1.

1 Introduction
The traditional definition of bank (section 5(b) of Banking Regulation Act of India, 1949) refers banking as accepting for the purpose of lending or investment of deposits of money received from the public, repayable on demand or otherwise and withdraw able by Cheque, draft, and order or otherwise. The present scenario of banking industry have took a deviation where we can find electronic as well as traditional methods where customer has got an option to involve in bank transaction. Accordingly he can bank directly with bank (Core banking) or through branch. Opinion of customers towards services rendered by both public and private sector banks are difficult to measure in terms of quality. Attempts are made in this study to know the youths (18-30 years) perception towards public sector banks.

1.2 Statement of Problem

The mode of delivery of banking services had been changed as and when new and secured channels were introduced. Banks in India which followed traditional methods of banking faced competitions from private and foreign banks which introduced modern technology in banking. Even Public Sector Banks are not exception.

1.3 Objectives
To study the influential factors posing choices of public sector bank. To find out the scope of improvements on parameters like technology and service delivery of public sector banks. To analyze youths perception on modernization of Banking and their loyalty towards public sector banks. To find out the level of competency between Public & Private banks towards customer satisfaction.

1.4 Need for the Study

To know how well the youths are adopted to the modern banking services provided by the public sector banks. It facilitates to get the feedback from the customers in order to find out the scope of improvement of services of Public Sector Banks. To know the reach of Public Sector Banks in two segments (rural and urban).

1.5 Scope of the Study

The study Opinion of Youths with Regards to Public Sector banks helps to know the satisfaction that customer receive and what more they expect from Public sector banks. Due to constraint of both time and resources research will be organize in urban and rural areas concentrating on youth between the age group 18 to 30 years. The sample size considered here is 100, comprising of 50 rural and 50 urban. The study is confined for 3 months in Udupi District. In this area the respondents are contacted and primary data is collected from them. For this purpose researchers interviewed 100 respondents personally with well-structured questionnaire. The study conducted is purely of academic interest and to understand the customer mindset and perception towards the Public Sector Banks. Opinions are not suggestive measures.

1.6 Research Methodology

The research conducted incorporates both primary and secondary data. They are 1.6.1 Primary data Primary data were procured through reaching the samples and getting their opinions. A well designed structured questionnaire is used as a tool for this purpose. Researcher interviewed customers personally. 1.6.2 Secondary Data Secondary data were procured by magazines, internet, pro-quests, standard search engines, articles, journals and newspapers.

1.7 Samplings
Samples were selected on convenience basis. Total samples are 100 (50 each from rural and urban respectively). Team visited 10 villages (5 samples from each village) and 3 towns (20 each from two towns and 10 from one). Age group of samples considered is from 18-30 years. No restrictions were made based on gender and occupation.

1.8 Literature Review

Liberalization played an important role in the growth rate of Indian banks. In the study A Comparative Study between Public Sector Banks & Private Sector Banks (Haque and Imamul, 2011) it is clearly shown before liberalization nationalized banks were spread worldwide but they did not pay any attention to improve customer satisfaction and quality of performance. But after liberalization Narsimham Committee report was implemented. According to this banks were asked to follow internationally accepted practices for welfare of the banks. Due to this nationalized banks had tough competition from private banks and foreign banks because of their international standard in banking services. These new banks came up with modern information technology network and modern banking services like ATMs, debit card, online banking etc. They provided customers with wide range of services. All these banks are trying to establish themselves as most preferred banks by customers and that is done by giving better services than their competitors. This study is mainly about level of service for the customers of private and public banks. Case study on customers preference and satisfaction of four basic banking which was conducted in 2010 is mainly based on the various services preferred by customers and their satisfaction level. They did a research using 300 samples to know their customers preference and came to a conclusion that business and vehicle loans were most common. There was a positive response towards bank loans and bank deposit schemes but net banking failed drastically in customer satisfaction and insurance services got limited attention. The banks concentrated on changing markets, new technology, foreign banks entry, banks regulation, competition etc. to satisfy customers. The banks try to change their services with their customers preference and expectations. This

