Only Bib and Annex

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1.1 Introduction

The traditional definition of bank (section 5(b) of Banking Regulation Act of India, 1949)

refers banking as accepting for the purpose of lending or investment of deposits of

money received from the public, repayable on demand or otherwise and withdraw able by

Cheque, draft, and order or otherwise. The present scenario of banking industry have

took a deviation where we can find electronic as well as traditional methods where

customer has got an option to involve in bank transaction. Accordingly he can bank

directly with bank (Core banking) or through branch. Opinion of customers towards

services rendered by both public and private sector banks are difficult to measure in terms

of quality. Attempts are made in this study to know the youths (18-30 years) perception

towards public sector banks.

1.2 Statement of Problem

The mode of delivery of banking services had been changed as and when new and

secured channels were introduced. Banks in India which followed traditional methods of

banking faced competitions from private and foreign banks which introduced modern

technology in banking. Even Public Sector Banks are not exception.

1.3 Objectives

To study the influential factors posing choices of public sector bank. To find out the scope of improvements on parameters like technology and service

delivery of public sector banks.

To analyze youths perception on modernization of Banking and their loyaltytowards public sector banks.

To find out the level of competency between Public & Private banks towardscustomer satisfaction.


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1.4 Need for the Study

To know how well the youths are adopted to the modern banking services provided by

the public sector banks. It facilitates to get the feedback from the customers in order to

find out the scope of improvement of services of Public Sector Banks. To know the reach

of Public Sector Banks in two segments (rural and urban).

1.5 Scope of the Study

The study Opinion of Youths with Regards to Public Sector banks helps to know the

satisfaction that customer receive and what more they expect from Public sector banks.

Due to constraint of both time and resources research will be organize in urban and rural

areas concentrating on youth between the age group 18 to 30 years. The sample sizeconsidered here is 100, comprising of 50 rural and 50 urban. The study is confined for 3

months in Udupi District. In this area the respondents are contacted and primary data is

collected from them. For this purpose researchers interviewed 100 respondents personally

with well-structured questionnaire. The study conducted is purely of academic interest

and to understand the customer mindset and perception towards the Public Sector Banks.

Opinions are not suggestive measures.

1.6 Research Methodology

The research conducted incorporates both primary and secondary data. They are

1.6.1 Primary data

Primary data were procured through reaching the samples and getting their opinions. A

well designed structured questionnaire is used as a tool for this purpose. Researcher

interviewed customers personally.

1.6.2 Secondary Data

Secondary data were procured by magazines, internet, pro-quests, standard search

engines, articles, journals and newspapers.


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1.7 Samplings

Samples were selected on convenience basis. Total samples are 100 (50 each from rural

and urban respectively). Team visited 10 villages (5 samples from each village) and 3

towns (20 each from two towns and 10 from one). Age group of samples considered is

from 18-30 years. No restrictions were made based on gender and occupation.

1.8 Literature Review

Liberalization played an important role in the growth rate of Indian banks. In the study

A Comparative Study between Public Sector Banks & Private Sector Banks (Haque

and Imamul, 2011) it is clearly shown before liberalization nationalized banks were

spread worldwide but they did not pay any attention to improve customer satisfaction and

quality of performance. But after liberalization Narsimham Committee report was

implemented. According to this banks were asked to follow internationally accepted

practices for welfare of the banks. Due to this nationalized banks had tough competition

from private banks and foreign banks because of their international standard in banking

services. These new banks came up with modern information technology network and

modern banking services like ATMs, debit card, online banking etc. They provided

customers with wide range of services. All these banks are trying to establish themselves

as most preferred banks by customers and that is done by giving better services than their

competitors. This study is mainly about level of service for the customers of private and

public banks. Case study on customers preference and satisfaction of four basic

banking which was conducted in 2010 is mainly based on the various services preferred

by customers and their satisfaction level. They did a research using 300 samples to know

their customers preference and came to a conclusion that business and vehicle loans were

most common. There was a positive response towards bank loans and bank deposit

schemes but net banking failed drastically in customer satisfaction and insurance services

got limited attention. The banks concentrated on changing markets, new technology,

foreign banks entry, banks regulation, competition etc. to satisfy customers. The banks

try to change their services with their customers preference and expectations. This


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research work made us come to a conclusion that most of the customers prefer banks

based on interest rate (36.61%), safety (26.76%) and services (21.83%).

