A

PROJECT REPORT ON

BANKING AND FINANCE CUSTOMER STISFACTION SURVEY

SUBMITTED BY: PANKAJ SHARMA

SUBMITTED TO: MEENAKSHI BORDIA

TABLE OF CONTENT
Topic Page No.

Acknowledgement History of Bank Objective of the Research Scope of the Research Sampling Method & Technique Focus Group Interview Data Analysis Major Findings Questionnaire Bibliography

I 1 3 4 6 8 11 24 25 27

ACKNOWLEDGEMENT
I express sincere thanks to Prof. Meenakshi Bordia who giving us the opportunity to select a company which provided training of 20days. He took personal interest in our training so that we could utilize our potential. We are very thankful for her valuable guidance, encouragement and cooperation. It is well-established fact behind every achievement lays an unfathomable sea of gratitude to those who have ever come in to existence. It gives me a great pleasure in acknowledging the invaluable assistance extended to me by various personalities in the successful completion of this project. Same is true with my survey in banking and finance at Jaipur, Rajasthan. I would like to thanks the following people for their support & guidance without which dimensions in my survey. I am heartily thankful to JSB (Jaipur School of business) jaipur. I also thank to the people who directly and indirectly supported Sudhir Kumar pal, Tejpal Singh, Yusuf Khan, Shailendra Patidar, Sumer Meena, Santos Kumar Dusad, Tanuj Sharma, Vijay Patidar, Sohan Singh, Shiv Shankar and Ved Parkas for the successful fulfillment of my survey of Banking and finance.

Pankaj sharma

History of bank in India

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and The Bank of Hindustan, which started in 1790; but both are now defunct. The oldest bank of India is the State Bank of India, which originated as the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This is the largest commercial bank in the country. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these. do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs.

According to a report by ICRA Limited, a rating agency

Chart Title

7% 18% public sector banks private sector banks foreign banks 75%

Nationalization
This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included.The Reserve Bank of India, India's central banking authority, was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in] In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

Liberalization
In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

Difference between nationalized banks & private banks.

Nationalized banks are those banks where the Govt. holds more than 51 % of the paid up equity shares capital and the management of the banks are vested in the hands of the Govt. nominated Directors. The private banks are those where the share capital is held by the public not the Government and the management is vested in the hands of Directors elected by share holders. The banking policies for both private and nationalized banks are framed by the Central Bank. In India the RBI is the central bank.

Objectives of the Research

The first step in any research is deciding what we want to learn. The objectives of the project determine whom we will survey and what we will ask them. If our goals are unclear, the results will probably be unclear. Objectives are the keys to proceed forward in any research. To study the kind of services provided by the Bank to the customers. To find out whether the customers are satisfied by the services and facilities provided by the Bank.

 To find out how frequently do the correspondents do? To find out what are the factors correspondents are dissatisfied with. To find out what are the factors correspondents are satisfied with.

Scope of the Research

Helps in identifying the factors which can help the Nationalized Bank to improve their services and facilities. Helps in creating awareness what are the factors the customers are looking for when they go for loan. Helps in identifying the age group of the respondents who go for opening an account in the bank. Helps in adopting suitable strategies for \improvement in the services and facilities being provided. Helps in determining the average amount of loan provided to the customers income.

Research methodology
Research is a diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories and application, etc. Methodology is the system of methods followed by a particular discipline. Thus research methodology is a way how we conduct our research. The basic concept of research methodology refers to the way in which companies conduct their research and how they collect the data they need. Whenever a company or organization needs to investigate a particular area of their business dealings, they need to adapt the most suitable research methodology for the job. Research methodology typically involves a full breakdown of all the options that have been chosen by a company in order to investigate something. This would include the procedures and techniques used to perform the research; as well as any

of the terminology and explanations of how these methods will be applied effectively. A company may need to decide what format of research they want to use before the investigation begins. For example, if a company that sells a particular product needs to launch research to find out how effective or desirable a new product is, they will need to conduct what is known as primary research. This method means that the company will collect data and information themselves first hand. Alternatively, a company many only require figures or statistical findings that can be located from an external source to themselves. This is known as secondary research, and this area of research methodology typically involves reading published journals, newspapers and other materials to give companies the information they need second hand. However, research methodology is not always pin-point specific. Many areas of research methodology may simply be referring to a generic path or method that a company will apply in order to retrieve the information they need. Research methodology is the way in which researchers specify how they are going to retrieve the all-important data and information that companies will need to make vital decisions.

