IMPACT OF 12 HOUR BANKING ON CUSTOMERSA RESEACH PROJECT REPORT FOR INTERNAL EXAMNINATION

SUBMITTED BY ZALA BHARTI BHAGWARTIROLL NO. 50TO THE PG DEPARMENT OF COMMERCEUNDER THE GUIDANCE OFMRS. KALAYANIIN PARTIAL FULFILLEMENT OF THE DEGREE OFMASTER OF COMMERCEBANKING & FINANCESEMESTER IV(2013-2014)RESEARCH METHODOLOGY

SIES COLLEGE OF COMMERCE AND ECONOMICS,Plot No. 71/72, Sion Matunga EstateT.V. Chidambaram Marg, Sion (East), Mumbai 400022

CERTIFICATE

This Is To Certify That Ms. BHARTI ZALA OF M.Com Banking & Finance Semester IV (2013-2014) has Successfully completed the project work entitled IMPACT OF 12 HOUR BANKING ON CUSTOMERS Under The Guidance Of MRS. KALAYANI

_______________________________ ____________________________ Project Guide/ Internal Examiner External Examiner(MRS.KALAYANI ) ( ) ____________________ ____________________Course Co-ordinator PRINCIPAL(Mrs.SHAILASHRI UCHIL) (Dr.MINU THOMAS) DATE:PLACE:

DECLARATION

I, BHARTI ZALA , the Student of M.Com (Banking & Finance) Semester IV (2013-2014) Hereby Declare That I Have Completed The Project On IMPACT OF 12 HOUR BANKING ON CUSTOMERSThe Information Presented Through This Project Is True And Original To The Best Of My Knowledge. ______________Date: BHARTI ZALAPlace: Roll No. 50

ACKNOWLEDGEMENT

I Would Like To Extend My Sincere Gratitude To All Those People Who Have Helped Me In The Successful Completion Of My Project.I Express My Gratitude To Our Principal, Dr. Minu Thomas For Being A Constant Source Of Support And For Always Being There Whenever We Students Need Her Guidance. I Am Thankful To My Project Guide, Mrs.KALYANI Who Guided Us Throughout The Completion Of The Project. I Would Like To Thank My Course Coordinator Mrs. Shailashri Uchil Who Gave Us The Necessary Guidance Regarding The Technical Aspects Of The Project .I Also Thank The Library Staff At The College For Their Constant Support And Help In Providing Us The Right Books Needed For The Study. A Special Thanks To My Parents for Their Constant Support & Encouragement in Everything That I Do.

INDEXSl.No.TitlePage No

ACKNOWLEDGEMENT4

SUMMARY7

1.CHAPTER 1: ABOUT 12 HOUR BANKING8

1.1Introduction8

1.2Need for 12 hour start up8

1.3Its also a marketing decision8

1.4Reasons for start up9

1.512 hour preferred instead of 8 hour10

2.CHAPTER 2: RESEARCH OBJECTIVE12

2.1Methodology12

2.2Limitation12

2.3Research design 13

2.4Sample profile 13

3CHAPTER 3: SURVEY ON 12 HOUR BANKING SERVICES15

3.1Data analysis and explanation on findings15

3.2Findings and suggestions29

4CHAPTER 4: CONCLUSION 30

5CHAPTER 5: BIBLIOGRAPHY 31

SUMMARYThis research entails the study of impact of 12hour banking undertaken by banks and their impact on customers. The philosophy that Customer is king is apparently the major reason for this increase in banking hours. Today, the customer is more demanding than ever and only those organizations that can provide value for money and time of their customers, can ensure customer loyalty. Provide value for money and time of their customers, can ensure customer loyalty. The project also tries to analyse the responses and reactions of customers, to this service with aid of questionnaires and personal interviews.

