bank, HDFC Bank and Centurion Bank of Punjab, Group-II consisted of three fully
computerized private sector banks but providing partially online services (Bank of
Punjab, IndusInd Bank and IDBI Bank), Group-III included Nationalized Banks
partially computerized (Punjab National Bank, Oriental Bank of Commerce, and
Punjab & Sind Bank), and Group-IV comprised of partially computerized State Bank
of India and its subsidiaries ( State Bank of India, State Bank of Patiala and State
Bank of Bikaner & Jaipur). Ratio analysis has been used to calculate employee
productivity, branch productivity and financial productivity. The study evaluated that
almost on all accounts fully computerized banks with online service providing
facilities banks performed relatively better. This has also been supported by the
respondents who were found to be satisfied in the case of Group-I and Group-II
category rather than Group-III and Group-IV categories. The researcher suggested
that public sector banks should emphasize on providing computerization and IT

15
related customer services, and extending information technology in rural and semi-
urban sectors.

From the above literature review we identify the variable is information technology

Q.7 Has the impact of IT helped in boosting the performance of Indian banks?

2.8 Verghese (1983)

evaluated the profits and profitability of Indian commercial banks during the period
1970 to 1979. He measured the profitability of commercial banks in terms of gross
profit, net profit, operating margin, gross yield on assets, spread and spread ratios.
Trends of productivity in terms of average deposits per employee, salaries and wages
per unit of deposits and advances, share of establishment expenses in total current
operating expenses and net income per employee has also been calculated. The study
revealed that gross profits and net profits have shown an increasing trend while spread
and spread related ratios declined over the study period. Average assets per employee,
average deposits, advances per employee, salaries and wages per employee, and net
income per employee have shown an increasing trend while share of establishment
expenses in the current operating expenses declined during the study period. The
study analyzed an overall improvement in employees productivity but it varied from
year to year basis. The study found that the monetary policy measures like interest
rate changes, credit reserve ratios and statutory liquidity ratios have an impact on the
profits and profitability of banks.
From the above literature review we identify the variable is profits and profitability

Q.8 Do you think that the profit and profitability of private banks are more as

compare to public banks?

16
2.9 Arora and Verma (2005) :-

Studied the banking sector reforms in India and evaluated the performance of public
sector banks during the reforms period. The data of 27 public sector banks, i.e., 19
nationalized banks, and State Bank of India and its seven associates for the year 1992
has been taken. Banking sector reforms were studied in relation to Prudential Norms,
Capital Adequacy Measures, Structural Regulation, Deregulations of interest rates,
accounting and disclosure norms, HRD initiatives, asset liability management system
and risk management guidelines. Performance of public sector banks has been
evaluated on the basis of Financial Parameters, Operational Parameters, Profitability
Parameters and Productivity Parameters. The authors concluded that in order to
remove subjectivity in banking sector, major steps like Prudential Norms, Income
Recognition Provisioning should have been taken. The researchers suggested that to
correct the impact of directed investments on profitability reserve requirements should
be reduced.
From the above literature review we identify the variable is reforms
Q.9 Has the reforms of banking sector helped in developing the Indian economy?

17
 Chapter 3: Research methodology (3-5 pages)

This Chapter concentrates on the research methodology. The research design, sampling

design, data collection method, tools applied for the study geographical coverage and

Research Ethics are detailed.

3.1 Research design

The research design is defined by Fouche (2002) as the plan or blue print of the study. This

research is Qualitative research which allows the researcher to gather information and do an

in-depth exploration of issues, and therefore follows a less structured format with fewer

respondents than quantitative methods.

3.2 Sampling design

3.2.1 Target population

Total target population is 30 respondents; target area at Thane.

3.2.2 Sampling frame

Quota sampling was adopted by researcher. Quota sampling is where the researcher ensures

that certain groups of people, who are knowledgeable about the research problems, are

adequately represented in the research through the assignment of a fixed quota for each sub

group.

3.2.3 Period of study

The period of study was from April 2017 to September 2017 The study is mainly based on

primary data collected by Questioner made on the finding of various researches . The

secondary data were collected from various sources throughout the period of this study.

18
3.3 Sample size

Total sample = 30

Samples were collected from the area of Thane District

3.4 Data collection

This section discusses the techniques of gathering primary data for the testing of the research

propositions that were crafted in Chapter I and II. The choice of the data instruments depends

on the availability of facilities, time, costs, the degree of accuracy required, the expertise of

the researcher, and other resources associated with the gathering of the data.

