Introduction The world of banking has assumed a new dimension at dawn of the 21st century with the advent

of tech banking, thereby lending the industry a stamp of universality. In general, banking may be classified as retail and corporate banking. Retail banking, which is designed to meet the requirement of individual customers and encourage their savings, includes payment of utility bills, consumer loans, credit cards, checking account and the like. Corporate banking, on the other hand, caters to the need of corporate customers like bills discounting, opening letters of credit, managing cash, etc. Metamorphic changes took place in the Indian financial system during the eighties and nineties consequent upon deregulation and liberalization of economic policies of the government. India began shaping up its economy and earmarked ambitious plan for economic growth. Consequently, a sea change in money and capital markets took place. Application of marketing concept in the banking sector was introduced to enhance the customer satisfaction the policy of privatization of banking services aims at encouraging the competition in banking sector and introduction of financial services. Consequently, services such as Demat, Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to the needs of public. An important agenda for every banker today is greater operational efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious: customer delight. The introduction to the marketing concept to banking sectors can be traced back to American Banking Association Conference of 1958. Banks marketing can be defined as the part of management activity, which seems to direct the flow of banking services profitability to the customers. The marketing concept basically requires that there should be thorough understanding of customer need and to learn about market it operates in. Further the market is segmented so as to understand the requirement of the customer at a profit to the banks.

DEFINITION OF BANK

The Oxford dictionary defines the Bank as, An establishment for the custody of money, which it pays out, on a customers order.

According to Whitehead, A Bank is defined as an institution which collects surplus funds from the public, safeguards them, and makes them a v a i l a b l e t o t h e t r u e owner when required and also lends sums be their true owners to those who are in need of funds and can provide security. Banking Company in India has been defined in the Banking Companies act1949, O n e w h i c h t r a n s a c t s t h e b u s i n e s s o f b a n k i n g w h i c h m e a n s t h e accepting, for the purpose of lending or investment of the deposits of moneyfrom the public, repayable on demand, or otherwise and withdraw able becheque, draft, order or otherwise.T h e b a n k i n g s y s t e m i s an integral subsystem of the financial system. Itr e p r e s e n t s a n i m p o r t a n t c h a n n e l o f c o l l e c t i n g s m a l l s a v i n g s f o r m t h e households and lending it to the corporate sector.T h e I n d i a n b a n k i n g s y s t e m h a s R e s e r v e B a n k o f I n d i a ( R B I ) a s t h e a p e x body for all matters relating to the banking system. It is the central Bank of India. It is also known as the Banker To All Other Banks.

EVOLUTION OF INDIAN BANKING

Ancient banking system of India constituted of indigenous bankers. Theyhave been carrying on their age-old banking operations in different parts of the country under different names. The modern age of banking constitutesthe fundamental basis of economic gr owth. The term Bank is being useds i n c e l o n g t i m e b u t t h e r e i s n o c l e a r c o n c e p t i o n r e g a r d i n g i t s b e g i n n i n g . According to the viewpoint, in good old days. Italian money leaders wereknown as Banchi because they kept a special type of table to transact their business.

IMPORTANCE OF BANKS

Today banks have become a part and parcel of Kotak Bank's life. There wasa time when dwellers of the city alone could enjoy their services. Now bankso f f e r access to even a common man and their activities extend to areas h i t h e r to untouched.Banks cater to the needs of agricu l t u r a l i s t s , industrialists, traders and to all the ot her sections of the society. In moderna g e , t h e b a n k i n g c o n s t i t u t e s t h e f u n d a m e n t a l b a s i s o f e c o n o m i c g r o w t h . Thus, they accelerate the economic growth of a country and steer the wheelsof the economy towards its goals of self reliance in all fields. It naturallyarouses Kotak Bank's interest in knowing more about the Bank and thevarious men and the activities connected with it.

Indian Banking System

Banking in India has its origin as early as the Vedic period. It was believed that transition from money lending to banking must haveoccurred even before Manu, The great Hindu Jurist, who hasdevoted a section of his work to deposit advance and laid downrules relating to rates of interest. During the Mogul period, theindigeneousBankers played a very important role in lending moneyfinancing foreign trade and commerce. During the days of EastIndia Company, it was turn over the agency houses to carry on the business. The General Bank of India was the first to join sector in the year 1786.The others that followed were the Bank of Hindustan and the Bengal bank. The bank of Hindustan is reportedto have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks: 1.Bank of Bengal (1809). 2. Bank of Bombay (1840). 3. Bank of Madras (1843. These three banks are also known as Presidency Banks were independent units and functioned well. These three banks were amalgamated in 1920 and Imperial Bank of India was established on 27th January 1921, which started as private shareholders banks, mostly Europeans shareholders, with the passing of time Imperial bank was taken over by the newly constituted State bank of India act in 1955.In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central 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 private banks were also taken over by the government.

