Komal RM 2

We like to humbly acknowledge the contributions made by several persons
without whose valuable support, this Project could not have taken the
present shape.
We should first of all like to thank our patron, Dr. RATNESH SINHA
Director, MBA. Now we would also like to thank our teacher and guide Mr.
NIRMAL SIR, Mr. AMIT SIR, Mr. BRAJESH SIR, Mr. SUMAN SIR and
Mrs. SWETA MAM and all our faculty members without whose timely
support and guidance this project on the subject of Comparative Study
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS
on Services of Public Sector and Private Sector Banks would not

have been a successful venture.
In this moment of deep thought and reflection, We pay humble salute to
our parents who have taken pains unknown and unperceivable day and
night to bring us up and polish our future to attain the desired goal.
How can our librarian be forgotten, who has helped us by providing books
on subject. Our departments fourth grade employee Mr. JHAJI is also
deserving candidate of our gratitude that they have extended from time to
time in the department.
PREFACE
Someone has rightly said that practical experience is for better and closer
to the real world then mere theoretical exposure. The practical experience
helps the students view the real world closely, which in turn widely
influences their perceptions and argument their understanding of the real
situation.
Research work constitutes the backbone of any

management education program. A management student has to do research
work quite frequently during his entire span.
The research work entitle COMPARATIVE STUDY ON

SERVICES OF PUBLIC SECTOR AND PRIVATE SECTOR
BANKS aims to analyze various services provided by private sector
banks and public sector banks. For this purpose Bhagalpur city have been
chosen.
(1)
INTRODUCTION OF THE STUDY
(2)
INDIAN BANKING SYSTEM

2.1 FUNCTIONS OF BANK
2.2 PRODUCTS/SERVICES OFFERED BY BANK
(3)
OBJECTIVES OF THE STUDY
(4)
REVIEW OF LITERATURE
(5) RESEARCH METHODOLOGY

5.1 SAMPLE PLAN
5.2 LIMITATIONS OF STUDY

(6)
DATA ANALYSIS AND ITS INTERPRETATION
(7)
FINDINGS
(8) SUGGESTIONS AND RECOMMEDATIONS

(9)
CONCLUSION
(10) APPENDICES
1. INTRODUCTION OF THE
STUDY
The world of banking has assumed a new dimension at dawn of the 21st century with the
advent of tech banking, thereby lending the industry a stamp of universality. In general,
banking may be classified as retail and corporate banking. Retail banking, which is designed
to meet the requirement of individual customers and encourage their savings, includes
payment of utility bills, consumer loans, credit cards, checking account and the like.
Corporate banking, on the other hand, caters to the need of corporate customers like bills
discounting, opening letters of credit, managing cash, etc.
Metamorphic changes took place in the Indian financial system during the eighties and
nineties consequent upon deregulation and liberalization of economic policies of the
government. India began shaping up its economy and earmarked ambitious plan for economic
growth. Consequently, a sea change in money and capital markets took place. Application of
marketing concept in the banking sector was introduced to enhance the customer satisfaction
the policy of privatization of banking services aims at encouraging the competition in
banking sector and introduction of financial services. Consequently, services such as Demat,
Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to
the needs of public. An important agenda for every banker today is greater operational
efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious:
customer delight.
The introduction to the marketing concept to banking sectors can be traced back to American
Banking Association Conference of 1958. Banks marketing can be defined as the part of
management activity, which seems to direct the flow of banking services profitability to the
customers. The marketing concept basically requires that there should be thorough
understanding of customer need and to learn about market it operates in. Further the market is
segmented so as to understand the requirement of the customer at a profit to the banks.
DEFINITION OF BANK
The Oxford dictionary defines the Bank as
An establishment for the custody of money, which it pays out, on a customers
order.
According to Whitehead
A Bank is defined as an institution which collects surplus funds from the public,
safeguards them, and makes them available to the true owner when required and also lends
sums be their true owners to those who are in need of funds and can provide security.
Banking Company in India has been defined in the Banking Companies act 1949,
One which transacts the business of banking which means the accepting, for the
purpose of lending or investment of the deposits of money from the public, repayable on
demand, or otherwise and withdraw able be cheque, draft, order or otherwise.
The banking system is an integral subsystem of the financial system. It represents an
important channel of collecting small savings form the households and lending it to the
corporate sector. The Indian banking system has Reserve Bank of India (RBI) as the apex
body for all matters relating to the banking system. It is the central Bank of India. It is also
known as the Banker To All Other Banks.
EVOLUTION OF INDIAN BANKING
Ancient banking system of India constituted of indigenous bankers. They have been carrying
on their age-old banking operations in different parts of the country under different names.
The modern age of banking constitutes the fundamental basis of economic growth. The term
Bank is being used since long time but there is no clear conception regarding its beginning.
According to the viewpoint, in good old days. Italian money leaders were known asB
anchi because they kept a special type of table to transact their business.
IMPORTANCE OF BANKS
Today banks have become a part and parcel of Kotak Bank's life. There was a time when
dwellers of the city alone could enjoy their services. Now banks offer access to even a
common man and their activities extend to areas hitherto untouched. Banks cater to the needs
of agriculturalists, industrialists, traders and to all the other sections of the society. In modern
age, the banking constitutes the fundamental basis of economic growth. Thus, they accelerate
the economic growth of a country and steer the wheels of the economy towards its goals of
self reliance in all fields. It naturally arouses Kotak Bank's interest in knowing more about
the Bank and the various men and the activities connected with it.
2. INDIAN BANKING SYSTEM