The questionnaire was given to the respondent directly by the students and was collected later

as per respondents preference as to giving filling the preprinted form.

3.5 Structure of questionnaire

The structured questionnaire was divided into different sections as felt suitable. The first

section covers personal variables, which are independent based on the assumption that there

were measurable differences amount the levels with regard to the perception of dependent

variables. The second to study factors section of questionnaire covers the factors of study

with dependent variables viz:

19
3.6 Format of questionnaire designed

Title: ___________________________________________________
Researcher : ________________________________
Personal details

Respondents Name: _________________________________________

Gender: Male Female

Age Below 20 20-30 30-40 40-50 Above 50

Education Below graduate Graduate Post graduate Professional Others

Experience: Below 5 years 05-10 years 10-15 years 15-20 years Above 20 years

Study factor:

Q.1 Are the quantifiable Paramaters provided by banks satisfactory?

Highly yes Yes Cant say No Highly No

Q.2 Do you think private banks are more efficient than public banks?

Highly yes Yes Cant say no Highly No

Q.3 Do you think that the steps taken by bank to increase the productivity in terms of

returns satisfies you?

Highly yes Yes Cant say no Highly No

Q.4 How does the social objectives of banks help in economic growth?

Highly Agree Agree Neutral Disagree Highly disagree

Q.5 Do you think that post liberalization banks have encouraged trading activities?

Highly Agree Agree Neutral Disagree Highly disagree

Q.6 Have the mobile banking facilities provided by banks nowadays helped you in

easy work and saving time?

Highly Agree Agree Neutral Disagree Highly disagree

20
Q.7 Has the impact of IT helped in boosting the performance of Indian banks?

Highly Agree Agree Neutral Disagree Highly disagree

Q.8 Do you think that the profit and profitability of private banks are more as

compare to public banks?

Highly Agree Agree Neutral Disagree Highly disagree

Q.9 Has the reforms of banking sector helped in developing the Indian economy?

Highly Agree Agree Neutral Disagree Highly disagree

21
 3.FORMAT OF EXPERT ADVICE QUESTIONNAIRE DESIGNED :
NAME:

DEZIGNATION

ORGANIZATION

Q.1 What would you comment on all the non-fund based activities carried out by your bank?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q.2 You as a team leader what steps will you take to motivate your team members?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

22
Q.3What schemes are offered by your bank to boost up the investment in mutual fund for

customer?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q.4What steps would you take to improve customer satisfaction?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

23
Analytical Tools applied for the study
Data analysis gives meaning to the data that has been collected. More than ____ respondents

were given questionnaire. After verification as to completeness of collected questionnaire,

samples were finalized. The data corresponding to the values in the Likert Scale were entered

for each statement in the questionnaire. It was then checked for accuracy, through three

rounds of visual and hardcopy inspections. The MS Excel data analysis tool was used for

statistical data analysis. The statistical analytical tools applied include:

The Average score analysis is mainly used in any study is to assess the level of

opinion/awareness/satisfaction of the different category of respondents on the various aspects

relating to the study. First the opinion of the respondents are assessed through a scaling

technique and then based on the consolidated opinion of the respondents, the average score is

calculated.

It is the simple and common method to represent raw streams of data as a percentage for

better understanding of collected data. Percentages are used in making comparison between

two or more variables to find the efficacy of each variable.

3. Research ethics

Research ethics refer to the "appropriate" behavior of the researcher in relation to the norms

of the society. It relates to the three parties involved in this research: the researcher, the

respondents and Research supervisor. Researcher assured Confidentiality to the respondents

and secrecy will be maintained. The researcher, on her/his part maintained objectivity,

presented the true research findings.

24
4 Chapter 4: Data analysis

Here,
V1:
V2:
V3:
V4:
V5:
V6:
V7:
V8:
V9:
And
HY: Highly yes
Y: Yes
C: Cant say
N: No
HN: Highly no

4.1 Average score

The average score analysis is mainly used in any study is to assess the level of opinion/
awareness/satisfaction of the different category of respondents on the various aspects relating
to the study. First the opinions of the respondents are assessed through a scaling technique
and then based on the opinion of the respondents, the average score is calculated.
In this study the opinion of the respondents are assessed through a five point scaling
technique and then based on the opinion of respondents the average score is calculated and
the result are presented in different tables.

