Project Kshitij

7/28/2019 Project Kshitij

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ALLAHABAD BANK

SUMMER TRAINING PROJECT

Retail Banking in India

Undertaken at

HDFC BANK

Submitted in the partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Supervision Submittedby

and Guidance of MBA 3RD Semester

Mr. Chandan parsad SARGUN KAUR

Enroll no. 08217003911

SESSION: 2012 2013

TECNIA INSTITUTE OF ADVANCED STUDIESApproved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind Singh Indraprastha University,

DelhiINSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085

E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.in

Fax No: 27555120, Tel: 27555121-24

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ALLAHABAD BANK

TECNIA INSTITUTE OF ADVANCED STUDIESApproved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind Singh Indraprastha University,

DelhiINSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085

E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.in

Fax No: 27555120, Tel: 27555121-24

Declaration

I, Sargun kaur (08217003911), MBA 3rd Semester of the Tecnia Institute of Advanced

Studies, Delhi hereby declare that the Summer Training Report entitled Retail

Banking in India with special reference to HDFC bank is an original work and the

same has not been submitted to any other Institute for the award of any other degree. A

presentation of the Summer Training Report was made on _______________________

and the suggestions as approved by the faculty were duly incorporated.

Date: Signature of the Student

Certified that the Summer Training Report submitted in partial fulfillment of Master of

Business Administration (MBA) to be awarded by G.G.S.I.P. University, Delhi by

Sargun kaur Enrolment No. 08217003911 has been completed under my guidance and

is Satisfactory.

Date: Signature of the Guide

Name of the Guide:

Designation:

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Acknowledgement

It gives me immense pleasure and sense of achievement in preparing and presenting this

project report as per the requirements for the completion of Summer Internship project.

Apart from the efforts taken by me, the success of this project depends largely on the

encouragement and guidelines of many others. I take this opportunity to express my

gratitude to the people who have been instrumental in the successful completion of this

project. I would like to express my sincere gratitude towards ALLAHABAD BANKfor

providing me the opportunity to be a part of the organization and offering me a

challenging project as a part of my summer training.

I am deeply indebted to my faculty guide Prof.M.N.JHA from Tecnia Institute of

Advanced Studies(GGSIPU), whose help, stimulating suggestions and encouragement

helped me in all the time of research and for competing this project

I extremely extend my heartiest gratitude to Mr.P.K.ARORA, CHIEF MANAGER

(RETAIL BANKING) ALLAHABAD BANK as without his guidance it would not

have been possible to undertake this project. I hope I can build up this experience and

knowledge that I have gained here and will be able to make a valuable contribution

towards the organization in coming future.

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ALLAHABAD BANK

Contents

S. No Topic Page No.

1 Declaration 2

2 Acknowledgement 3

3 Executive Summary 4

4 List of Tables 6

5 Chapter-1: Introduction 8-20

6 Chapter-2: Research Methodology

21-30

7 Chapter-3: Theoretical Background 31-44

8 Chapter-4: Data Processing and Analysis 45-50

9 Chapter-5: Management Lessons 51-56

10 Chapter-6: Findings 57-58

11 Chapter-7: Recommendations 59-60

12 Chapter-8: Conclusion 61-62

13 References/Bibliography 63

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14 Annexure (Questionnaire) 64-66

List of Tables

Table

No.

Title Pg. no.

1. Consumer responses towards retail banking awareness

46

2. Percentages of people who has ever availed any kind of loan

47

3. Types of loan

48

4. Kind of Banks

48

5. Credit / Debit Cards users

49

6.

7.

8.

9.

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List Of Charts

S.No. Title Pg. no.

1. Types of Research

23

2. Types of Sampling

29

3. Consumer Awareness

46

4. Population availed Loan

47

5. Market share of kinds of loans as per survey

47

6. Market share of public sector banks as per survey

48

7. Share of debit / credit cards

48

8.

9.

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CHAPTER - 1

INTRODUCTION

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INTRODUCTION

Retail banking is banking in whichbanking institutions execute transactions directly

with consumers, rather than corporations or other banks. Services offered

include savingsand transactional accounts, mortgages,personal loans, debit cards,

andcredit cards.

Commercial bankhas two meanings:

Commercial bank is the term used for a normal bank to distinguish it from

an investment bank. (After the great depression, the U.S. Congress required

that banks only engage in banking activities, whereas investment banks were

limited to capital markets activities. This separation is no longer mandatory.)

Commercial bank can also refer to a bank or a division of a bank that mostly

deals with deposits and loans from corporations or large businesses, as

opposed to normal individual members of the public (retail banking). It is

the most successful department of banking.

Community development bankare regulated banks that provide financial services and

credit to underserved markets or populations.

Private Banksmanage the assets of high net worth individuals.

Offshore banks are banks located in jurisdictions with low taxation and regulation.

Many offshore banks are essentially private banks.

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http://en.wikipedia.org/wiki/Banking_institutionhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Banking_institutionhttp://en.wikipedia.org/wiki/Savings_accounthttp://en.wikipedia.org/wiki/Transactional_accounthttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Personal_loanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Community_development_bankhttp://en.wikipedia.org/wiki/Private_bankinghttp://en.wikipedia.org/wiki/Offshore_bank


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Savings banksaccept savings deposits.

Postal savings banksare savings banks associated with national postal systems.

Retail Banking services are also termed as Personal Banking services

.

1.1 COMPANY PROFILE

Allahabad Bank which began operations in 1865, has its head-quarters in Kolkata is

the oldest joint stock bank in India. The bank was founded in the historical city

Allahabad in 1865 and now the bank has crossed 2500 branches on 31st march 2012.

[1]The Chairman and Managing Director of the bank is Shri J. P. Dua. The bank has a

branch in Hong Kongand a representative office inShenzen.

The oldest Joint Stock Bank of the Country, Allahabad Bank was founded on

April24,1865 by a group of Europeans at Allahabad. At that juncture Organized

Industry, Trade and Banking started taking shape in India. Thus, the history of the Bank

spread over three Centuries- Nineteenth, Twentieth and Twenty-First.

Centralized Retail Banking Boutique Branches in 27 cities all over the country, and it

has branches which are widespread to 75 cities of the country.

The Bank opened its first overseas branch at Hong Kong. In March 2007, Banks

business crossed Rs.100000 crores mark.

Allahabad Bank is the oldest nationalized Bank with rich experience in extending

various banking solutions to its valued clients since 1865. Their consistent track record

of growth with profit providing.

