INTRODUCTION

Bank

An organization, usually a corporation, chartered by a state or federal

government, which does most or all of the following: receives demand

deposits and time deposits, honors instruments drawn on them, and pays

interest on them; discounts notes, makes loans, and invests in securities;

collects checks, drafts, and notes; certifies depositor's checks; and issues

drafts and cashier's checks

Banking services in India

Banking dates back to 1786, the first bank established in India, then the nationalization of banks in 1969 and recently the liberalization of the same since 1991.

Different types of accounts and loans, facilitating with plastic money and

money transfer across the globe.

Some co-operative banks are scheduled banks, while others are non-

scheduled banks. For instance, SCBs and some UCBs are scheduled banks

but other co-operative bank are non-scheduled banks. At present, 28 SCBs

and 11 UCBs with Demand and Time Liabilities over Rs 50 crore each

included in the Second Schedule of the Reserve Bank of India Act.

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Co-operative Banks are subject to CRR and liquidity requirements as other

scheduled and non- scheduled banks are. However, their requirements are

less than commercial banks. Since 1966 the lending and deposit rate of

commercial banks have been directly regulated by the Reserve Bank of

India. Although the Reserve Bank of India had power to regulate the rate

co-operative bank but this have been exercised only after 1979 in respect

of non-agricultural advances they were free to charge any rates at their

discretion. Although the main aim of the co-operative bank is to provide

cheaper credit to their members and not to maximize profits, they may

access the money market to improve their income so as to remain viable.

BANK ACCOUNT

Open bank account - the most common and first service of the banking

sector. There are different types of bank account in Indian banking sector.

The bank accounts are as follows:

Bank Savings Account - Bank Savings Account can be opened for

eligible person/persons and certain organizations/agencies (as

advised by Reserve Bank of India (RBI) from time to time)

Bank Current Account - Bank Current Account can be opened by

individuals/partnership firms/Private and Public Limited Companies/

HUFs /Specified Associates/Societies/ Trusts, etc.

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Bank Term Deposits Account - Bank Term Deposits Account can be

opened by individuals / partnership firms / Private and Public Limited

Companies / HUFs/ Specified Associates / Societies / Trusts, etc.

Bank Account Online - With the advancement of technology, the

major banks in the public and private sector has facilitated their

customer to open bank account online. Bank account online is

registered through a PC with an internet connection. The advent of

bank account online has saved both the cost of operation for banks

as well as the time taken in opening an account. .

PLASTIC MONEY

CREDIT CARD

Credit cards in India is gaining ground. A number of banks in India are

encouraging people to use credit card. The concept of credit card was used

in 1950 with the launch of charge cards in USA by Diners Club and American

Express. Credit card however became more popular with use of magnetic

strip in 1970.Credit card in India became popular with the introduction of

foreign banks in the country. Credit cards are financial instruments, which

can be used more than once to borrow money or buy products and services

on credit. Basically banks, retail stores and other businesses issue these.

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DEBIT CARD

Debit cards, also known as check cards look like credit cards or ATM cards

(automated teller machine card). It operate like cash or a personal check.

Debit cards are different from credit cards. Credit card is a way to "pay

later," whereas debit card is a way to "pay now." When we use a debit card,

our money is quickly deducted from the bank account.

Debit cards are accepted at many locations, including grocery stores, retail

stores, gasoline stations, and restaurants. Its an alternative to carrying a

checkbook or cash. With debit card, we use our own money and not the

issuer's money. In India almost all the banks issue debit card to its account

holders.

MONEY TRANSFER

Beside lending and depositing money, banks also carry money from one

corner of the globe to another. This act of banks is known as transfer of

money. This activity is termed as remittance business. Banks generally issue

Demand Drafts, Banker's Cheques, Money Orders or other such

instruments for transferring the money. This is a type of Telegraphic

Transfer or Tele Cash Orders.It has been only a couple of years that banks

have jumped into the money transfer businessess in India. The

international money transfer market grew 9.3% from 2003 to 2004 i.e. from

US$213 bn. to US$233 bn. in 2004. Economists say that the market of

money transfer will further grow at a cumulative 10.1% average growth

ratethrough2008.

