PROJECT REPORT

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IHRD MODEL COLLEGE MEENANGADI

CHAPTER I

INTRODUCTION

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INTRODUCTION
Economic development of nations largely depends on
the
growth
of
infrastructure
facilities
such
as
telecommunication, banking, transport, etc. Banking sector
plays a
crucial role in the economic development as it
facilitates trade. Today our country developing very fastly.
banks in our country plays an important role in the
development of our nation .
A bank is a financial institution which
deal with money and credit. it accept deposits and lend
money to those who are in need of it it helps to transfer
money from one place to another. it is difficult to provide a
clear cut definition to banks because a modern bank performs
a number of modern functions like ATM,online banking,etc..
Out of 6.4 lakh villages in India, fully fledged service
availability of banking is available only in 34000 villages.
There are still more than 5 lakh villages remaining unbanked,
the reasons being infrastructure, distance, cost, viability etc
Though rural India constitutes 68% of countrys population,
only 9-12% of the total deposits and 8-10% of the advances
are constituted to rural India. Absence of banking services in
villages is the cause for their exploitation by unorganized
sector. In addition, shortage of technology and other facilities
are the reasons for banks backing out from reaching out to
rural population. Financial Exclusion not only widens the
Rich-poor divide but also lead to social exclusion. On an
average, the banking requirement per household amounts to
Rs. 2 lakhs. The wide gap existing between banks and the

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prospective rural customers is a serious issue and needs to

be tackled at the earliest. In this paper, an extensive
literature survey has been conducted to support the research
questions and the future course of actions that is taken based
on the work done. The researchers have taken keen interest
in trying to identify various factors that can actually lead to a
strong and penetrated banking system for the country as a
whole.

OBJECTIVES
To know the banking habit of people in rural area
To study the attitude of rural peoples while selecting
their bank
To know the awareness of rural people about modern
services of banks
To identify the preference of rural people while selecting
bank
To know if the banks helps to increase saving habit of
rural people
To know the level of satisfaction of rural people in
banking

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STATEMENT OF THE
PROBLEM
Banking services is provided to the entire
community large . many services with the latest technology is
provided by the bank. To know whether these services reach

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the rural people is gaining importance. An attempt is made

for the same
The problem can be stated as A study on
the banking habit of people in rural area

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve
the research problem. It may be understood as a science of
studying the research is done through scientifically through
this we can study various steps that are generally adopted by
a researcher in studying his research problem along with the
logical behind them. the study is designed as a descriptive
one.

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A broad definition of research is given by Martyn

Shuttleworth - "In the broadest sense of the word, the
definition of research includes any gathering of data,
information and facts for the advancement of knowledge."

SOURCES OF DATA
Primary and secondary data used for this study.

PRIMARY DATA
Primary data are those data which are collected
for the first time Primary data are raw materials to which
statistical methods are applied for the purpose of analysis
and interpretation. The primary data were collected through
direct discussion with the samples selected for the study

SECONDARY DATA
Secondary data means the data that already
available or collected. The data were collected from books
internet etc..

LIMITATIONS OF THE STUDY

Limited time was available for the study
Sample size is very small
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Lack of co operation from respondents

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CHAPTER II
REVIEW OF
LITERATURE

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Dr.Raman c.p Rajasthan conducted a study on the

banking habit of people in rural area. This study was
undertaken to find out the level of awareness and to identify
the problems prevailing in the banking services among the
customers in rural area. A through study of the profile of the
customers and the banking environment of thiruvallur district
of tamilnadu was studied various factors motivating the use
of banking services were analysed. The study revealed that
many of the customers uses ATM like facilities but there are
many customers who have lack of awareness in terms of
agency services

Mr.Nair(2006)discuss the future

challenges of technology in banking the author also point out
how it posses a bright future in rural banking but it is
neglected as it is traditionally considered unviable in the rural
segment . A successful bank has to be nimble and agile
enough to respond to the new market paradigm and
ineffectively controlling risks. Innovation will be the key
extending the banking services to the rural area.

