Date of submission: 30th April, 2013

Project report on

Customer Satisfaction level in banks : Comparison between Private and Nationalized Banks

Submitted in partial fulfillment of the requirement for the reward of Degree of

MASTER OF BUSINESS ADMINISTRATION Session 2011-2013 Punjabi University, Patiala

Supervised By: Dr .Raj Kumar Gautam

Submitted by: Rohit Bansal MBA II(Sem 4rth ) Roll no. 2918

PUNJABI UNIVERSITY REGIONAL CENTRE FOR INFORMATION TECHNOLOGY & MANAGEMENT, MOHALI

GUIDES CERTIFICATE

This is to certify that ROHIT BANSAL the student of MBA 2nd has carried out the project report as per the syllabus of Punjabi university Patiala on Customer Satisfaction level in banks: Comparison between Private and Nationalized Banks. under my guidance.

Dr. Raj Kumar Gautam

DECLARATION

I Rohit Bansal, the student of MBA in Punjabi University Regional Centre for IT & Management, Mohali completed my project Customer Satisfaction level in banks: Comparision between Private and Nationalized Banks under the guidance of Dr. Raj Kumar Gautam, Professor of Punjabi University Regional Centre for IT & Management, Mohali. It is carried out by me for the partial fulfillment of the course requirements of Masters of Business Administration. It is the original work done by me and the information provided in the study is authenticated to the best of my knowledge.

Further I want to convey that no copy of this project is submitted by me in any other university for award of any other degree or diploma etc.

ROHIT BANSAL MBA II (Semester 4th)

ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the only factor to achieve the desired goal. The project report on Customer Satisfaction level in banks: Comparison between Private and Nationalized Banks has been given to me as part of the curriculum in 2-Years Masters Degree in Business Administration. A large number of individuals have contributed to project. This project is a humble attempt to sketch down the contribution of all those persons who have directly or indirectly given their precious time and help along with proper guidance for making this report in the following shape. I express my deep and sincere gratitude to Dr. Raj Kumar Gautam, Professor, Punjabi University Regional Centre for Information Technology and Management, Mohali for his extensive and valuable guidance that was available to me. I have tried my best to present this information as clearly as possible. I am thankful to all my friends and batch mates for their help in completing this report work. Finally, I am thankful to my entire family members for their great support and encouragement.

Date : 30 April, 2013

Rohit Bansal MBA II 4th sem Roll no 2918

EXECUTIVE SUMMARY
One of the important functions of the Bank is to accept deposits from the public for the purpose of lending and as such depositors are the major stakeholders of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue directives/advices on interest rates on deposits and other aspects regarding conduct of deposit accounts from time to time. With liberalization in the financial system and deregulation of interest rates, banks are now free to formulate deposit products within the broad guidelines issued by RBI. This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and terms and conditions governing the conduct of the account. This research report deals with the comparison of products and services of private and Nationalized banks like Axis Bank, ICICI Bank, State Bank of Patiala and Punjab National Bank.

Chapter 1 INTRODUCTION TO INDIAN BANKING SECTOR

1. INTRODUCTION
The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis.Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the

government) continue to be the major lenders in the economy due to their sheer size and

penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. Banks are using electronic medium of delivery to save expenses. Development in technology has enabled banks to perform the repetitive to work without error and at a lower cost. Value addition to each of the products is only way to attract customers. Competition has provided choice to customers. Todays customers compare the offers are available in the market and select the ones, which give better value. Banks should attract long term deposits to ensure that there is no asset liability mismatch. Banks are now funding long-term assets like loans for infrastructure / housing with long gestation / repayment schedule with long-term liabilities. Long term deposits result in matching of assets and liabilities. In the service industry like Banking, promotion assumes all the more important position as what we really sell is abstract thing, i.e., service with the interest rates, range of products, being more or less same, the service given through proper promotion channels makes all the difference between two Banks in marketing context. Promotion can thus mean communicating with the buyer (customer). In order to strengthen his attitudes that are favorable to the (Banks) sellers offering and to change his attitudes, which are unfavorable to the sellers. This pre-supposes ensuring that such buyers become satisfied customers of the Bank now or later. The objectives of Promotion are: 1. Informing / telling / educating potential customer. 2. Informing existing customers about new products / services. 3. Following up with existing / potential customers for schemes introduced. 4. Approaching a new segment of customer to attract them to promote new scheme.

The following communication channels used in India by banks:

a. PRESS: Advertisements, Press releases and Interviews. b. TELEVISION: Advertisements, Press releases and Interviews.
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c. RADIO: Advertisements, Press releases and Interviews. d. PARTICIPATION IN FAIRS: Exhibitions, Seminars and Conventions. e. POSTERS: Banners, Leaflets at delivery points / City centers. f. ADVERTISEMENTS through ATM screens and Internet sites.

Mature markets, technological developments and deregulation in many countries have led to increased competition. Consequently, banks operating in mass-markets will have to concentrate on cost-savings in order to stay competitive. These and other factors have encompassed acquisitions and mergers throughout the industry. It has all resulted in major redundancies in the banking industry. In terms of employment, retail banking is a shrinking industry. The strategies for retail lending of the commercial banks are: Technology impact on product / service scenario The changes in distribution plans The outsourcing or contracting-out Deregulation Privatization Different distribution channels to different customers.

Marketing is a dynamic process. It is modified continuously in relation with the changing environment strategies which worked a few years back may not work now and strategies will have to be rethought for present day applications. It is not enough for banks to take a short-term view of market but it is rather essential that they take a long-term (future) view and accordingly devise their plans and strategies. In the changing economic scenario a flexible and customer resources, market position and market share and what it wants to be (in future) vis--vis the future changes in the market and future needs of the customer.
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MAJOR BANKING SERVICES : 1) Automatic teller machine (ATM) 2) Attitude of the employees 3) Cheque processing period 4) Credit card facility 5) Customer convenience facility 6) Loan processing period 7) One widow service 8) Online banking facility 9) Phone banking 10) Anywhere banking

The study will give an overview of the innovative services offered by the private banks in Chandigarh to stay ahead of the competition. Most of these banks took the help of proprietary processes and technology to launch innovative products to woo customers and differentiate themselves from the competition. Banks also started using their ATMs as a means of differentiating their services, making them more accessible and attractive to consumers. They added bill payment and credit card payment options at the ATMs. In addition, the banks used service personnel as a means of differentiation.

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CHAPTER 2 REVIEW OF LITERATURE

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2. REVIEW OF LITERATURE
Customer satisfaction is an important theoretical as well as practical issue for most marketers and consumer researchers (Churchill and Suprenant, 1982; Moutinho and Goode, 1995; Naser et al., 1999; Piercy, 1994). Customer satisfaction is a major outcome of marketing activity whereby it serves as a link with various stages of consumer buying behavior. For instance, if customers are satisfied with a particular service offering after its use, then they are likely to engage in repeat purchase and try line extensions (East, 1997). Customer satisfaction is widely recognized as a key influence in the formation of consumers' future purchase intentions (Taylor and Baker, 1994). Satisfied customers are also likely to tell others of their favourable experiences and thus engage in positive word of mouth advertising (File and Prince, 1992; Richens, 1983). This positive word of mouth advertising is particularly useful in collectivist Asian cultures like that of Pakistan where social life is structured in a way to improve social relationships with others in the society (see Hofstede, 1980; Hall and Hall, 1987). Dissatisfied customers, on the other hand, are likely to switch brands and engage in negative word of mouth advertising. A recent study conducted by Levesque and McDougall (1996) confirmed and reinforced the idea that unsatisfactory customer service could lead to a drop in customer satisfaction and willingness to recommend the service to a friend. This would lead to increase in switching by customers. So, the significance of customer satisfaction and customer retention in strategy development for a 'market oriented' and 'customer focused' firm cannot be underestimated (see Kohli and Jaworski, 1990 for further discussion). Customer satisfaction can be considered as the essence of success in today's highly competitive world of business. Customer satisfaction is increasingly becoming a corporate goal as more and more companies strive for quality in their products and services (Bitner and Hubbert, 1994). In this context, an understanding of 'determinant of customer satisfaction' (Churchill and Suprenant, 1982; Levesque and McDougall, 1996) is of great significance to marketers. The current paper reports findings from a recently conducted study which looked into the significance and importance of various determinants of customer satisfaction in retail banking. Customer satisfaction is generally described as the full meeting of one's expectations. Customer satisfaction is the feeling or attitude of a customer towards a product or service after it has been used. A review of the existing literature indicates that there can be potentially many antecedents of customer satisfaction, as the dimensions underlying satisfaction judgements are
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global rather than specific (Taylor and Baker, 1994; Patterson and Johnson, 1993; Rust and Oliver, 1994). The customer satisfaction literature has paid a great deal of attention to the confirmation paradigm, which concerns the comparison of product or service performance expectations and evaluations (Goode and Moutinho, 1995). The confirmation model treats satisfaction as a meeting of customer expectations (East, 1997; Oliver 1989) and is generally related to habitual usage of products (East, 1997). However, research on customer satisfaction has moved towards the disconfirmation paradigm which views satisfaction with products and brands as a result of two cognitive variables: prepurchase expectations and disconfirmation (Churchill and Surprenant, 1982; Peter and Olson, 1996). According to Peter and Olson (1996), "prepurchase expectations are beliefs about anticipated performance of the product; disconfirmation refers to the differences between prepurchase expectations and post-purchase perceptions" (p.509). In an earlier study, Churchill and Surprenant (1982) reported that disconfirmation positively affected satisfaction. That is, when subjects perceived the product performing better than expected, they were more satisfied (Churchill and Surprenant, 1982). Further empirical research supports the notion that satisfaction is caused by expectations and requires considerable cognitive effort on the part of customers (Bearden and Teel, 1983; Moutinho and Goode, 1995; Cadotte et al., 1987). In the service literature, strong emphasis is placed on the importance of service quality perceptions and the relationship between customer satisfaction and service quality (see for example Bitner and Hubbert, 1994; Cronin and Taylor, 1992; Taylor and Baker 1994; Rust and Oliver, 1994). Service quality has been described as a form of attitude that results from the comparison of expectations with performance (Cronin and Taylor, 1992; Parasuraman et al., 1985). Gronroos (1982) argued that customers, while evaluating the quality of a service, compare the service they expect with perceptions of the services they actually receive. It has been argued that the quality of service is not a unidimensional construct. Rather, service quality incorporates various dimensions that relate to both core and augmented service offerings (Bitran and Lojo, 1993; Gronroos, 1984; Lewis, 1993). Parasuraman et al. (1985; 1988) initially described five dimensions of service quality: reliability, tangibles, responsiveness, assurance and empathy. Parasuraman et al. (1991a) argued that reliability was mainly concerned with the outcome of service whereas tangibles, responsiveness, assurance and empathy were concerned with the service delivery process. The customers not only judge the accuracy and dependability (i.e. reliability) of the delivered service but they] also judge the other dimensions as the service is being delivered (Parasuraman et al., 1991a). Customer satisfaction can thus be based not only on
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the judgement of customers towards the reliability of the delivered service but also on customers' experiences with the service delivery process. On the basis of their review of service quality literature, McDougall and Levesque (1994), however, argued that there were two overriding dimensions to service quality. The first one being the core or outcome aspects (contractual) of the service, and the second being the relational or process aspects (customer-employee relationship) of the service.

It is generally accepted that customer satisfaction often depends on the quality of product or service offering (Anderson and Sullivan, 1993; Levesque and McDougall, 1996). For this reason, research on customer satisfaction is often closely associated with the measurement of quality (East, 1997). Thus, both service quality and customer satisfaction share a close relationship, though they are normally conceptualise as unique (or separate) constructs (Bitner and Hubbert, 1994; Cronin and Taylor, 1992; Patterson and Johnson, 1993; Taylor and Baker, 1994). There is some empirical evidence suggesting that service quality is a causal antecedent of customer satisfaction (see for example, Cronin and Taylor, 1992; Woodside et al., 1989). However, there is very little empirical research demonstrating the importance of service quality dimensions in determining customer satisfaction (Fisk et al., 1993; Levesque and McDougall, 1996). In a recent study, Levesque and McDougall 1996 found that the performance of the service provider on core and relational dimensions of service was an important driver for customer satisfaction in retail banking in the UK. However, in a non-Western context, the link between core and relational dimensions of service and customer satisfaction is yet to be established empirically. The current paper aims to fill this gap in the literature.

Moreover, the literature dealing with services outlines some major characteristics of service that make them unique and different from physical products (Bitran and Lojo, 1993; LeBlanc and Nguyen, 1988; Parasuraman et. al., 1985; Zeithaml and Bitner, 1996). Services are often characterized by their intangibility, inseparability, heterogeneity, and perishability. The implications of these characteristics are that it is often difficult for customers to evaluate services at preconsumption, consumption and post consumption stages of the consumer decision-making (Legg and Baker, 1996). Because of the intangible nature of services, it becomes difficult for an organization to understand how its customers perceive and evaluate the quality of its services (Parasuraman et. al., 1985; Zeithaml, 1981). Customers, however, make inferences about the service quality on the basis of tangibles (the buildings, the physical layout etc.) that surround the
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service environment. Support for this argument comes from empirical evidence suggesting that the tangible, physical surroundings of the service environment can have a significant impact on customers affective responses and their behavioral intentions (Wakefield and Blodgett, 1999). Dabholkar et al. (1996) reported similar findings that the tangible aspects of department stores do influence customers' perceptions of service quality. Hence, there are reasonable grounds to assume that customer satisfaction is also related to customers' evaluation of physical surroundings of the service environment.