Research Design
Research design is a set of advance decisions that make up the master plan specifying the methods and procedures for collecting and analyzing the needed information. A research design is a framework or blueprint for conducting the market research. It Details the procedures necessary for obtaining the information needed to structure and/ Or solving market research problem. In other words, research design constitutes the Blueprint for the collection, measurement and analysis of data. It aids the scientist in the allocation of his limited resources by posing crucial choices.

Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project -- the samples or groups, measures, treatments or programs, and methods of assignment -- work together to try to address the central research questions.

The research design is classified into three kinds they are as follows Descriptive Research Exploratory Research Casual Research

Descriptive Research
Descriptive Research relies heavily on interview of respondents and data available in secondary data sources. Descriptive research is proper when the research objectives include the following:i) Portraying the characteristics of social or physical phenomena and determining the Frequency of occurrence. ii) Determining the degree to which the variables are associated (however, causeand effect relationships, discussed under causal research design, are different from Measurements of degrees of association in descriptive research design). iii) Making predictions regarding the occurrence of social or physical phenomena.

Exploratory research
Exploratory research is conducted into an issue or problem where there are few or no earlier studies to refer to. The focus is on gaining insights and familiarity for later investigation. Secondly, descriptive research describes phenomena as they exist. Here data is often quantitative and statistics applied. It is used to identify and obtain information on a particular problem or issue. Finally causal or predictive research seeks to explain what is happening in a particular situation. It aims to generalize

from an analysis by predicting certain phenomena on the basis of hypothesized general relationships.

Causal Research
Causal Research explores the effect of one thing on another and more specifically, the effect of one variable on another. The research is used to measure what impact a specific change will have on existing norms and allows market researchers to predict hypothetical scenarios upon which a company can base its business plan. For example, if a clothing company currently sells blue denim jeans, causal research can measure the impact of the company changing the product design to the color white. Following the research, company bosses will be able to decide whether changing the color of the jeans to white would be profitable. To summaries, causal research is a way of seeing how actions now will affect a business in the future. Causal Research relies on interviews and in the conduct of experiments. Causal research is proper when the research objective is to identify variables that cause the phenomenon being predicted and understand why they cause what is being predicted.

Sampling Method and Technique Used

There are many sampling methods which are taken by the need of the survey report; all these methods are helping out for effective use of respondents response in a positive way. Some of the techniques are these:

Random Sampling
The first statistical sampling method is simple random sampling. In this method, each item in the population has the same probability of being selected as part of the sample as any other item.

Systematic Sampling
Systematic sampling is another statistical sampling method. In this method, every element from the list is selected as the sample, starting with a sample element n randomly selected from the first k elements.

Stratified Sampling
The statistical sampling method called stratified sampling is used when representatives from each subgroup within the population need to be represented in the sample. The first step in stratified Sampling is to divide the population into subgroups (strata) based on mutually exclusive criteria. Random or systematic samples are then taken from each subgroup.

Cluster Sampling
The fourth statistical sampling method is called cluster sampling, also called block sampling. In cluster sampling, the population that is being sampled is divided into groups called clusters. Instead of these subgroups being homogeneous based on a selected criterion as in stratified Sampling, a cluster is as heterogeneous as possible to matching the population. A random Sample is then taken from within one or more selected clusters.

Judgmental Sampling
Another non-statistical sampling method is judgmental sampling. In judgmental sampling, the person doing the sample uses his/her knowledge or experience to select the items to be sampled. For example, Based on experience. We can use any technique which is suitable for our project.

Sample size

Sample size is also a very important aspect in research design. It means how many respondent we want for our survey completion.

Focus Group Interview

On the basis of the focus interview conducted with some experts of the banking sector and those who have served accounts in both the sectors. Where able to construct the questions in a better way. An in depth practical knowledge was gained, by us, which, immensely helped us to know about the various services offered by the banks in India. The comparative analysis they gave us was quite appreciable their personal experiences added to our bucket of banking knowledge.

Major findings of focus group interview1. Paper work more 2. Easy accessibility to banking services in private bank (For example-No account transfer needed in change of state.) 3. Excellent customer hospitality by private bank. 4. Excellent atmosphere were customer is force to except beyond banking.

Sample size = 200 Descriptive Research:

We have used descriptive research design for this survey.

Cross Sectional Design:

We have used cross sectional design for this survey.

Sampling Technique
Convenience sampling attempts to obtain a sample of convenient elements. Often, respondents are selected because they happen to be in the right place at the right time.

Cluster Sampling:
Out of various clusters made of jaipur we choose. 1. Vaishali Nagar 2. Mansarovar 3. M. I. Road

In these selected areas we went

National Handloom Easy Day Nursery Park V.T Chauraha Sward Path High court Albert Hall Ganpati Plaza Lifestyle Here we did convenience Sampling.

