Final Report on Sur Vey

8/9/2019 Final Report on Sur Vey

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INTRODUCTION


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BANK is a financial organization licensed by a government. Its primary activities include providing

financial services to customers while enriching its investors. Many financial activities were allowed over

time. For example banks are important players in financial markets and offer financial services such as

investment funds. In some countries such as Germany, banks have historically owned major stakes in

industrial corporations while in other countries such as the United States banks are prohibited fromowning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity

known as the zaibatsu. In France, bancassurance is prevalent, as most banks offer insurance services

(and now real estate services) to their clients.

The level of government regulation of the banking industry varies widely, with countries such as Iceland,

having relatively light regulation of the banking sector, and countries such as China having a wide variety

of regulations but no systematic process that can be followed typical of a communist syste

Origin of the word

Silver drachm coin from Trapezus, 4th century BC

The name bankderives from the Italian word banco "desk/bench", used during the Renaissance by

Jewish Florentine bankers, who used to make their transactions above a desk covered by a green

tablecloth.[2]

However, there are traces of banking activity even in ancient times.

In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up

their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from

which the words banco and bankare derived. As a moneychanger, the merchant at the bancu did not so

much invest money as merely convert the foreign currency into the only legal tender in Romethat of the

Imperial Mint.

The earliest evidence of money-changing activity is depicted on a silver drachm coin from ancient

Hellenic colony Trapezus on the Black Sea, modernTrabzon, c. 350325 BC, presented in the British

Museum in London. The coin shows a banker's table (trapeza) laden with coins, a pun on the name of the

city.

In fact, even today in Modern Greek the word Trapeza () means both a table and a bank.


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Definition

Cathay Bank in Boston's Chinatown

The definition of a bank varies from country to country.

Under English common law, a banker is defined as a person who carries on the business of banking,

which is specified as:

conducting current accounts for his customers

paying cheques drawn on him, and

collecting cheques for his customers.

"banking business" means the business of receiving money on current or deposit account, paying and

collecting cheques drawn by or paid in by customers, the making of advances to customers, and

includes such other business as the Authority may prescribe for the purposes of this Act.

"banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other similar account

repayable on demand or within less than [3 months] ... or with a period of call or notice of less

than that period;

2. paying or collecting cheques drawn by or paid in by customers[5]


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Suburban branch bank

Wider commercial role

The commercial role of banks is not limited to banking, and includes:

issue of banknotes (promissory notes issued by a banker and payable to bearer on demand)

processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means

issuing bank drafts and bank cheques

accepting money on term deposit

lending money by way of overdraft, installment loan or otherwise

providing documentary and standby letters of credit (trade finance), guarantees, performance bonds,

securities underwriting commitments and other forms of off-balance sheet exposures

safekeeping of documents and other items in safe deposit boxes

currency exchange

acting as a 'financial supermarket' for the sale, distribution or brokerage, with or without advice, of

insurance, unit trusts and similar financial products

Economic functions

The economic functions of banks include:

1. issue of money, in the form of banknotes and current accounts subject to cheque or payment at

the customer's order. These claims on banks can act as money because they are negotiable

and/or repayable on demand, and hence valued at par. They are effectively transferable by meredelivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash.

2. netting and settlement of payments banks act as both collection and paying agents for

customers, participating in interbank clearing and settlement systems to collect, present, be

presented with, and pay payment instruments. This enables banks to economise on reserves

held for settlement of payments, since inward and outward payments offset each other. It also


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enables the offsetting of payment flows between geographical areas, reducing the cost of

settlement between them.

3. credit intermediation banks borrow and lend back-to-back on their own account as middle men.

4. credit quality improvement banks lend money to ordinary commercial and personal borrowers

(ordinary credit quality), but are high quality borrowers. The improvement comes fromdiversification of the bank's assets and capital which provides a buffer to absorb losses without

defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the

bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue

to operate, this puts the note holders and depositors in an economically subordinated position.

5. maturity transformation banks borrow more on demand debt and short term debt, but provide

more long term loans. In other words, they borrow short and lend long. With a stronger credit

quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting

deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of

banknotes), maintaining reserves of cash, investing in marketable securities that can be readily

converted to cash if needed, and raising replacement funding as needed from various sources

(e.g. wholesale cash markets and securities markets).