With the use of high technology and varieties of product it seems that

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"Free" money transfers will become commonplace. We will see more

bundling of tailored money services by banks and non-traditional entrants

that will include "free" money transfers. Many banks will even use money

transfer services as loss-leaders inorder to generate account openings and

cross-sell opportunities. The price evolution of money transfer products for

banks will be similar to that of consumer bill pay-the product is worth giving

away as an account acquisition tool to win overall market share and

establish banking relationships.

ATM money transfer card products have had terrible bank adoption rates

since being introduced in the last three to four years. Remitted who are

highly educated and have been already been exposed to ATM technology in

receiving countries tend to have an interest in this product. Money transfer

to India is one of the most important parts played by the banks. These

services provide peace of mind to either the NRIs or to the visitors to India.

Many Indian banks have ATM'S (automatic teller machine), enable to draw

foreign currency in India.

By 2007, we will see a good percent of all foreign-born households doing

some level of online banking. First-mover banks will start having a window

of opportunity to include online transfer functionality within the next

couple of years, which currently frequents traditional money transmitters

such as Western Union. There is a terrific opportunity for banks and non-

banks to offer more robust global inter-institutional funds transfer services

online. More than half of Western Union's customers today are already 5

banked, and most do not have an alternative product marketed by their

bank that is painless, quick, and cost-effective. That will change as banks

offer transfer services through their online channel.

VISA MONEY TRANSFER

Visa has recently introduced the 'Visa Money Transfer' option for its savings

and current account holder of any bank with a visa debit card. This facility

helps its customer to transfer funds from his bank account to any visa card,

either debit or credit within India.

A Visa Money Transfer is of similar kind, in many respects, to the third-

party fund transfer option given by some banks to its account holders

through e-cheque, but this is restricted to only visa cardholders.

INTRODUCTION OF PUNJAB NATIONAL BANK6

Punjab National Bank (PNB)

The Punjab National Bank or PNB is one of the well known commercial and

banking institutions in India. It is the second largest government owned and

regulated commercial bank in the country and offers specialized solutions

and financial services in a number of sectors. Around 37 million customers

are served by the bank on an average basis. The customized facilities and

services make it a trusted name in the domain of banking.

Growth of Punjab National Bank

Punjab National Bank was registered under the Indian Companies Act on 19

May in the year 1894 and its first office was set up at Anarkali Bazaar in

Lahore. Since then, the bank has become a great name in the field of

banking and is very much preferred by the customers for the wide range of

its services. Today, the bank has around 4,904 branches in around 764

cities.

Due to its facilities and services of high standards, Punjab National Bank has

also been the recipient of a number of prestigious awards. It has been

adjusted as the 248th biggest bank across the globe according to a recent

survey made by Bankers Almanac in London. The Economic Times has also

listed the bank as 38th among the premier 500 companies and the 9th

among the most trusted brands in India. The total asset value of the bank

amounts to around US$60 billion. There is also a subsidiary of the PNB in 7

the United Kingdom. In addition the bank also has branches in some other

cities like:

• Kabul

• Honk Kong

• Oslo

• Shanghai

• Dubai

SERVICES OF PUNJAB NATIONAL BANK

Punjab National Bank offers financial solutions and services in an array of

sectors. All these services that are offered keep pace with the changing

market trends in order to fulfill the needs and preferences of the

customers. Some of the well known sectors on which the main functions of

the bank are based are:

• Personal Banking

• Corporate Banking

• Agriculture finance services

• Industrial finance services

• Trade financial services

• International banking services

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PNB also has commercial relationship with more than 200 prestigious

international banks across the globe. It has the provisions of Rupee Drawing

Arrangements with around 15 exchange companies in the UAE and 1 in

Singapore.

