1.

1 RETAIL BANKING
Service with a smile: Todays finicky banking customers will settle for nothing less. The
customer has come to realize somewhat belatedly that he is the king. The customers choice
of one entity over another as his principal bank is determined by considerations of service
quality rather than any other factor. He wants competitive loan rates but at the same time also
wants his loan or credit card application processed in double quick time. He insists that he be
promptly informed of changes in deposit rates and service charges and he bristles with
customary rage if his bank is slow to redress any grievance he may have. He cherishes the
convenience of impersonal net banking but during his occasional visits to the branch he also
wants the comfort of personalized human interactions and facilities that make his banking
e!perience pleasurable. "n short he wants financial house that will more than #ust clear his
cheque and updates his passbook: he wants a bank that cares and provides great services. So$
do banks meet these heightened e!pectations% "s there a gap that e!ists between the
management perception and the customer perception with reference to the services offered in
&etail 'anking%
1.1.1What is Retail Banking?
&etail banking is$ however$ quite broad in nature ( it refers to the dealing of
commercial banks with individual customers$ both on liabilities and assets sides of the
balance sheet. )i!ed$ current * savings accounts on the liabilities side+ and mortgages$ loans
,e.g.$ personal$ housing$ auto$ and educational- on the assets side$ are the more important of
the products offered by banks. &elated ancillary services include credit cards$ or depository
services. Todays retail banking sector is characterized by three basic characteristics:
multiple products ,deposits$ credit cards$ insurance$ investments and securities-+
multiple channels of distribution , branch$ internet-+ and
multiple customer groups ,consumer$ small business$ and corporate-.
1.1.2 Retail Banking in India:
&etail banking in "ndia is not a new phenomenon. "t has always been prevalent in "ndia in
various forms. )or the last few years it has become synonymous with mainstream banking for
many banks.
.
The typical products offered in the "ndian retail banking segment are housing loans$
consumption loans for purchase of durables$ auto loans$ credit cards and educational loans.
The loans are marketed under attractive brand names to differentiate the products offered by
different banks. /s the Report on Trend and Progress of India, 2003-04 has shown that the
loan values of these retail lending typically range between &s.01$111 to &s..11 lakh. The
loans are generally for duration of five to seven years with housing loans granted for a longer
duration of .2 years. 3redit card is another rapidly growing sub(segment of this product
group.
"n recent past retail lending has turned out to be a key profit driver for banks with retail
portfolio constituting 0..2 per cent of total outstanding advances as on 4arch 0115. The
overall impairment of the retail loan portfolio worked out much less then the 6ross 78/ ratio
for the entire loan portfolio. 9ithin the retail segment$ the housing loans had the least gross
asset impairment. "n fact$ retailing make ample business sense in the banking sector.
9hile new generation private sector banks have been able to create a niche in this regard$ the
public sector banks have not lagged behind. :everaging their vast branch network and
outreach$ public sector banks have aggressively forayed to garner a larger slice of the retail
pie. 'y international standards$ however$ there is still much scope for retail banking in "ndia.
/fter all$ retail loans constitute less than seven per cent of 6;8 in "ndia vis--vis about <2
per cent for other /sian economies = South >orea ,22 per cent-$ Taiwan ,20 per cent-$
4alaysia ,<< per cent- and Thailand ,.? per cent-. /s retail banking in "ndia is still growing
from modest base$ there is a likelihood that the growth numbers seem to get somewhat
e!aggerated. @ne$ thus$ has to e!ercise caution in interpreting the growth of retail banking in
"ndia.
1.1.3 Driers !" retail #anking #$siness in India
Some of the basic reasons which led to the retail banking growth are as follows:
)irst$ economic prosperity and the consequent increase in purchasing power has given
a fillip to a consumer boom. ;uring the .1 years after .AA0$ "ndiaBs economy grew
at an average rate of C.? percent and continues to grow at almost the same rate D not many
countries in the world match this performance.
Second$ changing consumer demographics indicate vast potential for growth in
consumption both qualitatively and quantitatively. "ndia is one of the countries having
highest proportion ,E1F- of the population below <2 years of age ,young population-. The
'&"3 report of the 6oldman(Sachs$ which predicted a bright future for 'razil$ &ussia$ "ndia
0
and 3hina$ mentioned "ndian demographic advantage as an important positive factor for
"ndia.
Third$ technological factors played a ma#or role. 3onvenience banking in the form of
debit cards$ internet and phone(banking$ anywhere and anytime banking has attracted many
new customers into the banking field. Technological innovations relating to increasing use of
credit * debit cards$ /T4s$ direct debits and phone banking has contributed to the growth of
retail banking in "ndia.
)ourth$ the treasury income of the banks$ which had strengthened the bottom lines of
banks for the past few years$ has been on the decline during the last few years. "n such a
scenario$ retail business provides a good vehicle of profit ma!imization. 3onsidering the fact
that retails share in impaired assets is far lower than the overall bank loans and advances$
retail loans have put comparatively less provisioning burden on banks apart from diversifying
their income streams.
)ifth$ decline in interest rates have also contributed to the growth of retail credit by
generating the demand for such credit.
1.1.% &''!rt$nities and (hallenges !" Retail Banking in India
&etail banking has immense opportunities in a growing economy like "ndia. /s the
growth story gets unfolded in "ndia$ retail banking is going to emerge a ma#or driver. How
does the world view us% /s already referred to the '&"3 &eport$ talking "ndia as an
economic superpower+ /. T. >earney$ a global management consulting firm$ recently
identified "ndia as the Gsecond most attractive retail destinationG of <1 emergent markets.
The rise of the "ndian middle class is an important contributory factor in this regard.
The percentage of middle to high income "ndian households is e!pected 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.
"mproving consumer purchasing power$ coupled with more liberal attitudes toward personal
debt$ is contributing to "ndiaBs retail banking segment.
6lobal investors are attracted to "ndia because of the growing number of well(educated$
Hnglish(speaking workers who are comfortable working in information technology. "ndiaBs "T
work force will be augmented by a booming population of engineering students. )urthermore$
"ndiaBs labor pool also serves as an e!panding customer base for retail bank products and
services.
<
The development of "ndiaBs economy is boosting overall consumer purchasing power. The
percentage of middle to high income "ndian households is e!pected to continue rising. The
younger$ more educated population not only wields increasing purchasing power$ but it is
more comfortable than previous generations with acquiring personal debt
The combination of the above factors promises substantial growth in the retail sector$ which
at present is in the nascent stage. ;ue 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 sector are:
financial inclusion$ responsible lending$ access to finance$ long(term savings$ financial
capability$ consumer protection$ regulation and financial crime prevention. The challenges
for the industry and its stakeholders are as follows:
)irst$ retention of customers is going to be a ma#or challenge. /ccording to a research
by &eichheld and Sasser in the Harvard 'usiness &eview$ 2 per cent increase in customer
retention can increase profitability by <2 per cent in banking business$ 21 per cent in
insurance and brokerage$ and .02 per cent in the consumer credit card market. Thus$ banks
need to emphasise on retaining customers and increasing market share.
Second$ rising indebtedness could turn out to be a cause for concern in the future.
"ndiaBs 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. H!pressing concerns about the high growth witnessed in the consumer credit
segments$ the &eserve 'ank has$ as a temporary measure$ put in place risk containment
measures and increased the risk weight from .11 per cent to .02 per cent in the case of
consumer credit including personal loans and credit cards ,4id(term &eview of /nnual
8olicy$ 0115(12-.
Third$ information technology poses both opportunities and challenges. Hven with
/T4 machines and "nternet 'anking$ many consumers still prefer the personal touch of their
neighbourhood 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 "T departments additional responsibilities and challenges in managing$ maintaining
and optimizing the performance of retail banking networks. "llustratively$ 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. 'esides$ there
5
are network management challenges$ whereby keeping these comple! distributed networks
and applications operating properly in support of business ob#ectives becomes essential.
Specific challenges include ensuring that account transaction applications run efficiently
between the branch offices and data centres.
)ourth$ >I3 "ssues and money laundering risks in retail banking is yet another
important issue. &etail 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 >I3 procedures being waived in the bid for new business. 'anks must also consider
seriously the type of identification documents they will accept and other processes to be
completed. The &eserve 'ank has issued detailed guidelines on application of >I3 norms in
7ovember 0115.
1.1.) B$t h!* +!,'etitie are the 'la-ers?
The entry of new generation private sector banks has changed the entire scenario. Harlier the
household savings went into banks and the banks then lent out money to corporates.
7ow they need to sell banking. The retail segment$ which was earlier ignored$ is now the
most important of the lot$ with the banks #umping over one another to give out loans. The
consumer has never been so lucky with so many banks offering so many products to choose
from. 9ith supply far e!ceeding demand it has been a race to the bottom$ with the banks
undercutting one another. / lot of foreign banks have already burnt their fingers in the retail
game and have now decided to get out of a few retail segments completely. The nimble
footed new generation private sector banks have taken a lead on this front and the public
sector banks are trying to play catch up. The 8S's have been losing business to the private
sector banks in this segment. 8S's need to figure out the means to generate profitable
business from this segment in the days to come.
1.1.. What a#!$t the "!reign giants?
The foreign banks have identified the wide opportunity but there are certain systematic risks
involved in operating in the &etail market for them. These include regulatory restrictions that
prevent them from e!panding their branch network. So these banks often take the ;irect
Selling /gent ,;S/- route whereby low(end #obs like sourcing or transaction processing are
outsourced to small regional layers. However$ as a 4c>insey study points out actual write(
offs on 78/s show a strong negative correlation with sharing of positive information. @n top
of this$ the spend(now(pay(later Jcredit cultureK in "ndia is #ust not picking up. / swift legal
procedure against consumers creating bad debt is virtually none!istent. )inally$ the vast
2
geographical and cultural diversity of the country makes credit policy formulation a tough #ob
/ll these add up to the unattractiveness too$ of the "ndian retail market to the foreign players.
Iet 3itibank$ HS'3 and Standard 3hartered=all in "ndia for more than a century$ and with
relatively large retail networks=seem to have no pressing need to acquire a local bank.
Hstablished foreign banks have preferred to take over customers or businesses from other
foreign banks that want to leave. Thus HS'3$ in recent years$ has acquired customers from
)ranceBs '78$ 6ermanyBs ;eutsche 'ank and LapanBs 'ank of Tokyo(4itsubishi. /'7 /mro
took over 'ank of /mericaBs retail business.
1.1./ Reas!ns "!r the +hange !er "r!, (!r'!rate Banking t! Retail Banking:
M The financial sector reforms undertaken by the 6overnment since the year .AA. have
accelerated the process of disintermediation which has encouraged blue chip corporate to
access cheaper funds to meet their working capital requirements directly from investors in
"ndia and abroad through capital market instruments and e!ternal 3ommercial 'orrowings
route thus by(passing 'anks in the process. The deregulation of markets and interest rates
has lead to cut throat competition among 'anks for corporate loans making them to lend even
at 8:& or sub 8:& and offer other valued services at comparatively cheaper rates to big and
high value corporates. "n the process$ most of the banks have e!perienced substantial
reduction in interest spreads and drain on their profitability.
M The introduction of stringent /sset 3lassification$ "ncome &ecognition and provisioning
norms has resulted in growing menace of 78/s in corporate loans which has affected the
asset quality$ profitability and capital adequacy of banks adversely. The risks involved in
corporate loans are very high as corporates have to keep all their eggs in one basket. The risks
involved in retail 'anking advances are comparatively less and well diversified as loan
amounts are relatively small ranging from &s. 2111 to &s. .11 lakh and repayable normally
in short period of <( years e!cept housing loans ,where repayment period is long up to .2
years in some cases- and from fi!ed source of income like salaries.
M 9hereas corporate loans give average return of #ust 1.2 to ..2 percent only$ the retail
advances offer attractive interest spread of <to 5 percent$ because retail borrowers are less
interest rate sensitive than the 3orporates. /nother reason for large interest spreads on retail
advances is that the retail customers are too fragmented to bargain effectively.
C
M 9hile corporate loans are sub#ect to ups and downs in trade frequently$ retail loans are
comparatively independent of recession and continue to deliver even during the sluggish
phase of economy.
M &etail 'anking gives a lot of stability and public image to banks as compared to corporate
banking.
M The housing loans$ which form the ma#or chunk of retail lending and where 78/s are the
least$ carry risk weight of #ust 21F for capital adequacy purposes. This is likely to come
down further as new 'asel 3apital /ccord or ,'asel ""- norms are put in place from the year
011C. This offers added incentive to banks for lending to this retail segment as against
corporate lending where capital consumption is higher.
M The greater amount of consumerism in the country with upswing in income levels of
burgeoning middle class$ which has propensity to consume to raise their standard of living$ is
enlarging the retail markets. This market is growing 0 21 percent per year and boosting the
demand for credit from households. The potential is huge as present penetration level is #ust
over 0 percent in the country. 6iven the easy liquidity scenario in the country the growth rate
in this sector is likely to go up manifold in the years come. This offers great potential for
banks to enlarge their loan books.