Law of banking

Banking law is based on a contractual analysis of the relationship between the bank (defined above) and

the customerdefined as any entity for which the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:

1. The bank account balance is the financial position between the bank and the customer: when the

account is in credit, the bank owes the balance to the customer; when the account is overdrawn,

the customer owes the balance to the bank.

2. The bank agrees to pay the customer's cheques up to the amount standing to the credit of the

customer's account, plus any agreed overdraft limit.

3. The bank may not pay from the customer's account without a mandate from the customer, e.g. a

cheque drawn by the customer.

4. The bank agrees to promptly collect the cheques deposited to the customer's account as the

customer's agent, and to credit the proceeds to the customer's account.

5. The bank has a right to combine the customer's accounts, since each account is just an aspect of

the same credit relationship.

6. The bank has a lien on cheques deposited to the customer's account, to the extent that the

customer is indebted to the bank.


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7. The bank must not disclose details of transactions through the customer's accountunless the

customer consents, there is a public duty to disclose, the bank's interests require it, or the law

demands it.

8. The bank must not close a customer's account without reasonable notice, since cheques are

outstanding in the ordinary course of business for several days.

These implied contractual terms may be modified by express agreement between the customer and the

bank. The statutes and regulations in force within a particular jurisdiction may also modify the above

terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship.

Banking channels

Banks offer many different channels to access their banking and other services:

A branch, banking centre or financial centre is a retail location where a bank or financial institution

offers a wide array of face-to-face service to its customers.

ATM is a computerised telecommunications device that provides a financial institution's customers a

method of financial transactions in a public space without the need for a human clerk or bank teller.

Most banks now have more ATMs than branches, and ATMs are providing a wider range of services

to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to

any customer of the bank's account by feeding in the notes and entering the account number to be

credited. Also, most ATMs enable card holders from other banks to get their account balance and

withdraw cash, even if the card is issued by a foreign bank.

Mail is part of the postal system which itself is a system wherein written documents typically enclosedin envelopes, and also small packages containing other matter, are delivered to destinations around

the world. This can be used to deposit cheques and to send orders to the bank to pay money to third

parties. Banks also normally use mail to deliver periodic account statements to customers.

Telephone banking is a service provided by a f inancial institution which allows its customers to

perform transactions over the telephone. This normally includes bill payments for bills from major

billers (e.g. for electricity).

Online banking is a term used for performing transactions, payments etc. over the Internet through a

bank, credit union or building society's secure website.

Mobile banking is a method of using one's mobile phone to conduct simple banking transactions by

remotely linking into a banking network.


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Banks in the economy

Size of global banking industry

Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a record $74.2 trillion.

This follows a 5.4% increase in the previous year. EU banks held the largest share, 53%, up from 43% a

decade earlier. The growth in Europes share was mostly at the expense of Japanese banks, whose

share more than halved during this period from 21% to 10%. The share of US banks remained relatively

stable at around 14%. Most of the remainder was from other Asian and European countries.

The United States has the most banks in the world in terms of institutions (7,540 at the end of 2005) and

possibly branches (75,000). This is an indicator of the geography and regulatory structure of the USA,

resulting in a large number of small to medium-sized institutions in its banking system. As of Nov 2009,

China's top 4 banks have in excess of 67,000 branches with an additional 140 smaller banks with an

undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004, Germany,

France, and Italy each had more than 30,000 branchesmore than double the 15,000 branches in the

UK.

Bank crisis

Banks are susceptible to many forms of risk which have triggered occasional systemic crises. These

include liquidity risk (where many depositors may request withdrawals beyond available funds), credit

risk (the chance that those who owe money to the bank will not repay it), and interest rate risk (the

possibility that the bank will become unprofitable, if rising interest rates force it to pay relatively more on

its deposits than it receives on its loans).