In case of the personal banking segment, the bank offers customized

solutions to take care of almost all financial needs of the customers. Some

of the well known services that are offered in the bank are:

• Savings Fund Account

• Fixed Deposit scheme

• Current account

• Loan services

Punjab National Bank is also a well known name in housing loan benefits.

The bank offers both short term and long term loans. The rates are also

affordable and can be paid within a particular time. The housing loans are

given for a number of purposes such as:

• Construction of a building

• Purchase of a new house or a flat

• Purchase of flat or house on a First Power of Attorney basis

• For the purpose of repair or renovation of a house or a building

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The PNB Housing Finance sanctions around 80% of the cost of the project.

However, the maximum amount is around Rs 50 lakh. The maximum loan

amount for the purpose of renovation and repair is Rs 5 lakh. In most cases,

the loan is available for a period between 5 and 20 years before one

becomes 65 years of age. The interest of the loan is based on the reducing

balance and the principal amount of the loan is also based on the repaying

capability of the borrower.

MUTUAL FUNDS OF PUNJAB NATIONAL BANK

The mutual funds of Punjab National Bank are covered under the Principal

PNB Asset Management Company. Some of the well known schemes of

mutual funds are:

• Principal Growth Scheme

• Principal balanced Fund

• Principal Income Fund

• Principal government Securities Fund

• Principal Income Fund – Short Term Debt

• Principal Cash management Fund

• Principal Index Fund

• Punjab national bank home loan

• Punjab national bank IPO

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• Punjab National Bank Online

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INTRODUCTION OF HDFC BANK

HDFC BANK , INDIA

HDFC Bank marked the beginning of its services in the year 1995 with

setting a loud and clear message that it wants to become a "World-class

Indian Bank". It always believed in winning the hearts of its customers with

quality products and services. It is the sole reason why today HDFC has

been able to achieve both national and international acclaim.

BACKGROUND OF HDFC BANK

Housing Development Finance Corporation Limited (HDFC) was arguably

the first to obtain RBI's 'in-principle' approval to foray into private sector

bank. This came into effect when RBI was implementing liberalization

process to improve the banking industry of India in 1994. In 1994, the name

changed to HDFC Bank Limited. It started its function as a Scheduled

Commercial Bank in January 1995.

PRODUCTS AND SERVICES OF HDFC BANK

HDFC Bank offers its customers a large number of products and services to

meet their diverse needs and requirements. The vast range of products and

services of the bank is composed of:

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Personal Banking

• Private Banking

• Accounts and Deposits

Savings Accounts, Salary Accounts, Current Accounts, Fixed Deposits,

Recurring Deposit, Demat Account, Safe Deposit Lockers

• Credit, Debit and Pre-paid Cards

o Silver Credit Card, Titanium Credit Card, Value Plus Credit Card, Visa

Signature Credit Card, Corporate Platinum Credit Card, Purchase Card,

EasyShop Gold Debit Card, EasyShop International Debit Card, EasyShop

International Business Debit Card, EasyShop Titanium Debit Card,

MoneyPlus Card, ForexPlus Chip Card

• Investments and Insurance

Mutual Funds, Insurance, Tax Planning, Bonds, General & Health Insurance,

Equities & Derivatives, Knowledge Centre, Mudra Gold Bar

• Forex and Trade Services

Products & Services, Forex Services Branch Locator, RBI Guidelines, Forex

Limits

• Loans

Personal Loans, SmartDraft, Home Loans, Two Wheeler Loans, New Car

Loans, Used Car Loans, Working Capital Finance, Commercial Vehicle

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Finance, Tractor Loans, Health Care Finance, Loans Against Rental

Receivables, Warehouse Receipt Loans, Loan Against Property

NRI Banking

• Accounts and Deposits

Rupee Savings Accounts, Rupee Current Accounts, Rupee Fixed Deposits,

Foreign Currency Deposits, Accounts for Returning Indians, Compare

Accounts

• Investments and Insurance

Mutual Funds, Private Banking, Portfolio Investment Schemes

• Payment Services

NetSafe, InstaPay, BillPay, DirectPay, Online Donation, Visa Money Transfer

• Remittances

Funds Transfer Cheques / DDs / TCs, Quickremit, Cheque LockBox,

Quickremit

• Loans

Home Loans, Loans Against Securities, Loans Against Deposits

Wholesale Banking

• Government Sector

• Small and Medium Enterprises

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Funded Services, Non-Funded Services, Specialized Services, Value Added

