CHAPTER: 1 INTRODUCTION A study on SST: To examine customers pre erence o !an" or usin# SST ser$ices as c%assi ied !

y R&I 1'1 Introduction o t(e topic: In the era of globalization and with the increasing competition in all the fields around the world many companies have modified their strategies so they can reach their customers around the world easier and cheaper. However the rapid growth of systems that rely on electronic technology - especially those relating to the Internet and personal computer led to a significant change in the exchanging of products and services. Many Service organizations have adopted modern technology to reduce costs and enhance customer service quality delivery and standardize core service offerings. In addition a lot of non-ban!ing companies entered the ban!ing industry by offering products and financial services giving the customers a lot of options and alternatives to carry out their ban!ing transactions this difficulty of the business process in the financial sector forces the ban!s to develop an alternative technological channel to attract customers and improve their perception. "he rapid technological diffusion ma!es the SS" the best way to provide customers with ban!ing services regardless of the limits of time and geography. #nd that$s what ma!es ban!s consider the SS" services as an important part of their strategic plans. In particular ban!s have enthusiastically adopted self-service technologies %SS"s& of various types including automated teller machines %#"Ms& internet ban!ing %I'& and mobile ban!ing %M'& ( all of which can be utilized by consumers independently of any need for interaction with ban! employees. )espite the many benefits provided by this service to the ban! and its customers it remains a double-edged sword and not used by every customer because the increasing distance between the ban! and customers may lead to lac! of confidence and an increasing in security concerns. #s a result the quality of SS" services become an important area of attention among the researchers and ban!s managers due to its strong influence on the business performance lower costs customer satisfaction customer loyalty and profitability.

"he main ob+ective of this study is to focus on the importance of understanding the customer$s awareness and the factors that influences the adoption off SS" and ma+or factors affecting the adoption of SS" services in #hmedabad region. 1') De inition and purpose o t(e topic "he main purpose of the study is to examine that the customers preference of ban! for using SS" services as classified by ,'I and study also focuses on the satisfaction level of SS" users and tries to find out the ma+or factors affecting the adoption of SS" services. "his study also focuses on the ma+or problems handled by the SS" users and also try to analyze the main factors are influencing the customers to not using the SS" services. 1'* O!+ecti$es o t(e study: "o study the awareness level of people regarding SS". "o find out the factors that influences the adoption of SS" services. "o measure the satisfaction level of SS" users. "o understand the problems encountered in by service class people while using SS"services. "o find out the reasons for not using SS" services. "o determine the ban! preference of customer for using the SS" Services. 1', Scope o t(e topic: 'an!ing industry was selected in this study because of this industry have a significant presence in both online and offline medium and are commonly used by a large segment of consumer. "his study focuses on consumers- initial trial of ban!s self-service technologies and their propensities to use these service-based technologies. "he sub+ect of this study is restricted to retails ban!ing customer-s trial of Internet ban!ing at the self-service technology. "his study helps in finding out the satisfaction . preference of ban! of SS" users in #hmedabad area "his also helps in finding the customer awareness about SS" services provided by the ban!s. /

 "he study provides !nowledge of factors which influence the customers to use SSt services. "he study provides !nowledge of factors that are affecting the adoption of SS" services. "his study also helps to !now the ma+or problems that SS" users are currently facing. "his study also helps to !now the customer preference of ban! for using the SS" services.

CHAPTER-) INDUSTR./CO0PAN. O1ER1IE2

)'1 &an"in# Structure in India: # ban! is a financial institution that provides ban!ing and other financial services to their 1ustomers. # ban! is generally understood as an institution which provides fundamental ban!ing services such as accepting deposits and providing loans. "here are also nonban!ing institutions that provide certain ban!ing services without meeting the legal definition of a ban!. 'an!s are a subset of the financial services industry. # ban!ing system also referred as a system provided by the ban! which offers cash management services for customers reporting the transactions of their accounts and portfolios throughout the day. "he ban!ing system in India should not only be hassle free but it should be able to meet the new challenges posed by the technology and any other external and internal factors. 2or the past three decades India-s ban!ing system has several outstanding achievements to its credit. "he 'an!s are the main participants of the financial system in India. "he 'an!ing sector offers several facilities and opportunities to their customers. #ll the ban!s safeguards the money and valuables and provide loans credit and payment services such as chec!ing accounts money orders and cashier-s cheques. "he ban!s also offer investment and insurance products. #s a variety of models for cooperation and integration among finance industries have emerged some of the traditional distinctions between ban!s insurance companies and securities firms have diminished. In spite of these changes ban!s continue to maintain and perform their primary role3accepting deposits and lending funds from these deposits. )') Need o t(e &an"s: 'efore the establishment of ban!s the financial activities were handled by money lenders and individuals. #t that time the interest rates were very high. #gain there were no security of public savings and no uniformity regarding loans. So as to overcome such problems the organized ban!ing sector was established which was fully regulated by the government. "he organized ban!ing sector wor!s within the financial system to provide loans accept deposits and provide other services to their customers.

"he following functions of the ban! explain the need of the ban! and its importance4 "o provide the security to the savings of customers. "o control the supply of money and credit

 "o encourage public confidence in the wor!ing of the financial system increase savings speedily and efficiently. "o avoid focus of financial powers in the hands of a few individuals and institutions. "o set equal norms and conditions %i.e. rate of interest period of lending etc& to all types of customers. )'* HISTOR. O3 &AN4IN5: "he ban!ing in India originated with the introduction of barter system4 )'*'1 &arter System Man was animals in the dawn of history simple . self-sufficient. He lived in caves !illed when hungry and he had no other wants. #s time passed men began living in

villages and started to till the ground. 6ften the produce of a farmer-s fields was more that he required. Similarly a fisherman often caught more than his family required. In the ideal situation the farmer would exchange his produce for fish with the fisherman. "his exchange is !nown as barter. #nd in the ideal world they would both be content. However a complication could and would arise if the farmer did not require or want fish. If the farmer required a plough and the smith requires steel there would be tremendous and horrendous that the barter system surrendered to difficulty in matching those that individuals had with that which they needed. #nd it was on account of this difficulty of meeting needs money. )'*') 0oney System Money was created or rather born to reduce the value of the items people had to a common denominator to facilitate exchange of products to satisfy needs. "he fisherman would sell his fish as would the farmer for money. "he farmer would then armed with the money he has in hand purchase a plough. "he fisherman with the money he has received would buy the food he needs for his family. "he earliest form of money was bones on which mar!s were made to distinguish between values. Metals then began to be used ( the most popular being gold silver and bronze. Symbols sizes and signs on these differed from time to time and from country to country. #s men began to travel from country to country to exchange goods and to trade ban!ing was born. "he term money is derived from the temple of 78uno Moneta9 which was used by the ,omans as a mint for their coins.

)', 6ourney o !an"in# ;ithout a sound and effective ban!ing system in India it cannot have a healthy economy. "he ban!ing system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. "he government$s regular policy for Indian ban! since *<=< has paid rich dividends. "he first ban! in India though conservative was established in *>?=. 2rom *>?= till today the +ourney of Indian 'an!ing System can be segregated into three distinct phases. )','1 P(ase 1 "he

@eneral 'an! of India was set up in the year *>?=. Aext came 'an! of Hindustan and 'engal 'an!. In *?=: #llahabad 'an! was established and first time exclusively by Indians Bun+ab Aational 'an! Ctd. was set up in *?<5 with headquarters at Cahore. "here were approximately **DD ban!s mostly small. "o streamline the functioning and activities of commercial ban!s the @overnment of India came up with "he 'an!ing 1ompanies #ct *<5< which was later changed to 'an!ing ,egulation #ct *<5< as per amending #ct of *<=: %#ct Ao. /0 of *<=:&. ,eserve 'an! of India was vested with extensive powers for the supervision of ban!ing in India as the 1entral 'an!ing #uthority. )uring those day-s public has lesser confidence in the ban!s. #breast of it the savings ban! facility provided by the Bostal department was comparatively safer. )',') P(ase ) @overnment too! ma+or steps in this Indian 'an!ing Sector ,eform after independence. In *<:: it nationalized Imperial 'an! of India with extensive ban!ing facilities on a large scale especially in rural and semi-urban areas. It formed State 'an! of India to act as the principal agent of ,'I and to handle ban!ing transactions of the Enion and State @overnments all over the country. Second phase of nationalization Indian 'an!ing Sector ,eform was carried out in *<?D with seven more ban!s. "his step brought ?DF of the ban!ing segment in India under @overnment ownership. *5 ma+or commercial ban!s in the country were nationalized. #fter the nationalization of ban!s the branches of the public sector ban! India rose to approximately ?DDF in deposits and advances too! a huge +ump by ** DDDF. 'an!ing in the sunshine of @overnment ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. )','* P(ase * "his phase has introduced many more products and facilities in the ban!ing sector in its =

reforms measure. In *<<* under the chairmanship of M Aarasimham a committee was set up by his name which wor!ed for the liberalization of ban!ing practices. "he country is flooded with foreign ban!s and their #"M stations. Gfforts are being put to give a satisfactory service to customers. Bhone ban!ing and net ban!ing is introduced. "he entire system became more convenient and swift. "ime is given more importance than money. "he ban!ing industry has moved gradually from a regulated environment to a deregulated mar!et economy. "he mar!et developments !indled by liberalization and globalization have resulted in changes in the intermediation role of ban!s. "he pace of transformation has been more significant in recent times with technology acting as a catalyst. ;hile the ban!ing system has done fairly well in ad+usting to the new mar!et dynamics greater challenges lie ahead.

)'7 THE &AN4IN5 S.STE0 IN INDIA

"he

,eserve 'an! of India the nation-s central ban! began operations on #pril D* *<0:. It was established with the ob+ective of ensuring monetary stability and operating the currency and credit system of the country to its advantage. 1urrently the Indian ban!ing industry has a diverse structure. "he present structure of the Indian ban!ing industry has been analyzed on the basis of its organized status business as well as product segmentation.