Sources of data Primary source:

Focus group Interview Structured questionnaires Mall-Intel

Secondary source:
Internet BRM Books Trade jaw

Tools

Used

For

Data

Statistical tools: The statistical tools used for analysis is percentage method
and data has been tabulated and represented using bar graph and pie charts.

Software Tools: The software used for the data analysis is Microsoft excel and
Microsoft word.

Limitations of the study

The method used for collecting the data is time consuming. The data collected from the study may be ambiguous in few cases. Difficult to collect the information from the respondents completely at the time of the study. Due to shortage of time the survey had to be restricted only in few areas, hence could not cover all areas of the city

Data Analysis and Interpretation

Data analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons and analysis. Interpretation refers to the task of drawing inferences from the collected facts after an analytical and/or experimental study. In fact, it is a search for broader meaning of research findings. Interpretation is essential for the simple reason that the usefulness and utility of research findings lie in proper interpretation. It is being considered as a basic component of research process.

Table No. -1 Bank Account of the respondent

Have any Bank Account Total Percentage yes 200 100% No 0 0%

Interpretation:
From the above table it can be interpreted that 100% respondents have A/c in the bank.

Graphical representation of the respondents who have bank account.

yes

no

Primary Sources

Sample Size 200

Table No.-2 if yes then specify?

If yes then specify Total Percentage Private bank 103 51.5 Public bank 23 11.5 Both 74 37

Interpretation:
From the above table it can be inferred that 51.5% respondents have private bank account and 11.5% respondents have public bank account and 37% respondents have accounts in private bank and public bank.

Graphical representation of respondent who have bank a/c in public,Private and in both a/c

respodent
both 12% private 51%

public 37%

Sources - primary

Sample size 200

Table no. 3 Rate the service of your bank.

Rate the service of your bank Total percentage Excellent 67 33.5 Average 86 43 Poor 47 23.5

Interpretation:
From the above it can be interpreted that about 34% of the respondents have said Excellent, 43% of average and the remaining about 24% respondents have said poor.

Graphical representation of respondents rate the service of your bank.

Poor

47

23.5

Average

86

43

Excellent

67

33.5

Sources primary

Sample size - 200

Table no.4 borrowed any loan? Then specify

Borrowed any loan Total percentage Private Bank 63 31.5 Public Bank 94 47 No 43 21.5

Interpretation: From the above it can be interpreted that about 47% of the respondents have said Public Bank And 31% of private Bank and the remaining about 22% respondents have not taken any loan.

Graphical representation of respondents who borrowed loan

Have you borrowed any loan?

Borrowed any loan Private Bank 0% 22% 31% Public Bank No

47%

Source Primary

Sample Size 200

Table No. 5 Paper work procedure for the loan? Paper work procedure Total percentage Easy 102 51 Difficult 98 49

Interpretation: From the above it can be interpreted that about 52% of the respondents have said Easy and the remaining 49% respondents have said difficult.

Graphical representation of respondents said easy and difficult

Paper work procedure for the loan

Total percentage

51 102

49 98

Easy

Difficult

Sources Primary

Sample Size 200

Table No.6 Were there any hidden charges? Any hidden charges? Total Percentage Yes 96 48 No 104 52

Interpretation: From the above it can be interpreted that 52% of the respondents said No and The remaining 48% said yes.

Graphical representation of respondents said yes and no

hidden charges?
Yes No

104

96

52 48

0 Total Percentage

Sources Primary

Sample Size 200

Table No.7 Satisfied with the rate of interest of your bank loan? Satisfied with the rate of interest of your bank loan? Total Percentage Yes 42 21 No 158 79

Interpretation: From the above it can be interpreted that about 79% of the respondents are not satisfy with the rate of interest and the remaining respondents about 21% respondents satisfy with the rate of interest of the bank. Graphical representation of respondents is happy rate of interest
Satisfied with the rate of interest of your bank loan?
Total Percentage

21

79

42

158

Yes

No

Table No.8: Any hidden charges? Hidden Charges Total Percentage Yes 86 43% No 81 41% Didnt 25 11%

Interpretation: From the above data there is 43% says yes, in the same 41 % respondents says no, and remaining 11% didnt answer this question. It indicates the average people have information about the banks hidden charges.

Graphic representation of hidden charges of banks:

yes

did'nt answer

no 0% 10% 20% 30% 40% 50%

Source: primary

sample size: 200

Table No: -10 bothered by the bank for the payment of the loan? Bothered by payment of bank for loan Total Percentage Yes No Didnt

70 35%

108 54%

22 11%

Interpretation: In this question the 35% respondents show they are bothered by the bank for the payment. The 54% respondents say no it means they are really bothered for the payment of the loan. In this same question the 11% respondent didnt give the answer. Its shows the more persons didnt bothered by the payment of bank loan.

