Chapter

CHAPTER- 4

DATA ANALYSIS AND INTERPRETATION

1. Awareness of people regarding various types of financial services provided by the

banks

Basis Response Percentage

Fully aware 25 36

Had an idea 35 50No idea 10 14

TOTAL 70 100

TABLE NO. 1.1

36

50

14

awareness of financial services

fully awarehad an ideano idea

FIGURE NO. 1.1

Interpretation

From the above chart we came to know that, overall percentage of service class people

having complete knowledge about different types of services provided by the bank is 36%,

those having some idea about it is 50 % and the percentage of people having no awareness of

various services provided by the bank is 14%.

2. Awareness of various banking services provided by banks


ATM 20 30

Credit card 15 21

Phone banking 5 7

Mobile banking 5 7

Internet banking 10 14

Retail bank services 15 21

TOTAL 70 100

TABLE NO. 1.2

30

217

7

14

21

awareness of banking services

ATMCredit Cardphone bankingmobile bankinginternet bankingretail bank services

FIGURE NO. 1.2Interpretation

Banks constitute various channels through which services are provided in terms of ATMs,

Debit Card, Credit Card, Phone Banking, Mobile Banking, Internet Banking etc, of which the

first six have been covered. Amongst these ATM scores the largest used service status

(26.03%) as indicated by above figures. Close on the heels is Debit card (17.75%), Credit

card (14.79%), while phone banking lags behind by scoring the least (11.83 %.)

3. Sources from which the respondents you get the knowledge about the innovative

financial services.


Personal visit 20 29

Executive from bank 10 14

Advertisements 10 14

Friends and relatives 20 29

Others 10 14

Total 70 100

TABLE NO. 1.3

29

14

14

29

14

Sources of knowledge about banking services

Personal visitexecutive from bankadvertisementsfriends and relativesothers

FIGURE NO. 1.3

Interpretation

The above table indicates the percentage distribution of awareness avenues, the major are in

favour of advertisements, which score 34% among different avenues such as personal visit,

executives of the banks, advertisements and friend/relatives. While the least score is for

personal visit and that of other sources.

4. Are you aware of the term “Retail Banking”?


Yes 45 64

No 25 36Total 70 100

TABLE NO. 1.4

64

36

AWARENESS OF RETAIL BANKING

YESNO

FIGURE 1.4

INTERPRETATION:

Above figure shows how many people are aware of the term “Retail Banking” and the

services provided by Banks. 80% of the people are aware of the term “Retail Banking” and

out of that 60% of the people knows all the services provided by banks where as bar which is

in pink colour indicates that 20% of the people don’t know the service which bank provide

are called “Retail Banking”.

5. Are you aware off all Retail Banking Services provided by Banks?


Yes 35 50

No 35 50Total 70 100

TABLE NO. 1.5

5050

AWARENESS OF RETAIL BANKING PRODUCTS

YESNO

FIGURE NO. 1.5

6. Which product they use of Retail Banking?


Bank Deposits 15 22

Loan 25 36

Credit cards 10 14

Debit cards 10 14

Others (Demat services) 10 14

TOTAL 70 100

TABLE NO. 1.6

USE OF WHICH RETAIL BANK PRODUCT

BANK DEPOSITSLOANSCREDIT CARDSDEBIT CARDSOTHERS

FIGURE NO. 1.6

7. Which is the easiest mode of getting services from Banks?


Personal banking 20 29

Phone banking 5 7

Internet banking 10 14

Retail banking 30 43

other 5 7

Total 70 100

TABLE NO. 1.7

29

7

14

43

7

MEANS OF GETTING SERVICES FROM BANKS

PERSONAL BANKINGPHONE BANKINGINTERNET BANKINGRETAIL BANKINGOTHER

8. Are they satisfied with the service provided by ICICI retail banking services ?


Yes 55 79

No 15 21Total 70 100

TA BLE NO. 1.8

79

21

SATISFACTION LEVEL WITH RETAIL SERVICES PROVIDED BY ICICI BANK

YESNO

Figure no. 1.8

Interpretation:

This pie diagram shows, how many people are satisfied with the service provided by Banks.

79% of people satisfied with the services provided by Banks whereas 21% of people not

satisfied with the services provided by Banks. Sometimes with the treatment given by bank is

rude and sometimes they are not co-operative so people feel inconvenience with services

provided by banks.

SWOT ANALYSIS OF RETAIL BANKING

STRENGTH:-1) Emerging as a new growth driver:

For several years banks viewed consumer loan with skepticism. Commercial loans

denominated the loan portfolio as they generated high net yield with low credit risk.

Consumer loans on the other hand involved smaller amount, large staff to handle account and

high default rates. Even regulators across the glob have not encouraged retail banking until

now till very recently. However , over past few years, fierce competition among the lowered

the spread and profitability an commercial loan with deregulation and increase in consumer

loan rate, the risk adjusted return in retail sector have exceed the return on consumer loan.

2) Provides diversified asset portfolio:

Retail banking includes comprehensive range of financial product and services i.e. deposit

product, auto loan, car loan, home loan, loan against equity shares, mortgage loan, payment

of bills, debit card, credit card, etc. These product provide an opportunity for banks to

diversify the asset portfolio with higher profit and relatively lower NPA.