>

3i#')'1 &an"in# Structure in India In India the ban!s are being segregated in different groups. Gach group has their own benefits own dedicated target mar!ets limitations in operating in India. "he commercial ban!ing structure in India consists of Scheduled 1ommercial 'an!s and Enscheduled 'an!s. )'7'1 Or#anisationa% Structure "he entire organised ban!ing system comprises of scheduled and non-scheduled ban!s. Cargely this segment comprises of the scheduled ban!s with the unscheduled ones forming a very small component. 'an!ing needs of the financially excluded population is catered to by other unorganised entities distinct from ban!s such as moneylenders pawnbro!ers and indigenous ban!ers. )'7') Reser$e !an" o India "he ,eserve 'an! of India is the 1entral 'an! of the country whose function is to regulate the issue of 'an! Aotes and !eeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage. )'7'* Sc(edu%ed &an"s # scheduled ban! is a ban! that is listed under the second schedule of the ,'I #ct *<05. In order to be included under this schedule of the ,'I #ct ban!s have to fulfill certain conditions such as having a paid up capital and reserves of at least D.: million and satisfying ?

the ,eserve 'an! that its affairs are not being conducted in a manner pre+udicial to the interests of its depositors. Scheduled ban!s are further classified into commercial and cooperative ban!s. "he basic difference between scheduled commercial ban!s and scheduled cooperative ban!s is in their holding pattern. Scheduled cooperative ban!s are cooperative credit institutions that are registered under the 1ooperative Societies #ct. "hese ban!s wor! according to the cooperative principles of mutual assistance. )'7', Sc(edu%ed Commercia% &an"s 8SC&s9 Scheduled

commercial ban!s %S1's& account for a ma+or proportion of the business of the scheduled ban!s. #s at end-March /DD< ?D S1's were operational in India. S1's in India are categorized into the five groups based on their ownership andHor their nature of operations. State 'an! of India and its six associates %excluding State 'an! of Saurashtra which has been merged with the S'I with effect from #ugust *0 /DD?& are recognised as a separate category of S1's because of the distinct statutes %S'I #ct *<:: and S'I Subsidiary 'an!s #ct *<:<& that govern them. Aationalised ban!s %*D& and S'I and associates %>& together form the public sector ban!s group and control around >DF of the total credit and deposits businesses in India. I)'I ltd. has been included in the nationalised ban!s group since )ecember /DD5. Brivate sector ban!s include the old private sector ban!s and the new generation private sector ban!s- which were incorporated according to the revised guidelines issued by the ,'I regarding the entry of private sector ban!s in *<<0. #s at end-March /DD< there were *: old and > new generation private sector ban!s operating in India. 2oreign ban!s are present in the country either through complete branchHsubsidiary route presence or through their representative offices. Aow 5* foreign ban!s were operating in India with 0// branches. )'7'7 Pu!%ic Sector &an"in# "he public sector is the one whose wor!ing is in the hands of the @overnment. "he @overnment holds a ma+ority sta!e in public sector. 'ut due to privatization of public sector their number has been reduced to a significant extent. It may be defined as an enterprise where there is no private ownership but its activities are not mainly confined to the maximization of profits and private interests of the enterprise but it is influenced by social interests.

)'7': Pri$ate Sector &an"s <

Brivate 'an!s are ban!s that are not incorporated # non-incorporated ban! is owned by either an individual or a general partner%s& with limited partner%s&.

)'7';

3orei#n &an"s

2oreign ban! means a ban!ing institution incorporated or organized under the laws of another country or a political subdivision of a country other than the Enited States that is4 ,egulated as such by that country$s or subdivision$s government or any agency thereofI Gngaged substantially in commercial ban!ing activity. Aot operated for the purpose of evading the provisions of the #ct. )'7'< Re#iona% Rura% &an"s ,ural ban!ing in India started since the establishment of ban!ing sector in India. ,ural 'an!s in those days mainly focussed upon the agro sector. ,egional rural ban!s in India penetrated every corner of the country and extended a helping hand in the growth process of the country. Aational 'an! for #griculture and ,ural )evelopment %A#'#,)& is a development ban! in the sector of ,egional ,ural 'an!s in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture small scale industries cottage and village industries handicrafts. It helps in securing rural prosperity and its connected matters. )'7'= Sc(edu%ed Cooperati$e &an"s Scheduled cooperative ban!s in India can be broadly classified into urban credit cooperative institutions and rural cooperative credit institutions. ,ural cooperative ban!s underta!e long term as well as short term lending. 1redit cooperatives in most states have a three tier structure %primary district and state level& )'7'1> Non-Sc(edu%ed &an"s Aon-

scheduled ban!s also function in the Indian ban!ing space in the form of Cocal #rea 'an!s %C#'&. Cocal area ban!s are ban!s that are set up under the scheme announced by the government of India in *<<= for the establishment of new private ban!s of a local natureI with +urisdiction over a maximum of three contiguous districts. C#'s aid in the mobilisation *D

of funds of rural and semi urban districts. Six C#'s were originally licensed but the license of one of them was cancelled due to irregularities in operations and the other was amalgamated with 'an! of 'aroda in /DD5 due to its wea! financial position. )': &USINESS DI1ISION

3i#')') &usiness di$ision o !an"in# industry )':'1 Retai% !an"in# It

includes exposures to individuals or small businesses. ,etail ban!ing activities are identified based on four criteria of orientation granularity product criterion and low value of individual exposures. In essence these qualifiers imply that retail exposures should be to individuals or small businesses %whose annual turnover is limited to ,s. D.:D billion& and could ta!e any form of credit li!e cash credit overdrafts etc. ,etail ban!ing exposures to one entity is limited to the extent of D./F of the total retail portfolio of the ban! or the absolute limit of ,s. :D million. ,etail ban!ing products on the liability side includes all types of deposit accounts and mortgages and loans %personal housing educational etc& on the assets side of ban!s. It also includes other ancillary products and services li!e credit cards demat accounts etc.

**

"he retail portfolio of ban!s accounted for around /*.0F of the total loans and advances of S1's as at end-March /DD<. "he ma+or component of the retail portfolio of ban!s is housing loans followed by auto loans. ,etail ban!ing segment is a well diversified business segment. Most ban!s have a significant portion of their business contributed by retail ban!ing activities. "he largest players in retail ban!ing in India are I1I1I 'an! S'I BA' '6I H)21 and 1anara 'an!. #mong the large ban!s I1I1I ban! is a ma+or player in the retail ban!ing space which has had definitive strategies in place to boost its retail portfolio. It has a strong focus on movement towards cheaper channels of distribution which is vital for the transaction intensive retail business. S'I-s retail business is also fast growing and a strategic business unit for the ban!. #mong the smaller ban!s many have a visible presence especially in the auto loans business. #mong these ban!s the reliance on their respective retail portfolio is high as many of these ban!s have advance portfolios that are concentrated in certain usages such as auto or consumer durables. 2oreign ban!s have had a somewhat restricted retail portfolio till recently. However they are fast expanding in this business segment. "he retail ban!ing industry is li!ely to see a high competition scenario in the near future. )':') 2(o%esa%e !an"in# ;holesale ban!ing includes high tic!et exposures primarily to corporates. Internal processes of most ban!s classify wholesale ban!ing into mid corporates and large corporates according to the size of exposure to the clients. # large portion of wholesale ban!ing clients also account for off balance sheet businesses. Hedging solutions form a significant portion of exposures coming from corporates. Hence wholesale ban!ing clients are strategic for the ban!s with the view to gain other business from them. Jarious forms of financing li!e pro+ect finance leasing finance finance for wor!ing capital term finance etc form part of wholesale ban!ing transactions. Syndication services and merchant ban!ing services are also provided to wholesale clients in addition to the variety of products and services offered. ;holesale ban!ing is also a well diversified ban!ing vertical. Most ban!s have a presence in wholesale ban!ing. 'ut this vertical is largely dominated by large Indian ban!s. ;hile a large portion of the business of foreign ban!s comes from wholesale ban!ing their mar!et share is still smaller than that of the larger Indian ban!s. # number of large private players among Indian ban!s are also very active in this segment. #mong the players with the largest footprint in the wholesale ban!ing space are S'I I1I1I 'an! I)'I 'an! 1anara 'an! */

'an! of India Bun+ab Aational 'an! and 1entral 'an! of India. 'an! of 'aroda has also been exhibiting quite robust results from its wholesale ban!ing operations. )':'* Treasury Operations "reasury operations include investments in debt mar!et %sovereign and corporate& equity mar!et mutual funds derivatives and trading and forex operations. "hese functions can be proprietary activities or can be underta!en on customer-s account. "reasury operations are important for managing the funding of the ban!. #part from core ban!ing activities which comprises primarily of lending deposit ta!ing functions and servicesI treasury income is a significant component of the earnings of ban!s. "reasury deals with the entire investment portfolio of ban!s %categories of H"M #2S and H2"& and provides a range of products and services that deal primarily with foreign exchange derivatives and securities. "reasury involves the front office %dealing room& mid office %ris! management including independent reporting to the asset liability committee& and bac! office %settlement of deals executed statutory funds management etc&. )':', Ot(er &an"in# &usinesses "his

is considered as a residual category which includes all those businesses of ban!s that do not fall under any of the aforesaid categories. "his category includes para ban!ing activities li!e hire purchase activities leasing business merchant ban!ing factoring activities etc. )'; S2OT ANA?.SIS )';'1 STREN5THS Jaluable contributor to @)B ,egulatory environment @overnment Support )';') 2EA4NESSES Increasing AB# Cow penetration Cac! of product differentiation

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)';'* OPPORTUNITIES Modern "echnology Entapped ,ural Mar!et @lobalization )';', THREATS Enorganized money lending mar!et 1ustomer dissatisfaction ,ise of monopolistic structures )'< PORTER@S 3I1E 3ORCES 0ODE? 'an!ing is mainly a client oriented business. # high-quality of services to the client is crucial for the growth and stability of any ban!. # wider distribution and access of financial services helps both consumers and producers to raise their welfare and productivity. Such access is especially powerful for the poor as it provides them opportunities to build savings ma!e investments avail credit and more important insure themselves against income shoc!s and emergencies. "o survive in an increasingly competitive environment ban! need to come up with various facilities li!e Internet ban!ing mobile ban!ing etc. ;ith the onset of mobile ban!ing the industry finds itself at the threshold of the next ma+or technological leap.

