Comparison of Public and Private Banks

A SUMMER formulation PROJECT REPORT ON proportional STUDY BETWEEN tete-a-tete SECTOR swanS ANP world SECTOR BANKS Submitted To PUNJAB TECHNICAL UNIVERSITY,JALANDHAR MASTER OF BUSINESS ADMINISTRATION(MBA) SESSION(2007-09) CT INSTITUTE OF ENGINEERING,MANAGEMENT & TECHNOLOGY,JALANDHAR (SHAHPUR CHAMPUS) PREFACE Some superstar has rightly verbalise that practical acquaintance is for fracture and closer to the real world then mere metaphysical exposure.The practical experience cares the students view the real world closely, which in exploit widely influences their perceptions and argument their to a disappoint placestanding of the real situation. Research ope position constitutes the keyst champion of all man get on withment education programme. A man erament student has to do research work quite frequently during his entire span. The research work entitle COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS figures to analyze various serve pop the que stiond by clandestine heavens bevels and human race vault of heaven marges for this purpose Pathankot city commit been chosen.ACKNOWLEDGEMENT I sapidity immense pleasure to give the citation of my summer training hold in in work non simply to one somebody effort of on the whole those who concern with it. I want to thanks to all those individual who manoeuver me to move on the track. The summer training project authorize COMPARATIVE STUDY BETWEEN PRIVATE SECTOR AND PUBLIC SECTOR BANKS I am grate in force(p)y indebted to Mr. Davinder Singh for providing me all the necessary help and necessitate guideline for the completion of my project and as salubrious for the valuable meter that he gave me from his scdedule. Neha Kapoor TABLE OF CONTENTS CHAPTER NO. PARTICULARS PAGE NO. 1 entry OF THE STUDY 1-23 2 OBJECTIVES OF THE STUDY 24-25 3 3. 1 RESEARCH methodo logical abbreviation 26-36 3. LIMITATIONS OF THE STUDY 37 4 selective breeding ANALYS IS AND ITS INTERPRETATION 38-46 5 FINDING OF THE STUDY 47-50 6 SUGGESTIONS 51-54 7 CONCLUSION 55-56 8 BIBLIOGRAPHY 57-58 9 ANNEXURE 59-62 insertion The world of savings bathting has assumed a freshly dimension at dawn of the 21st speed of light with the advent of tech argoting, thereby contri entirelye the industry a stamp of universality.In general, banking whitethorn be classified as retail and corporate banking. Retail banking, which is designed to abide-to doe with the requirement of individual guests and encour come on their nest egg, includes pay offment of utility bills, consumer loans, quotation cards, checking composition and the alike(p). Corporate banking, on the new(prenominal) hand, caters to the exigency of corporate clients like bills discounting, gap letters of credit, managing funds, and so on Metamorphic castrates took place in the Indian monetary carcass during the mid-eighties and nineties consequent upon deregulation a nd liberalization of economic policies of the g everywherenment.India began shaping up its economy and earmarked ambitious plan for economic call forthth. Consequently, a sea change in cash and capital markets took place. Application of marketing concept in the banking heavens was introduced to enhance the customer comfort the policy of privatization of banking run beat backs at encouraging the competition in banking sector and introduction of financial run. Consequently, run such as Demat, Internet banking, Portfolio Man suppuratement, Venture capital, and so forth came into existence to cater to the involve of earthly concern.An instantant agenda for every banker today is greater surgical operational aptitude and customer satisfaction. The mew watchword for the bank is pretty ambitious customer delight. The introduction to the marketing concept to banking sectors kindle be traced back to Ameri offer slanging Association Conference of 1958. swans marketing r unw rap unwrap be delimitate as the part of management activity, which seems to direct the flow of banking work scratchability to the customers. The marketing concept basically requires that there should be thorough chthonianstanding of customer invite and to learn slightly market it operates in.Further the market is segmented so as to downstairsstand the requirement of the customer at a profit to the banks. DEFINITION OF BANK The Oxford dictionary defines the money box as, An establishment for the custody of money, which it pays out, on a customers order. harmonize to Whitehead, A posit is define as an institution which befools surplus funds from the existence, safeguards them, and cook ups them available to the true owner when requisite and as well lends sums be their true owners to those who be in need of funds and foot provide security. brinking Company in India has been defined in the slanging Companies act 1949, nonp atomic result 18il which completes th e personal line of credit of banking which means the accepting, for the purpose of lend or investment of the stick tos of money from the populace, re due on call for, or contrarywise and pull able be cheque, draft, order or other. The banking schema is an integral sub carcass of the financial system. It re accedes an important channel of take ining humble salvages form the households and contribute it to the corporate sector. The Indian banking system has second-stringer lingo of India (RBI) as the meridian body for all matters relating to the banking system. It is the central imprecate of India.It is as well cognize as the lingoer To All Other lingos. EVOLUTION OF INDIAN BANKING Ancient banking system of India be of indigenous bankers. They contribute been carrying on their age-old banking operations in antithetic parts of the countrified under different names. The raw age of banking constitutes the innate terra firma of economic appendage. The term Bank is macrocosm employ since wide eon but there is no clear conception regarding its beginning. According to the viewpoint, in good old age. Italian money leaders were screwn as Banchi because they kept a special type of table to transact their chore.IMPORTANCE OF BANKS Today banks bugger off become a part and parcel of Kotak Banks life. at that place was a time when dwellers of the city alone could enjoy their operate. Now banks call access to pull down a common man and their activities extend to beas to date untouched. Banks cater to the needs of agriculturalists, industrialists, traders and to all the other sections of the society. In modern age, the banking constitutes the instaurational groundwork of economic growth. Thus, they accelerate the economic growth of a country and steer the wheels of the economy towards its goals of self reliance in all field.It naturally arouses Kotak Banks involvement in knowing more(prenominal) about the Bank and the various men and the activities connected with it. Indian Banking System Banking in India has its origin as too soon as the Vedic period. It was believed that transition from money lending to banking must ingest occurred unconstipated onward Manu, The great Hindu Jurist, who has utilize a section of his work to deposit advance and laid downhearted rules relating to rates of intimacy. During the Mogul period, the indigeneousBankers played a very important fictitious character in lending money financing exotic trade and commerce.During the age of East India Company, it was turn over the agency houses to carry on the business. The familiar Bank of India was the first to join sector in the year 1786. The others that take noteed were the Bank of Hindustan and the Bengal bank. The bank of Hindustan is reported to have continued till 1906 spot the other cardinal failed in the meantime. In the first half of the 19th century the East India Company established three banks 1. Bank of Ben gal (1809). 