Banking crises have developed many times throughout history, when one or more risks have materialized

for a banking sector as a whole. Prominent examples include the bank run that occurred during the Great

Depression, the U.S. Savings and Loan crisis in the 1980s and early 1990s, the Japanese banking crisis

during the 1990s, and the subprime mortgage crisis in the 2000s. Usually, the governments bail out the

bank through rescue plan or individual public intervention


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Profitability

A bank generates a profit from the differential between the level of interest it pays for deposits and other

sources of funds, and the level of interest it charges in its lending activities. This difference is referred to

as the spreadbetween the cost of funds and the loan interest rate. Historically, profitability from lending

activities has been cyclical and dependent on the needs and strengths of loan customers. In recent

history, investors have demanded a more stable revenue stream and banks have therefore placed more

emphasis on transaction fees, primarily loan fees but also including service charges on an array of

deposit activities and ancillary services (international banking, foreign exchange, insurance,

investments, wire transfers, etc.). Lending activities, however, still provide the bulk of a commercial bank's

income.

In the past 20 years American banks have taken many measures to ensure that they remain profitable

while responding to increasingly changing market conditions. First, this includes theGramm-Leach-Bliley

Act, which allows banks again to merge with investment and insurance houses. Merging banking,

investment, and insurance functions allows traditional banks to respond to increasing consumer demands

for "one-stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase

profitability). Second, they have expanded the use of risk-based pricing from business lending to

consumer lending, which means charging higher interest rates to those customers that are considered to

be a higher credit risk and thus increased chance of default on loans. This helps to offset the losses from

bad loans, lowers the price of loans to those who have better credit histories, and offers credit products to

high risk customers who would otherwise been denied credit. Third, they have sought to increase themethods of payment processing available to the general public and business clients. These products

include debit cards, prepaid cards, smart cards, and credit cards. They make it easier for consumers to

conveniently make transactions and smooth their consumption over time (in some countries with

underdeveloped financial systems, it is still common to deal strictly in cash, including carrying suitcases

filled with cash to purchase a home). However, with convenience of easy credit, there is also increased

risk that consumers will mismanage their financial resources and accumulate excessive debt. Banks

make money from card products through interest payments and fees charged to consumers

and transaction fees to companies that accept the cards. Helps in making profit and economic

development as a whole.


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TOPIC


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Comparative study of services provided bypublic and private banks


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OVER VIEW OFMAJOR PLAYERS


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MAJOR PLAYER OF BANK SERVICE PROVIDERIN VARANASI

I found that following are the major player of bankservice provider in Varanasi city.

. STATE BANK OF INDIA

. PUNJAB NATIONAL BANK

. HDFC BANK

. ICICI BANK


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STATE BANKOF INDIA

Type Public (BSE,NSE:SBI) & (LSE:SBID)

Founded Kolkata, 1806 (as Bank of Calcutta)

Headquarters Corporate Centre,

Madam Cama Road,

Mumbai400 021 India

Keypeople Om Prakash Bhatt,Chairman

Industry Banking

Insurance

Capital Markets

Revenue Rs. 1,135.36 billion (2009) (US$24.57 billion)[1]

Net income Rs. 109.98 billion (2009) (US$2.38 billion)[1]

Totalassets Rs. 11,880.60 billion (2009) (US$257.18 billion)[1]

Totalequity Rs.659.12 billion (2009) (US$ 14.26 billion)[1]

Employees 205,896

Website Official


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State Bank of India

(SBI) is the largest bank in India.The bank traces its ancestry back through the Imperial Bank of

India to the founding in 1806 of the Bank of Calcutta, making it the oldest commercial bank in

the Indian Subcontinent. The Government of India nationalised the Imperial Bank of India in 1955,

with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank of India. In 2008,

the Government took over the stake held by the Reserve Bank of India.

SBI provides a range of banking products through its vast network in India and overseas, including

products aimed at NRIs. The State Bank Group, with over 16000 branches, has the largest branch

network in India. With an asset base of $250 billion and $195 billion in deposits, it is a regional

banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits

and advances, and SBI accounts for almost one-fifth of the nations loans.

SBI has tried to reduce its over-staffing through computerizing operations and Golden

handshake schemes that led to a flight of its best and brightest managers. These managers took the

retirement allowances and then went on the become senior managers at new private sector banks.

The State bank of India is 29th most reputable company in the world according to Forbes .State

Bank of India is one of the Big FourBanks of India with ICICI Bank, Axis Bank and HDFC Bank.


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International presence

State Bank of India (SBI), Mumbai Main Branch India's largest bank, in Mumbai. The government of India is the

largest shareholder in SBI.