M The "ndian mindset is also changing and consumers prefer to improve their quality of life
even if it means borrowing for facilities like housing$ consumer goods vehicles and
vacationing etc. 'orrowing and lending is no longer considered a taboo. The peer pressure
and demonstration effect is further pushing up demand for housing loans$ consumer products
and automobiles. The profiles of customers are fast changing from conservative dodos to
fashionable peacocks. /ll these developments give big push to &etail 'anking activities.
M &etail 'anking clients are generally loyal and tend not to change from one 'ank to another
very often.
M :arge numbers of &etail clients facilitate marketing$ mass selling and ability to
categorize*select clients using scoring system and data mining. 'anks can cut costs and
achieve economies of scale and improve their bottom(line by robust growth in retail business
volume.
E
M Through product innovations and competitive pricing strategies 'anks can foster business
relationship with customers to retain the e!isting clients and attract new ones.
M "nnovative products like asset securitization can open new vistas in sustaining optimal
capital adequacy and asset liability management for banks.
M &etail 'anking offers opportunities to banks to cross(sell other retail products like credit
card$ insurance$ mutual fund products and demat facilities etc. to depositors and investors.
1.1.0 I,'a+t !" Retail Banking:
The ma#or impact of retail 'anking is that$ the customers have become the Hmperors D the
fulcrum of all 'anking activities$ both on the asset side and the liabilities front. The hitherto
sellers market has transformed into buyers market the customers have multiple of choices
before them now for cherry picking products and services$ which suit their lifestyles and
tastes and financial requirements as well. 'anks now go to their customers more often than
the customers go to their banks.
M &etail 'anking is transforming banks into one stop financial super markets.
M The share of retail loans is fast increasing in the loan books of banks.
M 'anks can foster lasting business relationship with customers and retain the e!isting
customers and attract new ones. There is a rise in their service as well.
M 'anks can cut costs and achieve economies of scale and improve their revenues and profits
by robust growth in retail business. &eduction in costs offers a win win situation both for
banks and the customers.
M "t has affected the interface of banking system through different delivery mechanism
M "t is not that banks are sharing the same pie of retail business$ the pie itself is growing
e!ponentially. &etail 'anking has fuelled a considerable quantum of purchasing power
through a slew of retail products.
M 'anks can diversify risks in their credit portfolio and contain the menace of 78/s. &etail
banking allows bank to cross sell other products and services as it is far more easier to sell
?
other products to the same customer rather than search for absolutely new ones. 3ross selling
is one of the best avenues for relationship
M 'anking and retention of customers. 'anks can thus increase their business volume and
improve their bottom(line substantially.
M &e(engineering of business with sophisticated technology based products will lead to
business creation$ reduction in transaction costs and enhancement in efficiency of operations.
1.1.1 2r!#le,s "a+ed in Retail Banking:
M &etail 'anking has all its attendant risks. "t is highly sensitive .'anks got to move
cautiously. "t is easy to enter$ but difficult to get out. / systematic and a calculated approach
is the pre(requisite for success in the long run.
M &etail 'anking is being introduced with the concept of serving customer with better and
innovative products with the latest technology and easy availability. "t becomes so popular
and widely acceptable that more and more customers had started to use it. 7ow it becomes a
mass product. 3ustomer database have tremendously increased and it becomes difficult to
manage them.
M To match the customer inflows and current customer requirements as well as service
standards$ banks have to set up more branches$ distribution channels and new trained staff as
well as improvement in back office operations also in very near future. This itself a time
bounded problem and banks have to do it as early as possible.
M Todays competitive market customer has more than one options for his retail banking
needs. Hvery bank is providing more or less similar kind of products. So an unsatisfied
customer can easily switch over to another competitors bank. So banks need to be very
careful in handling the customers. They have to continually improve their service standards.
M &etail 'anking is so wide accepted by the customer as well as very aggressively promoted
by the bankers that if the bankers do not take adequate care in distributing and recovering
advances$ there are chances of increasing in 78/s in coming feature. /nd that would be an
alarming situation.
A
1.1.13 Retail Banking 2r!d$+ts 2!rt"!li!
A.De'!sits:
There are many products in retail banking like )i!ed ;eposit$ Savings /ccount$ 3urrent
/ccount$ &ecurring /ccount$ 7&" /ccount$ 3orporate Salary /ccount$ )ree ;emat /ccount$
>ids /ccount$ Senior 3itizen Scheme$ 3heque )acilities$ @verdraft )acilities$ )ree ;emand
;raft )acilities$ :ocker )acilities$ 3ash 3redit )acilities$ etc. They are listed and e!plained as
follows:
.. )i!ed ;eposit:
The deposit with the bank for a period$ which is specified at the time of making the deposit is
known as fi!ed deposit. Such deposits are also known as ); or term deposit ./ ); is
repayable on the e!piry of a specified period. The rate of interest and other terms and
conditions on which the banks accepted ); were regulated by the &'"$ in section 0. and <2/
of the 'anking &egulation /ct .A5A.Hach bank has prescribed their own rate of interest and
has also permitted higher rates on deposits above a specified amount. &'" has also permitted
the banks to formulate ); schemes specially meant for senior citizen with higher interest
than normal.
0. Savings /ccount:
Saving bank account is meant for the people who wish to save a part of their current income
to meet their future needs and they can also earn in interest on their savings. The rate of
interest payable on by the banks on deposits maintained in savings account is prescribed by
&'".
7ow(a(days the fi!ed deposit is also linked with saving account. 9henever there is e!cess of
balance in saving account it will automatically transfer into )i!ed deposit and if there is
shortfall of funds in savings account $ by issuing cheque the money is transferred from fi!ed
deposit to saving account. ;ifferent banks give different name to this product.
<. 3urrent /ccount:
/ current account is an active and running account$ which may be operated upon any number
of times during a working day. There is no restriction on the number and the amount of
withdrawals from a current account. 3urrent account$ suit the requirements of a big
.1
businessmen$ #oint stock companies$ institutions$ public authorities and public corporation
etc.
5. &ecurring ;eposit:
/ variant of the saving bank a*c is the recurring deposit or cumulative deposit a*c introduced
by banks in recent years. Here$ a depositor is required to deposit an amount chosen by him.
The rate of interest on the recurring deposit account is higher than as compared to the interest
on the saving account. 'anks open such accounts for periods ranging from . to .1 years.. The
recurring deposit account can be opened by any number of persons$ more than one person
#ointly or severally$ by a guardian in the name of a minor and even by a minor.
2. 7&" /ccount:
7&" accounts are maintained by banks in rupees as well as in foreign currency. )our types of
&upee account can be open in the names of 7&":
a. 7on &esident &upee @rdinary /ccount ,7&@-
b. 7on &esident H!ternal /ccount ,7&H-
c. 7on &esident , 7on &epatriable ;eposit Scheme - , 7&7&-
d. 7on &esident , special-&upee /ccount Scheme , 7&S&-
/part from this$ foreign currency account is the account in foreign currency. The account can
be open normally in NS ;ollar$ 8ound Sterling$ Huro. The accounts of 7&"s are "ndian
millenium deposit$ &esident foreign currency$ housing finance scheme for 7&" investment
schemes.
C. 3orporate Salary /ccount:
3orporate Salary account is a new product by certain private sector banks$ foreign banks and
recently by some public sector banks also. Nnder this account salary is deposited in the
account of the employees by debiting the account of employer. The only thing required is the
account number of the employees and the amount to be paid them as salary. "n certain cases
the minimum balance required is zero. /ll other facilities available in savings a*c is also
available in corporate salary account.
..
E. ;emat /ccount:
;ematerialization is a process by which physical share certificates * securities are taken back
by the company or registrar and destroyed ultimately. /n equivalent number of shares are
credited electronically to customers depository account. Lust like saving*current account with
a bank one can open a securities account with the depository through a depository participant
?. >ids /ccount , 4inor /ccount - :
3hildren are invited as customer by certain banks. Nnder this$ /ccount is opened in the name
of kids by parents or guardians. The features of kids account are free personalized cheque
book which can be used as a gift cheque $ internet banking $ investment services etc.
A. Senior 3itizenship Scheme:
Senior citizens can open an account and on that account they can get interest rate somewhat
more than the normal rate of interest. This is due to some social responsibilities of banks
towards aged persons whose earnings are mainly on the interest rate.
B. L!ans and Adan+es:
The main business of the banking company is lending of funds to the constituents$ mainly
traders$ business and industrial enterprises. The ma#or portion of a banks funds is employed
by way of loans and advances$ which is the most profitable employment of its funds. There
are three main principles of bank lending that have been followed by the commercial banks
and they are safety $ liquidity$ and profitability.
'anks grant loans for different periods like short term$ medium term$ long term and also for
different purpose.
.. 8ersonal :oans: This is one of the ma#or loans provided by the banks to the individuals.
There the borrower can use for his*her personal purpose. This may be related to his*her
business purpose. The amount of loan is depended on the income of the borrower and his*her
capacity to repay the loan.
0. Housing :oans: 7H' is the wholly own subsidiary of the &'" which control and regulate
whole industry as per the guidance and information. The purpose of loan is mainly for
purchase$ e!tension$ renovation$ and land development.
.0
<. Hducation :oans: :oans are given for education in country as well as abroad.
5. Oehicle :oans: :oans are given for purchase of scooter$ auto(rickshaw$ car$ bikes etc. :ow
interest rates$ increasing income levels of people are the factors for growth in this sector.
Hven for second hand car finance is available.
2. 8rofessional :oans: :oans are given to doctor$ 3./$ /rchitect$ Hngineer or 4anagement
3onsultant. Here the loan repayment is normally done in the form of equated monthly.
C. 3onsumer ;urable :oans: Nnder this$ loans are given for acquisition of T.O$ 3ell phones$
/.3$ 9ashing 4achines$ )ridge and other items.
E. :oans against Shares and Securities: )inance against shares are given by banks for
different uses. 7ow(a(days finance against shares are given mostly in demat shares. / margin
of 21F is normally accepted by the bank on market value. )or these loans the documents
required are normally ;8 notes$ letter of continuing security$ pledge form$ power of attorney.
This loan can be used for business or personal purpose.
1.1.11 Retail Banking 4eri+es
.. 3&H;"T 3/&;S:
/ credit card is an instrument$ which provides immediate credit facilities to its holder to avail
a variety of goods and services at the merchant outlets. "t is made of plastic and hence
popularly called as 8lastic 4oney. Such cards are issued by bank to persons with minimum
income ranging between &S 21111 and &S .11111 per annum and are accepted by a variety
of business establishments which are notified by the card issuing bank. Some banks insist on
the cardholder being their customers while others do not. )ew banks do not charge any fee
for issuing credit cards while others impose an initial enrollment fee and annual fee also. "f
the amount is not paid within the time duration the bank charges a flat interest of 0.2F.
:eading "ndian 'anks such as : S'"$ '@'$ 3anara 'ank$ "3"3"$ H;)3 and a few foreign
banks like 3"T"'/7>$ Standard 3hartered etc are the important issuers of credit card in
"ndia.
0. ;H'"T 3/&;S:
"t is a new product introduced in "ndia by 3itibank a few years ago in association with
4aster3ard. / debit card facilitates purchases or payments by the cardholder ."t debits
.<
money from the account of the cardholder during a transaction. This implies that the
cardholder can spend only if his account permits.
<. 7HT '/7>"76: This facilitates the customers to do all their banking operations from
their home by using the internet facility. 9ith 7et 'anking one can carry out all banking and
shopping transactions safely and with total confidentiality. 9ith 7et 'anking one can easily
perform various functions:
a. 3heck /ccount 'alance
b. ;ownload /ccount Statement
c. &equest for a stop payment of a cheque.
d. &equest for a new cheque book.
e. /ccess demat account
f. Transfer funds.
g. )acilitate bill 8ayments.
h. 8ay 3redit 3ard dues instantly.
5. 4@'":H '/7>"76:
Nsing mobile banking facility one can D
a. 3heck 'alance
b. 3heck last three transactions.
c. &equest for a statement
d. &equest for a cheque book.
e. Hnquire on a cheque status.
f. "nstruct stock cheque payment.
g. Oiew ); details.
h. Transfer funds.
i. 8ay Ntility 'ills.
.5
2. 8H@7H '/7>"76:
"t helps to conduct a wide range of banking transactions from the comfort of ones home or
office. Nsing phone banking facility one can:
a. 3heck 'alance
b. 3heck last three transactions.
c. &equest for a cheque book.
d. Transfer funds.
e. Hnquire on a cheque status$ and much more.
C. /7I9HH&H '/7>"76: @ne can deposit or withdraw cash from any branch of a
particular bank all over the country up to a prescribed limit. @ne can also transfer funds.