*5

3i# )'* Porter@s i$e mode% p !an"in# industry Buyer Power - Hi#( bargaining power of customer-s on account of ban!s renders uniform services to the clients. Aow a day-s almost all ban!s would li!e to provide requisite information very easily by way to Internet Mobile ban!ing to the clients Supplier Power- ?oA bargaining power of supplier-s on account of ,'I regulatory benchmar!s. 'an!s have to meet numerous regulatory standards created by ,'I Competitive Rivalry- Hi#( competition of account of number of prominent public private foreign along with cooperative ban!s Availability of Substitutes - Hi#( menace from substitutes li!e A'21-s Mutual funds @overnment securities and "-bills Threat of new entrants - ?oA threat of new entrants on account of ban!ing regulations. 'efore setting up of a new ban! it is essential to ta!e the consent of ,'I. )'= 3actors promotin# #roAt( o &an"in# sector in India "he ban!ing sector is highly correlated with the economy of the country. "he @)B growth is estimated at >.= per cent for the financial year /D*0 so the economy is expected to recover and be bac! on the growth trac! in the financial year /D*0. "his will also result in the ban!ing space witnessing a spurt in growth in business next fiscal. Increasing disposable income and increasing exposure to a range of products have led consumers towards a higher willingness to ta!e credit particularly young customers. Increasing spread of mobile ban!ing which is expected to become the second largest channel for ban!ing after #"Ms will accelerate growth of the sector. 2inancial Inclusion Brogram4 1urrently in India 5*F of the adult population don-t have ban! accounts which indicate a large untapped mar!et for ban!ing players. Ender the 2inancial Inclusion Brogram ,'I is trying to tap this untapped mar!et and the growth potential in rural mar!ets by volume growth for ban!s. 1urrently there are many challenges before Indian 'an!s such as improving capital adequacy requirement managing non-performing assets enhancing branch sales . services improving organisation designI using innovative technology through new channels and wor!ing on lean operations. #part from this frequent changes in policy rates to maintain economic stability various regulatory requirements etc. are additional !ey concerns. )espite these concerns we expect that the Indian ban!ing industry will grow through leaps and bounds loo!ing at the huge growth potential of Indian economy. High population base of India mobile ban!ing ( *:

offering ban!ing operations through mobile phones financial inclusion rising disposable income etc. will drive the growth Indian ban!ing industry in the long-term. "he Indian economy will require additional ban!s and expansion of existing ban!s to meet its credit needs )'1> CO0PAN.@S PRO3I?E Gstablished in *<?5 "he Kota! Mahindra @roup has long been one of India-s most reputed financial organizations. In 2eb /DD0 Kota! Mahindra 2inance Ctd. the group-s flagship company was given the license to carry on ban!ing business by the ,eserve 'an! of India %,'I&. "his approval creates ban!ing history since Kota! Mahindra 2inance Ctd is the first company in India to convert into a ban!. "he license authorizing the ban! to carry on ban!ing business has been obtained from the ,'I in tune with Section // of the 'an!ing ,egulation #ct *<5<. "he Kota! Mahindra @roup was born in *<?: as Kota! 1apital Management 2inance Cimited. Kota! Mahindra 'an! Ctd. was promoted by Mr. Eday.S.Kota! Kota! and 1ompany Ctd and Mr. Sidney . #.Binto under the name of Kota! 1apital Management 2inance Ctd on /*st Aov *<?: and obtained a 1ertificate of 1ommencement of 'usiness on **th 2eb *<?=. Industrialists Harish Mahindra and #nand Mahindra too! a sta!e in *<?= and that$s when the company changed its name to Kota! Mahindra 2inance Cimited. Since then it$s been a steady and confident +ourney to growth and success. 1=<:: Kota! Mahindra 2inance Cimited starts the activity of 'ill )iscounting 1=<;: Kota! Mahindra 2inance Cimited enters the Cease and Hire Burchase mar!et 1==>: "he #uto 2inance division is started 1==1: "he Investment 'an!ing )ivision is started. "a!es over 2I16M one of India-s largest financial retail mar!eting networ!s 1==): Gnters the 2unds Syndication sector 1==7: 'ro!erage and )istribution businesses incorporated into a separate company - Kota! Securities. Investment 'an!ing division incorporated into a separate company - Kota! Mahindra 1apital 1ompany

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1==:: "he #uto 2inance 'usiness is hived off into a separate company - Kota! Mahindra Brime Cimited %formerly !nown as Kota! Mahindra Brimus Cimited&. Kota! Mahindra ta!es a significant sta!e in 2ord 1redit Kota! Mahindra Cimited for financing 2ord vehicles. "he launch of Matrix Information Services Cimited mar!s the @roup$s entry into information distribution. 1==<: Gnters the mutual fund mar!et with the launch of Kota! Mahindra #sset Management 1ompany. )>>>: Kota! Mahindra tied up with 6ld Mutual plc. for the Cife Insurance business. Kota! Securities launched its on-line bro!ing site. 1ommencement of private equity activity through setting up of Kota! Mahindra Jenture 1apital 2und.

)>>*: Kota! Mahindra 2inance Ctd. 1onverts to ban!. )>>,: Caunched India @rowth 2und a private equity fund. )>>7: Kota! @roup realigned +oint venture in 2ord 1reditI their sta!e in Kota! Mahindra Brime was bought out %formerly !nown as Kota! Mahindra Brimus Ctd& and Kota! group-s sta!e in 2ord credit Kota! Mahindra was sold. Caunched a real estate fund.

)>>:: 'ought the /:F sta!e held by @oldman Sachs in Kota! Mahindra 1apital 1ompany and Kota! Securities. )>><: Caunched a Bension 2und under the Aew Bension System. )>>=: Kota! Mahindra 'an! Ctd. opened a representative office in )ubai. Gntered #hmedabad 1ommodity Gxchange as anchor investor.

)>1>: #hmedabad )erivatives and 1ommodities Gxchange a Kota! anchored enterprise became operational as a national commodity exchange. )>11: Kota! Mahindra 'an! Ctd entered into a 'usiness 1ooperation arrangement with 1IM' @roup Sdn 'hd Malaysia.

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0r' Uday 4ota"B' 3ounder o t(e 4ota" #roup

Mr. Eday Kota! '.1om. MMS aged :0 years is the Gxecutive Jice-1hairman and Managing )irector of the 'an! and is its principal founder and promoter. 6ver the past /: years he has successfully built a well-!nit team of high quality professionals who have been given independent charge of various businesses in Kota! Mahindra group. He was responsible for starting the business as a start-up venture in a limited range of activities and then building it up into a full financial services group many of the constituents of which are among the leading players in their respective fields. He is on the 'oard of the Indian 1ouncil for ,esearch on International Gconomic ,elations %I1,IG,&. )'1>'1 4ey #roup companies and t(eir !usinesses Kota! Mahindra is one of India$s leading ban!ing and financial services groups offering a wide range of financial services that encompass every sphere of life.

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)'1>'1') 4ota" 0a(indra &an" ?td Kota! Mahindra 'an! Ctd is a one stop shop for all ban!ing needs. "he ban! offers personal finance solutions of every !ind from savings accounts to credit cards distribution of mutual funds to life insurance products. Kota! Mahindra 'an! offers transaction ban!ing operates

lending verticals manages IB6s and provides wor!ing capital loans. Kota! has one of the largest and most respected ;ealth Management teams in India providing the widest range of

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solutions to high net worth individuals entrepreneurs business families and employed professionals.

)'1>'1'* 4ota" 0a(indra O%d 0utua% ?i e Insurance ?td Kota! Mahindra 6ld Mutual Cife Insurance Ctd is a >54/= +oint venture between Kota! Mahindra 'an! Ctd. its affiliates and 6ld Mutual plc. # 1ompany that combines its international strengths and local advantages to offer its customers a wide range of innovative life insurance products helping them ta!e important financial decisions at every stage in life and stay financially independent. "he company covers over 0 million lives and is one of the fastest. )'1>'1', 4ota" Securities ?td Kota! Securities is one of the largest bro!ing houses in India with a wide geographical reach. Kota! Securities operations include stoc! bro!ing and distribution of various financial products including private and secondary placement of debt equity and mutual funds. Kota! Securities operate in five main areas of business4 Stoc! 'ro!ing %retail and institutional& )epository Services Bortfolio Management Services )istribution of Mutual 2unds )istribution of Kota! Mahindra 6ld Mutual Cife Insurance Ctd products )'1>'1'7 4ota" 0a(indra Capita% Company 840CC9 Kota! Investment 'an!ing %KM11& is a full-service investment ban! in India offering a wide suite of capital mar!et and advisory solutions to leading domestic and multinational corporations ban!s financial institutions and government companies. "heir services encompass Gquity . )ebt 1apital Mar!ets M.# #dvisory Brivate Gquity #dvisory ,estructuring and ,ecapitalization services Structured 2inance services and Infrastructure #dvisory . 2und Mobilization. /D

)'1>'1': 4ota" 0a(indra Prime ?td 840P?9 Kota! Mahindra Brime Ctd is among India$s largest dedicated passenger vehicle finance companies. KMBC offers loans for the entire range of passenger cars multi-utility vehicles and pre-owned cars. #lso on offer are inventory funding and infrastructure funding to car dealers with strategic arrangements via various car manufacturers in India as their preferred financier. )'1>'1'; 4ota" Internationa% &usiness Kota! International 'usiness specialises in providing a range of services to overseas customers see!ing to invest in India. 2or institutions and high net worth individuals outside India Kota! International 'usiness offers asset management through a range of offshore funds with specific advisory and discretionary investment management services )'1>'1'< 4ota" 0a(indra Asset 0ana#ement Company ?td 840A0C9 Kota! Mahindra #sset Management 1ompany offers a complete bouquet of asset management products and services that are designed to suit the diverse ris! return profiles of each and every type of investor. KM#M1 and Kota! Mahindra 'an! are the sponsors of Kota! Mahindra Bension 2und Ctd which has been appointed as one of six fund managers to manage pension funds under the Aew Bension Scheme. )'1>'1'= 4ota" Pri$ate ECuity 5roup 84PE59 Kota! Brivate Gquity @roup helps nurture emerging businesses and mid-size enterprises to evolve into tomorrow$s industry leaders. ;ith a proven trac! record of helping build companies KBG@ also offers expertise with a combination of equity capital strategic support and value added services. ;hat differentiates KBG@ is not merely funding companies but also having a close involvement in their growth as board members advisors strategists and fund-raisers. )'1>'1'1> 4ota" Rea%ty 3und Kota! ,ealty 2und deals with equity investments covering sectors such as hotels I" par!s residential townships shopping centres industrial real estate health care retail education and property management. "he investment focus here is on development pro+ects and enterprise level investments both in real estate intensive businesse /*

)'11 &oard o Directors

//

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)'1) Product Ran#e Kota! Mahindra 'an! is one of the prominent subsidiaries of Kota! Mahindra group. "he activities of the company being parallel to its ob+ective are very wide and cover all the components of a 'an!. "he 'asic area of 6perations is the 'an!ing business other products are meant for the regular revenue generation. 'eing a 'an!ing house the company is in regular touch with 'an!ing #ccounts Investment Services 1onvenience 'an!ing and 6ther Services. "hey offer complete solutions that address all customer-s financial requirements whether heHshe is an individual or a firm. 2rom everyday ban!ing to long term investments 3 their offering covers it all. "his wide range of products is delivered to you with a genuine understanding of your specific need and warm personalized service. Kota! Mahindra 'an! it$s not about selling too many different products to people but it$s about wor!ing out a holistic pragmatic solution that addresses your financial needs. "hrough their varied products they commit themselves to becoming 7ban!er9 to the customer rather than being 7asset financier9 to their customers. )'1)'1&an"in# Accounts Kota! Mahindra 'an! provides various ban!ing services as4

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)'1)'1')