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CHAPTER 3

BANK PROFILES

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3. BANK PROFILES
3.1 AXIS BANK
Indias third largest private-sector bank

Market View of Axis Banks Stock Price (17th March, 2011)

Current Stock Price: Rs. 1292.70 52 Week-High Stock Price: Rs. 1608 52 Week Low Stock Price: Rs. 1112 Latest P/BV: 3.30 Latest P/E: 16.93 Axis Bank, formerly UTI Bank, is Indias third largest private-sector bank after the significantly larger ICICI Bank and HDFC Bank. It is engaged in Large & Mid Corporate Banking, Retail Banking, SME banking, Agri-business banking, International Banking, treasury etc. It has the largest EDC (Electronic Data Capturing) network, the third largest ATM network and the fourth largest base of debit cards in India. As of 31st December, 2010 it had a very wide network of more than 1281 branches including 169 Service Branches and over 5303 ATMs. With a customer base of over 150 lakh, it also has overseas branches at Singapore, Hong Kong and Dubai and representative offices at Shanghai and Dubai. Since its inception, Axis Bank has been jointly promoted by UTI-I, LIC, GIC and four other PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. Promoters

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hold 37.35% stake in Axis Bank as on 31st December, 2010 out of which UTI-I holds 23.72% stake, LIC 9.58%, and GIC 1.87%.

Above charts show, Axis Banks net advances are skewed towards the corporate segment, of which the financial industry, infra, power, and metal together make up around 42%. Only 20% of the net advances are in retail banking, with a major exposure to the housing segment followed auto loans. Each of them (corporate and retail banking) contribute 23% to the net revenue of the Bank. How has the financial performance of Axis Bank Ltd been? The net interest income (NII) of Axis Bank, over the last 10 years, has rocketed by 54.8% CAGR from Rs. 98 Cr. in FY01 to Rs. Rs. 5004 Cr. in FY10; and its total income has grown by 34.9%CAGR. During the same period its book value and EPS have jumped by 37% and 28% resp.
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The bank has maintained its net profit to total fund ratios between 1 and 1.25 during FY05 to FY08, whereas in the last two financial years, this ratio has been above 1.25. This increasing trend of net profit to total fund ratio shows that it has continuously increased its efficiency of utilizing funds. The non-performing assets (NPA) to net advances ratio has also shown a decreasing trend from 3.46% in FY02 to 0.4% in FY10 which shows the bank has continuously increased its assets quality. It has also maintained a very good capital adequacy ratio (CAR) of 15.8% at the end of FY10, well above the RBI guide line of 9%, which indicates that it can easily cover all the associated risks. Hence, the 10 YEAR X-RAY of Axis Bank is Green (Very Good).

Why are these parameters necessary and sufficient for a banks analysis? Click here to know What can we expect in the future? Here is the analysis of Axis Bank Ltd.. In the short-term Axis Banks target for FY11: Business growth(Advances + Deposits) of 25% Opening 200-250 new branches and 1000 new ATMs

Axis Bank has reported a strong performance in December, 2010 quarter:

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It has shown a 36% jump in the Net Profit at Rs. 891.36 Cr. and a 28% rise in the Net Interest

Income to Rs. 1733.12 Cr. on the back of robust 46% credit growth. The other income of the Bank inched up by 16% to Rs. 1147.71 Cr. mainly on the back of

21% jump in the fee income at Rs. 968 Cr. CAR has decreased to 12.46% in Q3 FY11, compared to 16.8% in the same quarter last year Its Net Interest Margin (NIM) stood at 3.81% during Q3 FY11, compared to 4% during

Q2FY10 (much higher than the industry standard of 2-2.5%) The net NPAs of Axis Bank stood at 0.29% in Q3 FY11, which is amongst the lowest in the

banking industry; the provision coverage ratio stood at 82.69%, much higher than the regulatory requirement of 70%

Advances of the Bank have reported a strong growth of 46% on y-o-y basis and 12% on qo-q basis to Rs. 123547 Cr. in the December 2010 quarter. The growth in the advances was driven by 69% jump in the corporate segments at Rs. 70518 Cr. and 33% rise in the retail segment at Rs. 25204 Cr. Agri& microfinance loan book grew by 24% to Rs. 10772 Cr. and SME by 9% to Rs. 17053 Cr. Exposure to the Microfinance institutions is around 1% of advance book and that of telecom (mainly 2G license advances) constitutes 6% of total advance book. For the nine months ended December 2010, Axis Bank has reported 37% rise in the NII at Rs 4861.99 Cr., 19% in fee-based income at Rs. 2559 Cr., and 6% in the other income at Rs 3181.73 Cr. compared to that of corresponding quarter last year respectively. In FY11, so far, it has opened 142 branches and 1010 ATMs. Thus, the bank is on line to achieve its target for FY11.

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Increasing cost of funds is a cause for concern: The RBI has increased the Repo rate, Reverse repo rate, and CRR in the last one and a half year in several phases to control inflation. This has lead to lower loanable fund availability in the bank and continuous increase in cost of funds, which can be seen in the chart. As, the inflation rate is still on the higher side, tight monetary policy is expected to continue in the short-term. So, we expect that the cost of funds will also increase further in the short-term, which will keep margins under pressure. RBI, recently, has increased provisioning percentage on housing, real estate, and many other types of loans. This will affect the profitability of the bank because, in the retail segment, it finances almost 70% advances in housing. Considering above factors, we expect that the short-term future prospects of Axis Bank will be Orange (Somewhat Good) In the long-term Strength of Axis Bank: It is Indias third largest private bank, with 1281 branches and 5303 ATMs, and a

customer base of over 150 Lakh as on 31st Dec, 2010 It has the largest EDC network, the third largest ATM network, and the fourth largest

base of debit cards in India. It already has branches in Singapore, Hong Kong and Dubai International Financial Centre. About 14% of the banks asset book is from international operations. It is further going to set up a subsidiary in London and upgrade its representative office in Shanghai to a branch. 100% core banking facilities with advanced technology On-line trading facilities in alliance with Geojit BNP Paribas

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In Jan 2011, Axis Bank, , announced the launch of AxisDirect, an online trading platform a product of its wholly-owned subsidiary, Axis Securities and Sales Ltd. AxisDirect will offer trading in cash,

derivatives, IPO segments through NSE and BSE; and provide well-researched information about various corporate, access to independent third-party research, stock research and analysis tools. Axis Bank has maintained a very good Current Account Savings Account (CASA) ratio, above 40% in the last three years, which is higher than the industry standard of 35-40%. CASA plays a very significant role in keeping cost of funds low and margins high. Only four other banks SBI, PNB, HDFC Bank, and ICICI Bank have more that 40% CASA ratio. Product strategy designed to benefit customers: To beat the market, Axis Bank is adopting different product strategies. Recently, it has extended the repayment period of the standard home loan to the maximum tenure of 25 years. In the step down product (a type of home loan product), the customer has to pay a higher EMI when the combined family income is higher and a lower EMI when the family income has reduced over a period of time. Apart from this, the Bank has given option to its customers to close the loan before its maturity with no prepayment penalty.

Banking Sector Heading towards a high-performing sector: The banking sector is poised to grow in line with the growth of the economy. The Indian economy is expected to have a high growth in the long-term and so is the Indian banking sector, which is currently in consolidation stage. According to Mckinsey Report on India Banking 2010, The banking index has grown at a compounded annual rate of over 51% since April 2001 as compared to a 27% growth in the market index for the same period (2001 to 2010). The report says that the Indian banking sector is heading towards a high-performing sector. Axis Bank,
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being the third largest private bank in India, is ready to take full advantage of this growth opportunity. Financial Inclusion Program: Under Financial Inclusion Program, RBI is taking initiative to provide banking services at affordable costs to the weaker sections of society or the unbanked segment, which does not have any access to the formal banking system. As of now, it is estimated that 60% of the Indian population does not have access to formal banking facility and RBI is keen on achieving 100% financial inclusion for sustaining equitable growth. Axis Bank is taking following initiatives under this Program:

Targets to cover 12,000 villages in the next 5 years: Axis Bank plans to cover 5,500 villages for financial inclusion by March 2011 and scale it up to 12,000 villages in five years time. It is looking at opening 18-lakh no-frills accounts, Rs. 40 Cr. of deposits, and Rs. 10 Cr. of advances. The 18-lakh account would include 12-lakh accounts that they have already opened for government-sponsored scheme. The bank is looking at several low-cost delivery models such as smart card, mobile banking and point of transaction device.

Tie up with Janalakshmi Social Services to tap urban poor: To tap unbanked population in urban areas, Axis Bank has tied up with a Bangalore-based microfinance institution, Janalakshmi Social Services. Janalakshmi will use its client base to provide banking services of Axis Bank and will work as business correspondent to sell other products of the Bank. This service would be spread from Bangalore to 50 other cities in the near future.

MOU with Idea to test a Branchless Banking Model: Axis Bank has signed a Memorandum of Understanding with Idea Cellular to test a Branchless Banking model through a mobile enabled remittance pilot. Idea will act as a Business Correspondent of Axis Bank to provide an entire range of financial products and services offered by the Bank, through the mobile operators retail outlets. Ideas network will help Axis Bank gain access to widespread distribution reach and a low-cost delivery channel for offering financial products and services, based on the mobile platform. On the other hand, Idea
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can offer value-added services to its customers by offering financial products and services. There is still a question mark on the viability of Financial Inclusion Program which primarily targets the low-income group. This leaves little scope of high margins under this program. However, this initiative is expected to help in economic development, and hence is expected to be fruitful in the long-term. Diversified into non-banking financial services: Axis Bank has started non-banking financial services to carry out investment and lending activities with a focus on infrastructure and other activities. It has five wholly-owned subsidiaries: 1. Axis Securities and Sales Ltd. to market credit cards , retail asset products and online trading facilities 2. Axis Private Equity Ltd. to manage equity investments & provide venture capital to

support businesses 3. Axis Trustee Services Ltd. to engage in trusteeship activities 4. Axis Asset Management Companies Ltd. to carry on the activities of managing mutual Axis Mutual Fund Trustee Ltd. to act as the trustee for the mutual fund business

fund business 5.

Acquisition of Enams investment banking business expected to fill the gap in their portfolio: Axis Bank has acquired Enams investment banking and institutional broking businesses for R.s 2,064 Cr. in a stock-swap deal. Pursuant to the scheme and in consideration for the proposed demerger, Enam shareholders will receive 5.7 shares of Axis Bank for every 1 share held in Enam; translating into an approximately 3.37% shareholding in Axis Bank. While the acquisition appears to be at a slight premium, it will help Axis Bank fill a key gap in portfolio, increase feebased income and bring significant long-term benefits. Also, as these businesses are profitmaking and enjoy one of the highest margins in the industry, they will contribute to Axis Banks profits and will be earnings accretive. Risks & Concerns
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Low exposure in high-margin retail banking New Bank License would hamper banks profits: RBI is providing banking licenses to

selected NBFCs from 2011. This would increase competition among banks which would consequently hampers their profits RBI, in Bancon 2010 held in Mumbai, has indicated that Indian Banks should operate

at lower margin, in line with global standard. They should decrease lending rate and increase savings rate to help in achieving double digit economic growth. RBI may also increase Capital Adequacy Ratio benchmark from 2013. As the banks have mainly financial assets, they have to manage several risks such as credit

risk, market risk, liquidity risk, country risk etc. So, banking business, as a whole, is considered as risky business Government regulation increases uncertainty in the banking sector: The Government of

India frequently changes monetary policies by changing CRR, repo rate, reverse repo rate etc. to maintain stability in the economy. It increases uncertainty in the banking sector. Considering the strong position that Axis Bank has established for itself in the banking industry and its recent acquisition of Enam, we can expect that the long-term future prospects of Axis Bank will be Green (Very Good).

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3.2 ICICI BANK

Countrys largest private sector lender ICICI Bank (ICICIBANK.NS : 904.9 -23.8) grew its net profit by 16.8% to Rs 1,026 crore for the quarter ended June 2010 riding on lower nonperforming assets (NPA) and operating expenses. It had posted a profit of Rs 878 crore in the year-ago period. However, the banks total income fell 18.7% to Rs 7,493 crore during the quarter against Rs 9,223 crore in the corresponding quarter last year. We have now started growing our assets. Even during this quarter, while the growth appears to be only about 7%, our corporate book has grown by almost 30%, MD and CEO ChandaKochhar said. There was a healthy growth in home and car disbursements and cash accruals also looked healthy. Approvals will translate into disbursements in the second half of calendar year 2010, she added. The bank is expecting a 20% growth in advances during the current fiscal. Its net non-performing assets decreased 25% to Rs 3,514 crore on June 30, 2010 from Rs 4,667 crore last year, while the net non-performing asset ratio decreased to 1.62% during the reporting period from 2.19% in the year-ago quarter. The banks provisioning coverage ratio was 64.8% during the period as compared to 51.1% in the corresponding period of the last fiscal.

Operating expenses (including direct marketing agency expenses) decreased 2% to Rs 1,461 crore from Rs 1,494 crore in the corresponding quarter of the last fiscal while provisions decreased 40% to Rs 798 crore from Rs 1,324 crore. Kochhar said the banks net interest margin is pegged at 2.8%. She, however, did not reveal the cost of funds and yield on advances. We would like to maintain our NIM at this level, she said. Net interest income of the bank in the reporting period increased marginally to Rs 1,991 crore compared to Rs 1,985 crore in the same quarter a year ago while non-interest income reduced to Rs 1,680 crore from Rs 2,090 crore. Fee income increased 7% to 1,413 crore from 1,319 crore in the year-ago period. Though the banks total deposits have fallen to Rs 2,00,913crore during the reporting period as compared to Rs 202,017 crore as on March 31, 2010, its CASA (Current Account and Savings Account) deposits increased 32 % to Rs 84,618 crore as on June 30, 2010 from Rs 63,977 crore last year. We have reduced our high-cost term deposits in recent months. We would like to grow our deposits again as the demand for resources have gone up, said Kochhar. The banks loan book increased to Rs 184,378 crore compared to Rs 181,206 crore as on March 31, 2010.
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ICICIs treasury income, generated mainly from investments in government securities, declined drastically to Rs 104 crore in the quarter as compared to Rs 714 crore in the year-ago period. Capital adequacy stood at 20.2 % while provisioning coverage ratio increased to 64.8 % from 51.1 % in the first quarter last fiscal. The bank will continued to invest in expansion of its branch network to enhance its deposit franchise and create an integrated distribution network for both asset and liability products. We are yet to finalise how many branch licenses we would seek from the Reserve Bank for this year, Kochhar said. ICICI Bank currently has branch network of 2,016 branches. Asked to comment on the delay in acquisition of Bank of Rajasthan, Kochhar said, Our earlier acquisitions had also taken time to be completed.