Services, Internet Banking

• Financial Institutions & Trusts

Clearing Sub-membership, RTGS – Sub membership, Funds Transfer, ATM

Tie-ups, Tax Collection, Corporate Salary Accounts, Cash Management

Services, Derivatives Desk, Money Market Desk, Forex Desk, Custodial

Service, Mutual Funds, Stock Brokers, Insurance Companies, Commodity

Businesses, Participation in RBI Auctions, SGL Maintenance

• Corporates

Funded Services, Non Funded Services, Value Added Services, Internet

Banking, Supply Chain Partners (Dealer Financing, Vendor Financing),

Agricultural Lending

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REVIEW OF LITERATURE

Reviewing of literature is the obvious method for obtaining a basic

understanding of a particular subject, but may also contribute in solving

more specific problems. There are various areas where this method could

be applicable, ranging from general theory to case study, empirical research

and statistics. During this project several dimensions of literature study

have been applied. The literature study is presented in a separate section,

which also contains reflections of the applicability and relevance of the

specific literature.

NIRMALA D. AND K.V.RAO (October-December2006), Performance

evaluation of urban co-operative banks. The Indian journal of commerce

vol.59, no. 4

This paper examined the prudential measures aimed at better risk

management and avoidance of concentration of credit risk in urban co-

operative banks (UCBs). Based on the data of RBI, an attempt has been

made to examine the operational performance of UCBs for the period,

1999-00 to 2003-04. As per RBI guidelines the credit exposure norms

include fixed limit to different kinds of borrowers an sectors as well as

funded credit limits. The non-application of capital adequacy norms

undermines the stability of the whole banking system, as operational risk of

UCBs was similar to those commercial banks. Capital funds were segregated

into two broad groups, viz., Tier-1 and T ier-2. The result obtained showed

that the significance of UCBs was in the realm of the person has turned out

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to be a common knowledge after many banks started. Though RBI has been

initiating action to set the things right, taking into account the

recommendations of several committees. Finally, there was a situation for

strengthening the supervisory mechanism of RBI.

RAJU M. APPPALA ( October- December 2006), Competitive analysis of

public sector bank vs. private and foreign banks. The Indian journal of

commerce vo.59.no. 4.

This paper analyzed the competitive analysis of public, private and foreign

banks. The time period covered for analysis performance of banks from

1990-91 to 2001-02.te financial sector played a major role in the

mobilization and allocation of financial saving from the net saver to net

borrowers. The effective role of intermediation by banks in the banking

system was strong players in the role of intermediation. With the opening

of economy, strong competitive environment has emerged in the market by

the entry of private and foreign banks. The numbers of players in market

increased with easing entry barriers. In the competitive set up, margins on

traditional banking business of public sectors banks declined. Increased

competitiveness leads to inevitable changes in the market. The public

sectors banks need to be market oriented by devising new strategies to be

competitive in the market. In Result the public sectors banks have to give

much emphasis on efficiency factor both operating efficiency and financial

efficiency by introducing technology to promote sophisticated services to

consumers on par with private and foreign banks and by becoming more

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customers centric. This would keep the public sector banks more

competitive

GOYAL PUJA AND KARAM PAL (July-Sept.2008), productivity- based

comparative analysis of public private and foreign banks. The Indian

journal of commerce vol.61, No.3

This paper analyzed the cross relationship among various components of

productivity like earning per employee, business per employee and profit

per employee for public , private and foreign sector banks within India

Banking Industry has used data for five years i.e. the period started from

2001-02 to 2005-06. Various statistical tools like averages, ACGR, regression

and parametric tests have been used to establish evaluate and quantify the

cross-sectional relationship among the variables. Ownership characteristics

of banks were also incorporated into the analyzed to examine productivity

across ownership groups. Result showed that foreign sector banks were

outshining with their performance in all the selected parameters during the

period of study. In terms of ACGR the absolute number too, these banks

have been in top in all the categories. But average ACGR, taking all the

banks of one sector together, is highest for public sector banks in case of

business per employee. It showed that the public sector banks were

growing with consistent pace and intra group variations were also less than

other sectors. Result also showed that private and foreign sector banks

showed significant relation between parameters.