A Comparative Analysis of Service Quality in Selected Commercial Banks in Delhi

was conducted to know services rendered by public, private and foreign banks of India

(Debashish and Sathya Swaroop, 2009).This study was based on nine selected

commercial banks in Delhi. It was analysed based on their various services and their

quality of services in public, private and foreign banks. Services in Indian banks are

mostly branch based in public sector banks. Foreign banks are based on the latest

technologies available. From this study it was clear that in Delhi foreign banks have

established themselves better and satisfy customer better than private and public banks.

There is close competition between private and foreign banks. The public sector banks

which is said to be three fourth of banking business have failed to satisfy their customers

and establish themselves.

Technological efficiency plays a vital role in the growth of all the banks. To know this

aspects in detail there was a study conducted in the year 2008(Evaluation of technical

efficiency and ranking of public sector banks in India conducted by Kumar, Sunil,

Gulati and Rachita) on all the 27 public sector banks operating in India. Technical

efficiency scores ranged from 0.632 to 1 whereas average score was 0.885. Technicalefficiency is about ability of banks to transform multiple resources into multiple financial

services. .It was concluded that Andhra bank was the most efficient banks followed by

Corporation banks. The banks which were affiliated by SBI were said to be more

efficient than nationalized banks. Public sector banks which have high market share, high

staff productivity are said to be more efficient. . This study on the 27 public sector banks

were said to be the strictest ranking system on the basis of technological efficiency

scores.

1.9 Limitations

Time seems to be one of the biggest limitations. But in the project, attempt is made toprovide justice to our work within the allotted time frame of 3 months.


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It is difficult to collect primary data. Verifications of those data which are collectedfrom secondary sources are not always possible.

Some samples may have come to a quick conclusion, but researchers made all theirattempt to get the proper response from the respondents.

Due to time barriers, the study is restricted only to Udupi District. By the research conducted, the behavior of the future customers cannot be predicted.

It is only an effort to understand the present situation level.

1.10 Chapter Scheme

Chapter 1 : Research Design

This chapter includes background of study, need and scope for study, research

methodology, sampling methods, limitations and literature survey.

Chapter 2 : Industry Analysis

This gives a brief introduction of banking sector in India and present standings of the

industry.

Chapter 3 : Data Analysis

It is necessary to analyze and interpret the collected data to arrive at conclusion of the

study. It involves interpretation of primary data collected.

Chapter 4 : Finding and Suggestions

The findings of facts and suggestions to be implemented to improve Public sector banks

services which are generated during research are mentioned here.

Chapter 5 : Conclusion

Final aspect regarding entire research is concluded in this chapter.


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Introduction

The Indian banking industry can be broadly categorized into nationalized, private banks

and foreign banking institutions. Banking in India originated in the first decade of 18th

century with the General Bank of India coming into existence in 1786. The oldest bank

existence in India is State Bank of India. It was originated as the Bank of Calcutta in June

1806, and then it immediately became the Bank of Bengal, Bank of Bombay and Bank of

Madras all three of which established from the British East India Company. Between

1865 and 1895, Allahabad Bank and Punjab National Bank came into existence. In the

year 1919, Imperial Bank was formed by way of merger of these three presidential banks.

The period between 1906 and 1911 saw the establishment of bank inspired by Swadeshi

movement.

A number of banks established then have survived to the present such asBank of India, Corporation bank, Indian Bank, Bank of Baroda, Canara Bank and Central

bank of India.