Performance ICICI Bank reported PAT of Rs1452 crore up 44.4% y-o-y and 1.1% q-o-q in linewith our expectations; driven by core earnings and lower provisioning expenses.Net interest income is up by 23.4% y-o-y and 8.6% q-o-q driven by 19.4% y-o-yloan growth and 10bps margin expansion on q-o-q basis. Fee income saw strongtraction during the quarter, grew 17.8% y-o-y and 10.2% q-o-q driven by higheractivity in wholesale and international businesses. Asset quality further improvedduring the quarter. Provision coverage ratio stood at healthy level of 76%despite 17.8% decline in provisioning expenses during the quarter. Expandedbranch network kept steady CASA growth, resulting into 45.1% CASA ratio.Consolidated earnings up 16.9% y-o-y to Rs 1568 crore driven by core operatingperformance including one off of Rs200 crore loss in general insurance business. Strong core operating performance: Net interest income is up 23.4% y-o-yand 8.6% q-o-q driven by strong sequential loan growth at 5% and 10bpsmargin improvement. Fee income has continued to show good momentumgrowing at 17.8% y-o-y and 10.2% q-o-q to Rs 1,791 cr driven by wholesale andinternational businesses. Treasury reported Rs196 crore loss vsRs 196 croregains in Q4FY10 on account of MTM on security receipt portfolio during thequarter. Provisioning expenses declined 61.2% y-o-y and 17.4% q-o-q due tosharp improvement in asset quality. The bank has excess standard assetprovision amounting to Rs. 400 crore. We expect NII to grow 18% CAGR in linewith loan book growth and stable margins. Strong NII growth, healthy feeincome growth, improving branch productivity, lower loan loss provision willdrive

27

earnings in medium term in our view. We expect earnings to grow 20%CAGR over FY11FY13E driven by core operating performance. Strong sequential loan growth: Loan Book expanded 19.4% y-o-y(excluding BOR 16% y-oy) and 4.7% q-o-q primarily driven by corporate loanbook. Corporate loan book grew 71% y-o-y and 5% q-o-q contributing 66% tototal loan book on incremental basis. Retail loan book saw subdued growth at6% y-o-y during the quarter. SME loan book grew at healthy pace of 25% y-oyreflecting better macro environment for growth in these segments. We expectloan book to grow 19.8% over FY11-FY13E driving NII growth.

Asset quality trends continue to improve: Broad asset quality trends haveshowed further improvement as net addition to Gross NPA was almost zeroduring the quarter. Gross NPA and Net NPA stood at 4.47% and 1.11%respectively with provision coverage ratio at 76%.

Consolidated earnings growth: Consolidated PAT increased 17% y-o-y despiteof lower contribution from capital market linked businesses and loss in generalinsurance business.

Valuation & Recommendation: ICICI Bank has performed well on most of theoperating parameters during the quarter. Robust NII growth, strong fee incomegrowth and lower loan loss provisioning were key drivers for earning growthduring the quarter. Focus on profitable growth, improving liability franchise,better branch productivity and improving asset quality emerged key mediumterm positive trends for the bank. At Rs 1,031, the stock is trading at 16x FY12earnings and 1.8x FY12 core book, attractive risk reward in our view. Wemaintain our BUY rating on the stock with target price of Rs1325 (upside28.5%).

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29

3.3 STATE BANK OF PATIALA

State Bank of India is an India-based bank. In addition to banking, the Company, through its subsidiaries, provides a range of financial services, which include life insurance, merchant banking, mutual funds, credit card, factoring, security trading, pension fund management and primary dealership in the money market. It operates in four business segments: Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes the investment portfolio and trading in foreign exchange contracts and derivative contracts. The Corporate/Wholesale Banking segment comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group and Stressed Assets Management Group. The Retail Banking segment consists of branches in National Banking Group, which primarily includes personal banking activities, including lending activities to corporate customers having banking relations with branches in the National Banking Group. The rich heritage of State Bank of Patiala dates back to the year 1917, when it was founded by Late His Highness Bhupinder Singh, Maharaja of erstwhile Patiala state, with one branch by the name of 'Chowk Fort, Patiala' to begin with. The Bank, then known as the 'Patiala State Bank' was state owned and setup for the explicit purpose of fostering growth of agriculture, trade and industry. The constitution, scope and operations of the Bank underwent a sea change with the formation of the Patiala and east Punjab States Union (PEPSU) in 1948.The Bank was then reorganized and brought under the control of Reserve Bank of India. It was christened as the Bank of Patiala. Another milestone in history of the Bank was its becoming a subsidiary of the State Bank of India on 1st April,1960 when it was named as the State Bank of Patiala and since then it has grown significantly both in size and volume of business. During these glorious years, the Bank has been playing an important role in banking sphere. Bank has now added a golden chapter to its history by fully networking all its brances on Core Banking Solutions on 08.08.2005 and become the first fully networked Public Sector Bank in the country. State Bank of Patiala, headquartered at Patiala in Punjab, has shown an all-round performance for the financial year 2010-11.

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According to a senior official, the bank has recorded a quantum jump in its gross profit for the year ended March 31, 2011, at Rs 2,122.46 crore as against Rs 1,402.6 crore last year, registering a growth of 51.33 per cent. In fact, the gross profit of the bank has doubled during the two-year period from March 2009 to March 2011. The banks operating profit increased by 34.53 per cent from Rs 1,307 crore to Rs 1,759 crore. The net profit for the year ended March 31, 2011 was Rs 652.96 crore as against Rs 550.89 crore for the previous year thereby registering a growth of 18.53 per cent. The Net Interest Income of the Bank has also increased by 52.10 per cent. Total business of the bank has crossed Rs 1,20,000crore as on March 31, 2011. Total deposits stood at Rs 68,066.05 crore and advances at Rs 51,433.20 crore. The Bank is BASEL-II Compliant with Capital Adequacy Ratio of 13.41 per cent, as against the regulatory requirement of 9 per cent. The TIER-I capital is 8.65 per cent of Risk Weighted Assets (RWA). Net Interest Margin of the Bank has improved from 2.44 per cent to 3.55 per cent, registering a growth of 111 basis points. Earnings per share of the Bank has also increased from Rs 200 to Rs 222 for the last financial year. The Returns on Assets is 0.80 compared to 0.72 as on last financial year. The business per employee of the Bank increased from Rs. 895.21 lakh to Rs 956.30 lakh and the profit per employee increased from Rs 4.44 lakh as on March 31, 2010 to Rs 5.20 lakh. During the year 2010-11, the Bank has opened 123 branches and has a network of 1,008 branches covering 20 states and union territories. In the coming year the Bank proposes to open 60 more branches. The Bank has achieved benchmarks stipulated by the government of India in Priority Sector advances, Weaker Section advances, Agricultural lending and percentage of Micro segment advances out of total MSE advances. The Bank is in the fore front of financing agricultural activities in the state. The Bank gives loans to farmers at the rate of 4 per cent up to a loan amount of Rs 3.00 lakh under Kissan Credit Card Scheme, who repay the loans in time. Besides this the Bank also finances uptoRs 10.00 lakh under Kissan Gold Card Scheme for general needs of the farmers at attractive interest rates. Similarly, Bank gives loan to people living below the poverty line under Differential Rate of Interest scheme at 4 per cent interest. The Bank will soon start sale of Gold coins and proposes to introduce the facility of ASBA expand to help investors. For 1QFY2011, State Bank of Indias (SBI) standalone net profit grew 25.1% yoy and 56.1% qoq, which exceeded our estimates on account of better-thanestimated NII and lower operating expenses. Robust operating performance with reasonable asset quality was the key highlight of the result. We maintain an Accumulate rating on the stock.
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Robust operating performance: The banks net advances increased 20.4% yoy and 3.4% qoq to Rs6,53,220cr, while total deposits grew 6.8% yoy and 1.4% qoq to Rs8,15,297cr during 1QFY2011. Reported net interest margin (NIM) improved by 22bp qoq and 88bp yoy to 3.18% during the quarter despite a hit of 12bp due to change in the method of calculation of SA interest. The margin expansion was underpinned by improvement in the CASA ratio to 47.5% as of 1QFY2011 from 38.5% as of 1QFY2010 and from 46.7% as of 4QFY2010 coupled with shedding of high-cost bulk deposits. Gross NPAs were up by 6.6% qoq and net NPAs increased 1.9% qoq to Rs20,825cr and Rs11,074cr, respectively. NPA provision coverage ratio including technical write-offs improved to 60.7% compared to 59.2% as of 4QFY2010.

Outlook and Valuation: Due to strong CASA and fee income, SBIs core RoEs have improved over the past few years and unlike virtually all other PSBs, actual FY2010 RoEs are below core levels due to low asset yields, providing scope for upside as the CD ratio improves and yields normalise to sectoral averages. SBI is trading at 2.1x FY2012E ABV while excluding value of insurance and capital market subsidiaries, it is trading at 1.7x FY2012E ABV v/s its 5-year range of 1.3-2.0x and median of 1.7x. We believe this provides reasonable upside, especially in light of its dominant position and reach, strong growth and superior earnings quality. We maintain an Accumulate on the stock, with a Target Price of Rs3,185.

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Advances grow in line with industry, deposits growth lags

During the quarter, net advances of the bank increased 20.4% yoy and 3.4% qoq to Rs6,53,220cr, underpinned by strong growth in large corporate advances of 34.7% yoy and growth in home loans of 29.8% yoy. Loan book of the bank continues to be well diversified with no segment accounting for more than 21% of the total loan book. The growth in advances was driven by the telecom related lending (Rs7,000cr) and upturn in textiles, iron and steel, auto,
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infrastructure and gems &jewellery industry. Going forward, the credit demand from the large and mid corporate segments is expected to be strong, with sanctions in pipeline of Rs14,798cr and Rs7,791cr, respectively.

Deposits of the bank went up from Rs7,63,563cr in 1QFY2010 to Rs8,15,297cr in 1QFY2011 recording a yoy growth of 6.8%, driven by CASA growth of 28.9% and retail term deposits growth of 10.2%, despite shedding of high-cost bulk deposits by 51.4%. Current deposits increased 12.5% yoy, while savings deposits rose 33.9% yoy. Savings bank deposits grew at an average of Rs9,232cr per month during the quarter to Rs71,806cr as of 1QFY2011 leading to an improvement in CASA ratio from 38.5% as of 1QFY2010 to 47.5% as of 1QFY2011 (46.7% in 4QFY2010). As a result, NII increased by 45.4% yoy and 8.7% qoq to Rs7,304cr in 1QFY2011.

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NIM continues its ride on growth path The banks reported NIM has been in an upward trend since hitting a low of 2.30% in 1QFY2010 from which it has improved by 88bp to 3.18% in 1QFY2011. Even on a sequential basis, NIM has expanded by 22bp despite the 12bp hit due to the switch in calculation method of savings deposits interest. The improvement in NIMs was driven by increase in the CD ratio to 80.1% (from 78.6% in 4QFY2010), shedding of bulk deposits and increase in CASA ratio.

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Reasonable asset quality SBIs asset quality suffered slightly during the quarter as gross NPAs rose 6.6% qoq to Rs20,825cr, while net NPAs increased 1.9% qoq to Rs11,074cr partly due to the net increase in gross NPAs from agricultural advances of Rs683cr, which included Rs354cr towards the Agri Debt Waiver scheme. The gross and net NPA ratio remained steady sequentially at 3.1% and 1.7%, respectively.

The gross slippages during the quarter were Rs4,081cr, which came primarily from the agri, retail and SME portfolios. The annualised slippage ratio stood at 2.6% compared to 2.2% in FY2010. The banks corporate and SME portfolio accounted for more than 56.0% of the total gross NPAs of Rs20,825cr. The provision coverage ratio including technical write-offs improved from 59.2% as of 4QFY2010 to 60.7% as of 1QFY2011.

Out of the cumulative standard restructured assets under the RBI Special Dispensation Scheme which stood at Rs16,796cr as of 4QFY2010, Rs158cr turned into NPAs during the quarter taking the cumulative slippages from restructured book to Rs1,774cr (10.6% of the restructured loan book). The banks restructured loans outside the RBI scheme stood at Rs12,900cr, indicating cumulative restructuring/net worth of 43.1% compared to sector average of 68.3%.

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Provisioning expenses rose substantially on a yoy basis to Rs1,551cr in 1QFY2011, on the back of higher NPA provisions (Rs1,733cr) and lower write-back of investment provisions (Rs298cr).

Operating expenses under control Operating expenses declined 19.5% qoq and 1.2% yoy to Rs4,859cr driven by a 14.4% qoq and 9.9% yoy fall in staff expenses. Decrease in operating expenses coupled with robust operating performance improved the cost-to-income ratio to 44.2% compared to 53.7% in 4QFY2010 and 57.2% in 1QFY2010. There was a write-back of Rs845cr from excess provision on wage revision during the quarter. The bank made a provision of Rs1,100cr for gratuity during 1QFY2011 against the estimated liability of Rs2,200cr for FY2011E for the increase in gratuity ceiling.