research work made us come to a conclusion that most of the customers prefer banks based on interest rate (36.61%), safety (26.76%) and services (21.83%). A Comparative Analysis of Service Quality in Selected Commercial Banks in Delhi was conducted to know services rendered by public, private and foreign banks of India (Debashish and Sathya Swaroop, 2009).This study was based on nine selected commercial banks in Delhi. It was analysed based on their various services and their quality of services in public, private and foreign banks. Services in Indian banks are mostly branch based in public sector banks. Foreign banks are based on the latest technologies available. From this study it was clear that in Delhi foreign banks have established themselves better and satisfy customer better than private and public banks. There is close competition between private and foreign banks. The public sector banks which is said to be three fourth of banking business have failed to satisfy their customers and establish themselves. Technological efficiency plays a vital role in the growth of all the banks. To know this aspects in detail there was a study conducted in the year 2008(Evaluation of technical efficiency and ranking of public sector banks in India conducted by Kumar, Sunil, Gulati and Rachita) on all the 27 public sector banks operating in India. Technical efficiency scores ranged from 0.632 to 1 whereas average score was 0.885. Technical efficiency is about ability of banks to transform multiple resources into multiple financial services. .It was concluded that Andhra bank was the most efficient banks followed by Corporation banks. The banks which were affiliated by SBI were said to be more efficient than nationalized banks. Public sector banks which have high market share, high staff productivity are said to be more efficient. . This study on the 27 public sector banks were said to be the strictest ranking system on the basis of technological efficiency scores.

1.9 Limitations
Time seems to be one of the biggest limitations. But in the project, attempt is made to provide justice to our work within the allotted time frame of 3 months.

It is difficult to collect primary data. Verifications of those data which are collected from secondary sources are not always possible. Some samples may have come to a quick conclusion, but researchers made all their attempt to get the proper response from the respondents. Due to time barriers, the study is restricted only to Udupi District. By the research conducted, the behavior of the future customers cannot be predicted. It is only an effort to understand the present situation level.

1.10 Chapter Scheme

Chapter 1 : Research Design This chapter includes background of study, need and scope for study, research methodology, sampling methods, limitations and literature survey. Chapter 2 : Industry Analysis This gives a brief introduction of banking sector in India and present standings of the industry. Chapter 3 : Data Analysis It is necessary to analyze and interpret the collected data to arrive at conclusion of the study. It involves interpretation of primary data collected. Chapter 4 : Finding and Suggestions The findings of facts and suggestions to be implemented to improve Public sector banks services which are generated during research are mentioned here. Chapter 5 : Conclusion Final aspect regarding entire research is concluded in this chapter.

Introduction
The Indian banking industry can be broadly categorized into nationalized, private banks and foreign banking institutions. Banking in India originated in the first decade of 18th century with the General Bank of India coming into existence in 1786. The oldest bank existence in India is State Bank of India. It was originated as the Bank of Calcutta in June 1806, and then it immediately became the Bank of Bengal, Bank of Bombay and Bank of Madras all three of which established from the British East India Company. Between 1865 and 1895, Allahabad Bank and Punjab National Bank came into existence. In the year 1919, Imperial Bank was formed by way of merger of these three presidential banks. The period between 1906 and 1911 saw the establishment of bank inspired by Swadeshi movement. A number of banks established then have survived to the present such as Bank of India, Corporation bank, Indian Bank, Bank of Baroda, Canara Bank and Central bank of India. The RBI act was passed in the year 1934. It was nationalized in the year 1949. RBI became an institution owned by the Government of India. In 1949, Banking Regulation Act was passed which empowered the 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. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. The SBI is unique in several respects and it enjoys a position of domination as the agent of RBI wherever RBI has no branches. It is the single largest bank in the country with large international presence, with a network of 48 overseas offices spread over 28 countries covering all the time zones. Public sector banks are the ones in which the government has a major holding.

Players in Banking Industry

1. Public Sector Banks 2. Private Sector Banks

Public Sector Banks in India

Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank State Bank of India and its associated banks like State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore. The liberalize policy of government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of services that is offered to the customer. Historically, the private sector banks played a crucial role in the growth of joint stock banking in India.
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The first half of the 20th century had seen outstanding growth of private sector banks. As a result in 1951, there were 566 private banks of which 474 were non-scheduled and 92 scheduled classified on the basis of their capital size.