25
4.1.1 Testing of Hypothesis

Null Hypothesis (H0): Gender of the respondent does not influence their perception as to
non-fund activity of bank.
Alternative Hypothesis (H1): Gender of the respondent does influence their perception as to
non-fund activity of bank.
The above testing of hypothesis can be done using the following table

Table 1 Average score analysis

Total response
Variable
HY=5 Y=4 C=3 N=2 HN=1 Total
8 17 3 2 0 30
V1

10 15 4 1 0 30
V2

4 15 4 7 0 30
V3

9 17 3 1 0 30
V4

7 11 8 4 0 30
V5

16 14 0 0 0 30
V6

8 20 2 0 0 30
V7

8 10 12 0 0 30
V8

12 14 4 0 0 30
V9

SOURCE: PRIMARY DATA

26
 Table 2 Average score analysis

Overall Average Score Analysis

Variable Highly Agree Neutral Disagree Highly total Grant Grant Avera Low Lower Middle High Quotient Scale remark
Agree score score score disagree score Mac Min ge score HL HL score
score score score score Score

V01 40 68 9 4 0 121 150 30 2.42 1 2.5 3.75 5

V02 50 60 12 2 0 124 150 30 2.48 1 2.5 3.75 5
V03 20 60 12 14 0 106 150 30 2.12 1 2.5 3.75 5
V04 45 68 9 2 0 124 150 30 2.48 1 2.5 3.75 5
V05 35 44 24 8 0 111 150 30 2.22 1 2.5 3.75 5
V06 80 56 0 0 0 136 150 30 2.72 1 2.5 3.75 5
V07 40 80 6 0 0 126 150 30 2.52 1 2.5 3.75 5
V08 40 40 36 0 0 116 150 30 2.32 1 2.5 3.75 5
V09 60 56 12 0 0 128 150 30 2.56 1 2.5 3.75 5

SOURCE: PRIMARY DATA

4.2 Percentage analysis

The percentage analysis/ descriptive analysis describes the distribution of respondents in each

classification as it is expressed in percentage it facilitates comparison

Table 3 PERCENTAGE ANALYSIS

Overall Percentage Analysis

Variable 5 4 3 2 1 total "5"% "4"% "3"% "2"% "1"% total%
V01 8 17 3 2 0 30 27% 57% 10% 7% 0% 100%
V02 10 15 4 1 0 30 33% 50% 13% 3% 0% 100%
V03 4 15 4 7 0 30 13% 50% 13% 23% 0% 100%
V04 9 17 3 1 0 30 30% 57% 10% 3% 0% 100%
V05 7 11 8 4 0 30 23% 37% 27% 13% 0% 100%
V06 16 14 0 0 0 30 53% 47% 0% 0% 0% 100%
V07 8 20 2 0 0 30 27% 67% 7% 0% 0% 100%
V08 8 10 12 0 0 30 27% 33% 40% 0% 0% 100%
V09 12 14 4 0 0 30 40% 47% 13% 0% 0% 100%

SOURCE: PRIMARY DATA

With reference to variable V1, it is found that 27% of the respondents highly yes quantifiable

Parameters provided by banks satisfactory respondents are 7% highly no with it.

With reference to variable V2, it is found that 50% respondents think yes that private banks

are more efficient than public banks and 3% of the respondents disagreed with the same.

27
 With reference to variable V3, it is found that 50% respondents think yes that the steps

taken by bank to increase the productivity in terms of returns satisfies and 23%

disagree.

With reference to variable V4, it is found that 57% of respondents thinks yes that the social

objectives of banks help in economic growth and 3% say no to it.

With reference to variable V5, it is found that 23% of respondents think highly yes that

post liberalization banks have encouraged trading activities and 13% disagree with it.

With reference to variable V6, it is found that 53% say yes that the mobile banking

facilities provided by banks nowadays helped you in easy work and saving time and

0% disagree.

With reference to variable V7, it is found that 67% thinks yes that the impact of IT helped

in boosting the performance of Indian banks and 0% disagree with it.

With reference to variable V8, it is found that 27% responds highly yes that the profit and

profitability of private banks are more as compare to public banks and 0% disagree

with it.

With reference to variable V9, it is found that 47% of respondents think yes that the

reforms of banking sector helped in developing the Indian economy and 0% disagree

with it.