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KAUR RAJINDER AND RITU GOYAL (july-september2008), Performance of

new private sector banks in India. The Indian journal of commerce vol. 61,

No.3

A decade and half has elapsed since the establishment of new private

sector banks in India. With the concept of retail banking and universal

banking gaining ground, most of the Indian banks especially the new

private sectors banks followed aggressive marketing practices to garner a

bigger share of the market. The competition amongst the banks was getting

tough. These banks were listed on the stock exchanges and some of them

have become almost a household name.

The study covered seven new private sector banks operating in India. The

time period covered from 2001-07 for evaluating the performance ranges.

The study analyzed the performances of the banks by using various

Balances sheet and Profit and Loss ratios. In Result there was significant

difference amongst the mean ratios of the banks in out of 16 selected

parameters.

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PAL VED AND PARVEEN CHAUHAN (October-December 2009). Relative

Efficiency of Indian commercial banks. The Indian journal of commerce

vol.62 No. 4

This paper investigated the nature and extent of relative technical

efficiency in Indian banks for the period from 1990 to 2008. Technical

efficiency measures are computed by using the data envelopment analysis.

To measure the efficiency used the data from the input and outputs of

commercial banks were specified in light of intermediation approach, value

addition approach and income approach. The result indicated that majority

of Indian commercial banks were good performer in terms of income

approach. New private banks were observed for their leading position in

the Indian banking system. In post financial liberalization period (1999-08)

the efficiency of banks, based on their intermediation role, has reduced

relative to the previous period.

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RESEARCH METHODOLOGY

Marketing Research is the systematic design, collection, and analysis of

data and reporting of information and findings relevant to a specific

marketing situation facing the company. Every project requires the genuine

research.

Success of any project and getting genuine results from that depends upon

the research methods used by the researcher. Research in common

parlance refers to a search for knowledge. Research is a systematized effort

to gain knowledge and the methods adopted in order to conduct the study

so that we can have proper findings and analysis, which may assist in the

accomplishment of goals, and objectives of the project, are known as

Methodology. Methodology that was felt best for this project about

“Performance Evaluation of PNB and HDFC Bank”: A Comparative is as

follows:

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Objective of the study

1.) To study the services of HDFC and PNB Banks.

2.) To analysis the customers perception towards the services of HDFC and

PNB Banks.

3.) To evaluate the performance of the HDFC and PNB Banks from last three

years.

4.) To give suggestion for improvements of the services

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Research Methodology is a systematic way to solve the research problem. It may be understood as a science of studying how research is done scientifically.

RESEARCH DESIGN: Our Research is a fact-finding research. So for the fact-finding we use Descriptive Research.

Descriptive research includes survey and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists at present

SOURCES OF DATA COLLECTION

The core finding of the study is based on the information collected through both primary data & secondary data.

Method of data collection

The primary information was collected from the customers with the help of a structured questionnaire and journals were used as a secondary source of information.

SAMPLING DESIGN

Sampling Technique: The selection of the respondents is done on the basis of convenience sampling as the universe under the coverage area of the study is large.

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Sample size: The sample size for the research is 100

Sample Area:

BATHINDA

DATA ANALYSIS & INTERPRETATION:

For the purpose of analyzing, raw data is summarized into charts and the results have been carried out. The questions, which have alternative choices, were analyzed by taking percentages. Proper analysis of the data has been made to get proper results

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Financial Performance Evaluation

1. Fixed Deposits

Interpretation:

According to PNB has more fixed deposits in comparison to HDFC bank from 2009,2010 and 2011 respectively 60.18 ,61.08 & 66.14 and HDFC bank has 39.81% in 2009, 38.91% in 2010 and 33.85% fixed deposits in 2011.