Krishana et al. (2003), in their

research paper, Performance of Regional Rural Banks in
Karnataka An Application of Principal Components and
Discriminant Function Analysis tried to identify the important
discriminating characteristics of the two identified groups of
Regional Rural Banks in the state of Karnataka. They used the
discriminate function approach and sought to obtain linear
discriminate coefficient, such that the squared difference
between the mean Z-score for the one group and the mean Z9

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score for the other group was as large as possible in relation

to the variation of Z-scores within the groups. They concluded
that the number of employees per branch had maximum
discriminating power to the extent of 55%, followed by
amount of borrowings (18%), credit deposit ratio (14%) and
income to expenditure ratio (13%).

V. Bala Mohandas and P. Hrushi Kesava Rao (1986)

in a study on 'Bank's finance in Rural Development' suggest
that consumption loans should be combined with production
loans. This would wean such borrowers away from
moneylender. In an evaluation study entitled 'Rural
Development' S. Giriappa (1993) finds that the small and
marginal farmers, fishermen, artisans, labourers of scheduled
castes and scheduled tribe households and also femaleheaded households face the problem of low income
generation and low asset formation due to non-availability of
adequate finance from the banks

Burguess and Pande, (2003)explains that

lack of access to finance is often seen as a key reason why
poor people still remain poor. In this paper it uses data on the
Indian rural branch expansion program to provide
importantevidence on this case. In between 1977 and
1990 the Indian Central Bank compulsorily announced that
commercial banks can open a branch in a location with one or
more bank branches only if it opens four in places with no
bank branches. It is shown that in between 1977 and

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1990 this rule caused banks to open relatively more rural

branches in Indian state with lower initial financial
development. Reverse is true outside this period and we
exploit this fact to identify the impact of opening a rural
bank on output and poverty . The estimates suggest that the
Indian rural branch
expansion
program
significantly
lowered rural poverty
and increased non-agricultural
output. Burguess and Pande, (2003)explains that lack of
access to finance is often seen as a key reason why poor
people still remain poor. In this paper it uses data on the
Indian rural branch expansion program to provide
importantevidence on this case. In between 1977 and
1990 the Indian Central Bank compulsorily announced that
commercial banks can open a branch in a location with one or
more bank branches only if it opens four in places with no
bank branches. It is shown that in between 1977 and
1990 this rule caused banks to open relatively more rural
branches in Indian state with lower initial financial
development. Reverse is true outside this period and we
exploit this fact to identify the impact of opening a rural
bank on output and poverty . The estimates suggest that the
Indian rural branch
expansion
program
significantly
lowered rural poverty
and increased non-agricultural
output.

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BANKING
A bank is a financial institution that creates credit by lending
money to a borrower, thereby creating a corresponding
deposit on the bank's balance sheet. Lending activities can be
performed either directly or indirectly through capital
markets. Due to their importance in the financial system and
influence on national economies, banks are highly regulated
in most countries. Most nations have institutionalized a

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system known as fractional reserve banking under which

banks hold liquid assets equal to only a portion of their
current liabilities. In addition to other regulations intended to
ensure liquidity, banks are generally subject to minimum
capital requirements based on an international set of capital
standards, known as the Basel Accords

BANK MEANING
A bank is a financial institution which deals with money and
credit. it accept deposits and lends money to those who are in
need of it.itb helps to transfer money from one place to
another

BANK DEFINITIONS
According to Herbert L. Hart, the banker is a person or a
company carrying on the business of receiving money and
collecting drafts for customers subject to the obligation of
honouring the cheques ,drawn up on him from time to time
by customers up to the amount available on their customers
account
According to Jhon Paget defines, a bank is an institution which
takes Deposit, current account , Issues and pay cheques, and
collects cheques of the customers. In this definition the
lending function of the bank is not specifically included.
In the words of Crowther, "A bank collects money from those
who have it to spare or who are saving it out of their inccmes,
and lends this money to those who require it."

HISTORY OF BANK

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Banking begins with the first prototype