4.3 Gender vise percentage analysis

Gender vise percentage analysis, it is percentage analysis of total respondents but it is

segmented between males and females. We approach 30 respondents in which 14 responses
are taken from males and 16 responses from females.

28
 Table 4 Gender vise percentage analysis

Genderwise Percentage Analysis

Var code Total Female Male Total Female Male Total
PG1 54 3 2 15 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1
V01 7 19 1 2 1 3 10 0 2 1 4 9 1 0 0 30 10.00% 33.33% 0.00% 6.67% 3.33% 13.33% 30.00% 3.33% 0.00% 0.00% 100.00%
V02 12 14 2 2 0 6 8 1 1 0 6 6 1 1 0 30 20.00% 26.67% 3.33% 3.33% 0.00% 20.00% 20.00% 3.33% 3.33% 0.00% 100.00%
V03 4 13 8 5 0 3 6 4 3 0 1 7 4 2 0 30 10.00% 20.00% 13.33% 10.00% 0.00% 3.33% 23.33% 13.33% 6.67% 0.00% 100.00%
V04 6 14 7 3 0 4 7 3 2 0 2 7 4 1 0 30 13.33% 23.33% 10.00% 6.67% 0.00% 6.67% 23.33% 13.33% 3.33% 0.00% 100.00%
V05 7 9 8 5 1 3 5 5 2 1 4 4 3 3 0 30 10.00% 16.67% 16.67% 6.67% 3.33% 13.33% 13.33% 10.00% 10.00% 0.00% 100.00%
V06 12 12 4 2 0 6 6 2 2 0 6 6 2 0 0 30 20.00% 20.00% 6.67% 6.67% 0.00% 20.00% 20.00% 6.67% 0.00% 0.00% 100.00%
V07 8 20 2 0 0 5 10 1 0 0 3 10 1 0 0 30 16.67% 33.33% 3.33% 0.00% 0.00% 10.00% 33.33% 3.33% 0.00% 0.00% 100.00%
V08 5 7 15 2 1 2 6 7 1 0 3 1 8 1 1 30 6.67% 20.00% 23.33% 3.33% 0.00% 10.00% 3.33% 26.67% 3.33% 3.33% 100.00%
V09 15 12 3 0 0 7 7 2 0 0 8 5 1 0 0 30 23.33% 23.33% 6.67% 0.00% 0.00% 26.67% 16.67% 3.33% 0.00% 0.00% 100.00%

Source: Primary data

Table 5 Gender vise percentage analysis

Genderwise Average score analysis

Average Average
Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 score of score of Total
Female 1 male 2
PG1 1 2 2 2 2 2 1 1 2 1 1 1 2 2 2 2 1 1 1 1 2 1 1 1 2 1 2 2 1 1 16 14 30
V01 5 4 5 4 4 4 4 5 5 5 4 3 4 4 2 2 3 4 3 5 5 4 4 4 5 4 4 4 4 4 4.06 4.00 4.03
V02 4 5 5 4 4 4 5 5 5 4 3 4 3 2 4 4 4 3 4 4 4 5 5 5 3 4 4 5 5 4 4.25 4.00 4.13
V03 4 4 4 5 3 5 4 5 5 4 4 4 4 4 3 2 2 3 4 2 2 4 4 4 3 2 2 4 4 2 3.50 3.57 3.53
V04 5 5 5 5 4 5 4 4 5 5 4 3 3 2 4 4 4 4 3 5 4 4 4 4 5 4 4 4 4 4 4.06 4.21 4.13
V05 4 4 4 3 3 3 3 3 5 4 4 3 4 4 4 3 4 4 3 4 2 5 5 5 5 2 2 5 5 2 3.75 3.64 3.70
V06 5 4 5 5 5 5 4 5 5 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 4.50 4.57 4.53
V07 5 4 4 4 4 4 5 4 5 4 4 4 4 4 3 4 3 4 4 5 5 5 5 5 4 4 4 4 4 4 4.31 4.07 4.20
V08 5 5 4 3 4 5 5 5 4 3 3 3 4 4 4 3 4 3 3 4 4 5 5 5 4 3 3 3 3 3 3.88 3.86 3.87
V09 4 5 4 5 3 5 5 5 3 5 4 5 3 4 4 5 3 4 4 4 4 5 5 5 5 4 4 4 4 4 4.38 4.14 4.27

Source: Primary data

From variable V1, we can find that females feel that the quantifiable Paramaters
provided by banks satisfactory more than male
From the variable V2, we can find that female think that private banks are more
efficient than public banks more than male.
From the variable V3, we can found that females think that the steps taken by bank to
increase the productivity in terms of returns satisfies more than male.
From the variable V4, we can found male think that the social objectives of banks
help in economic growth more than females.
From the variable V5, we can found that females think that post liberalization banks
have encouraged trading activities more than male.