E. /NT@4/TH; TH::H& 4/3H"7HS ,/T4-:
/T4s features user(friendly graphic screens with easy to follow instructions. The /T4s
interact with customers in their local language for increased convenience.
"3"3" 'anks /T4 network is one of the largest and most widespread /T4 network in
"ndia. )ollowing are the features available on /T4s which can be accessed from anywhere
at anytime:
a. 3ash 9ithdrawal
b. 3ash ;eposit
c. 'alance Hnquiry
d. 3heque 'ook &equest
e. Transaction at various merchant establishments.
?. S4/&T 3/&;:
The smart card$ a latest additional to the world of banking and information technology has
emerged as the largest volume driven end(product in the world due to its data portability$
security and convenience. Smart 3ard is similar in size to todays plastic payment card$ it has
a memory chip embedded in it. The chip stores electronic data and programmes that are
protected by advanced security features. 9hen coupled with a reader$ the smart card has the
.2
processing power to serve many different applications. /s an access(control device$ smart
cards make personal and business data available only to appropriate users.
To ensure the confidentiality of all banking service$ smart cards have mechanisms offering a
high degree of security. These mechanisms are based on private and public key cryptography
combined with a digital certificate$ one of the most advanced security techniques currently
available. "nfact$ it is possible to connect to the web banking service without a smart card.
1.2 W5AT I4 (64T&7ER 2ER(E2TI&N?
3ustomer 8erception is an important component of an organizations relationship with their
customers. 3ustomer satisfaction is a mental state which results from the customers
comparison of e!pectations prior to a purchase with performance perception after a purchase.
Strong customer service helps an organization to reach upto customers e!pectations.
3ustomer 8erception on Service: 3ustomer Service is the service provided in support of a
companys core products. 3ustomer Service most often includes answering questions$ taking
orders$ dealing with billing issues$ handling complaints$ and perhaps scheduling maintenance
or repairs. 3ustomer Service can occur on site$ or it can occur over the phone or via the
internet. 4any companies operate customer service call centers$ often staffed around the
clock. Typically there is no charge for customer service. Puality customer service is essential
to building customer relationships. "t should not$ however$ be confused with the services
provided for sale by a company. Services tend to be more intangible than manufactured
products. There is a growing market for services and increasing dominance of services in
economies worldwide. There are generally two types of customer e!pectations. The highest
can be termed as desired service: the level of service the customer hopes to receive. The
threshold level of acceptable service which the customers will accept is adequate service. Iet
there is hard evidence that consumers perceive lower quality of service overall and are less
satisfied. 8ossible reasons may be:
M 9ith more companies offering tiered service based on the calculated profitability of
different market segments$ many customers are in fact getting less service than they have in
past.
M "ncreasing use by companies of self(service and technology(based service is perceived as
less service because no human interaction or human personalization is provided.
.C
M Technology(based services ,/utomated Ooice Systems$ "nternet('ased Services$
Technology >iosks- are hard to implement$ and there are many failures and poorly designed
systems in place.
M 3ustomer e!pectations are higher because of the e!cellent service they receive from some
companies. Thus they e!pect the same from all and are frequently disappointed.
M @rganizations have cut costs to the e!tent that they are too lean and are too understaffed to
provide quality service.
M The intensely competitive #ob market results in less skilled people working in frontline
service #obs+ talented workers soon get promoted or leave for better opportunities.
M 4any companies give lip service to customer focus and service quality+ but they fail to
provide the training $ compensation$ and support needed to actually deliver quality service.
M ;elivering consistent$ high(quality service is not easy$ yet many companies promise it.
The gaps model positions the key concepts$ strategies$ and decisions in services marketing in
a manner that begins with the customer and builds the organizations tasks around what is
needed to close the gap between customer e!pectations and perceptions.
The central focus of the gaps model is the customer gap$ the difference between customer
e!pectations and perceptions. )irms need to close this gap( between what customers e!pect
and receive D in order to satisfy their customers and build long term relationships with them.
To close this all important customer gap$ the model suggests that four gaps( the provider
gaps( need to be closed.
The following four provider gaps$ shown below are the underlying causes behind the
customer gap:
6ap .: 7ot knowing what customers e!pect.
6ap 0: 7ot selecting the right service designs and standards.
6ap <: 7ot delivering to service standards.
6ap 5: 7ot matching performance to promises.
.E
1.3 IND64TR8 2R&9ILE
The 'anking &egulation /ct .A5A defines banking as accepting the purpose of lending or
investment$ of deposits of money from the public$ repayable on demand or otherwise and
wthdrawable by cheque$ draft$ order otherwise. The essential function of a bank is to provide
services related to the storing of value and the e!tending credit. The evolution of banking
dates back to the earliest writing$ and continues in the present where a bank is a financial
institution that provides banking and other financial services. 3urrently the term bank is
generally understood an institution that holds a banking license. 'anking licenses are granted
by financial supervision authorities and provide rights to conduct the most fundamental
banking services such as accepting deposits and making loans. There are also financial
institutions that provide certain banking services without meeting the legal definition of a
bank$ a so called non(bank. 'anks are a subset of the financial services industry. The word
J'ankK is derived from the "talian word banco signifying a bench$ which was erected in the
market place$ where it was customary to e!change money+ the first bench having been
established in "taly a.d. ?1?. The basic functions of banks are to accept deposits$ lend money
and act as collecting and paying agents. The 'ank of 'arcelona in Spain ,.51.- was perhaps
the first institution that could be called a bank in this sense. The terms bankrupt and GbrokeG
are similarly derived from banca rotta $ which refers to an out of business bank$ having its
bench physically broken. 4oney lenders in 7orthern "taly originally did business in open
areas$ or big open rooms$ with each lender working from his own bench or table. Typically$ a
bank generates profits from transaction fees on financial services or the interest spread on
resources it holds in trust for clients while paying them interest on the asset.
1.3.1 5I4T&R8 &9 T5E INDIAN BANKING 4E(T&R
'anking in "ndia has its origin as early as the Oedic period. "t is believed that the transition
from money lending to banking must have occurred even before 4anu$ the great Hindu
Lurist$ who has devoted a section of his work to deposits and advances and laid down rules
relating to rates of interest. ;uring the 4ogul period$ the indigenous bankers played a very
important role in lending money and financing foreign trade and commerce. ;uring the days
of the Hast "ndia 3ompany$ it was the turn of the agency houses to carry on the banking
business. The 6eneral 'ank of "ndia was the first Loint Stock 'ank to be established in the
year .E?C. The others which followed were the 'ank of Hindustan and the 'engal 'ank.
.?
The 'ank of Hindustan is reported to have continued till .A1C while the other two failed in
the meantime. "n the first half of the .A
th
century the Hast "ndia 3ompany established three
banks+ the 'ank of 'engal in .?1A$ the 'ank of 'ombay in .?51 and the 'ank of 4adras in
.?5<. These three banks also known as 8residency 'anks$ were independent units and
functioned well. These three banks were amalgamated in .A01 and a new bank$ the "mperial
'ank of "ndia was established on 0E
th
Lanuary .A0..
)oreign banks too started to arrive$ particularly in 3alcutta$ in the .?C1s. The 3omptoire
dHscompte de 8aris opened a branch in 3alcutta in .?C1$ and another in 'ombay in .?C0+
branches in 4adras and 8ondicherry$ then a )rench colony$ followed. 3alcutta was the most
active trading port in "ndia$ mainly due to the trade of the 'ritish Hmpire$ and so became a
banking center.
The fervour of Swadeshi movement lead to establishing of many private banks in ;akshina
>annada and Ndupi district which were unified earlier and known by the name South 3anara
, South >anara - district. )our nationalised banks started in this district and also a leading
private sector bank. Hence undivided ;akshina >annada district is known as G3radle of
"ndian 'ankingG.
9ith the passing of the State 'ank of "ndia /ct in .A22 the undertaking of the "mperial 'ank
of "ndia was taken over by the newly constituted State 'ank of "ndia.
The &eserve 'ank which is the 3entral 'ank was created in .A<2 by passing &eserve 'ank
of "ndia /ct .A<5. "n the wake of the Swadeshi 4ovement$ a number of banks with "ndian
management were established in the country namely$ 8un#ab 7ational 'ank :td$ 'ank of
"ndia :td$ 3anara 'ank :td$ "ndian 'ank :td$ the 'ank of 'aroda :td$ The 3entral 'ank of
"ndia :td. @n Luly .A$ .ACA$ .5 ma#or banks of the country were nationalized and in .2
th

/pril .A?1$ si! more commercial private sector banks were also taken over by the
government.
3urrently$ "ndia has ?? scheduled commercial banks ,S3's- ( 0E public sector banks ,that is
with the 6overnment of "ndia holding a stake-$ 0A private banks ,these do not have
government stake+ they may be publicly listed and traded on stock e!changes- and <. foreign
banks. They have a combined network of over 2<$111 branches and .E$111 /T4s.
/ccording to a report by "3&/ :imited$ a rating agency$ the public sector banks hold over E2
.A
percent of total assets of the banking industry$ with the private and foreign banks holding
.?.0F and C.2F respectively.
9r!, W!rld War I t! Inde'enden+e:
The period during the )irst 9orld 9ar ,.A.5(.A.?- through the end of the Second 9orld
9ar ,.A<A(.A52-$ and two years thereafter until the independence of "ndia were challenging
for "ndian banking. The years of the )irst 9orld 9ar were turbulent$ and it took its toll with
banks simply collapsing despite the "ndian economy gaining indirect boost due to war(related
economic activities. /t least A5 banks in "ndia failed between .A.< and .A.?.
2!st:inde'enden+e:
The partition of "ndia in .A5E adversely impacted the economies of 8un#ab and 9est 'engal$
paralyzing banking activities for months. "ndiaBs independence marked the end of a regime of
the :aissez(faire for the "ndian banking. The 6overnment of "ndia initiated measures to play
an active role in the economic life of the nation$ and the "ndustrial 8olicy &esolution adopted
by the government in .A5? envisaged a mi!ed economy. This resulted into greater
involvement of the state in different segments of the economy including banking and finance.
The ma#or steps to regulate banking included:
"n .A5?$ the &eserve 'ank of "ndia$ "ndiaBs central banking authority$ was
nationalized$ and it became an institution owned by the 6overnment of "ndia.
"n .A5A$ the 'anking &egulation /ct was enacted which empowered the &eserve
'ank of "ndia ,&'"- Gto regulate$ control$ and inspect the banks in "ndia.G
The 'anking &egulation /ct also provided that no new bank or branch of an e!isting
bank could be opened without a license from the &'"$ and no two banks could have
common directors.
However$ despite these provisions$ control and regulations$ banks in "ndia e!cept the State
'ank o "ndia$ continued to be owned and operated by private persons. This changed with the
nationalization of ma#or banks in "ndia on .A Luly$ .ACA.
Nati!nali;ati!n:
'y the .AC1s$ the "ndian banking industry has become an important tool to facilitate the
development of the "ndian economy. /t the same time$ it has emerged as a large employer$
and a debate has ensued about the possibility to nationalize the banking industry. "ndira
6andhi$ the(then 8rime 4inister of "ndia e!pressed the intention of the 6overnment of "ndia
in the annual conference of the /ll "ndia 3ongress 4eeting in a paper entitled GStray
thoughts on 'ank 7ationalization.G The paper was received with positive enthusiasm.
Thereafter$ her move was swift and sudden$ and the 6@" issued an ordinance and
01
nationalized the .5 largest commercial banks with effect from the midnight of Luly .A$ .ACA.
Layaprakash 7arayan$ a national leader of "ndia$ described the step as a Gmasterstroke of
political sagacity.G 9ithin two weeks of the issue of the ordinance$ the 8arliament passed the
'anking 3ompanies ,/cquisition and Transfer of Nndertaking- 'ill$ and it received the
presidential approval on A /ugust$ .ACA.
/ second dose of nationalization of C more commercial banks followed in .A?1. The stated
reason for the nationalization was to give the government more control of credit delivery.
9ith the second dose of nationalization$ the 6@" controlled around A.F of the banking
business of "ndia. :ater on$ in the year .AA<$ the government merged 7ew 'ank of "ndia with
8un#ab 7ational 'ank. "t was the only merger between nationalized banks and resulted in the
reduction of the number of nationalized banks from 01 to .A. /fter this$ until the .AA1s$ the
nationalized banks grew at a pace of around 5F$ closer to the average growth rate of the
"ndian economy.
The nationalized banks were credited by some$ including Home minister 8. 3hidambaram$ to
have helped the "ndian economy withstand the global financial crisis of 011E(011A.