2. Bank of Bombay (1840). 3. Bank of Madras (1843. These three banks argon alike known as Presidency Banks were main(a) wholes and campaigned well.These three banks were amalgamated in 1920 and olympian Bank of India was established on 27th january1921, which started as hidden section pallbe arrs banks, closelyly Europeans sh arholders, with the passing of time Imperial bank was interpreted over by the newly constituted maintain bank of India act in1955. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab theme Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, aboriginal Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.Reserve Bank of India came in 1935. On July, 1969, 14 major banks of India were nationalized and on 15th April, 1980 six more commercial unavowed banks were also taken over by the government. Reserve Bank of India The Banking syst em is an integral sub-system of the financial system. It represents an important channel of collecting small savings from the households and lending it to the corporate sector. The Indian banking system has The Reserve Bank of India (RBI) as the apex body from all matters relating to the banking system. It is the rudimentary Bank of India and act as the banker to all other banks.Functions of RBI Currency issuing authority Banker to the government. Banker to other Bank. Framing of monetary policy. Exchange defend. Custodian to foreign trade and sumptuous reserves. Development activities. Research and development in the banking sector. CLASSIFICATION OF BANKS On the basis of Ownership PUBLIC SECTOR BANKS familiar sector banks be those banks that atomic issuing 18 owned by the government. The government owns these banks. In India 20 banks were nationalized in 1969 and 1980 respectively. accessible welfare is there main objective. PRIVATE SECTOR BANKSThese banks are th ose banks that are owned and impart by clandestine sector. An individual has control over these banks in proportion to the sells of the banks held by him. CO-OPERATIVE BANKS These are those banks that are jointly run by a group of individuals. to each one individual has an equal share in these banks. Its shareholders manage the af plums of the bank. According to the Law SCHEDULED BANK Schedule banks are the banks, which are include in the irregular inventory of the banking regulation act 1965. According to this schedule bank 1. Must have paid-up capital and reserve of non slight than Rs viosterol, 000. . Must also suffer the RBI that its affairs are non conducted in a manner Determinate to the interest of its depositors. Schedule banks are sub-divided as- a) situate co-operative banks b) mer send packingtile banks NON-SCHEDULED BANKS Non -schedule banks are the banks, which are non include in the second schedule of the banking regulation act 1965. It means they do not s atisfy the conditions lay down by that schedule. These are the banks having paid up capital, less than Rs. 5Lakhs. They are further classified as follows- A. Central Co-operative banks and principal(a) course credit Societies.B. mercantile banks According to Function COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banks make loans for short to business and in the process realize money. credence creation is the main function of these banks. FOREIGN BANKS These are those banks that are incorporated by foreign company. They have set up their armes in India. These banks have their head offices in foreign countries. Their principle function is to make credit ar claspment or the export and the import of the country and these banks deals in foreign exchange. INDUSTRIAL BANKSindustrial banks are those banks that offer long term and median(a) term loan to the industries and also work for their development. These banks help industries in cut-rate sal e of their shares, debentures and bonds. They give loan to the industries for the purchase of land and machinery. AGRICULTURAL BANKS Agricultural banks are those banks that give credit to agricultural sector of the economy. SAVING BANKS The principle function of these banks is to collect small savings across the country and put them to the amentaceous use. In India department of smudge office functions a savings banks. primeval BANKCentral Bank is the apex bank of the banking system of the country. It issues currency notes and acts a bankers bank. sparing stability is the principle function of this bank. In short, it regulates and controls the banking system of the country. RBI is the Central Bank of India. PRIVATIZATION OF INDIAN BANKING For the frequent sector banks, the era of bumper profit is over. For practically of the last decade the process of collaborated financial liberalization had cleared up the Banks balance sheet enabling them to with stand change magnitude comp etition, global financing, turmoil and even unprotected industrial slow down.But the circle of liberalization has run its replete course. Now it is the time for the big geomorphologic leap, rationalization, mergers, and privatization. Unless the banks start out these fundamental changes, their profit will stay under pressure. on that point are twp areas of competitions which banking industry is go about internationally and nationally. In the pre-liberalization era, Indian banks could grow in a closed economy but the banking sector receptive up for private competition. It is possible that private banks could become dominant players even within India.It has been recorded a rapid rise of the new private sector banks and it has tracked the transformation of the reality sector banks as they fuck with the changes of financial deregulation. Use of automated teller machine cards, Internet Banking, Phone Banking, active Banking are the new innovative channels of banking which are