"The success of the economic reforms is therefore all to see and the driving force of these
reforms is the banking sector".
P. Chidam Baram
Union Finance Minister P. Chidambaram strongly believes that the country's banking
sector has been one of the driving forces in the process of economic reforms.
Banking system occupies an important place a nation's economy. A banking institution
is indispensable in a modern society. In plays a pivotal role in the economic
development of a country.
Thus, economic development of a country depends upon success of banking
industry and success of banking Industry is determined to a large extent by now well
then needs of its customers have been understood and satisfied.
.
Reserve Bank of India

The Banking system is an integral sub-system of the financial system. It represents an
important channel of collecting small savings from the households and lending it to the
corporate sector.
The Indian banking system has The Reserve Bank of India (RBI) as the apex body from all
matters relating to the banking system. It is the Central Bank of India and act as the banker
to all other banks.
Functions of RBI:
Currency issuing authority
Banker to the government.
Banker to other Bank.
Framing of monetary policy.
Exchange control.
Custodian to foreign exchange and gold reserves.
Development activities.
Research and development in the banking sector.
Organizational Structure of Banks in India:

In India banks are classified in various categories according to differ rent
criteria. The following charts indicate the banking structure:
Reserve Bank of
Co-operative Banks
Commercial Banks
Nationalized
Agricultural Credit
Private
Development Banks
Short-term creditLong-term credit
Urban Credit
EXIM
Industrial
Agricultural
CLASSIFICATION OF BANKS
On the basis of Ownership
PUBLIC SECTOR BANKS
Nationalised banks or public banks dominate banking System in India. The nationalisation of
banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major
objective behind nationalisation was to spread banking infrastructure in rural areas and make
available cheap finance to Indian farmers. Before 1969, State Bank of India (SBI) was the
only public sector bank in India. Despite the entry of many new domestic and foreign private
banks since liberalization, public sector banks continue to dominate the commercial banking
industry.
PRIVATE SECTOR BANKS
Private sector banking in India received a flip in 1994 when Reserve Bank of India
encouraged setting up of private banks as part of its policy of liberalisation of the Indian
Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst
the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a
bank in the private sector. Private Banks have played a major role in the development of
Indian banking industry. They have made banking more efficient and customer friendly. In
the process they have jolted public sector banks out of complacency and forced them to
become more competitive. India has a better banking system in place of other developing
countries.
CO-OPERATIVE BANKS
These are those banks that are jointly run by a group of individuals. Each individual has an
equal share in these banks. Its shareholders manage the affairs of the bank.
2.1) According to Function

COMMERCIAL BANKS
These are the banks that do banking business to earn profit. These banks make loans for short
to business and in the process create money. Credit creation is the main function of these
banks.
FOREIGN BANKS
These are those banks that are incorporated by foreign company. They have set up their
branches in India. These banks have their head offices in foreign countries. Their principle
function is to make credit arrangement or the export and the import of the country and these
banks deals in foreign exchange.
INDUSTRIAL BANKS
Industrial banks are those banks that offer long term and medium term loan to the industries
and also work for their development. These banks help industries in sale of their shares,
debentures and bonds. They give loan to the industries for the purchase of land and
machinery.
AGRICULTURAL BANKS
Agricultural banks are those banks that give credit to agricultural sector of the economy.
SAVING BANKS
The principle function of these banks is to collect small savings across the country and put
them to the productive use. In India department of post office functions a savings banks.
CENTRAL BANK
Central Bank is the apex bank of the banking system of the country. It issues currency notes
and acts a banker's bank. Economic stability is the principle function of this bank. In short, it
regulates and controls the banking system of the country. RBI is the Central Bank of India.
STRUCTURE OF BANKING SYSTEM

Different countries of the world have different types of banking systems. However,
commercial banking had grown under all these banking systems. To understand the structure
of banking system, let us take up various types of banking systems one by one. These types
are:
(1) UNIT BANKING

Unit Banking originated in the United State of America. It grew in the United States
of America.
An independent unit bank is a corporation that operates one office and that is not related to
other banks through either ownership or control.
(2) BRANCH BANKING:

This the most popular and important banking system. In branch banking, a bank has a large
network of branches scattered all over the country. Branch banking developed in England.
Subsequently most of the countries of the world adopted the system. In terms of branches, the
State Bank of India has emerged as one of the largest banks in the world. Under the system
branches can operate without keeping large idle cash reserves. Branch Banking tends to bring
homogeneity in the prevailing Interest Rates. The choice of securities and investments is
larger.
With the growth of large scale business it is no wonder that the trend is almost every country
towards the branch banking i.e. big banks with a network of branches all over the country.
The Bank of America has now more than 500 branches in the state of California itself.
(3) CHAIN BANKING:

Under the system there is pooling of resources. Chain banking overcomes certain limitations
of unit banking. But the system suffers from certain limitations of its own. There may be a
lack of co-ordination, proper control etc. The system is inflexible.
(4) GROUP BANKING:
It is similar to Chain Banking, the difference being that under Group Banking two or more
banks are brought under the control of the same management through a Holding Company.
Both the systems aim at gaining the advantages of large scale operations. The banks are able
to pool their resources in case of emergency or when large amount of cash is required to meet
the loan requirements of the customer.
(5) CORRESPONDENT BANKING:
Under Correspondent banking, small banks serving local communities hold deposits with
joint banks serving in big cities. This kind of banking is prevalent in U.S.A. The
correspondent banks perform two important services of outstation cheque clearing and loan
participation for the respondent banks while they benefit for the deposit funds of respondent
banks.
PRIMARY FUNCTIONS:
1) Accepting of Deposits: A bank accepts deposits from the public. People can deposit their
cash balances in either of the following accounts to their convenience:a. Fixed or Time Deposit Account: Cash is deposited in this account for a fixed period.
The depositor gets receipts for the amount deposited. It is called Fixed Deposit
Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of
interest and the period of deposit. This receipt is not transferable. If the depositor
stands in need of the amount before the expiry of fixed period, he can withdraw the
same after paying the discount to the bank.
b. Savings Account: This type of deposit suits to those who just want to keep their
small savings in a bank and might need to withdraw them occasionally. Banks provide
a certain rate of interest on the minimum balance kept by the depositor during the
month.
c. Current Account: This type of account is kept by the businessman who are required
to withdraw money every new and then. Banks do not pay any interest on this
account. Any sum or any number of withdrawals can be presented by such an account
holder.
2) Advancing of Loans: The bank advances money in any one of the following ways.
a. Overdraft Facilities: Customers of good trading are allowed to overdraw from their
current account. But they have to pay interest on extra amount they have withdrawn.
Overdrafts are allowed to provide temporary accommodation since the extra amount
withdrawn is payable within a short period.
b.
c. Money at Call: It is the money lent for a very short period varying from 1 to 14 days.
Such advances are usually made to other banks and financial institutions only. Money
at call ensures liquidity. In the Interbank market it enables bank to make adjustment
according to their liquidity requirements.
d. Loans: Loans are granted by the banks on securities which can be easily disposed off
in the market. When the bank has satisfied itself regarding the soundness of the party,
a loan is advanced.
e. Cash Credit: The Debtor is allowed to withdraw a certain amount on a given
security. The debtor withdraws the amount within this limit, interest is charged by the
bank on the amount actually withdrawn.
f. Discounting Bill of Exchange: It is another method of making advances by the

banks. Under this method, bank give advance to their clients on the basis of their bills
of exchange before the maturity of such bills.
g. Investment in Government Securities: Purchasing of government securities by the
banks tantamount to advancing loans by them to the Government. Banks prefer to buy
government securities as these are considered to be the safest investment. For
example : Indira Vikas Patra : It enables the banks to meet requirement of statutory
liquidity ratio (SLR)
3) Credit Creation: One of the main functions of banks these days is to create credit. Banks
create credit by giving more loans than their cash reserves. Banks are able to create credit
because the demand deposits i.e. a claim against the bank is accepted by the public in
settlement of their debts. In this process the bank creates money. For this reason Prof. Sayers
has called bank the manufactures of money.
4) Cheque system of Payment of Funds :A cheque, a negotiable instrument, which in fact is
a bill of exchange, drawn upon a banker, is the most popular credit instrument used by the
client to make payments. Cheque system is the main credit instrument in the banking world.
Although a cheque is not a legal tender money, they serves as a medium of exchange in a
limited way as it is a negotiable instrument.
SECONDARY FUNCTIONS:
Besides the above primary functions, banks also perform many secondary functions such as
agency functions, general utility and social functions.
A) Agency Functions
Banks act as agents to their customers in different ways :i) Collection and Payment of Credit and Other Instruments: The Commercial banks collect
and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On behalf of
their customers and also make payments of income tax, fees, insurance premium etc. on
behalf of the customers
ii) Purchase and Sale of Securities : The modern commercial banks also undertake the
purchase and sale of various securities like shares, stocks, bonds units and debentures etc. On
behalf of the customers, banks do not give any advice regarding the suitability or otherwise of
a security but simply perform the functions of a broker.
iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their
customers on their advice. Sometimes banks also undertake income tax services on behalf of
the customers.
iv) Remittance of Funds : The Commercial banks remit funds on behalf of clients from one
place to another through cheques, drafts, mail transfers etc.
v) Representation and Correspondence : Sometimes commercial banks acts as
representatives or correspondents of the clients especially in handling various applications.
For instance, passports and travel tickets, booking of vehicles, plots etc.
vi) Billion Trading : In many countries, the commercial banks trade is billions like gold and
silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and Allahabad Bank have been
allowed import of gold which has been put under open general licensed category.
vii) Purchase and Sale of Foreign Exchange : Banks buy and sell foreign exchange,
promoting international trade. This function is mainly discharged by foreign Exchange
Banks.
viii) Letter of References : Banks also give information about economic position of their
customers to domestic and foreign traders and vice versa
B) GENERAL UTILITY SERVICES

In addition to agency services, banks render many more utility services to the
public. These services are :i)Locker Facilities : Banks provide locker facilities to their customers. People can keep their
valuables or important documents in these lockers. Their annual rent is very nominal
ii) Issuing letters of credit : Bankers in a way by issuing letters of credit certify the credit
worthiness of the customers. Letters of credit are very popular in foreign trade.
iii) Acting as Underwriters : Banks also underwrite the securities issued by the Government
and Corporate bodies for a commission. The name of bank as an underwriter encouraged
investors to have faith in the security.
iv) Help in Transportation of Goods: Big businessmen or industrialists after consigning
goods to their retailers send the Railway Receipt (Consignment Note) to the bank.
v) Issuing of gift cheques: Certain banks issue gift cheques of various denominations, e.g.
Some Indian banks issue gift cheques f the denominations of Rs. 21, 31, 51 and 101 etc. They
are generally issued free of charge.
vi) Dealing in Foreign Exchange: Major branches of commercial banks also transact
business of foreign exchange. Commercial banks are the main authorized dealers of foreign
exchange in India.
vii) Merchant banking Services: Commercial banks also render merchant banking services
to the customers. They help in availing loans from non-banking financial institutions.
Public Sector Banks
Reserve Bank of India - Central Bank