The RBI act was passed in the year 1934. It was nationalized in the year 1949. RBI

became an institution owned by the Government of India. In 1949, Banking Regulation

Act was passed which empowered the RBI to regulate, control, and inspect the banks in

India. The Banking Regulation Act also provided that no new bank or branch of an

existing bank could be opened without a license from the RBI, and no two banks couldhave common directors. By the 1960s, the Indian banking industry had become an

important tool to facilitate the development of the Indian economy. The SBI is unique in

several respects and it enjoys a position of domination as the agent of RBI wherever RBI

has no branches. It is the single largest bank in the country with large international

presence, with a network of 48 overseas offices spread over 28 countries covering all the

time zones. Public sector banks are the ones in which the government has a major

holding.

Players in Banking Industry

1. Public Sector Banks 2. Private Sector Banks


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Public Sector Banks in India

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank State Bank of India and its associated banks like State Bank of Bikaner and

Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and

State Bank of Travancore.

The liberalize policy of government of India permitted entry to private sector in the

banking, the industry has witnessed the entry of nine new generation private banks. The

major differentiating parameter that distinguishes these banks from all the other banks in

the Indian banking is the level of services that is offered to the customer. Historically, the

private sector banks played a crucial role in the growth of joint stock banking in India.


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The first half of the 20th century had seen outstanding growth of private sector banks. As

a result in 1951, there were 566 private banks of which 474 were non-scheduled and 92

scheduled classified on the basis of their capital size.

Private Sector Banks in India (Prominent Players)

Bank of Rajasthan Catholic Syrian Bank Ltd City Union Bank Ltd Dhanalakshmi Bank Ltd Federal Bank Ltd ING Vysya Bank Ltd Karnataka Bank Ltd Karur Vysya Bank Ltd Lakshmi Vilas Bank Ltd Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Ltd Kotak Mahindra Bank Ltd Axis Bank (earlier UTI Bank) Yes Bank Ltd

Current Scenario of Indian Banking Sector

The Indian banking industry has observed a period of constant growth during the last

decades, with banks along with their customers embracing healthy systems and

processes. Now banking sector introduced the new modern technology. It introduced the

concept of Debit and Credit cards, e-transfer of funds, ATM and mobile banking. It was

at this time that competition was truly introduced in this sector. The industry has


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recorded a consistent rise in the number of reporting offices in last few years. With

Reserve Bank of India stressing the policy of financial inclusion, there has been a

renewed importance on rural expansion. However, a large part of Indian village

population still remains without banks. It will require further expansion from Indian

banks to raise the penetration levels of banking services in the country, especially in rural

areas. The sector is in the growth stage with many new products and services offered and

a wide market base tapped. Quality of assets has improved and the confidence in the

system is building up due to the increased transparency norms. Government interference

is also gradually reducing.

The banking industry in India is in a center of transformation, and it helps to the

economic liberalization of the country. It has changed business environment in the

country. In the pre-liberalization period, the industry was only focusing on deposit

mobilization and branch expansion. But with liberalization, it found many of its advances

under the non-performing assets list and also the sector has become very competitive

with the entry of many foreign and private sector banks. The face of banking is changing

rapidly. The Indian banks saw lower levels of money supply, and deposits as a percentage

of GDP in financial year 2012 as compared to that in financial year 2011 on account of

the uncertain economic environment. The Indian banking sectors have improved the

profitability, productivity and efficiency of banks, but in the days ahead banks will also

have to prepare themselves to face new challenges.


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Data analysis is about analysis of summarized data which is obtained by tabulating the

collected data and processing to get a summarized output.

This study was conducted to know the opinion of youth about public sector banks.

During our study we have contacted 100 respondents who are the public sector bank

customers from rural and urban areas of Udupi district (50 respondents from each area)

irrespective of gender and income .The primary research was purely organized on the

basis of structured questionnaire.

