Indian Bank - All Chapters

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CHAPTER I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

ORIGIN OF BANK

The origin of the word bank in the modern sense, to the German

word Bank which mean, heap or mound or joint stock fund. From this, the

Italian word Banco meaning heap of money was coined.

Some people have the opinion that the word bank is derived from

the French words bancus or banque with means a bench. Initially, the

bankers the Jews in Lombardy, transacted their business on benches in the

market place and the bench resembled the banking counter. If a banker

failed, his banque (bench) was broken up by the people, hence the word

bankrupt has come. In simple terms bankrupt means a person who has lost

all his money, wealth or financial resources.

S.No Pronunciation Country

1 Bank German (Joint stock fund)

2 Banco Italian (Heap of money)

3 Bancus /

Banque

French (Bench/chest a place where valuable

are kept)4 Bank English (Common meaning prevalent today

i.e., as an institution accepting money as deposit for

lending)

BANKING

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Meaning

A bank is an institution, which deals with money and credit. This

bank is an intermediary, which handles other peoples money both for theiradvantage and to its own profit.

Definition

Dr.L.Hart, says that the bankers as One who in the ordinary course of

business honours cheques drawn upon him by persons from and for whom he

receives money on current accounts.

Sir John Paget says that, No person or body corporate otherwise can

be a banker who does not,

Take deposit accounts

Take current accounts

Issue and pay cheques and

Collect cheques

for his customers.

BANKER

A person who is doing the banking business is called a Banker. A

banker must be a man of wisdom. He deals with others money but with his

own mental facilities. A banker is not only acting as a depository agent but

also as a Depository of Financial Advices.

CUSTOMER

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The term customer of a bank has not been defined by any law. As

per the views of sir John paget, to constitute a customer there must some

negotiable course or habit of dealing in the nature of regular banking

business. According to this definition, to constitute a customer of a bank, a

person has to satisfy the following conditions.

a. There should be a habit of dealing between him and the bank.

b. The transaction should be in the nature of regular banking business

i.e., frequency of transactions should be there.

FEATURES OF BANKING

1. DEALING IN MONEY

The banks accept deposits from the public and advancing them as

loans to the needy people. The deposits may be of different types current,

fixed, saving, etc., accounts accepted on various terms and conditions.

2. DEPOSITS MUST BE WITHDRAWABLE

The deposits made by the public can be withdrawable by cheques,

draft or otherwise, i.e., the bank issue and pay cheques. The deposits areusually withdrawable on demand.

3. DEALING WITH CREDIT

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The banks are institutions that can create credit i.e., creation of

additional money for lending. Thus, creation of credit is the unique

feature of banking.

4. COMMERCIAL IN NATURE

Since all of the banking functions are carried on with the aim of

making profit, it is regarded as a commercial institution.

5. NATURE OF AGENT

Besides the basic functions of accepting deposits and lending money

as loans, banks posses the character of an agent because of its various agency

service.

CLASSIFICATION OF BANKS

The banking Institution forms an indispensable part in a modern

developing society. They perform varied function to meet the various

sections of the society. On the basis of the function performed the banks can

be classified in to the following types.

1. Commercial Banks

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The commercial banks mobilize deposit from the public, which are

repayable on demand or at short notice. They lend to traders and

manufacturers for short periods. They provide the working capital to the

business in the form of overdraft and cash credit.

2. Investment Banks or Industrial Banks

Investment banks provide medium and long-term finance to industries

to meet their fixed capital requirements. For existing industries, they lend

for expansion and modernization of industries. They help to promote new

industries by underwriting the issue of securities. The industrial banks

secure funds through share capital and debentures. They also receive

deposits from the public for long period.

3. Exchange Banks

Exchanges banks specialize in financing the foreign trade. They

supply necessary foreign exchange required for settlement of transactions in

foreign trade. The exchange banks discount foreign bills of exchange.

4. Co-operative Banks

Banks formed on the principles of co-operation are called co-operative

Banks. They provide short-term credit to agriculturist, artisans, small

farmers and small-scale industries.

5. Land Development Banks

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Agriculturists require short-term and long-term loans. Land

development banks provide long-term loans to agriculturists for purchasing

tools and equipments and cattle and making permanent improvement on

land.

6. Savings Banks

Savings banks are specialized institutions to collect savings from the

poor and middle-income people of the society. These banks primarily

intended to encourage habits of thrift and savings among people with small

incomes.

7. Central Banks

Every country has generally one central bank. The central bank act as

the leader of the money market supervising, controlling and regulating the

activities of the commercial banks and other Financial Institution.

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BANKING SYSTEM IN INDIA

Banking system plays a vital role in the economic development of a

country. The structure of the banking system in India consists of two parts.

INDIGENOUS BANKS

The Indigenous Bankers occupy an important place in the Indian

Financial System. From ancient times, Indigenous Banking system has been

in existence in Indian. The Indigenous bankers lend money, act as money

changes and finance internal trade by means of internal bill of exchange.

The Indigenous Bankers do not have contact with other sections of the

banking world.

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Banking System

Money

Lenders

Indigenous

Bankers

Organized Unorganized

Commercial

Bankers

Co-operative

Bankers


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The organized sector consists of commercial banks and co-operative banks.

1. Commercial Bank

Commercial banks are the oldest banking institutions in the organized sector.

They cuter to the needs of trade, commerce, industries, agriculture, small

business, transport and other activities with a wide network of branches

through out the country. Commercial banks command a major share in the

total banking operations.

2. Co-operative Bank

Co-operative Bank, another component of the Indian banking system,

originated with the enactment of the Co-operative Credit Societies Act of

1904. The act provided for the establishment of credit societies for financing

agriculturists. Under the act number of co-operative credit societies were

started. The Co-operative Credit Societies Act, 1912 provided for

establishment of co-operative central banks by a union of primary credit

societies.

STATEMENT OF THE PROBLEM

One of the major concerns of Indian planning has been the

development of Weaker Sections of the society particularly those in rural

areas. Paramathi Indian Bank gives loans to needy people and supply

agricultural inputs to rural people.

Indian has still attained social, moral and economic independence in

terms of its seven thousand villages as distinguished from its cities and

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towns. The political idea of the bank is creating self-reliant power for the

people. But so far no serious attempt has been made to bring out the sailent

feature of the Paramathi Indian Bank. Hence the present study is undertaken

by the scholar.

1.2 SCOPE OF THE STUDY :

The entire survey was conducted for understanding the customer

satisfaction towards the services of Indian Bank, Paramathi Branch, from

this study the preferences and problems of the customers can be met. The

customers views about the quality of banking services can be know. This

study helps the banker to improve services offered by it to its customers.

RESEARCH METHODOLOGY :

Data have been collected both through primary and secondary sources.

The primary data was collected by the administration of questionnaires to

elicit the information from the customer. The secondary sources were

collected from banks records, books, journal of bank of RBI Bulletin and

from the website of Indian Bank.

The questionnaire for customers was prepared and pilot study was

conducted in Paramathi town. The list of customers was taken from the

banks records.

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SAMPLING TECHNIQUE :-

The study covers only those customers having account in Indian Bank,

Paramathi Branch. In the present study convenience sampling technique was

followed.

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1.3 OBJECTIVES OF THE STUDY :

1. To study the origin & growth of Indian bank Paramathi Branch.

2. To study socio-economic factors of selected customers of the bank.

3. To know about the type of account held by the customers and their

operations.

4. To analysis the customer satisfaction prevailing among the customers

of Indian Bank, Paramathi.

5. To offer suggestions for the improvement of the bank.

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1.4 LIMITATIONS OF THE STUDY :

The researcher had taken all the necessary steps to carry out the

research flawlessly. However due to time and cost factors, the samples were

restricted to 50. The study covers only the customers of Paramathi Branch

of Indian Bank only the customers viewpoint has been studied but the banks

views has not taken for the study. The findings of this study cannot applied

to other branches of the bank.