Bank of India
Dena Bank
IDBI Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
United Bank of India
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Indian Overseas Bank
Syndicate Bank
Union Bank of India
Vijaya Bank
Punjab & Sind Bank
Private Banks
Axis Bank
Bank of Rajasthan
Catholic Syrian Bank
City Union Bank
Dhanalakshmi Bank
Federal Bank
Jammu & Kashmir Bank
Tamil Nadu Mercantile Bank
Yes Bank
ICICI Bank
HDFC Bank
PB BANK
HSBC BANK
ABN AMRO
DEUTSCHE BANK
2.2) PRODUCTS/SERVICES OFFERED BY BANK

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. These bills are
assembled in the bank and the amount is paid to the bank by the card holder totally or by
installments. 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 SBI and Bank of Baroda.
India at present has about 3 million credit cards in circulation.
2) Debit Cards: Debit Card is a prepaid or pay now card with some storedvalue. Debit
Cards quickly debit or subtract money from ones savings account, or if one were taking out
cash.
When A CUSTOMER makes a purchase, he enters this number on the shops
PIN pad. When the card is swiped through the electronic terminal, it dials the acquiring bank
system either Master Card or Visa that validates the PIN and finds out from the issuing
bank whether to accept or decline the transaction. The customer never overspread because the
amount spent is debited immediately from the customers account. So, for the debit card to
work, one must already have the money in the account to cover the transaction. There is no
grace period for a debit card purchase.
The major limitation of Debit Card is that currently only some 30004000 shops country wide accepts it.
3) Automatic Teller Machine: The introduction of ATMs has given the customers the
facility of round the clock banking. 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. 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 withdraw or deposit funds, check account balances, transfer funds and check statement
information.
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
chequring system uses the network services to issue and process payment that emulates real
world chequing. The payer issue a digital cheques to the payee ant the entire transactions are
done through internet. Electronic version of cheques are issued, received and processed
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.
Electronic Funds Transfer (EFT): Many modern banks have computerised their cheque
handling process with computer networks and other electronic equipments. These banks are
dispensing with the use of paper cheques. 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 in different 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 7, 1996, in India.
6) Telebanking: Telebanking 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.
5)
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. The potential
of mobile banking is limitless and is expected to be a big success.
According to this system, customer can access account details on mobile using
the Short Messaging System (SMS) technology 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.
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.
6)
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.
ICICI bank was the first one to offer Internet Banking in India.
Financial Transaction on the Internet:
Electronic Cash: Companies are developing electronic replicas of all existing payment
system: cash, cheque, credit cards and coins.
Automatic Payments: Utility companies, loans payments, and other businesses use on
automatic payment system with bills paid through direct withdrawal from a bank account.
Direct Deposits: Earnings (or Government payments) automatically deposited into bank
accounts, saving time, effort and money.
Stored Value Cards: Prepaid cards for telephone service, transit fares, highway tolls,
laundry service, library fees and school lunches.
Point of Sale transactions: Acceptance of ATM/Cheque at retail stores and restaurants for
payment of goods and services. This system has made functioning of the stock Market very
smooth and efficient.
7) Cyber Banking: It refers to banking through online services. Banks with web site Cyber
branches allowed customers to check balances, pay bills, transfer funds, and apply for loans
on the Internet.
8) Demat: Demat is short for de-materialisation of shares. In short, Demat is a process where
at the customers request the physical stock is converted into electronic entries in the
depository system.
3. OBJECTIVES OF THE STUDY

This study has been conducted with a variety of important objectives in mind. The following
provides us with the chief objectives that have tried to achieve through the study. The extent
to which these objectives have been met could judged from the conclusions and suggestions,
which appear in the later of this study.
The Chief Objectives of this study are:

1. To find the bank sector that is largely availed by the customer.
2. To study the factors the factors influencing the choice of a bank for availing services.
3. To find and compare the satisfaction level of customers in public sector as well as in
private sectors bank.
4. To study the problem faced by customer.
5. To get suggestions for improvement or change in the services of public
and private sector banks.
6. To study what do people expect in the new era of banking
7. To study whether the customers are satisfied with their service