The collected data was entered into SPSS which helped us in getting an accurate output

which has been analyzed.

3.1 Retaining of Existing Customers

Table No.3.1

Retaining of Existing Customers

No of respondents

Public Sector 83

Both 17

Total 100

Source: Field Study

Chart No.3.1

Retaining of Existing Customers

0

20

40

60

80

100

120

Public Sector Both Total

No of People


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Interpretation :

Only public sector bank customers were chosen as sample as a result out of 100 samples.

Out of 100, 83 percent of samples had transactions only in public sector banks. Whereas

17 percent people had transactions with both public and private sector banks. This shows

that public sector banks are efficient in retaining existing customers.

3.2 Period of Dealing

Table No 3.2

Period of dealing

No of People

Less than 1 year 41 to 5 years 49

5 to 10 years 23

10 years and above 24

Total 100

Source: Field Study

Chart No 3.2

Period of dealing

Interpretation :

The above table reveals that 49 percent of people are dealing for a period of one to five

0

20

40

60

80

100

120

Less than 1

year

1 to 5 years 5 to 10 years 10 years and

above

Total

No of People


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years, 24 percent of people are dealing for more than a year, 23 percent of people for 5 to

10 years, whereas 4 percent of people are dealing since less than a year. Since the

samples approached were of age group between 18 and 30 years, it can be said that the

youths are loyal to the banks they dealt with.

3.3 Reasons for opting Public Sector Banks

Table No 3.3

Reasons for opting Public Sector Banks

No of People

Safety 52

Comparative rate of interest 4

Mandatory Requirement 29

Proximity 15

Total 100

Source: Field Survey

Chart No 3.3

Reasons for opting Public Sector Banks

0

20

40

60

80

100

120

Safety Comparative

rate of interest

Mandatory

Requirement

Proximity Total

No of People


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Interpretation :

People transact with public sector banks for many reasons. Some of the reasons may be

the nearness of bank branch, some may think these banks as safe, some may deposit as

per the large spread of branches and some may deposit as their salaries will get deposited

in specified banks. After analyzing the above table we can conclude that 52 percent of

people opt public sector banks because of its safety factor, 29 percent of people opted

because of mandatory requirement, nearly 15 percent of people went for public sector

banks because of proximity and 4 percent of people opted because of comparative rate of

interest. People believe these banks as safer as it is owned and regulated by Government

directly or indirectly.

3.4 Transparency

Table No 3.4

Transparency

No of People

Public Sector Banks 61

Private Sector Banks 7

No idea 32

Total 100

Source: Field Study


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Chart No 3.4

Transparency

Interpretation :

Approach of bank to be transparent towards their approach plays a role when opting for

any bank. It was observed that 61 percent of the people thought public sectors are

transparent where as 7 percent of people thought private sector are transparent, 32 percent

of people had no idea about it. So we can say that people think that public sector banks

are transparent than the private banks.

3.5 Perception towards Banks

Table No 3.5

Perception towards Banks

No of People

Personalized Services 12

Wide Branch Network 38

Customer Service 41

Core Banking 9

Total 100

Source: Field Study

0

20

40

60

80

100

120

Public Sector

Banks

Private Sector

Banks

No idea Total

No of People


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Chart No 3.5

Perception towards Banks

Interpretation :

It is important to know that what comes first in minds of customer when he thinks of his

bank. It can be seen that 41 percent people think of customers services, 38 percent of

people think of its wide branch network, 12 percent of people thought its personalized

services, and 9 percent people think of its core banking facility. Here only the perceptions

are collected irrespective of the factor being positive or negative.