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Comfortable capital adequacy The bank has continued to maintain comfortable capital adequacy ratio of above 13.5%. As of 1QFY2011, the overall capital adequacy stood at 13.54% with tier I forming more than 72.3% of the total CAR. The bank is likely to come out with a rights issue by the end of FY2011 to sustain the CAR at comfortable levels. The government has already approved diluting its stake to 51% from the existing stipulated dilution level of 55%. This provides significant headroom for dilution with the existing government holding at 59.4%.

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Muted non-interest income, supported strongly by fee income Total non-interest income growth was muted at 3.4% yoy on account of 75.5% yoy decline in profit on sale of investments. Non-interest income excluding profit on sale of investments was up by 23.0% yoy. Fee income went up 29.4% yoy, driven by robust growth in loan processing charges, non-fund based business, government business and cross-selling. Forex income increased 6.8% yoy to Rs503cr. Growth in other non-interest income was driven by the 42.0% growth in recoveries from written-off accounts.

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Outlook and Valuation Due to strong CASA and fee income, SBIs core RoEs have improved over the past few years and unlike virtually all other PSBs, FY2010 RoEs are below core levels due to low asset yields, providing scope for upside as the CD ratio improves and yields normalise to sectoral averages. At CMP, SBI is trading at 2.1x FY2012E ABV while excluding value of insurance and capital market subsidiaries, it is trading at 1.7x FY2012E ABV v/s its 5-year range of 1.3-2.0x and median of 1.7x. We believe this provides reasonable upside, especially in light of its dominant position and reach, strong growth and superior earnings quality. We maintain an Accumulate on the stock, with a Target Price of Rs3,185.

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3.4 PUNJAB NATIONAL BANK

With over 60 million satisfied customers and more than 5100 offices including 5 overseas branches, PNB has continued to retain its leadership position amongst the nationalized banks. The bank enjoys strong fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart from offering banking products, the bank has also entered the credit card, debit card; bullion business; life and non-life insurance; Gold coins & asset management business, etc. PNB has earned many awards and accolades during the year in appreciation of excellence in services, Corporate Social Responsibility (CSR) practices, transparent governance structure, best use of technology and good human resource management.

Since its humble beginning in 1895 with the distinction of being the first Swadeshi Bank to have been started with Indian capital, PNB has achieved significant growth in business which at the end of March 2011 amounted to Rs 5,55,005 crore. PNB is ranked as the 2nd largest bank in the country after SBI in terms of branch network, business and many other parameters. During the FY 2010-11, with 39.16% share of CASA to domestic deposits, the Bank achieved a net profit of Rs 4433 crore. Bank has a strong capital base with capital adequacy ratio of 12.42% as on Mar11 as per Basel II with Tier I and Tier II capital ratio at 8.44% and 3.98% respectively. As on March11, the Bank has the Gross and Net NPA ratio of 1.79% and 0.85% respectively. During the FY 2010-11, its ratio of Priority Sector Credit to Adjusted Net Bank Credit at 40.67% & Agriculture Credit to Adjusted Net Bank Credit at 19.30% was also higher than the stipulated requirement of 40% & 18% respectively. The Bank has been able to maintain its stakeholders interest by posting an improved NIM of 3.96% in Mar11 (3.57% Mar10). The Earning per Share improved to Rs 140.60 (Rs 123.86 Mar10) while the Book value per share improved to Rs 661.20 (Rs 514.77 Mar10). Punjab National Bank continues to maintain its frontline position in the Indian banking industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in terms of number of branches, Deposit, Advances, total Business, Assets, Operating and Net profit in the year 2010-11. The impressive operational and financial performance has been brought about by Banks focus on customer based business with thrust on CASA deposits, Retail, SME &Agri Advances and with more inclusive approach to banking; better asset liability management; improved margin management, thrust on recovery and increased efficiency in core
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operations of the Bank. The performance highlights of the bank in terms of business and profit are shown below: Rs. In Crore Parameters OperatingProfit NetProfit Deposit Advance TotalBusiness Mar'09 5690 3091 209760 154703 364463 Mar'10 7326 3905 249330 186601 435931 Mar'11 9056 4433 312899 242107 555005 CAGR(%) 26.16 19.76 22.14 25.10 23.40

Bank always looked at technology as a key facilitator to provide better customer service and ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit. The Bank has made rapid strides in this direction. All branches of the Bank are under Core Banking Solution (CBS) since Dec08, thus covering 100% of its business and providing Anytime Anywhere banking facility to all customers including customers of more than 3200 rural & semi urban branches. The Bank has also been offering Internet banking services to its customers which also enables on line booking of rail tickets, payment of utilities bills, purchase of airline tickets, etc. Towards developing a cost effective alternative channels of delivery, the Bank with 5050 ATMs has the largest ATM network amongst Nationalized Banks. With the help of advanced technology, the Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. With its policy of inclusive growth, the Banks mission is Banking for Unbanked. The Bank has launched a drive for biometric smart card based technology enabled Financial Inclusion with the help of Business

Correspondents/Business Facilitators (BC/BF) so as to reach out to the last mile customer. The Bank has started several innovative initiatives for marginal groups like rickshaw pullers, vegetable vendors, dairy farmers, construction workers, etc. Bank has launched a welfare scheme of adoption of village viz., PNB VIKAS. Under the scheme, Bank has selected 117 villages (60 in lead districts and 57 in non lead district) in different circles for all-round improvement in the living standards of the villagers. Besides, Bank has formed PNB PRERNA, an association of the wives of the Banks senior management. The association through its voluntary initiatives has undertaken activities like distribution of food to the poor and needy, provision of computers, books, stationary items to poor girl students at various orphanages and schools etc.
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Backed by strong domestic performance, the Bank is planning to realize its global aspirations. Bank has opened one branch each at Kabul and Dubai, two branches at Hong Kong and an Off Shore Banking Unit at Mumbai. In addition to the above, Bank has Representative offices at Almaty, Dubai, Shanghai and Oslo, a wholly owned subsidiary in UK with 7 branches and a subsidiary each in Kazakhstan & Bhutan, and joint venture with Everest Bank Ltd. Nepal. During the year, Bank acquired majority equity stake of 63.64% in Dana Bank of Kazakhstan.

For 3QFY2011, PNB posted moderate net profit growth of 1.4% qoq and 7.8% yoy to Rs.1,090cr, in line with our estimates of Rs.1,100cr. However, the bank reported higher provisioning expenses, over 30% above estimates, which were offset by higher non-interest income. We recommend Accumulate on the stock. Strong business growth but pressure on asset quality persists: During the quarter, advances grew by 6.0% qoq (29.8% yoy) to Rs.221,252cr, while deposits grew by 5.7% qoq (23.5% yoy) to Rs.288,873cr. Asset quality continued to be under pressure, with gross NPAs rising by 12.8% qoq and net NPAs increasing by 10.5% qoq. On a qoq basis, the annualised slippage ratio increased by 14bp to 2.1%. The CASA ratio dropped to 39.1% from 40.6% in 2QFY2011. Yield on funds increased by 10bp qoq to 8.25%, aided by the 100bp increase in base rate, which was higher-than-peer average of ~70bp, while the cost of funds increased by 15bp sequentially to 4.54%. Reported NIMs expanded by 7bp sequentially to 4.13%. Consequently, NII increased by 7.6% sequentially to Rs.3,203cr (a healthy 37.5% increase yoy). The non-interest income increased by 17.4% yoy to Rs.857cr, despite a 44.6% reduction in treasury gains. Operating expenses increased substantially by 7.3% qoq and 37.7% yoy, led by the 46.9% yoy increase in employee costs and 19.0% yoy increase in other operating expenses.

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Outlook and valuation: Post the recent correction in the stock, it is trading at 1.5x FY2012E ABV of Rs.741 v/s its five-year range of 1.11.6x and median of 1.4x. We recommend an Accumulate rating on the stock with a Target Price of Rs.1,259 (earlier Rs.1,341), valuing it at a multiple at 1.7x FY2012E ABV

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Strong business growth During the quarter, advances grew sequentially by 6.0% (29.8% yoy) to Rs.221,252cr, while deposits grew sequentially by 5.7% to Rs.288,873cr (23.5% yoy). On a yoy basis, saving deposits increased by 23.7% to Rs.89,860cr, while current deposits rose by 15.5% to Rs.22,945cr. Overall CASA deposits increased to Rs.112,806cr in 3QFY2011 from Rs.92,492cr in 3QFY2010, recording growth of 22%. However, sequentially, CASA deposits only grew by
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1.6% as compared to the 8.4% increase in term deposits. Consequently, the CASA ratio dropped to 39.1% from 40.6 in 2QFY2011. The bank saw robust 76.5% yoy growth in overseas gross advances to Rs.10,817cr (4.8% of overall gross advances) from Rs.6,973cr (3.7% of overall gross advances), partly due to concentrated efforts on overseas expansion and partly due to a small base effect. The bank increased its exposure to the infrastructure sector to Rs.33,787cr (up 49.7% yoy and comprising 15.3% of overall advances) from Rs.22,567cr (10.8% of overall advances) in 3QFY2010.

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NIMs high, but likely to come down going forward During the quarter, the yield on funds increased by 10bp sequentially to 8.25%, aided by the 100bp increase in base rate, which was higher-than-peer average of ~70bp, while the cost of funds increased by 15bp sequentially to 4.54%. Reported NIMs expanded by 7bp sequentially to 4.13%. Consequently, NII increased by 7.6% sequentially (a healthy 37.5% increase you) to Rs.3,203cr.

The bank has continuously maintained high reported NIMs at ~4% over the last year. However, going forward, with rising cost of funds, we expect calculated FY2012E NIMs to moderate by ~25bp to 3.5% from 3.8% in FY2011E.

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Healthy core non-interest income Non-interest income increased by 17.4% yoy to Rs.857cr, despite a 44.6% reduction in treasury gains. Non-interest income, excluding treasury gains, gained healthy 34.4% yoy to Rs.770cr. Recoveries from written-off accounts grew by strong 59.7% yoy to Rs.123cr.

Asset quality pressures persist PNBs gross NPAs increased, in absolute terms, by 12.8% qoq to Rs.4,541cr and net NPAs rose by 10.5% qoq to Rs.1,575cr. Gross slippages for the quarter stood at Rs.977cr (Rs.911cr in 2QFY2011), indicating an annualised slippage ratio of 2.1% (2.0% in 2QFY2011). Gross NPA ratio deteriorated to 2.0% (as against 1.9% in 2QFY2011). Net NPA ratio remained stable at
48

0.7%. The banks provision coverage ratio including technical write-offs stood at 77.2% (77.1% in 2QFY2011).

The bank made provisions of Rs.555cr towards NPAs in 3QFY2011, compared to Rs.359cr in 2QFY2011 and Rs.329cr in 2QFY2010. Provision for investments stood at Rs.44cr, compared to Rs.65cr in 2QFY2011.

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Operating costs rise due to employee benefit provisions Operating expenses increased by substantial 7.3% qoq and 37.7% yoy, driven by the 46.9% yoy increase in employee costs and 19.0% yoy increase in other operating expenses. The cost-toincome ratio stood at 42.1% (43.2% in 2QFY2011 and 40.6% in 3QFY2010). The increase in employee expenses was attributable to provisions (Rs.360cr) made on account of gratuity (Rs.125cr) and second pension option (Rs.235cr) during the quarter. Management indicated that the total second option pension provision liability is expected to be ~Rs.3,600cr as against earlier estimates of Rs.2,500cr. We have accordingly raised our operating expense estimates for FY2012 from Rs.7,014cr to Rs.7,427cr.

Comfortable capital adequacy The banks CAR stood at 11.9% at the end of 3QFY2011, with tier-I ratio of 7.6%. Including the nine-month profit till 3QFY2011, CAR stands at healthy 13.3% with tier-I of 9.0%.

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Investment arguments : Strong CASA legacy, but losing market share PNB has a structural advantage of having a high CASA ratio of 39.1%, which is driven by strong rural and semi-urban presence, especially in North India (total of 4,787 branches and 4,400 ATMs). This should act as a strong cushion in the current rising rate environment, and we have accordingly factored in a moderate ~25bp decline in calculated NIMs in FY2012E to 3.5% from 3.8% in FY2011E. That said, the bank is losing market share like most other PSBs on account of slow branch expansion and competition from private banks savings market share was down by 50bp to 7.1% during FY200710. Higher slippages in 3QFY2011 On a qoq basis, the annualised slippage ratio increased by 14bp to 2.1%. Fresh additions stood at Rs.977cr (higher by Rs.66cr compared to 2QFY2011) and deductions stood at Rs.460cr (lower by Rs.39cr compared to 2QFY2011). Provisions for NPAs increased by 54.6% qoq to Rs.555cr (Rs.359cr in 2QFY2011) to compensate for high slippages witnessed in this quarter.

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Asset quality continued to be under pressure, with gross NPAs rising by 12.8% qoq and net NPAs increasing by 10.5% qoq. The provision coverage ratio including technical write-offs stood at 77.2% compared to 77.1% in 2QFY2011. Management is expecting better recoveries and upgradation in the coming quarters, which could curb the recent increase in slippages. In our view, the banks strategy of high growth in advances at relatively high yields could contribute to relatively higher deterioration in asset quality and NIM compression going forward.

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CHAPTER 4 SIGNIFICANCE OF THE STUDY

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4. SIGNIFICANCE OF THE STUDY

For achieving the marketing of services, need of every bank is to provide satisfied and efficient services to the consumer so as to: achieve competitive advantage by creating value for the customers ensure that enough value is created in the sale to bring customers back for more build and maintain mutually satisfying relationship with customers.