1.5 CHAPTER SCHEME :

First chapter deals with the introduction, statement of the problem,

objectives of the study and its scope. It also contains the details regarding

research methodology, sampling techniques, the limitation of the study and

chapetrisation.

The second chapter contains the review of literature.

The third chapter gives us the profile of Indian Bank, Paramathi

branch.

The fourth chapter has the analysis and interpretation of data.

The fifth chapter contains the summary of Findings, Suggestion and

Conclusion.

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CHAPTER - II

REVIEW OF LITERATURE

2.1 INTRODUCTION

Banking is essentially service oriented industry and it has to sustain

itself on its service. The survival and growth of a bank does not depend on

its size or funds. Rather it depends on its ability to provide qualitative

service to its customers on a sustained basis.

Every business enterprise including a bank exists to serve customers

to satisfy the customer in the basic purpose of every business. Long ago

Mahatma Gandhi said, A customer is the most important visitor on our

premises. He is not dependent on us, we are dependent on him. He is not an

interruption in our work; he is the purpose of it. He is not an outsider on our

business he is a part of it. We are not doing him a favour by serving him.

He is doing us a favour by giving us an opportunity to do so. Thus, the

customer is the king.

Earlier the banks did not assign due weightage to the behavioural

profile of customers however the business results remained satisfactory since

the intensity of competition was low.

Today we find the competition at its peak. This is due mainly to the

fact that a number of foreign banks and a few of the private commercial

banks have started innovating their core and peripheral services and the

sophisticated communication technologies have transmitted the latest

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developments and attractions to the users and prospects which has raised the

level of their expectations. The increasing rate of literacy, growing

denomination of corporate culture, liberal business regulations, significant

developments in the information technologies and positive efforts made by

foreign banks for excelling competition have changed the business

environment.

2.2 WHAT IS CUSTOMER SERVICE

The word service has many dimensions and perceptions of good

service vary from one type of customers to others. It may relate to courtesy,

promptness, employee attitudes, physical facilities, customer identification

and recognition, speed and clarity of communication etc., It gets manifested

in the care, concern, commitment and sensitivity shown by the bank staff

while dealing with customers.

In banking industry, customer service may be defined as the

perception of customers about eh services they receive from a bank.

Customer service is a dynamic concept as it varies from time to time. The

expectations of people change over time. With growing public awareness

and expectations, dissatisfaction with public sector banks has increased. It is

therefore, necessary to continuously assess and reassess how the customersperceive bank services, what are the new and emerging expectations and

how can they may be satisfied on a continuous basis services offered by the

bank.

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2.3 CUSTOMER RELATIONSHIPS

Any person that uses the services of a bank on a regular basis may be

called a customer of a bank. A bank has multiple relationships with its

customers. It is a debtor of its depositors, a creditor of its borrowers, a

trustee of its locker holders, an agent of its customers for their instructions.

There are several types of bank customers and banks offer several

schemes / facilities to meet their requirements. In addition to various types

of deposit schemes and loan schemes, banks offer agency and consultancy

service. A bank can provide efficient customer service by matching its

schemes / services to the needs of different types of customers. If the

customer selects a scheme which he subsequently finds out is not meeting

his requirements fully he gets dissatisfied. In order to ensure customer

satisfaction bank staff may also have to guide the customers in making the

right choice from among the available range of services and facilities.

Thus, to build satisfactory relationships with customers, it is necessary

to:-

1. Identify and understand the needs and expectations of customers.

2. To tailor services to these needs and expectations and3. To deliver the services with speed, accuracy, courtesy and concern.

2.4 CUSTOMER ORIENTED STRATEGIES

In order to develop and maintain long lasting customer relationships

and to provide excellent customer service banks may use the following

strategies:

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Service Standards

Some banks have developed clearly defined corporate standards for

customer service in respect of each of their customer segments. These

standards are communicated to all their frontline field staff for effective

implementation. Time standards for completing each service is an example

of such standards. The Indian banks Association has evolved and

communicated to banks a set of time norms for completing some of the

common banking services.

Attention to Details

Quality is not a matter of accident. At every stage a deliberate effort

has to made to create the right impression on the customer. Therefore, in

every mode of customer interaction attention to details is necessary. Every

telephone call or letter or standing instruction or a complaint should be given

due attention.

Courtesy

In order to attract and retain customers, treating the customers well isabsolutely essential. Surveys conducted have shown that one of the main

reasons for shifting amounts by customers is dissatisfaction with the

behaviour of the staff in a particular branch.

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Personalised Service

A customer is not a mere statistic or a faceless entity. Customers are

not just token numbers and account numbers. They are persons with feelings

and emotions. They sustain banks through their patronage. Bank employees

should make all efforts to identify them by name. This is a hall work of

personalized service. Some foreign banks have introduced the concept of

Personal banker or Relationship officer in selected large branches where

it is difficult for the branch manager to maintain personal contact with all the

important customers. Under this management the branch manager assigns a

specific number or accounts to specific officers who will be providing

personalized service to them. This approach may be used only by large

banks on very selective basis in India.

Communication

While building relationship and ensuring customer orientation are

good slogans at the corporate level, more specific customer targets will have

to be set at the branch level. For example, no customer is kept waiting for

more then X minutes. Communication plays a vital role in operational sing

these targets.

Customer Consciousness

Lofty ideal and written directives from the head office are by no

means adequate for ensuring excellent service. It is essential to create a

climate that encourages and regards efficiency, creativity and customer

responsiveness. It involves motivating employees, training. The bank whos

every staff member views the customers positively stands apart from other

banks.

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Relationship Banking

In this approach the focus is on developing long-term business

relationship with customers rather than on the particular transactions. Banks

plan to meet the total banking requirements of customers to obtain repeat

business. The initial transaction is only the starting point for providing total

customer satisfaction. For building up profitable customer relationship, it is

necessary to know and understand the customer and his banking needs.

Banks prepare customer profiles for this purpose. After such understanding,

information and guidance is provided about various schemes and facilities so

that the customer can make the right choice.

Retention Banking

It is corollary to the relationship banking the emphasis here is on

retaining the old and existing customers. Retention banking implies the need

for setting up a mechanism whereby bank staff can keep in constant touch

with the customers. This may be done through personal visits, telephone

calls, letters and publicity literature. Customers remember with gratitude the

support and advice they receive from their banks in times of need and

reciprocate with loyalty to their banks in times of need and reciprocate with

loyalty to their bank. It takes time, energy and efforts to retain customersand establish solid relationships with them. Nevertheless banks are finding

these efforts worth while and profitable. Retaining a customer is often

cheaper than finding a new customer.

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2.5 CS IN CUSTOMER SERVICE

In the traditional banking under advances the importance has been

given to THREE c-s viz., character, capital capacity. Here we are going to

deal with certain other Cs, which are having a bearing on customer service.

They are :

Confidence

To do any work the person undertaking the same should have the faith

in him. In other words, he should develop the habit of confidence in him.

With confidence if he takes up and work he will be able to achieve the

desired result. Even in case he comes across any problem, the confidence he

has will help him to overcome the situation by taking appropriate decision.

The decision may be to direct the concerned person to the higher authority or

he himself is in a position to dispose of the problem by arriving at the

solution. Further the confidence in him forces him to arrive at the result and

ultimately resulting in getting what is called the satisfaction for doing a

particular act.

Commitment

To obtain the desired level and result one of the key areas required is

whole hearted commitment towards the job undertaken. This itself

motivates the concerned employee to reach the goal viz., doing the job to his

satisfaction and that of others also. A committed man always makes a man

to aim at achieving things and forces him to do something positive to meet

the situation.