Private Sector Banks in India (Prominent Players)

Bank of Rajasthan Catholic Syrian Bank Ltd City Union Bank Ltd Dhanalakshmi Bank Ltd Federal Bank Ltd ING Vysya Bank Ltd Karnataka Bank Ltd Karur Vysya Bank Ltd Lakshmi Vilas Bank Ltd Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd HDFC Bank Ltd ICICI Bank Ltd IndusInd Bank Ltd Kotak Mahindra Bank Ltd Axis Bank (earlier UTI Bank) Yes Bank Ltd

Current Scenario of Indian Banking Sector

The Indian banking industry has observed a period of constant growth during the last decades, with banks along with their customers embracing healthy systems and processes. Now banking sector introduced the new modern technology. It introduced the concept of Debit and Credit cards, e-transfer of funds, ATM and mobile banking. It was at this time that competition was truly introduced in this sector. The industry has
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recorded a consistent rise in the number of reporting offices in last few years. With Reserve Bank of India stressing the policy of financial inclusion, there has been a renewed importance on rural expansion. However, a large part of Indian village population still remains without banks. It will require further expansion from Indian banks to raise the penetration levels of banking services in the country, especially in rural areas. The sector is in the growth stage with many new products and services offered and a wide market base tapped. Quality of assets has improved and the confidence in the system is building up due to the increased transparency norms. Government interference is also gradually reducing. The banking industry in India is in a center of transformation, and it helps to the economic liberalization of the country. It has changed business environment in the country. In the pre-liberalization period, the industry was only focusing on deposit mobilization and branch expansion. But with liberalization, it found many of its advances under the non-performing assets list and also the sector has become very competitive with the entry of many foreign and private sector banks. The face of banking is changing rapidly. The Indian banks saw lower levels of money supply, and deposits as a percentage of GDP in financial year 2012 as compared to that in financial year 2011 on account of the uncertain economic environment. The Indian banking sectors have improved the profitability, productivity and efficiency of banks, but in the days ahead banks will also have to prepare themselves to face new challenges.

Data analysis is about analysis of summarized data which is obtained by tabulating the collected data and processing to get a summarized output. This study was conducted to know the opinion of youth about public sector banks. During our study we have contacted 100 respondents who are the public sector bank customers from rural and urban areas of Udupi district (50 respondents from each area) irrespective of gender and income .The primary research was purely organized on the basis of structured questionnaire. The collected data was entered into SPSS which helped us in getting an accurate output which has been analyzed.

3.1 Retaining of Existing Customers

Table No.3.1 Retaining of Existing Customers No of respondents

Public Sector Both Total

Source: Field Study

83 17 100

Chart No.3.1 Retaining of Existing Customers

120 100 80 60 40 20 0 Public Sector Both Total No of People

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Interpretation : Only public sector bank customers were chosen as sample as a result out of 100 samples. Out of 100, 83 percent of samples had transactions only in public sector banks. Whereas 17 percent people had transactions with both public and private sector banks. This shows that public sector banks are efficient in retaining existing customers.

3.2 Period of Dealing

Table No 3.2 Period of dealing No of People Less than 1 year 1 to 5 years 5 to 10 years 10 years and above Total
Source: Field Study

4 49 23 24 100

Chart No 3.2 Period of dealing

120
100 80 60 40 20 0 Less than 1 year 1 to 5 years 5 to 10 years 10 years and above Total No of People

Interpretation : The above table reveals that 49 percent of people are dealing for a period of one to five
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years, 24 percent of people are dealing for more than a year, 23 percent of people for 5 to 10 years, whereas 4 percent of people are dealing since less than a year. Since the samples approached were of age group between 18 and 30 years, it can be said that the youths are loyal to the banks they dealt with.