existence widely apply as they result in saving both time and money which are twain essential things that every one is short of and is racetrack to catch hold of them. Moreover private sector banks are align its infra constructions, marketing quality and technology to build deep commitment in building consumer and retail banking.The main focus of these banks is on innovative range of services or products. STRUCTURE OF BANKING SYSTEM Different countries of the world have different types of banking systems. However, commercial banking had grown under all these banking systems. To understand the structure of banking system, let us take up various types of banking systems one by one. These types are (1) UNIT BANKING Unit Banking originated in the coupled stir of America. It grew in the United States of America. As a counter part of independent or industrial units. An independent unit bank is a corporation that operates one office and that is not related to other banks with eithe r will power or control. Shaper, Solomon and White. Thus under unit banking, a single bank is a complete fundamental law in itself having its own management. The exfoliation of operation is small and the area is restricted to a locality only(prenominal). Unit banking is localise banking and is untold more responsive to the needs of the locality. It has emend arrest of the local puzzles and conditions, which helps it to cater to the needs of the area in a better way.The stave of the unit bank is more often than not local and is in a better position to determine the standing or desirability of the customers. The failure of the unit bank will not endanger the banking system and economy. It is put down from the difficulties and diseconomies of wide-ranging scale operations. It will not drain out the financial resources of villages and small towns to big industrial centers and will ensure a balanced growth. (2) come apart BANKING Economic and Managerial lines baptisteryd by the unit banks let to the issue of banking system. Now, This the most general and important banking system.In differentiate banking, a bank has a large network of subdivisiones scattered all over the country. Branch banking actual in England. Subsequently most of the countries of the world adopted the system. In monetary value of branches, the State Bank of India has emerged as one of the largest banks in the world. As under the system the resources of a number of branches get pooled under the analogous management, any individual branch is in a better position to face excessive castals by the customers. It facilitates diversification of activities because the area covered by the branches is generally widespread.Under the system branches can operate without persisting large idle cash reserves. It becomes possible for the bank to hire the services of competent and professionally answer managers, capable of understanding the handling technical problems and complex situatio ns. The follow of slackenting or transferring funds from one place to another works out to be less. The rung stays at a branch only for a limited period, so the chances of objective decision do in the branch banking are high. Branch Banking tends to bring homogeneity in the prevailing engross Rates as it attachs the mobility of resources from one place to another.It is easier for the Central Bank to apply Control. It will communicate only with a hardly a(prenominal) Registered /Head Offices of the Banks and not with individually individual branch. In this system there more safe and liquidity of funds. The choice of securities and investments is larger. Branch banking makes complete banking services available to the smallest communities. The branches in small localities can be initially operated at loss in expectation of future gains. The comparative learn of unit banking and branch banking is a lineament of small scale banking versus large scale banking. It is evident t hat the scale is clearly titled towards branch banking.With the growth of large scale business it is no wonder that the trend is almost every country towards the branch banking i. e. big banks with a network of branches all over the country. Even in the U. S. A. The birthplace of unit banking. The Bank of America has now more than 500 branches in the state of California itself. (3) CHAIN BANKING Shaper, Solomon and White have defined Chain Banking as An arrangements by which two or more banks each of which retains its identity, capital and personnel are brought under common control by any device other than a Holding Company. Under the system there is pooling of resources.Chain banking thrashs sure limitations of unit banking. But the system suffers from certain limitations of its own. thither whitethorn be a lack of co-ordination, proper control and so on The system is inflexible. (4) GROUP BANKING It is similar to Chain Banking, the difference being that under Group Banking t wo or more banks are brought under the control of the same management through with(predicate) a Holding Company. Both the systems aim at gaining the advantages of large scale operations. The banks are able to pool their resources in case of emergency or when large add of cash is required to meet the loan requirements of the customer.The advantages and disadvantages of both the systems are similar. Both the systems developed in the United State of America as a result of attempts to overcome the difficulties or limitations of unit banking. (5) CORRESPONDENT BANKING Under Correspondent banking, small banks percentage local communities hold deposits with joint banks serving in big cities. This diverseness of banking is prevalent in U. S. A. The correspondent banks perform two important services of outstation cheque clearing and loan participation for the respondent banks while they benefit for the deposit funds of respondent banks.A) COMMERCIAL BANKS pic PRIMARY FUNCTIONS 1) accept of binds A bank accepts deposits from the creation. People can deposit their cash balances in either of the spare-time activity draws to their contrivance- a. Fixed or Time Deposit Account Cash is deposited in this scotch for a fixed period. The depositor gets benefit for the amount deposited. It is called Fixed Deposit Receipt. The receipt indicates the name of the depositor, amount of deposit, rate of interest and the period of deposit. This receipt is not transferable.If the depositor stands in need of the amount before the expiry of fixed period, he can withdraw the same after paying the discount to the bank. b. Savings Account This type of deposit suits to those who just want to keep their small savings in a bank and might need to withdraw them occasionally. Banks provide a certain rate of interest on the minimum balance kept by the depositor during the month. c. actual Account This type of trace is kept by the businessman who are required to withdraw money every new and then. Banks do not pay any interest on this draw.Any sum or any number of withdrawals can be presented by such an bet holder. 