The bank has 92 branches, agencies or offices in 32 countries. It has branches of the parent

in Colombo, Dhaka, Frankfurt, Hong Kong,Johannesburg, London and environs, Los

Angeles, Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore

banking units in the Bahamas, Bahrain, and Singapore, and representative offices

in Bhutan and Cape Town.

SBI operates several foreign subsidiaries or affiliates. In 1990 it established an offshore bank, State

Bank of India (Mauritius). It has two subsidiaries in North America, State Bank of India (California),

and State Bank of India (Canada). In 1982, the bank established its California subsidiary, named

State Bank of India (California), which now has eight branches - seven branches in the state of

California and one in Washington DC which was recently opened on 23rd November, 2009.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant

Bank and received permission in 2002 to commence retail banking. It now has five branches in

Nigeria.In Nepal SBI owns 50% of Nepal SBI Bank, which has branches throughout the country. In

Moscow SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.

In Indonesia it owns 76% of PT Bank Indo Monex.

State Bank of India already has a branch in Shanghai and plans to open one up in Tianjin.


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History

The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of

Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal

and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and

the Bank of Madras(incorporated on 1 July 1843). All three Presidency banks were incorporated

as joint stock companies, and were the result of the royal charters. These three banks received the

exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained

until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January

1921, and the reorganized banking entity took as its name Imperial Bank of India. The Imperial Bank

of India continued to remain a joint stock company.

Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank of India, which

is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 30 April 1955

the Imperial Bank of India became the State Bank of India. The Govt. of India recently acquired the

Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the

country's banking regulatory authority.

Offices of the Bank of Bengal

In 1959 the Government passed the State Bank of India (Subsidiary Banks) Act, enabling the State

Bank of India to take over eight former State-associated banks as its subsidiaries. On Sept 13,

2008, State Bank of Saurashtra, one of its Associate Banks, merged with State Bank of India.

SBI has acquired local banks in rescues. For instance, in 1985, it acquired Bank of Cochin in Kerala,

which had 120 branches. SBI was the acquirer as its affiliate, State Bank of Travancore, already had

an extensive network in Kerala.


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Associate banks

There are six associate banks that fall under SBI, and together these six banks constitute the State

Bank Group. All use the same logo of a blue keyhole and all the associates use the "State Bank of"

name followed by the regional headquarters' name. Originally, the then seven banks that became

the associate banks belonged to princely states until the government nationalized them between

October, 1959 and May, 1960. The acquisition of State Bank of Indore will help SBI add 470

branches to its existing network of 11,448. Also, following the acquisition, SBIs total assets will inch

very close to the Rs 10-lakh crore mark. Total assets of SBI and the State Bank of Indore stood at

Rs 998,119 crore as on March 2009.

The Subsidiaries of SBI till date

State Bank of Indore

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Growth

State Bank of India has often acted as guarantor to the Indian Government, most notably

during Chandra Shekhar's tenure as Prime Minister of India. With 11,448 branches and a further

6500+ associate bank branches, the SBI has extensive coverage. State Bank of India has

electronically networked all of its branches under Core Banking System (CBS). The bank has one ofthe largest ATM networks in the region, with more than 9000 ATMs across India. In recent years,

the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian

bank to feature in the top 100 world banks in theFortune Global 500 rating and various other

rankings.


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Type Private

BSE &NSE:ICICI,NYSE: IBN

Founded 1955 (as Industrial Credit and Investment Corporation

of India)

Headquarters ICICI Bank Ltd.,

ICICI Bank Towers,

Bandra Kurla,

Mumbai, India

Keypeople K.V. Kamath,Chairman

Chanda Kochhar, Managing Director & CEO

Sandeep Bakhshi, Deputy Managing Director

N.S. Kannan, Executive Director & CFO

K. Ramkumar, Executive Director

Sonjoy Chatterjee, Executive Director

Industry Banking

Insurance

Capital Markets and allied industries

Products Loans, Credit Cards, Savings, Investment vehicles,

Insurance etc.

Revenue USD 15.06 billion

Totalassets USD 120.61 billion (at March 31, 2009.)


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ICICI Bank(BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India)is India's largest private sector bank bymarket capitalisation and second largest overall in terms of assets.

Bank has total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs.

