MAJOR RESEARCH PROJECT

ON
COMPARATIVE STUDY BETWEEN PRIVATE
SECTORS BANK AND PUBLIC SECTOR BANKS

In Partial Fulfilment of the requirements of the degree of MBA

Year 2018

Guided By: Submitted By:

Faulty guide: Dr. Vivek Sapru Jude Joseph
Enroll No.
A30501915006
Batch: MBA
2016-18
TABLE OF CONTENTS
 ABSTRACT
After passing of nationalization the Indian banking system has considerably developed with a
large network of branches and wide range of financial instruments. As banking industry is
growing today with a rapid speed and competition it has more than 11,75,150 employee and
has a 1,09,811 branches across India and 171 branches in abroad and have managed deposits
of Rs. 67504.54 billion and bank credit of Rs. 52604.59 billion. The net profit of banks
operating in India was Rs. 1027.51 billion against RS. 9148.60 billion Turn over during
2016-17.
Banking sector has a very important place in our Indian economy. The amount of the profit
indicates the efficiency of the organization the larger the profit higher the growth rate. The
profitability depends on the effective utilization of funds to procure maximum profit for
growth. . The present research paper is an effort to make a comparative study between the
Growth rate in Punjab National Bank and HDFC Bank. As a study of Growth analysis of both
the banks for a period of 10 years, i.e., from 2004 to 2014 is made. The main parameters of
growth in banks are Net profit growth, Net assets growth, ROA (Return on Assets) and NPA
 RATIONALE OF STUDY

 To find and compare the satisfaction level of customers in public sector as well as in
private sectors bank.

 To study the factors influencing the choice of a bank for availing services.

 To study the problem faced by customer.

 OBJECTIVES
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 judge from the conclusions and suggestions,
which appear in the later of this study.

The Chief Objectives of this study are:

1. To find the bank sector that is largely availed by the customer.

2. To study the factors influencing the choice of a bank for availing services.

3. To find and compare the satisfaction level of customers in public sector As well as in
private sectors bank.

4. To study the problem faced by customer.

5. To get suggestions for improvement or change in the services of public and private sector
banks.

6. To study what do people expect in the new era of banking

 INTRODUCTION

The world of banking has assumed a brand new measurement at sunrise of the 21st century
with the advent of tech banking, thereby lending the enterprise a stamp of universality. In
widespread, banking may additionally be classified as retail and corporate banking. Retail
banking, which is designed to fulfil the requirement of character clients and encourage their
savings, consists of price of utility bills, consumer loans, credit cards, bank account etc.
company banking, then again, caters to the need of corporate customers like payments
discounting, beginning letters of credit, handling cash, etc.

Metamorphic adjustments passed off in the Indian monetary system during the Nineteen
Eighties and 1990s consequent upon deregulation and liberalization of financial policies of the
authorities. India began shaping up its economic system and earmarked ambitious plan for
economic growth. Therefore, a sea alternate in money and capital markets happened. Software
of advertising and marketing concept in the banking sector become added to decorate the
purchaser satisfaction the coverage of privatization of banking services ambitions at
encouraging the opposition in banking area and introduction of financial services. Therefore,
services together with Demat, internet banking, Portfolio control, challenge capital, and many
others, got here into life to cater to the needs of public. A critical agenda for each banker
nowadays is more operational performance and client pride. The mew watchword for the bank
is pretty bold: customer pride.

The introduction to the advertising concept to banking sectors may be traced returned to
American Banking affiliation convention of 1958. Banks advertising may be described because
the part of management activity, which appears to direct the flow of banking offerings
profitability to the clients. The advertising and marketing idea basically requires that there must
be thorough understanding of patron want and to learn about market it operates in. in addition
the marketplace is segmented with the intention to recognize the requirement of the patron at
an income 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 customer’s
order.”

According to Whitehead,

“A Bank is defined as an institution which collects surplus funds from

t h e p u b l i c , s a f e g u a r d s t h e m , a n d m a k e s t h e m 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,

“One which transacts the business of banking which means the

accepting, for the purpose of lending or investment of the deposits of money from the public,
repayable on demand, or otherwise and withdraw able be cheque, draft, order or
otherwise.

“ T h e b a n k i n g s ys t e m i s a n i n t e g r a l s u b s ys t e m o f t h e f i n a n c i a l s ys t e m .
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 savings
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 ys 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

Historic banking device of India constituted of indigenous bankers. They have been carrying
on their age-antique banking operations in one-of-a-kind elements of the country under
different names. The current age of banking constitutes the essential basis of monetary increase.
The time period bank is being used since long time but there's no clean concept regarding its
beginning. Consistent with the point of view, in suitable old days. Italian money leaders were
known as

“Banchi”

Because they saved a special sort of desk to transact their commercial enterprise.