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2. Saving Bank Deposits

Interpretation:

As regards the saving deposits, the PNB hold 64.27 percent in the 2009 which is just 35.78 percent by HDFC bank and in 2010 PNB hold 61.03 % & HDFC hold 38.96% there has been reduction in saving deposits base due to customers shift towards other banks. Saving deposits in 2011 by PNB is 59.57 percent and 40.42 percent by HDFC bank.

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3. Current Deposits

Interpretation:

With respect to current deposits the share of PNB account to near about 65 percent as against 35 percent by HDFC bank. 61.78%,64.75% & 62.51% current deposits hold by PNB in respectively years 2009, 2010 and 2011. But the HDFC bank hold 38.21% in 2009, 64.75% in 2010 and 37.49% in 2011.

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4. Bill Purchased and Discounted

Interpretation:

The PNB hold a share of 47.45% in bills purchased and discounted and HDFC bank hold the 52.46% in the year of 2009. In year of 2010 and 2011 which showed the decline the percentage of PNB that is 41.20 and 41.67 but on the other hand side HDFC bank increase the share of bill purchased and discounted that is 58.79% and 58.32% in the year of 2010 and 2011.

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5. Term Loans

Interpretation:

In the loan portfolio, the PNB has more share of term loan but at decreasing rate. In the 2009 term loan of PNB is 52.86% and HDFC bank has 47.13% of term loan & in 2010 PNB hold 51.38 % and HDFC hold 48.86 But in the 2011 PNB has 50.57% of term loan and HDFC bank increasing the percentage at 49.42 of term loan.

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6. Cash Credits and Over Drafts

Interpretation:

With respect the cash credit and over draft the PNB still command more than 75% market share from 2009 to 2011 and HDFC bank has near about 25% of cash credit and over drafts from 2009 to 2011.PND hold 76.39 , 77.41 & 77.53 respectively in 2009,2010 &2011 and HDFC hold 23.86 , 22.58 and 22.46 in respectively 2009,2010 and 2011.

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7. Deposits Per Employee

Interpretation:

With regards to deposits per employee, in 2009 deposits per employee of PNB is 57.1% and in HDFC bank 42.89%, the deposits per employee increase in the both banks that is 57.55% in PNB and 42.44% in HDFC bank in year of 2010. In 2011 PNB has still higher percentage in comparison to HDFC bank that is 59.25% and 40.75% respectively.

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8. Advances Per Employee

Interpretation:

With respect to advances per employee, the HDFC bank has more percentage of HDFC bank in comparison to PNB. PNB hold the near about 43% share of advances per employee from 2009 to 2011. HDFC bank hold the advances per employee in 2009 is 58.57% in 2010 is 57.44% and in the year of 2011it is 56.10%. and PNB hold 41.42, 42.55 and 43.9% in respectively 2009 , 2010 and 2011

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9. Net Profit

Interpretation:

With regards to net profits of banks in 2009 PNB earned the 57.92% net profit and HDFC bank earned the 42.07% net profit. There is gradual increase in net profits of the both banks in 2010 that is 56.98% net profit earned by PNB and HDFC bank earned 43.01%. In the 2011 PNB earned the 53.48% and HDFC bank earned 46.51%.

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ON THE BASIS OF CUSTOMER SATISFCATION

1. In which Bank do you have account?

INTERPRETATION:

Out of 100 respondents , 41% respondents have account in Punjab National Bank, 30% respondents have account in HDFC Bank and the remaining 29% respondents have account in others banks.

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2. Why have you opened account with this bank?

INTERPRETATION:

This is found that 45% respondents have opened account due to the better services of the bank, 23% respondent have opened the account because of the popularity of the bank,13% respondents are influenced by advertisement and 19% respondents have opened the account on the advice of friends.