Reserve Bank of India

The Banking system is an integral sub-system of the financialsystem. It represents an important channel of collecting smallsavings 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. Itis the Central 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 control Custodian to foreign exchange and gold reserves Development activities Research and development in the banking sector.

Objectives of the Study This study has been conducted with a variety of important objectives in mind. The following provides us with the chief objectives that have tried to achieve through the study. The extent to which these objectives have been met could judged from the conclusions and suggestions, which appear in the later of this study.

The Chief Objectives of this study are: To find the bank sector that is largely availed by the customer. To study the factors the factors influencing the choice of a bank for Availing services. To find and compare the satisfaction level of customers in public sector . As well as in private sectors bank. To study the problem faced by customer. To get suggestions for improvement or change in the services of public and private sector banks. To study what do people expect in the new era of banking.

CHALLENGES FACED BY INDIAN BANKING SECTOR

Developing countries like India, still has a huge number of people who do not have access to banking services due to scattered and fragmented locations. But if we talk about those people who are availing banking services, their expectations are raising as the level of services are increasing due to the emergence of Information Technology and competition. Since, foreign banks are playing in Indian market, the number of services offered has increased and banks have laid emphasis on meeting the customer expectations. Now, the existing situation has created various challenges and opportunity for Indian Commercial Banks. In order to encounter the general scenario of banking industry we need to understand the challenges and opportunities lying with banking industry of India.

Rural Market

Banking in India is generally fairly mature in terms of supply, product range and reach, even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. Consequently, we have seen some examples of inorganic growth strategy adopted by some nationalized and private sector banks to face upcoming challenges in banking industry of India. For example recently, ICICI Bank Ltd. merged the Bank of Rajasthan Ltd. in order to increase its reach in rural market and market share significantly. State Bank of India (SBI), the largest public sector bank in India has also adopted the same strategy to retain its position. It is in the process of acquiring its associates. Recently, SBI has merged State Bank of Indore in 2010.

Human Resources Management

In the recent past the human resource Policies in banks were mainly guided by the comcept of permanent employment and its necessary concomitants of creating career paths, terminal benfits, etc. for the employees. In todays fast-changing world of employee mobility both horizontally and vertically and value systems, the public sector banks need to hire the right talent at market related compensation and to shed surplus manpower/staff. Thus many banks are going for URS schemes to reduce the burden of excessive staff. Schemes like VRS are going to change the nature of workforce with many senior and experienced persons opting for it. The key elements that shall provide a competitive edge to banking sector will not be physical assets but knowledge assets and information. Therefore, banks must understand how to retain knowledge based employees and prevent them to migrating to some other organisation. Banks must believe in people, customer orientation, and continuous improvement of excellence. Therefore it becomes necessary for banks to encourage all employees to take risks and work towards continuous improvements and breakthroughs. Successful banks overcoming the challenges will be those that harness technology in a customer friendly yet cost effective way. This requires enormous internal and external management and the crux of the solution lies in blending human resources with information technology.

Global Banking

It is practically and fundamentally impossible for any nation to exclude itself from world economy. Therefore, for sustainable development, one has to adopt integration process in the form of Liberalization and Globalization as India spread the red carpet for foreign firms in 1991. The impact of globalization becomes challenges for the domestic enterprises as they are bound to compete with global players. If we look at the Indian Banking Industry, then we find that there are 36 foreign banks operating in India, which becomes a major challenge for Nationalized and private sector banks. These foreign banks are large in size, technically advanced and having presence in global market, which gives more and better options and services to Indian traders.