29
 From the variable V6, we found that male feels that the mobile banking facilities

provided by banks nowadays helped us in easy work and saving time more than

female.

From the variable V7, we can found that females feel that the impact of IT helped in
boosting the performance of Indian banks more than male
From the variable V8, we can found that females think that the profit and
profitability of private banks are more as compare to public banks more than male
From the variable V9, we can found that female thinks that reforms of banking
sector helped in developing the Indian economy more than male

4.4 Descriptive statistics

Descriptive statistics are statistics that quantitatively describe or summarize features of a

collection of information. Descriptive statistics is the term given to the analysis of data that
helps describe, show or summarize data in a meaning full way such that, for example,
patterns might emerge from the data.
Table 6 Descriptive statistics

Descriptive Statistics
Variable Mean Median Mode Standard Sample Kurtosis Skewness Range Minimu Maximu Sum Count Confidence
Deviation Variance m m Level(95.0%)
V01 4.03 4.00 4.00 0.81 0.65 1.08 -0.90 4.00 1.00 5.00 121.00 30.00 0.29
V02 4.13 4.00 4.00 0.78 0.60 0.52 -0.72 4.00 1.00 5.00 124.00 30.00 0.28
V03 3.53 4.00 4.00 1.01 1.02 -0.94 -0.42 4.00 1.00 5.00 106.00 30.00 0.36
V04 4.13 4.00 4.00 0.73 0.53 1.25 -0.78 4.00 1.00 5.00 124.00 30.00 0.26
V05 3.70 4.00 4.00 0.99 0.98 -0.87 -0.26 4.00 1.00 5.00 111.00 30.00 0.35
V06 4.53 5.00 5.00 0.51 0.26 -2.13 -0.14 4.00 1.00 5.00 136.00 30.00 0.18
V07 4.20 4.00 4.00 0.55 0.30 0.10 0.11 4.00 1.00 5.00 126.00 30.00 0.20
V08 3.87 4.00 3.00 0.82 0.67 -1.46 0.26 4.00 1.00 5.00 116.00 30.00 0.29
V09 4.27 4.00 4.00 0.69 0.48 -0.77 -0.41 4.00 1.00 5.00 128.00 30.00 0.25

Source: Primary data

Variable V3 has highest mean that is 0.36

Variable V6 has lowest mean that is 0.18.
All the variables have same average they all are in between 0.25 to 0.35 that means they
all are nearby each other.

30
 TABLE 7 AGEWISE AVERAGE SCORE ANALYSIS

Agewise Average score analysis

Age class Age class Age class Age class Age class
Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total
1 2 3 4 5
PA2 2 2 3 2 3 3 2 2 2 1 2 3 4 2 3 3 2 3 2 1 2 1 1 2 2 2 2 3 3 1 5 15 9 1 0 30
V01 5 4 5 4 4 4 4 5 5 5 4 3 4 4 2 2 3 4 3 5 5 4 4 4 5 4 4 4 4 4 4.40 4.20 3.56 4.00 #DIV/0! 4.03
V02 4 5 5 4 4 4 5 5 5 4 3 4 3 2 4 4 4 3 4 4 4 5 5 5 3 4 4 5 5 4 4.40 4.07 4.22 3.00 #DIV/0! 4.13
V03 4 4 4 5 3 5 4 5 5 4 4 4 4 4 3 2 2 3 4 2 2 4 4 4 3 2 2 4 4 2 3.20 3.60 3.56 4.00 #DIV/0! 3.53
V04 5 5 5 5 4 5 4 4 5 5 4 3 3 2 4 4 4 4 3 5 4 4 4 4 5 4 4 4 4 4 4.40 4.13 4.11 3.00 #DIV/0! 4.13
V05 4 4 4 3 3 3 3 3 5 4 4 3 4 4 4 3 4 4 3 4 2 5 5 5 5 2 2 5 5 2 4.00 3.53 3.78 4.00 #DIV/0! 3.70
V06 5 4 5 5 5 5 4 5 5 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 4.60 4.53 4.56 4.00 #DIV/0! 4.53
V07 5 4 4 4 4 4 5 4 5 4 4 4 4 4 3 4 3 4 4 5 5 5 5 5 4 4 4 4 4 4 4.60 4.27 3.89 4.00 #DIV/0! 4.20
V08 5 5 4 3 4 5 5 5 4 3 3 3 4 4 4 3 4 3 3 4 4 5 5 5 4 3 3 3 3 3 4.00 4.00 3.56 4.00 #DIV/0! 3.87
V09 4 5 4 5 3 5 5 5 3 5 4 5 3 4 4 5 3 4 4 4 4 5 5 5 5 4 4 4 4 4 4.60 4.27 4.22 3.00 #DIV/0! 4.27