Li#erali;ati!n:
"n the early .AA1s$ the then 7arsimha &ao government embarked on a policy of
liberalization$ licensing a small number of private banks. These came to be known as 7ew
6eneration tech(savvy banks$ and included 6lobal Trust 'ank ,the first of such new
generation banks to be set up-$ which later amalgamated with @riental 'ank of 3ommerce$
NT" 'ank,now re(named as /!is 'ank-$ "3"3" 'ank and H;)3 'ank. This move$ along
with the rapid growth in the economy of "ndia$ revitalized the banking sector in "ndia$ which
has seen rapid growth with strong contribution from all the three sectors of banks$ namely$
government banks$ private banks and foreign banks.
The ne!t stage for the "ndian banking has been setup with the proposed rela!ation in the
norms for )oreign ;irect "nvestment$ where all )oreign "nvestors in banks may be given
voting rights which could e!ceed the present cap of .1F$at present it has gone up to 5AF
with some restrictions.
The new policy shook the 'anking sector in "ndia completely. 'ankers$ till this time$ were
used to the 5(C(5 method ,'orrow at 5F+:end at CF+6o home at 5- of functioning. The new
wave ushered in a modern outlook and tech(savvy methods of working for traditional banks.
/ll this led to the retail boom in "ndia. 8eople not #ust demanded more from their banks but
also received more.
3urrently$ banking in "ndia is generally fairly mature in terms of supply$ product range and
reach(even though reach in rural "ndia still remains a challenge for the private sector and
0.
foreign banks. "n terms of quality of assets and capital adequacy$ "ndian banks are considered
to have clean$ strong and transparent balance sheets relative to other banks in comparable
economies in its region. The &eserve 'ank of "ndia is an autonomous body$ with minimal
pressure from the government. The stated policy of the 'ank on the "ndian &upee is to
manage volatility but without any fi!ed e!change rate(and this has mostly been true.
9ith the growth in the "ndian economy e!pected to be strong for quite some time(especially
in its services sector(the demand for banking services$ especially retail banking$ mortgages
and investment services are e!pected to be strong. @ne may also e!pect 4Q/s$ takeovers$
and asset sales.
1.3.2 INDIAN BANKING 484TE7
Intr!d$+ti!n
The &eserve 'ank of "ndia ,&'"- is "ndiaBs central bank. "t is the sole authority for issuing
bank notes and the supervisory body for banking operations in "ndia. "t supervises and
administers e!change control and banking regulations$ and administers the governmentBs
monetary policy. "t is also responsible for granting licenses for new bank branches. Though
the banking industry is currently dominated by public sector banks$ numerous private and
foreign banks e!ist. "ndiaBs government(owned banks dominate the market. Their
performance has been mi!ed$ with a few being consistently profitable. Several public sector
banks are being restructured$ and in some the government either already has or will reduce its
ownership.
2riate and "!reign #anks
The &'" has granted operating approval to a few privately owned domestic banks+ of these
many commenced banking business. )oreign banks operate more than .21 branches in "ndia.
The entry of foreign banks is based on reciprocity$ economic and political bilateral relations.
/n inter(departmental committee approves applications for entry and e!pansion.
(a'ital ade<$a+- n!r,
)oreign banks were required to achieve an ? percent capital adequacy norm by 4arch .AA<$
while "ndian banks with overseas branches had until 4arch .AA2 to meet that target. /ll other
banks had to do so by 4arch .AAC. The banking sector is to be used as a model for opening
00
up of "ndiaBs insurance sector to private domestic and foreign participants$ while keeping the
national insurance companies in operation.
The banking system has three tiers. These are the scheduled commercial banks+ the regional
rural banks which operate in rural areas not covered by the scheduled banks+ and the
cooperative and special purpose rural banks.
4+hed$led and n!n s+hed$led #anks
There are appro!imately ?1 scheduled commercial banks$ "ndian and foreign+ almost 011
regional rural banks+ more than <21 central cooperative banks$ 01 land development banks+
and a number of primary agricultural credit societies. "n terms of business$ the public sector
banks$ namely the State 'ank of "ndia and the nationalized banks$ dominate the banking
sector.
L!+al "inan+ing
/ll sources of local financing are available to foreign(participation companies incorporated in
"ndia$ regardless of the e!tent of foreign participation. Nnder foreign e!change regulations$
foreigners and non(residents$ including foreign companies$ require the permission of the
&eserve 'ank of "ndia to borrow from a person or company resident in "ndia
Reg$lati!ns !n "!reign #anks
)oreign banks in "ndia are sub#ect to the same regulations as scheduled banks. They are
permitted to accept deposits and provide credit in accordance with the banking laws and &'"
regulations. 3urrently about 02 foreign banks are licensed to operate in "ndia. )oreign bank
branches in "ndia finance trade through their global networks.
RBI restri+ti!ns
The &eserve 'ank of "ndia lays down restrictions on bank lending and other activities with
large companies. These restrictions$ popularly known as Gconsortium guidelinesG seem to
have outlived their usefulness$ because they hinder the availability of credit to the non(food
sector and at the same time do not foster competition between banks.
0<
Indian s. "!reign #anks
4ost "ndian banks are well behind foreign banks in the areas of customer funds transfer and
clearing systems. They are hugely over(staffed and are unlikely to be able to compete with
the new private banks that are now entering the market. 9hile these new banks and foreign
banks still face restrictions in their activities$ they are well(capitalized$ use modern equipment
and attract high(caliber employees.
G!ern,ent and RBI reg$lati!ns
/ll commercial banks face stiff restrictions on the use of both their assets and liabilities )orty
percent of loans must be directed to Gpriority sectorsG and the high liquidity ratio and cash
reserve requirements severely limit the availability of deposits for lending. The &'" requires
that domestic "ndian banks make 51 percent of their loans at confessional rates to priority
sectorsB selected by the government. These sectors consist largely of agriculture$ e!porters$
and small businesses. Since Luly .AA<$ foreign banks have been required to make <0 percent
of their loans to these priority sector. 9ithin the target of <0 percent$ two sub( targets for
loans to the small scale sector ,minimum of .1 percent- and e!ports ,minimum of .0 percent-
have been fi!ed. )oreign banks$ however$ are not required to open branches in rural areas$ or
to make loans to the agricultural sector.
The $rge t! ,erge:
"n the recent past there has been a lot of talk about "ndian 'anks lacking in scale and size.
The State 'ank of "ndia is the only bank from "ndia to make it to the list of Top .11 banks$
globally. 4ost of the 8S's are either looking to pick up a smaller bank or waiting to be
picked up by a larger bank. The central government also seems to be game about the issue
and is seen to be encouraging 8S's to merge or acquire other banks. 6lobal evidence seems
to suggest that even though there is great enthusiasm when companies merge or get acquired$
ma#ority of the mergers*acquisitions do not really work. So in the zeal to merge with or
acquire another bank the 8S's should not let their common sense take a back seat. 'efore a
merger is carried out cultural issues should be looked into. / bank based primarily out of
7orth "ndia might want to acquire a bank based primarily out of South "ndia to increase its
geographical presence but their cultures might be very different. So the integration process
might become very difficult. Technological compatibility is another issue that needs to be
looked into in details before any merger or acquisition is carried out.
05
1.% (&72AN8 2R&9ILE
@ne of the earliest banks in South "ndia$ JSouth "ndian 'ankG came into being since .A0A$
during the Swadeshi movement. The establishment of the bank was the fulfillment of the
dreams of a group of enterprising men who #oined together at Thrissur. The ob#ective behind
establishment of the 'ank was to provide for the people a safe$ efficient and service oriented
repository of savings of the community on one hand and to free the business community from
the clutches of greedy moneylenders on the other by providing need based credit at
reasonable rates of interest.
Translating the vision of the founding fathers as its corporate mission$ the bank has during its
long so#ourn been able to pro#ect itself as a vibrant$ fast growing$ service oriented and trend
setting financial intermediary.
The ma#or product and services offered by the South "ndian 'ank are classified into three
ma#or heads:
8ersonal banking
7&" banking
'usiness banking
Nnder these heads bank provide various schemes for deposits$ loans and value( added
services to its customers.
1.%.1 =isi!n
To build a strong brand image to make the South "ndian 'ank technology driven$ customer
oriented and the most preferred bank$ where passion for e!cellence is a way of life$
innovation is a tradition$ commitment to values is unshaken and customer loyalty is abiding$
enabling the 'ank to achieve an impressive all round$ ,but better than the peer group-
business growth$ build a healthy$ qualitative and strong asset base and earn commensurate
profits
1.%.2 7issi!n
To become the most preferred and fastest growing among the >erala based banks$ with a
strong brand image as customer focused$ technology driven and an innovative bank with core
competence in fostering relationship banking$ garnering core deposits with accent on cost$
02
creating and maintaining high yielding quality assets through focused marketing$ qualitative
appraisal and effective monitoring$ ensuring a high level of internal efficiency through
impeccable housekeeping and enhancing shareholder value by achieving the highest net
profits amongst the peer group banks of >erala.
The 'anks shares are listed on
The 3ochin Stock H!change :td ,3SH-
The Stock H!change 4umbai ,'SH-
The 7ational Stock H!change of "ndia :td 4umbai ,7SH-
1.%.3 &#>e+ties !" 4IB
.- To establish and carry on the business of banking at registered office of the company
and at such branches.
0- 3arrying on the business of accepting deposits of money on current account and to
carry on the business of banking.
<- 3ontracting for public and private loans and negotiating and issuing it.
5- /ct as an agent of the government or local authorities or any other persons. 3arrying
on agency business of any discipline other than the business of managing it.
2- The borrowing$ raising or taking up money$ the lending or advancing of money either
upon or without security$ the drawing$ making$ accepting $ discounting $ buying $
selling $ collecting and dealing bill of e!change $ promissory notes $ coupons and
other instruments and securities$ dealing in instruments like share $bond etc.
C- To undertake and carry on all other forms of business as may be permissible for
banking company.
8resently$ South "ndian 'ank has 252 branches$ A e!tension counters and 0A2 /T4.
1.%.% 7ilest!nes
The )"&ST among the private sector banks in >erala to become a scheduled bank in
.A5C under the &'" /ct.
The )"&ST bank in the private sector in "ndia to open a 3urrency 3hest on behalf of
the &'" in /pril .AA0.
The )"&ST private sector bank to open a 7&" branch in 7ovember .AA0.
0C
The )"&ST bank in the private sector to start an "ndustrial )inance 'ranch in 4arch
.AA<.
The )"&ST among the private sector banks in >erala to open an G@verseas 'ranchG to
cater e!clusively to the e!port and import business in Lune .AA<.
The )"&ST bank in >erala to develop in(house$ fully integrated branch automation
software in addition to the in(house partial automation solution operational since
.AA0.
The bank has setup the S"' students economic forum designed to enkindle interest in
economic affairs in the minds of our young generation. The forum highlights one
theme every month to be discussed in their monthly meeting. These theme papers
have been receiving by economists$ bankers $ teachers and students.
The )"&ST >erala based private scheduled commercial bank to implement 3ore
'anking System.
The TH"&; largest branch network among 8rivate Sector banks$ in "ndia$ with all its
branches under 3ore banking System.
South "ndian 'ank has won a special award for e!cellence in 'anking Technology from
";&'T ,"nstitute for ;evelopment and &esearch in 'anking Technology- D the technical arm
of the &eserve 'ank of "ndia. This award was presented to the 'ank as a national level
recognition to the e!cellent contribution made in the area of "nformation Systems Security
8olicies and 8rocedures. 3ompeting against top level banks in "ndia across all categories such
as 8ublic Sector 'anks$ 8rivate Sector 'anks$ )oreign 'anks and 3o(operative 'anks$ the
recognition from ";&'T is really a feather in the cap for S"'.
1.%.) 9e* seri+es !""ered #- the #ank
4aings A++!$nts:
The different type of Savings /ccounts of the South "ndian 'ank to suit the customers e!act
need are:
&egular Savings( 9ith normal cheque book facility
8rivilege Savings( 9ith complete anywhere banking facility
6roup Salary Savings /ccount( for every employee to meet the e!pectations
Lunior Savings( )or the students above age .0
S/&/: Savings( 7o )rills /ccount D low minimum balance
Iouth 8lus Savings( /n e!clusive S' /ccount for Iouth
0E
4/H":/ Savings( /n attractive Savings 'ank account e!clusively for women
7&H &upee /ccount( 7on &esident H!ternal &upee /ccount ,Savings* ;eposits-
7&@ &upee /ccount( 7on &esident @rdinary &upee /ccount ,Savings* ;eposits-
)oreign 3urrency ;eposits( "n NS;$ 6'8 and Huro( ,)37& * &)3 -
Ter, De'!sits:
>alpakanidhi( "nterest is compounded quarterly
S"' )le!i ;eposit( /utomatic part closure to cover Savings /ccount deficit
S"' Ta! 6ain 011C( Hligible for ta! e!emption under Sec ?1 3
)ast 3ash ;eposit( Short term deposits with part closure option
)i!ed ;eposits( "nterest is paid out quarterly*monthly
&ecurring ;eposit( )i!ed 4onthly installment deposit scheme
L!ans:
Since loans are an integral part of personal finance S"' provides the following kind of
special packages as given:
8ersonal :oan( Hasy general purpose loans
Oehicle :oans( for private$ commercial or agricultural purposes
Home :oans( for residents$ 7&"s and Senior 3itizens
6old :oans( Hasy :oans against 6old
Hducational :oans( for higher studies
/griculture :oans( for various agricultural needs
)le!i :oans( :oan against property
@ther :oans( )or certain specific purposes
8ravasi Swagat( )or 7&"s returning for ever to "ndia.