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http://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Postal_savings_systemhttp://en.wikipedia.org/wiki/Postal_savings_systemhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Allahabad_Bank#cite_note-0http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Shenzenhttp://en.wikipedia.org/wiki/Shenzenhttp://en.wikipedia.org/wiki/Shenzenhttp://en.wikipedia.org/wiki/Savings_bankhttp://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Postal_savings_systemhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Allahabad_Bank#cite_note-0http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Shenzen


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ALLAHABAD BANK

Allahabad Bank is one of the premier nationalized banks in India. It is also the oldest

joint stock bank oof India. It was incorporated by a group of Europeans at Allahabad on

April 24, 1865. It was the time Indian Economy had started shifting towards organized

trade and business affairs. After some years in 1920, the P & O bank brought Allahabad

Bank and its headquarters at Kolkata. Allahabad Bank got an entirely new identity when

it was nationalized in 1969 along with 13 other banks in India. Since then the Allahabad

Bank had a smooth journey towards progress. Today it is one of the leading bank in

India with a whooping business of over 100000 crores.

BRANCHES AND BUSINESS

Allahabad has adopted CBS (Core Banking Service) since 2006 and has developed 24

hours connectivity with its 2165 branches across the length and breadth of the country.

In 143 years of its existence the bank has come a long way by developing a wide grip

over all the corners of India. At present the Allahabad Bank has 44 zonal offices, 6 staff

training colleges and 3 staff training centres for imparting training centers in India.

Apart from general branches the bank has also come up with specialized branches like

Industrial Finance Branches, International Branches, Finance Branches, Recovery

Branches, NRI Branches Specialized Personal Banking Branches, Specialized Saving

Bank Branches, Quick Collection Service Branches, Trading Finance Branches and

Service Branches in many major cities of India.

The business of the bank are thriving successfully. In the end of March 2007, the

Allahabad Bank crosses a landmark of Rs.100000 crores. The banks business also

registered a 6.90% growth during Apr-Sept 2007, when its business increased upto

Rs.1,08,458 crores from 1,01,458 crores in merely 5 months. On year-on-year basis, the

business of the bank has grown at a rate of 19.87%. the bank also registered an immense

growth in total deposit record when its business went upto Rs.65896 crores at end of

September 2007 from Rs.54006 crores in September 2006.

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ALLAHABAD BANK

THE BANK POLICIES

To provide professional, efficient, courteous, diligent and speedy services in the matter

of retail lending.

a. Not to discriminate on the basis of religion, caste, sex, descent or any of them.

b. To be fair and honest in advertising and marketing of Loan Products.c. To provide customers with accurate and timely disclosure of terms , costs, rights

and liabilities as regards loan transactions.

d. If sought, to provide such assistance or advise to customers applying for loans.

e. To attempt in good faith to resolve any disputes or differences with customers

through complaint redressal cells within the organization.

f. To comply with all the regulatory requirements in good faith.

g. To spread general awareness about potential risks in contracting loans and

encourage customers to take independent financial advice and not to act only on

representation from banks.

PRODUCTS INFORMATION

1. A prospective customer would be given all the necessary information adequately

explaining the range of loan products available with our bank to suit his needs.

2. On exercise of choice, the customer would be given the relevant information

about the loan product of his choice.

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ALLAHABAD BANK

3. The customer would be explained the processes involved till sanction and

disbursement of loan and would be notified of timeframe within which all the

processes will be completed ordinarily at our bank.

4. The customer would be informed of the names and phone numbers of branches

and the persons whom he can contact for the purposes of loan to suit his needs.

5. The customer will be informed the procedure for servicing & closure of the loan

A/C.

INTEREST & OTHER CHARGES

Interest rate for different loan products and the subsequent revisions would be made

available through any one or all of the media, namely- Banks Web Site, over telephone

where tele-banking facility is available, other media.

Interest rate revisions to the existing customers would be notified within 3 working days

from the date of change through the media listed in point no 6.

The bank would notify clearly about the default interest /penal interest rates to the

prospective customers.

Customers would be entitled to receive on demand periodic updates on the interest rates

applicable to their accounts. On demand, customers can have full details of method of

application of interest.

The bank would notify details of all charges payable by the customers in relation to their

loan account.

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ALLAHABAD BANK

The Bank would make available for the benefit of prospective customers all the details

relating to charges and also subsequent revisions (generally in respect of retail products)

In the media as specified in point no 6.

The bank would clearly specify to charge account for interest and charges, wherever

necessary and obtain a mandate from them at the time of documentation for debiting the

said account.

PROCESSING OF LOAN APPLICATION

The Bank would ordinarily give an acknowledgement of receipt of loan request and if

demanded by the customer, a copy of the application form duly acknowledged would

also be given, as soon as the customer chooses to buy a product or service of his choice.

Immediately after the decision to sanction the loan, the Bank would show draft of the

documents that the customer is required to execute and would explain, if demanded by

the customer, the relevant terms and conditions for sanction and disbursement of loan.

Loan application form, Draft documents or such others papers to be signed by a

customer will comprehensively contain all the terms and conditions relating to the

product or service of his choice.

Wherever possible, reasons for rejection of loan would be conveyed to the customers.

Before disbursement of loan and on immediate execution of the loan documents, the

bank would deliver a copy of the duly executed documents to the customers.

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ALLAHABAD BANK

ACCOUNTING PRACTICES

The bank would provide regular statement of accounts, unless not found necessary by

the customers.

The bank would notify due dates for application of agreed interest, penal interest,

default interest and charges if they are not mentioned in the loan applications,

documents or correspondence.

The bank would notify in advance any change in accounting practices that would affect

the customer, before implementation.

INFORMATION SECRECY

All personal information of the customer would be confidential and would not be

disclosed to any third party unless agreed to by the customer. The term Third party

excludes all law enforcement agencies, Credit Information Bureau, Reserve Bank of

India, other banks and financial institutions.

Subject to above Para, customer information would be revealed only under the

following circumstances, namely;

a. If the bank is compelled by law.

b. If it is in the public interest to reveal the information.

c. If the interest of the bank require disclosure.

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ALLAHABAD BANK

FINANCIAL DISTRESS & REDRESSAL OF GRIEVANCES

The bank would encourage the customer to inform about their financial distress toreckon such cases brought in banks notice and consider them sympathetically.

The bank would make available all the details on Grievance Redressal, namely;

a. Where a complaint can be made

b. How a complaint should be made

c. When to expect reply

d. Whom to approach for redressal of grievance etc.