SA1IN5S ACCOUNT

Earn risk free returns on your savings K6"#K M#HIA),# 'an! has got a variety of options of savings accounts to choose from for its customers according to their convenience and requirements ."hese savings accounts offer attractive returns along with personalized ban!ing services at three convenient average quarterly balances %#L'& levels of4 ,s. *DDDD %K6"#K G)@G S#JIA@S #116EA"& ,s. /DDDD %K6"#K B,6 S#JIA@S #116EA"& and at ,s :DDDD%K6"#K #1G S#JIA@S #116EA"& "he average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. )'1)'1')'1 ED5E SA1IN5S ACCOUNT: Kota! Mahindra 'an!Ms Gdge Savings #ccount is a complete financial pac!age customized to suit individual ban!ing needs. Its constant endeavour is to enable regular financial transactions through online platform so that most of payments can be made directly through your account or card. 3eatures D &ene its 2ree access to all Kota! Mahindra 'an! JIS# #"Ms. Multiple #ccess 1hannels #ccess 2ree AG2" through net ban!ing 2ree #t-par cheques 2ree 1lassic )ebit 1ard for *st year

)'1)'1')') PRO SA1IN5S ACCOUNT:

/:

Kota! Mahindra 'an!Ms Bro Savings #ccount is an account pac!ed with powerful features to provide a superior ban!ing experience at a very comfortable balance requirement. "hey provide a relationship manager who will specifically ta!e care of ban!ing and investment needs. 3eatures D &ene its 2ree #"M access all domestic JIS# #"M networ! 2ree gold debit card for *st year 2ree 1lassic )ebit 1ard 6ne AM1 ;aived Gdge Saving #ccount for any of family memberN 2ree Home ban!ing facility 2ree AG2" through net ban!ing )edicated relationship manager

)'1)'1')'* ACE SA1IN5S ACOUNT: Kota! Mahindra 'an!$s #ce Savings #ccount has been designed as a gateway to a world of financial benefits and privileged ban!ing transactions. "he account carries benefits ranging from personal investment advisory services to concierge services to free ban!ing transactions. 6ne will find that this pac!age of services and privileges is unmatched by any other savings account in the mar!et. 3eatures D &ene its 2ree access at all domestic and international JIS# #"Ms "hree AM1 ;aived Gdge Savings #ccounts for family membersN 2ree ,"@S *:F )iscount on Coc!er ,ent 2ree )emand )rafts %Enlimited at Kota! locations& 2ree @old )ebit 1ard for *st year 2ree add-on and supplementary debit card for *st year Gxtended )ebit 1ard withdrawal limit of ,s. *.>: lac per day through #"M H B6S /=

)'1)'1'* Si%" - T(e Sa$in#Es Pro#ramme or 2omen: Kota! Mahindra 'an! Si%" programme is dedicated to the woman of substance. 'e it the best of offers in finance dining health or lifestyle this account has everything to offer. Si%" is truly a toast to many things which empower women and ma!e you feel special in every way. 4ey 3eatures

'enefits of ;orry-free 'an!ing ,ewards on your Sil! debit card 2inancial Brivileges Gxclusive Brivileges

2(at t(e Si%" Pro#ramme o ers &ene its o 2orry-3ree &an"in# #s a Sil! #ccount Holder Kota! Mahindra 'an! helps you put aside many of your ban!ing worries4

Higher Interest rate @et =F interest p.a. on your Savings #ccount balance over * la!h and :.:F p.a. on balance up to * la!h

Higher returns through #ctivMoney Garn the returns of a term deposit with the freedom to withdraw money anytime +ust li!e in a Savings #ccoun

Hassle-free bill payments 'ill Bay facility4 Ese our 'illBay facility for automatic payments of your bills through your ban! account

Safer online transactions @enerate a virtual card for online transactions with 4ota" 5o%d netcFrd facility.

;ealth Statement />

"his facility gives you updates of your Savings #ccount 1urrent #ccount "erm )eposits )emat #ccount and Mutual 2unds all in a single account statement

"ravel cashless Ese Kota! Mahindra 'an!$s Sil! )ebit 1ard and get special offers privileges lifestyle benefits and much more

Home 'an!ing Service Gn+oy services li!e cash pic!-up cash delivery cheque H draft delivery etc. without stepping out of your home. "his service is available in select cities

ReAards on your Si%" De!it Card Spends

=D 2ree movie tic!ets Oou can opt for the option of free monthly Movie "ic!ets at the time of account opening to watch all your favorite movies*

,s 5:DD 1ashbac! ;ith your exclusive Sil! Bhoto )ebit 1ard en+oy attractive 1ashbac! each time you shop/ up to ,s 5:DD0 in a year. Oour Sil! )ebit 1ard offers 1ashbac! across all outlets in the following categories4 *. @rocery /. 8ewellery 0. 2uel 5. Hotel and )ining :. Gntertainment =. Health and 'eauty >. #pparel

3inancia% Pri$i%e#es

AM1 waived Kid$s #ccount

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"he non maintenance charge on the child$s account has been waived off for Sil! customers

)iscount on Coc!ers #s a Sil! customer en+oy a special 0:F discount on Coc!er rentals for the first year

)iscount on 'est 1ompliments 1ard #s a Sil! customer get a :DF discount on the issuance fee on this card

Higher )ebit 1ard ;ithdrawal Cimits ;ith our Kota! Sil! )ebit 1ard spend without worry anywhere anytime. Gn+oy the advantage of higher withdrawal limits with no annual fees on Bro and #ce #ccounts

Exc%usi$e Pri$i%e#es Gxclusive discounts and offers across4

)ining 8ewellery Gntertainment 'eauty Shopping Kids "ravel 1onsumer )urables

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)'1)') CURRENT ACCOUNT GAccount desi#ned or sma%%- mid siHe !usiness or an enterpriseI K6"#K M#HIA),# 'an! offers unparalleled advantages with its three 1urrent #ccount offerings. ;hether smallH mid size business or an enterprise spread across multiple locations in the country would find a 1urrent #ccount that$s +ust designed for you. "hese 1urrent accounts offer attractive returns along with personalized ban!ing services at three convenient average quarterly balances %#L'& levels of4 ,s. /:DDD %K6"#K G)@G 1E,,GA" #116EA"& ,s. :DDDD %K6"#K B,6 1E,,GA" #116EA"& ,s. *DDDDD%K6"#K GCI"G 1E,,GA" #116EA"& and at ,s. /:DDDD%K6"#K #1G 1E,,GA" #116EA"& "he average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. ;ith features ranging from 2ree ))s 2ree 1heque 1ollection 2ree #t -Bar 1heque facility to 2ree "rading #ccount . free )emat #ccount and more. )'1)')'1 Ed#e Current Account

In need of a well equipped ban! account to !eep pace in all the business endeavours. "hey offer the Kota! Gdge 1urrent #ccount armed with Kota! #ctivemoney and the entire gamut of 'an!ing Brivileges providing that extra edge to get ahead. "he feature rich Kota! Gdge 1urrent #ccount is the ideal way to ma!e money wor! harder. 3eatures D &ene its

Kota! #ctivmoney 2ree )emand )raft AG2" . ,"@S 2ree payable at-par cheque boo! 2ree cash )eposit at home branch Home ban!ing Ensecured overdraft facility upto ,s. *D la!hs

0D

)'1)')')

Pro Current account

6ne needs a well equipped ban! account to !eep pace with you in the ever changing business scenario. ;e offer you the Kota! Bro 1urrent #ccount armed with Kota! #ctivmoney as well as an entire gamut of 'an!ing Brivileges and $user-friendly$ 1onvenience 'an!ing facilities. "he feature rich Kota! Bro 1urrent #ccount is the ideal way to ma!e your money wor! harder. 3eatures D &ene its

)edicated ,elationship Manager 2ree )emand )rafts . Bay 6rders 2ree #t Home Services 'etter 2orex rates and Gfficient "rade Services E%ite Current Account

)'1)')'*

#t Kota! Mahindra 'an! they believe that every little thing matters into business. "hat-s why they have brought the Kota! Glite 1urrent #ccount power-pac!ed with exclusive features that can ma!e a remar!able difference to the way one do business. 3eatures D &ene its 2ree )emand )rafts ,"@S AG2" . #t- Bar cheque boo! Kota! #ctivmoney 2ree cash )eposit at home branch 2ree Home ban!ing service 2ree cheque collection Ensecured overdraft facility upto ,s. *D la!hs

)'1)')',

Ace Current Account

In the need of a well equipped ban! account to !eep pace with you in the ever changing business scenario. "hey offer you the Kota! #ce 1urrent #ccount armed with 'usiness

0*

benefits and exclusive #ce Brivileges and an entire gamut of ban!ing conveniences especially designed. "he feature rich Kota! #ce #ccount is the ideal way to ma!e money wor! harder. 3eatures D &ene its 2ree )emand )rafts ,"@S AG2" . #t- Bar cheque boo! Kota! #ctivmoney 2ree cash )eposit at home branch 2ree Home ban!ing service 2ree cheque collection . free cheque returns Ensecured overdraft facility upto ,s. *D la!hs

)'1*

Term Deposits

Kota! Mahindra 'an! term deposit offer attractive returns on term deposits and investing in it is simple and convenient for customer. 4ey 3eatures

Gase and convenience of operation Ciquidity through overdraft or sweep-in facility Ao penalty on pre-mature encashment Aomination facility available

3eatures D &ene its Ease and con$enience o operation

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#n existing customer can place a term deposit through Bhone 'an!ing or Aet 'an!ing. ;hat$s more one can even renew this deposit by placing an instruction over phone. Aeedless to mention he can do all this and more by wal!ing across into any of branches. ?iCuidity t(rou#( o$erdra t or sAeep-in aci%ity )eposit will be available to customer in case of an emergency. 6ne can avail upto ?:F overdraft against term by paying /F above deposit rate. "his facility is available for deposits above ,s.:DDDD for a tenure of *?* days or more. 6ne can also choose to lin! term deposit to savings H current account whereby if need be term deposit will automatically be encashed to meet withdrawal requirement. No pena%ty on pre-mature encas(ment In case term deposit is pre-maturely encashed one will earn interest at the rate prevailing on the date of deposit for the withdrawn amount. Nomination aci%ity a$ai%a!%e 6ne can avail this facility for each . every account that open with us i.e. nominate different persons for different term deposit accounts can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit.

)'1, S2OT ANA?.SIS: )'1,'1 Stren#t(: 00

 "he Mahindra group is a one of the largest institution in India.

Kota! Mahindra ban! has been rewarded with KM' among Hewitt-s 7top /: best employers this depicts the actual performance of the organization in terms of efficiency9

"he ban! small boo! size which helps it to sustain the growth of the company . provide better return to the customer.

)istribution channel of the ban! is wide so ban! has been reached more than *?/ cities.

KM' offers the most flexible . unique products such as global debit card acti money )irect pay service . payment gateway for online shopping.