Financial Inclusion Financial inclusion has become a necessity in todays business environment. Whatever is produced by business houses, that has to be under the check from various perspectives like environmental concerns, corporate governance, social and ethical issues. Apart from it to bridge the gap between rich and poor, the poor people of the country should be given proper attention to improve their economic condition. Dev (2006) stated that financial inclusion is significant from the point of view of living conditions of poor people, farmers, rural non-farm enterprises and other vulnerable groups. Financial inclusion, in terms of access to credit from formal institutions to various social groups. Apart from formal banking institutions, which should look at inclusion both as a business opportunity and social responsibility, the author conclude that role of the self-help group movement and microfinance institutions is important to improve financial inclusion. The study study suggested that this requires new regulatory procedures and de-politicisation of the financial system

Employees Retention

The banking industry has transformed rapidly in the last ten years, shifting from transactional and customer service-oriented to an increasingly aggressive environment, where competition for revenue is on top priority. Long-time banking employees are becoming disenchanted with the industry and are often resistant to perform up to new expectations. The diminishing employee morale results in decreased revenue. Due to the intrinsically close ties between staff and clients, losing those employees completely can mean the loss of valuable customer relationships. The retail banking industry is concerned about employee retention from all levels: from tellers to executives to customer service representatives because competition is always moving in to hire them away. The competition to retain key employees is intense. Top-level executives and HR departments spend large amounts of time, effort, and money trying to figure out how to keep their people from leaving.

Case Studyies Sekaran, U. (1989) studied a sample of 267 bank employees, this study traced the paths to the job satisfaction of employees at the workplace through the quality of life factors of job involvement and sense of competence. Results indicated that personal, job, and organizational climate factors influenced the ego investment or job involvement of people in their jobs, which in turn influenced the intra-psychic reward of sense of competence that they experienced, which then directly influenced employees' job satisfaction. Mitchell, Holtom, Lee and Graske (2001) asserted in their study that people often leave for reasons unrelated to their jobs. In many cases, unexpected events or shocks are the cause. Employees also often stay because of attachments and their sense of fit, both on the job and in their community. Saxena and Monika (2010) studied a case of 5 companies out of 1000 organizations and 8752 respondents surveyed across 800 cities in India by Business Today. The survey was on nine basic parameters like career and personal

growth, company prestige, training, financial compensation and benefits and merit based performance evaluation. It was concluded that the biggest challenge for organizations is that when new employees appointed, it is difficult to merge them in organizational culture. Each organization has its own unique culture and most often, when brought together, these cultures clash. When there is no retention, employees point to issues such as identity, communication problems, human resources problems, ego clashes, and intergroup conflicts, which all fall under the category of cultural differences.

Customer Retention & Case Studyies.

Levesque and McDougall (1996) investigated the major determinants of customer satisfaction and future intentions in the retail bank sector. They identified the determinants which include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used. It was found, in particular, that service problems and the banks service recovery ability have a major impact on customer satisfaction and intentions to switch. Clark (1997) studied the impact of customer-employee relationships on customer retention rates in a major UK retail bank. He revealed that employee and customer perceptions of service quality are related to customer retention rates and that employee and customer perceptions of service quality are related to each other. Clark (2002) examined the relationship between employees perceptions of organizational climate and customer retention in a specific service setting, viz. a major UK retail bank. Employees perceptions of the practices and procedures in relation to customer care at their branch were investigated using a case study approach. The findings revealed that there is a relationship between employees perceptions of organizational climate and customer retention at a micro organizational level. He suggested that organizational climate can be subdivided into five climate themes and that, within each climate theme, there are several dimensions that are critical to customer retention. Hansemark and Albinsson (2004) explored how the employees of a company experience the concepts of customer satisfaction and retention. They used phenomenological method, allowing the informants own interpretations to be

discovered. Satisfaction was discussed from three perspectives: definition of the concept, how to recognise when a customer is satisfied, and how to enhance satisfaction. The informants experience pertaining to these three categories varied, and a total of seven ways to define, recognise or enhance satisfaction were discovered. These were: service, feeling, chemistry, relationship and confidence, dialogue, complaints and retention. All except the first two of these categories of experience were found to enhance retention, implying that the informants have found that strategies for enhancing both satisfaction and retention are similar. The strongest connection between retention and satisfaction strategies turned out to be in terms of relationship and confidence.