3.3 Reasons for opting Public Sector Banks

Table No 3.3 Reasons for opting Public Sector Banks No of People Safety Comparative rate of interest Mandatory Requirement Proximity 52 4 29 15

Total
Source: Field Survey

100 Chart No 3.3 Reasons for opting Public Sector Banks

120 100 80 60 No of People 40 20 0 Safety Comparative Mandatory rate of interest Requirement Proximity Total

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Interpretation : People transact with public sector banks for many reasons. Some of the reasons may be the nearness of bank branch, some may think these banks as safe, some may deposit as per the large spread of branches and some may deposit as their salaries will get deposited in specified banks. After analyzing the above table we can conclude that 52 percent of people opt public sector banks because of its safety factor, 29 percent of people opted because of mandatory requirement, nearly 15 percent of people went for public sector banks because of proximity and 4 percent of people opted because of comparative rate of interest. People believe these banks as safer as it is owned and regulated by Government directly or indirectly.

3.4 Transparency
Table No 3.4 Transparency No of People Public Sector Banks Private Sector Banks No idea Total
Source: Field Study

61 7 32 100

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Chart No 3.4 Transparency

120 100 80 60 40 20 0 Public Sector Banks Private Sector Banks No idea Total

No of People

Interpretation : Approach of bank to be transparent towards their approach plays a role when opting for any bank. It was observed that 61 percent of the people thought public sectors are transparent where as 7 percent of people thought private sector are transparent, 32 percent of people had no idea about it. So we can say that people think that public sector banks are transparent than the private banks.

3.5 Perception towards Banks

Table No 3.5 Perception towards Banks No of People Personalized Services 12

Wide Branch Network Customer Service Core Banking Total

Source: Field Study

38 41 9 100

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Chart No 3.5 Perception towards Banks

120 100 80 60 No of People 40 20 0 Personalized Services Wide Branch Network Customer Service Core Banking Total

Interpretation : It is important to know that what comes first in minds of customer when he thinks of his bank. It can be seen that 41 percent people think of customers services, 38 percent of people think of its wide branch network, 12 percent of people thought its personalized services, and 9 percent people think of its core banking facility. Here only the perceptions are collected irrespective of the factor being positive or negative.

3.6 10 Minutes window service

Table No 3.6 10 minutes window service No of People Yes No No idea Total
Source: Field Study

40 10 50 100

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Chart No 3.6 10 Minutes window service

120 100 80

60
40 20 0 Yes No No idea Total

No of People

Interpretation : According to norms laid down by RBI, it is mandatory for a bank under public sector to deliver services in branch counter within 10 minutes of arrival to counter. When asked to respondents, 40 percent were aware of this service and they think this norm is effective whereas only 10 percent of people think that it is not effective. But majority of 50 percent of people were unaware of this norm.

3.7 Communication of changes in Banking Norms that effect Customers

Table No 3.7 Communication of changes in Banking Norms that effect customers No of People Send Notice on Date Notify Some Days Later Communicate on visit Never Notice Total
Source: Field Study

43 5 24 28 100

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Chart No 3.7 Communication of changes in Banking Norms that effect customers

120 100 80

60
No of People 40 20 0 Send Notice on Notify Some Communicate Never Notice Date Days Later on visit Total

Interpretation : Changes in regulation which effects customers of banks must be communicated to them so as it does not affect regular transactions. Out of 100 percent samples approached, 43 percent of people said banks send notice on date , 28 percent said their banks do not informs them, 24 percent of people said banks inform them when they visit their respective banks and 5 percent of people said banks notify after few days. During survey it was revealed that banks communicated customers through SMS services and telephones. And remaining was noticed on visit and by freezing their existing accounts.

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3.8 Mode of services preferred

Table No. 3.8 Mode of services preferred No of People Internet Banking Mobile Banking SMS Banking Branch Banking Total
Source: Field Study

36 9 8 47 100 Chart No. 3.8

Mode of services preferred

120 100 80 60 No of People

40
20 0 Internet Banking Mobile Banking SMS Banking Branch Banking Total

Interpretation : Customers prefer to bank in mode which they prefer to be convenient to them. The above chart reveals that 47 percent of people prefer to bank directly with branch banking, 36 percent of people use internet banking, 9 percent of people use mobile banking and 8 percent of people use SMS banking. We can conclude that majority of bank customers still prefer to bank with branch. The reason may be inadaptability to modern technology or it may be proximity of bank branches. In other context, referring Table No. 3, we can also tell that people consider branch banking to be safer than other modes.
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3.9 Preference towards modern technology