banks of merchants of the ancient world, which made grain
loans to farmers and traders who carried goods between
cities. This began around 2000 BC in Assyria and Babylonia.
Later, in ancient Greece and during the Roman Empire,
lenders based in temples made loans and added two
important innovations: they accepted deposits and changed
money. Archaeology from this period in ancient China and
India also shows evidence of money lending activity.
The origins of modern banking can be traced to medieval and
early Renaissance Italy, to the rich cities in the north like
Florence, Lucca, Siena, Venice and Genoa. The Bardi and
Peruzzi families dominated banking in 14th-century Florence,
establishing branches in many other parts of Europe. One of
the most famous Italian banks was the Medici Bank, set up by
Giovanni di Bicci de' Medici in 1397. The earliest known state
deposit bank, Banco di San Giorgio (Bank of St. George), was
founded in 1407 at Genoa, Italy
Modern banking practices, including fractional reserve
banking and the issue of banknotes, emerged in the 17th and
18th centuries. Merchants started to store their gold with the
goldsmiths of London, who possessed private vaults, and
charged a fee for that service. In exchange for each deposit
of precious metal, the goldsmiths issued receipts certifying
the quantity and purity of the metal they held as a bailee;
these receipts could not be assigned, only the original
depositor could collect the stored goods.
Gradually the goldsmiths began to lend the money out on
behalf of the depositor, which led to the development of
modern banking practices; promissory notes (which evolved

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into banknotes) were issued for money deposited as a loan to

the goldsmith. The goldsmith paid interest on these deposits.
Since the promissory notes were payable on demand, and the
advances (loans) to the goldsmith's customers were
repayable over a longer time period, this was an early form of
fractional reserve banking. The promissory notes developed
into an assignable instrument which could circulate as a safe
and convenient form of money backed by the goldsmith's
promise to pay .allowing goldsmiths to advance loans with
little risk of default. Thus, the goldsmiths of London became
the forerunners of banking by creating new money based on
credit.
The Bank of England was the first to begin the permanent
issue of banknotes, in 1695.The Royal Bank of Scotland
established the first overdraft facility in 1728. By the
beginning of the 19th century a bankers' clearing house was
established in London to allow multiple banks to clear
transactions. The Rothschilds pioneered international finance
on a large scale, financing the purchase of the Suez canal for
the British government.

HISTORY OF INDIAN BANKS

Banking in India in the modern sense originated in
the last decades of the 18th century. Among the first banks
were the Bank of Hindustan, which was established in 1770
and liquidated in 1829-32; and the General Bank of India,
established in 1786 but failed in 1791.The largest bank, and
the oldest still in existence, is the State Bank of India (S.B.I).
It originated as the Bank of Calcutta in June 1806. In 1809, it
was renamed as the Bank of Bengal. This was one of the
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three banks funded by a presidency government, the other

two were the Bank of Bombay and the Bank of Madras. The
three banks were merged in 1921 to form the Imperial Bank
of India, which upon India's independence, became the State
Bank of India in 1955. For many years the presidency banks
had acted as quasi-central banks, as did their successors,
until the Reserve Bank of India was established in 1935,
under the Reserve Bank of India Act, 1934 In 1960, the State
Banks of India was given control of eight state-associated
banks under the State Bank of India (Subsidiary Banks) Act,
1959. These are now called its associate banks.[5] In 1969
the Indian government nationalised 14 major private banks.
In 1980, 6 more private banks were nationalised.[7] These
nationalised banks are the majority of lenders in the Indian
economy. They dominate the banking sector because of their
large size and widespread networks.The Indian banking
sector is broadly classified into scheduled banks and nonscheduled banks. The scheduled banks are those which are
included under the 2nd Schedule of the Reserve Bank of India
Act, 1934. The scheduled banks are further classified into:
nationalised banks; State Bank of India and its associates;
Regional Rural Banks (RRBs); foreign banks; and other Indian
private sector banks.[6] The term commercial banks refers to
both scheduled and non-scheduled commercial banks which
are regulated under the Banking Regulation Act, 1949.[9]

Generally banking in India is fairly mature in terms of supply,

product range and reach-even though reach in rural India and
to the poor still remains a challenge. The government has
developed initiatives to address this through the State Bank
of India expanding its branch network and through the
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National Bank for Agriculture and Rural Development with

facilities like microfinance.

TYPES OF BANKS
Commercial banks: the term used for a normal bank to
distinguish it from an investment bank. After the Great
Depression, the U.S. Congress required that banks only
engage in banking activities, whereas investment banks
were limited to capital market activities. Since the two no
longer have to be under separate ownership, some use the
term "commercial bank" to refer to a bank or a division of a
bank that mostly deals with deposits and loans from
corporations or large businesses.
Community banks: locally operated financial institutions
that empower employees to make local decisions to serve
their customers and the partners.