Main scope of the bank for the marketing of services through different channels is to provide the best they can do to secure and retain the customers and for:-

a. Efficient and courteous customer service b. Attractive and innovative schemes c. Developing subsidiary services d. Aggressive personalized selling strategy

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CHAPTER 5 OBJECTIVE OF STUDY

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5. OBJECTIVE OF STUDY
The objectives of study are as follows:

To know the perception of the consumers about the quality, features, services and products of the various private banks and nationalized banks.

To assess the preference of customers regarding different private and nationalized banks present in the market.

To know the effectiveness of ATM of various banking services on the customers. To know the different strategies of marketing adopted by different banks through their websites and its performance.

To study availing loan through banks for needs and their future prospects.

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CHAPTER 6 RESEARCH METHODOLOGY

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6. RESEARCH METHODOLOGY
Research Plan: The research study is descriptive in nature. The established objectives were kept in mind during the study, however no hypothesis was formed as the study was more in the form of descriptive design attempting to analyze the attitude of respondents towards the project. Literature Survey: In order to be familiar with the topic and to know the views of various experts of marketing, a literature survey done. The intention behind this was to get full knowledge about the topic. Data Collection: The Core finding of the study was based upon the information collected through primary data i.e. information was collected from respondent with the help of structured questionnaire. Measurement Technique: A structured questionnaire was administrated for the purpose of obtaining information from the respondents. Much care been taken to put the related to the subject, the questionnaire was contain closed ended logical questions. MODE OF DATA COLLECTION : The study is based on both Primary and Secondary data which includes: a) Primary Data: The Primary Data was gathered through questionnaires. b) Secondary Data: Secondary Data was gathered from internet websites on banking services.

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c) Sample Size 100 Samples were taken. 100 Customers (25 each fromAxis Bank, ICICI Bank, State Bank of Patiala and Punjab National Bank ) SAMPLE DESIGN: A sample design is a definite plan determined before any data are actually collected for obtaining a sample from a given population. It includes: Universe: Universe refers to the total of the items or units in any field of inquiry. In my study, Universe is: All the Banks and marketing of their services. Population: Population refers to the total of items about which information is desired. In my study, Population is Consumer of Private and Nationalised banks in Mohali. Sample Size: The sample consists of Axis Bank, ICICI Bank, State Bank of Patiala and Punjab National Bank, Mohali. Sample Unit: Sample unit may be a geographical one such as state, district, village etc. or it may be an individual also. I have selected a unit i.e. consumer for conducting the research.In my study, sample unit is Consumer of Private and Nationalized bank in Mohali. Sampling technique: In the study the sample was chosen on the basis of convenience sample. Contact Method: The respondents sampling personally and a structured questionnaire was got filled from them. a report questionnaire was prepared to interview the customers.
59

CHAPTER 7 Data Analysis and Interpretation

60

7. Data Analysis and Interpretation

Section - A Gender: TABLE: 1

Male Female

83 17

GRAPH: 1

GENDER
Male 17% Female

83%

INTERPRETATION: According to 100 respondents 83% of them are male and rest 17% of them are females.

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Age in Years: TABLE: 2 Below 30 30 but below 45 45 but below 60 Above 60 60 25 11 4

GRAPH: 2

Chart Title
11 4

25 60

Below 30

30 but below 45

45 but below 60

Above 60

INTERPRETATION: According to 100 respondents 60% of them are below 30 years, 25% of them are 30 but below 45 years, 11% of them are 45 but below 60 years and rest 4% of them are above 60 years of age.

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Education: TABLE: 3 Below matric Matric but under Graduate Graduate Post Graduate Professional Degree 7 16 42 20 15

GRAPH: 3

EDUCATION
Below matric Graduate Professional Degree Matric but under Graduate Post Graduate

15%

7%

16%
20%

42%

INTERPRETATION: According to 100 respondents 7% of them are below matric, 16% of them are matric but under graduate, 42% of them are graduates, 20% of them are post graduate and rest 15% of them are having professional degree.

63

Yearly Income: TABLE: 4 Below 2 lac 2 to 5 lac 5 to 8 lac Above 8 lac 20 67 11 2

GRAPH: 4

YEARLY INCOME
Below 2 lac 5 to 8 lac 2% 11% 2 to 5 lac Above 8 lac

20%

67%

INTERPRETATION: According to 100 respondents 20% of their yearly income is below 2 lac, 67% of their yearly income is 2 to 5 lac, 11% of their yearly income is 5 to 8 lac and rest their yearly income is above 8 lacs.

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Occupation: TABLE: 5 Businessman Service Man Agriculturist Professional Any other 33 26 12 27 2

GRAPH: 5

OCCUPATION
Businessman Professional Service Man Any other 2% 27% 33% Agriculturist

12% 26%

INTERPRETATION: According to 100 respondents 33% of them are businessman, 26% of them are service man, 12% of them are agriculturist, 27% of them are professional and rest 2% of them are any other.

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Section - B Q1. In which of the following bank you have an account? TABLE: 1 Axis Bank ICICI Bank State Bank of Patiala Punjab National Bank 25 25 25 25

GRAPH: 1
Axis Bank State Bank of Patiala ICICI Bank Punjab National Bank

25%

25%

25%

25%

INTERPRETATION: According to 100 respondents 25% of them are having a/c in Axis Bank, 25% of them are having a/c in ICICI Bank, 25% of them are having a/c in State Bank of Patiala, and rest 25% of them are having a/c in Punjab National Bank.

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Q2. Which type of accounts you have with the bank? TABLE: 2 State Bank Punjab Axis Bank ICICI Bank of Patiala National Bank 19 18 16 15 5 6 7 6 1 4 3 3 0 2 3 1

Saving A/c Fixed Deposit A/c current A/c Loan A/c

GRAPH: 2 Saving A/c Fixed Deposit A/c current A/c Loan A/c

0 5

2 6

3 7

1 6

19

18

16

15

Axis Bank

ICICI Bank

State Bank of Patiala

Punjab National Bank

INTERPRETATION: According to 25 respondents of Axis Bank 19 of them are having saving a/c, 5 of them are having fixed a/c and rest 1 of them are having current a/c. According to 25 respondents of ICICI Bank 18 of them are having saving a/c, 6 of them are having fixed a/c, 4 of them are having current a/c and rest 2 of them are having loan a/c in this bank. According to 25 respondents of State Bank of Patiala Bank 16 of them are having saving a/c, 7 of them are having fixed a/c, 3 of them are having current a/c and rest 3 of them are having loan a/c in this bank. According to 25 respondents of Punjab National Bank 15 of them are having saving a/c, 6 of them are having fixed a/c, 3 of them are having current a/c and rest 1 of them are having loan a/c in this bank.

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Q3. Which of the following factors influenced you most while opening an account in the Bank? TABLE: 3 State Bank of Patiala 7 9 13 13 10 14 3 13 2 3 6 12 12 9 13 4 5 1 Punjab National Bank 6 8 11 10 7 10 6 6 3

Axis Bank Advertisement Advise of a friends Familiarity with bank employees Advise of existing customers of the bank Near to home/Office A/c of other family members Office salary transferred in the bank Brand name Any other 5 7 11 15 8 12 5 9 2

ICICI Bank

GRAPH: 3
Axis Bank
6 3 7 5 8 6 9 7

ICICI Bank
11 12 13 11

State Bank of Patiala

10 12 13 15 7 9 10 8 10 13 14 12 6 4 3 5

Punjab National Bank

6 5 13 9 3 1 2 2

INTERPRETATION: According to 25 respondents of Axis Bank 5 of them are influenced by advertisement, 7 of them are influenced by Advise of friends, 11 of them are influenced by Familiarity with bank employees, 15 of them are influenced by Advise of existing customers of the bank, 8 of them are influenced by Near to home/Office, 12 of them are influenced by A/c of other family members, 5 of them are influenced by Office salary transferred in the bank, 9 of them are influenced by Brand name and rest 2 of them are influenced by Any other source. According to 25 respondents of ICICI Bank 7 of them are influenced by advertisement, 9 of them are influenced by Advise of friends, 13 of them are influenced by Familiarity with bank
68

employees, 13 of them are influenced by Advise of existing customers of the bank, 10 of them are influenced by Near to home/Office, 14 of them are influenced by A/c of other family members, 3 of them are influenced by Office salary transferred in the bank, 13 of them are influenced by Brand name and rest 2 of them are influenced by Any other source. According to 25 respondents of State Bank of Patiala Bank 3 of them are influenced by advertisement, 6 of them are influenced by Advise of friends, 12 of them are influenced by Familiarity with bank employees, 12 of them are influenced by Advise of existing customers of the bank, 9 of them are influenced by Near to home/Office, 13 of them are influenced by A/c of other family members, 4 of them are influenced by Office salary transferred in the bank, 5 of them are influenced by Brand name and rest 1 of them are influenced by Any other source. According to 25 respondents of Punjab National Bank 6 of them are influenced by advertisement, 8 of them are influenced by Advise of friends, 11 of them are influenced by Familiarity with bank employees, 10 of them are influenced by Advise of existing customers of the bank, 7 of them are influenced by Near to home/Office, 10 of them are influenced by A/c of other family members, 6 of them are influenced by Office salary transferred in the bank, 6 of them are influenced by Brand name and rest 3 of them are influenced by Any other source.

69

Q4. Which of the following service/products your bank provides(please tick)? TABLE:4

Axis Bank Saving A/c. Current A/c. Fixed Deposit A/c. Semi Fixed Deposit(flexi) A/c. Salary plus Housing Loan Educational Loan Consumer Loan Personal Loan Auto Loan Loan against Securities Demat Services Over draft facility Letter of credit Discounting of Bills Internet Banking Mobile banking Home Banking ATM Facility Credit Cards Debit cards Locker Facility 25 25 20 10

ICICI Bank 25 25 18 12

State Bank of Patiala 25 25 25 5

Punjab National Bank 25 25 25 7

7 22 8 10 14 20 8 15 5 0 7 15 25 13 25 17 12 7

9 19 6 13 17 22 5 12 4 0 3 17 25 18 25 14 16 8

3 15 14 17 7 24 11 8 7 0 0 21 22 19 25 17 13 10

5 20 12 11 9 21 10 7 3 0 0 16 23 12 25 15 17 9

70

GRAPH: 4

25 25 25 25 25 25 25 25 18 7 5 12 25 25 20 10 5 3 9 7 20 15 24 11 9 7 17 7 8 3 7 4 5 21 17 0 3 7 15 21

23

25

16 22

25 12 19 18 15 17 25 17 14 25 13

19 12 17 14 22 6 8

25

22 10

13

9 8 7

11 12 13 20 5 15 10 14 8

16 10

25

17 12

Axis Bank

ICICI Bank

State Bank of Patiala

Punjab National Bank

INTERPRETATION: According to 25 respondents of Axis Bank all says that bank provides the service of Saving accounts and current accounts, 20 of them says that bank provides the services of fixed deposits a/cs, 10 of them says that bank provides the services of semi fixed deposits accounts, 7 of them says that bank provides the services of share plus, 22 of them says that bank provides the services of housing loan, 8 of them says that bank provides the services of education loan, 10 of them says that bank provides the services of consumer loan, 14 of them says that bank provides the services of personal loan, 20 of them says that bank provides the services of auto loan, 8 of them says that bank provides the services of loan against securities, 15 of them says that bank provides the services of Demat a/c, 5 of them says that bank provides the facilities of overdrafts, There is no response for the facility of Letter of Credit, 7 of them says that bank provides the services of Discounting of bills, 15of them says that bank provides the services of Internet banking, 25 of them says that bank provides the services of mobile banking, 13 of them says that bank provides the services of home banking, 25 of them says that bank provides the facility of ATMs, 17 of them says that bank provides the facility of Credit cards, 12 of them says that bank provides the facility of Debit cards, 7 of them says that bank provides the Locker facilities. According to 25 respondents of ICICI Bank all says that bank provides the service of Saving accounts and current accounts, 18 of them says that bank provides the services of fixed deposits a/cs, 12 of them says that bank provides the services of semi fixed deposits accounts, 9 of them
71

says that bank provides the services of share plus, 19 of them says that bank provides the services of housing loan, 6 of them says that bank provides the services of education loan, 13of them says that bank provides the services of consumer loan, 17 of them says that bank provides the services of personal loan, 22 of them says that bank provides the services of auto loan, 5 of them says that bank provides the services of loan against securities, 12 of them says that bank provides the services of Demat a/c, 4 of them says that bank provides the facilities of overdrafts, There is no response for the facility of Letter of Credit, 3 of them says that bank provides the services of Discounting of bills, 17of them says that bank provides the services of Internet banking, 25 of them says that bank provides the services of mobile banking, 18 of them says that bank provides the services of home banking, 25 of them says that bank provides the facility of ATMs, 14 of them says that bank provides the facility of Credit cards, 16 of them says that bank provides the facility of Debit cards, 8 of them says that bank provides the Locker facilities. According to 25 respondents ofState Bank of PatialaBank all says that bank provides the service of Saving accounts,Current accounts and fixed deposits a/cs, 5 of them says that bank provides the services of semi fixed deposits accounts, 3 of them says that bank provides the services of share plus, 15 of them says that bank provides the services of housing loan, 14 of them says that bank provides the services of education loan, 17 of them says that bank provides the services of consumer loan, 7 of them says that bank provides the services of personal loan, 24 of them says that bank provides the services of auto loan, 11 of them says that bank provides the services of loan against securities, 8 of them says that bank provides the services of Demat a/c, 7 of them says that bank provides the facilities of overdrafts, There is no response for the facility of Letter of Credit and Discounting of bills, 21of them says that bank provides the services of Internet banking, 22 of them says that bank provides the services of mobile banking, 19 of them says that bank provides the services of home banking, 25 of them says that bank provides the facility of ATMs, 17of them says that bank provides the facility of Credit cards, 13 of them says that bank provides the facility of Debit cards, 10 of them says that bank provides the Locker facilities. According to 25 respondents ofPunjab NationalBank all says that bank provides the service of Saving accounts,Current accounts and fixed deposits a/cs, 7 of them says that bank provides the services of semi fixed deposits accounts, 5 of them says that bank provides the services of share plus, 20 of them says that bank provides the services of housing loan, 12 of them says that bank provides the services of education loan, 11 of them says that bank provides the services of consumer loan, 9 of them says that bank provides the services of personal loan, 21 of them says that bank provides the services of auto loan, 10 of them says that bank provides the services of loan against securities, 7 of them says that bank provides the services of Demat a/c, 3 of them says that bank provides the facilities of overdrafts, There is no response for the facility of Letter of Credit and Discounting of bills, 16of them says that bank provides the services of Internet banking, 23 of them says that bank provides the services of mobile banking, 12 of them says that bank provides the services of home banking, 25 of them says that bank provides the facility of ATMs, 15of them says that bank provides the facility of Credit cards, 17 of them says that bank provides the facility of Debit cards, 9 of them says that bank provides the Locker facilities.