)'1,') 2ea"ness: Kota! Mahindra ban! does not spend more time in mar!eting it may be a reason for not being mar!et leader in private ban!s. Kota! mahindra ban! has an average quarterly maintenance of some particular amount according to its different product variant which some time leads to customer dissatisfaction and customer can go for government ban! rather than any private ban!. Kota! Mahindra ban! has not sufficient branches and #"M.

)'1,'* Opportunities:

05

 "he whole mar!et is a land of niche segment for opening an account deposits borrowings and insurance so !ota! Mahindra is at par with all other private companies. It-s an equal competition for all private ban!s to perform well in mar!et. "his is an opportunity to ma!e a bench mar! in rural area.

"he !ota! is a big brand name and that-s an opportunity to grow their insurance business as well as increase their distribution channel. Kota! has a very good goodwill if they target the customer of each company of their group.

"hey may be get increase in insurance business and they can give attractive offers and schemes to attract customers.

)'1,', T(reats: ,ural area and middle class still does not have faith in private ban!s.

1ost is most important feature and !ota! have to reduce it to compete in current mar!et.

"he !ota! Mahindra ban! has good competition with private ban!s and they are spending huge amount in mar!eting. If !ota! want to be in competition it has to acquire more shares in mar!et. )'17 *C ANA?.SIS

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)'17'1 CO0PAN. )'17'1'1 Company Reac(: Kota! Mahindra is now one of India$s leading financial services organizations offering a broad range of financial solutions that encompass every sphere of life. 2rom commercial ban!ing to stoc! bro!ing to mutual funds to life insurance to investment ban!ing the group caters to the varied financial needs of individuals and corporate sector. "he group has a net worth of over ,s.><DD crore employs around /DDDD people in its various businesses and has a distribution networ! of branches representative offices and satellites offices across more than 055 cities and towns in India. It has offices in Aew Oor! Condon 1alifornia )ubai #bu )habi Singapore Mauritius and 'ahrain and its being serving its services to around > million customers. )'17'1') Company O erin#s: "hey offer complete financial solutions for infinite needs of all individual . non-individual customers depending on the customer$s need - delivered through a state of the art technology platform. Investment products li!e Mutual 2unds Cife Insurance retailing of gold coins and bars etc are also offered. "he 'an! follows a mix of both open and closed architecture for distribution of the investment products. #ll this is bac!ed by strong in-house research on Mutual 2unds. "heir Savings #ccount goes beyond the traditional role of savings and allows to put aside a lot more than +ust money. "he worry-free features of our Savings #ccount provides a 0=

range of services from funds transfer bill payments /-way sweep through their #ctivMoney feature . much more. 6ne can place standing instructions for investment options that can be boo!ed through Internet or through Bhone ban!ing services. "he Savings #ccount thus provides for attractive returns earned through a comprehensive suite products and services that offer investment options all delivered seamlessly to the customer by well integrated technology platforms. #part from Bhone ban!ing and Internet ban!ing the 'an! offers convenient ban!ing facility through Mobile ban!ing SMS services Aet card and Home ban!ing and 'ill Bay facility among others. "he )epository services offered by the 'an! allows the customers to hold equity shares government securities bonds and other securities in electronic or )emat forms. "heir Salary / ;ealth offering provides comprehensive administrative solutions for 1orporate with features such as easy and automated web based salary upload process thereby eliminating the paper wor! involved in the process a dedicated relationship manager to service the corporate account customized promotions and tie - ups and many such unique features. "he whole gamut of investment products and investment advisory services is available to the salary account holders as well. 2or the business community they offer comprehensive business solutions that include the 1urrent #ccount "rade Services 1ash Management Service and 1redit 2acilities !eeping in mind the myriad needs of your business. "heir ;holesale ban!ing products offer business ban!ing solutions for long-term investments and wor!ing capital needs advice on mergers and acquisitions and equipment financing. "o meet special needs of the rural mar!et we have dedicated business offerings for agricultural financing and infrastructure. In #griculture 2inance division delivers customized products for capital financing and equipment financing needs of our rural customers. 2or financial liquidity they offer you loans that meet your personal requirements with quic! approval and flexible payment options. "o complete the personal financial offerings space now they offer Kota! 1redit 1ard which is a hassle-free transparent product that also happens to be the first vertical credit card in the industry. Kota! Mahindra 'an! addresses the entire spectrum of financial needs of Aon,esident Indians. "heir tie-up with the 6verseas Indian 2acilitation 1entre %6I21& as a strategic partner gives us a platform to share our comprehensive range of ban!ing . investment products and services for Aon ,esident Indians %A,Is& and Bersons of Indian 6rigin %BI6s&. "heir 6nline #ccount 6pening facility and Cive 1hat service helps you to get 0>

in touch with us at the comfort of your homes and at your convenience. "hese offerings are specifically designed to suit the overseas Indian$s personal financial needs and give the global Indians a near to home feel. )'17') CUSTO0ERS "he customers for Kota! Mahindra 'an! are salaried people businessmen self employed with good earnings so as they have the capability to maintain the average quarterly balance with the ban!.

)'17'* CO0PETITORS Name H)21 'an! I1I1I 'an! #xis 'an! 4ota" 0a(indra IndusInd 'an! Oes 'an! Tota% Assets 5DD 00*.<D :0= ><5.=< 05D :=D.== <*J:=*':< >0 0D=.:/

)'17'*'1 HD3C &AN4 "he Housing )evelopment 2inance 1orporation Cimited %H)21& was amongst the first to receive an Ein princip%eE approval from the ,eserve 'an! of India %,'I& to set up a ban! in the private sector as part of the ,'I$s liberalization of the Indian 'an!ing Industry in *<<5. "he ban! was incorporated in #ugust *<<5 in the name of $H)21 'an! Cimited$ with its registered office in Mumbai India. H)21 'an! commenced operations as a Scheduled 1ommercial 'an! in 8anuary *<<:.

HD3C &AN4 0ar"et Strate#y Emp(asiHes on t(e o%%oAin#:

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 Increase mar!et share in India-s expanding ban!ing and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Ceverage their technology platform and open scale allow systems to deliver more products to more customers and to control operating costs. Maintain current high standards for asset quality through disciplined credit ris! management. )evelop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. 1ontinue to develop products and services that reduce ban!-s cost of funds. 2ocus on high earnings growth with low volatility. )'17'*') ICICI &AN4 I1I1I 'an! is the largest private sector ban! . the second largest ban! in the country in terms of assets. It is a pan-India player with around <:D branches %including recently acquired Sangli ban!&. "he ban! has boosted its overseas operations in the last three years and now has presence in *? countries either through subsidiaries or representative offices ."ogether with its subsidiaries I1I1I 'an! offers a complete spectrum of financial services . products ranging from commercial ban!ing to investment ban!ing mutual fund to insurance ' I1I1I has a very compelling growth story ahead of it as Indian economy continues to boom. ICICI &AN4 0ar"et Strate#y Emp(asiHes on t(e o%%oAin#: ,etail ban!ing though slowed down will remain focus area for I1I1I 'an! Massive scale up in international ban!ing Innovate approach to tap potential in ,ural . SMG sector ,obust non-interest income compensating for slower growth in Aet Interest Income Sangli 'an! acquisition will help the ban! to improve 1#S# deposits.

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)'1: 0AR4ETIN5 STRATE5.

Kota! Mahindra @roup believes that the art of persuading audiences means using the three basic appeals that #ristotle first described4 ethos pathos and logos. "hey considers #ristotle-s model effective even today. "he opinion that there is a sufficiency of brand information in front of audiences today. Kota! Mahindra 'an! chose to convey a statement of youthfulness for their P/: yearscampaign in /D**. Kota! Mahindra 'an! on this occasion unveiled a high-impact campaign that featured a series of *D-second television commercials and print campaigns. "he idea of *D-second commercials came from the one-second commercials by Miller High Cife during the Super 'owl.

5D

 Since India does not have media spots for such one-second innovations Kota! Mahindra pic!ed up the ten-second spots instead "hey used Bathos in advertising persuading by betting on consumer-s emotions. Kota! too li!e many other Indian brands believes that the art of music and storytelling has emerged as a strong mar!eting tool because consumers use these forms in their daily life. In the Cogos or logical percussion they use of reasoning. "hat was the time when Kota! 'an! brought in Subbu as a character in its communications. Subbu is a voice of the brand and not a brand endorser that helped consumers decode their worries. Subbu was created at the time when the ,eserve 'an! of India de-regulated interest rates on savings accounts. Subbu using various media platforms spread the word on various products that the ban! launches from time to time. Kota! 'an! one of youngest in the category is using traditional principles of communication and modernizing it with consumer demands. It will be interesting to see how the brand will continue to inform persuade and entertain its customers and potential customers )'1:'1 ?O5O

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)'1:')TA5?INE G?ETS 0A4E 0ONE. SI0P?EI

In another research Hallowell %*<<=& loo!ed into the relationship between customer satisfaction and loyalty and his conclusions were quite similar to Barasuraman et al. %*<<5&. 5/

"he study concluded that satisfaction with the service and satisfactions with price were !ey elements in the overall satisfaction measurement. "he measurements used in the above mentioned study were reasonably all-inclusive and concluded that all the elements measured had a bearing on overall satisfaction. "he findings of the study emphasized that the service features of branch staff and information were dominant factors.