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Community development banks: regulated banks that

provide financial services and credit to under-served
markets or populations.
Land development banks: The special banks providing
long-term loans are called land development banks (LDB).
The history of LDB is quite old. The first LDB was started at
Jhang in Punjab in 1920. The main objective of the LDBs
are to promote the development of land, agriculture and
increase the agricultural production. The LDBs provide
long-term finance to members directly through their
branches.
Credit
unions
or co-operative
banks:
not-forprofit cooperatives owned by the depositors and often
offering rates more favorable than for-profit banks.
Typically, membership is restricted to employees of a
particular company, residents of a defined area, members
of a certain union or religious organizations, and their
immediate families.
Postal savings banks: savings banks associated with
national postal systems.
Private banks: banks that manage the assets of high-networth individuals. Historically a minimum of USD 1 million
was required to open an account, however, over the last
years many private banks have lowered their entry hurdles
to USD 250,000 for private investors.
Offshore banks: banks located in jurisdictions with low
taxation and regulation. Many offshore banks are
essentially private banks.

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Savings bank: in Europe, savings banks took their roots in

the 19th or sometimes even in the 18th century. Their
original objective was to provide easily accessible savings
products to all strata of the population. In some countries,
savings banks were created on public initiative; in others,
socially committed individuals created foundations to put
in place the necessary infrastructure. Nowadays, European
savings banks have kept their focus on retail banking:
payments, savings products, credits and insurances for
individuals or small and medium-sized enterprises. Apart
from this retail focus, they also differ from commercial
banks by their broadly decentralized distribution network,
providing local and regional outreachand by their socially
responsible approach to business and society.
Building societies and Landesbanks: institutions that
conduct retail banking.
Ethical banks: banks that prioritize the transparency of all
operations and make only what they consider to be socially
responsible investments.
A direct or internet-only bank is a banking operation
without any physical bank branches, conceived and
implemented wholly with networked computers.

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DIFFERENT TYPES OF BANK

ACCOUNTS

Savings Bank Account

These deposits accounts are one of the most popular

deposits for individual accounts. These accounts not only
provide cheque facility but also have lot of flexibility for
deposits and withdrawal of funds from the account. Most of
the banks have rules for the maximum number of
withdrawals in a period and the maximum amount of
withdrawal, but hardly any bank enforces these. However,
banks have every right to enforce such restrictions if it is felt
that the account is being misused as a current account. Till
24/10/2011, the interest on Saving Bank Accounts was
regulared by RBI and it was fixed at 4.00% on daily balance
basis.
However, wef
25th October, 2011, RBI has
deregulated Saving Fund account interest rates and now
banks are free to decide the same within certain conditions
imposed by RBI. Under directions of RBI, now banks are also
required to open no frill accounts (this term is used for
accounts which do not have any minimum balance
requirements). Although Public Sector Banks still pay only 4%
rate of interest, some private banks like Kotak Bank and Yes
Bank pay between 6% and 7% on such deposits. From the FY
2012-13, interest earned upto Rs 10,000 in a financial year
on Saving Bank accounts is exempted from tax.

Current Account

Current Accounts are basically meant for businessmen and

are never used for the purpose of investment or savings.
These deposits are the most liquid deposits and there are no

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limits for number of transactions or the amount of

transactions in a day. Most of the current account are opened
in the names of firm / company accounts.
Cheque book
facility is provided and the account holder can deposit all
types of the cheques and drafts in their name or endorsed in
their favour by third parties. No interest is paid by banks on
these accounts. On the other hand, banks charges certain
service charges, on such accounts.

Recurring Deposit Accounts

These are popularly known as RD accounts and are special
kind of Term Deposits and are suitable for people who do not
have lump sum amount of savings, but are ready to save a
small amount every month.
Normally, such deposits earn
interest on the amount already deposited (through monthly
installments) at the same rates as are applicable for Fixed
Deposits / Term Deposits.
These are best if you wish to
create a fund for your child's education or marriage of your
daughter or buy a car without loans or save for the
future.Under these type of deposits, the person has to usually
deposit a fixed amount of money every month (usually a
minimum of Rs,100/- p.m.). Any default in payment within
the month attracts a small penalty.
However, some Banks
besides offering a fixed installment RD, have also introduced
a flexible / variable RD. Under these flexible RDs the person
is allowed to deposit even higher amount of installments, with
an upper limit fixed for the same e.g. 10 times of the
minimum amount agreed upon.These accounts can be funded
by giving Standing Instructions by which bank withdraws a
fixed amount on a fixed date of the month from the saving