3.6 10 Minutes window service

Table No 3.6

10 minutes window service

No of People

Yes 40

No 10

No idea 50

Total 100

Source: Field Study

0

20

40

60

80

100

120

PersonalizedServices

Wide BranchNetwork

CustomerService

Core Banking Total

No of People


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Chart No 3.6

10 Minutes window service

Interpretation :

According to norms laid down by RBI, it is mandatory for a bank under public sector to

deliver services in branch counter within 10 minutes of arrival to counter. When asked to

respondents, 40 percent were aware of this service and they think this norm is effective

whereas only 10 percent of people think that it is not effective. But majority of 50 percentof people were unaware of this norm.

3.7Communication of changes in Banking Norms that effect Customers

Table No 3.7

Communication of changes in Banking Norms that effect customers

No of People

Send Notice on Date 43Notify Some Days Later 5

Communicate on visit 24

Never Notice 28

Total 100

Source: Field Study

0

20

40

60

80

100

120

Yes No No idea Total

No of People


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Chart No 3.7

Communication of changes in Banking Norms that effect customers

Interpretation :

Changes in regulation which effects customers of banks must be communicated to them

so as it does not affect regular transactions. Out of 100 percent samples approached, 43

percent of people said banks send notice on date , 28 percent said their banks do not

informs them, 24 percent of people said banks inform them when they visit their

respective banks and 5 percent of people said banks notify after few days. During survey

it was revealed that banks communicated customers through SMS services and

telephones. And remaining was noticed on visit and by freezing their existing accounts.

0

20

40

60

80

100

120

Send Notice on

Date

Notify Some

Days Later

Communicate

on visit

Never Notice Total

No of People


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3.8 Mode of services preferred

Table No. 3.8

Mode of services preferred

No of People

Internet Banking 36

Mobile Banking 9

SMS Banking 8

Branch Banking 47

Total 100

Source: Field Study

Chart No. 3.8

Mode of services preferred

Interpretation :

Customers prefer to bank in mode which they prefer to be convenient to them. The above

chart reveals that 47 percent of people prefer to bank directly with branch banking, 36

percent of people use internet banking, 9 percent of people use mobile banking and 8

percent of people use SMS banking. We can conclude that majority of bank customers

still prefer to bank with branch. The reason may be inadaptability to modern technology

or it may be proximity of bank branches. In other context, referring Table No. 3, we can

also tell that people consider branch banking to be safer than other modes.

0

20

40

60

80

100

120

Internet

Banking

Mobile

Banking

SMS Banking Branch

Banking

Total

No of People


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3.9 Preference towards modern technology

Table No 3.9

Preference towards modern technology

No of PeopleYes 10

No 63

Yes, but got solved immediately 20

Needs Time To Learn 7

Total 100

Source: Field Study

Chart No 3.9

Preference towards modern technology

Interpretation :

It is difficult to adapt to changes. Attempt was made to know the preference of customers

towards usage of modern technology in banking. It was noticed that 63 percent of total

samples did not have any problems while using modern banking technology, 20 percent

of people did face few problems but they got solved immediately, 10 percent of people

had few problems where as 7 percent of people said they need time to learn this new

0

20

40

60

80

100

120

Yes No Yes, but got

solved

immediately

Needs Time To

Learn

Total

No of People


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technology.

3.10 Timely issue of credit/debit card

Table No. 3.10Timely issue of credit/debit card

No of People

Yes 67

No 22

Not applicable 11

Total 100

Source: Field Study

Chart No. 3.10

Timely issue of credit/debit card

Interpretation :

Out of 100 samples approached, 11 percent did not opt for debit/ credit cards. Sixty

Seven percent had problem on issue of cards and 22 percent of respondents did not have

0

20

40

60

80

100

120

Yes No Not applicable Total

No of People


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any problem on issue. This shows that there is a loop hole on procedure of debit/ credit

card issue.

3.11 Grievance handling

Table No. 3.11

Grievance handling

No of People

Quick response and solve 64

Respond but late 33

Never respond 3

Total 100

Source: Field Study

Chart No. 3.11

Grievance handling

0

20

40

60

80

100

120

Quick response

and solve

Respond but late Never respond Total

No of People


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Interpretation :

It is necessary to bank to address grievances of their customers in order to retain them.