CHAPTER-* ?ITERATURE RE1IE2 *'1 T(eoretica% 3rameAor" ,esearch on self service technology %SS"& has been a popular topic in the past /D years because technology is developing constantly evolving and improving. Self-Service "echnology is defined according to Meuter et al. %/DDD p. :D& as 7"echnological interfaces that enable customers to produce a service independent of direct service employee involvement.9. #nother common used term which refers to this definition is 7"echnology 'ased Self-Service9 %"'SS&. Self service technology is supposed to reduce operating %personnel& costs for companies and to give more control over time to customers. 'esides the underlying goals for the customers are cost and time advantages. SS" is about involving customers in the service delivery process in order to improve productivity and service quality and also reducing costs. "his is achieved by4 firstly controlling demand fluctuations without the use of expensive employees and second the used 50

technological interface is made standardized which ma!es it independent of the employees personality and mood. "his gives the customers a partial responsibility for the outcomes and obtained quality of the service. "he technology should be put in a positive light in order to persuade customers that SS"s are an easier medium for attaining their goals rather than it is an obstruction. "he perceived reduction in waiting time during the service experience is one of the main advantages of using SS"s according to 'ateson %*<?:& and Meuter et al. %/DDD&. Introduction of SS"s in the past was not very successful because customers seemed not ready yet to change their behavior to adopt this new way of shopping. In contrast introducing SS"s in the /DDDs was possible because according to ,ust %/DD*& rapid acceptance of modern information and communication technology in daily business is the most important long term trend in the business world. #dditionally customers are more technologically minded these days. 1ustomers are willing to participate in service delivery when SS"s have a relative advantage % Meuter et al. /DDD . /DD0& compared to traditional methods where customers cant cooperate in the service. Gxamples of SS"s are manifold4 Self-Scan chec!out automated hotel chec!out automated car rental automated airline tic!eting pac!age trac!ing tax preparation software #utomated "elling Machines %#"Ms& Internet information search electronic blood pressure machine payment at pump terminals highway toll Internet shoppingQ Self evidently SS" usage is lin!ed with some disadvantages. #ccording to ;al!er and 1raigCees %/DDD& technology-enabled service delivery can frustrate and intimidate users depersonalize the service encounter and create space between customers and service employees. 1ustomers must also be willing to adopt an active role in the service delivery process. 1ompanies could give some incentives to SS" using customers because the customer base is quite heterogeneity in terms of willingness to adopt these SS"s. In other words this means that there will be always customers who either re+ect or accept the SS". 0eanin# o Retai% !an"in# ,etail ban!ing in general refers to offer financial products . services related to deposits and assets to individual customers for personal consumption. 'an!s concentrate on various segments li!e professional housewives salaried class self employed etc. different types of product li!e recurring deposit saving ban! deposit fixed deposit credit cards housing and consumer loans are offered by the bands of the above mentioned mar!et segments. Retai% &an"in#-Indian Scenario 55

,etail ban!ing is the modernization of the /* st 1entury. India has experienced a rapid growth in retail ban!ing. It is a ban!ing service that is geared primarily toward individual customer. It focuses strictly on consumer mar!ets. ,etail ban!ing is a mass-mar!et ban!ing where individual customers use local branches of larger commercial ban!s. "he services offered by retail ban!ing includes saving and chec!ing accounts mortgages personal loans debit cards credit cards etc. It ta!es care of the diverse ban!ing needs of an individual customer. It provides ban!ing products and services to individuals. ,etail ban!ing contains feature li!e multiple products channels and customer groups. Most of the Indian ban!s have been retail ban!s in their business composition. "he various reasons for the growth of retail ban!ing in India are4 "echnology. Introduction Brivate and foreign ban!s. Increased competition. Innovation in ban!ing products and services. Gconomic growth. )eregulation of interest rates. 1hanges in life style of wor!ingHmiddle class. 2ocus on productivity and profitability. 1hanging consumer demographics. ,etail ban!ing segment in the ban!ing industry is continuously undergoing innovations product reengineering ad+ustments and alignments. Indian retail ban!ing segment includes4 1ards- credit debit and #"M. Housing loans. Bersonal loans 1onsumption loans Gducation loans Jehicle loans. Insurance. )emat services. 5:

 6nline services CUSTO0ER SATIS3ACTION AND RETAI? &AN4IN5 ,etail ban!ing is a service industry focused towards the customer-s money and its management. #n element that strongly drove the satisfaction of customers in the ban!ing sector was the conviviality factor related to the features of a ban! and the attributes of its personnel. ,ust and Rahori! %*<<0& Krishnan et al %*<<<& conducted various studies and put forward that satisfaction with perceived product quality was the prime driver of overall customer satisfaction. 2urthermore their studies also found and recommended that the impact of service delivery factors varies considerably on customer satisfaction. "o further exemplify they became aware of the fact that for customers who traded heavily and had high investable assets the effect of an automated telephone service was elevated than that of the other drivers of satisfaction.

*') ?iterature re$ieA 1' 6oao 3' Proenca8)>119 conducted a empirical study in Bortugal on users and non users of G-ban!ing services .He investigated six dimensions4 Brice sensitivity Satisfaction ;ord-of-mouth ,epurchase intention Bropensity to change ban! 1omplaint behavior. 0o%s 81==<-1===9 found that internet ban!ing users are less price sensitive and he also pointed out that Aon G-'an!ing users had lower level of education .85e%Hus Researc(J )>>*9 in a study of @erman consumers of Mobile Bhone 'an!ing most of the consumer were found willing to pay extra for this service. "his study has shown that there was no significant gender and G-'an!ing use among the Bortuguese customers of G-ban!ing services. 8Keit(am% and &itnerJ )>>>9 found that customers loyalty is based on greater profit larger value of purchase less price sensitive and positive word-of-mouth.

5=

)' 0att(eA ?' 0euter86u%')>>>9 have identified critical incidents of customer satisfaction and dissatisfaction with technology-based service encounters. @iven that business-to-business transactions are the fastest growing segment of technology-driven services 8Ho J 1===9I 0euter and (is co%%ea#ues 8)>>>9 suggested investigating what drives business customer satisfaction or dissatisfaction with technology driven services. #ccording to 5Lnroos 81=<)9I and 0euter8)>>>9 focused on customer interaction with technology based self service delivery option' #lmost half of the retail ban!ing transaction now conducted without any assistance with the ban! teller. Selfservice technologies are pervasive nature and relatively easy accessibility and SS" provides a valuable advantage over competitors not offering SS" alternatives. He found that customer is highly satisfied when due to the SS" bail customers out of immediate or troubling situations. In this study many of the dissatisfaction were caused by process failures. "he danger of this type of failure is that the customer assumes that the trans-action will be completed as expected which may cause significant complications when the failure becomes apparent. *' Rao et a%' 8)>>*9 provide a theoretical analysis of Internet ban!ing in India and found that as compared to ban!s abroad Indian ban!s offering online services still have a long way to go. 2or online ban!ing to reach a critical mass there has to be sufficient number of users and the sufficient infrastructure in place. I.". has introduced new business paradigms and is increasingly playing a significant role in improving the services in the ban!ing industry. Internet ban!ing is becoming more and more popular today as is ban!ing via digital television. 'eyond doubt a substantial part of the future of ban!ing business lies in a ban!ing environment that is less and less branch-based and where customers are able to access ban!ing services remotely. "he automated service quality research has been limited to relationship management rather than service quality or its acceptance by consumer. ,' P'4' 5upta8)>><9 analyzed the customers behavior with respect to internet ban!ing and he found that trust is the most important factor in provision of ban!ing services followed by accuracy and confidentiality 1onsumers in the high income groups are highly concerned about the safety of transactions in ban!ing though ease of transaction is on the least priority Speed is an area of concern for the conventional ban!ing system where the consumer rated the least Safety ran!ing of the conventional ban!ing 5>

system was found to rise with the movement to higher income levels Internet ban!ing has been highly rated the highest by the consumers on the parameters of accuracy though safety is matter of concern the opinions on ease of transactions and customization in Internet ban!ing are mixed among the consumer groups. "his may be because of the access to the computer systems and varied requirements among them. 7' Dr' Himani S(arma8 )>119 in her study she found that there is not much awareness in Indian customers regarding use of G-'an!ing services. 'ut the guidance and persuasion by ban!ers does promote the use of such services amongst the customers. "here is greater incidence of G-'an!ing usage among the middle age men %0D to :D years of age&I and women customers use such services much less frequently. 6ccupation-wise the professionals followed by business class ma!e more use of G'an!ing services. 'an!ers are satisfied regarding the retention rate and access rate of G-'an!ing customers and they are also satisfied with switch over rate of customers from traditional ban!ing to e-ban!ing. In order to ma!e e-'an!ing more popular ban!s must separate their customers based on demographic priority %i.e. age gender occupation etc.& and customize G-'an!ing services as per their needs and requirements. :' 0itta%J R'4' D D(in#raJ S' 8)>>;9 studied the role of technology in ban!ing sector. "hey analyzed investment scenario in technology in Indian ban!s but this study was related to the time period before the Information "echnology #ct and at that time technology in Indian ban!s was very low. 'ut both the researchers nicely presented their views. ;' Hua 5' 8)>>=9 found that the online ban!ing acceptance in 1hina by conducting an experiment to investigate how users- perception about online ban!ing is affected by the perceived ease of use of website and the privacy policy provided by the online ban!ing website. "he **D undergraduate students in 1hinese Eniversity are involved in the investigation. "he study finds that both perceived ease of use and privacy policy have a significant impact on user-s adoption of online ban!ing. "he study also investigates relative importance of perceived ease of use privacy and security. Berceived ease of use is of less importance than privacy and security. Security is the

5?

most important factor influencing user-s adoption. "he study also discusses the implications of these results and limitations.

CHAPTER-, RESEARCH 0ETHODO?O5. ,esearch methodology is the way to systematically solve the research problem. ,esearch in common refers to a search of !nowledge. In fact research is an art of scientific investigation. #ccording to the advanced learning dictionary 7research is a careful investigation of inquiry especially for finding9. In it we study the various steps that are generally adopted by the researcher in study of his research problem along with logic behind them. It is necessary for the researcher to !now the research method and techniques. ,'1 RESEARCH T.PE I have used descriptive research and exploratory research design in our studies. )escriptive research is also called Statistical ,esearch. "he main goal of this type of research is to describe the data and characteristics about what is being studied. "he idea behind this type of research is to study frequencies averages and other statistical calculations. #lthough this 5<

research is highly accurate it does not gather the causes behind a situation. )escriptive research is used to obtain information concerning the current status of the phenomena to describe Swhat existsS with respect to variables or conditions in a situation. Here we also tried to find out the main cause why there is perceptual bloc!ing of the Indian customers towards SS" services offered by ban!s. "he methods involved range from the survey which describes the status quo the correlation study which investigates the relationship between variables to developmental studies which see! to determine changes over time. ,') DATA T.PE )ata includes facts and figures which are required to be collected to achiever the ob+ectives of the pro+ect In order to determine the present position of SS" users. ,')'1 PRI0AR. DATA4 Brimary data was collected from the sample by a Self-administered questionnaire in presence of customer. ,')') SECONDAR. DATA: Secondary sources of secondary data were Magazines newspaper +ournals etc.