37.58 billion for the year ended March 31, 2009.[1] The Bank also has a network of 1,640+ branches (as

on February 11, 2010) and about 4,7

21 ATMs in India and presence in 18 countries, as well as some 24million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers through a variety of delivery channels and specialised

subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital

and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in

India.[2]. ICICI Bank has got its equity shares listed on the stock exchanges

at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and itsADRs on

the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest

international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries,

branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes

wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the HiSAVE

savings brand[3]

is operated), offshore banking units in Bahrain and Singapore, an advisory branch in

Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China,

Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is

targeting the NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs.

9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings account

(CASA) ratio increased to 30% in 2008 from 25% in 2007.[4][5]

ICICI Bank is one of the Big FourBanks of India with State Bank of India, Axis Bank and HDFC Bank.

ICICI Bank HQ at BKC Mumbai


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History of ICICI

1955: The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at

the initiative of World Bank, the Government of India and representatives of Indian industry, with the

objective of creating a development financial institution for providing medium-term and long-term

project financing to Indian businesses.

1994: ICICI established Banking Corporation as a banking subsidiary.formerly Industrial Credit and

Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank

Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations -

taking deposits, credit cards, car loans etc.

2001: ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had

acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.

2002: The Boards ofDirectors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI

Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank. After

receiving all necessary regulatory approvals, ICICI integrated the group's financing and banking

operations, both wholesale and retail, into a single entity. At the same time, ICICI started its

international expansion by opening representative offices in New York and London. In India, ICICI

Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it

acquired Grindlays Bank.

2003: ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it

established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore

and representative offices in Dubai and Shanghai.

2004: ICICI opened a representative office in Bangladesh to tap the extensive trade between that

country, India and South Africa.

2005: ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in

assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed

the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre

and in Hong Kong.

2006: ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative offices

in Bangkok, Jakarta, and Kuala Lumpur.

2007: ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State,

and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had

been founded in 1916 and was particularly strong in rural areas. With respect to the international

sphere, ICICI also received permission from the government of Qatar to open a branch in Doha. Also,

ICICI Bank Eurasia opened a second branch, this time in St. Petersburg.


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Controversy

.ICICI Bank has been in focus in recent years because of alleged harassment of customers by its

recovery agents. Listed below are some of the related news links:

RBI warns ICICI Bank for coercive methods to recover loans

ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to recover loans in

Goa. A half an hour investigative report on CNN-IBN's 30 Minutes. The under cover report was

executed by CNN-IBN's Special Investigations Team from Mumbai, led by Ruksh Chatterji

A father while talking to Times of India, alleged that "ICICI Bank recovery agents visited his house

and threatened his family. And his son Nikhil consumed poison because of the tension".

C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical Technology, was

allegedly tortured by recovery agents of ICICI Bank after he defaulted on his loan.They humiliated

me no end. They ripped my shirt, shaved my moustache, cut my hair and gave electric shocks on my

chest and even spat on my face" adds Murthy.

In a landmark case, Allahabad High Court had ordered registration of an FIR against ICICI Bank's

branch manager, President, Chairman and Managing Director on a complaint of75-year-old widow

Prakash Kaur. She had complained that goondas were sent by the bank to harass her and forcibly

took away her truck.[32][33] When the Supreme Court wanted to know about the procedure adopted by

the Bank, ICICI Bank counsel said notice would be sent to a defaulter asking him either to pay the

instalments or hand over the vehicle purchased on loan, failing which the agents would be asked to

seize it. When the Bench pointed out that recovery or seizure could be done only legally, ICICI Bank

counsel said, "If we have to go through the legal process it would be difficult to recover the

instalments as there are millions of defaulters".

An 18-year-old boy was allegedly kidnapped and detained at the Pune branch of ICICI Bank

There have been several other minor legal cases accusing harassment by ICICI Bank

A consumer court imposed a joint penalty of Rs. 25 lakh on ICICI Bank and American Express Bank

for making unsolicited calls.


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HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a incorporated in August 1994, after

the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by

the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of

India. HDFC Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of

the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets ofINR 1006.82 billion.For the fiscal year 2008-09, the bank has reported net profit of Rs.2,244.9 crore, up

41% from the previous fiscal. Total annual earnings of the bank increased by 58% reaching at

Rs.19,622.8 crore in 2008-09.