Field survey shows that about 64percent of samples were fully satisfied by the grievance

addressed. To which 33 percent of samples got response at a later time and 3 percent

were not attended by the service cell. This shows the efficiency of public sector banks in

addressing grievances.

3.12 Perception of youths on loan facility by Public and Private Sector Bank

Table No. 3.12

Perception of youths on loan facility by Public and Private Sector Bank

Accessi

bility

Documentation

procedures

Rate of

interest

Repayment

options

No

Response Total

Public

sector

banks

22 13 12 9 2 58

Private

sector

banks

12 6 7 4 1 30

No

Idea0 0 0 0 12 12

Total34 19 19 13 15 100

Source: Field Study


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Chart No. 3.12

Perception of youths on loan facility by Public and Private Sector Bank

Interpretation :

When it comes to perception of providing loans assistance by the public sector banks, 58

percent of samples thought that public sector banks are efficient in providing loan and outof which 22 people preferred accessibility, 13 people thought documentation procedure

were speedy, 12 percent people thought rate of interest is low as compared to private

sector banks and remaining 9 people believed repayment options were better. Two

persons said that public sector banks are efficient in providing loan but they had no idea

of reasons.

While taking the private banks loan system, field survey shows that 30 percent

respondents said that private sector banks are comparatively better in providing loanfacility. Out of which 12 people said accessibility, 6 people thought documentation

procedure is faster and good, 7 people thought rate of interest is comparatively better, 4

respondents believed that the repayment option provided by the private sector banks are

better. One person perceived private sector banks are better in providing credit facility

0

20

40

60

80

100

120

No Idea

Private sector banks

Public sector banks


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but are unaware of the factors. This question was tossed just to know the perception of

respondents irrespective of usage.

3.13 Perception of youths on various services of Public Sector Banks

Table No 3.13

Perception of youths on various services of Public Sector Banks

Factors Excellent

(3)

Very

Good

(2)

Good

(1)

Bad

(-1)

Poor

(-2)

No

Response

(0)

Total

No Of

People

a. Interest Rate 5 16 71 6 2 - 100b. Delivery of

Services

9 28 56 6 1 - 100

c. Procedure(loan sanction)

9 18 38 20 3 12 100

d. Behaviour ofStaff

12 29 38 15 6 - 100

e. SocialAwareness

Programmes

2 11 23 38 26 - 100

f. OverallServices

2 24 67 5 - - 100

Source: Field Survey


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Chart No 3.13

Perception of youths on various services of Public Sector Banks

Interpretation :

Interest Rate Delivery of

Services

Procedure

(Loan

Sanction)

Behaviour

of Staff

Social

Awareness

Programmes

Overall

Service

1.08 1.31 0.74 1.05 -0.39 1.22

Reference: Annexure

In the feedback asked regarding rate of interest provided by Public Sector Banks on

deposits, quality of delivery services, loan sanction procedural and behavioral of staff lies

between 1 and 2 (good and very good). So we can say that these factors are good. But in

case of creating social awareness public sector banks are not well known, we can rate it

as bad (-0.39) as samples were unaware of Social Awareness Programmes conducted by

banks. So we can conclude that overall services provided by Public Sector Banks are

good.


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3.14 Level of Competency

Table No. 3. 14

Level of Competency

No of People

Yes 65

No 27

No idea 8

Total 100

Source: Field Study

Chart No. 3.14

Level of competency

Interpretation :

Out of 100 respondents, 65 percent of them believed that Private Sector Banks are more

competitive than the Public Sector Banks and 27 percent believed public sector banks are

more competitive both in providing service delivery and redressing grievances. Eight

percent of respondents had no idea about competencies.