3) Improves standard of living:

Due to major economic reforms in Indian economy there has been an increase in per capita

income which has led to change in life style and growing urbanization have made the Indian

population rise from oblivion and resurge in modern era on this front role of retail banking

arises. Retail banking provide all such product and services(home loan, car loan, personal

loan, etc) to its customer which are required by them to maintain change in there life style in

short it helps in fulfilling aspiration of people through affordable credit.

4) CRM tool:

The individual customer is deity of bank in retail banking segment . All product and services

are designed to satisfy need and wants of its customer. As customer in retail banking belong

to different economic, cultural, educational, and social background there demand is also

varied. It is acceptance of the banking product and satisfaction of customer that yield profit in

this segment. Hence customer Service and Quality implementation through use of CRM tools

will help banks Success in this competitive world of retail banking.

5) Innovative product development :

The scope for development in financial services is unlimited. In retail banking ball is in the

court of bankers where they approach the customer finds out there financial need and

problem, designs the product and services, market them and finally sells them to satisfy its

customer.

6) Economies of scale:

Retail banking enables banks to utilize existing capacities and reaching wider population of

customer. Banks can get the benefits of information and transaction. In process of extending

variety of services, banks are acquiring enormous amount of customer information .if this

information is systematically recorded , banks can efficiently utilize this information in order

to explore new segment and to cross sell new services.

WEAKNESS:-1) Avoids corporate sector :

Retail banking avoids corporate sector totally which is the backbone of Indian economy.

Main reason put forth or this is decline in corporate borrowing . However bank can take

certain step to manage there corporate clients such as lower arte credit, higher amount of loan

etc. Managing corporate client is more easier as they have well defined financial policy and

project and they concentrate on product and services offered rather than on CRM of bank

unlike individual clients.

2) Marketing (Internal and External):

Retail banking requires strong marketing strategies to be adopted by bank both internal and

external . under retail banking segment top level management need employees ds to introduce

product properly to its employees because if the employees are not aware regarding the

product they are offering that product will fail however effective the product is also bank

require to spend lot on its marketing of product to general public because if public is not

aware regarding the product and service how will they opt for it . all this increases the cost

and time required to introduce the product in the market which can reduce or make the

product out dated immediately on its arrival.

3) Changes in technology:

Future of retail banking lies in the hand of IT . Various It solution used by banks such as E-

banking, phone banking , ATM leverage the retail banking product and service offered by

banks. But this has weekend the segment some how . if banks are not able to adobt the latest

technology it may pull back the growth of bank also this technology requires lot of capital

investment and if at all the technology fails then it may shake the customers confidence on

bank and bank may land up in loosing its customer.

4) Reduces the profitability:

It is claimed that retail banking increases overall profitability of the bank but in reality this is

not the case because managing wide range of product and service requires high quality

technology , large number of staff and all this requires high capital investment which reduces

banks profitability.

5. Co-ordination among various department:

Success of retail banking is not the result of one department but is result of various

departments together. If there is lack of co-ordination among various department of the bank

then however strong and effective the may be the product it will fail. Suppose if the front

office is successful in attracting the customer but back office is not able to execute the

delivery of product or service on time then bank may land up loosing the customer although

its CRM was effective.

OPPORTUNITIES:-1) Scope for innovation:

Under retail banking as banks try to provide all those product and services which are

desired by its customer this segment has more scope for innovation banks can keep on

modifying its products as per the market demand which helps them from not being out dated .

2) Rise in per capita income:

The rise of the Indian middle class is an important contributory factor in this segment. The

percentage of middle to high-income Indian households is expected to continue rising. The

younger population not only wields increasing purchasing power, but as far as acquiring

personal debt is concerned, they are perhaps more comfortable than previous generations.

Improving consumer purchasing power, coupled with more liberal attitudes toward personal

debt, is contributing to India's retail banking segment.

3) Economic growth:

Retail banking has immense opportunities in a growing economy like India. In the BRIC

Report India is stated as an economic superpower. According to A. T. Kearney, a global

management-consulting firm, recently identified India as the 'second most attractive retail

destination' of 30 emergent markets. Hence retail banking has high opportunities in India.

THREATS:1. Large disbursement of loans:

The boom in the field of retail banking and the intense composition among the to increases

the customer base has resulted in the large disbursement of customer loans, loans on credit

cards, auto loans, educational loans etc. on easy terms without much scrutiny this has brought

with in an increase in the number of cases of default in loan repayment thus increasing the

bank’s NPAs.

2. Issue of customers dignity:

Banks have been adopting carrot and stick policy by renegotiating loan terms where the

default is genuine and handing over recovery to third parties where default is willful. Most of

the time, the third parties or external agents are not trained to handle the loan repayment

process. Hence, they restore to strong arms tactics with defaulting customers. Many cases of

harassment and invasion of privacy have been reported by the affected parties. Such instances

may hamper the image and corporate vision of the bank in near future.

3) Issue of customer privacy:

Customer privacy is also affected in another way wherein customer service representatives

of the banks ring up customers at any times at their places of work, informing them about

new products and services. This may cause inconvenience to busy customers. It is also

obligation on part of the banks not to share the private information from the records of the

customers with outside agencies like market research groups and other advertisers.

4) IT:

The growth of IT has brought with it a number of frauds perpetrated with the help of

technology and which come under under the domain of cyber crimes. Banks are the victims

of unscrupulous elements who have in many instance hacked banks website and stolen credit

card number , pass word and other confidential information relating to customer.

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