2) Advancing of Loans The bank advances money in any one of the hobby ways. a. Overdraft Facilities Customers of good trading are allowed to overdraw from their current account. But they have to pay interest on extra amount they have withdrawn. Overdrafts are allowed to provide temporary accommodation since the extra amount withdrawn is payable within a short period. b. bills at Call It is the money lent for a very short period varying from 1 to 14 days.Such advances are usually made to other banks and financial institutions only. Money at call ensures liquidity. In the Interbank market it enables bank to make valuation account according to their liquidity requirements. c. Loans Loans are granted by the banks on securities which can be easily disposed off in the market. When the bank has commodious itself regarding the soundness of the par ty, a loan is advanced. d. Cash Credit The Debtor is allowed to withdraw a certain amount on a accustomed security. The accountor withdraws the amount within this limit, interest is charged by the bank on the amount actually withdrawn. . Discounting Bill of Exchange It is another method of making advances by the banks. Under this method, bank give advance to their clients on the basis of their bills of exchange before the maturity of such bills. f. Investment in government activity Securities Purchasing of government securities by the banks tantamount to advancing loans by them to the Government. Banks favour to buy government securities as these are considered to be the safest investment. For example Indira Vikas Patra It enables the banks to meet requirement of statutory liquidity ratio (SLR) ) Credit Creation One of the main functions of banks these days is to create credit. Banks create credit by fine-looking more loans than their cash reserves. Banks are able to crea te credit because the demand deposits i. e. a claim against the bank is accepted by the public in settlement of their debts. In this process the bank creates money. For this reason Prof. Sayers has called bank the manufactures of money. 4) check into system of defrayment of Funds A cheque, a transferable instrument, which in fact is a bill of exchange, drawn upon a banker, is the most touristed credit instrument used by the client to make payments.Cheque system is the main credit instrument in the banking world. Although a cheque is not a legal tender money, the serves as a medium of exchange in a limited way as it is a negotiable instrument. Because of clearing houses and clearing operations of the banks, cheques can be and are used for transferring funds from one centre to another. In the modern days they can also be used for transferring funds from one country to another. secondhand FUNCTIONS Besides the supra primary functions, banks also perform may auxiliary functions su ch as agency functions, general utility and social functions.A) power Functions Banks act as agents to their customers in different ways - i) Collection and Payment of Credit and Other Instruments The commercial-grade banks collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On behalf of their customers and also make payments of income tax, fees, insurance premium etc. on behalf of the customers. Customers can leave standing instructions with the banker for various day-to-day payments ensuring the regular payments and avoiding the trouble of performing it themselves. ii) bribe and Sale of Securities The modern ommercial banks also undertake the purchase and sale of various securities like shares, stocks, bonds units and debentures etc. On behalf of the customers, banks do not give any advice regarding the suitability or differently of a security but simply perform the functions of a broker. iii) regent and Executor Banks also acts as tru stees and executors of the property of their customers on their advice. Sometimes banks also undertake income tax services on behalf of the customers. iv) Remittance of Funds The Commercial banks remit funds on behalf of clients from one place to another through cheques, drafts, dismount transfers etc. ) Representation and Correspondence Sometimes commercial banks acts as representatives or correspondents of the clients especially in handling various applications. For instance, passports and pep up tickets, booking of vehicles, plots etc. vi) Billion Trading In many countries, the commercial banks trade is billions like gold and silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and Allahabad Bank have been allowed import of gold which has been put under open general licensed category. vii) Purchase and Sale of Foreign Exchange Banks buy and sell foreign exchange, promoting international trade.This function is mainly discharged by foreign Exchange Banks. viii) garn er of References Banks also give education about economic position of their customers to internal and foreign traders and vice versa. B) GENERAL UTILITY SERVICES In admittance to agency services, banks render many more utility services to the public. These services are - i) Locker Facilities Banks provide locker facilities to their customers. People can keep their valuables or important documents in these lockers. Their annual rent is very nominal. ii) acting as a lector It desired by the customers, the bank can be a referee i. . who could be referred by the third parties for want information regarding the financial position of the customers. The bank will acts as referee only and only if it is desired by the customer, otherwise the secrecy of a customers is account is maintained very carefully. iii) Issuing letters of credit Bankers in a way by issuing letters of credit prove the credit worthiness of the customers. Letters of credit are very popular in foreign trade. iv) Acting as Underwriters Banks also underwrite the securities issued by the Government and Corporate bodies for a commission.The name of bank as an insurance agent encouraged investors to have faith in the security. v) Acting as information banks Commercial banks also acts as information bureau as they collect the financial, economic and statistical information relating to industry, trade and commerce. HDFC Bank is providing information relating to NRI Schemes and commentaries of experts on development in the areas of finance through Internet. vi) Issuing Travelers cheques and credit cards Banks have been rendering great service by issuing travelers cheques, which enable a person to travel without forethought of theft or loss of money.Now, some banks have