Response to a complaint whether positive or negative or requiring more time for

redressal would be given within a maximum period of four weeks unless the nature of

complaint is such that it requires verification of voluminous facts and figure

PRODUCT AND SERVICES

DEPOSIT PRODUCTS

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ALLAHABAD BANK

Diamond Jubilee Deposit Scheme

Rs.5 Banking

Gold Deposit

Flexi-fix deposit

RETAIL CREDIT PRODUCTS

All Bank Housing Finance Scheme

Personal Loan Scheme for Pensioners

All Bank Property Loan

All Bank Saral Loan Scheme

All Bank Educational Loan Scheme

Overdraft Facility in Savings Bank Account

Personal Loan Scheme for Doctors/ Medical Practitioners

Loan against NSC/ KVP

All Bank Mobile Scheme

All Bank Rent Loan

All Bank Gyan Dipika Scheme

All Bank Car Finance Scheme

All Bank Pilot Training Loan Scheme

All Bank Furnishing Loan

All Bank Gold Loan Scheme

All Bank Reverse Mortgage Scheme

All Bank Abhusan Scheme

All Bank Trade Scheme

OTHER CREDIT PRODUCTS

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ALLAHABAD BANK

Kisan Credit Card

Kisan Shakti Yojana

All Bank-Expo

SERVICES

All Ayushman Bima Yojana

Cash Management Services

Depository Services

Visa Cum Debit Card Services

Real Time Gross Settlement

National Electronic Funds Transfer

Gold Card Scheme for Exporters

Charter for MSMEs

Government Business

The bank particularlyfocuses on the retail bankingwhile serving all

sectors of the Indian economy. Banks operations for corporate and

commercial customers cater to large corporate customers as well as to

small and middle market businesses and government entities. Corporate

and commercial products include Term Loans, Bill Discounting, Export

Credit and other business credit and financing products. Also the bank

offers a wide range of retail products including Home Loans, Personal

Loans and Automobile Loans as well as Debit Cards. In addition,

specialized products and services to the agricultural sector also is one of

the entities of the bank. All the above products or services of the bank

offered through extensive branch network, extension counters, ATMs,

phone banking and the internet. In Twentieth Century, the bank became a

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ALLAHABAD BANK

part of P&O Banking Corporations group with a bid price of Rs.436 per

share in 1920. The Head Office of the bank was shifted o Calcutta on

business considerations during the year 1923. The bank crossed its

century year in 1965. In July 19th of the year 1969, Allahabad Bank was

nationalized (with 151 branches-Rs.119 crores of deposits and Rs.82

crores of Advances) along with 13 other banks. United Industrial Bank

Ltd. was merged with the bank in October of the year 1989. The bank

made a foray into merchant banking activity in 1984 and subsequently

instituted All Bank Finance Ltd.as a wholly owned subsidiary for

Merchant Banking in the year of 1991. The Official Language

Implementation Committee of Calcutta awarded the Rajbhasha Shield to

the Bank as Second Prize for its best performance for the year 1991.

During the year 1995,the bank had entered into an MOU with the Small

Industries Development Bank of India (SIDBI) for financing small-scale

industrial units. In 1996, the bank had set up Information Technology

Centre to provide in-depth computer training to officers at Calcutta and

Lucknow. Consequent to the SEBI Rules and Regulations, the company

surrendered its merchant banking registration in 1998 and got it

registered as a Non Banking Financial Company (NBFC) with ReserveBank of India (RBI). In the same year of 1998, the bank had received

permission from the RBI for gold trading. Allahabad Bank had entered

into an arrangement, informally though, with IDBI and ICICI in regard to

funding of infrastructure projects. During the year 1999, Allahabad Bank

had launched two new schemes to increase the pace of Credit off take

and in the same period TATA CONSULTANCY SERVICES (TCS) has

entered into a contract with the bank for implementing the Integrated

Standard Banking System (ISBS), a branch mechanization package at 60

branches. The bank bagged 3 major core sector clients, namely, National

Thermal Power Corporation (NTPC), Power Grid Corporation and Indian

Railway Finance Corporation Limited (IRFC). In 21st century, Allahabad

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ALLAHABAD BANK

Bank had launched its new Personal Loan Scheme for pensioners in the

year of 2001.

The bank has improved its performance and established its visibility and

strong presence in the market. The bank steadily moving at a faster pace

to consolidate its position in the coming days introducing extensive

computerization to ensure the state-of-the-art service comfort for its

customers. The Bank has already in hand 116 authorizations for opening

of new branches. The Banks plan is to expand in area where the banks

presence is not very much visible now and where business potential is

good.

1.2 OBJECTIVE OF THE STUDY

To understand what is retail banking which includes a major study on retail

lending by Allahabad Bank and also with the help of market survey studying

which type of loan has the largest market share.

Which kind of banks is mostly preferred by people i.e. a distinction between

nationalized and private banks.

Studying about different retail lending products of the bank, what is the

procedure which is followed by bank in retail lending. The study is done by conducting a survey on 100 salaried people may or may

not be the Allahabad Bank customer.

Thus, an analysis is done on the present retail banking scenario of India

focusing mainly on Allahabad bank retail lending.

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CHAPTER - 2

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RESEARCH

METHODOLOGY

OVERVIEW

This chapter highlights what are the types of research used, sources of data and its

collection procedure, sample size and the location from where the data is collected. This

chapter provides a theoretical framework of the survey, interpretation and it supports to

do the analysis.

SOURCES OF DATA

For the purpose of the study, the data required is obtained from two types of sources

namely

Primary Sources

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Secondary Sources

TYPES OF RESEARCH

The different types of research are shown below, out of which one or two will be

utilized for research work.

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Research Design

ConclusiveResearchDesign

ExploratoryResearchDesign

Descriptive Causal


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Chart 2.1 TYPES OF RESEARCH

2.1 PRIMARY DATA

Primary data is important for all areas of research because it is unvarnished information

about the results of an experiment or observation. It is like the eyewitness testimony at a

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Single Cross-SectionalDesign

Multiple Cross-SectionalDesign

Research Design

ConclusiveResearchDesign

ExploratoryResearchDesign

DescriptiveResearch

CausalResearch

Cross-SectionalDesign

LongitudinalDesign


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trial. No one has tarnished it or spun it by adding their own opinion or bias so it can

form the basis of objective conclusions.

Primary data is the specific information collected by the person who is doing the

research. It can be obtained through clinical trials, case studies, true experiments and

randomized controlled studies. This information can be analyzed by other experts who

may decide to test the validity of the data by repeating the same experiments.

Its advantage is that you can find data needed to suit your purpose. Disadvantage

being usually more costly and time consuming than secondary data.

Primary data can be gathered by:

Communication methods

Interacting with respondents.

Asking for their opinions, attitudes, motivations, and characteristics.

Observation Methods

No interaction with respondents.

Letting them behave naturally and drawing conclusions from their behavior.

In this study, I have collected data with the help of a questionnaire, which is a primary

source of data collection. A questionnaire was prepared with the help of my project

guide (external) on retail banking in India and a survey was conducted of 100 salaried

people, mainly comprising of bank customers.