History

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation Limited

(HDFC), India's premier housing finance company. It was among the first companies to receive an 'in

principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.The Bank

commenced its operations as a Scheduled Commercial Bank in January 1995 with the help of RBI'sliberalization policies.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The

amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore and net advances

of around Rs. 89,000 crore. The balance sheet size of the combined entity is over Rs. 1,63,000 crore.

The amalgamation added significant value to HDFC Bank in terms of increased branch network,

geographic reach, and customer base, and a bigger pool of skilled manpower.

Business Focus

HDFC Bank deals with three key business segments - WholesaleBanking Services, Retail Banking

Services, Treasury. It has entered the bankingconsortia of over 50 corporates for providing working

capital finance, tradeservices, corporate finance and merchant banking. It is also providingsophisticated

product structures in areasof foreign exchange and derivatives, money markets and debt trading and

equityresearch.

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate

to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a

wide range of commercial and transactional banking services, including working capital finance, trade

services, transactional services, cash management, etc. The bank is also a leading provider of structured

solutions, which combine cash management services with vendor and distributor finance for facilitating


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superior supply chain management for its corporate customers. HDFC Bank has made significant inroads

into the banking consortia of a number of leading Indian corporates including multinationals, companies

from the domestic business houses and prime public sector companies. It is recognised as a leading

provider of cash management and transactional banking solutions to corporate customers, mutual funds,

stock exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial products

and banking services, giving the customer a one-stop window for all his/her banking requirements. The

products are backed by world-class service and delivered to customers through the growing branch

network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and

Mobile Banking.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA

(VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card

business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13

million. The Bank is also one of the leading players in the merchant acquiring business with over70,000

Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is

well positioned as a leader in various net based B2C opportunities including a wide range of internet

banking services for Fixed Deposits, Loans, Bill Payments, etc.

Distribution Network

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches spread in 771

cities across India. All branches are linked on an online real-time basis. Customers in over 500 locations

are also serviced through Telephone Banking. The Bank has a presence in all major industrial and

commercial centres across the country. The Bank also has 3,898 networked ATMs across these cities.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and international

Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders


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PunjabNational Bank

Type Public (BSE, NSE:PNB)

Founded Lahore, 1895

Headquarters New Delhi, India

Industry

Banking

Insurance

Capital Markets and allied industries

Products Loans, credit cards, savings, investment vehicles,

insurance etc.

Revenue USD 2.32 billion (2005)

Website www.pnbindia.c


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Punjab National Bank (PNB), was registered on May 19, 1894 under the Indian

Companies Act with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-

owned commercial bank in India with about 4,904 branches across 764 cities. It serves over 37 million

customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac, London.

The bank's total assets for financial year 2007

were about US$60 billion. PNB has a banking subsidiary inthe UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices

in Almaty, Dubai, Oslo, and Shanghai.

HISTORY

1895: PNB commenced its operations in Lahore. PNB has the distinction of being the first Indian bank

to have been started solely with Indian capital that has survived to the present. (The first entirely

Indian bank, the Oudh Commercial Bank, was established in 1881 inFaizabad, but failed in 1958.)

PNB's founders included several leaders of the Swadeshi movement such asD

yal Singh Majithia andLala HarKishen Lal,

[1]Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu

Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the

management of the Bank in its early years.

1904: PNB established branches in Karachi and Peshawar.

1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle.

1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued

to operate in Pakistan.

1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became Bharat Nidhi

Ltd.

1961: PNB acquired Universal Bank of India.

1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon).

September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan

of Indian banks, including PNB's headoffice, which may have moved to Karachi. PNB also had one or

more branches in East Pakistan (Bangladesh).

1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.

1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on

July 19, 1969.

1976 or 1978: PNB opened a branch in London.

1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of

India after the branch was involved in a fraud scandal.

Hindustan's 142 branches to PNB's network.


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1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added

1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.

1998: PNB set up a representative office in Almaty, Kazakhstan.

2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. At the time of the

merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholdersreceived no payment for their shares.