started credit card system under which a credit card holder is allowed to avail credit from the listed outlets without any additional cost or effort. Thus, credit card holder need not carry or grasp cash all the time. Now, in ternational credit cards are link hands with Indian Banks. vii) Issuing of face cheques Certain banks issue gift cheques of various denominations, e. g. Some Indian banks issue gift cheques f the denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge. viii) Dealing in Foreign Exchange Major branches of commercial banks also transact business of foreign exchange.Commercial banks are the main authorized dealers of foreign exchange in India. ix) Merchant banking Services Commercial banks also render merchant banking services to the customers. They help in availing loans from non-banking financial institutions. x) Help in Transportation of Goods sorry businessmen or industrialists after consigning goods to their retailers send the Railway Receipt (Consignment Note) to the bank. angle of Public heavens Banks o State Bank of Bikaner & Jaipur o State Bank of Hyderabad o State Bank of Indore o State Bank of Mysore o State Bank of Saurastra State Bank of T ravancore Other Nationalised banks are Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank sodality Bank of India United Bank of India Vijaya Bank List of Private welkin Bank Bank of Punjab Bank of Rajasthan Catholic Syrian Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank South Indian Bank United westward Bank UTI Bank List of Foreign Banks in India ABN-AMRO Bank Abu Dhabi Commercial Bank Bank of Ceylon BNP Paribas Bank Citi Bank China Trust Commercial Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank Scotia Bank Taib Bank Upcoming Foreign B anks In India pic pic By 2009 few more names is going to be added in the list of foreign banks in India.This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the worlds best private bank by Euro Money magazine, Switzerlands UBS. The following are the list of foreign banks going to set up business in India Royal Bank of Scotland Switzerlands UBS US-based GE cap Credit Suisse Group Industrial and Commercial Bank of China Merrill Lynch is having a joint gage in Indian investment banking space DSP Merrill Lynch. Goldman Sachs holds stakes in Kotak Mahindra arms.GE Capital is also having a wide presence in consumer finance through GE Capital India. Indias GDP is seen growing at a plenteous pace of around 7% over the contiguous few years, throwing up opportunities for the banking sector to profit from. The credit of banks has risen by over 25% in 2004-05 and the growth mome ntum is expected to continue over the future(a) four to five years. Participation in the growth curve of the Indian economy in the next four years will provide foreign banks a launch pad for greater business involution when they get more freedom after April 2009. Objectives of the StudyThis charter has been conducted with a anatomy of important objectives in mind. The following provides us with the chief objectives that have essay to achieve through the interpret. The extent to which these objectives have been met could judged from the conclusions and suggestions, which appear in the afterward of this study. The Chief Objectives of this study are 1. To find the bank sector that is generally availed by the customer. 2. To study the factors the factors influencing the choice of a bank for 3. availing services. 4. To find and liken the satisfaction train of customers in public sector 5. s well as in private sectors bank. 6. To study the problem go about by customer. 7. To ge t suggestions for improvement or change in the services of public and private sector banks. 8. To study what do pack expect in the new era of banking. RESEARCH METHODOLOGY Research is an art of scientific investigation. In other word research is a scientific and overbearing search for pertinent information on a specific topic. The logic behind taking research methodology into consideration is that one can have friendship about the method and procedure adopted for feat of objectives of the project.With the adoption of this others can evaluate the results also. Its main aim is to keep the researchers on the right track. The methodology adopted for studying the objectives was sceneing the saving account holders of District Jalandhar. So keeping in view the nature of requirements of the study to collect all the relevant information regarding the comparison of saving account of Centurion Bank of Punjab with other banks, direct personal interview method with merged questionnaire wa s adopted for the collection of primary data. Secondary data has been collected through the various magazines and newspapers and by surfing on Internet.And the guide in the organization was consulted at many times. SAMPLE DESIGN-A stress design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample i. e. , the size of the sample. Sample design is determined before data are collected. Here we select the population as sample in our sample design. The selected respondents should be as representatives of the total population.POPULATION- The persons holding saving account related to business class of District Jalandhar were taken into consideration. selective information COLLECTION Data was collected by using main two methods i. e primary data and secondary data. PRIMARY DATA Primary dat a is the data which is used or collected for first time and it is not used by anyone in the past. There are number of sources of primary data from which the information can be collected. We choose the following resources for our research. QUESTIONNAIRE-This method of data collection is quite popular, grouchy in case of big enquiries.Here in our research we set 15 fair questions and beseech the respondents to answer these questions with correct information. RESPONDENTS-answerers helps in creation of more accurate intellect about our research. We personally meet the respondents inside and outside the banks. SECONDARY DATA Secondary data is the data which is available in fructifymade form and which is already used by masses for some purposes. There may be various sources of secondary data such as-newspapers, magazines, journals, books, reports, documents and other published information.BANKS yearly REPORTS-Banks issues there annual reports to get the mountain informed with the p rofitability and growth of the bank. These annual reports helps us a lot to get the modish data and other related information for our research. It tells us about the increase or decrease in profits and other facilities. JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS - We also take into consideration the journals and publications issued by the bank at different