CLASSIFICATION OF BANKS On the basis of Ownership PUBLIC SECTOR BANKS Public sector banks are those banks that are owned by the government. Thegovernment owns these banks. In India 20 banks were nationalized in 1969and 1980 respectively. Social welfare is there main objective. PRIVATE SECTOR BANKS These banks are those banks that are owned and run by private sector. Anindividual has control over these banks in proportion to the shares of the banks held by him. CO-OPERATIVE BANKS These are those banks that are jointly run by a group of individuals. Eachindividual has an equal share in these banks. Its shareholders manage theaffairs of the bank. According to the Law SCHEDULED BANK Schedule banks are the banks, which are included in the second schedule of the banking regulation act 1965. According to this schedule bank: 1. Must have paid-up capital and reserve of not less than Rs500, 000.

2 . M u s t a l s o s a t is f y t h e R B I t h a t i t s a f f a i r s a r e n o t c o n d u c t e d i n a manner Determinate to the interest of its depositors.Schedule banks are subdivided as:-a) State co-operative banks b) Commercial banks.

NON-SCHEDULED BANKS Non -schedule banks are the banks, which are not included in the secondschedule of the banking regulation act 1965. It means they do not satisfy theconditions lay down by that schedule. These are the banks having paid upcapital, less than Rs.5Lakhs. They are further classified as follows:-A. Central Co-operative banks and Primary Credit Societies.B. Commercial banks. According to Function COMMERCIAL BANKS These are the banks that do banking business to earn profit. These banksmake loans for short to business and in the process create money. Creditcreation is the main function of these banks. FOREIGN BANKS These are those banks that are incorporated by foreign company. They haveset up their branches in India. These banks have their head offices in foreign c o u n t r i e s . T h e i r p r i n c i p l e f u n c t i o n i s t o ma k e c r e d i t a r r a n g eme n t o r thee x p o r t a n d t h e i m p o r t o f t h e c o u n t r y a n d t h e s e b a n k s d e a l s i n f o r e i g n exchange. INDUSTRIAL BANKS Industrial banks are those banks that offer long term and medium term loant o t h e i n d u s t r i e s a n d a l s o wo r k f o r t h e i r d e v e l o p me n t . Th e s e b a n k s h e l p industries in sale of their shares, debentures and bonds. They give loan to theindustries 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 c o u n t r y a n d p u t t h e m t o t h e p r o d u c t i v e u s e . I n I n d i a d e p a r t me n t o f p o s t office functions a savings banks. CENTRAL BANK Central Bank is the apex bank of the banking system of the country. It issues currency notes and acts a banker's bank. Economic stability is the principle function of this bank. In short, it regulates and controls the banking systemof the country. RBI is the Central Bank of India.

PRIMARY FUNCTIONS :