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Clarity

Any assignment requires some basic knowledge in the area to be

handled. This includes having a clear idea about the requirement according

to the situation. First of all the person to discharge the duty has to invariably

understand the problem with clear mind. The way in which the things are

perceived has got a direct bearing on the end result. A person with clear

mind and clear thought can always get good and desired results.

Challenge

A routine job may be boaring at times. Every human being requires

some sort of change, which includes the work situation also. Depending

upon the environment there is likelihood of workers coming across changes

in their work situations. Each and every assignment may bring with itself

both positive problems as well as negative problems. The results of which

are achieved in a direct way without much efforts may be classified as

positive problems and others for which a person has to think put in more

efforts may be called as negative problems. Invariably to counter the latter

type of problems a person has to put in extra efforts. Besides the efforts the

person has to possess the power to meet the challenge. If the employee feels

that the has got the capacity to face any situation he is ready for meeting anychallenge. Such persons are prepared to face any kind of problems and will

never go to the extent of passing of the problems to any one.

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2.6 COMPLAINTS BY THE CUSTOMER

Customers face delay in depositing and receiving cash. Social notes,

cut notes and small notes are not accepted at the counters despite RBI

directions. Customers have to make several trips to get their passbooks up

dated. In many cases the passbooks become untraceable.

The following types of complaints are commonly made by bank

customers :

1. Delays in encashing cheques, in depositing money, in getting bank

drafts, in issuing cheque books, in granting loans and in clearance

of outstation cheques. Customers complain that they have to stand

in queues for an unduly long time.

2. Inaccuracy in transactions and correspondence entries are not

correctly and legibly made in the pass book.

3. Faulty, delayed and unhelpful decisions.

4. Lack of elementary courtesy and discipline.

5. Lack of uniformity in bank charges. Some of these charges are

said to be high.

6. Complicated documents and cumber some procedures.

7. Malafides, favouritism and corruption in granting advances.8. Lack of counseling and guidance facilities.

9. General attitude of unconcern and apathy for clients.

10.Late dispatch of mail.

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2.7 STEPS IN HANDLING CUSTOMER COMPLAINTS

Like other organizations, a bank too should have machinery for

dealing effectively with customer complaints. A market oriented bank is

differentiated from the others on the basis of the attention given to customer

complaints. Successful organizations realize that prompt attention to

customer complaints is a essential ingredient for a profitable customer

relationship. Just as a satisfied customer tells others, an unhappy customer

too tells others about his experience. Evidently bad publicity travels faster

than good publicity. This makes it imperative that banks attend to customer

Complaints promptly and effectively.

In a service organization like a bank, handling of complaints should be

given a high priority. Some branch managers tend to react sharply to any

complaint from customers. They attempt to withhold complaints reaching

divisional top management. Customer complaints are the best tools for

branch manager who sincerely wants improvement in customer service.

Branch managers would not know what is wrong at their branches without

complaints. Some essentials relating to the effective redressal of customer

complaints are given below :

Senior level and well-experienced functionaries should receiveand attend to complaints.

Complaints should be treated as symptoms of some disorder or

malfunctioning.

The complainant should not be made to run from pillar to post. He

should be guided to the right person / department, no customer

likes to repeat his grievances to several persons.

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The complainant should not be given the impression that the bank

officer is anxious to get rid of him.

A sincere effort should be made to understand the nature and cause

of the complaint. The person handling the complaint should be

attentive.

Prompt attention should be paid to all complaints. Written

complaints should be acknowledged within 24 hours.

Adequate information and actual details should be provided to the

complainant through relevant pamphlets and brochures.

Phoney and biased complaints should be handled with fact and

patience.

The complainant should not be driven to approach authorities

outside the bank as it causes considerable damage to the banks

image.

2.8 CUSTOMER FEED BACK

Treat every complaint an opportunity to correct oneself rather than as

a threat to existence. Complaints indicate the unfulfilled expectations of a

customer. The bank manager should thank the complainant for free

feedback and for highlighting the weak points. All complaints should be

taken seriously and objectively offer a straightforward apology of a mistake

and avoid arguments. Listen to the complaint patiently. Thus, patience,

courtesy and prompt actions are essential while dealing with customer

complaints.

Customer feedback should form the basis for making improvements in

the quality of service and service schemes. Marketing departments in banks

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should evaluate bank services in terms of customer perspectives. For this

purpose, they will have to institute a suitable mechanism to collect the

required feedback from customers.

Obtaining customer feedback is a continuous process. Its purpose is

to improve the service and image of the bank. It provides an opportunity to

recognize the customers problems and redress them thereby wining the

goodwill of customers. This feedback is designed in three parts. Part A

covers quality and efficiency of service besides reflecting customer

satisfaction. Part B reveals grievances of customers. Par C seeks

suggestions from customers, the feedback covers all types of transactions.

The customer is required to rate the services over five-point scale.

2.9 HOW TO IMPROVE CUSTOMER SERVICE :-

Improving customer service is a never-ending process requiring

sustained efforts. It is also teamwork as only a team can offer the quality

expected by customers. The branch manager as the leader of the team,

should make employees aware of their obligations and enforce them. The

action plan for improving the quality of customer service at a branch may

consist of the following steps:

1. It is necessary to provide orientation and training to bank personnel.

Better job knowledge and access to information will enable them to

take decisions confidently and quickly.

2. Only motivated employees can provide prompt and efficient services

to customers.

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3. Introduction of computers and mechanical devices will help to

improve customer service. Most customer complaints pertain to

delays and inaccuracy in transaction. This is where modern

technology can be very helpful.

4. Bank staff should be provided adequate authority for taking on the-

spot decisions.

5. Customers should be provided knowledge and information concerning

various schemes, rules, procedures, etc., of the bank. A meeting of

customers every month may be arranged where in bank staff would

educated them.

6. Customer satisfaction is impossible unless the employees are

disciplined and have a sense of responsibility.

2.10 GOIPORIA COMMITTEE ON CUSTOMER SERVICE

The Goiporia committee on customer service in banks had made wide-

ranging recommendations to bring about an improvement in customer

service. After examining the recommendations, the Reserve Bank issued

detailed guidelines, in 1992-1993, to the banks relating to.

i. Advancing of working hours of staff to ensure service at the beginning

of working hours of banks.ii. Extension of business hours

iii. Introduction of bank order in various denominations.

iv. Acceptance of small denomination of notes.

v. Exchange of mutilated and soiled notes.

vi. Speedy communication of information of interest rate changes to

branches.

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vii. Payments of interest on delayed collection of outstation

instruments.

During 1993-94, further follow up actions were taken up. In accordance

with the observations of the committee that the banks should undertake

periodic evaluation of the extent of actual implementation at the grassroots

level of the various recommendations of the committee, a uniform format of

customer service areas, has been evolved in consultation with the Indian

Banks Association. Banks were also advised to include more items for such

audit and instruct their branches to submit a quarterly report to the

controlling offices which, in turn would consolidate these reports and

forward to their head office on half yearly basis for consideration of their

Chairman / Board. In addition, banks are required to submit a half yearly

brief review to the RBI. Further, a format of complaint book on customer

service has been designed with adequate number of perforated pages so that

the complainant can be given an acknowledged copy readily. A copy of the

complaint is required to be forwarded to the controlling office along the

remarks of the branch manager indicating the position regarding the disposal

of the complaint with in a time frame.