IMPORTANCE OF BANKS

Today banks have become a part and parcel of Kotak Bank's life. There was a time when
dwellers of the city alone could enjoy their services. Now banks offer access to even a common
man and their activities extend to areas hitherto 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 fundamental basis 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 fields”. It naturally arouses Kotak Bank's interest in knowing more about the
‘Bank’ and the various men and the activities connected with it
 Indian Banking System
Banking in India has its foundation as early because the Vedic length. It became believed that
transition from money lending to banking have to have occurred even before Manu, The super
Hindu Jurist, who has devoted a phase of his paintings to deposit enhance and laid down rules
regarding charges of hobby. For the duration of the magnate period, the indigenous Bankers
played a totally crucial function in lending money financing overseas alternate and trade. At
some stage in the days of East India organisation, it changed into flip over the enterprise houses
to carry on the business. “The general bank of India” turned into the first to join zone in the 12
months 1786.The others that followed had been the financial institution of Hindustan and the
Bengal bank. The financial institution of Hindustan is reported to have persisted until 1906
while the other 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
january1921, 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 in1955.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 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 “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.

 CLASSIFICATION OF BANKS
On the basis of Ownership

PUBLIC SECTOR BANKS

Public quarter banks are those banks which are owned via the authorities. The government
owns those banks. In India 20 banks had been nationalized in 1969and 1980 respectively.
Social welfare is there foremost objective.

PRIVATE SECTOR BANKS

Those banks are the ones banks which might be owned and run by non-public area. An
individual has manipulate over those banks in proportion to the shares of the banks held with
the aid of him.

CO-OPERATIVE BANKS
These are those banks that are jointly run by a group of individuals. Each individual has an
equal share in these banks. Its shareholders manage the affairs 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. Must also satisfy the RBI that its affairs are not conducted in a manner

Determinate to the interest of its depositors.

Schedule banks are sub-divided as:-

a) State co-operative banks
 b) Commercial banks

NON-SCHEDULED BANKS
Non -schedule banks are the banks, which are not included in the second schedule of the
banking regulation act 1965. It means they do not satisfy 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 Primary Credit Societies.

B. Commercial banks

According to Function

COMMERCIAL BANKS
These are the banks that do banking business to earn profit. Those banks make loans for short
to enterprise and inside the procedure create cash. Credit creation is the main feature of these
banks.

FOREIGN BANKS
These are those banks that are incorporated by foreign company. They have set up their
branches in India. These banks have their head offices in foreign countries. Their principle
function is to make credit arrangement or the export and the import of the country and these
banks deals in foreign exchange.

INDUSTRIAL BANKS
Industrial banks are those banks that offer long term and medium term loan to the industries
and also work for their development. These banks help industries in sale 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 productive use. In India department of post 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 system of the country. RBI is the Central Bank of India.

PRIVATIZATION OF INDIAN BANKING

For the public area banks, the technology of bumper profit is over. For plenty of the last decade
the procedure of collaborated financial liberalization had cleared up the financial institution’s
balance sheet enabling them to with stand expanded opposition, worldwide financing, turmoil
and even unprotected commercial gradual down. But the cycle of liberalization has run its
complete course. Now it is the time for the big structural bounce, clarification, mergers, and
privatization. Unless the banks undertake these fundamental adjustments, their income will
stay below stress.

There are two areas of competitions which banking industry is facing internationally and
nationally. Within the pre-liberalization generation, Indian banks could develop in a closed
economy but the banking zone opened up for non-public competition. Its miles possible that
personal banks could turn out to be dominant gamers even within India. it has been recorded a
speedy upward push of the brand new non-public zone banks and it has tracked the
transformation of the general public region banks as they grapple with the modifications of
monetary deregulation.

Use of ATM cards, net Banking, cell phone Banking, cell Banking are the new modern
channels of banking which can be being extensively used as they result in saving both time and
money that are vital things that everyone is short of and is walking to capture preserve of them.
Furthermore private sector banks are aligning its infrastructures, advertising and marketing
satisfactory and technology to construct deep dedication in building patron and retail banking.
The primary consciousness of those banks is on revolutionary variety of services or
merchandise.
 LITERATURE REVIEW

History of Banking in India – Introduction

in line with the Banking organizations Act of 1949, Banking is described as, accepting for the
cause of lending or funding of deposit cash from the general public, repayable on call for or in
any other case and withdraw able by using cheque draft, order or in any other case. It
additionally defines financial institution as an institution dealing in cash and credit. It
safeguards the financial savings of the public and gives loans and advances.