,'* 0ETHOD O3 DATA CO??ECTION 2or assessing the behavior pattern of the customers towards SS" services in ban!ing I have collected the data from both the sources i.e. primary sources and secondary source. ,'*'1 Primary Source 2or this research I have prepared a questionnaire for collecting the data. I distributed the questionnaire to the selected SS" users. 6n the basis of their feedbac! I have done the analysis for my report. ,'*') Secondary Source Jarious boo!s broachers company-s website pro+ect reports articles on SS" in ban!ing industry ta!en from +ournals magazines published from time to time etc where used as secondary source. ,', MUESTIONNAIRE DESI5N :D

Luestionnaire design is a most common instrument. # researcher should avoid bias and develops a device which will facilitate effective communication. "he questionnaire considers all these factors can secure relevant facts or opinion from informed and interested responded. I designed a questionnaire contained li!e this and conducted the sample survey. "he questionnaire was structured type and contained questions relating to different dimensions of e-ban!ing preferences among service class such as level of usage factors influencing the usage of SS" services benefits accruing to the users of SS" services problems encountered. #n attempt was also made to elicit reasons for its non-usage. "he questions included in the questionnaire were close-ended dichotomous and offering multiple choices. ,'7 SA0P?IN5 UNIT It defines the target population that will be sampled i.e. it answers who is to be surveyed. In this study the sampling unit is the people of #hmedabad. ,': SA0P?E SIKE "he larger the sample the more accurate the results would be but practically it is not feasible to survey the entire target population customers or even substantial portion of it. In this pro+ect the sample size is *DD. In this pro+ect being aware of the time and cost constraints sample size was limited. ,'; SA0P?IN5 TECHNIMUE 2or this study I have adopted the convenient sampling method. In this method the sampling unit is chosen primarily on the basis of convenience to the investigators. In this type of sampling the researcher selects the item for the sample deliberatelyI his choice concerning the items remains supreme. In other words under this sampling method the organizers of the enquiry purposively choose the particular unit of the universe for constituting a sample on the basis that the small mass that they select out of huge ones will be typical or representative of the whole. . ,'< RESEARCH DESI5N ,esearch design constitutes the blue print for the collection measurement and analysis of data. "he present study see!s to identify the extent of preferences of SS" services over traditional ban!ing among SS" users. "he research design is exploratory and descriptive in nature. "he :*

research has been conducted on SS" users within ahmedabad. 2or the selection of the sample convenient sampling method was adopted and an attempt has been made to include all the age groups and gender within the SS" users.

,'= TOO?: SPSS

CHAPTER-7 DATA ANA?.SIS AND INTERPRETATION

Ta!%e no7'1 Customer@s pre erence o !an"s as c%assi ied !y R&I 2requency Bercent Aationalize 'an! Indian Brivate Sector 'an! 1o-operative 'an! 2oreign ban! "otal 5D := 0 * *DD 5D.D :=.D 0.D *.D *DD.D Jalid Bercent 5D.D :=.D 0.D *.D *DD.D 1umulative Bercent 5D.D <=.D <<.D *DD.D

:/

3i#'7'1 Customer@s pre erence o !an"s as c%assi ied !y R&I Interpretation 2rom the research it is concluded that about :=F of the total population prefer Indian private sector ban!s for ban!ing and study about other ban!s concern as 5DF prefer nationalize ban! and other as co-operative ban! and foreign ban! with 0F and *F respectively.

Ta!%e 7') Customer@s aAareness o SST ser$ices pro$ided !y !an"s 2requency Bercent Jalid 1umulative Bercent Bercent Oes >? >?.D >?.D >?.D Jalid Ao // //.D //.D *DD.D "otal *DD *DD.D *DD.D

:0

3i# 7') Customer@s aAareness o SST ser$ices pro$ided !y !an"s

Interpretation "he above table showing the awareness of people about the SS" services while opening account got some interesting results. "he result shows that the >?F of the people are aware of the SS" services provided by the ban! on the other hand the other about //F of the peoples are not aware of the SS" services.

Ta!%e 7'* Customer@s aAareness o o%%oAin# SST ser$ices No' o Respondents *DD *DD *DD =< =? 50> Percenta#e //.??F //.??F //.??F *:.>?F *:.:=F *DDF

AT0 De!it Card Credit Card 0o!i%e &an"in# Internet &an"in# Tota%

:5

3i# 7'* Customer@s aAareness o o%%oAin# SST ser$ices

Interpretation 2rom the recent study the above table shows some interesting results about the awareness of G-ban!ing services. Some different ratios of respondents were ta!en in this research. "he results of awareness towards G-ban!ing service li!e #"M De!it Card and credit card s(oA ))'<<N amon# t(e 1>> respondents' 2or mobile ban!ing service we got *:.>?F result among the =< respondents and for internet ban!ing we got *:.:=F among the =? respondents.

Ta!%e 7', Customer@s response a!out usin# t(e o%%oAin# SST ser$ices No' o Respondents *DD *DD ?: /* 0D 00= Percenta#e /<.>=F /<.>=F /:./<F =./:F ?.</F *DDF

AT0 De!it Card Credit Card 0o!i%e &an"in# Internet &an"in# Tota%

::

3i# 7', Customer@s response a!out usin# t(e o%%oAin# SST ser$ices Interpretation "he above results shows that among the 00= respondents /<.>=F of the users use the SS" services #"M and )ebit 1ard. /:./<F are 1redit 1ard users and =./:F and ?.</F are mobile ban!ing and internet ban!ing users respectively. "he result shows the same proportion of the users for the #"M and )ebit 1ard and equivalent result for the credit card as well. 'ut on the other hand users for mobile and internet ban!ing are comparatively fewer.

Ta!%e 7'7 T(e sin#%e most imp reason or c(oosin# t(is particu%ar !an" or usin# SST ser$ices' 2requency Bercent I have a traditional ban! account with the same ban! "he brand name of the ban! "he excellent service offered by this ban! #ccessibility "otal Jalid Bercent 0>.D ?.D 5=.D <.D *DD.D 1umulative Bercent 0>.D 5:.D <*.D *DD.D

0> ? 5= < *DD

0>.D ?.D 5=.D <.D *DD.D

:=

3i# sin#%e imp or t(is

7'7 T(e most reason c(oosin#

particu%ar !an" or usin# SST ser$ices' Interpretation "he question as!ed to the people during this research that the single most imp reason that they choose for particular ban! for using SS" services and above results shows the views of the people towards the question. "he results shows that the 5=Fof the people says that they get the excellent services by their ban! in which they have their account but on the other hand 0>F of the peoples do have the traditional ban! account with the same ban!. "he ?F of the population goes with the brand name of the ban! and <F with the accessibility of the ban!.

Ta!%e 7': Representation o reCuency o usa#e

2actors # ' 1 ) G #"M )ebit 1ard 1redit 1ard Mobile 'an!ing Internet 'an!ing

6ften D D 5 * 0

Sometimes #lways / <? *= ?5 /* :> 0 < / *>

Seldom D D 0 ? ?

Aever D D *: >< >D

"otal *DD *DD *DD *DD *DD

:>

3i# 7': Representation o reCuency o usa#e Interpretation "he above result shows the frequency of use of the SS" services. Highest number of population always uses #"M )ebit card and 1redit card. 'ut according to research it also shows that the there are fewer who use the mobile ban!ing and internet ban!ing.

# ' 1 ) G

Ta!%e 7'; Represents t(at sa est SST ser$ice to use accordin# to t(e respondents Jery Jery 2actors Safe Aeutral ,is!y Safe ,is!y #"M 5= 00 *? / * )ebit 1ard /? := *0 0 D 1redit 1ard / = :< /< 5 Mobile 'an!ing *5 0 : :/ /= Internet 'an!ing *0 / / *5 =<

"otal *DD *DD *DD *DD *DD

:?

3i# 7'; Represents t(at sa est SST ser$ice to use accordin# to t(e respondents Interpretation Security is always a ma+or concern for SS" services. "he above result shows that the #"M services are safer rather than the debit card and credit card. "he same is with the mobile and internet ban!ing that most of the population thin!s that these SS" services are not yet safe to use.

Ta!%e 7'< 3actors in %uencin# t(e %e$e% o usa#e

2actors # ' 1 ) G #ll time availability Gase of use Aearness Security )irect access

Jery Important Important =< :: 0> =* :? 0* 5: 5? 0= 05

Moderately Important D D *: 0 ?

6f Cittle Importance D D D D D

Enimportant D D D D D :<

2 @

Luic!ness Cess Bhysical Gfforts

=0 *?

0> 00

D 0=

D **

D /

3i# 7'< 3actors in %uencin# t(e %e$e% o usa#e Interpretation "he above result shows the factors which accelerates for influencing the use of SS" service. "he factors such as all time availability ease of use nearness security direct access quic!ness and less physical efforts. #ll the factors showed their high level of importance but the people don-t have any issue with the less physical efforts to use SS" services.

Ta!%e 7'= Pro!%ems identi ied A(i%e usin# SST ser$ices Highly considered /D 0 /: 55 00

2actors # ' 1 ) G 6verdependence on "echnology Security concerns "ime consuming "echnical problem Gxtended security chec!s

Ma+or /5 0: 0= /> *>

#verage *= /0 ** > <

Minor 0? 0= /5 *? 0<

Ignorable / 0 5 5 /

=D

3i# 7'= Pro!%ems identi ied A(i%e usin# SST ser$ices

Interpretation "he above table shows the result to problem against the all SS" services. "he number shows that they are highly concerned with the technical problem but some amazing result with the security that it-s a ma+or concern but not they are highly concerned with it. "he factors as over dependence on technology and time consuming has the mixed concerns for their problems.

Ta!%e 7'1> Reasons or not usin# t(e SST ser$ices

2actors # ' 1 ) Ao need% Satisfied with traditional ban!ing& Aot available through my ban! Security concerns Ao access to

)efinitely 05 D *: 0

Jery Brobably D D * D

Brobably ? = *= D

Bossibly D D 0 D

Jery Brobably Aot :D ?= :> ?< =*

G 2

internetHmobile Cac! of operational !nowledge%1omplexity& 1osts

50 /<

= */

*0 0

D D

0D 5?

3i# 7'1> Reasons or not usin# t(e SST ser$ices Interpretation "he above figure shows that there is ma+ority of customers are not using the all SS" services because of Cac! of operational !nowledge as mentioned in the figure 50 customers thin! than and 05 respondents thin!s they are satisfied with traditional ban!ing they don-t need to use all SS" services and the third ma+or factor is cost of the service.

Ta!%e 7'11 Satis action %e$e% o SST ser$ices users 2actors # ' 1 ) G #"M )ebit 1ard 1redit 1ard Mobile 'an!ing Internet 'an!ing Jery satisfied 5= 50 :D ** // Satisfied 0= 0= /> Aeutral * *= >> =? )issatisfied /* *< = *D < Jery )issatisfied * * / *

=/

3i# 7'11 Satis action %e$e% o SST ser$ices users Interpretation "he above result shows the satisfaction level of the account holders towards their ban!-s SS" services. "he result shows the mixed satisfaction level for the SS" services. "he above table shows the highest satisfaction level with the #"M service and even comparing other satisfaction level highest number are also dissatisfied. "he same condition is with debit card also. 1redit card is having the highest level of satisfaction and about the internet ban!ing peoples have mixed answers they are neutral with it.

Ta!%e 7'1) Respondents pre erence or usin# a%% SST ser$ices 2requency Bercent Oes Jalid Ao "otal Missing System "otal ?0 *= << * *DD ?0.D *=.D <<.D *.D *DD.D Jalid Bercent ?0.? *=./ *DD.D 1umulative Bercent ?0.? *DD.D

=0

7'1) Respondents pre erence or usin# a%% SST ser$ices Interpretation "he above table shows the percentage of the people-s using the all SS" services. "he result shows that ?0F of the population uses all SS" services and about the rest of *=F is that they don-t use.