times. we comes to know about the Branches, ATM, locations and other useful information.MANUALS AND BROACHERS OF DIFFERENT BANKS-We take the help of bank staff and other people who gives us deep information and data which may not be available at anywhere. They gives us there full co-operation. INTERNET-We also take into consideration the internet facility with which we collect lot of latest information. SAMPLE PLAN ? SAMPLE SIZE belongings in mind all the constraints the size of the sample of the study was selected as 80. ? SAMPLING UNIT- Centurion Bank of Punjab Branch in Jalandhar city. Due to nature of study, we also visit ed various different banks ICICI, HDFC, SBI, PUNJAB NATIONAL BANK etc. f Jalandhar District. ? SAMPLING TECHNIQUE- Stratified convenient sampling. All the saving account holders were taken into consideration. Research was conducted on clear assumptions that the respondents would give frank and fair answers in a pragmatic way and without any bias. ? SAMPLING exposition- In order to understand the nature and qualitys of various respondents in this study, the information was collected and analyzed according to their socio economic background which included the characteristic of their respondents like education, age marital status and monthly income.This description shows that respondents included in this panorama belong to different backgrounds and this turn increase the stretch of the study. PERSONAL DETAIL AGE Particulars %age of Respondent 20-30 years 20% 30-40 years 50% 40-50 years 20% 50-60 years 10% pic psychoanalysis & meter reading From the higher up study w e find that nobody is below 20 age and 20% respondents are between 20-30 age group, 50% respondents are between 30-40 age group, 20% respondents is between 40-50 age group and 10% respondents are between 50-60 age group. SEX Particulars No of Respondent %age Male 70 70% Female 30 30% substance nose candy 100% digest From the above result we come to know that out of 100, 62 respondents are male and 38 are womanish which is 62% and 38% are respectively. commentary From the above data we stop that most of our respondents are male. MARITAL STATUS Particulars No of Respondent %age Married 33 33% Unmarried 67 67% amount 100 100% pic Analysis From the above study we find that out of 100%, 33% respondents are married and 67% respondents are unmarried. Interpretation Most of the respondents of our survey are Unmarried. Q4 HIGHEST EDUCATIONAL QUALIFICATION- Particulars No of Respondent % age matriculation 4 4% Senior Secondary 14 14% Graduate 46 46% Post graduate 36 36% centre 100 100% pic Analysis This analysis shows that out of 100 respondent, 46% respondents are graduate & professional, 36% respondents are post graduate, 14% respondents are senior secondary and 2% respondents are of Matric category. All the respondents of our survey are qualified. Interpretation From the above data we finish that most of our respondents are Graduates & professional degree holders.OCCUPATION Particulars No of Respondent %age of respondents Businessman 32 32% Government Employee 28 28% educatee 24 24% Others 16 16% Analysis From the above analysis it is clear that 32% respondents are doing their own business, 28% are employees and 16% respondents belong to other category And 24% of our respondents are students. Most of the respondents of our survey are Businessmen. Interpretation From the Above data we end that most of our survey respondents are businessmen. DATA COLLECTION Data was collected using two main methods COLLECTION OF DATA LIMITATIONS O F THE STUDY Due to constraints of time and resources, the study is likely to suffer from certain limitations. Some of these are mentioned here under so that the findings of the study may be understood in a proper perspective. The limitations of the study are Some of the respondents of the survey were unwilling to share information. ? The research was carried out in a short period of 6 weeks . Therefore the sample size and other parameters were selected accordingly so as to finish the work within the given time frame. ? The information given by the respondents might be biased because some of them might not be interested to give correct information. ? The officials of the bank supported me a lot, but did not have sufficient time to make the points more clear. Analysis of Data collected 1. The respondents were asked about which banking sectors services do their avail. put off1 banking sectors services which the respondents avail. Banking sector figure of speech of respondents Public 32 Private 38 Both 30 graphical record 1 Banking Sectors services which the respondents avails INTERTRETATION-It was rear that most of the respondents were availing services of private sectors banks while those of the public sector banks were less as compare to public sector 2. The respondents were Asked about the type of account they have in the public sector as well as Private sector banks accede 2. 1 Number of type of account held in Public sectors banks image of Accounts Name of Account Savings Current Demat Fixed deposits payment Total no of respondents 50 15 6 15 14 pic graph 2. 1 - Number of type of accounts held in Public sector banks Analysis 50% people own Saving Account, 15% own Current account, 6% demat,15% fixed deposits account and 14% salary Account Interpretation It was found that in case of public sector banks, maximum number of account holders owns Saving Account. After Saving account most pick out account is salary account prefer by people and the next priority goes to fixed deposits Accounts. 3. The basic purpose of this question was to know the most favorite(a) bank. Table 3. Number of respondents preferring different banks Names of Banks Number of respondents ICICI Bank 24 HDFC Bank 22 State Bank Group 20 Punjab National Bank 28 Punjab And Sind Bank 6 Analysis From above graph, it is seen that 28% stake of the respondents follows to Punjab National bank followed byICICI bank. It is the bank which provide 12-hour banking. also the ATM machine is more as compared to the other private sector banks. Interpretation From the above graph, it is seen that Punjab national is the most preferred bank as compared to other Public and Private sector Banks. The reason for preference of public sector bank is the minimum amount of deposit for saving account. 4. The aim to ask this question was to know he reasons for their preference in different banks - Table 4- Reason for account in different banks Reasons No of respondents Fr iendly Behaviour of the Staff 16 reliableness/trust 14 straightaway and fast services 55 Location 15 Graph 4-Reasons for account in different banks Inpretation By analyzing this graph, we can conclude that most of the people is influenced by the quick and speedy services provided by the bank and location is given less preference than others. 