8. To know about the Customer preferences
9. To give Suggestions to improve the services
4. REVIEW OF LITERATURE
The banking sector in India has made remarkable progress since the economic reforms in
1991. New private sector banks have brought the necessary competition into the industry and
spearheaded the changes towards higher utilization of technology, improved customer service
and innovative products. Customers are now becoming increasingly conscious of their rights
and are demanding more than ever before.
The recent trends show that most banks are shifting from a product-centric model to a
customer-centric model as customer satisfaction has become one of the major determinants
of business growth. In this context, prioritization of preferences and close monitoring of
customer satisfaction have become essential for banks. Keeping these in mind, an attempt has
been made in this study to analyze the factors that are essential in influencing the investment
decision of the customers of the public sector banks.
Secondly, this study also suggests some measures to formulate marketing strategies to lure
customers towards banks
5. RESEARCH METHODOLOGY
Research is an art of scientific investigation. In other word research is a scientific and
systematic search for pertinent information on a specific topic. The logic behind taking
research methodology into consideration is that one can have knowledge about the method
and procedure adopted for achievement of objectives of the project. With the adoption of this
others can evaluate the results also. Its main aim is to keep the researchers on the right track.
The methodology adopted for studying the objectives was surveying the saving account
holders of Bhagalpur District. So keeping in view the nature of requirements of the study to
collect all the relevant information regarding the comparison of saving account of state bank
of India with other banks, direct personal interview method with structured questionnaire was
adopted for the collection of primary data.
Secondary data has been collected through the various magazines and newspapers and by
surfing on Internet. And the guide in the organization was consulted at many times.
SAMPLE DESIGN:-A sample design is a definite plan for obtaining a sample from a given
population. It refers to the techniques or the procedure the researcher would adopt in
selecting items for the sample. Sample design may as well lay down the number of items to
be included in the sample i.e. the size of the sample. Sample design is determined before data
are collected. Here we select the population as sample in our sample design. The selected
respondents should be as representatives of the total population.
POPULATION:- The persons holding saving account related to business class of Bhagalpur
District were taken into consideration.
DATA COLLECTION
Data was collected by using main two methods i.e primary data and secondary data
PRIMARY DATA
Primary data is the data which is used or collected for first time and it is not
used by anyone in the past. There are number of sources of primary data
from which the information can be collected.
QUESTIONNAIRE:-This method of data collection is quite popular. Here in our research

we set 27 simple questions and request the respondents to answer these questions with correct
information.
RESPONDENTS:-Respondents helps in creation of more accurate idea about our research.

We personally meet the respondents inside and outside the banks.
SECONDARY DATA
Secondary data is the data which is available in readymade form and which is already used by
people for some purposes. There may be various sources of secondary data such asnewspapers, magazines, journals, books, reports, documents and other published information.
BANKS ANNUAL REPORTS:-Banks issues there annual reports to get the people informed
with the profitability and growth of the bank. These annual reports helps us a lot to get the
latest data and other related information for our research. It tells us about the increase or
decrease in profits and other facilities.
JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS :-We also take into
consideration the journals and publications issued by the bank at different times. we come to
know about the Branches, ATM, locations and other useful information.
MANUALS AND BROACHERS OF DIFFERENT BANKS:-We take the help of bank
staff and other people who gives us deep information and data which may not be available at
anywhere. They gives us there full cooperation.
INTERNET:-We also take into consideration the internet facility with which we collect lot
of latest information.
5.1) SAMPLE PLAN:

SAMPLING UNIT:- STATE Bank of INDIA, Branch in BHAGALPUR city. Due to nature
of study, we also visited various different banks ICICI, HDFC, PUNJAB NATIONAL BANK
etc. of Bhagalpur District.
SAMPLING TECHNIQUE:- Stratified convenient sampling.
All the saving account holders were taken into consideration. Research was conducted on
clear assumptions that the respondents would give frank and fair answers in a pragmatic way
and without any bias.
SAMPLING DESCRIPTION:- In order to understand the nature and characteristics of

various respondents in this study, the information was collected and analyzed according to
their socio economic background which included the characteristic of their respondents like
education, age marital status and monthly income. This description shows that respondents
included in this survey belong to different backgrounds and this inturn increase the scope of
the study.
Analysis & Interpretation: From the above study we find that nobody is below
20 age and 20% respondents are between 20-30 age group, 50% respondents are between 3040 age group, 20% respondents is between 40-50 age group and 10% respondents are
between 50-60 age group.
Analysis: From the above result we come to know that out of 100, 70 respondents are
male and 30 are female which is 70% and 30% respectively.
Interpretation: From the above data we conclude that most of our
respondents are male.
MARITAL STATUS
Analysis: From the above study we find that out of 100%, 33% respondents are
married and 67% respondents are unmarried.
Interpretation: Most of the respondents of our survey are Unmarried.
HIGHEST EDUCATIONAL QUALIFICATION:-
Analysis: This analysis shows that out of 100 respondent, 46% respondents are graduate &
professional, 36% respondents are post graduate, 14% respondents are senior secondary and
4% respondents are of Matric category. All the respondents of our survey are qualified.
Interpretation:From the above data we conclude that most of our respondents are Graduates
& professional degree holders.
OCCUPATION
Particulars
Businessman
Government Employee
Student
Others
No of Particulars
32
28
%age of respondents
32%
28%
24
16
24%
16%
Analysis: From the above analysis it is clear that 32% respondents are doing their own
business, 28% are employees and 16% respondents belong to other category And 24% of our
respondents are students. Most of the respondents of our survey are Businessmen.
Interpretation: From the Above data we conclude that most of our survey respondents are
businessmen.
5.2) LIMITATIONS OF THE STUDY
Due to constraints of time and resources, the study is likely to suffer from certain limitations.
Some of these are mentioned here under so that the findings of the study may be understood
in a proper perspective.
The limitations of the study are:

Some of the respondents of the survey were unwilling to share Information.
The research was carried out in a short period of 1 week . Therefore ,the sample size
and other parameters were selected accordingly so as to finish the work within the
given time frame.
The information given by the respondents might be biased because some of them
might not be interested to give correct information.
The officials of the bank supported me a lot, but did not have sufficient time to make
the points more clear.
6. DATA ANALYSIS AND ITS

INTERPRETATION
1.
The respondents were asked about
which banking sectors services do they avail.
Table1: Banking sectors services which the
respondents avail.
Number of respondents
Both; 30%
Public; 32%
Private; 38%
Graph 1: Banking Sectors services which the respondents avails
INTERPRETATION:-It was found that most of the respondents were availing services
of private sectors banks while those of the public sector banks were less.
2.
The respondents were Asked about the
type of account they have in the public sector as well as
Private sector banks
Table 2.1 Number of type of account held in Public and Private sectors banks
Graph 2.1 :- Number of type of accounts held in Public sector banks.