PNB also opened a representative office in London.

y .2004: PNB established a branch in Kabul, Afghanistan.PNB also opened a representative office

in Shanghai.PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer

funds easily between India and Everest Bank's 12 branches in Nepal.

y 2005: PNB opened a representative office in Dubai.

y 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one

in London, and one in South Hall. Since then it has opened a third branch in Leicester, and is

planning a fourth in Birmingham.

y 2008: PNB opened a branch in Hong Kong.

y 2009: PNB opened a representative office in Oslo, Norway, and a second branch in Hong Kong, this

in Kowloon.

y 2010: PNB received permission to upgrade its representative office in the Dubai International

Financial Centre to a branch


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RESEARCHOBJECTIVES


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OBJECTIVES

Primary Objective- The main objective of this study isto find out the services provided by the Banks (Public vsPrivate) in the city.

Secondary Objective-

1:To analysis the services offered by private and publicbanks.

2:To know about the various promotional tools of private

and public sectors banks in city.

3:To make a comparative analysis of customersperception for promotional strategies of private and publicsector in city.

4:To find out the key promotional changes adopted by

banks on the basis of customers responses.

5:To find out the leukemia of customers satisfaction.


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RESEARCHMETHODOLOGY


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RESEARCH METHODOLOGY:

Siginificance ofresearch:This project present a view about themost prefence in Varanasi city.

Research design: To know about the present condition or statusregarding particular item or group of item descriptive research isconducted.The descriptive study describes the state as it exists at

present.

Data collection method: In the field survey project I am usingthe primary data collection method. Because it provides more scope forgetting required information.I am using questionnaire method to collectthe data.

Universe ofstudy:The universe is entire group of item.Taken itemthat researcher wants to study and generalize.My universe was all the

bank service holder of Varanasi.

Sample unit: The sample unit is the basic unit containing theelements of the population to be sampled. My sample unit is account

holder.

Sampling techniques: As the universe is quite large. So arelatively small group of individuals are selected for representing the


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whole universe. I follow non-probablistic convience sampling for myservey.

Sample tools: Sample size refers to number of person to be

conducted survey. I have selected the sample size of 100.

Staticaltools: Bar-Diagram,tables,pie-chart.


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ANALYSIS & INTERPRETATION


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.


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FINDINGS


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FINDINGS

1: Most of the people have an account in SBI (45%), 25% inPNB,20% in ICICI, 10% in HDFC.

2.I found that maximum people want to open account in publicbanks.

3. I also found that mostly businessman and private sectorworking people prefer to private banks.

4.Maximum facilities are provided by private banks.

5.The banking process like billing, withdrawing, depositing inpublic banks are very slow.

6.Private banks are very good in updating their customersregarding new services and facilities.

7.Mostly government employees are the customers of publicbanks.

8.Mostly account holder of public banks are highly dissatisfiedwith the process of loans, updating new services etc with theirrespective banks.


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CONCLUSION


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Conclusion

Bank is a financial organization licensed bya government. Its primary activities include providingfinancial services to customers while enriching itsinvestors. Many financial activities were allowed overtime. "banking business" means the business ofreceiving money on current or deposit account, payingand collecting cheques drawn by or paid in bycustomers, the making of advances to customers, andincludes such other business as the Authority mayprescribe for the purposes of this Act.

.After observing the questionnaire i came to this point thatmost preferred banks are public sectors.approximatey60% peoples are the customers of public sector banks.


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SUGGESTIONS


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SUGGESTIONS

. Private sectors banks should improve theie image in the eyes ofgovernment employees.

. Private banks should launch some direct marketing process fortheir existing as well as non-existing customers.

. Public sectors banks should also improve their facilities toovercome the customers problem.

. Every sector banks should do some extra things for theuneducated people also.


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LIMITATIONS


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LIMITATION

. As the time was less for the survey so some selected places wereCovered

. The main difficulty was language problem,as the questionnaire was inEnglish so some people were not able to understand the question.

. Few people did not have time to fill the questionnaire.

. Few people were not responding as I expected from them, they werereaching as the survey is conducted for false purpose.


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BIBLIOGRAPHY


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BIBILOGRAPHY

Books:

.Research methodology ( Methods and Techniques)- C R Kothari.

. Research methodology in social sciences- P C Tripathi.

Websites:

.www.sbi.com

.www.icici.com

.www.hdfcbank.com

.www.pnbindia.com

SEARCH ENGINE:

.www.google.com


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ANNEXURE

Final Report on Sur Vey

Documents

Transcript of Final Report on Sur Vey