0?
=al$e added seri+es:
The various value added services provided by S"' is as follows:
/ny 'ranch 'anking
6lobal /T4 cum ;ebit 3ard
"nternet 'anking
4obile 'anking
3redit 3ard
S"' 3ollect
;emat Services
7&" 'ranches
7&" 3ell
7&" )/Ps
0A
1.) &B?E(TI=E &9 T5E 4T6D8
M To understand the customers perception on the service delivery of the bank.
M To assess the management perception related to customers e!pectations on the banks
service( quality specifications and delivery.
M To e!amine the gaps between customers and bank managements perceptions and
give remedies so as to minimize them and increase the customer base of the bank.
<1
2.1 (!n+e't !" Retail Banking
The retail banking encompasses deposit and assets linked products as well as other financial
services offered to individual for personal consumption. 6enerally$ the pure retail banking is
conceived to be the provision of mass banking products and services to private individuals as
opposed to wholesale banking which focuses on corporate clients. @ver the years$ the concept
of retail banking has been e!panded to include in many cases the services provided to small
and medium sized businesses. Some banks in Hurope even include their private banking
business i.e. services to high net worth net worth individuals in their retail banking portfolio.
The concept of &etail banking is not new to banks. "t is only from past few years that it is
being viewed as an attractive market segment$ which offers opportunities for growth with
profits. The diversified portfolio characteristic of retail banking gives better comfort and
spreads the essence of retail banking in individual customers. Though the term retail banking
and retail lending are often used synonymously$ yet the later is lust one side of retail banking.
"n retail banking$ all the banking needs of individual customers are taken care of in an
integrated manner.
2.2 Reie* !" Literat$re
/nil ;utta and >irti ;utta in their paper reveal the e!pectations and perceptions of the
consumers across the three banking sectors in "ndia. The study revealed that gap varies across
the banking sector with public sector banks showing the widest gap and foreign banks
showing a narrow gap. "t is important for the service providers to know the level of customer
e!pectations so that they can meet and even e!ceed them to gain ma!imum customer
satisfaction
1
.
"n the study of 4ark ;urkin et al.$ customer satisfaction questionnaire was issued to over
0$111 retail customers. Twenty(five senior branch bank managers were then asked to rank the
same set of issues to ascertain what they felt to be the key influencers to customer registration
for internet banking. The three factors that the managers failed to identify$ fell into two broad
categories: relationship management status and comfort with new technology
2
.
)inancial institutions are actively developing new electronic banking products for their retail
customers. To date$ the market leaders have drawn a disproportionably higher share of e(
retail banking customers. "n response$ smaller institutions have become quite active in
e!ploring ways to participate profitably in online banking. / ma#or influence is from a
<.
customer relationship management ,3&4- perspective$ where institutions try to limit the
outflow of current customers and direct high(value customers to potential products from a
multi(product service offering array. These efforts can succeed only if retail bank marketers
focus the promotion of the new products and services that can utilise this channel toward
those customers who are most likely to find them attractive ,;on Sciglimpagli-. The first aim
of this study was to e!amine the role that online and electronic banking play in defining the
customerBs primary financial relationship. The analysis of E1. retail customers of a financial
institution presented in this study suggests that banks and other institutions are highly
vulnerable to loss of customers to rivals with e!tensive online services. / second aim was to
e!amine to what e!tent information on banking relationships is able to e!tend 3&4 analysis
beyond that offered by typical demographic and income data. 3urrent customer account
relationships are found to be highly predictive of use of electronic services use in general.
/nd$ interest in the use of specific online services is related to differing customer
relationships in addition to ordinary demographic and balance information. These findings
can be useful for retail banking in identifying potential high(value users from a customer
relationship management perspective
3
.
The purpose of the paper by /urto 4olina is to investigate the impact of relational benefits
on customer satisfaction in retail banking. This paper presents a causal model that identifies a
connection between the relational benefits achieved through a stable and long(term
relationship with a given bank and customer satisfaction with retail banking. 'ased on a
theoretical framework regarding the relationship between relational benefits and customer
satisfaction$ an empirical study using a sample of 015 bank customers was conducted$ and the
theoretical model is tested. 4ulti(item indicators from prior studies were employed to
measure the constructs of interest$ and the proposed relationships were tested using structural
equations modeling methods. The results show that confidence benefits have a direct$ positive
effect on the satisfaction of customers with their bank. However$ special treatment benefits
and social benefits did not have any significant effects on satisfaction in a retail banking
environment. The findings suggest that banks can create customer satisfaction through
relational strategies that focus on building customer confidence. Therefore$ frontline
employees should be committed to establishing and maintaining confidence benefits for
customers. Thus the study provides useful information on the relationship between customer
satisfaction and specific relational benefits in retail banking
%
.
The important change drivers in most Huropean retail banking systems are found to be
competition and "T developments. Two broad strategic themes are e!plored. The first is the
evolution of retail banking in a strategic marketing conte!t from a supply focus towards a
<0
much greater demand orientation. The second theme e!plored is the intensifying strategic
imperative towards a shareholder value culture. The key features and strategic challenges of
the RnewB retail banking revolution are finally summarized in the study of 6ardener Hdwar
and Howcroft 'arry
)
.
;ue to increasing competition in retail banking$ understanding the customer perception about
service quality is becoming indispensable. The private sector banks are posing a very stiff
competition to the public sector banks through their initiatives for meeting customer
e!pectations and gaining a cutting edge. This is reflected by the increasing market share and
better profitability of private banks in comparison to that of public sector banks. /t the same
time$ public sector banks have also responded to the challenges posed by the private sector
banks through conscious efforts to enhance their service quality. This study ,&./.&avi-
compares public sector banks and private sector banks in terms of user perception of their
retail banking services
.
.
"n his article in 'usiness :ine T. '. >apali$ e!plains the perceived stability of the income
stream from the retail business is probably the most important driver of the push into retail.
3ross(country studies clearly point ( increasing urbanisation$ rising income levels+ all
indicating that the demand for retail finance will continue to be very strong well into the
future. "3"3" or H;)3 over the past few years does show the stability which has been
imparted to the overall revenue stream by the retail business
/
.
9ith the growth of the "ndian economy over the past few years$ the retail banking sector in
"ndia has also witnessed phenomenal growth. "t has faced up to the need of the hour and
introduced anytime$ anywhere banking$ for its customers through /T4s$ mobile and internet
banking. "t has also offered services like ;(4/T$ plastic money ,credit and debit cards-$
online transfers$ etc. The concept of 3'S ,3ore 'anking Solution-$ which allows a customer
to fulfill a wide range of banking operation online$ has come alive during the past few years.
This has not only helped in reducing operational costs but facilitated greater conveniences to
its customers and so the customer preferences have to be taken care of constantly in the retail
banking business
0
.
"n the age of consumerism$ the customer is king. /nd the banking sector is latching on to this
mantra of sales and marketing. /lthough the sector is part of the service industry$ only
recently have individual banks woken up to the fact that offering products and services
tailored to meet the customersB specific needs can actually bring in more business. 'anks
today do much more than lend and borrow money. The new(age private sector banks can be
said to be the forerunners in offering such customer(oriented service. 'anks are even taking
<<
loans to the customers. 'anks have also become a one(stop shop for selling products such as
mutual funds$ insurance and &'" bonds and offer service such as payment of utility bills and
equity trading. 3ross(selling also helps banks personalise products for their customers. )or
instance$ banks give loans against insurance$ or link deposit schemes to insurance$ depending
on customer needs. The banks are converting to the age of commoditised business i.e.$ 6ive
the consumer a product and a reason to use it
1
.
The rapid and provocative changes facing the retail sector seems to vary somewhat from
country to country$ retail banks everywhere are working vigorously to address new
technological$ regulatory and competitive realities. 3ollectively$ they are trying to determine
strategies and tactics needed to secure their franchises and their futures. The bank of the
future will not win by creating a single strategy. &ather$ each of its activities within products$
customer channels$ and support services will be the sub#ect of a discreet Gbusiness unitG
strategy$ which will be benchmarked against market(segmented customer demand and
profitability$ and competitorsB businesses in this area
13
.
The above studies show that retail banking business will continue to be very strong$ well into
the future. The increasing competition is compelling the service providers to know the level
of customer e!pectations and meet them. The studies also suggest that the bank of the future
will not win by creating a single strategy but focus on building customer confidence and
e!tensive online services.
The present study looks into understanding the customers perception towards the retail
banking and also their awareness regarding the various retail banking services.

<5
7ET5&D&L&G8
M &esearch 4ethod : ;escriptive &esearch
M Sampling Tool : Puestionnaire
M Sampling ;esign : 7on D probability sampling.
M Sampling 4ethod : 3onvenience Sampling
M Sample Size : .21
M Sampling Nniverse: 3ustomers of South "ndian 'ank.
M ;ata 3ollected : 8rimary and Secondary ;ata
M Statistical 8ackage : S8SS
M Statistical Tools Nsed : 8ercentage /nalysis$ 6arrett 4ethod and 3ross Tabulation.
3.1 4a,'ling Design
The study has used 7on( 8robability sampling design.
7on( 8robability sampling involves deliberate selection of a particular unit of the population
for constituting a sample.
3.2 Data (!lle+ti!n 7eth!d
8rimary ;ata: The primary data was collected by means of a survey. Puestionnaire was
prepared and customers of the bank were approached to fill up the questionnaire. The filled
up information was later analyzed to obtain the required information.
Secondary ;ata: "n order to have a proper understanding of the sector of &etail 'anking$ an
in depth study was done from the various books$ magazines$ #ournals and articles written on
the sub#ect. "nformation was also taken from the internet related to industry$ company$
competitors$ etc.
3.3 4tatisti+al T!!l
The study has used various statistical tools for the analysis of data. They are$ percentage
analysis$ 6arette method and 3ross tabulation:
<2
2er+entage Anal-sis: To have a general idea on the opinion given by the respondents a
simple percentage analysis was carried out.
Test Statistics:
8ercentage S 7umber of &esponses T .11
7umber of &espondents
Garette Ranking Te+hni<$e: "t is a technique used to find out how various items under
considerations are ranked by the respondents. "n this technique the rate given by respondents
will be converted into percentile position using:
8 S .11 , & D 1.2-
7
9here$ 7S 7o: of items
&S &ank
8S 8ercentile position
)rom these percentile position scores will be taken from 6arattes table. This score will be
used to evaluate the ranks.
3.% Li,itati!n !" the 4t$d-
The data from the sample may not reflect the universe+ since it is restricted only to the area
Oennikulam$ >erala and only .21 customers. There were also time limitations. /s the topic is
wide$ all matters regarding the study could not be analyzed.
<C
ANAL84I4 AND INTER2RETATI&N
The following information contains the data interpretation of the questionnaire. The
respondents responses for the questions have been interpreted and a finding has been made
based on the respondents responses.
T/':H 5..: De,!gra'hi+ details !" the 4IB res'!ndent@s
3H/&T 5..:
Demographic details of the respondents
21
22
23
24
25
26
27
28
25-35 36-45 46-55 Above 55
Age in yrs.
P
e
r
c
e
n
t
a
g
e
Percent
"nterpretation: )rom the above data$ it is observed that 0E.<<F of the respondents are
belonging to the age category of <C(52yrs. So it is concluded that the ma#ority of the
respondents fall under this category.
T/':H 5.0 : Gender details !" the 4IB res'!ndents
Gender Frequency Percent
Male 108 72
Female 42 28
otal 150 100
3H/&T 5.0 :

/ge
)requenc
y 8ercent
02(<2 <2 0<.<<
<C(52 5. 0E.<<
5C(22 <A 0C
/bove 22 <2 0<.<<
Total .21 .11
<E
Gender Ratio of the respondents
72%
28%
Male
Female
"nterpretation: )rom the data it is observed that E0F of the respondents are males. So$ it is
concluded that the ma#ority of the respondents are males.
T/':H 5.< : Ed$+ati!n details !" the 4IB res'!ndent@s.
!ducat"on Frequency Percent
#c$ool 51 34
%G 60 40
PG 3& 26
otal 150 100
3H/&T 5.< :
Educational details of the respondents
34'
40'
26'
#c$ool %G P(
"nterpretation : )rom the above data$ it is observed that 51F of the respondents are graduated
whereas <5F have school education+ the remaining 0CF being post graduated.