Analysis: 50% people own Saving Account, 15% own Current account,6% demat,15%
fixed deposits account and 14% salary Account.
Interpretation: It was found that in case of public sector banks, maximum number of
account holders owns Savings Account. After Savings Account most preferred account is
salary account preferred by people and the next priority goes to fixed deposits Accounts.
3. The basic purpose of this question was to know the most preferred Bank.
Table 3. Number of respondents preferring different banks
Names of Banks
ICICI Bank
HDFC Bank
State Bank Group
Punjab National Bank
Punjab And Sind Bank
Number of Respondents
24
22
28
20
6
30
25
20
15
10
5
0
Analysis:
From above graph, it is seen that 28% stake of the respondents follows to
State Bank Of India bank followed by ICICI bank. It is the bank which provides 12hour banking. Also the ATM machine is more as compared to the other private sector
banks.
Interpretation :
From the above graph, it is seen that State Bank Of India is the most
preferred bank as compared to other Public and Private sector Banks. The reason for
preference of public sector bank is the minimum amount of deposit for saving account.
4. The aim to ask this question was to know the reasons for their preference in different
banks:-
Table 4:- Reason for account in different banks
No. of respondents
Location; 15% Friendly Behaviour of the Staff; 16%
Reliability/trust; 14%
Quick and fast services; 55%
Graph 4:- Reasons for account in different bank

Analysis:
From the above graph, it is seen that 55% of the respondents need quick
and fast services. And the next reason is friendly behavior of the staff which is 16%.
Interpretation:
By analyzing this graph, we can conclude that most of the people is

influenced by the quick and speedy services provided by the bank and location is given
less preference than others.
5. The respondents were asked about the facilities they were availing in public as well as
private sector banks:-
Table 5.1 Number of people availing different facilities at public sector

banks:
Graph 5.1: Number of people availing different facilities at public sector Banks
Interpretation: From the above graph, it was found that was availed by most of the people at
public sector banks was that of ATM/Debit cards which hold 60% of respondents. It is
clearly observed by the graph that Insurance are neck to neck holding 20% of respondent
each.
6. The purpose of this question is to know the satisfaction level they were having with
their banks overall performance:-
Public sector banks
Table 6.1 Satisfaction level of the customers regarding the facilities availed from the
public sector banks
Chart Title
No. of respondents
age
54
42
24
27
21
12
Excellent
Good
Very Good
Graph 6.1 Satisfaction level of customer regarding the facilities availed from the public
sector bank.
Analysis
It was found that in case of public sectors banks, 18% of the respondents were
highly satisfied ranked excellent from the products and services availed by
them. 44% were just satisfied given very good and 38% have moderate view.
Interpretation: People have mixed type of view regarding public sector

Banks
7. The respondents were asked that if they have given option, would they like to shift
from the present banks:-
Table 7. Number of customers ready to shift from present bank.
Interpretation: From this above Graph, we can conclude that the number of respondents
ready to shift from their present bank is 28% while 70% customers seems to be satisfied from
their bank and hence willing to shift from their present bank to other.
8. The aim to ask this question was to know whether the respondents faces any problem
regarding the services provided them by their preferred bank :-
.
Interpretation: It was find that most of the respondents are facing problem of reference.
Respondents also find that the time and too much formalities also cause problems in
Public banks
7. FINDINGS
More number of people have account with Public Banks. Majority of

the respondents whether in public sectors or in private sector banks
have savings account with banks.
Number of problem faced by the people is more in public sector
banks.
People want a change in the behavior of the staff of the public
sector banks.
People are more satisfied from the private sector banks due to their
better services provided by them in terms of speedy transactions,
fully computerized facilities, more working hours (in case of ICICI
bank, the number of working hour are 12), good investment Advisory
services, efficient and co-operative staff, better approach to
Customer Relationship Management.
In private sector banks proper promotional activities should be

taken up so as to make the population aware of the services
provided by the banks even in rural areas.
The facility that was availed by most of the people at public sector
banks was that of ATM/Debit cards. The least availed facility was
that of Demat account and foreign transfer of funds
The facility that was availed by most of the people at private sector
banks was that of Internet/Phone banking by ATM/Debit card.
Majority of respondents do not want to shift from their present bank.
From the above study it is clear that private banks are providing
better services than nationalized banks. 95% respondents favored
that private banks are providing better services than nationalized
banks while 5% respondents are not agree with it.
From the above study it is clear that majority of the respondents
said that the average balance requirement for operating their saving
account is between 5000-10000. 20% said it is between 1000020000 and remaining 5% said it is between 20000-50000 in private
sector banks which as compared to Public sector bank is very high.
40% respondents said that the bank employees never pay any
attention to them and 10% respondents said that their problems are
not solved by bank executives. The remaining 50% respondents give
a positive reaction in the favour of bank. 30% respondents favoured

that their problems are solved by bank executives and 20%
respondents said they are received with smile by bank executives.
So there is a mix response.
Majority of the respondents said that the average time taken for
transactions is between 25 to 50 minutes in their bank. 30%
respondents said the average time taken for transaction is between
20- 25 minutes, 20% said it is between 10 to 25 min. and remaining
10% said that the average time taken for transaction by their bank is
5 to 10 minutes.
From the above study is clear that the banks do not organize
any customer meets. All the 100% respondents said that their bank
doesnt organize any customer's meets to resolve their problems.
Customer satisfaction is the demand of time, so the banks should
organize customer meets to resolve the problems of their
customers.
From the above study it is clear that majority of the respondents are
ready to pay nominal charges for better services provided by private
banks while 40% respondents are not ready to pay any nominal
charges.
The above study depicts that 60% respondent said that their bank
updates them time to time about the latest facilities and remaining
40% said that their bank doesn't update them.
8. SUGGESTIONS
Based on the study conducted, there are some of the suggestions given by
the customers of how the modern banking should be. These are the
comment given by them about the improvement of the banking sector in