CHAPTER: 1CHAPTER1: ABOUT 12 HOUR BANKING1.1: INTRODUCTION TO 828 START UPGet your team together, split them into small groups, and give them 12 hours to build a new product or service from your existing resources1.2: NEED FOR 12 HOUR STARTUP It stimulates creative thinking Allows your employees to try solutions that have been lingering for years Pushes forward simple ideas that can be executed quickly Builds comradely Also Gets rid of toxic ideas that people believe in till they have been proven wrong Most importantly, encourages out of the box thinking. How can we take what we have got and serve our customers better?1.3: ITS ALSO A MARKETING DECISION To staff it says, we value your input - let's give it a go To customers it says, we are seeking new ways to help you To management it's driving strategic direction from sales (ideas that work)RUN WITH IT:Take this concept and apply it to your business. Can your team come up with some new product ideas / extensions and go from idea to concept within 12 hours. 12 HOUR BANKING START UPBECAUSE REMARKABLE IDEAS CANT WAIT1.4: Reasons for start upThere is a great impact of increase in banking hours in todays modern and busy world. Most private sector banks implemented the concept of 8 to 8 banking-a twelve hour banking system, more than a year ago. Before we start with the analysis of what has been the impact of this service, let us understand the reasons behind its implementation. Following is a list of few reasons considered by these banks while implementing this service:Finance Ministers verdict: The Union Finance Minister P. Chidambaram told banks to function from 8 AM to 8 PM on all working days to serve different types of customers. Competition: With private banks like ICICI and PSU banks like Union bank of India, PMC bank already implementing 12 hour banking, it becomes quite essential for other banks to follow the trend in order to maintain their clientele. Customer-centred convenience banking: Unlike old days, customers today are more aware and demand prompt services. Also, they would like to visit their banks as per their convenience. Thus, this decision is a completely a customer centric move. To convey a subtle message: We care for u (customers) Attracting new clientele: A customer may be having an account with a bank which works as per traditional timings; i.e. 10 AM to 5 PM. He can get banking facilities even between 8 AM to 10 AM and after 5 PM, by opening an account with bank which offers twelve hour banking. 1.5: 12 HOUR BANKING PREFERRED INSTEAD OF 8 HOURSA strong argument in favour of 12-hour BANKING is that these work arrangements have the potential to eliminate or reduce some of the problems of working hours because work is usually compressed into fewer days each week. Thus staffs are generally required to work fewer hour than they are on 8-hours .This means that there are fewer circadian changes imposed on the body and workers can have more available free time with their family and friends, Therefore, according to this line of argument, 12-hourworking hours can redress some of the conflict staff tend to report between their work schedule and family, biological and community rhythms. However, although there are persuasive arguments suggesting that 12-hour workings are likely to help staff achieve less work/non-work conflict, relatively few studies have tested this argument empirically. Many studies have linked work/non-work conflict to fatigue, psychological ill-health, depressed mood and increased physical symptoms amongst 8-hour working but no direct research has examined whether work/non-work conflict changes with the introduction of 12 hour working.

CHAPTER: 2RESEARCH OBJECTIVE: To understand the need for increase in banking hours. To understand the impact of this service on: Customers Employees To provide suggestions to further increase the benefits of this service. 2.1 METHADOLOGY:The data is Primary data is collected by personally visiting the concerned person and the secondary data is collected from internet, websites of the concerned banks and from books.2.2 LIMITATION: Some customers were not interested in sharing their experiences due to limitation of time and similar reasons. The results are based on the assumption that the information provided by respondents is correct and true. The lack of secondary data created difficulties in getting research help. Sometimes the customers felt conscious of the fact that they were being interviewed as they were not sure whether to reply to my queries or not.

2.3RESEARCH AND SAMPLE METHODOLOGY AND DESIGNThe concept of twelve hour banking was introduced by most nationalized banks almost a 3 ago. With just one year of its implementation, there has been lack of sufficient secondary data. Hence, the primary research was conducted by observing and interviewing customers who visited the bank. They were also requested to fill a questionnaire to further help us with their responses. This customer questionnaire was also emailed to certain target audience. This same method was applied in all the branches visited. SAMPLING METHOD The sample would comprise any customer who walked in during the banking period. In order to cover customers who were more in habit of internet banking and ATMs, questionnaire was emailed to them. In this case, I took help of family and friends. Also, in order to get variety of responses I made sure that customers from different professions and home makers were all included in sample.2.4 SAMPLE PROFILE: 30 respondents were taken to conduct survey. People from different age group, occupation were selected for survey. METHOD OF DATA COLLECTIONQUESTIONNIAREQuestionnaire is a formalized instrument for asking information directly from the respondent and concerning behaviour, demographic characteristics, level of knowledge and/or attitudes, beliefs and feelings. I have collected the primary data through questionnaires administered to our target audience. Structured and direct questionnaires were framed as they produce more reliable results than unstructured questionnaires. INTERVIEWThis is structured direct interview. The interview was a one-to-one or face-to-face interview or a personal interview. The response of the respondents is better and even personal questions can be asked in a convenient manner, which improves the quality of the research work.