Table No 3.9 Preference towards modern technology No of People Yes No Yes, but got solved immediately Needs Time To Learn Total
Source: Field Study

10 63 20 7 100 Chart No 3.9 Preference towards modern technology

120

100
80 60 No of People 40 20 0 Yes No Yes, but got Needs Time To solved Learn immediately Total

Interpretation : It is difficult to adapt to changes. Attempt was made to know the preference of customers towards usage of modern technology in banking. It was noticed that 63 percent of total samples did not have any problems while using modern banking technology, 20 percent of people did face few problems but they got solved immediately, 10 percent of people had few problems where as 7 percent of people said they need time to learn this new
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technology.

3.10 Timely issue of credit/debit card

Table No. 3.10 Timely issue of credit/debit card No of People Yes No Not applicable Total
Source: Field Study

67 22 11 100 Chart No. 3.10 Timely issue of credit/debit card

120

100

80

60

No of People

40

20

0 Yes No Not applicable Total

Interpretation : Out of 100 samples approached, 11 percent did not opt for debit/ credit cards. Sixty Seven percent had problem on issue of cards and 22 percent of respondents did not have

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any problem on issue. This shows that there is a loop hole on procedure of debit/ credit card issue.

3.11 Grievance handling

Table No. 3.11 Grievance handling No of People Quick response and solve Respond but late Never respond Total
Source: Field Study

64 33 3 100

Chart No. 3.11 Grievance handling

120

100

80

60 No of People 40

20

0 Quick response and solve Respond but late Never respond Total

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Interpretation : It is necessary to bank to address grievances of their customers in order to retain them. Field survey shows that about 64percent of samples were fully satisfied by the grievance addressed. To which 33 percent of samples got response at a later time and 3 percent were not attended by the service cell. This shows the efficiency of public sector banks in addressing grievances.

3.12 Perception of youths on loan facility by Public and Private Sector Bank

Table No. 3.12 Perception of youths on loan facility by Public and Private Sector Bank Accessi Documentation bility Public sector banks Private sector banks No Idea Total
Source: Field Study

Rate of interest

Repayment options

No Response Total

procedures

22

13

12

58

12

30

0 34

0 19

0 19

0 13

12 15

12 100

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Chart No. 3.12 Perception of youths on loan facility by Public and Private Sector Bank
120 100 80 60 40 20 0 No Idea Private sector banks Public sector banks

Interpretation : When it comes to perception of providing loans assistance by the public sector banks, 58 percent of samples thought that public sector banks are efficient in providing loan and out of which 22 people preferred accessibility, 13 people thought documentation procedure were speedy, 12 percent people thought rate of interest is low as compared to private sector banks and remaining 9 people believed repayment options were better. Two persons said that public sector banks are efficient in providing loan but they had no idea of reasons. While taking the private banks loan system, field survey shows that 30 percent respondents said that private sector banks are comparatively better in providing loan facility. Out of which 12 people said accessibility, 6 people thought documentation procedure is faster and good, 7 people thought rate of interest is comparatively better, 4 respondents believed that the repayment option provided by the private sector banks are better. One person perceived private sector banks are better in providing credit facility

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but are unaware of the factors. This question was tossed just to know the perception of respondents irrespective of usage.

3.13 Perception of youths on various services of Public Sector Banks

Table No 3.13 Perception of youths on various services of Public Sector Banks Factors Excellent Very Good (3) a. Interest Rate b. Delivery of Services c. Procedure (loan sanction) d. Behaviour of Staff e. Social Awareness Programmes f. Overall Services
Source: Field Survey

Good

Bad

Poor

No

Total

Response No Of (1) 71 56 6 6 (-1) 2 1 (-2) (0) People 100 100

(2) 16 28

5 9

18

38

20

12

100

12

29

38

15

100

11

23

38

26

100

24

67

100

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Chart No 3.13 Perception of youths on various services of Public Sector Banks

Interpretation : Interest Rate Delivery of Procedure Services (Loan Sanction) 1.08

Reference: Annexure

Behaviour of Staff

Social Awareness Programmes

Overall Service

1.31

0.74

1.05

-0.39

1.22

In the feedback asked regarding rate of interest provided by Public Sector Banks on deposits, quality of delivery services, loan sanction procedural and behavioral of staff lies between 1 and 2 (good and very good). So we can say that these factors are good. But in case of creating social awareness public sector banks are not well known, we can rate it as bad (-0.39) as samples were unaware of Social Awareness Programmes conducted by banks. So we can conclude that overall services provided by Public Sector Banks are good.

