Canara Bank 2
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Transcript of Canara Bank 2
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Under the guidance of
Mr. Anurag Prakash.
(Senior Manager, Mktg. cell, CO, Ranchi)
Submitted by:Praveen Kumar(2010MB0021)
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ABOUT THE ORGANISATION
CANARA BANK
Shri Ammembal Subba Rao Pai
Founder Canara Bank
"A good bank is not only the financial heart of the community, but also one with an
obligation of helping in every possible manner to improve the economic conditions of the
common people" -A. Subba Rao Pai.
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INTRODUCTION
It was founded as 'Canara Bank Hindu Permanent Fund' in1906 by late Sri. Ammembal Subba Rao Pai.
Vision :- To emerge as a best practices bank by pursuing
global benchmarks In profitability, operational efficiency,asset quality, risk management and expanding the globalreach.
Mission :- To provide quality banking services with
enhanced customer orientation, higher value creation forstakeholders and to continue as a responsive corporatesocial citizen by effectively blending commercial pursuitswith social banking.
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Founding Principles
To remove Superstition and ignorance.
To transform the financial institution not only
as the financial heart of the community but
the social heart as well.
To assist the needy.
To work with sense of service and dedication.
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Significant Milestones
1st July 1906, Canara Hindu Permanent Fund Ltd. formally
registered with a capital of 2000 shares of Rs.50/- each, with 4employees.
In 1910 Canara Hindu Permanent Fund renamed as Canara
Bank Limited.
Canara Bank nationalized on July 19 1960. In 1976 1000th branch inaugurated.
In 1995-96 Became the first Bank to be conferred with ISO
9002 certification for one of its branches in Bangalore.
In 2003-04 Launched Internet & Mobile Banking Services. In 2004-05 100% Branch computerization.
As at March 2011, the total business of the Bank stood at
Rs.5,00,000 crore.
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At present Canara Bank has 3273 branches.
2509 ATM covering 846 centres.
With 100% CBS, the Bank offers technology banking,
such as, Internet Banking, Mobile Banking and FundsTransfer through NEFT and RTGS across all branches.
Products & Services:
SAVINGS AND DEPOSITS LOANS
TECHNOLOGY PRODUCTS
MUTUAL FUNDS
INSURANCE
CONSULTANCY SERVICES
ONLINE TRADING
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ORGANISATION STRUCTURE
HEAD OFFICE (BANGLORE)HEADED BY CHAIRMAN
CUM MD
CIRCLE OFFICE (34)HEADED BY GENERAL
MANAGER
REGIONAL OFFICE (26)
HEADED BY
DEPUTY GENERALMANAGER
BRANCH (3273)
HEADED BY CHIEF
MANAGER
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Techno Products of Canara Bank1. Internet Banking:- Internet banking refers to
systems that enable bank customers to access accounts andgeneral information on bank products and services througha personal computer (PC) or other intelligent device.
2. Mobile Banking:- Mobile banking is a term used for
performing balance checks, account transactions, paymentsetc. via a mobile device such as a mobile phone. Mobilebanking today is most often performed via SMS or theMobile Internet but can also use special programs, calledclients, downloaded to the mobile device.
3. ATM cum Debit Card:- A debit card (also known as abank card or check card) is a plastic card that provides analternative payment method to cash when makingpurchases.
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Background of Project Objective: A comprehensive study of penetration of
Canara Banks technological products (Internet Banking,Mobile Banking and ATM cum Debit Card) amongcustomers.
Research Methodology:
Research Design: Exploratory Research
Descriptive Research
Factor Analysis
Source of Data: Primary Data- Interview, Questionnaire
Secondary Data- Companys web site, Financial
articles, Previous research papers
Sample Design: Sampling- Convenient Sampling
Sample size- 100
Scale used- Likert Scale
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Step 1:-LITERATURE REVIEW AND
PREVIOUS FINDINGS
53%
23%
4%2%
18%
Preferred Banking Channel
ATM
Internet Banking
Phone Banking
Mobile Banking
Branch
25%
43%
20%
10%2%
Age Group Distribution of OnlineBanking Users
18-25
26-35
36-45
46-60
61+
17%
83%
Gender-wise distribution
Female
Male
0 5 10 15 20 25 30 35 40
Checking account balance
View last three transactions
Status of cheques
Payment reminders
Request a cheque book
39.97
28.15
21.06
20.92
19.11
Preferred Mobile Banking Service
f
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Importance of service quality dimensions
for i-Banking
0 1 2 3 4 5 6
Reliability
Accessibility
User-friendliness
Privacy/Security
Efficiency
Responsiveness
Fulfilment
Importance of service quality dimensions for i-banking
Importance of service quality dimensions for i-banking
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Step 2:- RESEARCH DATA
83%
17%
Gender-wise no. Of customers
Male
Female
5%9%
21%
65%
Age-wise no. of customers
18-25 yrs
25-35 yrs
35-45 yrs
45 yrs & above
15%
34%
5%
39%
6%1%
occupation-wise destribution
businessman
service
Student
govt. empl.