CHAPTER: 33.1 DATA ANALYSIS AND EXPLACTION OF FINDINGS:The questionnaire is a combination of open ended, single option and multiple option questions. It has been divided into two sections. The questionnaire mainly tries to find out responses directly related to their visit to their bank and also aims to find out if customers find use of e-banking, Tele-banking, ATMs more convenient rather than visiting their bank. It also aims to find out the popularity and flexibility of customers with plastic money. Following is the detail analysis of the responses to these questions. Age group of sample:No of respondentsAge group of respondents

Below 307

Between 30 to 60 13

Above 609

The age was asked in order to determine the age group of the respondents to separate them into different groups.This helps in finding out the percentage of senior citizens. During the observation, it was noticed that the majority customers coming into the bank during early morning hours were pensioners. Occupation :

From the above graph we see that maximum no of the customers visiting the bank are service class. This class also includes the people who work under some sole trader or firm. Many of them are sent by their bosses/superiors to bank to handle the banking work of their shop. This means that those in service class may not have visited the bank for their own work, but rather for the work of shop they work for. Also, it was observed that the respondents in this category usually came after 10.30 AM, as that is the usual time of shops opening. Students, who formed the next category, included those students who visited the bank to get Demand Drafts for fees payment, etc. Also, this category includes those students who are not very conversant with internet banking and ATMs. The respondents under the business category included those who had some business unit of their own. As per the observation, the respondents under this category usually visited the bank before 10 AM. The reason cited by them was that it is convenient to finish banking work before going to work. Another category was that of housewives. The only pattern that I observed in this category was that they visited the bank usually between 12 PM to 7 PM. The last category comprises of the senior retired citizens who visited the bank to collect their pension. These customers usually visited the bank as early as 8.30 AM. The reason they cited was that there were less chances of waiting in queue as not many customers visiting the bank between 8.30 AM and 9.30 AM. What type of account do you have in your bank? Account holder:Types of accountNo of respondents

Current account 7

Savings account13

Pension fund4

Other6

As can be seen in the above graph and table maximum no of respondents are saving account holders who have normal savings accounts in banks.

What are the banking hours of your bank?

BANK HOURS:

BANK HOURSNO OF RESPONDENTS

8AM to 8PM20

9AM to 5PM7

DONT KNOW3

From the above graph and table we can analysis that 20 respondents, said that their bank functions for twelve hours, i.e. 8 AM to 8 PM. But, what was most surprising that some respondents did not know as to what are their banks timings. Many of them were customers of ICICI. This is a very important point. Most ICICI branches had implemented twelve hour banking service 2 years ago, but still not all customers were aware about it. This may be because of lack of proper promotion of this service. Many customers were least bothered about the increase in timings and felt there was not much improvement in banks services. How frequently you visit your bank? Visit bank:

The above chart aims to determine how frequently customers visit their bank. As can be seen from the chart, 10 respondents said they visit their bank once or twice in a month and 7 visit banks once a week. The major reason cited by these respondents for not visiting bank frequently is availability of options like ATMs, e-banking and telephone banking. These respondents visited their bank as per their convenience and requirement. Rest respondents included those businessmen who visit their bank everyday or every alternate day. But again most of the respondents in this visit the bank between 10 AM to 2 PM. What is the reason you typically visit your bank?

Reason to visit a Bank:

As can be seen from the above graph, majority customers visit a bank for deposits and withdrawals. Majority of these respondents belong to business class who deposit their daily earnings into bank and most of their transactions are through bank.Very few customers visit bank to get advice with investment decisions. In option of other most people said they visited bank for pass book update, for making drafts and for bill payments. This question aims at finding out for which services customers mainly visit a bank branch. Which of the following services does your bank provide?

Other services:

USE OF OTHER BANK SERVICESNO OF RESPONDENTS

ATM15

Net banking7

Phone banking8

As we can see from the above graph and chart respondent make use of internet banking services. Here, we see that maximum no of respondents use ATM service.Net banking and phone banking is less popular among customers. The fact that people prefer ATMs more than visiting the banks.

Need for 12 hour banking?

NEED FOR EXTRA HOUESNO OF RESPONDENTS

Yes16

No14

As we can be seen in the above graph and chart maximum no of respondents thinks that its good to have extra hours.Following are the comments from the customers.Comments of the customers:For emergency services like cheque collection, I think it is a good proposition to keep the bank's branch open till late evening. But with the 24-hour ATMs and also Internet banking, I don't feel the need for extended hours of banking at every branch. Certain branches at key commercial areas will be very helpful.""Even though it is now possible to draw money through ATMs and purchase demand drafts through the Internet, the increased working hours can improve use of facilities like safe deposit lockers, which can be accessed only at the bank. There is a monetary limit imposed for drawing money from ATMs and higher amounts can be withdrawn only from a bank. Other non-banking operations like insurance advisory services can be possible in the extra hours. The longer working hours are particularly beneficial to those who do not access the Internet." Internet banking is more convenient rather than visiting a bank? E-Convenience:

According to above graph we come to know that maximum respondents thinks that internet banking is more convenient rather than visiting a bank but many customers are not comfortable using internet banking or they face many problems while using internet banking.

In your bank, you....