72

Q5. How do you generally come to know about the existing or new services/ products offered by your bank? TABLE: 5 State Bank of Patiala 9 12 11 10 6 9 7 3 6 8 4 3 4 6 2 1 Punjab National Bank 8 11 7 5 3 8 5 2

Axis Bank Through advertisement Through staff of the bank Through manager of the bank Through funds Through existing customers of the bank Through website of your bank Through customer meetings Any other 7 9 5 4 3 4 3 2

ICICI Bank

GRAPH: 5 Axis Bank ICICI Bank

7 4 11 5

State Bank of Patiala

5 3 10 4 3 4 6 3

Punjab National Bank

2 1 3 2

8 6 9 7

11 8 12 9

8 6 9 4

5 2 7 3

INTERPRETATION: According to 25 respondents of Axis Bank 7 of them say that they come to know about the existing or new services/ products offered by bank through advertisement, 9 of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank, 5 of them say that they come to know about the existing or new services/ products offered by bank through manager of the bank, 4 of them say that they come to know about the existing or new services/ products offered by bank through funds, 3 of them say that they come to know about the existing or new services/ products offered by bank through existing customers of the bank, 4 of them say that they come to know about the existing or new services/ products offered by bank through website of your bank, 3 of them say that they come to
73

know about the existing or new services/ products offered by bank through customer meetings and rest 2 of them say that they come to know about the existing or new services/ products offered by bank through Any other sources. According to 25 respondents of ICICI Bank 9 of them say that they come to know about the existing or new services/ products offered by bank through advertisement, 12 of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank, 11 of them say that they come to know about the existing or new services/ products offered by bank through manager of the bank, 10 of them say that they come to know about the existing or new services/ products offered by bank through funds, 6 of them say that they come to know about the existing or new services/ products offered by bank through existing customers of the bank, 9 of them say that they come to know about the existing or new services/ products offered by bank through website of your bank, 7 of them say that they come to know about the existing or new services/ products offered by bank through customer meetings and rest 3 of them say that they come to know about the existing or new services/ products offered by bank through Any other sources. According to 25 respondents of State Bank of Patiala Bank 6 of them say that they come to know about the existing or new services/ products offered by bank through advertisement, 8 of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank, 4 of them say that they come to know about the existing or new services/ products offered by bank through manager of the bank, 3 of them say that they come to know about the existing or new services/ products offered by bank through funds, 4 of them say that they come to know about the existing or new services/ products offered by bank through existing customers of the bank, 6 of them say that they come to know about the existing or new services/ products offered by bank through website of your bank, 2 of them say that they come to know about the existing or new services/ products offered by bank through customer meetings and rest 1 of them say that they come to know about the existing or new services/ products offered by bank through Any other sources.. According to 25 respondents of Punjab National Bank 8 of them say that they come to know about the existing or new services/ products offered by bank through advertisement, 11 of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank, 7 of them say that they come to know about the existing or new
74

services/ products offered by bank through manager of the bank, 5 of them say that they come to know about the existing or new services/ products offered by bank through funds, 3 of them say that they come to know about the existing or new services/ products offered by bank through existing customers of the bank, 8 of them say that they come to know about the existing or new services/ products offered by bank through website of your bank, 5 of them say that they come to know about the existing or new services/ products offered by bank through customer meetings and rest 2 of them say that they come to know about the existing or new services/ products offered by bank through Any other sources..

75

Q6. Do they send you regular statements? TABLE: 6 State Bank of Patiala 11 14 Punjab National Bank 17 8

Axis Bank Yes No 20 5

ICICI Bank 25 0

GRAPH: 6
Yes No

0 5 14 25 20 11 17 8

Axis Bank

ICICI Bank

State Bank of Patiala

Punjab National Bank

INTERPRETATION: According to 25 respondents of Axis Bank 20 of them say yes they send regular statement and rest 5 of them say no they do not send regular statement. According to 25 respondents of ICICI Bank 20 of them say yes they send regular statement and rest 5 of them say no they do not send regular statement. According to 25 respondents of State Bank of Patiala 20 of them say yes they send regular statement and rest 5 of them say no they do not send regular statement. According to 25 respondents of Punjab National Bank 20 of them say yes they send regular statement and rest 5 of them say no they do not send regular statement.

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Q7. At the time of selection of bank how would you rate the following factors? TABLE: 7
Neither Most important nor UnMost UnImportant Important un-important. Important Important 12 19 37 11 21 21 32 29 10 8 23 29 27 21 39 37 29 36 43 19 12 0 39 33 38 37 42 46 32 40 57 27 17 0 20 38 35 36 19 17 39 24 0 40 39 0 11 0 0 6 0 0 0 0 0 40 39 0 7 0 0 0 0 0 0 0 0 4 10 0

Location of branches. Layout of branches. Promity of place of resident/ employment/business/ knowledgeable Behaviour of Staff. Familiarity with bank employees. Working Hours available. Qualities of services. No. of ATMs Selling arrangements. Higher rate of interest on deposits. Lower rate of interest on Loans. Reasonable service charges. Minimum Balanced requirements. Any other specify

GRAPH: 7
Most Important Neither important nor un-important. Most Un Important 0 38 33 29 0 35 38 27 0 6 36 37 21 39 37 0 19 42 0 17 46 32 29 Important Un Important

21 11 37 19 12

8 10 29 32 21

7 11 20 39 23

0 39

0 24 40 36

0 57 43

4 40 40 27 19

10 39 39 17 12 0

77

INTERPRETATION: According to the 100 respondentsof banks 12 of them say that location of branches is most important at the time of selection of bank, 19 of them say that location of branches is important at the time of selection of bank, 37 of them say that location of branches is neither important nor unimportantat the time of selection of bank, 11 of them say that location of branches is unimportantat the time of selection of bank, and rest 21 of them say that location of branches is most unimportantat the time of selection of bank According to the 100 respondentsof banks 21 of them say that Layout of branches is most important at the time of selection of bank, 32 of them say that Layout of branches is important at the time of selection of bank, 29 of them say that Layout of branches is neither important nor unimportantat the time of selection of bank, 10 of them say that Layout of branches is unimportantat the time of selection of bank, and rest 8 of them say that Layout of branches is most unimportantat the time of selection of bank. According to the 100 respondentsof banks 23 of them say that Promity of place of resident/ employment/business/ knowledgeable is most important at the time of selection of bank, 39 of them say that Promity of place of resident/ employment/business/ knowledgeable is important at the time of selection of bank, 20 of them say that Promity of place of resident/ employment/business/ knowledgeable is neither important nor unimportantat the time of selection of bank, 11 of them say that Promity of place of resident/ employment/business/ knowledgeable is unimportantat the time of selection of bank, and rest 7 of them say that Promity of place of resident/ employment/business/ knowledgeable is most unimportantat the time of selection of bank. According to the 100 respondentsof banks 29 of them say that Behaviour of Staff most important at the time of selection of bank, 33 of them say that Behaviour of Staff important at the time of selection of bank, and rest 38 of them say that Behaviour of Staff neither important nor unimportantat the time of selection of bank. is is is

According to the 100 respondentsof banks 27 of them say that familiarity with bank employees is most important at the time of selection of bank, 38 of them say that familiarity with bank employees is important at the time of selection of bank, and rest 35 of them say that familiarity with bank employees is neither important nor unimportantat the time of selection of bank. According to the 100 respondentsof banks 21 of them say that working hours available is most important at the time of selection of bank, 37 of them say that working hours available is important at the time of selection of bank, 36 of them say that working hours available is neither important nor unimportantat the time of selection of bank, and rest 6 of them say that working hours availableis unimportant at the time of selection of bank. According to the 100 respondentsof banks 39 of them say that qualities of service is most important at the time of selection of bank, 42 of them say that qualities of service is important at the time of selection of bank, and rest 19 of them say that qualities of service is neither important nor unimportantat the time of selection of bank.
78

According to the 100 respondentsof banks 37 of them say that no. of ATMs is most important at the time of selection of bank, 46 of them say that no. of ATMs is important at the time of selection of bank, and rest 17 of them say that no. of ATMsis neither important nor unimportantat the time of selection of bank. According to the 100 respondentsof banks 29 of them say that selling arrangements is most important at the time of selection of bank, 32 of them say that selling arrangements is important at the time of selection of bank, and rest 39 of them say that selling arrangementsis neither important nor unimportantat the time of selection of bank. According to the 100 respondentsof banks 36 of them say that higher rate of interest on deposits is most important at the time of selection of bank, 40 of them say that higher rate of interest on deposits is important at the time of selection of bank, and rest 24 of them say that higher rate of interest on deposits is neither important nor unimportantat the time of selection of bank. According to the 100 respondentsof banks 43 of them say that lower rate of interest on loans is most important at the time of selection of bank, and rest 57 of them say that lower rate of interest on loans is important at the time of selection of bank. According to the 100 respondentsof banks 19 of them say that reasonable service charges is most important at the time of selection of bank, 27 of them say that reasonable service is important at the time of selection of bank, 40 of them say that reasonable service is neither important nor unimportantat the time of selection of bank, 10 of them say that reasonable service is unimportant at the time of selection of bank and rest 4 of them say thatreasonable service is most unimportant at the time of selection of bank. According to the 100 respondentsof banks 12 of them say that minimum balanced requirements is most important at the time of selection of bank, 17 of them say that minimum balanced requirements is important at the time of selection of bank, 39 of them say that minimum balanced requirements is neither important nor unimportantat the time of selection of bank, 22 of them say that minimum balanced requirements is unimportant at the time of selection of bank and rest 10 of them say thatminimum balanced requirements is most unimportant at the time of selection of bank.

79

Q8. How often do you use ATM in a month? TABLE: 8 State Bank ICICI Bank of Patiala 1 12 9 3 Punjab National Bank 6 10 7 2

Axis Bank Less then 3 times 5 times 5 to 10 times More then 10 7 11 5 2

9 9 6 1

GRAPH: 8
Less then 3 times 5 times 5 to 10 times More then 10

2 5

3 9

1 6

2 7

11 12 7 1 Axis Bank ICICI Bank

9 10 9

6 Punjab National Bank

State Bank of Patiala

INTERPRETATION: According to 25 respondents of Axis Bank 7 of them say that they use their ATM Less than 3 times, 1 of them say that they use their ATM 5 times in a month, 9 of them say that they use their ATM 5 to 10 times in a month and rest 6 of them say that they use their ATM more than 10in a month. According to 25 respondents of ICICI Bank 11 of them say that they use their ATM Less than 3 times, 12 of them say that they use their ATM 5 times in a month, 9 of them say that they use their ATM 5 to 10 times in a month and rest 10 of them say that they use their ATM more than 10 in a month. According to 25 respondents of State Bank of Patiala Bank 5 of them say that they use their ATM Less than 3 times, 9 of them say that they use their ATM 5 times in a month, 6 of
80

them say that they use their ATM 5 to 10 times in a month and rest 7 of them say that they use their ATM more than 10in a month. According to 25 respondents of Punjab National Bank 2 of them say that they use their ATM Less than 3 times, 3 of them say that they use their ATM 5 times in a month, 1of them say that they use their ATM 5 to 10 times in a month and rest 2 of them say that they use their ATM more than 10in a month.