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3. Which type of account do you have in this bank?

INTERPRETATION:

Out of 100 respondents, 30% respondents having saving account, 32% respondents having current account, 20% respondents having fixed deposits account, only 2% respondents having NRI account and 7% respondents having any other account. Majority of respondents having the both saving and current account.

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4. From how many years you are using the services of this bank?

INTERPRETATION:

Majority of respondents using banking services from more than 5 years that is 56%, 26% respondents using banking services from 3-4 years and 20% respondent are the new customers of the bank who are using banking services from 1-2 years.

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5. Are you satisfied with the time taken by the banks?

INTERPRETATION:

63% respondents are satisfied with the time taken by the banks but the 37% respondents are not satisfied with the time taken by the banks.

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6. Have you ever availed the services of the bank?

INTERPRETATION:

Majority of respondents have availed the services of banks that is 97% but 3% respondents have not availed the services of banks.

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If yes, then specify………………

INTERPRETATION:

Most of respondents used the ATM service that is 63%, net banking service is used by 12% respondents, 9% respondents used the debit and credit services of the bank,7% respondents used mobile banking services , 5% respondent used the locker services of the bank and remaining 4% respondents used the other services of the bank.

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7. Does your bank have any customer complaint redresser mechanism?

INTERPRETATION:

Out of 100 respondents, 74% respondents said yes in his bank have customer complaint redresser mechanism but the 26% respondents said no in his bank have no customer complaint redresser mechanism.

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8. In your opinion what are the main benefits of direct banking services?

INTERPRETATION:

Out of 100 respondents, 31% respondents said that direct banking provide the quick services to customers, 25% respondents said that no need to carry cash, 24% respondents said that direct banking is less risky and 20% respondents said that direct banking is easy to operate.

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9. Are you satisfied with the performance of bank with regards to:

INTERPRETATION:

35% respondents said that bank provide the average services to the customers, 30% respondents said that bank provide the good services to customers, 20% respondents said that bank provide the very good services ,10% respondents said that bank not provide the appropriate services and 5% respondents are not satisfied with the services of the bank.

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Are you satisfied with the performance of bank with regards to:

INTERPRETATION:

30% respondents are satisfied with the performance of bank with regards to good quality of product,23% respondents said that bank provide the moderate quality product,20% respondents said that bank provide the poor quality, 19% respondents are satisfied bank provide the very good product quality but the 8% respondents are not satisfied with the performance of bank with regards to quality.

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Are you satisfied with the performance of bank with regards to;

INTERPRETATION:

Out of 100 respondents, 34% respondents said that bank solve the customers complaint service is average,25% respondents said that problem solving service of bank is good, 21% respondents said that customer complaint service of the bank is poor, 11% respondents are satisfied with

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the customer complaint service but the 9% respondent said that bank not properly handle the customers complaints.

Are you satisfied with the performance of bank with regards to:

INTERPRETATION:

The behavior of staff towards customers is average said by 36% respondents,31% respondents said that the behavior of staff is good, 15% respondents are not satisfied with the behavior of staff, but 13 % respondents said that behavior of staff is very good , 5% respondents are strongly unsatisfied with staff they said that the behavior of staff is very poor.

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FINIDINGS

Financial performance evaluation

1. PNB has more number of saving and current deposits than HDFC bank on the other hand HDFC has more number of fixed deposits.

2. In term loan and cash credits and over drafts PNB hold the higher share in comparison to HDFC Bank. HDFC bank increase the percentage in bill discounted and purchased.

3. The percentage of Deposits of per employee in PNB is higher than HDFC Bank. On the other side HDFC bank hold the higher percentage in Advances per employee.

4. The net profits of PNB is more than HDFC bank.

On the basis of customer satisfaction

1. Most of the people have account in PNB.2. Due to the better service of bank customer have opened the

account in bank.

3. Majority of the respondents are using banking service more than 5 years.

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4. The greater number of respondents using the ATM service of the bank.