Ta!%e 7'1* Important actors or usin# SST ser$ices Moderately Important */ /D 6f Cittle Importance

2actors # 'etter rate and service charge ' 'an! familiarity 1 'an! location %geographic& ) Security of "ransaction G 1onvenience

Jery Important >5 :> 5> <* ?0

Important /= 0* 0* < *>

Enimportant

=5

2 Luic! service @ Some Gxtra Brivileges H Jariety of features and services that are offered

?= 0: 5=

*0 /> /*

* *5 //

/5 *D *

3i# 7'1* Important actors or usin# SST ser$ices Interpretation "he above table shows some factors which are responsible for the ma!e people use the SS" services. "he factors are better rate and service charge 'an! familiarity 'an! location %geographic& Security of "ransaction 1onvenience Luic! service Some Gxtra Brivileges and Jariety of features and services that are offered. "hese factors were rated according to their higher level importance to the lower level of importance. #ll the factors were very important for the peoples. Security shows the higher degree of importance for the account holders and on the other hand the lower importance was with the variety and services that are offered and also for the ban! location. Ta!%e 7'1, Respondents response a!out pri$ate and nationa%iHe !an" SST ser$ices 82(ic( !an" pro$ides !etter SST ser$ices9 2requency Bercent Jalid 1umulative Bercent Bercent Jalid Oes >> >>.D >>.D >>.D Ao = =.D =.D ?0.D

=:

#ll #re Same "otal

*> *DD

*>.D *DD.D

*>.D *DD.D

*DD.D

3i# 7'1, Respondents response a!out pri$ate and nationa%iHe !an" SST ser$ices 82(ic( !an" pro$ides !etter SST ser$ices9 Interpretation "he question when as!ed to the people to choose for the better SS" services between the nationalized ban! and the private ban!s and then the results shows that >>F of the peoples are with the private ban!s and =F of the people disagree with the results of SS" services provided by the private ban!s but *>F of the result shows that these peoples thin!s that all ban!s provide better SS" service they were neutral with the question.

Ta!%e 7'17 Customer@s pre erence o !an" or usin# SST ser$ices 2requency Bercent Jalid 1umulative Bercent Bercent Aationalized 'an! */ */.D */.D */.D Indian Brivate Sector ?0 ?0.D ?0.D <:.D Jalid 'an! 2oreign ban! : :.D :.D *DD.D "otal *DD *DD.D *DD.D ==

3i# 7'17 Customer@s pre erence o !an" or usin# SST ser$ices Interpretation "he above results show that the Indian private sector ban! too! over the ?0F of the total population and rest of */F for nationalized ban! and :F for foreign ban!.

CHAPTER-: 3INDIN5S O3 THE STUD. "he overall percentage of customers having complete !nowledge about SS" services provided by the ban! while opening an account in it is >?F and the percentage of people have no awareness of SS" services provided by the ban! is //F. It can reasonably be concluded that nearly ma+ority of the population is having awareness about SS" services.

=>

 G-ban!ing constitutes services provided in terms of #"Ms )ebit 1ard 1redit 1ard Mobile 'an!ing Internet 'an!ing etc of which the first six have been covered. #mongst these #"M scores the largest used service status %/<.>=F& 1lose on the heels is )ebit card %/<.>=F& 1redit card %/:./<F& while mobile ban!ing lags behind by scoring the least ie.=./:F . "o find out the level of usage amongst the SS" users percentage has been calculated from the total completely filled in questionnaires and the incomplete questionnaires were discarded. "he frequency of usage of #"M is highest followed by debit card.. # study of the factors influencing the usage was made by listing out various factors such as all time availability ease of use nearness etc. and amongst the various factors all time availability is ran!ed as the ma+or motivating factor followed by ease of use direct access nearness in decreasing order of importance. Luite interestingly friends and relatives status symbol scored the least motivating factors. ;hen as!ed to list various benefits accruing from the usage of SS" services all time access received highest percentage score at %=<& among different benefits such as ease of use saving %::& quic!ness %=0& direct access %:?& security %=*&.Luite interestingly security feature scored more than the nearness of the SS" services #mong the users various problems that are encountered while using e-ban!ing services. 1ustomers are highly concerned with the technical problem but some amazing result with the security that it-s a ma+or concern but not they are highly concerned with it. "he factors as over dependence on technology and time consuming has the mixed concerns for their problems. Ma+ority of customers are not using the all SS" services because of Cac! of operational !nowledge and some of respondents thin!s they are satisfied with traditional ban!ing they don-t need to use all SS" services and the third ma+or factor is cost of the service. "he result shows that ?0F of the population willing to use all SS" services and about the rest of *=F is that they don-t willing to use. "he factors are better rate and service charge 'an! familiarity 'an! location %geographic& Security of "ransaction 1onvenience Luic! service Some Gxtra Brivileges and Jariety of features and services that are offered. "hese factors were rated according to their higher level importance to the lower level of importance. #ll the factors were very important for the peoples. Security shows the higher degree of =?

importance for the account holders and on the other hand the lower importance was with the variety and services that are offered and also for the ban! location. "he study results show that the customer prefer the Indian private sector ban! for using SS" services over the nationalized ban! and foreign ban!.

&I&?O5RAPH. RE3RENCES Reithaml and 'itner. /DDD. 7"echnology Infusion in Service Gncounters9 Journal of the Academy of Marketing Science. Jolume /? Ao. * pages *0?-*5<. ,ust ,oland. *<<?. 7;hat Is the )omain of Service ,esearchT9 Journal of Service Research * %/&4 *D>.

=<

1laes 2ornell. *<</. 7# Aational 1ustomer Satisfaction 'arometer4 "he Swedish Gxperience9 The Journal of Marketing, Vol. 56, o. ! "Jan., !##$%, &&. 6'$! .Rineldin M. *<<=. 7"he 'ehavioral 1onsequences of Service Luality9 The Journal of Marketing, Vol. 6(, o. $ Matthew C. Meuter. /DDD. 7Self-Service "echnologies4 Enderstanding 1ustomer Satisfaction with "echnology-Service Gncounters9 The Journal of Marketing, Vol. 6), o. * "Jul., $(((%, &&. 5('6) Shah #n!it. /D**. 72actors Influencing 6nline 'an!ing 1ustomer Satisfaction and "heir Importance in Improving 6verall ,etention Cevels4 #n Indian 'an!ing Berspective9 +nformation and ,no-ledge Management +SS $$$)'5.5/ "0a&er% +SS $$$)'/#61 "2nline% Vol !, o.!, $(!! B.K. @upta. /DD?. 7Internet 'an!ing In India-1onsumer 1oncerns #nd 'an! Strategies9 3lo4al Journal 2f 5usiness Research Volume $ um4er ! 8annatul Mawa Aupur. /D*D. 7G-'an!ing and 1ustomers- Satisfaction in 'angladesh4 #n #nalysis9 +nternational Revie- of 5usiness Research 0a&ers Volume 6. um4er ). Se&tem4er $(!(. 0&. !)5 6 !56 SITES http4HHwww.!ota!.comHban!Hpersonal-ban!ingH www.hdfcban!.comH http4HHwww.dnb.co.inHbfsisectorinindiaH'an!1/.asp http4HHwww.iciciban!.comH

?in"s *. http4HHstoc!shastra.moneywor!s5me.comHeconomic-outloo!Hindian-ban!ing-industryfuture-prospects-and-sector-overviewH /. http4HHwww.g!today.inHscheduled-ban!s-of-indiaH >D

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APPDENDIO MUESTIONNAIRE Name Address >*

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*. ;hich !ind of 'an! do you prefer for ban!ing Aationalized 'an! 1o-operative 'an! Indian Brivate Sector 'an! 2oreign ban!

/. In which ban! do you have an #ccount4 UUUUUUUUUUUUUUUUU

0. ;hile opening the account were you aware of SS" services provided by your ban!T a. Oes b. b. Ao

5. ;hich of the following SS" services are you aware ofT a. #"M b. )ebit 1ard c. 1redit 1ard d. Mobile ban!ing e. Internet ban!ing

:. ;hich of the following SS" services are offered by your ban!T a. #"M b. )ebit 1ard c. 1redit 1ard d. Mobile ban!ing >/

e. Internet ban!ing =. )o you use SS" servicesT %I NoJ ansAer Cuestion no' >=J1)J1,J17J1: direct%y&. a. Oes b. Ao

>. ;hat was the single most important reason that you chose this particular ban! for using SS" servicesT %please choose one& I have a traditional ban! account with the same ban! "he brand name of the ban! "he excellent service offered by this ban! #ccessibility 6thers If others please specify

?. If answer to question no.: is yes how frequently do you use each of the following servicesT 2actors 6ften Sometimes #lways Seldom Aever # #"M ' )ebit 1ard 1 1redit 1ard ) Mobile 'an!ing G Internet 'an!ing

<. #ccording to you which SS" service is the safest service to use a. #"M b. )ebit 1ard c. 1redit 1ard d. Mobile ban!ing e. Internet ban!ing

*D. ;hich of the following factors influence you the most to use SS" servicesT 2actors # ' #ll time availability Gase of use >0 Jery Important Important Moderately Important 6f Cittle Importance Enimportant

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Aearness Security )irect access Luic!ness Cess Bhysical Gfforts

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Minor

Ignorable

*/. Kindly rate the following reasons enlisted for not using the SS" servicesT 2actors # )efinitely Jery Brobably Brobably Bossibly Jery Brobably Aot

Ao need% Satisfied with traditional ban!ing& ' Aot available through my ban! 1 Security concerns ) Ao access to internetHmobile G Cac! of operational !nowledge%1omplexity& 2 costs #ny other please specifyUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU *0. "o what extent are you satisfied with your 'an!s- SS" servicesT 2actors # ' 1 ) G #"M )ebit 1ard 1redit 1ard Mobile 'an!ing Internet 'an!ing Jery satisfied Satisfied Aeutral )issatisfied Jery )issatisfied

*5. )o you want to use SS" servicesT >5

Oes

Ao

*:. 2or your choice for using SS" services please indicate how much each of the following factors %were& are important for you. Moderately 6f Cittle 2actors Jery Important Important Important Importance # 'etter rate and service charge ' 'an! familiarity 1 'an! location %geographic& ) Security of "ransaction G 1onvenience 2 Luic! service @ Some Gxtra Brivileges H Jariety of features and services that are offered

Enimportant

*=. )o you thin! private sector ban!s are better service provider then nationalised ban!sT Oes Ao all are same

*>. ;hich !ind of 'an! do you prefer for using SS" servicesT

Aationalized 'an! 1o-operative 'an!

Indian Brivate Sector 'an! 2oreign ban!

THAN4 .OU

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