Source: Primary data

Variable V6 has highest qualification wise score that is 4.53

Variable V3 has lowest qualification wise score mean that is 3.53
All the variables have same average they all are in between 3.87to 4.27 that means they
all are nearby each other.

TABLE 8 EDUCATION QUALIFICATIONWISE AVERAGE SCORE ANALYSE

Educational Qualificationwise Average score analysis
Age class Age class Age class Age class Age class
Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total
1 2 3 4 5
PQ3 2 1 3 2 5 3 1 1 2 1 2 3 3 3 3 2 2 2 2 1 2 1 1 1 2 1 1 2 2 1 11 12 6 0 1 30
V01 5 4 5 4 4 4 4 5 5 5 4 3 4 4 2 2 3 4 3 5 5 4 4 4 5 4 4 4 4 4 4.27 4.00 3.67 #DIV/0! 4.00 4.03
V02 4 5 5 4 4 4 5 5 5 4 3 4 3 2 4 4 4 3 4 4 4 5 5 5 3 4 4 5 5 4 4.55 4.00 3.67 #DIV/0! 4.00 4.13
V03 4 4 4 5 3 5 4 5 5 4 4 4 4 4 3 2 2 3 4 2 2 4 4 4 3 2 2 4 4 2 3.36 3.50 4.00 #DIV/0! 3.00 3.53
V04 5 5 5 5 4 5 4 4 5 5 4 3 3 2 4 4 4 4 3 5 4 4 4 4 5 4 4 4 4 4 4.27 4.25 3.67 #DIV/0! 4.00 4.13
V05 4 4 4 3 3 3 3 3 5 4 4 3 4 4 4 3 4 4 3 4 2 5 5 5 5 2 2 5 5 2 3.55 3.92 3.67 #DIV/0! 3.00 3.70
V06 5 4 5 5 5 5 4 5 5 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 4.64 4.50 4.33 #DIV/0! 5.00 4.53
V07 5 4 4 4 4 4 5 4 5 4 4 4 4 4 3 4 3 4 4 5 5 5 5 5 4 4 4 4 4 4 4.45 4.17 3.83 #DIV/0! 4.00 4.20
V08 5 5 4 3 4 5 5 5 4 3 3 3 4 4 4 3 4 3 3 4 4 5 5 5 4 3 3 3 3 3 4.18 3.50 4.00 #DIV/0! 4.00 3.87
V09 4 5 4 5 3 5 5 5 3 5 4 5 3 4 4 5 3 4 4 4 4 5 5 5 5 4 4 4 4 4 4.64 4.08 4.17 #DIV/0! 3.00 4.27

Source: Primary data

Variable V6 has highest qualification wise score that is 4.53

Variable V3 has lowest qualification wise score mean that is 3.53
All the variables have same average they all are in between 3.87to 4.27 that means they
all are nearby each other.