1) A c c e p t i n g o f D e p o s i t s : A b a n k a c c e p t s d e p o s i t s f r o m t h e p u b l i c . People can deposit their cash balances in either of the following accounts to their convenience :a. Fixed or Time Deposit Account : Cash is deposited in thisaccount for a fixed period. The de p o s i t o r g e t s r e c e i p t s f o r t h e a m o u n t 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 themoccasionally. Banks provide a certain rate of interest on the minimum balancekept by the depositor during the month. c. C u r r e n t A c c o u n t : T h i s t y p e o f a c c o u n t i s k e p t b y t h e b u s i n e s s ma n w h o a r e r e q u i r e d t o wi t h d r a w mo n e y e v e r y n e w a n d t h e n . Banks do not pay any interest on this account. Any sum or any number of withdrawals can be presented by such an account holder. 2) A d v a n c i n g o f L o a n s : T h e b a n k a d v a n c e s m o n e y i n a n y o n e o f t h e following 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 t e m p o r a r y a c c o m m o d a t i o n s i n c e t h e e x t r a a m o u n t withdrawn is payable within a short period. b. Money 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 adjustment according to their liquidity requirements. c. Loans : Loans are granted by the banks on securities which can beeasily disposed off in the market. When the bank has satisfied itself regarding the soundness of the party, a loan is advanced. d. Cash Credit : The Debtor is allowed to withdraw a certain amounton a given security. The debtor withdraws the amount within thisl i m i t , i n t e r e s t i s c h a r g e d b y t h e b a n k o n t h e a m o u n t a c t u a l l y withdrawn. e. Discounting Bill of Exchange : I t i s a n o t h e r me t h o d o f ma k i n g advances by the banks. Under this method, bank give advance to t h e i r c l i e n t s o n t h e b a s i s o f t h e i r b i l l s o f e x c h a n g e b e f o r e t h e maturity of such bills. f. Investment in Government Securities : Purchasing of government securities by the banks tantamount to advancing loans by them to t h e Go v e r n me n t . B a n k s p r e f e r t o b u y g o v e r n me n t s e c u r i t i e s a s t h e s e a r e c o n s i d e r e d t o b e t h e s a f e s t i n v e s t me n t . F o r e x a mp l e : Indira Vikas Patra : It enables the banks to meet requirement of statutory liquidity ratio (SLR) 3) Credit Creation :- One of the main functions of banks these days is to create credit. Banks create credit by giving more loans t h a n t h e i r c a s h reserves. Banks are able to create credit because the demand deposits i.e. aclaim against the bank is accepted by the public in settlement of their debts.I n t h i s p r o c e s s t h e b a n k c r e a t e s mo n e y. F o r t h i s r e a s o n P r o f . S a ye r s h a s called bank the manufactures of money. 4) Cheque system of Payment of Funds :- A cheque, a negotiable instrument, which in fact is a bill of exchange, drawn upon a banker, is the most popular 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 SECONDARY FUNCTIONS :B e s i d e s t h e a b o v e p r i ma r y f u n c t i on s , b a n k s a l s o p e r f o r m ma y s e c o n d a r y functions such as agency functions, general utility and social functions. A) Agency Functions Banks act as agents to their customers in different ways :i) Collection and Payment of Credit and Other Instruments: The Commercial banks collect and pay cheques, bills of exchange, promissory notes, rent, interest etc. On behalf of their customers and also make payments of i n c o m e t a x , f e e s , i n s u r a n c e p r e m i u m e t c . on behalf of the customers. Customers can leave standing instructions with the banker f o r v a r i o u s periodic payments ensuring the regular payments and avoiding the trouble of performing it themselves. ii) Purchase and Sale of Securities : The modern commercial banks alsou n d e r t a k e t h e p u r c h a s e a n d s a l e o f v a r i o u s s e c u r i t i e s l i k e s h a r e s , s t o c k s , bonds units and debentures etc. On behalf of the customers, banks do notgive any advice regarding the suitability or otherwise of a security but simply perform the functions of a broker. iii) Trustee and Executor : Banks also acts as trustees and executors of the property of their customers on their advice. Sometimes banks also undertakeincome 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, mail transfers etc.

v) Representation and Correspondence : Sometimes commercial banks acts a s r e p r e s e n t a t i v e s o r c o r r e s p o n d e n t s o f t h e c l i e n t s e s p e c i a l l y i n h a n d l i n g various applications. For instance, passports and travel tickets, booking of vehicles, plots etc. v i ) B i l l i o n Tr a d in g : I n ma n y c o u n t r i e s , t h e c o m me r c i a l b a n k s t r a d e i s b i l l i o n s l i k e g o l d a n d s i l v e r . I n O c t 1 9 9 7 , 8 b a n k s i n c l u d i n g S B I , I OB , 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 foreignexchange, promoting international trade. This function is mainly discharged by foreign Exchange Banks. viii) Letter of References : B a n k s a l s o g i v e i n f o r ma t i o n a b o u t e c o n o mi c position of their customers to domestic and foreign traders and vice versa.

B) GENERAL UTILITY SERVICES In addition to agency services, banks render many more utility services to the public. These services are :i ) A g e n c y F u n c t i o n :

B a n k s p r o v i d e l o c k e r f a c i l i t i e s t o t h e i r customers. People can keep their valuables or important documents in theselockers. Their annual rent is very nominal.

ii)Acting as a referee : It desired by the customers, the bank can be a referee i.e. who could be referred by the third parties for seeking information r e g a r d i n g t h e f i n a n c i a l p o s i t i o n o f t h e c u s t o me r s . Th e b a n k w i l l a c t s a s 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 :

B a n k e r s i n a w a y b y i s s u i n g l e t t e r s o f credit certify the credit worthiness of the customers. Letters of credit are very popular in foreign trade. iv)Acting as Underwriters : B a n k s a l s o u n d e r w r i t e t h e s e c u r i t i e s i s s u e d by the G o v e r n me n t a n d C o r p o r a t e b o d i e s f o r a c o mmi s s i o n . Th e n a me o f bank as an underwriter encouraged investors to have faith in the security. v ) A c t i n g a s i n f o r m a t i o n b a n k s :