2.2 SECONDARY DATA

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Secondary data is data collected by someone other than the user. Common

sources of secondary data for social science include census, surveys,

organizational records and data collected through qualitative methodologies or

qualitative research.

Secondary data analysis saves time that would otherwise be spent collecting data

and particularly in the case of quantitative data, provided larger and higher-

quality databases than would be unfeasible for any individual researcher to

collect on their own. In addition to that, analysts of social and economic change

consider secondary data essential, since it is impossible to conduct a new survey

that can be adequately capture past change and/or developments.

Secondary data can be obtained from two different research strands:

Quantitative :

Census, housing, social security as well as electoral statistics and other

related data bases.

Qualitative :

Semi-structured and interviews, transcripts observation records and

personal, research-related documents are the part of qualitative data.

A clear benefit of using secondary data is that much of the background

work needed has been already carried out. for example: literature

reviews, case studies might have been carried out, published texts and

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statistic could have been already used elsewhere, media promotion and

personal contacts have also been utilized.

This wealth of background work means that secondary data generally

have a pre-established degree of validity and reliability which need not

be re-examined by the researcher who is re-using such data.

Furthermore, secondary data can also be helpful in the research design

of subsequent primary research and can provide a baseline with which

the collected primary data results can be compared to. Therefore, it is

always wise to begin any research activity with a review of the

secondary data.

In this study, the secondary source of data is obtained from:

Journals, research articles, magazines, internet and newspapers and in

some published sources and also from intranet within the company.

Information collected form guidance of project guide and the employees

of the bank to understand the Retail banking better.

Learning various retail lending product which Allahabad bank offers,

their policies and norms by working there.

This all is done to understand retail banking in a better way to work on this

project and to gain knowledge of the subject before any kind of research on

the topic.

2.3 ASSUMPTIONS / HYPOTHESIS

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A process by which an analyst tests a statistical hypothesis or the methodology

employed by the analyst depends on the nature of the data used and the goals of the

analysis. The goal is to either accept or reject the null hypothesis.

Hypothesis testing is used to infer a result of a hypothesis performed on sample data

from a larger population. For example: performing a hypothesis test on sample data in

an attempt to determine the mean of a population is the same as the mean of the sample.

Based on the literature reviewed and based on the previous studies conducted the

assumptions are made to conduct the research work. The following are the hypothesis

used for the survey.

Ist TEST

H0: Customers are aware of the retail banking products.

H1: Customers are not aware of the retail banking products.

2nd TEST

H0: Home loans are the mostly availed loan kind.

H1: Home loans are not the mostly availed loan kind.

3RD TEST

H0:Nationalized banks are preferred.

H1:Nationalized banks are not preferred.

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2.4 SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from given population. In

sample studies, we have to make a plan regarding the size of the sample, selection of the

sample, collection of the sample data and preparation of the final results based on the

sample study. The whole procedure involved is called the sample design. The term

sample survey is used for a detailed study of the sample. In general, the term sample

survey is used for any study conducted on the sample taken from some real world data.

There are three methods of collecting data such that the information collected can be

used to draw inferences about the target universe. These are:

Collection of data from all enterprises. This is a costly and lengthy procedure

unless the target universe is small.

Collection of data from a sample of units that have been selected from the target

universe with the intention that they should be representative of that universe. A

sample of this kind is referred to as a purposive (or sometimes judgmental)

sample. In order to draw inferences about the target universe using a purposive

sample, a number of assumptions have to be made about the representativeness

of the data collected and of the reporting units and, in general, there are

limitations to the inferences that can be drawn from purposive samples when the

probability of selection is not known.

Collection of data from a random sample of units which have been selected with

known probabilities of selection from among all units in the target universe. In

this case no assumptions about representativeness are needed in estimating totals

or averages for the target universe and, in addition, there are well known

techniques for determining the precision of these estimates. This said, estimates

based on random samples will only be unbiased if the business registers from

which they are drawn are comprehensive and up to date.

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CHART 2.2 TYPES OF SAMPLING

In my study I have used purposive sampling also called NON-PROBABILITY

sampling.

2.5 SAMPLE SIZE

The sample size of the survey done was 100 salaried people, in which Allahabad Bank

customers plus the people from outside were included.

2.6 POPULATION

A statistical population is a set of entities concerning which statistical inferences are to

be drawn, often based on a random sample taken from the population. Population is also

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SamplingTechniques

NonprobabilitySampling

Techniques

ProbabilitySampling

Techniques

Convenien

ceSampling

Judgment

alSampling

Quota

Sampling

Snowba

llSampling

Systematic

Sampling

Stratified

Sampling

ClusterSampli

ng

OtherSampling

Techniques

SimpleRandomSampling


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used to refer to a set of potential measurements or values, including not only case

actually observed but those that are potentially observable.

2.7 METHODS OF DATA COLLECTION

There are various methods of data collection such as:

Observation method

Surveys

Experimentation

Others Techniques if available

The suitable method for this research was survey and the available data in bank records

plus other techniques available.

An interviewer-administered questionnaire is prepared for the purpose; the

questionnaire

is set such a way that it will satisfy all the objectives. Beside the questionnaires are

prepared to get the exact response from the respondents so that it will be easy to do the

hypothesis testing. The questions asked are very simple so that it can be easily

understand by the respondents and it was standardized to ensure reliability. The survey

instrument was developed in such a way that the questions asked would help in efficient

evaluation and to arrive at accurate results.

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CHAPTER - 3

THEORETICAL

BACKGROUND

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RETAIL BANKING

DEFINITION

Retail banking is typical mass-market banking in which individual customers use local

branches of larger commercial banks. Services offered include savings and checking

accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs).

INTRODUCTION

Retail bankingis a banking service that is geared primarily toward individualconsumers. Retail banking is usually made available by commercial banks, as well as

smaller community banks. Unlike wholesale banking, retail banking focuses strictly on

consumer markets. Retail banking entities provide a wide range of personal banking

services, including offering savings and checking accounts, bill paying services, as well

as debit and credit cards. Through retail banking, consumers may also obtain mortgages

and personal loans. Although retail banking is, for the most part, mass-market driven,

many retail banking products may also extend to small and medium sized businesses.

Today much of retail banking is streamlined electronically via Automated Teller

Machines (ATMs), or through virtual retail banking known as online banking.

The concept is not new to banks but is now viewed as an important and attractive

market segment that offers opportunities for growth and profits. Retail banking and

retail lending are often used as synonyms but in fact, the later is just the part of retail

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banking. In retail banking all the needs of individual customers are taken care of in a

well- integrated manner.