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CHAPTER III

PROFILE OF THE BANK

3.1 INTRODUCTION

Namakkal District has been selected for study because a place like

Namakkal is at a strategic point on the National Highway 7 with its heavy

concentration of Lorry Body Building Industries and Lorry Transport. In

olden days this place was called "Namakkal". Now-a-days it is called

"Namakkal" because of growing civilization. Lorry Body Building

Industries and Transport add pride to Namakkal. It enjoys a prime place in

the poultry industry with almost all the eggs getting moved to every corner

of India and abroad. Over the year Namakkal has become popular for lorry

transport business and there are more operators clustered in and around the

town. As Namakkal is bustling with activities in poultry industry, transport

etc., the educated unemployed youth has every chance to find a job here.

Location

Namakkal District is one of the new district created on 1.1.97. The

District is bounded by Salem on the North, Karur on the South, Perambalur

on the East and Erode on the West.

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TEMPLES

1. Mohanur Sivalayam Asala Thebeswarar Madukarai - Amveli

Amman.

2. Kollihills Arappaleeshwaran Temple - Shivaalayam.

3. Tiruchengode Arthanarishwarar Temple

4. Namagiri Amman Temple.

5. Lakshmi Narashima Swamy Temple.

6. Ranganathar Temple.

7. Anjaneyar Temple.

8. Malai Varadharsar Temple.

9. Kandhagiri Murugan Temple.

lO.Thathagire Murugan Temple.

AREA

The geographical area of the district is 3,36,335 Hr. which is divided

into 4 Taluks viz., Namakkal, Paramathi, Tiruchengode and Rasipuram

of these Namakkal Taluk has the most extensive coverage of 1767.75

sq.kms. The District as a whole comprises of 4 Municipalities and 346

Village Panchayats with 436 Revenue Villages.

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ADMINISTRATIVE SETUP

For administrative purpose the district has been divided into 15 Panchayat

unions, which are detailed below,

TALUKS AND BLOCKS

S.No TALUKS BLOCKS

1 Namakkal Taluk

Namakkal, Puduchatram,

Sendamangalam, Erumapatty, Mohanur,

2 Rasipuram Taluk Rasipuram, Vennandur, Namagiripettai

3 Paramathi Taluk Paramathi, Kabilarmalai

4 Tiruchengode

TalukTiruchengode, Mallasamudram,

Elachipalayam, Pallipalayam.

3.3 REGISTERED OFFICE ADDRESS

Indian Bank, Katcheri Street, Near Old Bus Stand, Rasipuram,

Namakkal District.

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3.5 LOGO

The Bank's Logo consists of three circling arrows arranged around a central

point. The three arrows stand respectively for savings, investments and

surplus and that savings lead to investment, investment to income and

income in turn to surplus or savings in a circular chain.

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SLOGAN:

HOUSE JOURNAL

The Bank has a House Journal by name 'INDIMAGE' which is brought out

once in two months, staff members can contribute stories, essays, poems

written by them, news items covering individual achievements, and local

news of interest. The House Journal acts as a medium communication for the

employees and aims at prompt cordial relationship among the staff members

by informing, educating and entertaining

.

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3.6 BOARD

The Board held, in all 12 meetings during the year, the Management

Committee held 14 meetings, Audit Committee 8 meetings, Vigilance

Committee 3 meetings, Technology Committee 2 meetings and Risk

Management Committee 3 meetings. As per the directives of RBI, the Board

in its meeting held on 31.01.2004, constituted a Special Committee with the

CMD as the Chairman, for monitoring of large value frauds.

Shri MBN Rao took over as Chairman and Managing Director of the

Bank with effect from 04.12.2003. The Board places on record its

appreciation of the services rendered by smt.RanjanaKumar as CMD, who

demitted office on 21.11.2003 on her appointment as chairperson of

NABARD. Dr.Rabi N. Mishra, General Manager, Reserve Bank of India

staff college was appointed director with effect from 12.01.2004 in the place

of shri S.Karuppasamy.

The Board also places on record the services rendered by the directors,

Shri.S.Karuppasamy, Shri.M.P.Radhakrishnan, Shri.O.R.Muthukrishnan,

Shri.P.V.Maiya, Shri.P.V.Indiresan, Shri.M.D.Sharma and Shri.S.N.Satpute,

whose term expired during the year.


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3.7 MEMBERS LIABILITY

The following members are liable only upto their share capital. They are,

1. Lunatic, Insanity or Minor Persons

2. Government.

3.8 SOURCES OF FUNDS

Share capital

Deposits

Recurring deposits

Savings fund

Vidhya funds scheme

Non-resident fund

Surplus assets or reserve fund

Other extra income

3..9 SHARE CAPITAL

The share capital of a Bank is divided into units, called shares,

contributed by the members, the ownership of which determines the rights

and obligations of the holders to the Bank and its creditors.


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3.10 DEPOSITS

INTRODUCTION OF ACCOUNTS

All deposit accounts should be properly introduced. The Branch

Manager is vested with discretion to accept introduction for opening a new

account from any respectable member of the local community known to

himself or any member of the staff, although the introducer himself may not

be an account-holder.

Passport and postal identification cards are deemed to be adequate

identification.

NOMINATION

Nomination facility is available to depositors in their existing and new

accounts.

The facility extends to all persons who hold Deposit Accounts, Safe

Custody Accounts or Safe Deposit Lockers in their individual capacity and

not representative capacity.

In case of deposit made in the name of a minor, the person lawfully

entitled to act on behalf of the minor can make the nomination.

Nominations can be made, cancelled or varied in the prescribed forms

available with the bank.


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The Interest rates offered by Indian Bank at present is as follows :

TABLE 3.1

INTEREST RATE OF DEPOSIT

S.No.NUMBER OF

DAYS/YEARSINTEREST RATE

1 Upto 7 days to 14 days 3.5%

2 15 days to 29 days 4.5%

3 30 days to 45 days 4.75%

4 46 days to 90 days 5%

5 91 days to 179 days 5.25%

6 180 days to 364 days 5.6%

7 Upto 1 year to 2 years 5.75%

8 2 years to 3 years 5.75%

9 3 years to 5 years 6.1%

10 Above 5 years 6.25%


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STATEMENT OF CLAIMS IN ACCOUNTS OF DECEASED

DEPOSITS

Power have been delegated as below, to Branch Managers,

Regional Managers and Zonal Managers in the matter of recognition and

settlements of claims relating to the accounts of deceased deposits.

All Branch Managers (other - Claims upto Rs.500.00 and/or the

than chief Managers) value of the claim not exceeding Rs.500.00

Chief Managers and - Claims upto Rs. 5000.00 and/or the

Regional Managers value of the claim not exceeding Rs.5000.00

Zonal Managers - Claims upto Rs.25000.00 and/or

the value of the claim not exceeding

Rs.25000.00

Central office, Legal

Department - Claim above Rs.25000.00

3.11 LOANS AND ADVANCES

In accordance with the prudential norms issued by RBI:

Advances in India are classified into standard, sub-standard, doubtful

and loss assets borrower-wise.

Provisions are made for loan losses, and

General provisions for standard advances is made.


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In respect of foreign branches, income recognition, asset classification

and provisioning for loan losses are made as per local requirement or as per

RBI prudential norms, whichever is more stringent.

Advances disclosed are net of provisions made for non-performing

assets, DICGC/ECGC/CGTSI claims received and kept in sundries account,

balance in interest realizable account, participation certificates and usance

bills rediscounted.

3.12 AGRICULTURAL ADVANCES

Need-based short term production loans (crops loans) are granted to

owner cultivators, share croppers and lease holders, for purchase of inputs

like, seeds, fertilizers and plant protection chemicals; and for payment of

labour charges, water charges, etc., for seasonal crops, with repayment due

dates fixed to coincide with the harvesting and marketing of the crops. No

margin is required for loans upto Rs.10,000.00 for small and Marginal

farmers. The margin requirement for other categories of borrowers will be

15 to 25%.


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3.13 EDUCATIONAL LOANS

Bright and deserving students, whose parent/guardian's income does

not exceed Rs.2.50 lacs perannum, is eligible for loans to prosecute higher

studies in regular Professional and Technical Courses in India.