India.
Banks should obey the RBI norms and provide facilities as per the
norms, which are not being followed by the banks. While the
customer must be given prompt services and the bank officer should
not have any fear on mind to provide the facilities as per RBI norms
to the units going sick.
Banks should increase the rate of saving account
Banks should provide loan at the lower interest rate and

education loans should be given with ease without much
documentation. All the banks must provide loans against shares.
Fair dealing with the customers. More contribution from the

employee of the bank. The staff Should be co-operative, friendly and
must be capable of understanding the problems of customers
Internet banking facility must be made available in all the

banks.
Prompt dealing with permanent customers and speedy

transaction without harassing the customers
Each section of every bank should be computerized even in

rural areas also.
Real time gross settlement can play a very important role

More ATM coverage should be provided for the convenience of
the customers.
No limit on cash withdrawals on ATM cards.
The bank should bring out new schemes at time-to-time so

that more people can be attracted. Even some gifts and prizes may
be offered to the customers for their retention.
24 hours banking should be induced so as to facilitate the

customers who may not have a free time in the daytime. It will help
in facing the competition more effectively.
The charges for saving account opening are high, so they

should also be reduced.
Customers generally complain that full knowledge is not

granted to them. Thus, the bank should properly disclose the
features of the product and services to the customers. Moreover
door to door services can also be introduced by bank.
The need of the customer should properly be understood so

that customer feels satisfied. The relationship value should be
maintained.
The branch should promote cooperation and coordination

among employees which help them in efficient working.
Maintenance of proper hierarchy should be done. A good

hierarchy set up can ensure better results with in the bank.
Banking sector is improving by leaps but still it
needs to be improved. Proper and efficient relationship staffs having

knowledge for one stop
banking, Customer friendly atmosphere, and
better rate of interest are need of the hour. The concept of privatization
has overall improved the services in all the banks. Home banking will be
order of the day. Hence, some banks have even started like ICICI Banks
RECOMMENDATIONS
For Public Sector Banks:
Bank staff should be customer friendly and highly motivated

to serve the normal customer.
As far as possible, banks should reduce its documentation

process while providing loans.
Computerization should be done in banks at all level and the

operators should be properly trained.
Token system should be induced
Proper ambience in the banks can develop a healthy working

culture.
Quick services should be provided.
For Private sector Banks
24 hours banking should be induced so as to facilitate the

customers who may not have free time in the day time. It will
help in facing the competition more effectively.
More ATM coverage should be provided for the convenience of

the customers.
Customer care services should be provided by banks.
9. CONCLUSION
The customers now days are not only exposed of what type of service is
being provided by bank in India but in the world as a whole. They expect
much more than what is actually being provided. So the new coming
banking sector has to provide and cater to all the needs of the customers
otherwise it is difficult to survive in the competition coming up.
They not only expect the safety of money but also best ways to invest that
money which need needs to be fulfilled. Banks need to have a better
outlook towards to actually what customers are requiring. Entries of the
private sector banks have made the competition tougher. If a bank is not
functioning properly it is being closed. So it is difficult to face these types
of conditions. Here a simple philosophy can work that customers are God
and we need to follow this to survive and serve better.
The banking sector is poised for explosive growth. In this, scenario, it is
imperative that banks adopt technology at an aggressive Pace, if they
wish to remain competitive. Mani Mamallan makes a case for banks to
outsource their technology infrastructure requirement, thus enabling early
adoption and increased efficiencies.
In the prevailing scenario, a number of Private banks have adopt a new

deployment strategy of infrastructure outsourcing, to lower the cost of
service channels. As a result, other banks too will need to align their
reinvented business models. The required changes at both the business
and technology levels are enormous. In highly competitive banking
markets, early adopters are profiting from increased efficiencies
10. APPENDICES
BIBLIOGRAPHY
Research Methodology
- ICFAI Publication
S.P.Gupta Statistics Book.
Websites:
www.ezine@rticles.com
www.googlesearch.com
www.iupindia.org
www.ebscohostsearch.com
www.emeraldinsight.com
QUSETIONAIRE ON COMPARATIVE
STUDY ON SERVICES OF PUBLIC AND
PRIVATE BANKs
Name of the Bank (Branch):-__________________________
Name of the Customer:-_____________________________
Address:-_____________________________
______________________________
______________________________
A/C No: - _______________________________
Part A Questionnaire
Primary Aspects
Sl.
No.
1.
2.
3.
4.
Question
Answer
Do you have an A/C

-----------------------------------------------(a)if yes
----------------------------------------------(b)if No
(i)why not
What is your A/C no? If
Interested
A/CIn which bank you have youre
A/C
Yes
No
----------------------------
----------------------------
----------------------------
----------------------------
Public Bank
Private Bank
Name of Bank ->