CHARACTERISTICS

Multiple products (deposits, credit cards, insurance, investments and

securities)

Multiple channels of distribution (call center, branch, internet)

Multiple customer groups (customer, small business, and corporate).

SCOPE FOR RETAIL BANKING

All round increase in economic activity.

Increase in the purchasing power. The rural areas have the large purchasing

power at their disposal and this is an opportunity to market Retail banking.

India has 200 million households and 400 million middleclass population more

than 90% of the savings come from the house hold sector. Falling interest rates

have resulted in a shit. Now People Want To Save Less And Spend More.

Nuclear family concept is gaining much importance which may lead to large

savings, large number of banking services to be provided are day-by-day

increasing.

Tax benefits are available for example in case loans the borrower can avail tax

benefits for the loan repayment and the interest charged for the loan.

ADVANTAGES OF RETAIL BANKING

Retail banking has inherent advantages. Advantages are analyzed from the resource

angle and asset angle.

RESOURCE SIDE:

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Retail deposits are stable and constitute core deposits.

They are interest insensitive and less bargaining for additional interest.

They constitute low cost funds for the banks.

Effective customer relationship management with the retail customers built a

strong customer base.

Retail banking increases the subsidiary business of the banks.

ASSETS SIDE:

Retail banking results in better yield and improved bottom line for a bank.

Retail segment is a good avenue for funds deployment.

Consumer loans are presumed to be of lower risk and NPA perception.

Helps economic revival of the nation through increased production activity.

Improves lifestyle and fulfils aspirations of the people through affordable credit.

Innovative product development credit.

Retail banking involves minimum marketing efforts in a demand driven

economy.

Diversified portfolio due to huge customer base enables bank to reduce their

dependence on few or single borrower.

Banks can earn good profits by providing non fund based or fee based services

without deploying their funds.

DISADVANTAGES OF RETAIL BANKING:

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Designing own and new financial products is very costly and time consuming for

the bank.

Customers now-a-days prefer net banking to branch banking. The banks that are

slow in introducing technology-based products, are finding it difficult to retain

the customers who wish to opt for net banking.

Customers are attracted towards other financial products like mutual funds etc.

Though banks are investing heavily in technology, they are notable to exploit the

same to the full extent.

A major disadvantage is monitoring and follow up of huge volume of loan

accounts inducing banks to spend heavily in human resource department.

Long term loans like housing loan due to its long repayment term in the absence

of proper follow-up, can become NPAs.

The volume of amount borrowed by a single customer is very low as compared

to wholesale banking. This does not allow banks to exploit the advantage of

earning huge profits from single customer as in case of wholesale banking.

PRODUCTS OFFERED BY ALLAHABAD BANK

RETAIL BANKING

1. ALLAHABAD BANK HOUSING FINANCE

Eligibility:

Salaried persons, Professionals & Self-Employed and Businessmen

having regular income to liquidate the loans

Age:

Minimum: 21 years

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Maximum: Age of retirement for salaried class & 70 years for others.

Purpose:

For construction of residential house on land already owned.

For purchase of New / Old / Unfinished house/flat and

renovation /extension /repair of the same.

For purchase of plot and construction of house thereon

For renovation / extension / repair of residential house already

owned.

Loan amount:

For salaried persons: Up to 60 times of monthly gross salary

(Maximum: Rs. 200 Lac)

For others: Up to 4 times of gross annual Income.

(Maximum: Rs. 200 Lac)

Nature of Loan: Term Loan

Margin:

For loans up to Rs. 20.00 Lacs - 15% of Project cost.

For loans above Rs. 20.00 Lacs - 20% of Project cost.

Project cost consists of:

Purchase price of land/house/flat.

Cost of construction/renovation/extension (if applicable)

Stamp duty and registrations charges as applicable.

Accrued interest amount of moratorium period, if proposed to be

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capitalized

Premium of Loan Insurance.

2. ALLAHABAD BANK EDUCATION LOAN SCHEME

Eligibility:

Indian National who has secured admission to professional/ technical

courses in recognized institutions in India or Abroad through Entrance

Test/ Merit Based Selection Process after completion of H.S.C. (10 plus2 OR equivalent).

Courses Eligible:

Courses eligible for study in India:

Approved courses leading to Graduate/ Posy-Graduate degree and P.G.

Diplomas conducted by recognized Colleges/ Universities recognized by

UGC/ Govt. / AICTE/ AIBMS/ ICMR etc.

Courses like ICWA, CA, CFA etc.

Courses conducted by IIMs, IITs/ IISc, XLRI, NIFT, NID etc.

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Regular Degree/ Diploma Courses like Aeronautical, Pilot Training,

Shipping etc. approved by Director General of Civil Aviation/ Shipping,

if the course is pursued in India.

Approved courses offered in India by reputed Foreign Universities.

Courses eligible for Study abroad:

Graduation: For Job oriented professional/technical courses offered by

reputed Universities.

Post Graduation: MCA, MBA, MS etc.

Courses conducted by CIMA London, CPA in USA etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training,

shipping etc., the Institute duly recognized by the Competent University/

State Body/ Local Aviation/ Shipping Authority.

Quantum of Loan:

Need based finance subject to repaying capacity of the parents / students with

following ceilings:

Studies in India: Maximum Rs. 10.00 lac

Studies abroad: Maximum Rs. 20.00 lac.

Expenses Considered for Loan:

Fee payable to College / School /Hostel

Examination/Library/Laboratory Fee

Purchase of Books / Equipments/ Instruments/ Uniforms.

Caution Deposit/ Building Fund/ Refundable Deposit supported by

Bills/Receipts of the Institution, subject to the conditions that amount

does not exceed 10% of the total tuition fees for the entire course.

Travel Expenses/Passage Money for studies abroad.

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Purchase of Computers essential for completion of the course at

reasonable cost.

Insurance premium for student borrower.

Any other expenses required to complete the course, such as- Study

Tours, Project Work, and Thesis etc.

Reimbursement of the fee paid at the time of counseling if applied within

60 days from the date of such payment.

Margin:

For loan upto Rs 4.00 lac: NIL

For loan above Rs 4.00 lac:

(i) Studies in India: 5%

(ii) Studies abroad: 15%

Scholarship / Assistantship to be included in Margin.

Margin Money to be brought on year-to-year basis.

3. ALLAHABAD BANK CAR FINANCE SCHEME

Purpose:

Purchase of new Vehicle for personal use/official use

Purchase of pre-owned vehicle, not more than 3 years old

The term Vehicles includes: Car, Van, JEEP, Multi Utility Vehicles (MUVs).