0

20

40

60

80

100

120

Yes No No idea Total

No of People


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3.15 Loyalty

Table No 3.15

Loyalty

No of People

Yes 61

No 39

Total 100

Source: Field Study

Chart No 3.15

Loyalty

Interpretation :

People tend to move to alternatives when they are not satisfied partially or completelywith their banks. Sixty one percent of samples surveyed where ready to bank with private

sector banks if they are required to. It shows that people perceive private sector banks are

better in providing banking services than public sector banks. Charges incurred by private

sector banks are communicated to be constant to the respondents. This reveals people

find some problem with services rendered by Public Sector Bank.

0

20

40

60

80

100

120

Yes No Total

No of People


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Findings

The finding of the field surveys are as follows

Factors posing choices of Public Sector Banks: From the study we can conclude thatyouths prefer public sector banks for safety and as a mandatory requirement. People

prefer safety, as the banks are owned by the government though the services are just

good. Whereas mandatory requirement refers to a persons obligation in order to

satisfy minimum criteria for availing government services as well as compensation

requirement. For example, passport services, for salary.

Loyalty towards Public Sector Banks: Youths also open their bank account in publicsector banks. As they think these banks are efficient in providing loans compared to

that of private sector banks, the reason here is easy accessibility to loan.

Youths perception on modernization of Banking: The modern technological servicesprovided by public sector banks are advanced as far as Indian concern. But the

implication of these technologies is inefficient. Though the youth surveyed did not

have any problem in making use of modern banking technology, they had obstacle in

getting basic requirements for utilizing these services. For example, the debit/ credit

cards were not issued on time, though the technology has developed customers must

depend on branches directly or indirectly it is suggested that ATMs must be opened in

rural areas so that rural youths can bank with machines instead of moving to towns.

Customer Satisfaction: The first thing which comes to youths mind with regards totheir bank is customer service. In study it is revealed that there is a necessity of

improvement in handling grievances as well as behavior of staffs towards them.

Because of this factor we can say that youths perceive publics sector banks

negatively.

Branch Banking cannot be neglected: Even though youths are convenient with themodern banking technology, they still prefer to associate themselves with branch

banking. Because some services require branch visits. Example, document

submission.

Competency: The approached samples were unaware of the social awarenessprograms undertaken by public sector banks. This state that youth is attracted only


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towards the banking services. Youths perceive that private sector banks are more

competent to public sector banks in terms of providing services and redressing

grievances. And they also prefer to have account in private sector bank as well.

Suggestions

Based on findings given above, we can suggest that

Public Sector Banks must recruit more young people who are capable of usingmodern technology in banking services and also must be compatible to adapt to the

changes in the modern banking.

In order to check efficiency of present staffs, banks must conduct workshops once ina year on modern banking services. In order to keep customer at safer side, demo

software can be distributed to employees.

To check the regularity of bank employees, biometric attendance must beimplemented so that banks are available at customer service during work hours.

Public Sector Banks must increase number of ATMs in rural regions. This helpsyouths from villages to undergo cash transactions directly through ATMs rather than

moving to banks located in far places.


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Public Sector Banks in India is successful in introducing modern technology in all their

branches across the country. Youths are well aware of the usage of this system. But there

can be seen a major problem in implication of modern banking services by these banks.

Though the customers have adapted these systems, the staffs of these banks failed to.

Unless and until these banks provide proper training to their staff about implication of

these systems, Public Sector Banks cannot provide quick and efficient banking services

to their customers.

Financial Inclusion took all over the country, but the people holding accounts are

unaware of its benefits. Rural youths having account in public sector banks have to move

to towns for using ATM cards. Though they have the knowledge of usage, presence of

ATM are rarely found in rural areas. So establishing ATM outlet can help bankers to

expand modern banking service.

The other factors to be considered here is conduct of staff. Not only training regarding

modern banking but also staffs must be trained in order to improve customer service.

Modern technology must be implemented in keeping track of employees work pattern

and timing. Effective supervision is also required to drive service excellence.