<?
T/':H 5.5 : &++$'ati!n details !" the 4IB res'!ndent@s
)ccu*at"on Frequency Percent
#erv"ce &2 61+33
,u-"ne-- 24 16
Pen-"oner 30 20
.ou-e-/"0e 4 2+67
otal 150 100
3H/&T 5.5 :
Occupation details of the respondents
61' 16'
20'
3'
#erv"ce ,u-"ne-- Pen-"oner .ou-e-/"0e
"nterpretation : )rom the above data$ it is observed that C.F of the respondents are in service
while only <F are house( wives. So it is concluded that the ma#ority of the respondents fall
under the service category.
T/':H 5.2: In+!,e details !" the 4IB res'!ndent@s.
1ncome 2evel Frequency Percent
5000 -15000 51 34
15001-25000 42 28
25001-35000 26 17+33
Above 35000 31 20+67
otal 150 100
3H/&T 5.2:
<A
ncome details of the respondents
34'
28'
17'
21'
5000-15000 15001-25000 25001-35000 Above 35000
"nterpretation: )rom the above data$ it is observed that <5F of the respondents are belonging
to the income category of &s.2111( .2111p.m. So it is concluded that the ma#ority of the
respondents fall under that income level.
T/':H 5.C : N$,#er !" -ears the res'!ndent@s hae #een ass!+iated *ith 4IB.
3o+ o0 4ear- Frequency Percenta(e
2e-- t$an 1yr & 6
1-4 yr 32 21+33
4-7 yr 30 20
7-10 yr 1& 12+67
10-13 yr 41 27+33
13-16 yr 15 10
16-1& yr 4 2+67
otal 150 100
"nterpretation: The above data shows that ma!imum number,0E.<F- of the respondents are
associated with the bank from last .1(.< years.
T/':H 5.E: A++!$nts the res'!ndents hae *ith the #ank.
A5c ty*e Percent
#av"n(- A5c 100
6urrent A5c 12+7
Ava"led 2oan &+3
3
rd
Party Product 22+7
3H/&T 5.C:
51
0
20
40
60
80
100
Percentage
Percent
Accounts
Accounts the Respondents ha!e "ith the #an$
#av"n(- A5c 6urrent A5c Ava"led 2oan 3rd Party Pdt
"nterpretation: The above data makes it very clear that only very few customers have availed
loan from the bank and invested in the third party products.
T/':H 5.?: Rating the +!$rtes- leel sh!*n #- the 4IB sta"".
7at"n( Frequency Percent
Good 44 2&+33
8ery Good 72 48
!9cellent 34 22+67
otal 150 100
3H/&T 5.E :
Rating the %ourtesy &e!el sho"n #y the '( 'taff
0
10
20
30
40
50
60
Good 8ery Good !9cellent
Rating
P
e
r
c
e
n
t
a
g
e
Percent
"nterpretation: The above data shows that EEF of the respondents have rated the courtesy
level they receive from the banks personnel to be good and thus it is interpreted that this
service of the bank is satisfactory.
T/':H 5.A: Rating the W!rking 5!$rs !" the #ank.
5.
7at"n(- Frequency Percent
Avera(e 17 11+33
Good 60 40
8ery Good 55 36+67
!9cellent 18 12
otal 150 100
3H/&T 5.? :
0
5
10
15
20
25
30
35
40
Percentage
Avera(e Good 8ery Good !9cellent
Ratings
Rating the )or$ing *ours of the #an$
Percent
"nterpretation: )rom the above data it can be interpreted that C1F of the respondents are
satisfied with the working hours of the bank. This also coincides with the management
perspective which does not create any gap in the analysis.
T/':H 5..1: Rating the Kn!*ledge !" Bank 4ta"" in ans*ering the <$eries.
7at"n(- Frequency Percent
Avera(e 11 7+33
Good 76 50+67
8ery Good 46 30+67
!9cellent 17 11+33
otal 150 100
"nterpretation: )rom the above data it can be interpreted that half of the population$ 21.CF are
satisfied with the knowledge level of the bank staff.
50
T/':H 5... : Rating the "astness !" the 'ers!nnel in res'!ndingA attending t! the
+$st!,ers.
7at"n(- Frequency Percent
Avera(e 14 &+33
Good 75 50
8ery Good 36 24
!9cellent 25 16+67
otal 150 100
3H/&T 5.A :
0
10
20
30
40
50
Percentage
Avera(e Good 8ery Good !9cellent
Ratings
Rating the fastness of the personal in
responding+ attending to the customers.
Percent
"nterpretation: The above data shows that 21F of the respondents are rating the fastness of
the personnel in responding* attending to them to be good. So it can be concluded that the
customers are satisfied with this service.
T/':H 5..0 : Rating the BTransa+ti!n Ti,eC taken "!r (ash de'!sit.
7at"n(- Frequency Percent
Avera(e 6 4
Good 75 50
8ery Good 44 2&+33
!9cellent 25 16+67
otal 150 100
"nterpretation: The above data shows that 21F of the respondents have rated the transaction
time for cash deposit to be good. So it is concluded that the customers are satisfied with the
fastness of this service. The pictorial representation is as follows:
3H/&T 5..1:
5<
0
10
20
30
40
50
Percentage
Avera(e Good 8ery Good !9cellent
Ratings
Rating the ,ransaction ,ime ta$en for %ash
deposit
Percent
T/':H 5..<: Rating the easiness t! !'en an a++!$nt *ith the #ank.
"nterpretation: The above data shows that$ <?F of
the respondents have rated the bank to be good for
the easeness they find in opening an account with the bank+ whereas very near to it i.e.$
<0.CEF have rated it to be average. So it is concluded that the customers are satisfied with
this service.
The pictorial representation of the same is as follows:
3H/&T 5...:

7at"n(- Frequency Percent
Avera(e 4& 32+67
Good 57 38
8ery Good 2& 1&+33
!9cellent 15 10
otal 150 100
55
0
10
20
30
40
Percentage
Avera(e Good 8ery Good !9cellent
Ratings
Rating the Easeness to Open an Account "ith the
#an$
Percent
T/':H 5..5: Rating the 'r!d$+tA seri+e inn!ati!n in the 'ast t*! -ears.
"nterpretation: The above data shows that more than half the respondents$ C<.<F$ have rated
the bank good$ on the product or service innovation in the past two years. So it can be
interpreted that the customers are satisfied with the product innovations of the bank.
T/':H 5..2: Rating the #ank@s 'r!,'tness in in"!r,ing the de'!sit ratesA +harges.
"nterpretation: The above data shows that the ma#ority$ 2CF of the respondents have rated the
bank to be average for the promptness in informing the customers of the deposit rates* service
charges. The management has rated this service to be very good. So it can be interpreted that
here a gap e!ists between the customers and the managements perspective.

7at"n(- Frequency Percent
Avera(e 23 15+33
Good &5 63+33
8ery Good 24 16
!9cellent 8 5+33
otal 150 100
7at"n(- Frequency Percent
Poor 2 1+33
Avera(e 84 56
Good 36 24
8ery Good 22 14+67
!9cellent 6 4
otal 150 100
52
3H/&T 5..0 :
T/':H 5..C: Rating the #ank@s griean+e redressal s-ste,.
7at"n(- Frequency Percent
Poor 1 0+67
Avera(e 6 4
Good 57 38
8ery Good 77 51+33
!9cellent & 6
otal 150 100
"nterpretation: The above data shows that 2..<F of the respondents have rated the banks
grievance redressal system to be very good. So it can be interpreted that the customers are
satisfied with this service of the bank.
T/':H 5..E: Rating the #ank@s "a+ilit- in ter,s !" the +!,"!rt "a+ilities it !""ers.
7at"n(- Frequency Percent
Avera(e 5 3+33
Good 23 15+33
8ery Good 113 75+33
!9cellent & 6
otal 150 100
"nterpretation: The above data show that ma#ority of the respondents$ E2.<<F$ have rated the
banks comfort facilities to be very good. So it can be concluded that the customers are very
satisfied with this service of the bank.
T/':H 5..?: Rating the l!+ati!n !" the #ank.

0
10
20
30
40
50
60
Percentage
Poor Avera(eGood 8ery
Good
!9cellent
Ratings
Rating the #an$-s Promptness in nforming
the deposit rates+ charges
Percent
5C
7at"n(- Frequency Percent
Avera(e 4 2+67
Good 1& 12+67
8ery Good 10& 72+67
!9cellent 18 12
otal 150 100
"nterpretation: The above data show that ma#ority of the respondents$ E0.CEF$ have rated the
banks location to be very good. So it can be concluded that the customers are very satisfied
with the location of the bank.
T/':H 5..A: Rating the <$alit- !" the #ank@s AT7 seri+es.
7at"n(- Frequency Percent
Poor 2 1+33
Avera(e 63 42
Good 61 40+67
8ery Good 18 12
!9cellent 6 4
otal 150 100
"nterpretation: The above data shows that 50F of the respondents have rated the quality of
the banks /T4 service to be average. 'ut the management in this case has rated the service
to be very good. So it is interpreted that the customers are not much satisfied with the quality
of the /T4 service and also a gap is analysed in between the two perspectives in this case.
T/':H 5.01: Rating the #ank@s "astness in 'r!+essing and dis#$rse,ent !" l!ans.
7at"n( Frequency Percent
Avera(e & 22+5
Good 17 42+5
8ery Good 7 17+5
!9cellent 7 17+5
otal 40 100
3H/&T 5..<:
5E
0
10
20
30
40
50
Percentage
Avera(e Good 8ery Good !9cellent
Rating
Rating the #an$.s /astness in Processing and
Dis#ursing &oans
Percent
"nterpretation: The above data shows that the fastness of the bank in processing and
disbursement of loans is rated good by 50.2F of the respondents$ out of the 51$ who has
availed loan from any banks. So it is interpreted that the customers are satisfied with this
service of the bank.
T/':H 5.0.: Rating the interest rates +$rrentl- #eing !""ered #- the #ank.
7at"n(- Frequency Percent
Avera(e 6& 46
Good 62 41+33
8ery Good 16 10+67
!9cellent 3 2
otal 150 100
"nterpretation: The above data shows that 5CF of the respondents have rated the interest rate
currently being offered by the bank to be average which is very near to the 50F who has
rated it to be good. The management has rated this as good. So it can be interpreted that the
interest rate offered by the bank is not much satisfactory to the customers and also slight gap
analysed.
3H/&T 5..5:
5?
0
10
20
30
40
50
Percentages
Avera(e Good 8ery Good !9cellent
Ratings
Rating the nterest Rates currently #eing offered
#y the #an$
Percent
T/':H 5.00:Rating the internetA ,!#ile #anking "a+ilit- !""ered #- the #ank.
7at"n(- Frequency Percent
Avera(e 24 38+0&
Good 20 31+75
8ery Good 10 15+87
!9cellent & 14+2&
otal 63 100
3H/&T 5..2:
0
10
20
30
40
Percentage
Avera(e Good 8ery Good !9cellent
Ratings
Rating the nternet+ 0o#ile (an$ing /acility
offered #y the #an$
Percent
"nterpretation: The above data shows that the quality of the internet* mobile banking facility
is rated average by <?..F of the respondents$ out of the C<$ who uses this facility of the bank.
The management has rated the same as very good. So it is interpreted that the customers are
5A
not much satisfied with this service of the bank and also a gap is analyzed between the
customer and management perspective.
T/':H 5.0<: 7ean s+!re sh!*ing the a*areness !" the res'!ndents t!*ards "e*
seri+es !" the Retail BankingD in general.
#erv"ce- Mean #core
A,0 'er!ices
:"t$dra/"n( 4+63
;e*o-"t 3+47
6$eque ,oo< 2+65
!nqu"ry #tatement 2+47
otal 13+22
nternet (an$ing
Fund tran-0er 2+18
#tatu- o0 6$eque 2+0&
,"ll Payment 1+&7
1ntere-t ;eta"l- 2+02
Alert- 2+13
otal 10+3&
0o#ile (an$ing
,alance 2+57
#tatu- o0 6$eque 2+14
2ocate AM 1+&6
Alert- 2+37
"me *re0erence 2+26
otal 11+3
"nterpretation: The data above shows that the respondents are more aware of the /T4
services whose mean score is .<.00 than compared to the internet and the mobile banking
services.
T/':H 5.05:A*areness !" the res'!ndents !n the AT7 seri+es 'r!ided #- 4IB.