5. The respondents were asked about the facilities they were availing in public as well as private sector banks - Table 5. Number of people availing different facilities at public sector banks Facilities Availed No of respondents ATM/debit card 60 Demat 5 Internet/Mobile/Phone Banking 15 Insurance 20 picGraph 5. 1 Number of people availing different facilities at public sector banks Interpretation From the above graph, it was found that was availed by most of the people at public sector banks was that of ATM/Debit cards which hold 90% of respondents. It is clearly observed by the graph that Insurance are neck to neck holding 2 0% of respondent each. 6. The purpose of this question is to know the satisfaction aim they were having with their banks general performance- Public sector banks Table 6. 1 Satisfaction level of the customers regarding the facilities availed from the public sector banks Level of Satisfaction No. f respondents %age Excellent 12 24% Good 21 42% very Good 27 54% Graph 6. 1 Satisfaction level of Customers regarding the facilities availed from the public sector banks. Analysis It was found that in case of public sectors banks, 18% of the respondents were highly fit ranked excellent from the products and services availed by them. 44% were just satisfied given very good and 38% have moderate view. Interpretation People have mixed type of view regarding public sector banks. 7.The respondents were asked that if they have given option, would they like to transmutation from the present banks- Table 7 Number of customers ready to shift from present bank. pic Graph 7- Number of custo mers ready to shift from their present bank or not. Interpretation From this above Graph, we can conclude that the number of respondents ready to shift from their present bank is 28% while 70% customers seems to be satisfied from their bank and hence willing to shift from their present bank to other. 8. The aim to ask this question was to know whether the respondents faces any problem regarding the services provided them by their preferred bank - Table 8 Problem faced by customers. Types of problem No of respondents Time consuming 10 Introduction 8 Reference 15 Too many formalities 6 No facility of photograph instantly 4 No problem 6 pic Interpretation It was found that most of the respondents are facing problem of reference. Respondents also find that the time and too much formalities also cause problem in banks. FINDINGS OF THE STUDY More number of people have account with private banks. ? Majority of the respondents whether in public sectors or in private sector banks have savings account with banks. ? Number of problem faced by the people is more in public sector banks. ? People want a change in the deportment of the staff of the public sector banks. ? People are more satisfied form the private sector banks due to their better services provided by them in terms of speedy motions, fully computerized facilities, more working hours (in case of ICICI bank, the number of working hour are 12), good investment consultative services, efficient and co-operative staff, better approach to Customer Relationship Management. In private sector banks proper promotional activities should be taken up so as to make the population aware of the services provided by the banks even in boorish areas. ? The facility that was availed by most of the people at public sector banks was that of ATM/Debit cards. The least availed facility was that of Demat account and foreign transfer of funds. ? The facility that was availed by most of the people at private sector banks was that of Internet/Phone banking by ATM/Debit card. ? Majority of respondents do not want to shift from their present bank. ? From the above study it is clear that private banks are providing better services than nationalized banks. 5% respondents favored that private banks are providing better services than nationalized banks while 5% respondents are not agree with it. ? From the above study it is clear that legal age of the respondents say that the average balance requirement for operating their saving account is between 5000-10000. 20% said it is between 10000-20000 and remaining 5% said it is between 20000-50000 in private sector banks which as compared to Public sector bank is very high. ? 40% respondents said that the bank employees never pay any attention to them and 10% respondents said that their problems are not solve by bank executives. The remaining 50% respondents give a authoritative reaction in the favour of bank. 0% respondents favoured that their problems are solved by bank executives and 20% respondents said they are received with smile by bank executives. So there is a mix response. ? Majority of the respondents said that the average time taken for transactions is between 25 to 50 minutes in their bank. 30% respondents said the average time taken for transaction is between 20-25 minutes, 20% said it is between 10 to 25 min. and remaining 10% said that the average time taken for transaction by their bank is 5 to 10 minutes. ? From the above study is clear that the banks do not organize any customer meets. All the 100% respondents said that their bank does not organize any customers meets to resolve their problems.Customer satisfaction is the demand of time, so the banks should organize customer meets to resolve the problems of their customers. ? From the above study it is clear that majority of the respondents are ready to pay nominal charges for better services provided by private banks while 40% respondents are not ready to pay any no minal charges. ? The above study depicts that 60% respondent said that their bank updates them time to time about the latest facilities and remaining 40% said that their bank doesnt update them. pic SUGGESTIONS Based on the study conducted, There are some of the suggestions given by the customers of how the modern banking should be.These are the comment given by them about the improvement of the banking sector in India. ? Banks should obey the RBI norms and provide facilitiesas per the norms, which are not being followed by the banks. While the customer must be given prompt services and the bank officer should not have any fear on mind to provide the facilities as per RBI norms to the units going sick. ? Banks should increase the rate of saving account ? Banks should provide loan at the lower interest rate and education loans should be given with ease without much corroboration. All the banks must provide loans against shares. ? Fair dealing with the customers. More piece from the employee of the bank.The staff Should be co-operative, friendly and must be capable of understanding the problems of customers ? Internet banking facility must be made available in all the banks. ? Prompt dealing with permanent customers and speedy transaction without harassing the customers ? Each section of every bank should be computerized even in rural areas also. ? Real time gross settlement can play a very important role. ? More ATM coverage should be provided for the appliance of the customers. ? No limit on cash withdrawls on ATM cards. ? The bank should bring out new schemes at time-to-time so that more people can be attracted. Even some gifts and prizes may be offered to the customers for their retention. 