There are 26 Public Sector Banks in India and none of these were able to reach the global

competitors. Growing concern of customers towards private sector banks and presence of

Foreign Banks can hinder growth of Public Sector Banks. They can achieve this fleet of

reaching Global grounds only when they implement modern banking services

successfully and keep upgrading their technology to reach expectations of their

customers.


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Articleso A Comparative Study between Public Sector Banks & Private Sector

Banks (2011)

o Case study on customers preference and satisfaction of four basicbanking

o A Comparative Analysis of Service Quality in Selected CommercialBanks in Delhi (2009)

o Evaluation of technical efficiency and ranking of public sector banks inIndia (2008)

Websiteso www.equitymaster.como www.stockshastra.moneyworks4me.com/economic-outlook/indian-

banking-industry

o www.info.shine.com/Industry-Information/Finance-and-Banking


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Questionnaire

Name :

Place :

1. Which bank do you deal with?

a. Public Sector Bank b. Private Sector Bank c. Both

2. How long you have been dealing with this Bank?

a. Less than 1 year b.1 to 5 years

c. 5 to 10 years d. 10 years and above

3. For which of the following reasons do you prefer public sector banks?

a. Safety b. Comparative rate of interest

c. Service & Coverage d. Proximity

4. Who do you think are the most transparent in their approach (transactions)?

a. Public sector banks b. Private sector banks c. No idea

5. When you think of your bank (Public Sector), what comes first in your mind?

a. Personalized service b. Wide branch network

c. Customer service d. Core banking

6. Is 10 minuteswindow service provided by public sector banks effective?

a. Yes b. No c. No idea

7. How is the behavior of staff of public sector banks towards customer?

a. Excellent b. Good

c. Satisfactory d. Poor


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8. How does your bank communicate the new norms laid down by RBI regarding

banking services and charges?

a. Send notice as on date b. Notify some days later

c. Communicate on visit d. Never notice

9. Which mode you prefer the most to bank with?

a. Internet banking b. Mobile banking

c. SMS banking d. Branch banking

10. Did you face any problems while using the products of modern banking technology?

a. Yes b. No

c. Yes, but got solved immediately d. Needs time to learn

11. Has your debit/credit card issue, if any, been addressed on time?

a. Yes b. No c. Never applicable

12. How the grievances are addressed by bank officials and other authorities?

a. Respond but late b. Quick response and solve c. Never respond

13. Who do you think is more efficient in providing credit facility to customers?

a. Public sector banks b. Private sector banks c. No idea

14. Why do you think Public/ Private sector banks are efficient in providing credit

facilities?

a. Accessibility b. Documentation procedures

c. Rate of interest d. Repayment options


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15. Rate the following

Factors Excellent Very Good Good Bad Poor

a. Interest rate

b. Delivery of

services

c. Procedure

(loan sanction)

d. Behaviour of

bank staffs

e. Social

Awareness

Programmes

f. Overall

Service

16. Do you believe the level of competency (both in service delivery and redressing

grievances) is higher in private sector banks compared to public sector banks?

a. Yes b. No c. No idea

17. Having operated in a public sector bank do you prefer to open a bank account in

Private Sector bank?

a. Yes b. No

18. Any suggestion for improvement


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Working Note

Interpretation 3.13

Interest Rate 5*3+16*2+71*1+6*(-1)+2*(-2)/100= 1.08

Delivery of Services 9*3+28*2+56*1+6*(-1)+1*(-2)/100= 1.31

Procedure (LS) 9*3+18*2+38*1+20*(-1)+3*(-2)/100= 0.74

Behavior of Staff 12*3+29*2+38*1+15*(-1)+6*(-2)/100= 1.05

Social Awareness 2*3+11*2+23*1+38*(-1)+26*(-2)/100= -0.39

Overall Service 4*3+24*2+67*1+5*(-1)/100= 1.22

Only Bib and Annex

Documents

Transcript of Only Bib and Annex