#erv"ce- Frequency Percenta(e
:"t$dra/al o0 6a-$ 147 &8
;e*o-"t 6a-$5
6$eque- 110 73+3
,alance 8er"0"cat"on 147 &8
7equ"rement 0or
6$eque ,oo< 6& 46
3H/&T 5..C:
21
0
20
40
60
80
100
Percentage
:"t$dra/al
o0 6a-$
,alance
8er"0"cat"on
'er!ices
A"areness of the respondents on the A,0
ser!ices pro!ided #y '(
"nterpretation: The above data shows that A?F of the respondents are aware of cash
withdrawal and balance verification through /T4 service of the bank whereas E<F and only
5CF are aware about depositing cash* cheque and requirement for cheque book* statement
respectively.
T/':H 5.02:A*areness !" the res'!ndents !n the internet #anking seri+es 'r!ided #-
4IB.
#erv"ce- Frequency Percenta(e
ran-0er 0und- 50 33+3
,"ll5 2oan Payment 38 25+3
;;5 erm ;e*o-"t
7eque-t 34 22+7
Gett"n( 7em"nder- 44 2&+3
3one && 66
"nterpretation: The above data shows that <<.<F of the respondents are aware of transferring
funds through internet banking services whereas only 0A.<F and 02.<F are aware about
getting reminders and payment of bill* loan respectively. "t is also shown that CCF of the
respondents are not aware of any services provided by the internet banking of S"'.
T/':H 5.0C:A*areness !" the res'!ndents !n the ,!#ile #anking seri+es 'r!ided #-
4IB.
#erv"ce- Frequency Percent
A5c ,alance 64 42+7
6$eque ;eta"l- 35 23+3
7em"nder-5 alert- 63 42
3one 85 56+7
2.
"nterpretation: The above data shows that 50.EF of the respondents are aware of checking
account balance through mobile banking services whereas 50F and only 0<.<F are aware
about receiving reminders and knowing the cheque details respectively through this service.
"t is also shown that 2C.EF of the respondents are not aware of any services provided by the
mobile banking of S"'.
T/':H 5.0E: Ranking !"D the attri#$tes +!nsideredD t! +h!!se a #ank #e"!re g!ing "!r a
#ank l!an
GARATTE METH! : )ormula:: 8 S .11 ,& D 1.2-
7
,otal
Percent 10 30 50 70 &0
#core =9> 75 60 50 40 24
1ntere-t 7ate =Freq? 0> &8 42 & 1 0
09 7350 2520 450 40 0 10360
#ecur"ty ;emanded =0> 18 38 5& 32 3
09 1350 2280 2&50 1280 72 7&32
!00"c"ent 6u-tomer
#erv"ce=0> 30 41 35 22 22
09 2250 2460 1750 880 528 7868
7e*ayment Per"od =0> 0 22 3& 77 12
09 0 1320 1&50 3080 288 6638
!l"("b"l"ty =0> 4 7 8 18 113
09 300 420 400 720 2712 4552
"nterpretation: The ranks analysed$ using garatte ranking method$ shows that the respondents
give their first preference to the interest rate offered by a bank when they go for availing a
loan+ followed by the other attributes as shown in the table above.
T/':H 5.0?:The ari!$s #anks 're"erred "!r aailing the l!an.
3ame o0 ,an<- Frequency Percenta(e
Federal ,an< 6 14+2&
16161 4 &+52
#,1 3 7+14
#, 5 11+&0
#1, 1& 45+24
"ruvalla !a-t 6o-o*t
,an< 3 7+14
.;F6 2 4+76
otal 42 100
3H/&T 5..E:
20
,he !arious #an$s preferred for a!ailing the loan
0 10 20 30 40 50
Federal ,an<
16161
#,1
#,
#1,
"ruvalla !a-t 6o-o*t ,an<
.;F6
P
e
r
c
e
n
t
a
g
e
(an$s
Percent
"nterpretation: The above data shows that out of the 50 respondents who has availed loan
52.0F has availed it from S"'$ followed by .5.<F from )ederal 'ank$ ...AF from S'T and
the rest from other few banks as shown in the bank.
T/':H 5.0A: Reas!ns *hi+h in"l$en+ed the +$st!,ers +h!!se a #ank "!r the l!an.
7ea-on- Frequency Percent
Good cu-tomer -erv"ce & 21+43
2o/ "ntere-t rate 10 23+81
@u"c< *roce--"n( 7 16+67
6u-tomer #at"-0act"on 2 4+76
#"m*le Formal"t"e- 5 11+&0
3ear to $ome5bu-"ne--5/or<
*lace 6 14+28
Prom*tne-- and <no/led(e o0
#ta00 3 7+14
otal 42 100
3H/&T 5..?:
2<
Reasons "hich influenced the customers to
choose a #an$ for the &oan
0
5
10
15
20
25
Percent
Reasons
P
e
r
c
e
n
t
a
g
e
Good customer ser!ice &o" interest rate
1uic$ processing %ustomer 'atisfaction
'imple /ormalities 2ear to home+#usiness+"or$ place
Promptness and $no"ledge of 'taff
A
"nterpretation: The above data shows that the attribute which the respondents give the first
preference for to choose a bank for availing a loan is lowest interest rate$ followed by good
customer service$ quick processing and so on.
T/':H 5.<1: 2re"eren+es !" the res'!ndents Eranks 'r!idedF t!*ards the ari!$s l!ans
"r!, 4IB.
6/&HTTH &/7>"76 4HTH@;:
,otal
Percent 8+34 25+01 41+68 58+35 75+02 &1+6&
#core =9> 77 63 54 46 37 23
Gold 2oan =0> 10 6 8 2 0 4
09 770 378 432 &2 0 &2 1764
Per-onal 2oan =0> 11 12 2 2 2 1
09 847 756 108 &2 74 23 1&00
8e$"cle 2oan =0> 2 6 11 5 5 1
09 154 378 5&4 230 185 23 1564
!ducat"onal 2oan =0> 1 4 5 12 5 3
09 77 252 270 552 185 6& 1405
.ou-e 2oan =0> 2 0 4 4 7 13
09 154 0 216 184 25& 2&& 1112
A(r"cultural 2oan =0> 4 2 0 5 11 8
09 308 126 0 230 407 184 1255
"nterpretation: : The ranks analyzed$ using garatte ranking method$ shows that the
respondents give their first preference to the personal loan offered by the bank$ followed by
the gold loan and so on as shown in the table above.
25
T/':H 5.<.: The !ther #anks *here the res'!ndents hae a++!$nt *ith
,an<- Frequency
#, &1
Federal ,an< 45
16161 37
#,1 31
A9"- ,an< 23
)t$er- 85
"nterpretation: The above data shows that the ma#or competitor for the bank is State 'ank of
Travancore$ followed by )ederal 'ank$ "3"3" and others as shown in the table.
T/':H 5.<0: Rating gien t! 4IB@s +$st!,er seri+e *hen +!,'ared t! the !ther
#ank@s the res'!ndents hae a++!$nt *ith.
7at"n(- Percent
Avera(e 15+28
Good 40+28
8ery Good 25
!9cellent 1&+44
3H/&T 5..A:
0
10
20
30
40
50
Percentage
Avera(e Good 8ery Good !9cellent
Ratings
Rating gi!en to'(.s %ustomer 'er!ice "hen
compared to the other #an$.s.
Percent
"nterpretation: The data above shows that 51.0?F of the respondents have rated this attribute
to be good. So it is interpreted that the customer service of S"' is in par with other banks$ the
respondents have account with.
T/':H 5.<<: Rating gien t! 4IB@s transa+ti!n s'eed *hen +!,'ared t! the !ther
#anksD the res'!ndents hae a++!$nt *ith.
22
7at"n(- Percenta(e
Avera(e &+03
Good 57+64
8ery Good 27+78
!9cellent 5+56
"nterpretation: The data above shows that 2E.C5F of the respondents have rated this attribute
to be good. So it is interpreted that the transaction time of S"' is in par with other banks$ the
respondents have account with.
T/':H 5.<5: Rating gien t! 4IB@s transa+ti!n +!st *hen +!,'ared t! the !ther #anksD
the res'!ndents hae a++!$nt *ith.
7at"n(- Percenta(e
Poor 0+6&
Avera(e 32+64
Good 58+33
8ery Good 7+64
!9cellent 0+6&
"nterpretation: The data above shows that 2?.<<F of the respondents have rated this attribute
to be good. So it is interpreted that the transaction cost of S"' is in par with other banks$ the
respondents have account with.
T/':H 5.<2: Rating gien t! 4IB@s te+hn!l!g- G inn!ati!n *hen +!,'ared t! the
!ther #anksD the res'!ndents hae a++!$nt *ith.
7at"n(- Percenta(e
Avera(e 26+3&
Good 54+86
8ery Good 15+&7
!9cellent 2+78
"nterpretation: The data above shows that 25.?CF of the respondents have rated this attribute
to be good. So it is interpreted that the technology Q innovation of S"' is in par with other
banks$ the respondents have account with.
(R&44 TAB6LATI&N
2C
T/':H 5.<C: Relati!nshi' #et*een a*areness !" the internet seri+es and the n!: !"
NRI +$st!,ers .
1nternet #erv"ce-
A/arene--=3oB o0
7e-*ondent-> 371C-
ran-0er 0und- 50 2&
,"ll5 2oan Payment 38 20
;;5 erm ;e*o
7eque-t 34 21
Gett"n( 7em"nder- 44 2&
3one && 2
"nterpretation: The above data reveals that more than half of the respondents$ aware of the
internet banking services$ are 7&"s. So$ it can be interpreted that 7&"s can be attracted more
by providing more innovative and technological user( friendly products.
T/':H 5.<E : Relati!nshi' #et*een the in+!,e leel !" the res'!ndents and the n!: !"
third 'art- inest!rs.
1ncome 2evel
3rd Party
1nve-tor-
5000-15000 3
15001-25000 &
25001-35000 7
D 35000 15
otal 34
"nterpretation: The above data shows that the ma#ority of the customers who have invested in
third party products are with income level of more than &s.<2111 per month. So it can be
interpreted that high income level customers$ especially 7&"s can be attracted more to
increase such investments.
T/':H 5.<? : Relati!nshi' #et*een the n!: !" -ear the res'!ndents are ass!+iated *ith
the #ank and the 'riilege re+eied.
7o: of Iears 8rivilege Total
Ies 7o
.2 years . E ?
.< years . 5 2
.1 Iears 2 .C 0.
@thers 5 .0
<
.0E
Total .. .2
1
"nterpretation: The data above clearly reveals that the bank has not given due care to provide
any privilege* benefit for its regular* long( term customers.
2E
).1 9INDING4
0E.<F of the respondents fall under the age category of <C( 52 years.
E0F of the respondents are males.
51F of the respondents are graduates ,N6-.
C.F of the respondents are with service as their occupation$ followed by 01F of
pensioners.
<5F of the respondents have &s. 2111( .2111 as their income level per month.
0E.<<F of the respondents are associated with the bank from the past .1( .< years.
@nly 00.EF of the respondents have invested in third party products$ whereas only
A.<F have availed loan from the bank.
5?F of the respondents have rated the bank good with regard to the courtesy level of
the banks personnel* staff.
51F of the respondents have rated the bank good with regard to the working hours of
the bank.
21.CEF of the respondents have rated the bank good with regard to the bank staffs
knowledge in answering* solving the customers queries.
21F of the respondents have rated the bank good with regard to the fastness$ the
personnel show in responding* attending to the customer.
21F of the respondents have rated the bank good with regard to the transaction time
taken for cash deposit.
<?F of the respondents have rated the bank good with regard to the easiness the
customers found to open an account with the bank.
C<.<F of the respondents have rated the bank good with regard to the product* service
innovation in the past two years.
2CF of the respondents have rated the bank$ average$ with regard to the promptness in
keeping the customers informed of deposit rates* service charges + whereas the
management rates it to be very good which reveals a gap e!isting in this service
between the two perspectives.
2..<F of the respondents have rated the bank very good with regard to the grievance
redressal system.
E2.<F of the respondents have rated the bank very good with regard to the comfort
facilities it offers.
2?
E0.CEF of the respondents have rated the bank very good with regard to the location
of the bank.
50F of the respondents have rated the bank average with regard to the quality of the
/T4 services provided by the bank+ whereas management rates it to be very good
which again reveals a gap e!isting in between the two perspectives.
50F out of the few who have availed loan from any of the bank have rated the banks
fastness in processing and disbursing loans to be good.
5CF of the respondents have rated the bank average with regard to the interest rate
currently being offered. The management has rated this as good which shows a slight
gap e!isting and also that the interest rate offered by the bank is not much satisfactory
to the customers.
<?..F out of the C< respondents who use the internet and mobile facilities have rated
banks this facility to be average. The management has rated this as very good which
shows a slight gap e!isting and also the dissatisfaction of the customers regarding this
service.
@nly 5CF of the respondents are aware of the facility such as requirement for cheque
book* statement through the /T4.
@nly <1F and 0<.<F of the respondents use the mobile and internet banking facility
of the bank respectively.