Target Group:

Our existing corporate customers, their directors and employees

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Salaried persons, Professionals & Self-Employed, Businessmen, Firms,

Companies, Agriculturist and Pensioners of Central, State Govt. and our

Bank having regular income to liquidate the loans

Eligibility (Income):

Salaried Person: Minimum gross monthly income of Rs.15, 000/-

Agriculturist: Minimum 5 acres of irrigated land holding

Professional & Self-Employed / Businessmen: An IT assesee. With full

collateral security, IT assessment order / IT return may be waived.

Retired individuals: Drawing monthly pension of Rs 15000/= and above.

Firm/ Companies:Net profit is sufficient to meet repayment of Car Loan

Margin:

For New Vehicle: 15% of the cost of vehicle on Road (i.e. one time

registration + first time Road tax & insurance charges etc.).

For Pre-owned Vehicle -85% of the "Agreed Purchase Price" as valued by

Approved Automobile Valuer or60% of the Valuation of the

Vehicle, whichever is lower.

Eligibility (Service Period of Applicant/ Repayment Age/Age of Firm & Company):

Salaried Person: The loan should be repaid at least three months beforethe

date of retirement from service.

Other than Salaried person: Repaid before attaining the age of 70 years.

Firm/ Companies: should be existent for at least 2 years.

Loan Limit:

Maximum of2.5 times of Net Annual Income / Net Annual Salary.

Income of spouse / father/ mother/ son/ unmarried daughtercan also be

clubbed, provided he/she/they become the co-borrower

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No of vehicle:

Maximum number of Car Loans available:

Individual- 2

Partnership Firms -10

Companies 15

4. ALLAHABAD BANK SARAL LOAN SCHEME

Target Group:

Employees of those reputed public sector / private institutions / organizations, whose

salary are disbursed through our branches or the employer is ready for remitting the

monthly installments from the salary.

Eligibility:

o Permanent employee of the institution / organization

o Minimum net monthly salary - Rs.4000/-.

o Age Minimum 21 years

o Leave balance 45 days.

Purpose:

o 50% of the loan amount for purchase of any consumer durable item / two

wheeler etc. or any other tangible item(s)o Upto 50% of the loan amount for meeting domestic, social, religious and

other exigency expenses.

Loan amount:

o 24 months net salary maximum Rs.7,50,000/-.

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Margin: 10%

Repayment Period: Maximum 60 months

Moratorium: One month

Security:

o Hypothecation of articles being financed and /or other items covering full

value of loan

o Guarantee of spouse and one co-employee OR Guarantee of two co-

employees

o Pledge / Assignment of NSC, KVP, LIP & FDR or Equitable Mortgage

of the property if available/ proposed.

o Bank has launched customer friendly SARAL-2 Scheme recently for

extending loan to the employees whose salary is being disbursed through

Allahabad Bank branch and where no salary tie-up with the employer is

available.

5. ALLAHABAD BANK PERSONAL LOAN FOR BANKERS

Target Group & Eligibility Criteria

All the state Govt., Central Govt., teachers pensioners & family pensioners drawing

monthly pension through our branches or from Post Office/Other Banks.

Definition:

Pension means basic pension plus dearness relief at the time of sanction of credit

facility.

Age:

Must not exceed 73 years as on the date of disbursement of loan.

Purpose:

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For any purpose.

Loan amount:

Up to 10 months pension inclusive of relief subject to the following limit.

Maximum Rs. 2.00 Lac for pensioners up to 65 years of age

Maximum Rs. 1.00 Lac for pensioners above 65 years of age

(Age will be reckoned as on date of sanction of loan)

Minimum Rs. 25000 / -

Margin:

Nil

Repayment Period:

Maximum 48 months

Insurance:

Group Personal Accident Insurance Policy of Rs.75,000/- covering accidental death for

the pensioners availing loan under Personal Loan Scheme for Pensioners.

Disbursement:

By credit to his / her (Principal Borrower) S/B account

Processing Fee:

Nil

Collateral Security:

In case of the borrower drawing pension from our Bank and family pensioner is

alive:

Personal Guarantee of the family pensioner as mentioned in the PPO

For others:

Pledge of NSC / KVP / FDR etc. covering 25% or 50% (subject to the condition

of family pensioners) of loan amount.

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In case the above security/ies stand/s in the name of third party/parties personal

guarantee from him/her/them.

Guarantee from 2 persons having individual net worth equal to two times of loan

amount, preferably from legal heirs / son / spouse / daughter.

OPPORTUNITIES AND CHALLENGES OF RETAIL BANKING IN INDIA

Retail banking has immense opportunities in a growing economy like India. As the

growth story gets unfolded in India, retail banking is going to emerge a major driver.I

have already referred to the BRIC Report talking India as an economic superpower. A.

T. Kearney, a global management consulting firm, recently identified India as the

"second most attractive retail destination" of 30 emergent markets.

The rise of the Indian middle class is an important contributory factor in this regard. The

percentage of middle to high income Indian households is expected to continue rising.

The younger population not only wields increasing purchasing power, but as far as

acquiring personal debt is concerned, they are perhaps more comfortable than previous

generations. Improving consumer purchasing power, coupled with more liberal attitudes

toward personal debt, is contributing to India's retail banking segment.

The combination of the above factors promises substantial growth in the retail sector,

which at present is in the nascent stage. Due to bundling of services and delivery

channels, the areas of potential conflicts of interest tend to increase in universal banks

and financial conglomerates. Some of the key policy issues relevant to the retail banking

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sector are: financial inclusion, responsible lending, access to finance, long-term savings,

financial capability, consumer protection, regulation and financial crime prevention.

First, retention of customers is going to be a major challenge. According to a research

by Reichheld and Sasser in the Harvard Business Review, 5 per cent increase in

customer retention can increase profitability by 35 per cent in banking business, 50 per

cent in insurance and brokerage, and 125 per cent in the consumer credit card market.

Thus, banks need to emphasize retaining customers and increasing market share.

Second, rising indebtedness could turn out to be a cause for concern in the future. India's

position, of course, is not comparable to that of the developed world where household

debt as a proportion of disposable income is much higher. Such a scenario creates high

uncertainty. Expressing concerns about the high growth witnessed in the consumer

credit segments the Reserve Bank has, as a temporary measure, put in place risk

containment measures and increased the risk weight from 100 per cent to 125 per cent in

the case of consumer credit including personal loans and credit cards.

Third, information technology poses both opportunities and challenges. Even with ATM

machines and Internet Banking, many consumers still prefer the personal touch of theirneighbourhood branch bank. Technology has made it possible to deliver services

throughout the branch bank network, providing instant updates to checking accounts and

rapid movement of money for stock transfers. However, this dependency on the network

has brought IT departments additional responsibilities and challenges in managing,

maintaining and optimizing the performance of retail banking networks. Illustratively,

ensuring that all bank products and services are available, at all times, and across the

entire organization is essential for todays retails banks to generate revenues and remain

competitive.