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bank of the customer (as per his mandate), and the same is
credited to RD account.
Fixed Deposit Accounts

All Banks in India (including SBI, PNB, BoB, BoI, Canara Bank,
ICICI Bank, Yes Bank etc.) offer fixed deposits schemes with a
wide range of tenures for periods from 7 days to 10 years.
These are also popularly known as FD accounts. However, in
some other countries these are known as "Term Deposits" or
even called "Bond". The term "fixed" in Fixed Deposits (FD)
denotes the period of maturity or tenor. Therefore, the
depositors are supposed to continue such Fixed Deposits for
the length of time for which the depositor decides to keep
the money with the bank. However, in case of need, the
depositor can ask for closing (or breaking) the fixed deposit
prematurely by paying paying a penalty (usually of 1%, but
some banks either charge less or no penalty). (Some banks
introduced variable interest fixed deposits.
The rate of
interest on such deposits keeps on varying with the prevalent
market rates i.e. it will go up if market interest rates goes and
it will come down if the market rates fall. However, such type
of fixed deposits have not been popular till date).
The rate of interest for Fixed Deposits differs from bank to
bank (unlike earlier when the same were regulated by RBI
and all banks used to have the same interest rate structure.
The present trends indicate that private sector and foreign
banks offer higher rate of interest. The earlier trend that
private sector and foreign banks offer higher rate of interest
is no more valid these days. However, now a days small

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banks are forced to offer higher rate of interest to attract

more deposits. Usually a bank FD is paid in lump sum on the
date of maturity. However, most of the banks have also
facility to pay/ credit interest in saving account at the end of
every quarter. If one desires to get interest paid every
month, then
the interest paid will
be at a marginal
discounted rate. In the changed computerized environment,
now the Interest payable on Fixed Deposit can also be easily
transferred on due dates to Savings Bank or Current Account
of the customer.

BENEFITS OF HAVING A BANK

ACCOUNT
1. Bank accounts offer convenience
For example, if you have a checking account, you can easily
pay by check or through online bill pay. It's also cheaper than
buying a money order (and you'll have proof of bank

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statements that you paid your bills). If you get an Automated

Teller Machine (ATM) or debit card for the account, you can
withdraw money easily or make payments at stores. A debit
card is usually accepted for purchases anywhere credit cards
are accepted.
2. Bank accounts are safe
Your money will be protected from theft and fires. Plus, your
money will be federally insured so if your bank or credit union
closes, you will get your money back. The maximum amount
of money that can be insured is $100,000.
3. It's an easy way to save money
Many banks offer an interest rate when you put your money
in a savings account. The interest will help your money grow
over time. Be sure to shop around and check what fees are
involved - you don't want to wind up paying more in fees than
you are gaining in interest.
If you have a checking and saving account with the same
institution, you can have your money transferred periodically
from checking to savings, putting the money aside to help
grow your savings.
4. Bank accounts are cheaper
Banks and credit unions generally offer their account holders
free or low-cost services:
Cashing checks: Using a check cashing outlet really
adds up. You can deposit and cash your checks at the
institution where you have a bank account for free.

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Paying bills: Without a bank account, you probably rely

on check cashing outlets, telephone bill pay or money
ordersall of which have attached feesto pay your
bills. With a checking account, you can write checks for
free or pay online at a low cost.
Transferring/wiring money: If you use a money transfer
company to wire money to another persons account,
you will pay a fee, usually a percentage of the amount of
the transfer. Depending on the amount you want to
transfer, this fee can be expensive. If you wire from your
bank account to another persons account, your bank
will usually charge a flat rate that is generally lower than
the money transfer company.
Accessing cash: When you need cash but dont have a
bank account, you may decide to use a credit card to get
a cash advance from an ATM. The credit card company
will charge you a transaction fee and interest. If you
have a bank account and an ATM or debit card, you can
access your money from your own banks ATM for
free. Although you can access your money from any
ATM, you will likely pay a transaction fee if you use an
ATM other than your bank.
5. Bank accounts can help you access credit
Banks and credit unions can help you access credit to acquire
a home, a car, student or personal loan, because banks tend
to favor existing customers, particularly those who manage
their money well. Plus, going to small loan lenders that lend
you cash quickly can be quite expensive because they charge
lending fees and high interest rates.