Housewife
other
47%
34%
3%
16%
Education-wise Destribution
Matriculate
Graduation
Post Graduation
Other
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38%
34%
19%
9%
Income-wise Destribution(PM)
Less than 15000
15000-25000
25000-35000
above 35000
F
IX
E
D
5
5
SB ,95
OD,2C
A
3
YES13%
NO
87%
Techno Products Awareness Ratio
77%
15%
6% 2%
Customer visit to Bank
1-2 times
3-4 times
5-7 times
more than 7 times
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74%
4%
16%
6%
Source of information about techno
products
Staff
Friends
Brochure/AD
Other
33%
65%
2%
Are the Canara Bank techno products
usefull?
Yes
No
Can't say
68
42
37
21
16
Purpose of mobile/internet banking
Account Detail
Fund Transfer
Online Bill Payments
Online Enquiries
Other Services
36%
45%
71%
7%
Advantage of mobile/internet
banking
Anywhere anytimebanking
Fast reaction to market
developments
Overview over bank
account/s
Nothing
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65
57
126
Disadvantage of mobile/internet banking
Security concerns / risks
Complicated / uncomfertable
usage of devices
hidden cost
Nothing
12
27
34
19
8
0
5
10
15
20
25
30
35
40
Excellent Good Average Satisfactory Poor
Service offered by the bank
Service offered by the bank
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Step 3:-Factor Analysis1 2 3 4 5 6 7
PROXIMITY 0.545 0.118 -0.326 0.397 -0.072 -0.106 -0.113
TIME SAVING 0.535 -0.161 0.378 -0.230 -0.039 0.025 -0.094
REPUTATION OF BANK 0.443 0.667 0.178 0.456 0.005 -0.003 -0.098
TECHNO SAVVY 0.082 0.073 0.586 -0.197 0 -0.309 0.245
USER FRIENDLY 0.749 0.383 0.151 0.179 -0.426 -0.025 0.118
CONFIDENTIALITY -0.166 0.430 0.304 -0.111 0.328 -0.039 0.629
CUSTOMIZATION 0.052 0.362 -0.382 0.057 0.041 0.503 0.241
HASSLE IN PROCESSING 0.594 -0.064 -0.016 -0.373 0.013 0.021 0.110
AWARENESS 0.059 -0.202 0.155 0.245 0.629 0.358 -0.269
SECURITY 0.432 0.261 0.272 0.009 -0.151 0.025 0.581
BEHAVIOR OF STAFF 0.430 -0.020 -0.130 -0.014 0.450 0.038 0.183
SERVICE OF PRODUCT -0.429 0.075 0.107 0.012 0.211 0.558 -0.272
CHEAPER -0.219 -0.046 0.317 0.674 0.123 0.380 0.052
DEXTERITY 0.162 0.515 0.655 -0.337 0.009 -0.257 -0.196
PRO-ACTIVENES OF BRANCH HEAD 0.001 -0.407 0.086 0.129 0.582 -0.199 0.137
BRAND IMAGE -0.242 0.756 0.217 -0.427 -0.113 0.418 -0.069
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DATA INTERPRETATION
Step 1:- of customer use i-banking
Mostly males having age group 26-35 yrs use
i-banking. Satisfaction from service they are getting, but
have problem in using it.
Mobile banking users are less, mostly use forchecking Acc. Balance.
53% customers use debit card.
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Step 2:- 65% customers having age 45 and above, so bank have to give proper
explanation about the products.
Only 17% of the customers are female. But they may be potentialcustomer because most of the women who do banking are well literate.
39% of the customers are govt. employee followed by 34% is in service,15% are in business and only 5% are students.
47% customers are matriculate followed by 34% graduate and only 3% arepost graduate.
38% customers are having income less than 15000per month followed by34% having income 15000 to 25000.
SB account holders are 95%, and more than half of the customers have FD.