C o m m e r c i a l b a n k s a l s o a c t s a s information bureau as they collect the financial, economic and statistical d a t a r e l a t i n g t o i n d u s t r y, t r a d e a n d c o m me r c e . H DF C B a n k i s providing i n f o r m a t i o n r e l a t i n g t o N R I S c h e m e s a n d c o m m e n t a r i e s o f e x p e r t s o n development in the areas of finance through Internet. vi)Issuing Travelers cards : cheques and credit

B a n k s h a v e b e e n rendering great service by issuing travelers cheques, which enable a person t o t r a v e l w i t h o u t f e a r o f t h e f t o r l o s s o f m o n e y . N o w , s o m e b a n k s h a v e started credit card system under which a credit card holder is allowed to avail c r e d i t f r o m t h e l i s t e d o u t l e t s wi t h o u t a n y a d d i t i o n a l c o s t o r e f f o r t . Th u s , c r e d i t c a r d holder need not carry or handle cash all the time. N o w , international credit cards are joining hands with Indian Banks.

vii)Issuing of gift cheques: Certain banks issue gift cheques of various denominations, e.g. Some Indian banks issue g i f t c h e q u e s f t h e denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free of charge. viii)Dealing in Foreign Exchange: M a j o r b r a n c h e s o f c o m m e r c i a l b a n k s also transact business of foreign exchange. Commercial banks are the main authorized dealers of foreign exchange in India. i x ) M e r c h a n t b a n k i n g S e r v i c e s :

C o m m e r c i a l b a n k s a l s o r e n d e r merchant banking services to the customers. They help in availing loans from non-banking financial institutions. x)Help in Transportation of Goods: B i g b u s i n e s s m e n o r i n d u s t r i a l i s t s after consigning goods to their retailers send the R a i l w a y R e c e i p t (Consignment Note) to the bank.

List of Public Sector Banks

State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra

 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 Union Bank of India United Bank of India Vijaya Bank

List of Private Sector 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 Western 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 Banks In India

By 2013 few more names is going to be added in the list of foreign banks in India. This is as an after math 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 world's best private bank by Euro Money magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India Royal Bank of Scotland Switzerland's UBS US-based GE Capital

Recommendations

For Public Sector Banks: Bank staff 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 induced so as to minimize the waiting lines in the banks. Proper ambience in the banks can develop a healthyworking 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 theconvenience of the customers. Customer care services should be provided by banks.

Conclusion

As per the above discussion, we can say that the biggest challenge for banking industry is to serve the mass market of India. Companies have shifted their focus from product to customer. The better we understand our customers, the more successful we will be in meeting their needs. In order to mitigate above mentioned challenges Indian banks must cut their cost of their services. Another aspect to encounter the challenges is product differentiation. Apart from traditional banking services, Indian banks must adopt some product innovation so that they can compete in gamut of competition. Technology up gradation is an inevitable aspect to face challenges. The level of consumer awareness is significantly higher as compared to previous years. Now-a-days they need internet banking, mobile banking and ATM services. Expansion of branch size in order to increase market share is another tool to combat competitors. Therefore, Indian nationalized and private sector banks must spread their wings towards global markets as some of them have already done it. Indian banks are trust worthy brands in Indian market; therefore, these banks must utilize their brand equity as it is an valuable asset for them. T h e c u s t o me r s n o w d a ys a r e n o t o n l y e x p o s e d o f w h a t t yp e o f s e r v i c e i s being provided by banks in India but in the world as a whole. They expect m u c h m o r e t h a n w h a t i s a c t u a l l y b e i n g p r o v i d e d . S o t h e n e w c o m i n g banking sector has to provide a n d c a t e r t o a l l t h e n e e d s o f t h e c u s t o me r s 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 t o wa r d s t o a c t u a l l y wh a t c u s t o me r s a r e r e q u i r i n g . En t r i e s o f t h e p r i v a t e sector banks have made the competition tougher. If a bank is not functioning 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.

BIBLIOGRAPHY

BOOKS: Bodie.Z, Kane.A & Mracus.J : Essentials of Investments. Prof. E Gordon & Dr. K. Natrajan Banking Theory Law and Practice. Shrieves, R. E. The relationship between risk and capital in commercial Banks. Journal of Banking & Finance, 16(2): 439457, 1992. Wolgast, M. M&As in the financial industry: A matter of concern for bank supervisors? Journal of Financial Regulation and Compliance, 9(3): 225-236, 2001. Financial Service Management.

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