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While bank accounts are preferred over check cashers and

piggy banks, banks will also have fees that you should be
aware of. For example, banks will charge you if you use your
debit card on an ATM that is not theirs. Also, depending on
the type of account you have, you must maintain a minimum
balance of a certain amount to avoid being charged. It's
always best to shop around for the best product that fits your
needs.

SERVICES PROVIDED BY BANK

1. Advancing of Loans
Banks are profit oriented business organizations. So they
have to advance loan to public and generate interest from
them as profit. After keeping certain cash reserves, banks
provide short-term, medium-term and long-term loans to
needy borrowers.
2. Overdraft
Sometimes, the bank provides overdraft facilities to its
customers though which they are allowed to withdraw more
than their deposits. Interest is charged from the customers on
the overdrawn amount.
3. Discounting of Bills of Exchange
This is another popular type of lending by the modern banks.
Through this method, a holder of a bill of exchange can get it
discounted by the bank, in a bill of exchange, the debtor
accepts the bill drawn upon him by the creditor (i.e., holder of
the bill) and agrees to pay the amount mentioned on
maturity. After making some marginal deductions (in the form

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of commission), the bank pays the value of the bill to the

holder.
When the bill of exchange matures, the bank gets its
payment from the party, which had accepted the bill.
4. Cheque Payment
Banks provide cheque pads to the account holders. Account
holders can draw cheque upon bank to pay money. Banks pay
for cheques of customers after formal verification and official
procedures..
5. Collection and Payment Of Credit Instruments
In modern business, different types of credit instruments such
as bill of exchange, promissory notes, cheques etc. are used.
Banks deal with such instruments. Modern banks collect and
pay different types of credit instruments as the
representative of the customers.
6. Foreign Currency Exchange
Banks deal with foreign currencies. As the requirement of
customers, banks exchange foreign currencies with local
currencies, which is essential to settle down the dues in the
international trade.

7. Consultancy
Modern commercial banks are large organizations. They can
expand their function to consultancy business. In this
function, banks hire financial, legal and market experts who

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provide advices to customers in regarding investment,

industry, trade, income, tax etc.
8. Bank Guarantee
Customers are provided the facility of bank guarantee by
modern commercial banks. When customers have to deposit
certain fund in governmental offices or courts for specific
purpose, bank can present itself as the guarantee for the
customer, instead of depositing fund by customers.
9. Remittance of Funds
Banks help their customers in transferring funds from one
place to another through cheques, drafts, etc.
10. Credit cards
Credit card are cards that allow their holders to make
purchases of goods and services in exchange for the credit
cards provider immediately paying for the goods or service,
and the card holder promising to pay back the amount of the
purchase to the card provider over a period of time, and with
interest.
11. ATMs Services
ATMs replace human bank tellers in performing basic banking
functions such as deposits, withdrawals, account inquires. Key
advantages of ATMs include:
24 hour availability
Elimination of labor cost
Convenience of location

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

12. Debit cards

Debit cards are used to electronically withdraw funds directly
from the cardholders accounts. Most debit cards require a
Personal Identification Number (PIN) to be used to verify the
transaction.

13. Home banking

Home banking is the process of completing financial
transaction from ones own home as opposed to utilizing a
branch of a bank. It includes actions such as making account
inquiries, transferring money, paying bills, applying for loans,
directing deposits.
14. Online banking
Online banking is a service offered by banks that allows
account holders to access their account data via the internet.
Online banking is also known as "Internet banking" or "Web
banking."
Online banking through traditional banks enable customers
to perform all routine transactions, such as account transfers,
balance inquiries, bill payments, and stop-payment requests,
and some even offer online loan and credit card applications.
Account information can be accessed anytime, day or night,
and can be done from anywhere.
15. Mobile Banking

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

Mobile banking (also known as M-Banking) is a term used for

performing balance checks, account transactions, payments,
credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital
Assistant (PDA),
16. Accepting Deposit
Accepting deposit from savers or account holders is the
primary function of bank. Banks accept deposit from those
who can save money, but cannot utilize in profitable sectors.
People prefer to deposit their savings in a bank because by
doing so, they earn interest.
17. Priority banking
Priority banking can include a number of various services, but
some of the popular ones include free checking, online bill
pay, financial consultation and information.
18. Private banking
Personalized financial and banking services that are
traditionally offered to a bank's rich, high net worth
individuals (HNWIs). For wealth management purposes,
HNWIs have accrued far more wealth than the average
person, and therefore have the means to access a larger
variety of conventional and alternative investments. Private
Banks aim to match such individuals with the most
appropriate options.
19.CDM
CDM stands for cash depositary machine it help the users to
deposit money at any time