31
 TABLE 9 EXPERIENCE WISE AVERAGE SCORE ANALYSES
Educational Qualificationwise Average score analysis
Age class Age class Age class Age class Age class
Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total
1 2 3 4 5
PE4 5 1 4 2 5 2 1 1 1 1 2 3 3 2 2 3 2 1 1 1 2 1 1 1 3 1 1 3 3 1 14 7 6 1 2 30
V01 5 4 5 4 4 4 4 5 5 5 4 3 4 4 2 2 3 4 3 5 5 4 4 4 5 4 4 4 4 4 4.21 3.71 3.67 5.00 4.50 4.03
V02 4 5 5 4 4 4 5 5 5 4 3 4 3 2 4 4 4 3 4 4 4 5 5 5 3 4 4 5 5 4 4.43 3.57 4.00 5.00 4.00 4.13
V03 4 4 4 5 3 5 4 5 5 4 4 4 4 4 3 2 2 3 4 2 2 4 4 4 3 2 2 4 4 2 3.50 3.57 3.50 4.00 3.50 3.53
V04 5 5 5 5 4 5 4 4 5 5 4 3 3 2 4 4 4 4 3 5 4 4 4 4 5 4 4 4 4 4 4.21 4.00 3.83 5.00 4.50 4.13
V05 4 4 4 3 3 3 3 3 5 4 4 3 4 4 4 3 4 4 3 4 2 5 5 5 5 2 2 5 5 2 3.64 3.43 4.17 4.00 3.50 3.70
V06 5 4 5 5 5 5 4 5 5 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 4.57 4.29 4.50 5.00 5.00 4.53
V07 5 4 4 4 4 4 5 4 5 4 4 4 4 4 3 4 3 4 4 5 5 5 5 5 4 4 4 4 4 4 4.43 3.86 4.00 4.00 4.50 4.20
V08 5 5 4 3 4 5 5 5 4 3 3 3 4 4 4 3 4 3 3 4 4 5 5 5 4 3 3 3 3 3 4.00 3.86 3.33 4.00 4.50 3.87
V09 4 5 4 5 3 5 5 5 3 5 4 5 3 4 4 5 3 4 4 4 4 5 5 5 5 4 4 4 4 4 4.43 4.14 4.33 4.00 3.50 4.27

Source: Primary data

Variable V6 has highest Experience wise score that is 4.53

Variable V3 has lowest Experience wise score that is 3.53

All the variables have same average they all are in between 3.87 to 4.27 that means they all

are nearby each other.

TABLE 10 CORRELATION ANALYSIS ON GENDER

Correlation Analysis based on Gender
Var code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Correlation
PG1 1 2 2 2 2 2 1 1 2 1 1 1 2 2 2 2 1 1 1 1 2 1 1 1 2 1 2 2 1 1 coefficient
V01 5 4 5 4 4 4 4 5 5 5 4 3 4 4 2 2 3 4 3 5 5 4 4 4 5 4 4 4 4 4 -0.04
V02 4 5 5 4 4 4 5 5 5 4 3 4 3 2 4 4 4 3 4 4 4 5 5 5 3 4 4 5 5 4 -0.16
V03 4 4 4 5 3 5 4 5 5 4 4 4 4 4 3 2 2 3 4 2 2 4 4 4 3 2 2 4 4 2 0.04
V04 5 5 5 5 4 5 4 4 5 5 4 3 3 2 4 4 4 4 3 5 4 4 4 4 5 4 4 4 4 4 0.11
V05 4 4 4 3 3 3 3 3 5 4 4 3 4 4 4 3 4 4 3 4 2 5 5 5 5 2 2 5 5 2 -0.06
V06 5 4 5 5 5 5 4 5 5 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 0.07
V07 5 4 4 4 4 4 5 4 5 4 4 4 4 4 3 4 3 4 4 5 5 5 5 5 4 4 4 4 4 4 -0.22
V08 5 5 4 3 4 5 5 5 4 3 3 3 4 4 4 3 4 3 3 4 4 5 5 5 4 3 3 3 3 3 -0.01
V09 4 5 4 5 3 5 5 5 3 5 4 5 3 4 4 5 3 4 4 4 4 5 5 5 5 4 4 4 4 4 -0.17

Source: Primary data

Variable V4 has highest correlation coefficient that is 0.11

Variable V1 has lowest correlation coefficient that is -0.04
All the variables have same average they all are in between 0.11 to -0.17 that correlation
coefficient they all are nearby each other.

32
 4.2.2 Analysis of study variables

V1: Are the quantifiable Parameters provided by banks satisfactory?

From the findings we can summarize that 27% responses are yes and 57%responses are
highly agree.

V2: Do you think private banks are more efficient than public banks?

33
 V3: Do you think that the steps taken by banks to increase the productivity in terms of

returns satisfies you?

13%
23%

1
13% 2
3
50%
4

From the findings we can summarize that 50% responses are yes and 13% responses are
highly agree.

V4: How does the social objectives of banks help in economic growth?