24 hours banking should be bring forth so as to facilitate the customers who may not have a free time in the daytime. It will help in facing the competition more effectively. ? The charges for saving account opening are high, so they should also be reduced. ? Customers generally complain that full knowledge is not granted to them. Thus the bank should properly fall apart the features of the product and services to the customers. Moreover door to door services can also be introduced by bank. ? The need of the customer should properly be understood so that customer feels satisfied. The relationship value should be maintained. ? The branch should promote cooperation and coordination among employees which help them in efficient working. Maintenance of proper power structure should be done. A good hierarchy set up can ensure better results with in the bank. Banking sector is improving by leaps but still it needs to be improved. Proper and efficient relationship staffs having knowledge for one stop banking, customer friendly atmosphere, and better rate of interest are need of the hour. the concept of privatization has overall improved the services in all the banks. Home banking will be order of the day. Recommendations For Public Sector Banks Bank st aff should be customer friendly and highly motivated to serve the normal customer. As far as possible, banks should reduce its documentation process while providing loans. Computerization should be done in banks at all level and the operators should de properly trained. Token system should be bring on so as to minimize the waiting lines in the banks. Proper air in the banks can develop a healthy working culture. Quick services should be provided. For Private sector Banks 24 hours banking should be induced so as to facilitate the customers who may not have free time in the day time. It will help in facing the competition more effectively. More ATM coverage should be provided for the convenience of the customers. Customer care services should be provided by banks. CONCLUSIONThe customers now days are not only exposed of what type of service is being provided by banks in India but in the world as a whole. They expect much more than what is actually being provided. So the new coming banking sector has to provide and cater to all the needs of the customers otherwise it is difficult to survive in the competition coming up. They not only expect the safety of money but also best ways to invest that money which need needs to be fulfilled. Banks need to have a better outlook towards to actually what customers are requiring. Entries of the private sector banks have made the competition tougher. If a bank is not procedure properly it is being closed. So it is difficult to face these types of conditions.Here a simple philosophy can work that customers are God and we need to follow this to survive and serve better. The banking sector is poised for explosive growth. In this, scenario, it is despotic that banks adopt technology at an aggressive Pace, if they wish to remain competitive. Mani Mamallan makes a case for banks to outsource their technology infrastructure requirement, thus enabling early adoption and increase efficiencies. In the prevailing scenario, a number of banks have adopt a new deployment strategy of infrastructure outsourcing, to lower the cost of service channels. As a result, other banks too will need to align their reinvented business models. The required changes at both the business and technology levels are enormous.In a highly competitive banking markets, early adopters are profiting from increased efficiencies. BIBLIOGRAPHY BOOKS ? Kothari C. R. (1990) Research Methodology Method and Techniques Wishva Prakashan, New Delhi. ? Bodie. Z, Kane. A & Mracus. J Essentials of Investments. ? Prof. E Gordon & Dr. K. Natrajan Banking Theory Law and Practice. ? Indian financial System & Commercial Banking by Khan Masood Ahmed ? Banking in India by P. N. Varshney WEBSITES ? www. centurionbop. co. in ? www. pnbindia. com ? www. statebankofindia. com ? www. icicibank. com ? www. rbi. org. in ? www. iba. org. in ? www. knowledgestom. com ? www. igniter. com BROACHERS & PAMPHLETS Broachers and pamphlets of Saving A/c QUESTIONNAIRE Comparative Study on public and private sector banks Dear customer, We are the students of C. T. I. E. M. T. Shahpur, Jalandhar. We are undergoing the project entitled named Comparative Study on public and Private sector banks So by filling this questionnaire enthral helps us in completing our project. Q1. Which Sector bank do you have your account? Public (Private( Both ( Q2. In which bank do you have your Account? 1. 2. 3. 4. Q3. Which type of account do you have in the bank? Saving ( Current ( Demat ( F. D ( Salary (Q4 In Case you have yours Account in more than one a Bank which one is your most preferred bank (Give only one bank) Q5. Rank the selection criteria for opening account with bank? scar Image (Services ( Location ( Charges ( Q6. Kindly rank the reasons for yours preference in this particular bank? Quick and fast services (Location ( Friendly Behavior ( Reliability ( Q7. Which facilities are you availing at your bank? Atm/Debit card ( Credit card ( Insurance ( Mobile B anking ( Q8. How often do you use debit card to shop? Occasionally(Never( Q9. How much Satisfied are you with your banks overall performance ? Excellent(Very Good(Good ( Q10. Any Specific services you expect from your bank ? Q11. If an option is given to you, would you like to shift from the present Bank? Yes ( No ( Q12. Do you face any problem regarding the services provided by your preferred bank? If Yes Q13. Would you like to give any suggestions for the better functioning of banks in these sectors? Public Sector Private sector 16. Any other suggestions please specify ? ____________________________________________________________ ____________________________________________________________ Thanks for your valuable time given to us .We command you that the information provided by you will remain confidential. Thanks for your co-operation. PERSONAL DETAILS. NAME- AGE- GENDER-.. EDUCATION- ADDRESS-. . telephony NO. -