Exceptionally good academic record in the previous qualifying studies will

be the main criterion for considering loans under this scheme.

Normally upto Rs.10000.00 is made available to the student to meet

out expenditure towards tuition fees, books maintenance etc., disbursement

of which in periodical installments will be made direct of the agencies

concerned, such as college, university, hotel, book store,etc.,

For studies abroad, applications for financial assistance will be considered

on the merits of individual cases, subject to the guidelines issued by Reserve

Bank of India from time to time.

Maximum Permissible Loan

Studies in India - Rs.7.50 lacs.

Studies in Abroad - Rs.15.00 lacs

Margin

Upto Rs.4.00 lacs - Nil

Above Rs.4.00 lacs - Studies in India 5%

Studies in Abroad 15%


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Rate of Interest

Upto Rs.4.00 lacs - 11.50%

Above Rs.4.00 lacs - 12.50%

The Interest will be charged as per the Reserve Bank.

Norms

Simple basis during the study and holiday period (6/12 months) and

thereafter compounded and EMI.

2% Interest subsidy

60%o marks in qualifying examination.

Total loan amount not to exceed Rs.4 lacs p.a.

Repayment

Repayment in 5-7 years in EMI

Repayment to commence 6/12 month after completing the course, or

upon getting a job, whichever is earlier.

Security

For loans above Rs.4.00 lacs collateral security worth atleast 100% of

amount should be made available.


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3.14 WORKING CAPITAL ADVANCES

Working Capital Advances to Small Scale Industrial Units for

maintaining the current assets, namely, raw materials, consumable stores

and spares, stock-in-process and trade credit receivables; and for meeting

production expenses, are provided by banks in the following forms:

1.Advances against stock by way of hypothecation or pledge of stock,

2.Advances against receivables by way of purchase of documentary bills,

discounts of usance bills and purchase of clean supply Bills, and advances

against books debts,

3.Packaging credit to exporters for executing export orders.

4.Import and Inland letter of credit.

5.Guarantees for advance payments, performance, security deposit etc.,

3.15 DISPOSAL OF APPLICATIONS FOR LOANS AND

ADVANCES

The following maximum time limits have been stipulated for disposal

of applications for Loans and Advances from small scale Industries:


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Where the credit requirements are,

Upto Rs.25,000.00 - within 15 days Above Rs.25,000.00 - 8 to 9

weeks

3.16 PASS BOOK/ STATEMENT OF ACCOUNTS

Passbooks and statement of Accounts should be written accurately,

neatly and legibly.

Statements of Accounts to current account-holders should be sent

within 5 days from the due date. These due date should be marked in the

relative ledger folios and statements of Accounts should be prepared

sufficiently early to be send to the customers on due dates.

Entries in passbooks should be made then and there. The Pass Books

should be returned to the customers with out making them to wait long.

3.17 REMITTANCES

ISSUE OF DEMAND DRAFT

Demand draft should be issued to any person who applies for it,

irrespective of whether he has an account with the bank or not.

To avoid fraudulent alteration strokes should be placed between the

words written after the printed word "RUPEES".


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To render prompt customer service, demand draft upto Rs.1000.00

will be issued signed by only one powered officer.

PAYMENT OF DEMAND DRAFT

Payment of Demand Draft should not be refused for the only reason

that the relative protection advice has not been received. If necessary, the

paying branch should contact the issuing branch over telephone and seek

confirmation of issue of the Demand Draft.

The officer signing the demand draft should put a stamp below his

signature, bearing his name and number assigned in the specimen signature

booklet, to enable easy verification by the paying branch.

3.18 AUDIT BOOK

A Separate Audit Book will be maintained by branches to record

errors and lapses of staff members. Stern action will be initiated against

employees committing errors and lapses frequently or behaving in a manner

adversely affecting service to customers.


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3.19 PERFORMANCE APPRAISAL OF EMPLOYEES

The Performance Appraisal of Employees will be taken into account

the performance of the employees in the field of customer service also

lapses and errors committed by the employee, complaints received against

the employee and any good work done by the employee, will be given due

weightage.

3.20 IDENTITY CARDS/NAME PLATES FOR

MEMBERS OF STAFF

All the employees should wear on their apparel the Identity cards

supplied to them, which will help the customers in knowing them by name.

Officers should be supplied with their name plates for display o their tables.

3.21 STAFF MEETINGS

Each branch should hold a staff Meeting atleast once a month,

participated by all members of staff. The staff meeting should be held

preferably one or two weeks after the joint customer service committee

meeting of the branch, so that any suggestions made in the joint customer

service committee meeting may be discussed in the staff meeting.


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3.22 BOOKS MAINTAINED BY PARAMATHI BRANCH INDIAN

BANK

1. Day book

2. General ledger book

3. SB section day book

4. Current Account day book

5. Jewel loan book

6. Weekly sectional day book

7. Receipt book


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CHAPTER IV

ANALYSIS AND INTERPRETATION OF DATA

Table 4.1

Sex wise Classification of Respondents

Sex No.of Respondents Percentage

Male 40 80

Female 10 20Total 50 100

Source : Primary Data.

Table 4.1 shows the sex wise classification of sample respondents of

Indian Bank, Paramathi. It is seen that there are 40 male respondents and 20

female respondents. It is noted that 80 percent of the respondents are male.

Sex wise classification clearly shows major respondents are males.

The respondents of the study belongs to various age groups. Their age

ranges from 25 to 55 years.


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Chart 4.1

Sex wise Classification of Respondents

80

20

0

20

40

60

80

Male Female


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Table 4.2

Age Group of Sample Respondents

Age (years) No.of Respondents Percentage

Below 25 5 10

26-35 12 24

36-45 20 40

46-55 10 20

Above 55 3 6

Total 50 100


Table 4.2 exhibit the age group of sample respondents. It is found that

among the respondents 40 per cent are in the age group of 36-45 years and

24 per cent are in the age group of 26-35 years. Nearly 20 per cent of themare in the age group of 46-55 years.

It is inferred that majority of the sample respondents are in the age

group of 36-45 years.


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Chart 4.2

Age Group it Sample Respondents

10 24 40 20 6

0% 20% 40% 60% 80% 100%

Below 25 26-35 36-45 46-55 Above 55


49/109

Table 4.3

Educational Qualification of the

Sample Respondents

Education No.of Respondents Percentage

Below HSC 4 8

Graduate 20 40

Post Graduate 25 50

Technical 1 2Total 50 100


The academic educational qualification of sample respondents are

given in table 4.3. Among the Indian Bank customers (sample respondents)

8 per cent have studied below H.S.C, 40 per cent are graduates and 50 per

cent are post graduates. Just 2 per cent of them are have technical

qualification.

It is inferred that majority of the sample respondents have their post

graduation.


50/109

Chart 4.3

Educational Qualification of the

Sample Respondents

8

40

50

2

0

10

20

30

40

50

S.S.L.C Graduate Post

Graduate

Technical


51/109

Table 4.4

Respondents on the basis of Occupation

Occupation No.of Respondents Percentage

Agriculture 8 16

Business 20 40

Profession 1 2

Student 2 4Housewife 5 10

Labour 10 20

Others 4 8

Total 50 100


Table 4.4 shows the data regarding the occupation of sample

respondents. Out of 50 respondents, 20 of them which accounts for 40 per

cent are businessmen and 20 per cent are labourers. Only 8 of the

respondents are agriculturalists. It is interesting to note that 10 of them are

housewife.

It is found that 40 per cent of the them are businessmen.