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3.14 Level of Competency

Table No. 3. 14 Level of Competency No of People Yes No No idea Total
Source: Field Study

65 27 8 100

Chart No. 3.14 Level of competency

120 100 80 60 40 20 0 Yes No No idea Total No of People

Interpretation : Out of 100 respondents, 65 percent of them believed that Private Sector Banks are more competitive than the Public Sector Banks and 27 percent believed public sector banks are more competitive both in providing service delivery and redressing grievances. Eight percent of respondents had no idea about competencies.
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3.15 Loyalty
Table No 3.15 Loyalty No of People Yes No Total
Source: Field Study

61 39 100

Chart No 3.15 Loyalty

120 100 80 60 40 20 0 Yes No Total No of People

Interpretation : People tend to move to alternatives when they are not satisfied partially or completely with their banks. Sixty one percent of samples surveyed where ready to bank with private sector banks if they are required to. It shows that people perceive private sector banks are better in providing banking services than public sector banks. Charges incurred by private sector banks are communicated to be constant to the respondents. This reveals people find some problem with services rendered by Public Sector Bank.
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Findings
The finding of the field surveys are as follows Factors posing choices of Public Sector Banks: From the study we can conclude that youths prefer public sector banks for safety and as a mandatory requirement. People prefer safety, as the banks are owned by the government though the services are just good. Whereas mandatory requirement refers to a persons obligation in order to satisfy minimum criteria for availing government services as well as compensation requirement. For example, passport services, for salary. Loyalty towards Public Sector Banks: Youths also open their bank account in public sector banks. As they think these banks are efficient in providing loans compared to that of private sector banks, the reason here is easy accessibility to loan. Youths perception on modernization of Banking: The modern technological services provided by public sector banks are advanced as far as Indian concern. But the implication of these technologies is inefficient. Though the youth surveyed did not have any problem in making use of modern banking technology, they had obstacle in getting basic requirements for utilizing these services. For example, the debit/ credit cards were not issued on time, though the technology has developed customers must depend on branches directly or indirectly it is suggested that ATMs must be opened in rural areas so that rural youths can bank with machines instead of moving to towns. Customer Satisfaction: The first thing which comes to youths mind with regards to their bank is customer service. In study it is revealed that there is a necessity of improvement in handling grievances as well as behavior of staffs towards them. Because of this factor we can say that youths perceive publics sector banks negatively. Branch Banking cannot be neglected: Even though youths are convenient with the modern banking technology, they still prefer to associate themselves with branch banking. Because some services require branch visits. Example, document submission. Competency: The approached samples were unaware of the social awareness programs undertaken by public sector banks. This state that youth is attracted only
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towards the banking services. Youths perceive that private sector banks are more competent to public sector banks in terms of providing services and redressing grievances. And they also prefer to have account in private sector bank as well.

Suggestions
Based on findings given above, we can suggest that Public Sector Banks must recruit more young people who are capable of using modern technology in banking services and also must be compatible to adapt to the changes in the modern banking. In order to check efficiency of present staffs, banks must conduct workshops once in a year on modern banking services. In order to keep customer at safer side, demo software can be distributed to employees. To check the regularity of bank employees, biometric attendance must be implemented so that banks are available at customer service during work hours. Public Sector Banks must increase number of ATMs in rural regions. This helps youths from villages to undergo cash transactions directly through ATMs rather than moving to banks located in far places.