5. Most of respondents said that direct banking is beneficial because of quick service.

6. The higher number of respondents said that bank’s performance with regards to services, quality, customer complaint and staff is average satisfied to custom

Conclusion

In nut shell we can say that banking services play the vital role in the

economy. In Indian banking services Punjab national bank and HDFC banks

are leading and growing banks. Punjab National Bank earned the more

profits and HDFC bank has the no. of fixed deposits. Public bank mostly

prefer by the people due to security of their saving and people prefer HDFC

bank because of service quality of the bank. While the entry of private

sectors banks in Indian economy public sector banks provide the better

services to customers but there is need to Proper Corporation of the staff

members of public bank towards customers. Private sector should create

loyalty of customer towards their saving.

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Suggestions

1.Bank staff should be customer friendly and highly motivated to serve the normal customer.

2. As far as possible, banks should reduce its documentation process while providing loans.

3. Computerization should be done in banks at all levels and the operators should be properly trained.

4. Token system should be induced so as to minimize the waiting lines in the banks.

5. Proper ambience in the banks can develop a healthy working culture.

6. 24 hours banking should be induced so as to facilitate the customers who

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may not have a free time in the daytime. It will help in facing the competition more effectively.

7. More ATM coverage should be provided for the convenience of the customers

BIBLIOGRAPHY

JOURNALS AND PROJECT REPORTS:-

RAJU M. APPPALA ( October- December 2006), Competitive analysis of

public sector bank vs. private and foreign banks. The Indian journal of

commerce vo.59.no. 4.

GOYAL PUJA AND KARAM PAL (July-Sept.2008), productivity- based

comparative analysis of public private and foreign banks. The Indian

journal of commerce vol.61, No.3

PAL VED AND PARVEEN CHAUHAN (October-December 2009). Relative

Efficiency of Indian commercial banks. The Indian journal of commerce

vol.62 No. 4

KAUR RAJINDER AND RITU GOYAL (july-september2008), Performance of

new private sector banks in India. The Indian journal of commerce vol. 61,

No.3

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WEB SITES:

http://www.businesstoday.com www.cashcow.in/ -

http://www.pnbindia.in/

http://www.reportjunction.com/

https://www.pnbindia.in/Upload/En/AnnualReport.pdf

http://www.moneycontrol.com/financials/punjabnationalbank/

balance-sheet/PNB05

http://www.investorwords.com/401/bank.html

http://www.hdfcbank.com

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Appendix(Questionnaire)

1. Fixed Deposits

2. Saving Bank Deposits

3. Current Deposits

4. Bill Purchased and Discounted

5. Term Loans

6. Cash Credits and Over Drafts

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7. Deposits Per Employee

8. Advances Per Employee

9. Net Profit

On The Basis Of Customer Satisfaction

Questionnaire

Name………………………..

Occupation…………………………

Age…………………………………….

Contact No………………………………..

1) In which Bank do you have account?

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a) PNB b) HDFC c) OTHER

2) Why have you opened account with this bank?

a) Popular Bank b) Better Services c) On the Advice of Friends

d) Advertisement

3) Which type of account do you have in this bank?

a) Saving Account b) Current Account c) Fixed Deposits

d) NRI Account d) Any Other

4) From how many years you are using the services of this bank?

a) 1-2 years b) 3-4 years c) Above 5 years

5) Are you satisfied with the time taken by the banks?

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a) Yes b) No

6) Have you ever availed the services of the bank?

a) Yes b) No

If yes then specify………………………………………………………………..

7) Does your bank have any customer complaint redresser mechanism?

a) Yes b) No

8) In your opinion what are the main benefits of direct banking services?

a) Quick services b) Convenient to operatec) Less Risky

d) No Need to Carry Cash

9) Are you satisfied with the performance of bank with regards to:

Very Good Good Neutral Poor Very Poor

a) Services

b) Quality

c) Customer Dealing

d) Staff

10) Any Suggestions………………………………………………………………………….

……………………………………………………………………………………………………………

………………………………………………………………………………………………………………..

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