Why did you select regarding
its
(a) Goodwill/ faith
(b)Security reason
(c) Location
or
Part- B Questionnaire
Qualitative Aspects
Sl.
Services
Rating
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Cleanliness, Layout, Access to the

entrance, Visibility of Signboards
Space available for sitting / waiting /
writing
Easy availability of loose pay-in-slips,
withdrawal slips, DDs / TTs forms &
challans etc.
Availability of services of staff
members :
a) For any enquiry
b) Listening to your problems
c) Guidelines for various deposit
schemes, their advantages
d) For procuring publicity related
materials
General behaviour of the members of
staff
Availability of services at Computerised
Counters eg. Knowing the balance,
Debit /Credit of instruments etc., and
delivery of printed Pass Books /
Statements
Expert services available in handling of
import / export business
Compliance of standing instructions
Your experience about Locker Service
rendered
by the branch
Availability of Complaint Register on
demand
Any complaint lodged by you is still to
be
redressed. If so please put the date of
complaint
lodged with the branch
Averag
e
Averag
e
Averag
e
Poor
Good
Averag
e
Poor
V.
Good
V.
Good
V.
Good
V.
Good
V.
Good
Good
Averag
e
Averag
e
Averag
e
Averag
e
Averag
e
Poor
V.
Good
V.
Good
V.
Good
Good
Averag
e
Averag
e
Averag
e
Poor
V.
Good
V.
Good
V.
Good
Good
V.
Good
Good
Good
Good
Good
Good
Good
Good
Good
Easily available
on Demand
None
Poor
Poor
Poor
Poor
Poor
Poor
Poor
Poor
Not available
Not attended
(put
date of
lodgement
of complaint)
PART - C Questionnaire
QUANTITATIVE ASPECTS
Sl.
No.
1.
Staff initiative to minimise waiting

hours of the customers at the Counter
Payment of Cash, Cheques, Demand
Drafts
2.
Receipt of Cash in the accounts /

purchase of
DDs and in other accounts
Delivery of Demand Drafts / Pay
Orders / Bank
Orders
Delivery of Fixed Deposit Receipts
3.
4.
within
15
min.
within
15
min.
within
20
min.
within
20
min.
within 15
min.
5.
Updating of Savings / RD Pass Books

(Where
entries are not more)
6.
Issue of Cheque Books in Current / SB

a/cs
7.
Issue of Statement of Accounts

(Manual)
8.
Issue of Statements of Accounts /

Pass Books (on Computers)
Instantly
9.
Credit of proceeds of domestic

transfers
10.
Affording credit upto Rs. 15,000/- in

respect of
outstation cheques
Within
20
min.
Immedia
te
within
15
min.
Within 7
days
15-30
min.
More than
30 min.
15-30
min.
More than
30 min.
20-30
min.
More than
30 min.
20-30
min.
More than
30 min.
15More than
More
30
30 min.
than
mi
1
n.
day
15More than
More
30
30 min.
than 1
min.
day
7-15 days
More than
15 days
More
than
30 min.
20-30
min.
More than
1 hour
On
Request
Not Done
More than
30 min.
11.
Time taken in realisation of proceeds

of
outstation cheques / bills
12.
Time taken in sanctioning of loans
against
Bank's deposits
Your suggestions, if any, for improving Customer
Within
15-21
More than
14
days
21 days
days
Within
30-60
More than
30
min.
60 min.
min.
Service at the Branch:
NAME:
SIGNATURE:
Account Number:
Branch :
Surveyor :
Date :

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We like to humbly acknowledge the contributions made by several persons

on Services of Public Sector and Private Sector Banks would not

Research work constitutes the backbone of any

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

The research work entitle COMPARATIVE STUDY ON

INTRODUCTION OF THE STUDY

INDIAN BANKING SYSTEM

OBJECTIVES OF THE STUDY

(5) RESEARCH METHODOLOGY

5.2 LIMITATIONS OF STUDY

DATA ANALYSIS AND ITS INTERPRETATION

(8) SUGGESTIONS AND RECOMMEDATIONS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

EVOLUTION OF INDIAN BANKING

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

2. INDIAN BANKING SYSTEM

Reserve Bank of India

Organizational Structure of Banks in India:

Short-term creditLong-term credit

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

PUBLIC SECTOR BANKS

PRIVATE SECTOR BANKS

2.1) According to Function

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

STRUCTURE OF BANKING SYSTEM

(1) UNIT BANKING

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

(2) BRANCH BANKING:

(3) CHAIN BANKING:

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

f. Discounting Bill of Exchange: It is another method of making advances by the

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

B) GENERAL UTILITY SERVICES

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

Public Sector Banks

Reserve Bank of India - Central Bank

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

2.2) PRODUCTS/SERVICES OFFERED BY BANK

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

Internet Banking: Internet banking involves use of internet for delivery of

Financial Transaction on the Internet:

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

3. OBJECTIVES OF THE STUDY

The Chief Objectives of this study are:

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

7. To study whether the customers are satisfied with their service

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

QUESTIONNAIRE:-This method of data collection is quite popular. Here in our research

RESPONDENTS:-Respondents helps in creation of more accurate idea about our research.

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

5.1) SAMPLE PLAN:

SAMPLING DESCRIPTION:- In order to understand the nature and characteristics of

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

HIGHEST EDUCATIONAL QUALIFICATION:-

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND PRIVATE BANKS

5.2) LIMITATIONS OF THE STUDY