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Public Sector Banks in India is successful in introducing modern technology in all their branches across the country. Youths are well aware of the usage of this system. But there can be seen a major problem in implication of modern banking services by these banks. Though the customers have adapted these systems, the staffs of these banks failed to. Unless and until these banks provide proper training to their staff about implication of these systems, Public Sector Banks cannot provide quick and efficient banking services to their customers. Financial Inclusion took all over the country, but the people holding accounts are unaware of its benefits. Rural youths having account in public sector banks have to move to towns for using ATM cards. Though they have the knowledge of usage, presence of ATM are rarely found in rural areas. So establishing ATM outlet can help bankers to expand modern banking service. The other factors to be considered here is conduct of staff. Not only training regarding modern banking but also staffs must be trained in order to improve customer service. Modern technology must be implemented in keeping track of employees work pattern and timing. Effective supervision is also required to drive service excellence. There are 26 Public Sector Banks in India and none of these were able to reach the global competitors. Growing concern of customers towards private sector banks and presence of Foreign Banks can hinder growth of Public Sector Banks. They can achieve this fleet of reaching Global grounds only when they implement modern banking services successfully and keep upgrading their technology to reach expectations of their customers.

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 Articles
o A Comparative Study between Public Sector Banks & Private Sector Banks (2011) o Case study on customers preference and satisfaction of four basic banking o A Comparative Analysis of Service Quality in Selected Commercial Banks in Delhi (2009) o Evaluation of technical efficiency and ranking of public sector banks in India (2008)

Websites
o www.equitymaster.com o www.stockshastra.moneyworks4me.com/economic-outlook/indianbanking-industry o www.info.shine.com/Industry-Information/Finance-and-Banking

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Questionnaire
Name Place : :

1. Which bank do you deal with? a. Public Sector Bank b. Private Sector Bank c. Both

2. How long you have been dealing with this Bank? a. Less than 1 year c. 5 to 10 years b.1 to 5 years d. 10 years and above

3. For which of the following reasons do you prefer public sector banks? a. Safety c. Service & Coverage b. Comparative rate of interest d. Proximity

4. Who do you think are the most transparent in their approach (transactions)? a. Public sector banks b. Private sector banks c. No idea

5. When you think of your bank (Public Sector), what comes first in your mind? a. Personalized service c. Customer service b. Wide branch network d. Core banking

6. Is 10 minutes window service provided by public sector banks effective? a. Yes b. No c. No idea

7. How is the behavior of staff of public sector banks towards customer? a. Excellent c. Satisfactory b. Good d. Poor
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8. How does your bank communicate the new norms laid down by RBI regarding banking services and charges? a. Send notice as on date c. Communicate on visit b. Notify some days later d. Never notice

9. Which mode you prefer the most to bank with? a. Internet banking c. SMS banking b. Mobile banking d. Branch banking

10. Did you face any problems while using the products of modern banking technology? a. Yes c. Yes, but got solved immediately b. No d. Needs time to learn

11. Has your debit/credit card issue, if any, been addressed on time? a. Yes b. No c. Never applicable

12. How the grievances are addressed by bank officials and other authorities? a. Respond but late b. Quick response and solve c. Never respond

13. Who do you think is more efficient in providing credit facility to customers? a. Public sector banks b. Private sector banks c. No idea

14. Why do you think Public/ Private sector banks are efficient in providing credit facilities? a. Accessibility c. Rate of interest b. Documentation procedures d. Repayment options

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15. Rate the following Factors a. Interest rate b. Delivery of services c. Procedure (loan sanction) d. Behaviour of bank staffs e. Social Awareness Programmes f. Overall Service Excellent Very Good Good Bad Poor

16. Do you believe the level of competency (both in service delivery and redressing grievances) is higher in private sector banks compared to public sector banks? a. Yes b. No c. No idea

17. Having operated in a public sector bank do you prefer to open a bank account in Private Sector bank? a. Yes 18. Any suggestion for improvement b. No

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Working Note
Interpretation 3.13 Interest Rate 5*3+16*2+71*1+6*(-1)+2*(-2)/100= 1.08

Delivery of Services 9*3+28*2+56*1+6*(-1)+1*(-2)/100= 1.31 Procedure (LS) Behavior of Staff Social Awareness Overall Service 9*3+18*2+38*1+20*(-1)+3*(-2)/100= 0.74 12*3+29*2+38*1+15*(-1)+6*(-2)/100= 1.05 2*3+11*2+23*1+38*(-1)+26*(-2)/100= -0.39 4*3+24*2+67*1+5*(-1)/100= 1.22

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