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Chart 4.4

Respondents on the basis of Occupation

16 40

2

4

1020

8

0 10 20 30 40

Agriculture Business Profession Student

Housewife Labour Others


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Table 4.5

Income of the Sample Respondents

Income No.of Respondents Percentage

Below 5000 4 8

5000 10,000 10 20

10,000-25,000 20 40

Above 25000 16 32

Total 50 100


Table 4.5 describes the data regarding the income of the sample

respondents. It is inferred from the above table that majority of the sample

respondents earns between Rs.10,000 to Rs.25,000. Exactly 20 per cent of

the respondents have income of Rs.5000 to Rs.10,000. Nearly 32 per cent

are in the income group of above Rs.25,000.

Majority of the sample respondents are earning between Rs.10,000 to

Rs.25,000.


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Chart 4.5

Income of the Sample Respondents

8

20

40

32

0

5

10

15

20

25

30

35

40

Below 5000 5000 10,000 10,000-25,000 Above 25000


55/109

Table 4.6

Marital Status of the Sample Respondents

Status No.of Respondents Percentage

Married 35 70

Unmarried 15 30

Total 50 100


The Maritial Status of the sample respondents are given in table 4.6.

35 respondents which account for 70 per cent of them are married and 30 per

cent of them are unmarried. Hence, majority of them are married.


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Chart 4.6

Maritial Status of the Sample Respondents

Married, 70

,Unmarried

30


57/109

Table 4.7

Type of Account

Type of Deposits No.of Respondents Percentage

Savings 25 50

Current 5 10

Fixed 15 30

Others 5 10

Total 50 100


Table 4.7 shows the details of regarding the type of account used by

the customers (sample respondents) of Indian Bank, Paramathi. Nearly 50

per cent of the sample respondents made saving Bank deposit and 30 per

cent of them are fixed deposit holders.


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Chart 4.7

Type of Account

50

10

30

10

0

10

20

30

40

50

60

Savings Current Fixed Others


59/109

Table 4.8

Purpose of using Account

Purpose No.of Respondents Percentage

Business 21 42

Savings 25 50

Profession 1 2

Others 3 6

Total 50 100


Table 4.8 shows that customer using Indian Bank Account. Out of 50

respondents 21 which account for 42 per cent used their account for business

purpose and 50 per cent of the respondents used it as for saving purpose.

Just 8 per cent used the bank accounts for other purpose.

Nearly 92 per cent of the respondents used bank accounts for Business

and savings.


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Chart 4.8

Purpose of using Account

Business Sawings Profession Others

4250

2 6

0

50


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Table 4.9

Frequency of Operation of Account

Frequency No.of Respondents Percentage

Daily 2 4

Once in two

days5 10

Weekly once 5 10

Irregular 38 76

Total 50 100


The frequency of operation of accounts was dealt in the table 4.9.

Majority of the respondents were using their accounts at irregular intervals.

10% of the respondents use their accounts weekly once. Merely 4% of the

people uses their accounts daily.


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Chart 4.9

Frequency of Operation of Account

4

10

10

76

Daily

Once in two

days

Weekly once

Irregular


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Table 4.10

Loan Facility Availed by the Customers

Usage No.of Respondents Percentage

Yes 35 70

No 15 30

Total 50 100


As per Table 4.10, Nearly 70% of the sample respondents availed

some kind of loan. Only 30% of them not getting any loans.


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Chart 4.10

Loan Facility Availed by the Customers

70

30

0

20

40

60

80

100

Yes No


65/109

Table 4.11

Problems in Banking Services

Problems No.of Respondents Percentage

Cheque

Collection30 60

Demand Draft 10 20

Money Issue 8 16

Others 2 4Total 50 100


Problems faced by the Indian Bank customers are given in table 4.11.

Nearly 60 per cent of the customers major problem is cheque collection in

time and 20 per cent faced it over demand draft facilities. Only few

customers faced various other problems.


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Chart 4.11

Problems in Banking Services

60

2016

4

0

10

20

30

40

50

60

70

Cheque

Collection

Demand Draft Money Issue Others


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Table 4.12

Satisfaction level on Agency services

Agency No.of Respondents Percentage

H.S 3 6

S 15 30

NSNDS 20 40

D.S - -

H.D.S 12 24

Total 50 100


Satisfaction level on Agency services are given in table 4.12. 30 per

cent of the respondents expressed satisfaction on Agency services. Among

40 per cent of the sample respondents, Normal attitude is prevailed in theagency service. Nearly 24 per cent of them expressed their, dissatisfaction

over the agency services.


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Chart 4.12

Satisfaction level on Agency services

6

30

40

24

0

5

10

15

20

25

30

35

40

H.S S NSNDS D.S H.D.S


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Table 4.13

Interest on Deposits

Interes

tNo.of Respondents Percentage

H.S 3 6

S 2 4

NSNDS 40 80

D.S - -H.D.S 5 10

Total 50 100


The table 4.13 shows the satisfaction level of customers on interest on

deposits. Most of the customers (80 per cent) were indifferent over theinterest on deposits. Only very few customers expressed satisfaction.


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Chart 4.13

Interest on Deposits

64

80

10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



71/109

Table 4.14

Loan Facility

Interes

tNo.of Respondents Percentage

H.S 5 10

S 20 40

NSNDS 20 40

D.S - -

H.D.S 5 10

Total 50 100


Table 4.14 shows the satisfactory level of sample respondents

regarding the loan facility extended by the Indian Bank on seeing the

weighted score of 20 against 100, as per Table 4.29 implies the leastsatisfaction prevailing among the sample respondents. Indian Bank in the

eve of LPG (liberalization, privatization, & Globalization has consider the

customer delight seriously and revise of restructure the procedures of

factionary loan wither the risk factors. Diagram 4.14 illustrates the fact. The

weighted score in used to rank this factor as 9 th only of 17.


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Chart 4.14

Loan Facility

10

40 40

10

0

5

10

15

20

25

30

35

40

45

H.S S NSNDS. D.S H.D.S


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Table 4.15

Interest on Loan

Loan No.of Respondents Percentage

H.S 18 36

S 12 24

NSNDS 11 22

D.S - -

H.D.S 9 18

Total 50 100


Table 4.15 records the opinion of the sample respondents regarding

their satisfactory level towards the interest on loan using weighted scores. It

in had that 41% of sample respondents satisfied with this factor. Indian

Bank attained pass mark for this factor, at the same time, it is very difficultfor any finance institution to dance according to the have of customers.

Credit goes to Indian Bank for they have maintained this factor as 6th Rank

among the total of 17 factors. Interest on loan is the cost of capital which is

decided not by a single individual but by various factors such as RBI, world

Bank, Competing Banks, Financial & Non financial institution. Risk taking

ability, Number of customer, Initial deposits, credit terms, Economy and so

on customer satisfaction amidst these factors is realty a challenging one.

Diagram 4.15 illustrates the fact.


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Chart 4.15

Interest on Loan

36

24

22

18

0 20 40 60 80 100 120

H.S S NSNDS. D.S H.D.S


75/109

Table 4.16

Opening an Account

Opening No.of Respondents Percentage

H.S - -

S - -

NSNDS - -

D.S 46 92

H.D.S 4 8

Total 50 100


Table 4.16 highlights the thrilling position of Indian Bank units

reference to opening an account. It is highly shocking to see that not even a

single is seen under the categories of satisfaction. All of them are under thedissatisfaction categories and weighted negative score of 54 purses the factor

to 14th rank only of 17.