81

Q9. Have you even faced any problem with ATM ? TABLE: 9 State Punjab Bank of National Patiala Bank 6 5 4 2 3 3 1 0 1 1 2 1 3 2 2 1 1 2 1 1 1 7 0 0

Axis Bank Waiting in long Que Inserting card in correctly Limit on daily withdrawal Light problem ATM working too slowly Incorrect amount of cash dispensed ATM not able to prints slips when demanded Balance deducted but cash does not received Currency is not proper No choice of currency option None of the above any other 5 3 3 0 1 1 2 1 2 1 6 0

ICICI Bank 4 2 2 0 2 1 1 1 1 1 10 0

GRAPH: 9
Axis Bank ICICI Bank 0 3 3 2 3 0 State Bank of Patiala Punjab National Bank

5 6 4 5

2 4 2 3

1 1

1 2 1 1

2 3 1 2

1 2 1 1

2 1 1 2

1 1 1 1

7 1 10 6 0

2 1

INTERPRETATION: According to 25 respondents of Axis Bank 5 of them say that they faced problems with ATMs due to Waiting in a long que, 3 of them say that they faced problems with ATMs due to Inserting card Incorrectly, 3 of them say that they faced problems with ATMs
82

due to the Limit on daily withdrawals, There is no respondent faced problem with ATMs due to Light problem, 1 of them says that they faced a problem with ATMs due to ATM working too slowly, 1 of them says that they faced a problem with ATMs due to Incorrect amount of cash dispensed, 2 of them say that they faced problem with ATMs due to ATM is not able to prints slips when demanded, 1 of them says that they have a problem due to Balance deduct but cash does not received, 2 of them say that they have a problem due to Currency is not proper in ATMs machines, 1 of them says that they have a problem due to No choice of currency option in ATMs machines, 6 of them say that they have no problem of the above, There is no response for any other option. According to 25 respondents of ICICI Bank 4 of them say that they faced problems with ATMs due to Waiting in a long que, 2 of them say that they faced problems with ATMs due to Inserting card Incorrectly, 2 of them say that they faced problems with ATMs due to the Limit on daily withdrawals, There is no respondent faced problem with ATMs due to Light problem, 2 of them say that they faced a problem with ATMs due to ATM working too slowly, 1 of them says that they faced a problem with ATMs due to Incorrect amount of cash dispensed, 1 of them says that they faced problem with ATMs due to ATM is not able to prints slips when demanded, 1 of them says that they have a problem due to Balance deduct but cash does not received, 1 of them says that they have a problem due to Currency is not proper in ATMs machines, 1 of them says that they have a problem due to No choice of currency option in ATMs machines, 10 of them say that they have no problem of the above, There is no response for Any other option. According to 25 respondents of State Bank of Patiala 6 of them say that they faced problems with ATMs due to Waiting in a long que, 4 of them say that they faced problems with ATMs due to Inserting card Incorrectly, 3 of them say that they faced problems with ATMs due to the Limit on daily withdrawals, 1 of them says that he faced problem with ATMs due to Light problem, 1 of them says that they faced a problem with ATMs due to ATM working too slowly, 2 of them say that they faced a problem with ATMs due to Incorrect amount of cash dispensed, 3 of them says that they faced problem with ATMs due to ATM is not able to prints slips when demanded, 2 of them say that they have a problem due to Balance deduct but cash does not received, 1 of them says that they have a problem due to Currency is not proper in ATMs machines, 1 of them says that they have a problem due to No choice of

83

currency option in ATMs machines, 1 of them says that they have no problem of the above, There is no response for Any other option. According to 25 respondents of Punjab National Bank 5 of them say that they faced problems with ATMs due to Waiting in a long que, 2 of them say that they faced problems with ATMs due to Inserting card Incorrectly, 3 of them say that they faced problems with ATMs due to the Limit on daily withdrawals, None of the respondent faced problem with ATMs due to Light problem, 1 of them says that they faced a problem with ATMs due to ATM working too slowly, 1 of them says that they faced a problem with ATMs due to Incorrect amount of cash dispensed, 2 of them says that they faced problem with ATMs due to ATM is not able to prints slips when demanded, 1 of them says that they have a problem due to Balance deduct but cash does not received, 2 of them say that they have a problem due to Currency is not proper in ATMs machines, 1 of them says that they have a problem due to No choice of currency option in ATMs machines, 7 of them say that they have no problem of the above, There is no response for Any other option.

84

Q10. Your opinion regarding information displayed on site ? TABLE: 10 Punjab National Bank 5 6 11 3

Sufficient In Sufficient

Axis Bank 12 4

ICICI Bank 17 2

State Bank of Patiala

GRAPH: 10
Sufficient In Sufficient

2 6 17 5

12

11

Axis Bank

ICICI Bank

State Bank of Patiala

Punjab National Bank

INTERPRETATION: According to 16 respondents of Axis Bank 12 of them say that there is sufficientinformation displayed on site and rest 4 of them say that there is in sufficient information displayed on site According to 19 respondents of ICICI Bank 17 of them say that there is sufficientinformation displayed on site and rest 2 of them say that there is in sufficient information displayed on site According to 11 respondents of State Bank of Patiala Bank 5 of them say that there is sufficientinformation displayed on site and rest 6 of them say that there is in sufficient information displayed on site According to 14 respondents of Punjab National Bank 11 of them say that there is sufficientinformation displayed on site and rest 3 of them say that there is in sufficient information displayed on site

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Q11. Have you ever availed or tried to avail the loan from bank? TABLE: 11 State Bank of Punjab ICICI Bank Patiala National Bank 7 11 10 9 18 14 15 16

Axis Bank Yes No

GRAPH: 11
Yes No

18

14

15

16

7 Axis Bank

11

10 State Bank of Patiala

9 Punjab National Bank

ICICI Bank

INTERPRETATION: According to 25 respondents of Axis Bank 7 of them say yes they have availed or tried to avail the loan from bank and rest 18 of them say no they have not availed or tried to avail the loan from bank. According to 25 respondents of ICICI Bank 11 of them say yes they have availed or tried to avail the loan from bank and rest 14 of them say no they have not availed or tried to avail the loan from bank. According to 25 respondents of State Bank of Patiala Bank 10 of them say yes they have availed or tried to avail the loan from bank and rest 15 of them say no they have not availed or tried to avail the loan from bank. According to 25 respondents of Punjab National Bank 16 of them say yes they have availed or tried to avail the loan from bank and rest 9 of them say no they have not availed or tried to avail the loan from bank.

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Q12. Was the disbursed amount sufficient to meet your needs? TABLE: 12 State Bank of Patiala 4 7 Punjab National Bank 3 4 7 5

Axis Bank Yes No 3 4

ICICI Bank

GRAPH: 12
Yes No

4 ICICI Bank

3 State Bank of Patiala

Axis Bank

Punjab National Bank

INTERPRETATION: According to 7 respondents of Axis Bank 3 of them say yes the disbursed amount sufficient to meet their needs and rest 4 of them say no the disbursed amount is not sufficient to meet their needs. According to 11 respondents of ICICI Bank 4 of them say yes the disbursed amount sufficient to meet their needs and rest 7 of them say no the disbursed amount is not sufficient to meet their needs. According to 10 respondents of State Bank of Patiala Bank 3 of them say yes the disbursed amount sufficient to meet their needs and rest 7 of them say no the disbursed amount is not sufficient to meet their needs. According to 9 respondents of Punjab National Bank 4 of them say yes the disbursed amount sufficient to meet their needs and rest 5 of them say no the disbursed amount is not sufficient to meet their needs.

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If No tick the other sources from where you raise extra money to fulfill your needs TABLE: Punjab State Bank National Axis Bank ICICI Bank of Patiala Bank 0 1 1 2 3 4 1 2 1 1 1 1

Any other bank Friends & relatives Financial institution Any other

0 3 1 1

GRAPH:
Any other bank Friends & relatives Financial institution Any other

1 1

1 2

1 1

1 1

3 2 0 1

4 3 1

Axis Bank

ICICI Bank

State Bank of Patiala

Punjab National Bank

INTERPRETATION: According to 4 respondents of Axis Bank 1 of them say that friends and relatives raise extra money to fulfill their needs, 1 of them say that financial institutional raise extra money to fulfill their needs and rest 1 of them say that any other source raise extra money to fulfill their needs. According to 7 respondents of ICICI Bank 1 of them say that any other bank raise extra money to fulfill their needs, 3 of them say that friends and relatives raise extra money to fulfill their needs, 2 of them say that financial institutional raise extra money to fulfill their needs, and rest 1 of them say that financial institutional raise extra money to fulfill their needs.

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According to 7 respondents of State Bank of Patiala Bank 9 of them say they are highly satisfactory regarding the overall working of their bank, 7 of them say they are satisfactory regarding the overall working of their bank, 6 of them say they are neither satisfied nor dissatisfactory and rest 3 of them say they are dissatisfactory regarding the overall working of their bank. According to 5 respondents of Punjab National Bank 12 of them say they are highly satisfactory regarding the overall working of their bank, 5 of them say they are satisfactory regarding the overall working of their bank, 6 of them say they are neither satisfied nor dissatisfactory and rest 2 of them say they are dissatisfactory regarding the overall working of their bank.

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Q13. What is your opinion regarding the overall working of your bank ? TABLE: 13 State Bank of Patiala 9 7 6 3 0 Punjab National Bank 12 5 6 2 0

Highly Satistory Satisfactory Neither Satisfactory Dissatisfactory Dissatisfactory Highly Dissatisfactory

Axis Bank 11 4 nor 7 3 0

ICICI Bank 14 5 4 2 0

GRAPH: 13
Axis Bank ICICI Bank State Bank of Patiala Punjab National Bank

12 9 14 11

5 7 5 4

6 6 4 7

2 3 2 3 0

Highly Satistory

Satisfactory

Neither Dissatisfactory Highly Satisfactory Dissatisfactory nor Dissatisfactory

INTERPRETATION: According to 25 respondents of Axis Bank 11 of them say they are highly satisfactory regarding the overall working of their bank, 4 of them say they are satisfactory regarding the overall working of their bank, 7 of them say they are neither satisfied nor dissatisfactory and rest 3 of them say they are dissatisfactory regarding the overall working of their bank. According to 25 respondents of ICICI Bank 14 of them say they are highly satisfactory regarding the overall working of their bank, 4 of them say they are satisfactory regarding the overall working of their bank, 5 of them say they are neither satisfied nor dissatisfactory and rest 2 of them say they are dissatisfactory regarding the overall working of their bank.
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According to 25 respondents of State Bank of Patiala Bank 9 of them say they are highly satisfactory regarding the overall working of their bank, 7 of them say they are satisfactory regarding the overall working of their bank, 6 of them say they are neither satisfied nor dissatisfactory and rest 3 of them say they are dissatisfactory regarding the overall working of their bank. According to 25 respondents of Punjab National Bank 12 of them say they are highly satisfactory regarding the overall working of their bank, 5 of them say they are satisfactory regarding the overall working of their bank, 6 of them say they are neither satisfied nor dissatisfactory and rest 2 of them say they are dissatisfactory regarding the overall working of their bank.

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Q14. In Your opinion the working of your bank over a period of time? TABLE: 14 Punjab National Bank 13 11 1

Axis Bank Improved Remained same Deteriorated 11 12 2

ICICI Bank 14 10 1

State Bank of Patiala 12 11 2

GRAPH: 14
Improved Remained same Deteriorated

2 12

1 10

2 11

1 11

11

14

12

13

Axis Bank

ICICI Bank

State Bank of Patiala

Punjab National Bank

INTERPRETATION: According to 25 respondents of Axis Bank 11 of them say they are improved while for working of their bank over a period of time, 12 of them say that they remained same while for working of their bank over a period of time, and rest 2 of them say they are deteriorated while for working of their bank over a period of time. According to 25 respondents of ICICI Bank 14 of them say they are improved while for working of their bank over a period of time, 10 of them say that they remained same while for working of their bank over a period of time, and rest 1 of them say they are deteriorated while for working of their bank over a period of time. According to 25 respondents of State Bank of Patiala Bank 12 of them say they are improved while for working of their bank over a period of time, 11 of them say that they
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remained same while for working of their bank over a period of time, and rest 2 of them say they are deteriorated while for working of their bank over a period of time. According to 25 respondents of Punjab National Bank 13 of them say they are improved while for working of their bank over a period of time, 11 of them say that they remained same while for working of their bank over a period of time, and rest 1 of them say they are deteriorated while for working of their bank over a period of time.

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Q15. Give your opinion regarding future prospects of your bank? TABLE: 15 State Bank Punjab ICICI Bank of Patiala National Bank 19 12 15 5 9 8 1 4 2 0 0 0 0 0 0

Axis Bank Very bright Bright Neither bright or dull Dull Very dull GRAPH: 15
Axis Bank ICICI Bank

14 7 4 0 0

State Bank of Patiala

Punjab National Bank

15 12 19 14

2 4 1

9 5 7

4 0 0

Very bright

Bright

Neither bright or dull

Dull

Very dull

INTERPRETATION: According to 25 respondents of Axis Bank 14 of them say that they are very bright regarding future prospects of their bank, 7 of them say that they are bright regarding future prospects of their bank, and rest 4 of them say that they are neither bright or dull regarding future prospects of their bank. According to 25 respondents of ICICI Bank 19 of them say that they are very bright regarding future prospects of their bank, 5 of them say that they are bright regarding future prospects of their bank, and rest 1 of them say that they are neither bright or dull regarding future prospects of their bank. According to 25 respondents of State Bank of Patiala Bank 12 of them say that they are very bright regarding future prospects of their bank, 9 of them say that they are bright regarding
94

future prospects of their bank, and rest 4 of them say that they are neither bright or dull regarding future prospects of their bank. According to 25 respondents of Punjab National Bank 15 of them say that they are very bright regarding future prospects of their bank, 8 of them say that they are bright regarding future prospects of their bank, and rest 2 of them say that they are neither bright or dull regarding future prospects of their bank.