30

PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

CHAPTER
ANALYSIS AND
INTERPRETATION

31

III

PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

ANALYSIS AND INTERPRETATION

Analysis is the process of breaking a complex
topic or substance into smaller to gain a letter understanding
of it. Analysis can be defined as a systematic examine and
evaluation of data or information, by breaking its component.
The word from the ancient Greek analysis is a break up"
from and up throughout analysis a lessening the technique
has been applied in the study of Mathematics and logic since
before Aristotle though analysis as format concept is a
relatively recent development. Analysis is a separating of an
material or abstract entity into its constitute element.
Interpretation is an action of explaining the
meaning of something. The assignment of meaning to various
concepts, symbols or objects under considered it is an
assignment of meaning to the symbols of formal language.
The general study of interpretations of formal language is
called formal semantics. Interpretation have anything to say
about logical connectives like or and not. Though we may
take these symbols to stand for certain things or concepts

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

BANK ACCOUNT STATUS

Bank account
status
Yes
No
total

No. of
respondents
30
0
30

33

percentage
100

0
100

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2015-2016

IHRD MODEL COLLEGE MEENANGADI

BANK ACCOUNT
35
30
25
20
15
10
5
0
yes

no

The above table shoes that all

respondents have a bank account

SELECTION OF BANK
BANKS
SBI
SBT

NO OF
RESPONDENTS
18
10

34

PERCENTAGE
60
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IHRD MODEL COLLEGE MEENANGADI

Co operative
Others
Total

2
0
30

7
0
100

SELECTION OF BANK
70
60
50
40
30
20
10
0
SBI

SBT

co operative

others

From the above table and chart it can be

inferred that 60% of the respondents have account in SBI,
33% have account in SBT, 7% respondents have account in
co operative banks no one have accounts in other banks

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

TYPE OF BANK ACCOUNT

USING
Type of account

No of
respondents
Savings bank A/c 29
Current a/c
0
Fixed a/c
1
Other accounts
0
total
30

percentage
96.6
0
3.4
0
100

TYPES OF BANK ACCOUNT USING

30
25
20
15
10
5
0
savings

current

fixed

others

The above table and chart reveals that

majority of the respondents around 97% have savings bank
account. Only 3% of respondents have fixed account and no
one using current and other accounts

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

PRIMARY OBJECT TO VISIT BANK

Objects

To deposit
To take loan
To get DD
To transfer funds
To use locker
Others
total

No.of
Respondents
25
3
0
2
0
0
30

90
80
70
60
50
40
30
20
10
0

37

Percentage
83
10
0
7
0
0
100

PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

It is clear from the above table in 30 respondents 83%

respondents primary objective is to deposit money. Only 10%
respondents says that they go to bank for taking loan and
only 7% respondents go to bank for transfer funds

FREQUENCY OF VISITING BANK

Frequency of visit
frequently
weekly
monthly
yearly
Total

No of respondents
8
0
13
9
30

38

Percentage
27
0
43
30
100

PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

45
40
35
30
25

Series 1

20
15
10
5
0
frequently

weekly

monthly

yearly

From the above table and diagram it can be

understand that out of 30 respondents 27%of respondents
visit their bank frequently 43% of people visit their bank
weekly and the balance respondents visit their bank yearly

PREFERENCE OF SELECTING BANK

Preferences

No.of
respondents
Interest rate
11
Security
2
E-commerce facility 2
Behavior of bank
1
Goodwill
14
39
total
30

Percentage
37
7
7
3
46
100

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2015-2016

IHRD MODEL COLLEGE MEENANGADI

50
45
40
35
30
25
20
15
10
5
0

While selecting their bank majority

respondents around 46% select their bank with preference on
goodwill of the bank. 37% of respondents prefer the interest
rate of the bank and minority people prefer their bank on the
basis of behavior,security and e commerce facility of bank.