Besides, there are network management challenges, whereby keeping these complex,

distributed networks and applications operating properly in support of business

objectives becomes essential. Specific challenges include ensuring that account

transaction applications run efficiently between the branch offices and data centres.

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Fourth, KYC Issues and money laundering risks in retail banking is yet another

important issue. Retail lending is often regarded as a low risk area for money laundering

because of the perception of the sums involved. However, competition for clients may

also lead to KYC procedures being waived in the bid for new business. Banks must also

consider seriously the type of identification documents they will accept and other

processes to be completed.

CHAPTER - 4

DATA

PROCESSING

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4.1 DATA PROCESSING

Do you know what retail banking is?

Responses No. of recipients Percentages

YES 54 54

NO 46 46

TABLE 4.1 Consumer Responses towards retail banking awareness

Consumer awareness about retail banking

CHART 4.1

YES

54%

NO

46%

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Hence, its proved that consumer at present are aware of retail banking products. As

54% have said that they know what retail banking is.

What is your monthly salary?

Mainly the survey conducted by me had middle income group persons, which tells us

that mainly the people using retail banking services at large consists of middle class

population of India and this in turn is helping the sector to grow at rapid state.

Have you ever taken any loan?

Responses Percentages

Yes 95%

No 04%

Dont know 01%

Table 4.2 Percentages of people who has ever availed any kind of loan

CHART 4.2

95%

4%1%

Yes

No

Don't Know

The study above shows that loan is a very famous item in Indian household.

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Which type of loan was it?

Type of loan Percentage

Home Loan 40%

Vehicle Loan 28%

Educational Loan 17%

Personal Loan 15%

TABLE 4.3

40%

28%

17%

15%

Home Loan

Vehicle Loan

Educational

Loan

Personal

Loan

CHART 4.3

As we can see that according to the study and survey conducted, home loans share thehighest percentage. So we can say that home loans are most availed loan kind.

If you have taken loan, which kind of bank was it?

Type of bank Percentage

Nationalized 55%

Private sector 45%

TABLE 4.4

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CHART 4.4

55%

45%

Public Sector

Bank

Private Sector

Bank

So from above data, we can see the most preferred type of banks by common Indian

men are those nationalized banks, which also proves the third hypothesis test which

states that nationalized banks are preferred banks, thus rejecting the alternativehypothesis.

Do you have a debit/ credit card?

Responses Percentage

Yes 99%

No 01%

TABLE 4.5

CHART 4.5

99%

1%

Yes

No

From above we can see the percentage of people having debit or credit cards with them.

Thus showing the awareness of people and for them and how important retail banking is

for people.

4.2 ANALYSIS

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As per the above data, we can see that retail banking is an important part of people in

India. From credit cards or debit cards to loan for house to car or even for furnishing

home has been taken by people. Home is the most famous of all thus it plays a major

role for banks.

Also as public sector or nationalized banks are available everywhere or should say in

every town of the town of the country. They share a major part of banking sector, but

being more famous among people they lack behind the private banks in their facilities

and customer service.

There are 22.5 crore debit cards n the country and while nine of ten transactions are

done at the ATMs, only one transaction is done directly at the merchant establishment.

Now, priority is to make consumers aware of the electronic payment scheme.

The opportunity in India for electronic payments is huge. First, if you look at Indias

personal consumer expenditure (PCE), or the amount spent on a card on an average, it is

only 3% compared to the global average of 16%.

New channels like internet and mobile will help accelerate cashless payments andelectronic mode of disbursement will be a key to ensure the right person receives the

right amount.

Debit card users are growing at a rapid pace in India, closely following the penetration

level of the telecom sector. The volume of debit card transactions in India is expected to

touch 47 crore per year by 2011, with a cumulative transaction value of over Rs 19,369

crore, on account of the increased interest shown by consumers.

The main driver for the growth of debit cards in emerging markets is the increasing

number of people with access to full banking services. Debit card numbers have risen

substantially in markets such as Brazil and India, a study conducted by American

payment processing company First Data said, citing estimates released by Euro monitor

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International. In 2010, there will be 40.7 crore debit card transactions in India, totaling

Rs16,697 crore in transaction value, the study estimates.

CHAPTER - 5

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MANAGEMENT

LESSONS

MANAGEMENT LESSONS

During my summer internship at Allahabad bank and while conducting the survey I

went through different problems everyday and managing all those had a chance to study

different management lessons from this experience. They are:

1. Keep your approach friendly

People are not looking to make friends at work, but refraining from an aggressive

approach towards your employees is a good idea.

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2. Be diplomatic and assertive in your approach

One should be diplomatic in its approach at work which means along with being

friendly the decisions taken should not be dependent on it and also assertiveness for

taking any decisions should be there.

3. Authority that you need before you start work on your project

When taking on a new project / responsibility at work, convey to your management the

extent of authority you need in order to effectively execute youe project.

4. Dont sit on the heads of your team members

Nobody appreciates micro-manager, so never ever force your team members, try and

keep them motivated.

5. Keep track of progress.

Progress record should be kept so that if any changes required can be made.

6. Manage people

More difficult than it sounds, but it should be done so as to get desired results.

7. Personality

Its one of the most important aspect, ones personality affects by and large the team

members and should try and maintain a good personalty.

8. Initiative

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For any work in organizationstaking initiative to work is one of the very important

aspects in management.

9. Charisma to influence others.

10. Commitment

11. Result oriented approach.

12. Optimistic attitude.

13. Self-confident while working in organizations.

14. Ability to read between lines so as to understand the underlying meaning.

15. Should learn to see the big picture, means should have a futuristic view.

16. Goals setting should be done in every project.

17. Flexibility

While it is a good thing to be firm and stand by your decisions. It is important that you

are flexible enough to realize when plans need to change.

18. Look beyond money.

There should be an effort by the manager, project manager, or business executive to

determine what the non monetary interests of the key players are.

19. Say Thanks

Offer words of support, and show appreciation for good work.

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20. People generally wont work for people who just dont care for them

Reward your key players as often as possible its good to keep them motivated and keep

their zeal alive.

21. Rewarding works better than nagging.

A reward can be something as simple as a coin or a note of appreciation- as long as your

employees perceive it as a symbol of recognition, it works.

22. You are accountable for your task/ project.

However, this does not mean that you do not delegate. Delegate work to your team

members, let them know that they are accountable for their assignments and ensure that

they have the resources so that they can deliver successfully. Decide the plan of action

beforehand, and decide how follow-ups will happen.