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Chart 4.16

Opening an Account

000

92

8

0

20

40

60

80

100



77/109

Table 4.17

Overdraft

Overdraf No.of Respondents Percentage

H.S 2 4

S 3 6

NSNDS 5 10

D.S 5 10

H.D.S 35 70

Total 50 100


Table 4.17 over liens the satisfactory level on overdraft extended by

Indian Bank. As most of the sample respondents have infavourable

opinions, this factor in pushed to last rank by the sample respondents,

Paramathi, is a small town where business people do lot of agricultural

business which are based on nature. When they are given imply the nature,they resort to OD facihly for a short run adjustment, if is inflexed that the

researcher probes the fact that Indian Bank would have faced a but of

repayment problems due to overdraft, though it has some pledges and

unnecessary additional issues then they do not pay there dues. This would

warrant the bank not to sanction OD facility-inspect of the valid reason,

striking a balance between there, is essential. Bold the bankers and

borrowers would realize this.

Diagram 4.17 illustrates the fact.


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Chart 4.17

Overdraft

4 610 10

70

0

10

20

30

40

50

60

70

80



79/109

Table 4.18

Repayment of Deposits

Deposits No.of Respondents Percentage

H.S 10 20

S 10 20

NSNDS 10 20

D.S 10 20

H.D.S 10 20

Total 50 100


Table 4.18 reverts the repayment of deposits and its rote in satisfying

the customer in Indian Bank. The Break even for weight score brings the

customers to rank this factor to 10

th

Diagram 4.18 is used to illustrate thefact.


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Chart 4.18

Repayment of Deposits

20 20 20 20 20

0

5

10

15

20



81/109

Table 4.19

Minimum Balance

Minimum No.of Respondents Percentage

H.S 12 24

S 38 76

NSNDS - -

D.S - -

H.D.S - -

Total 50 100


Table 4.19 shows the over whelming response of sample Respondents

towards the Minimum Balance expected by the Indian Bank. As every one

comes under the categories of either Higher satisfied (24%) and satisfied(76%), the sample respondents are highly happy with the factor of minimum

balance, the weighted score of 62 ranks this factor to 1 st Rank which ensures

core competence for the Indian Bank to retain their customers Diagram

4.19 illustrates the fact.


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Chart 4.19

Minimum Balance

24

76

0 0 0

0

10

20

30

40

50

60

7080



83/109

Table 4.20

Maintenance of Pass Book

Pass Book No.of Respondents Percentage

H.S 15 30

S 30 60

NSNDS 5 10

D.S - -

H.D.S - -

Total 50 100


Table 4.20 manifests the data regarding the satisfactory level towards

maintenance of pass book by the Indian Bank. There is a high level of

satisfaction observed as 90% of sample respondents are happy with thisservice. The weighted score of 60 pulled this factor as 2nd Rank. Indian

Bank can be proud of this service and it has to keep it up as many more

banker were situated. Diagram 4.20, is used illustrates the fact.


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Chart 4.20

Maintenance of Pass Book

30

60

10 000

10

20

30

40

50

60

70



85/109

Table 4.21

ATM Service

ATM No.of Respondents Percentage

H.S 10 20

S 34 68

NSNDS 6 12

D.S - -H.D.S - -

Total 50 100


Table 4.21 shows the data regarding the satisfactory level towards

ATM Services extended by the Indian Bank. Out of 50 respondents met, 44respondents are happy with be ATM services with a little minimum balance

bill really keep the customer a long run A good strategy were adopted by

the Indian Bank. This fact is illustrated in the following diagram.


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Chart 4.21

ATM Service

20

68

12

0 0

0

10

20

30

40

50

60

70



87/109

Table 4.22

Credit Card / Debit Card Facilities

Facilitie

sNo.of Respondents Percentage

H.S 15 30

S 25 50

NSNDS 10 20

D.S - -H.D.S - -

Total 50 100


Table 4.22 shows the satisfactory level of sample respondents towards

the credit and Debit Card facilities extended by the Indian Bank. Out of 50people met, 15 having 30 per cent are highly satisfied, 25 respondents having

50 per cent are satisfied are 10 having 20 per cent are indifferent. The

weighted scores in 55 against the total of 100, which makes this factor to

attain 3rd rank position amidst 17 factors under study. Laurels to Indian

Bank for having attained this bench mark.


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Chart 4.22

Credit Card / Debit Card Facilities


30

50 20

0 0

0

20

40

60


89/109

Table 4.23

Mail / Phone Transfer

Transfer No.of Respondents Percentage

H.S 20 40

S 20 40

NSNDS 5 10

D.S 3 6

H.D.S 2 4

Total 50 100


Table 4.23 deposits the opinion of sample respondents towards the

satisfactory level on mail and phone transfer out of 50 respondents met, 40

respondents accounting 80 per cent are categorized as satisfied. The score of53 allocates the 5th rank as per the weightage. Diagram 4.23 illustrates the

fact.


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Chart 4.23

Mail / Phone Transfer

40

40

10

6

4



91/109

Table 4.24

Nomination Facility

Nomination No.of Respondents Percentage

H.S 3 6

S 2 4

NSNDS 20 40

D.S 20 40

H.D.S 5 10

Total 50 100


Table 4.24 shows the satisfactory level of sample respondents towards

the nomination facility extended by Indian Bank. It is not interesting to see

that out of 50 people met only 5 people being 10% come under thecategories of satisfaction, 20 people are indifferent, another 20 are

dissatisfied and the last 5 respondents are highly dissatisfied. Hence the

negative weightage of 33 pulls the factor to attain 12 th rank. The following

diagram is used to illustrates this fact.


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Chart 4.24

Nomination Facility

64

40 40

10

0

5

10

15

20

25

30

3540

45



93/109

Table 4.25

Overall Foreign

Deposits No.of Respondents Percentage

H.S 3 6

S 2 4

NSNDS 5 10

D.S 5 10

H.D.S 35 70

Total 50 100


Table 4.25 deals with the satisfaction levels over the foreign exchange

transaction. There is a lot of dissatisfaction which push this factor to 16th

rank. It is important to the bank to give importance for this factor.


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Chart 4.25

Overall Forex

6 4 10 10

70

0

10

20

30

40

50

60

70



95/109

Table 4.26

Mutual Funds

Mutual No.of Respondents Percentage

H.S 3 6

S 2 4

NSNDS 6 12

D.S 9 18

H.D.S 30 60

Total 50 100


Table 4.26 reflects the satisfactory level of sample respondents

regarding the mutual funds facility extended by the Indian Bank. It is highly

a discouraging factor as 39 out of 50 respondents are found in dissatisfactorycategories. Moreover the negative weights of 61 pulls this factor as the last

but one factor i.e, 16th Rank. Diagram 4.26 illustrates the fact.


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Chart 4.26

Mutual Funds

6 4 12 18 60

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



97/109

Table 4.27

NRI Facilities

NRI No.of Respondents Percentage

H.S 7 14

S 23 46

NSNDS 15 30

D.S 2 4

H.D.S 3 6

Total 50 100


Table 4.27 shows the satisfactory level of sample respondents

regarding the NRI facilities extended by the Indian Bank. Out of 50 people

met 30 heaving 60 per cent of sample respondents are happy with NRIfacilities 30 per cent are indifferent and the remaining 5 respondents are

brought under the dissatisfactory categories. The weights score of 29 allots

the rank 15 Diagram 4.27 illustrates the fact.


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Chart 4.27

NRI Facilities

14

46

30

46

0

5

10

15

20

25

30

35

40

45

50



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Table 4.28

Overall Performance

Overall No.of Respondents Percentage

H.S 22 44

S 8 16

NSNDS 9 18

D.S 6 12

H.D.S 5 10

Total 50 100


Table 4.28 shows the overall performance of Indian Bank perceived

by the sample respondents. Out of 50 people met, 60 per cent of sample

respondents are happy with the performance of the bank 22% comes underdissatisfaction categories and 18% stands indifferent.


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Chart 4.28

Overall Performance

H.S, 44

S, 16

NSNDS, 18

D.S, 12

H.D.S, 10


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Table 4.29

Ranking of Satisfaction levels

S.