4
3%

3
10%

2 Series1
57%

1
30%

0%
20%
40%
60%
80%
100%

34
From the findings we can summarize that 57 % responses are yes and 30% responses are
highly agree.

V5: Do you think that post liberalization banks have encouraged trading activities?

13%
23%
1
2
27% 3
4

37%

From the findings we can summarize that 37 % responses are yes and 27% responses are
highly agree.

V6: Have the mobile banking facilities provided by banks nowadays helped you in

easy work and saving time?

53%
47%

Series1

0%
0%
1
2
3
4

35
From the findings we can summarize that 53 % responses are yes and 47% responses are
highly agree.

V7: Has the impact of IT helped in boosting the performance of Indian banks?

70%

60%

50%

40%
67%
30% Series1
20%
27%
10%
0% 7%
1 0%
2
3
4

From the findings we can summarize that 67% responses are yes and 27% responses are cant
say .

V8: Do you think that the profit and profitability of private banks are more as

compare to

public banks?
0%

27%
1
40%
2
3
4

33%
36
From the findings we can summarize that 27% responses are yes and 40% responses are
cant say.

V9: Has the reforms of banking sector helped in developing the Indian economy?

60%
47%
40%
40%

20% Series1
13%

0% 0%
1 Series1
2
3
4

From the findings we can summarize that 47% responses are yes and 13% responses are cant
say no.

37
5 Chapter 5: Summary of findings

1. SATISFACTORY

The study shows that more than 27% of the respondents feel that the quantifiable Parameters

provided by banks satisfactory to them.

2. EFFICIENT

With respect to the study conducted , more than 50% respondents feel that private banks are

more efficient than public banks.

3. PRODUCTIVITY

With reference to the study50% respondents think that the steps taken by bank to

increase the productivity in terms of returns satisfies to them.

4. SOCIAL OBJCTIVES.

Considering the data collected from the study, 57% of respondents feel that the social

objectives of banks help in economic growth.

5. LIBERALIZATION

It is found that 23% of respondents think that post liberalization banks have encouraged

trading activities in the country.

6. MOBILE BANKING.

With reference to the study 53% respondents feel that the mobile banking facilities

provided by banks nowadays helped you in easy work and saving time.

7. IT.

The study shows that 67% thinks yes that the impact of IT helped in boosting the

performance of Indian banks.

8. PROFITABILITY.

27% responds that the profit and profitability of private banks are more as compare

to public banks.

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9. REFORMS

The study shows that more than 47% of respondents think that the reforms of banking

sector helped in developing the Indian economy .

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6 Chapter 6: Suggestions and conclusion

TO INCREASE NON FUND BASED ACTIVITY IN COUNTRY WHICH LEADS TO

DEVELOPMENT AND GROWTH OF THE COUNTRY.

Objective 1:- To find out the major problems faced by banks while providing

non- fund based act ivies.

Lack of awareness among the customers regarding use of non-fund activity of bank.

Objective 2 :- To find how the banks resolve those problems faced in providing

non-fund service to customer.

1. Creating awareness among the customer by taking seminar.

2. By providing information to customers for their knowledge through website.

The Modern Banking Function is Non fund based function. These functions of a

bank are those in which bank extend various service to their customer or add their

commitments to certain transaction undertaken by their clients and charges their

fees/ commissions for the services rendered by them/ their commitments added to

the transaction undertaken by the clients. The activities popularly known as Non -

Fund facilities provided by banks. The major Non - fund based facilities that are

considered as a part of regular credit facilities are Letter of Credit and Bank

Guarantee . As a part of their Non-fund based function bank allow Letter of Credit

and Bank Guarantee facilities for their customer to meet their requirements.

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 Thus, we conclude that the Letter of Credit and Bank guarantee comes in a

plethora of confusing forms NDGISES. It is understood in different way in different

parts of the world .But once the basic are understood. It is wonderfully adaptable

and uniquely user friendly tool.

2 Bibliography

[3.1]. en.wikipedia.org/wiki/Commercial bank

[3.2]. en.wikipedia.org/wiki/Cooperative banking

[3.3] www.preservearticles.com/201012291875/indigenous-bankers.html

[3.4].www.banknetindia.com/banking/boverview.htm

[3.5]. www.banknetindia.com/banking/boverview.htm

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[3.6]. www.ibef.org

REF:-https://efinancemanagement.com/working-capital-financing/advantages-and-

disadvantages-of-bank-overdraft

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