The above chart aims to determine if the increase in banking hours has reduced rush of customers at any particular point of time. Maximum no of respondents say that they dont need to wait much now. Among these 17 respondents, most complimented the bank for having increased the banking hours. Few of their statements are as under:"Previously it was a case of waiting long for your own money. This new service is customer friendly and efficient."Earlier we had to stand in long queues, but now we are spared that. This is a positive change.But, some respondents say they always have to wait in queue to get service. Of these 13, most of the respondents visit the bank between 10 AM to 2 PM. This indicates that despite increase in banking hours, many respondents do not take advantage of service. Apparently, the reason behind this is that most shops open after 10 AM and cheque collection period is till 12 PM. Does increase in banking hours gives flexibility in visiting a bank? Flexibility in visiting a bank?

FLEXIBILITY IN VISITNG A BANKNO OF RESPONDENTS

YES22

NO8

According to above graph and table, maximum no of respondent are happy with extend banking hour.

Various problem customer face while visiting a bank: This question was asked to get feedback from respondents about various problems faced by them. The responses include not only those problems that should had reduced after increase in banking hours, but also those problems which are directly related to the performance of bank. It is highly important that the services provided by bank are utmost professional and directed towards customer satisfaction. Increase in banking hours will be most profitable only when such professional environment is ensured.Following is the list of few responses: Many times printing machine at bank is not functioning. New account cannot be opened after 5 PM. What is the use of bank being open till 8 PM I deposited cash at 9.30 AM in my bank account. At 10.30 AM, I went to an ATM machine to withdraw some money. To my surprise, there was no change in my balance! The cheque clearing time is very limited. With increase in banking hours, this facility should also be extended for more hours. Sometimes the person responsible to provide a certain service is not on his desk. In such case, nobody else comes to the aid of customer. Many times employees keep chatting among themselves, not realizing that the customer wants his work to be done as soon as possible. Also, customers are waiting in the queue get irritated because of this unprofessional attitude of bank officers. I had asked the bank to issue me the cheque book, almost 3 months back. I have still not received the cheque books. Besides, there has been no proper explanation from the bank officials for such negligence. There should be separate counter for services like getting pass book updated. Any suggestions or comments related to timings and services of your bank?Following is the list of some suggestions given by customers:a) We are happy that the bank is open for twelve hour now. This gives flexibility in visiting the bank at any time of day. b) Although banking time has been increased, employees behave in a typical PSU employee manner. Unless the attitude of professionalism sets in, customers will always keep complaining about bank and its services. This negative word of mouth publicity will eventually lead to many customers opting for private banks.a) Although banking hours have increased, infrastructure remains the same. There is just one printing machine for making pass book entries, and many times that too is out of order.b) There should be more counters for different kind of services and senior citizens should get proper assistance.

3.2FINDINGS AND SUGGESTION:

Following is a list of few suggestions Young and more professional staff will help in better implementation of the twelve hour banking concept. Customers presence is most important in 8 to8 branch. While implementing 8 to8 banking, it is very important to analyse whether branch requires extended hours of working.In those branches where frequency of the customers visiting the branch is high and in case of branch being located in a residential cum commercial area, 8 to 8 banking should be implemented. But branches were there are less customers, 8 to 8 banking will only lead to loss due to increase in various expenses like electricity charges, telephone bills, etc. Thus 12 hours can be beneficial only to few selected branches. To ensure proper delivery of services, staff strength must be adequate. Since ATM and internet banking are made available to customers, there is no need to increase the banking hours.

CHAPTER:4CONCLUSION:There is no doubt that within just a few year of its implementation, 12 hour banking has had quite a significant impact on customers of the bank. It has given a fair chance to banks competed with the other. While many, customers felt that the facility gave them flexibility in visiting the branch. Customers like office goers, housewives, pensioners, students have benefited the most because of increased banking hours. On the other hand, not much difference has been noted among shop owners and businessmen. Though many customers are happy that banking hours have increased, they want that all services should be provided. Most employees are unhappy to work for extended hours as they are not satisfied with the current compensation scheme. Although, 8 to 8 banking helps to counter competition from other banks, it faces internal competition from facilities like internet banking and telephone banking. ATM, internet banking and telephone banking provide an option to customers for not visiting their bank. A customer not visiting their bank leads to idle time and this increases frustration of employees. As far as financial performance is concerned, there has been substantial increase in the profits of banks. With increase bank hours there was increase in cash transactions- deposits, withdrawals remittances, etc. Also, there was increase in cheque related transactions. Customers for Demand drafts, Savings Account, Current Account, Pension account, bill payment, etc. have increased. Not much difference has been noted for other services.

CHAPTER:5BIBILIOGRAPHY:BOOKS Modern banking in India- Sumant k. Muranjan Indian banking- R. K. UppalWEBWWW.GOOGLE.COM

1

Age Group