Graphic representation of respondents bothered by payment of bank loan:-

yes

no

did'nt

11% 35%

54%

Source: primary

sample size: 200

Q. no. 11:- What type of a/c do you have in the bank? Account types Total percentage Saving a/c 114 57% Current a/c 17 8.50% Salary a/c 67 33.50% other 02 1%

Interpretation: From the above table it can be interpreted that. Around 57% respondents have the savings A/c8.50% respondents have the current a/c, 33.50% are have salary a/c and only 1% respondents have other a/cs in the banks it shows the majority of the a/c holders are having saving a/c or salary a/c.

Graphic representation of types of A/c:

saving a/c

current a/c 1%

salary a/c

other

34% 57% 8%

Source: primary

sample size: 200

Q.no.12: Are you satisfied with the paper work done for the A/c?

Satisfy with paper work Total Percentage

yes 158 79%

no 33 16.5%

Didnt 9 4.5%

Interpretation: From the above table it can be inferred that 79% respondents say yes for they are satisfy with the paper work done by the bank, and only 16.5% respondents shows they are not satisfy. So by this data it can be assumed more peoples satisfy with paper work. Graphic representation of satisfy with paper work:

did'nt

no

yes 0% yes 79% 20% 40% no 16.50% 60% did'nt 4.50% 80%

Source: primary

Sample size: 200

Q. no. 13:- Have you given any free offering with your bank A/c? Free Offerings Total percentage Lockers 22 11% Credit Card 56 28% Fixed Deposit 79 39% Overdraft 20 10% Others 23 12%

Interpretation: From the above table it can be inferred that 11% says they have lockers with their a/c by offering, 28% says credit cards, 39% says fixed deposits, 10% says overdraft and 12% says they get other offerings with their A/c.

Graphical representation of free offerings by banks:

12% 10%

11% Locker 28% Credit card Fixed Diposit

39%

Overdraft Did'nt

Sources- Primary

Sample Size- 200

Table No. 14 rate your bank. Rate your bank total Percentage Excellent 40 20 Very Good 42 21 Average 88 44 Poor 15 15

Interpretation -From the above it can be interpreted that about 20% of the respondents rate their bank excellent, 21% very good, 44% average and the remaining were 15% rated poor.

Graphical representation of banks rating

Chart Title
Excellent Very good Average Poor

15% 44%

20% 21%

Source- Primary

Sample aize-200

Major Findings:
51.5% respondents have private bank account and 11.5% respondents have public bank account and 37% respondents have accounts in private bank and public bank. 20% of the respondents rate their bank excellent, 21% very good, 44% average and the remaining were 15% rated poor. 11% says they have lockers with their a/c by offering, 28% says credit cards, 39% says fixed deposits, 10% says overdraft and 12% says they get other offerings with their A/c. 79% respondents say yes for they are satisfy with the paper work done by the bank, and Only 16.5% respondents show they are not satisfied. So by this data it can be assumed More peoples satisfy with paper work.

35% respondents show they are bothered by the bank for the payment. The 54% respondents say no it means they are really bothered for the payment of the loan. In this same question the 11% respondent didnt give the answer. Its shows the more persons didnt bothered by the payment of bank loan.

43% says yes, in the same 41 % respondents says no, and remaining 11% didnt answer this question. It indicates the average people have information about the banks hidden charges.

79% of the respondents are not satisfying with the rate of interest and the remaining respondents about 21% respondents satisfy with the rate of interest of the bank.

Questisonnaire
Gender -_________________ Age-_____ Occupation-_______________________

Do you have any bank account?

Yes No

If yes then specify

Private Bank Excellent Private Easy Average Public Difficult No No Public Bank Poor

How would you rate the services of your bank? Have you borrowed any loan? Then specify How was the paper work procedure for the loan? Were there any hidden charges?
Yes Yes

Are you satisfied with that interest on your loan? Do you get a regular information on when pay your dues from your bank?

Yes

No

Have you ever bothered by the bank for the payment of the loan?
Yes Saving A/C Salary A/C Current A/C Other A/C No

What type of account do you have in the bank?

Are you satisfied with the paper work done for the Account?
Yes No

Have you given any free offering with your bank account?
Locker Credit card FD OD

Rate the following for the sales man / banker you communication with?

Awareness- Excellent Helpfulness- Yes

Rate your bank?
Excellent Very good

very good No Average

Good

Poor

Have you got any suggestion to improve the bank services

. .

Bibliography
C.R. Kothari Ronald S. Rubin Donald S. Tull Del I. Hawkins Naresh K. Malhotra David J. Luck WWW.Google.Com