95

CHAPTER 8 FINDINGS & RECOMMENDATIONS

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FINDINGS
Most of the respondents are male. Most of the respondents of them are below 30 . Most of the respondents of them are graduates. Most of the respondents of their monthly income is 2 to 5 lac Most of the respondents of them are businessman. Most of the respondents of Axis Bank of them are having saving a/c, o Most of the respondents of ICICI Bank of them are having saving a/c. o Most of the respondents of State Bank of Patiala Bank of them are having saving a/c, o Most of the respondents of Punjab National Bank of them are having saving a/c. Most of the respondents of Axis Bank of them are influenced by Advise of existing customers of the bank, 8 of them are influenced by Near to home/Office. o Most of the respondents of ICICI Bank of them are influenced by A/c of other family members. o Most of the respondents of State Bank of Patiala Bank of them are influenced by A/c of other family members, 4 of them are influenced by Office salary transferred in the bank. o Most of the respondents of Punjab National Bank of them are influenced by Familiarity with bank employees. Most of the respondents of Axis Bank of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank. o Most of the respondents of ICICI Bank of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank. o Most of the respondents of State Bank of Patiala Bank of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank. o Most of the respondents of Punjab National Bank of them say that they come to know about the existing or new services/ products offered by bank through staff of the bank. .
97

Most of the respondents of banks of them say that location of branches is neither important nor unimportantat the time of selection of bank. o Most of the respondents of banks of them say that Layout of branches is important at the time of selection of bank. o Most of the respondents of banks of them say that Promity of place of resident/ employment/business/ knowledgeable bank o Most of the respondents of banks of them say that Behavior of Staff important nor unimportantat the time of selection of bank. o Most of the respondents of banks of them say that familiarity with bank employees is important at the time of selection of bank. o Most of the respondents of banks of them say that working hours available is important at the time of selection of bank. o Most of the respondents of banks of them say that qualities of service important at the time of selection of bank. o Most of the respondents of banks of them say that no. of ATMs is important at the time of selection of bank. o Most of the respondents of banks of them say that selling arrangements is neither important nor unimportantat the time of selection of bank. o Most of the respondents of banks say that higher rate of interest on deposits is important at the time of selection of bank. o Most of the respondents of banks of them say that lower rate of interest on loans is important at the time of selection of bank. o Most of the respondents of banks of them say that reasonable service is neither important nor unimportantat the time of selection of bank. o Most of the respondents of banks of them say that minimum balanced requirements is unimportant at the time of selection of bank is is neither is important at the time of selection of

Most of the respondents of Axis Bank of them say yes they are an ATM user. o Most of the respondents of ICICI Bank of them say yes they are an ATM user. o Most of the respondents of State Bank of Patiala Bank of them say yes they are an ATM user. o Most of the respondents of Punjab National Bank of them say yes they are an ATM user.
98

Most of the respondents of Axis Bank say that they use their ATM 5 to 10 times in a month. o Most of the respondents of ICICI Bankof them say that they use their ATM 5 times in a month. o Most of the respondents of State Bank of Patiala Bank of them say that they use their ATM 5 times in a month. o Most of the respondents of Punjab National Bank say that they use their ATM 5 times in a month.

Most of the respondents of Axis Bank of them say no they have not availed or tried to avail the loan from bank. o Most of the respondents of ICICI Bank say no they have not availed or tried to avail the loan from bank. o Most of the respondents of State Bank of Patiala Bank of them say no they have not availed or tried to avail the loan from bank. o Most of the respondents of Punjab National Bank of them say yes they have availed or tried to avail the loan from bank.

Most of the respondents of Axis Bank of them say no the disbursed amount is not sufficient to meet their needs. o Most of the respondents of ICICI Bank of them say no the disbursed amount is not sufficient to meet their needs. o Most of the respondents of State Bank of Patiala of them say no the disbursed amount is not sufficient to meet their needs. o Most of the respondents of Punjab National Bank say no the disbursed amount is not sufficient to meet their needs. o Most of the respondents say that friends and relatives raise extra money to fulfill their needs. o Most of the respondents of ICICI Bank 1 of them say that friends and relatives raise extra money to fulfill their needs, 1 of them say that financial institutional raise extra money to fulfill their needs and rest 1 of them say that any other source raise extra money to fulfill their needs. o Most of the respondents of State Bank of Patiala Bank of them say they are highly satisfactory regarding the overall working of their bank.
99

o Most of the respondents of Punjab National Bank of them say they are highly satisfactory regarding the overall working of their bank. Most of the respondents of Axis Bank of them say they are highly satisfactory regarding the overall working of their bank. o Most of the respondents of ICICI Bank of them say they are highly satisfactory regarding the overall working of their bank. o Most of the respondents of State Bank of Patiala of them say they are highly satisfactory regarding the overall working of their bank. o Most of the respondents of Punjab National Bank of them say they are highly satisfactory regarding the overall working of their bank,. Most of the respondents of Axis Bank say that they remained same while for working of their bank over a period of time. o Most of the respondents of ICICI Bank of them say they are improved while for working of their bank over a period of time. o Most of the respondents of State Bank of Patiala Bank of them say they are improved while for working of their bank over a period of time. o Most of the respondents of Punjab National Bank of them say they are improved while for working of their bank over a period of time. Most of the of Axis Bank of them say that they are very bright regarding future prospects of their bank. o Most of the of ICICI Bank of them say that they are very bright regarding future prospects of their bank o Most of the of State Bank of Patiala Bank of them say that they are very bright regarding future prospects of their bank. o Most of the of Punjab National Bank of them say that they are very bright regarding future prospects of their bank.

100

RECOMMENDATIONS
Some suggestions are given here for both the private and nationalized sector banks. It also includes some of the customer's suggestions which has been received from the open ended questions. Most of the private sector bank customers are of the view that branch network should be increased. Cash should be arranged in such a manner that customers need not to wait. For this purpose more cash counters should be opened and therefore more personnel should be employed to man these counters. Many of the schemes are not much known to the customers. Hence some proper advertisement media like TV. Papers and magazines etc. have to be used to reach the information to the customers. Proper timeliness should be maintained regarding the dispatch of monthly statements Staff members of the bank must engage frequent meetings with the customers, with this they will be able to realize the real difficulties faced by the customers. The employees should attend to the customer's grievances and problems promptly and sympathetically. Outstation cheques should be handled efficiently with minimum possible time. For saving account holders, instead monthly statements, computerized passbooks should be issued to them as it is easier to handle. Private sector banks should make advances less costly.

101

LIMITATIONS
Due to the non availability of list of customers of each bank and time constraint, convenience sampling has been done and different no. of customers from each banks has been selected at random, as a result of which equal number of customers in different categories cannot be taken. It is assume that the banks selected for the study will represent the whole of the private and nationalized sector banks. Knowledge of people about the bank is limited .They are required much more knowledge about the bank.

102

CONCLUSION
"OLD ORDER CHANGES"- Time changes, and we with time. The old order has changed yielding place to new, and we must have new need for the new hour. Change is challenge. To face challenge and to get good result are a sign of good management. In the past, the commercial banks were transactions on commercial loan theory. The modern banking has been rendered many services-opening of branches where finds potentiality for deposit and granting loans and advances to trade, business and industry against security working in convenience hours, providing several agency and utility services to the clientele, in addition to rendering service to the urban sectors. It is needless to say that the modern commercial banks are oriented to customer needs and wants and his convenience and comfort as well. The modern banking is contending for the welfare of human beings. Quality and experience of service is being taken to determine its value. Optimum use of services things on the cooperation, commitment and involvement of employees in the programmed. Now, a day, banks found themselves in a highly competitive and rapidly changing environment with competition. Those banks whether private sector or nationalized sector banks, which can cope with the changing environment and can satisfy the customers, needs can survive in the economy. The rule of the game nowadays is the "Survival of the fittest." Earlier most of the private sector banks were providing better services and satisfy their customers. But now some of the nationalized sector banks also come forward and providing better services to satisfy their clienteles. Punjab national bank, the other nationalized sector banks is also providing the same type of services as that of other private sector banks are providing, but the services of that banks are not as efficient and satisfying as that of the private sector banks. This may be because of the customers perception regarding better services of private sector banks and it takes time to change the opinion. Nationalized sectors banks if providing the similar types of services as that of private sector banks, are much more better than the private sector banks as they have wider branch network, all they have to do is to change their attitude towards their customers and open minded policy regarding various schemes.

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BIBLIOGRAPHY
BOOKS AND JOURNALS Angelini, P. and N. Cetorelli. 2000. Bank Competition and Regulatory Reform: The Case of the Italian Banking Industry. Bank of Italy Temi di discussione, No. 380. Bikker, J. and K. Haaf. 2002. Competition, Concentration and Their Relationship: An Empirical Analysis of the Banking Industry. Journal of Money, Credit and Banking 35: 2191214. Guzman, M. 2000. Bank Structure, Capital Accumulation and Growth: A Simple Macroeconomic Model. Economic Theory 16: 42155. Husain, F., Computerization and Mechanism in Indian Banks, New Delhi, Deep and Deep Publications, 1988. Indias Best banks, Business Today, February 26, 2006 Johri and Jauhari, Role of Computers in Banking Operation Systems, New Delhi, Himalaya Publication House, 1994. Joshi, N.C., Indian Banking, New Delhi, Ashian Publication House,2003. Khan, M.Y., Indian Financial System, New Delhi, Tata McGraw-Hill Publishers, 2004. Kotari, C.R., Research Methodology: Methods and Techniques, New Delhi, New Age International Publications, 2006. Mithani, D.M., Money Banking, International Trade and Public Finance, New Delhi, Himalaya Publishing House, 1994. Murthy, C.S., Fundamentals of Information Technology, New Delhi, Himalaya Publishing House, 1999. Pathak, Bharti V., Indian Financial System, New Delhi, Pearson Publications, 2003. Payne (1999) the Essence Of the services marketing, PHI, New Delhi. Rao (2005) services Marketing, Pearson Education Pvt. Ltd, Delhi Selvam. M. customer satisfaction of Banking services: an overview SAJOPS, July-Dec. 2005 Subrahmanya.K.N. (1985), Modern banking in India, Deep and Deep publications, New Delhi Services Marketing- S.M JHA
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WEBSITES www.economictimes.com www.financialexpress.com http://moneymatters.blog.com/tag/icici-bank-performance/ http://www.valuenotes.com/uploads/article_pdf/A064631305803433.pdf http://www.sbp.co.in/about-us/about-us.htm http://www.business-standard.com/india/news/state-bankpatialas-gross-profitby5133/434371/ http://www.stockmarketsreview.com/recommendations/state_bank_of_india_1qfy2010_pe rformance_highlights_and_result_update_20100820_33034/ https://www.pnbindia.in/en/ui/Profile.aspx http://www.stockmarketsreview.com/recommendations/punjab_national_bank_3qfy2011_ performance_highlights_and_results_update_20110128_95988/

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ANNEXURE: QUESTIONNAIRE
Name: _________________________________ Age in Yearsa) Below 30 b) 30 but below 45 c) 45 but below 60 d) Above 60 Gender: Male/ Female Education: a) Below matric b) Matric but under graduate c) Graduate d) Post graduate e) Professional degree Yearly Income : a) Below 2 lac b) 2 to 5 lac c) 5 to 8 lac d) Above 8 lac Occupation: a) Businessman b) Service Man c) Agriculturist d) Professional e) Any other

Q1. In which of the following bank you have an account? a) Axis Bank b) ICICI Bank c) State Bank of Patiala d) Punjab National Bank Q2. Which type of accounts you have with the bank? Axis Bank Saving A/c Fixed Deposit A/c current A/c Loan A/c ICICI Bank State Bank of Patiala Punjab National Bank

106

Q3. Which of the following factors influenced you most while opening an account in the Bank?
Axis Bank Advertisement Advise of a friends Familiarity with bank employees Advise of existing customers of the bank Near to home/Office A/c of other family members Office salary transferred in the bank Brand name Any other ICICI Bank State Bank of Patiala Punjab National Bank

4. Which of the following services/products your bank provides(please tick)?

Punjab National State Bank of Patiala Bank

Axis Bank Saving A/c. Current A/c. Fixed deposit A/c Semi fixed deposit (Flexi) A/c. Salary Plus Housing loan Educational loan Consumer Loan Personal Loan Auto Loan

ICICI Bank

Loan against securities

107

Axis Bank Demat Services Over draft facility Letter of credit Discounting of bills Internet Banking Mobile banking Home banking ATM facility Credit cards Debit Cards Locker facility

ICICI Bank

State Bank of Patiala

Punjab National Bank

5. How do you generally come to know about the existing or new services/ products offered by your bank? Punjab State Bank of National Patiala Bank

Axis Bank Through advertisement Through staff of the bank Through manager of the bank Through funds Through existing customers of the bank Through website of your bank Through customer meetings Any other

ICICI Bank

108

6. Do they send you regular statements? Axis Bank ICICI Bank State Bank of Patiala Punjab National Bank Yes No

7. At the time of selection of bank how would you rate the following factors? Neither important Most nor unUn Most Un Important Important important. Important Important Location of branches. Layout of branches. Promity of place of resident/ employment/business/ knowledgeable Behaviour of Staff. Familiarity with bank employees. Working Hours available. Qualities of services. No. of ATMs Selling arrangements. Higher rate of interest on deposits. Lower rate of interest
109

on Loans. Reasonable service charges. Minimum Balanced requirements. Any other specify

8. How Often do you use ATM in a month ? Axis Bank ICICI Bank State Bank of Patiala Punjab National Bank Less then 3 times 5 times 5 to 10 times More then 10

9. Have you even faced any problem with ATM ? Axis Bank Waiting in long Que Inserting card in correctly Limit on daily withdrawal Light problem ATM working too slowly Incorrect amount of cash dispensed ATM not able to prints slips when demanded Balance deducted but cash does not received Currency is not proper
110

ICICI Bank

State Bank of Patiala

Punjab National Bank

No choice of currency option None of the above any other 10. Your opinion regarding information displayed on site ? Axis Bank ICICI Bank State Bank of Patiala Punjab National Bank Sufficient Insufficient

11. Have you ever availed or tried to avail the loan from bank? Axis Bank ICICI Bank State Bank of Patiala Punjab National Bank Yes No

If yes please answer 12. Was the disbursed amount sufficient to meet your needs ? Axis Bank Yes No ICICI Bank State Bank of Patiala Punjab National Bank

111

If no tick the other sources from where you raise extra money to fulfill your needs State Bank of Patiala Punjab National Bank

Axis Bank Any other bank Friends & relatives Financial institution Any other

ICICI Bank

13. What is your opinion regarding the over all working of your bank ? State Bank of Patiala Punjab National Bank

Axis Bank Highly Satisfactory Satisfactory Neither Satisfactory nor Dissatisfactory Dissatisfactory Highly Dissatisfactory

ICICI Bank

14. In Your opinion the working of your bank over a period of time ? Punjab National Bank

Axis Bank Improved Remained same Deteriorated

ICICI Bank

State Bank of Patiala

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15. Give your opinion regarding future prospects of your bank ? Punjab National Bank

Axis Bank Very bright Bright Neither bright or dull Dull Very dull

State Bank ICICI Bank of Patiala

113