23. Clear, open communication is a prerequisite for a healthy, result- orientedwork environment.

If you have open communication its easy to know what are the problems faced by your

employees in the organization thus leading to better results.

24. Keep them posted.

A lack of information is a fertile ground for rumor, gossip and insecurity. Keep the team

in the loop about information concerning and affecting them.

25. when in doubt, ask.

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Dont refrain from asking stupid questions- they may save miscommunication and

misunderstandings, resulting in saved time and money.

26. Be open.

While you should not be a dumping ground for grievances, you SHOULD be accessible

enough for team members to openly discuss concerns or delays. (Tip: If you are not

open, youll find out about the concern or delay later in the game when there is less time

to fix it.)

27. Break down work into tasks.

Breaking down the project into smaller tasks (and mini tasks if required) ensures that

you have a systematic approach.

28. Keep it visible and visual.

Plotting a chart or graph about work progress and tacking it in a prominent place on

your soft board (or keeping the softcopy on your desktop) ensures that your progress isvisible.

29. Manage conflict.

Conflicts should be managed especially within the team at an early stage- before it

reaches crisis proportions.

30. Look beyond money.

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There should be an effort by the manager, project manager or business executive to

determine what the non monetary interest of the key players are. Translated to a family

situation, dont sit smug thinking that you are doing your bit by bringing in the bacon.

Your family needs more than that from you- your attention and interest, for instance.

CHAPTER - 6

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FINDINGS

MAJOR FINDINGS

Retail lending across the globe has been a showcase in the commercial banking

sector. India has emerged as potential markets with huge investment

opportunities.

The higher growth of retail lending in emerging economies is attributable to fast

growth of personal wealth, favorable demographic profile, rapid development in

information technology, the conducive macro- economic environment, financial

market reforms and several micro level supply side factors.

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The retail banking strategies of banks are undergoing major transformation, as

banks adopt a mix of strategies like organic growth, acquisitions and alliances.

This has resulted in a paradigm shift in the marketing strategies of the banks.

Public sector banks players are adopting aggressive strategies, leveraging theirbranch network and their customer base to earn a larger share of the retail price.

Banks are also going in for innovative strategies like cross selling and packaged

selling of retail products. At the same time, new foreign players are also entering

this high growth sector.

PSBs need to fundamentally strategies institutional skill levels especially in sales

and marketing, service operations, risk management and the overall

organizational performance ethic. The last, i.e., strengthening human capital will

be the single biggest challenge.

Old private sector banks also have the need of fundamentally strengthen skill

levels.

However, even more imperative is their need to examine their participation in

the Indian banking sector and their ability to remain independent in the light of

the discontinuities in the sector.

New private banks could reach the next level of their growth in the Indian

banking sector by continuing to innovate and develop differentiated business

models to profitable serve segments like the rural / low income and affluent/

HNI segments; actively adopting acquisitions as a means to grow and reaching

the nest level of performance in their service platforms.

Attracting, developing and retaining more leadership capacity would be key to

achieving this and would pose the biggest challenge.

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CHAPTER 7

RECOMMEDATIONS

RECOMMENDATIONS

To increase consumer satisfaction bank can try and improve on their services.

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As people dont know much about all the procedures to avail loan so it should be

explained properly to them.

Some improvisations can be made in loan disbursement policy.

As home loan shave the highest market share it can be made more attractive to

raise income.

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CHAPTER - 8

CONCLUSION

CONCLUSION

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There is a need of constant innovation in retail banking. In bracing for tomorrow, a

paradigm shift in bank financing through innovative products and mechanisms

involving constant up gradation and revalidation of the banks internal systems and

processes is called for. Banks now need to use retail as a growth trigger. This requires

product development and differentiation, innovation and business process reengineering,

micro-planning, marketing, prudent pricing, customization, technological up gradation,

home/ electronic/ mobile banking, cost reduction and cross selling.

While retail banking offers phenomenal opportunities for growth, the challenges are

equally daunting. How far the retail banking is able to lead growth of the banking

industry in future would depend upon the capacity building of the banks to meet the

challenges and make use of the opportunities profitably.

However, the kind of technology used and the efficiency of operations would provide

the much needed competitive edge for success in retail banking business. Furthermore,

in all these customers, interest is of paramount importance. The banking sector in India

is demonstrating this and I do hope they would continue to chart in this traded path.

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BIBLIOGRAPHY

www.iimcal.ac.in/community/finclub/dhan/dhan6

wikipedia.org/wiki/retail_banking www.investorwords.com/4229/retail_banking.html

www.bharatbook.com/general/retail_banking.asp

www.dib.ae/en/personalbanking_productservices.htm

www.allahabadbank.com

BOOKS REFFERED

Qualitative Research: An Introduction to Methods and Designs by

Stephen D. Lapan

Bhattacahrya D.K, 2003, Research Methodology, 1st Edition (Reprint

2004, 2005). New Delhi: Excel Books Publication.

Kothari C.R, 1985, Research Methodology, 2nd Edition (reprint 2006).New Delhi: New Age International (P) limited, Publishers.

ANNEXURE

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http://www.iimcal.ac.in/community/finclub/dhan/dhan6http://www.investorwords.com/4229/retail_banking.htmlhttp://www.bharatbook.com/general/retail_banking.asphttp://www.dib.ae/en/personalbanking_productservices.htmhttp://www.iimcal.ac.in/community/finclub/dhan/dhan6http://www.investorwords.com/4229/retail_banking.htmlhttp://www.bharatbook.com/general/retail_banking.asphttp://www.dib.ae/en/personalbanking_productservices.htm


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QUESTIONNAIRE ON RETAIL BANKING IN INDIA

Name:

Age:

Sex:

1. Do you know about what retail banking is?

Yes { }

No { }

2. What is your monthly salary?

25000-35000 { }

35000-45000 { }

Above 50000 { }

3. Have you ever taken any loan?

Yes { }

No { }

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4. Which type of loan was it?

Home loan { }

Vehicle loan { }

Education loan { }

Personal loan { }

Saral loan { }

5. If you have taken loan which kind of bank was it?

Private bank { }

Public bank { }

6. Do you have a credit / debit card?

Yes { }

No { }

7. If private bank select from option?

HDFC { }

ICICI { ]

AXIS { }

HSBC { }

OTHERS { }

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8. If public bank select from option?

ALLAHABAD BANK { }

IDBI BANK { }

BANK OF INDIA { }

OTHERS { }

9. Are you aware of bank policies?

Yes { }

No [ }

10. Do you take advice before taking loan from bank personnel or friends?

Bank personnel { }

Friends { }

11. Are you satisfied by the loan procedure of banks?

Yes { }

Project Kshitij

Documents

Transcript of Project Kshitij