DEBIT OR CREDIT CARD

STATUS

Status

No.of

Percentage

40

PROJECT REPORT
2015-2016

Yes

No
total

IHRD MODEL COLLEGE MEENANGADI

respondents
29
1
30

97
3
100

Yes
No

From the above table and pie diagram it can

be inferred that out of 30 respondents 97% of
respondents have debit or credit card

41

PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

KNOWLEDGE OF OPERATING
PLASTIC CARDS
status

No.of
respondents
20
10
30

Yes
No
Total

percentage
67
33
100

80
70
60
50
40

Column1

30
20
10
0
Yes

No

The above table and chart shows that out of 30

respondents 67% of respondents know how to operate the

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

plastic cards and remaining 33% of respondents does not

know how to operate plastic cards

KNOWLEDGE OF PEOPLE ABOUT MODERN

facilities
ATM

CDM
E
commerce
online fund
transfer
E payment
mobile
banking

yes

no

29
18
16

percenta
ge
97
60
53

1
12
14

percenta
ge
3
40
47

18

60

12

40

19
13

63
43

11
17

37
57

FACILITIES OF BANK

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

100
90
80
70
60
50
Axis Title

40
30
20
10
0

Axis Title

From the above table it can be inferred that out of 30

respondents 97% of respondents aware about the ATM and
only 3% is not aware about ATM. in the case of CDM 60% of
respondents aware about it but 40% of respondents not
aware about CDM. In the case of e commerce 53% of
respondents have knowledge about e commerce and others
not heard about it. in the case of e payment 63% of
respondents aware about it and 37% is not aware about it
and in the case of mobile banking only 43% of people have
knowledge about it and others have no knowledge about this

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PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

BANKS INVOLVEMENT IN INCRESING

SAVING HABIT
opinion

No.of
respondents

percentage

Strongly agree
Agree

4
8

13
27

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IHRD MODEL COLLEGE MEENANGADI

Average
Disagree
Strongly disagree
total

13
5
0
30

43
17
0
100

Strongly agree; 13%

Disagree; 17%

Agree; 27%

Average; 43%

It is clear from the above chart and diagram out of 30

respondents 13% of respondents says they strongly agree
with the statement bank help to increase their saving habit.
27% of respondents agree with the statement. 43% of
respondents are neutral about this statement. 5% of
respondents disagree with the statement and nobody
strongly disagree about this statement

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

METHODS PREFER FOR SAVING

MONEY

choices
Banks
Share markets
Chits & govt
institutions
others
total

No of respondents
24
0
3

percentage
80
0
10

3
30

10
100

others; 10%
Chits & govt institutions ; 10%

Banks; 80%

The above table and chart shows that out

of 30 respondents 80% of respondents choose bank for
saving their money 10% use chits and government
institutions for saving money anther 10% use other choices
no one uses share market for saving money

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

METHOD PREFER FOR AVAILING

LOAN
Choices
Bank
Money lenders
Private firms
others
total

No of
respondents
17
8
5
0
30

percentage
57
27
16
0
100

60
50
40
30
20
10
0
Bank

Money lenders

Private firms

48

others

PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

For taking loan 57% of

respondents prefer banks 27% of respondents choose money
lenders and 16% of respondents choose private firm

IF EDUCATION IS A BARRIER
opinion
Yes
No
total

No of
respondents
13
17
30

49

Percentage
43
57
100

PROJECT REPORT
2015-2016

IHRD MODEL COLLEGE MEENANGADI

Yes ; 43%
No; 57%

The above table and graph shows that 43% of

respondents says that their educational qualification is a
barrier for their banking activity and 57% of respondents says
that this is not a problem

AWARENESS FROM BANK

opinion
yes

No.of
respondents
12

50

percentage
40

PROJECT REPORT
2015-2016

no
total

IHRD MODEL COLLEGE MEENANGADI

18
30

60
100

70
60
50
40
30
20
10
0
Category 1

no

The above table and chart reveals that 60%

of respondents says that they dont get any awareness from
the part of bank and 40% of respondents says they get
awareness from bank

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PROJECT REPORT
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IHRD MODEL COLLEGE MEENANGADI

SATISFACTION OF CUSTOMER

opinion
yes
no
Total

No. of
respondents
24
6
30

percentage
80
20
100

no; 20%

yes; 80%

The above table and chart shows that

80% of respondents are satisfied with their bank but
20% of respondents not satisfied with their bank

52