The main functions of the banking sector are as following:

 It provides liquidity for economic growth of a country

 It acts as the main pillar of the whole financial system

 It offers safety for the depositors who want to deposit their savings in the Bank

 It offers liquidity for the borrowers both on short and long-term basis based on their need

 It provides credit or loan to dealers, households, small as well as large business houses

 It helps to manage all the financial transactions between different parties

 It provides the Government with the flexibility to reach to the masses across the country
 The banking sector was developed during the British era. British East India Company
established three banks,

1. Bank of Bengal – 1809

2. Bank of Bombay – 1840

3. Bank of Madras – 1843

These three banks were later amalgamated and called Imperial Bank, which was taken over by
SBI in 1955. The Reserve Bank of India was established in 1935, followed by the Punjab
National Bank, Bank of India, Canara Bank and Indian Bank. They have been the pallbearers
in the History of Banking in India.

In 1969, 14 major banks were nationalized and in 1980, 6 major private sector banks were
taken over by the government.

Indian banking system, over the years, has gone through various phases. For ease of study
and understanding, it can be broken into four phases:-

1. Early Phase: During the first phase, the growth was very slow and banks experienced
periodic failures during the Early Phase between. There were approximately 1100 banks,
mostly small which failed in the early phase.

2. Pre Nationalisation Phase: Breakthrough happened in this phase, was Reserve Bank of India.
Reserve Bank of India (RBI) was created with the central task of maintaining monetary
stability in India. This phase of Indian banking was eventful and was a phase of restructuring,
 regulation. However, despite these provisions, control and regulations, banks in India except
the State Bank of India, continued to be owned and operated by private persons

3. Post Nationalisation Phase: This phase of Indian banking not so happening for entry of new
banks. Undoubtedly, it was a phase of expansion, consolidation and increment in many ways.
The banking sector grew at a phenomenal rate, fruits of nationalization were evident, and
the common man was now banking with great trust.

4. Modern Phase: This is the phase of “New Generation” tech-savvy banks. This phase can be
called as “The Reforms Phase”. Currently, 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.

STRUCTURE OF BANKING SYSTEM

One of a kind nations of the sector have distinct forms of banking structures. However,
industrial banking had grown below these kinds of banking systems. To recognize the structure
of banking system, allow us to absorb numerous types of banking structures one at a time.
Those sorts are:

(1) UNIT BANKING

Unit Banking originated inside the united nation of the United States. It grew in the United
States of America. As a counter a part of impartial or industrial units.

“An independent unit bank is a corporation that operates one office and that is not related to
other banks through either ownership or control.

Shaper, Solomon and White. Thus under unit banking, a single bank is a complete organization
in itself having its own management. The scale of operation is small and the area is restricted
to a locality only. Unit banking is localized banking and is much more responsive to the needs
of the locality. It has better understanding of the local problems and conditions, which helps it
to cater to the needs of the area in a better way. The staff of the unit bank is generally 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 free from the difficulties
and diseconomies of large scale operations. It will not drain out the financial resources of
villages and small towns to big industrial centres and will ensure a balanced growth.

(2) BRANCH BANKING:

Financial and Managerial problems faced by the unit banks allow to the emergence of banking
device. Now, this the most famous and essential banking system. In department banking, a
bank has a huge community of branches scattered all around the country. Branch banking
evolved in England. Sooner or later most of the nations of the sector adopted the device. Inters
of branches, the kingdom financial institution of India has emerged as one in all the biggest
banks within the international. As underneath the gadget the resources of some of branches get
pooled beneath the identical control, any person branch is in a higher position to face excessive
withdrawals by the customers. It helps diversification of sports because the area included by
way of the branches is normally good sized. Below the system branches can function without
maintaining big idle cash reserves. It turns into feasible for the financial institution to lease the
offerings of competent and professionally qualified managers, able to knowledge the handling
technical troubles and complex situations. The fee of remitting or moving price range from one
location to some other works out to be much less. The staff remains at a branch handiest for a
restricted period, so the chances of objective decision making inside the department banking
are excessive. Department Banking has a tendency to carry homogeneity in the winning hobby
Rates as it will increase the mobility of sources from one vicinity to another. It is easier for the
vital financial institution to exercising manage. It’ll talk only with some Registered /Head
 workplaces of the Banks and not with each individual branch. In this gadget there more safety
and liquidity of budget. The selection of securities and investments is greater. 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 study
of unit banking and branch banking is a case of small scale banking versus large scale banking.
It is evident that 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 overcomes certain limitations of
unit banking. But the system suffers from certain limitations of its own. There may be a lack of
co-ordination, proper controlled. The system is inflexible.