No Particulars H.S S NSNDS D.S H.D.S

Weighted

Score Rank

1 Agency Services 6 15 0 - -24 -3 11

2 Int.on. Deposits 6 2 0 -40 -10 -42 13

3 Loan Facility 10 20 0 - -10 20 9

4 Int. on. Loan 36 12 0 -9 - 39 6

5 Opening an Account - - 0 -46 -8 -54 14

6 Overdraft 4 3 0 -5 -70 -68 17

7 Repayment of Deposits 20 10 0 -10 -20 0 10

8 Minimum Balance 24 38 0 - - 62 1

9 Pass Book 30 30 0 - - 60 2

10 ATM Service 20 34 0 - - 54 4

11 Credit / Debit Card 30 25 0 - - 55 3

12 Mail / Phone Transfer 40 20 0 -3 -4 53 5

13 Nomination facility 6 2 0 -20 -10 -22 12

14 Overall forex 6 2 0 -5 -70 -67 16

15 Mutual funds 6 2 0 -9 -60 -61 15

16 NRI facilities 14 23 0 -2 -6 29 8

17 Overall Performance 44 8 0 -6 -10 36 7

Weights :-

H.S = +2

S = +1

NSNDS = 0

D.S = -1H.D.S = -2

CHAPTER V

SUMMARY OF FINDINGS, SUGGESTIONS &

CONCLUSION

FINDINGS


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A bank is an institution, which deals with money and credit. This

bank is an intermediary, which handles other peoples money both for their

advantage and to its own profit.

A person who is doing the banking business is called a Banker. A

banker must be a man of wisdom. He deals with others money but with his

own mental facilities. A banker is not only acting as a depository agent but

also as a Depository of Financial Advices.

Banking system plays a vital role in the economic development of a

country. The structure of the banking system in India consists of two parts.

Sex wise classification clearly shows major respondents are males.

It is inferred that majority of the sample respondents are in the age

group of 36-45 years.

Among the Indian Bank customers (sample respondents) 8 per cent

have studied below H.S.C, 40 per cent are graduates and 50 per cent are post

graduates. Just 2 per cent of them are have technical qualification.

Out of 50 respondents, 20 of them which accounts for 40 per cent are

businessmen and 20 per cent are labourers.

majority of the sample respondents earns between Rs.10,000 to

Rs.25,000. Exactly 20 per cent of the respondents have income of Rs.5000

to Rs.10,000. Nearly 32 per cent are in the income group of above

Rs.25,000.


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Nearly 35 respondents which account for 70 per cent of them are

married and 30 per cent of them are unmarried. Hence, majority of them are

married.

Nearly 50 per cent of the sample respondents made saving Bank

deposit and 30 per cent of them are fixed deposit holders.

Out of 50 respondents 21 which account for 42 per cent used their

account for business purpose and 50 per cent of the respondents used it as for

saving purpose.

Majority of the respondents were using their accounts at irregular

intervals.

Nearly 70% of the sample respondents availed some kind of loan.

Only 30% of them not getting any loans.

Nearly 60 per cent of the customers major problem is cheque

collection in time and 20 per cent faced it over demand draft facilities.

Nearly 30 per cent of the respondents expressed satisfaction on

Agency services. Among 40 per cent of the sample respondents, Normal

attitude is prevailed in the agency service. Nearly 24 per cent of them

expressed their, dissatisfaction over the agency services.

Most of the customers (80 per cent) were indifferent over the interest

on deposits. Only very few customers expressed satisfaction.

The thrilling position of Indian Bank units reference to opening an

account. It is highly shocking to see that not even a single is seen under the

categories of satisfaction. All of them are under the dissatisfaction


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categories and weighted negative score of 54 purses the factor to 14th rank

only of 17.

Most of the sample respondents have infavourable opinions, thisfactor in pushed to last rank by the sample respondents.

The repayment of deposits and its rote in satisfying the customer in

Indian Bank. The Break even for weight score brings the customers to rank

this factor to 10th Diagram 4.18 is used to illustrate the fact.

There is a high level of satisfaction observed as 90% of sample

respondents are happy with this service. The weighted score of 60 pulled

this factor as 2nd Rank. Indian Bank can be proud of this service and it has to

keep it up as many more banker were situated. Diagram 4.20, is used

illustrates the fact.

Out of 50 respondents met, 44 respondents are happy with be ATM

services with a little minimum balance bill really keep the customer a long

run A good strategy were adopted by the Indian Bank. This fact is

illustrated in the following diagram.

The satisfactory level on mail and phone transfer out of 50

respondents met, 40 respondents accounting 80 per cent are categorized as

satisfied. The score of 53 allocates the 5th rank as per the weightage.

It is not interesting to see that out of 50 people met only 5 people

being 10% come under the categories of satisfaction, 20 people are

indifferent, another 20 are dissatisfied and the last 5 respondents are highly

dissatisfied.


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Out of 50 people met, 60 per cent of sample respondents are happy

with the performance of the bank 22% comes under dissatisfaction

categories and 18% stands indifferent.


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SUGGESTIONS

1. The bank has to maintain its present state on ATM services, Debit /

Credit card services.

2. It is the responsibility of the bank to maintain the present state on

maintenance of Pass Book.

3. The bank should ensure a fair return of the loans sanctioned.

4. Delays on collecting the cheques must be avoided in the future.

5. The bank should try to create awareness over the forex

transactions.

6. The negatively scaled factors should given importance.

7. The mutual fund schemes must be brought in to attention.


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CONCLUSION

From the above cited analysis it is clear that the Indian Bank,

Paramathi Branch, Namakkal had gained much satisfaction among its

customers. Out of the 17 factors studied 10 factors scaled positive. The

Paramathi Branch, Namakkal region is one of the industrial and agricultural

region. Banking services are un avoidable for the development of such area.

By understanding this fact, the bank had done its services and attains a

rightful place in the minds of the customers. It the bank continuous its

present workings with care & Precaution in the future. It is the victory of the

bank towards the attainment of its objectives.


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BIBLIOGRAPHY

1. Annual Reports of paramathi Indian Bank, Namakkal District.

2. Towards Better, Customer Service Indian Bank Journals.

3. Banking Theory Law and Practice D.S.N. Maheswari, R.R.Paul-

Kalyani publishers, Ludhiana, New Delhi, Noida (U.P),

Hyderabad, Chennai, Calcutta, Cuttack.

4. Practical Banking Advances H.L.Bedi & V.K.Hardikar UBs

publishers distributor Ltd, New Delhi, Bangalore, Chennai,

Kolkata, Patna, Kanpur, London 2001.

5. Banking Theory and Practice S.N. Maheswari, R.R.Paul

Kalyani publishers, Ludhiana, New Delhi, Noida (U.P), Hydrebad,

Chennai, Calcutta, Cuttack.

6. Banking Theory Law and Practice E.Gordon, K.Natarajan

Himalaya publishing House in 2002, New Delhi, Nagpur,

Bangalore, Hyderabad.

7. Financial Accounting S.P. Jain, K.L.Narang.

8. Financial Accounting R.L. Gupta, V.K.Gupta Sultanchand and

sons educational publishers in 1999.

9. Financial Accounting S.P. Jain, K.L.Narang Kalyani

publishers, New Delhi First edition 2001.

10. Banking and Financial system


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- DR. K. Nirmala Prasad & J.Chandradass.

Mumbai, Delhi, Nagpur, Bangalore, Hydrebad Fifth

Edition, 2000.

11. Banking Theory law & Practice

- E. Gordon K.Natarajan,

- Himalaya Publishing House Fourteenth Revised

Edition, 1999.

12. Banking Theory & Practice Shekhar & Shekhar, Vikas

publishing House Pvt Ltd New Delhi 18th Revised & Enlarged

Edition.

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