Only 13% customers know about the Canara Bank techno products. Soaggressive promotion campaign is required.
74% customers come to know about the techno products through Bankstaff. so promotion through bank employee is economical and favourablefor bank.
Out of sample of 100 customer 68 customer use Internet /Mobile Bankingfor account detail,42 use for fund transfer,37 use for online bill
payment,21 use for online enquiries and rest for other services.
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Step 3 (factor analysis) :-Under the guidance of our branch manager
Mr. A.K. Mishra we tried to identify 16variables which a person considers for takingtechno product which were:
1. Proximity
2. Time Saving
3. Reputation of the bank
4. Techno Savvy
5. User friendly6. Confidentiality
7. Customization
8. Hassle in processing
9. Awareness
10. Security
11. Behavior of staff
12. Service of Product
13. Cheaper
14. Dexterity
15. Pro-activeness of branch
head
16. Brand image
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From the Factor analysis the 16 variables has been reduced to 7
Factors:-
Now taking 0.5 as the cut-off for deciding the variables of each factor
we come to seven factors and one redundant variables:
1. Factor1 (easiness)
Proximity
Time saving
User friendlyHassle in processing
1. Factor2 (market image)
Reputation of bank
Brand image3. Factor3 (User Ability)
Dexterity
Techno Savvy
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4. Factor4 (Service Charges)
Cheaper
5. Factor5 (operational behaviour)Awareness
Pro-activeness of branch head
6. Factor6 (Product Quality)
Customisation
Service of product
7. Factor7 (Security Aspect)
Confidentiality
Security
The redundant variable is: Behaviour of Staff
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Total variance summarized by the five
factor model is 72.572%Eigenvalue(amount of
variance explained):
Eigenvalue of factor1: 2.422
Eigenvalue of factor2: 2.410
Eigenvalue of factor3: 1.596
Eigenvalue of factor4: 1.471
Eigenvalue of factor5: 1.329
Eigenvalue of factor6: 1.231
Eigenvalue of factor7: 1.153
Percentage of varianceexplained by each factor:
Factor1= 15.137 %
Factor2= 15.062 %
Factor3= 9.975%
Factor4= 9.193%
Factor5= 8.306%
Factor6= 7.693%
Factor7= 7.206%
CONCLUSION
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CONCLUSION:- Customers which are maximum in number (i.e. 45 &
above) have only 10% contribution in online banking
user. this age group people want more security thatswhy they dont want to use new product
As most of the customers are not so well educated so
they find techno product problematic. 95% customers are having SB account, so this shows
that they dont use bank very frequently.
awareness about the products is very low so bank
should pay extra attention in the promotion of theproduct.
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Conclusion Contd..
factor 1 explaining more percentage of
variance than others so we should lay more
emphasis on the variables of factor 1 while
developing the marketing strategy for the
techno products.
We should consider other factors too
according to the percentage explained by
them as our total variance explained was only72%, so more variables are there which a
customer considers while taking these
products from bank
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RECOMMENDATIONS:-1. In order to cut the operation cost of a branch and attract customer in this
highly competitive industry, Canara Bank must concentrate on thepopularization of its technological services.
2. As mass advertisement is not a wise idea for this non-profitable product,awareness of Canara Banks techno-product among customers should bethrough bank staffs.
3. To attract more customers in i-Banking, Canara Bank must introduce some
integrated services (Mobile recharge, Ticket booking etc.)
4. In case of Canara Banks mobile banking, special focus should be made onthe security issues of SMS banking. Developing Mobile applicationssupported on JAVA enabled phone increases the security of mobilebanking as well as it provides the facility of using more services.
5. Pull based mobile banking services are rarely used. It should concentrateon free-of-cost mobile services more.
6. As the main barriers of ATM cum Debit cards popularity is less number ofATM and lack of ATM maintenance, the bank should consider thesepoints.
LIMITATIONS OF THIS RESEARCH
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LIMITATIONS OF THIS RESEARCH:-
There are several limitations of this research. These limitationsshould be considered while taking any decision depending on these
research findings. The major limitations are given below:
1. Our data is based on Canara Banks Saraidhela branch and for timeconstraints, it was not possible to collect data from more branches.
2. As the branch is in semi-urban area. So, the research findingscannot be generalized for all areas.
3. The usage of Canara Banks techno product is based on customersword-of-mouth. The accuracy of such data is always verifiable.
4. There also can be biasness in survey as we were student internssome people might have taken me casually while entertaining us.
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THANK YOU