(4) GROUP BANKING:

It is similar to Chain Banking, the difference being that under Group Banking two or more banks
are brought under the control of the same management through 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 amount 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 serving local communities hold deposits with joint
banks serving in big cities. This kind 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 bank while they benefit
for the deposit funds of respondent banks.
PRIMARY FUNCTIONS:

1) Accepting of Deposits: A bank accepts deposits from the public. 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 depositor gets receipts 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.Current Account:

This type of account is kept by the businessman who are required to withdraw money every n
ew and then. 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) Advancing of Loans: The bank advances money in any one of the 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
Provide temporary accommodation since the extra amount 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 be easily disposed of 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 amount on a given security. The debtor withdraws
the amount within thislimit, interest is charged by the bank on the amount actuallywithdrawn.

E .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 Securities:

Purchasing of government securities by the banks tantamount to advancing loans by them to

the Government. Banks prefer 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)
3) Credit Creation:

One of the main functions of banks these days is to create credit. Banks create credit by giving
more loans than their cash reserves. Banks are able to create credit because the demand deposits
i.e. acclaim 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’s has 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

Besides the above primary functions, banks also perform May secondary 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, 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 periodic
payments ensuring the regular payments and avoiding the trouble of performing it themselves.
ii) Purchase and Sale of Securities: The modern commercial 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 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 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, mail transfers etc.

v) Representation and Correspondence: Sometimes commercial banks acts as representatives

or correspondents of the clients especially in handling various applications. For instance,
passports and travel 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) Letter of References: Banks also give information about economic 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) 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 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 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 certify the credit
worthiness of the customers. Letters of credit are very popular in foreign trade-in) acting as
Underwriters: Banks also underwrite the securities issued by the Government and Corporate
bodies for a commission. The name of bank as an underwriter 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 data 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 Traveller’s cheques and credit cards: Banks have been rendering great service by
issuing traveller’s cheques, which enable a person to travel without fear 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 handle cash all the time. Now, 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 gift cheques of the denominations of R s. 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 on-banking financial institutions’) Help in
Transportation of Goods: Big businessmen or industrialists after consigning goods to their
retailers send the Railway Receipt (Consignment Note) to the bank

Nationalised banks are:

•Allahabad Bank

•Andhra Bank

•Bank of Baroda

•Bank of India

•Bank of Maharashtra

•Canara Bank

•Central Bank of India

•Corpor ation 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

•City Union Bank

•Federal Bank

•HDFC Bank

•ICICI Bank

•IDBI Bank

•IndusInd Bank

•UTI Bank
List of Foreign Banks in India

•HSBC LTD

•Citi Bank

•Standard Chartered Bank

•JPMorgan Chase Bank

 RESEARCH METHODOLOGY

Research is an artwork of clinical investigation. In other word studies is a scientific and

systematic look for pertinent information on a selected subject matter. The good judgment at
the back of taking studies method into consideration is that one can have know-how
approximately the approach and system followed for fulfilment of targets of the undertaking.
With the adoption of this others can evaluate the results additionally. It’s most important
intention is to maintain the researchers at the right track. The technique followed for reading
the targets turned into surveying the saving account holders of District Indore. So maintaining
in view the nature of necessities of the look at to accumulate all the relevant data regarding the
evaluation of saving account of Induslnd bank of Indore with other banks, direct personal
interview technique with structured questionnaire was adopted for the gathering of primary
facts. Secondary records has been accumulated through the numerous magazines and
newspapers and via surfing on internet. And the guide inside the organization was consulted at
generally.

SAMPLE DESIGN: A sample layout is an exact plan for acquiring a sample from a given
population. It refers back to the techniques or the procedure the researcher could adopt in
deciding on objects for the sample. Pattern design may as nicely lay down the number of
gadgets to be included in the pattern 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.

DATA COLLECTION

Data was collected by using main two methods i.e. primary data and secondary data.

PRIMARY DATA

Primary data 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, particular in case of big

enquiries. Here in our research we set 13 simple questions and request the respondents to
answer these questions with correct information.

RESPONDENTS:-Respondents helps in creation of more accurate idea about our research.

We personally meet the respondents inside and outside the banks.

SECONDARY DATA
Secondary data is the data which is available in readymade form and which is already used by
people for some purposes. There may be various sources of secondary data such as-newspapers,
magazines, journals, books, reports, documents and other published information.

BANKS ANNUAL REPORTS

:-Banks issues there annual reports to get the people informed with the profitability and growth
of the bank. These annual reports helps us a lot to get the latest 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.