"nterest rate offered by a bank is rated as the first attribute which a customer considers
to choose a bank before going for a bank loan.
The ne!t preferred bank for availing loan after S"' is found to be State 'ank of
Travancore and )ederal 'ank$ the main reasons being lower interest rate and good
customer service.
Since A. respondents out of the .21 has account with S'T+ the main competitor for
the bank turn out to be S'T followed by )ederal 'ank and "3"3".
20.E?F of the respondents rate S"' to be good w.r.t.$ attributes like customer service$
transaction cost$ etc.$ when compared to the other competitor banks they have account
with+ which shows that S"' is in par with those banks.
4a#ority of the respondents have found to have not received any privileges* benefits
for being a regular* long term customer of S"'.
2A
).2 46GGE4TI&N4
5CF of the respondents felt that the interest rates on loan were high and hence the
interest rates may be reduced to attract more customers.
@nly 0?F of the respondents being female$ the bank can look forward to design few
more schemes to attract the female customers.
@nly 00.EF of the respondents having been invested in the third party products the
bank can look for promoting the same. The bank also has a huge scope for this$ with
high income group 7&" customers$ in the area.
Since a large number of the respondents are unaware of the services provided through
internet,CCF-* mobile,2C.EF- banking+ initiatives$ such as posting a list of services
that are rendered to the customers inside the bank premises$ demo of the services in
the bank website+ can be done to make the customers aware$ and use the services
provided through /T4$ internet and mobile banking of the bank.
/s the cross tabulation reveal$ e!cept one out of the few customers who have been
associated with the bank for the past .2(.< years have not been receiving any
privilege. "t is therefore suggested to give privilege to its long term customers so as to
retain them.
C1
).3 (&N(L64I&N
3ustomers always look for more user( friendly products and better interest rates when
compared to other banks they have account with$ so$ through product innovation and
competitive pricing strategy the bank can foster business relationship with its customers.
The gap analyzed can be minimized by better technology$ customer service and also by
creating awareness about the various services+ thereby increasing the customer base. So
as to retain the e!isting customers and to build up customer loyalty$ 3ustomer
&elationship 4anagement should be given more importance.
C.
).% 4(&2E 9&R 96RT5ER RE4EAR(5
There is a wide scope to e!tend this study in the future. )uture researchers may continue the
study by taking number of private or public sector banks$ to bring about the potential of retail
banking industry.
C0
1. H6E4TI&NNAIRE E 9!r ($st!,ersF.
" will be thankful to the respondents$ if you will spare 5(2 minutes from your valuable time to
answer this questionnaire$ which will help$ The South "ndian 'ank to reach upto your
e!pectations in &etail 'anking and also finish my pro#ect towards the partial fulfillment of
4'/ ;egree.
.. /ge:
02(<2 yrs <C(52 yrs 5C(22 yrs /bove 22yrs
0. 6ender: 4ale )emale
<. Hducational Pualification:
School N6 86
5. @ccupation:
Student Service 'usiness
8ensioner House(wife
2. "ncome :evel:
&s. 2111 D &s..2111 &s. .211.( &s 02111
&s. 0211.( &s. <2111 /bove &s. <2111
C. )or how long are you associated with the S"'% , in mth* yrs- UUUUUUUUUUUUU .
E. "n South "ndian 'ank$ you have:
Savings /*c 3urrent /*c Has availed any loan
"nvested in any third party pdt like :"3$ 4utual funds$ etc.
8lease use a tick mark against any one option to give your responses* ratings$ for the
following questions:
E S H!cellent =G S Oery 6ood G S 6ood A S /verage 2 S 8oor
?. How do you rate the "o#t$ Indian %an& :
H O6 6 / 8
,a- 9ith regard to the courtesy level of the banks personnel*
staff.
,b- 9ith regard to the working hours of the bank.
,c- 9ith regard to+ how well informed* knowledgeable you feel
the bank staff is in answering* solving your questions* queries.
,d- 9ith regard to+ how fast the personnel are in responding*
attending to you.
,e- 9ith regards to the JTransaction timeK taken for
3ash deposit.
,f-9ith regards to the JTransaction timeK taken for
3ash withdrawal.
C<
,g- 9ith regards to the JTransaction timeK taken to issue
;;*3heque*statements.
,h- 9ith regard to+ how hassle free it was for you to open an
account with the bank.
,i- 9ith regard to the product or service innovation in the past
two years.
,#- 9ith regard to its promptness in keeping you informed of
deposit rates* service charges.
,k- 9ith regard to the banks grievance redressal system.
,l- 9ith regard to the banks facility in terms of the comfort
facilities it offers.
,m- 9ith regard to the location of the bank.
,n- 9ith regard to the quality of the /T4 services provided by
the bank.
,o-9ith regard to the debit Q credit card services offered by the
bank
,p- 9ith regard to the fastness you feel it is in processing and
disbursing loans.
,q- 9ith regard to the interest rates currently being offered.
,r- 9ith regard to the internet*mobile banking facility offered by
the bank
A. 8lease use a tick mark in the appropriate column to give your responses for the following
statements:
1SStrongly ;isagree$ 2S ;isagree$ 3S 7eutral$ %S /gree$ )S Strongly /gree
S.7o: . 0 < 5 2
AT7 4eri+e
a. " dont face any problem in withdrawing cash from /T4.
b. /T4 services are useful for me to deposit cash Q cheques.
c. /T4 services are useful for me to require my 3heque book.
d. /T4 services are useful for me to get the enquiry statement of my
account.
Internet Banking
e. "t helps me to make an instant fund transfer or schedule a transfer
for the future date.
f. "t helps me know the status of my 3heque.
g. "t helps me in bill payment.
h. "t helps me to get the interest details on deposit accounts.
i. "t helps me get alerts like ;eposit maturing soon$ loan repayment
alert$ minimum balance alert...
7!#ile Banking
#. "t is useful for me to get the balance in any of my accounts
instantaneously.
k. "t is useful for to inquire on the Status of a cheque issued by me.
l. "t helps me to locate the nearest S"' /T4s based on 8"7 3ode
C5
m. "t helps me get alerts like ;eposit maturing soon$ loan repayment
alert$ minimum balance alert...
n. " will be able to set my own time preferences for receiving
messages.
.1. How many facilities out of the following are you aware of being provided through the
/T4 services of S"'%
9ithdrawal of 3ash
;eposit 3ash* 3heques
'alance verification
&equirement for 3heque 'ook* Statement
... How many facilities out of the following are you aware of being provided through the
internet banking of S"'%
To transfer funds from the bank to personalized transaction.
'ill*:oan 8ayment
;;* Term ;eposit &equest
6etting reminders*alerts.
7one of the above.
.0. How many facilities out of the following are you aware of being provided through the
mobile banking of S"'%
/*c balance any time
To know the cheque details
&eceiving reminders* alerts.
7one of the above
.<. 9hat are all the attributes you consider to choose a bank before going for a bank loan%
E&ank them from 1S most preferred to )S least preferredF.
"nterest rates offered
Security demanded
Hfficient 3ustomer Service
&epayment 8eriod
Hligibility for loan ,like your age$ income$etc.-
.5. 9hich were the all the banks in your consideration set when you planned for availing a
loan%
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
.2. 9hich bank did you finally prefer and what influenced you for that%
Bank: UUUUUUUUUUUUUUU
Reas!n: UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
.C. 9hich loan will you prefer the most to take from S"'%, 8ls rank these from .( most
preferred to C( least preferred-
6old :oan Hducational :oan
8ersonal :oan House :oan
Oehicle :oan /gricultural :oan
.E. 9hich are all the other banks you have account in$ other than S"'%
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
C2
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
.?. How do you rate S"' when compared to those banks$ in the following attributes%
E S H!cellent =G S Oery 6ood G S 6ood A S /verage 2 S 8oor
Attri#$tes E =G G A 2
Hfficient 3ustomer Service
Time Saving
Transaction 3ost
Technology Q "nnovation
.A. ;id you receive any privileges* benefits for being a regular*long(term customer of S"'%
"f Ies$ what UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
01. ;id you find any drawbacks in the services of S"'%
Ies 7o
0.. "f Ies$ please give some suggestions to serve you better.
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
00. /re you a 7on &esidential "ndian%
Ies 7o
CC
2. H6E4TI&NNAIRE E9!r 7anage,entF.
Sir*4adam$
" will be very much thankful to you if you will spare your <(5 minutes from your valuable
time to answer this questionnaire+ which will help me to better perform the comparative study
and to analyze the gap between the management and customers.
8lease use a tick mark against any one option to give your response* rating$ for the following
questions:
E S H!cellent =G S Oery 6ood G S 6ood A S /verage 2 S 8oor
.. How do you rate your "o#t$ Indian %an& :
H O6 6 / 8
,a- 9ith regard to the courtesy level of the banks personnel*
staff.
,b- 9ith regard to the working hours of the bank.
,c- 9ith regard to+ how well informed* knowledgeable you feel
the bank staff is in answering* solving the customers questions*
queries.
,d- 9ith regard to+ how fast the personnel are in responding*
attending to the customers.
,e- 9ith regard to the JTransaction timeK taken for
3ash deposit.
,f-9ith regard to the JTransaction timeK taken for
3ash withdrawal.
,g- 9ith regard to the JTransaction timeK taken to issue
;;*3heque*statements.
,h- 9ith regard to+ how hassle free it is for your customers to
open an account with the bank.
,i- 9ith regard to the product or service innovation in the past
two years.
,#- 9ith regard to its promptness in keeping the customers
informed of deposit rates* service charges.
,k- 9ith regard to the banks grievance redressal system.
,l- 9ith regard to the banks facility in terms of the comfort
facilities it offers.
,m- 9ith regard to the location of the bank.
,n- 9ith regard to the quality of the /T4 services provided by
the bank.
,o-9ith regard to the debit Q credit card services offered by the
bank
,p- 9ith regard to the fastness you feel it is in processing and
CE
disbursing loans.
,q- 9ith regard to the interest rates currently being offered.
,r- 9ith regard to the internet*mobile banking facility offered by
the bank.
0. How many percent of your customers do you feel are aware of all the facilities available
through your retail banking services like:
AT7 4eri+es: UUUUUUUUUUUUU
7!#ile 4eri+es: UUUUUUUUUUUU
Internet 4eri+es: UUUUUUUUUUUU
<. How many percent do you feel are aware but are not using these facilities%
2er+ent: IIIIIIIIIIIII
Reas!n: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
5. 9hat are all the privileges* benefits you provide for a regular*long(term customer of S"'%
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
2. 9hich are all the banks according to you turning out to be your tough competitors%
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
C. 9hat are all the measures you are taking to be ahead of your competitors%
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU
C?
BIBLI&GRA258
.. ;utta >irti$ ;utta /nil+ 3NST@4H& HV8H3T/T"@7S /7; 8H&3H8T"@7S
/3&@SS THH "7;"/7 '/7>"76 "7;NST&I /7; THH &HSN:T/7T
)"7/73"/: "48:"3/T"@7S+ Lournal of Services &esearch$ Oolume A$ 7umber .
,/pril(September 011A-$ p<.(5A.
0. ;urkin 4ark$ @B;onnell /odheen 4ullholland 6wyneth$ 3rowe Loseph+ H(
'/7>"76 /;@8T"@7: )&@4 '/7>H& 8H&3H8T"@7 T@ 3NST@4H&
&H/:"TI+ Lournal of Strategic 4arketing$ 4ay011E$ Ool. .2 "ssue 0*<$ p0<E.
<. Sciglimpagli$ ;on$ 3NST@4H& /33@N7T &H:/T"@7SH"8S /7; H(&HT/":
'/7>"76 NS/6H+ Lournal of )inancial Services 4arketing+ 4ay 011C$ Ool..1
"ssue 15$ p.1A(.00.
5. 4olina$ /urto+ &H:/T"@7/: 'H7H)"TS /7; 3NST@4H& S/T"S)/3T"@7 "7
&HT/": '/7>"76+ "nternational Lournal of 'ank 4arketing.
2. 6ardener Hdwar$ Howcroft 'arry+ THH 7H9 &HT/": '/7>"76 &HO@:NT"@7
S@N&3H+ Service "ndustries Lournal+ /prAA$ Ool. .A "ssue 0$ p?<(.11.
C. &./.&avi+ NSH& 8H&3H8T"@7 @) &HT/": '/7>"76 SH&O"3HS: /
3@48/&/T"OH STN;I @) 8N':"3 /7; 8&"O/TH SH3T@& '/7>S+ "3)/"
Lournal of 'ank 4anagement$ 4ay011?$ Ool. E "ssue 0$ p<0(5C.
E. T. %. >apali' H@9 &HT/": '/7>"76 H/S 6@7H "7T@ @OH&;&"OH+ 'usiness
:ine$ Luly .?$ 011E.
?. 6autam 3hakrabarty+ 3/8TN&"76 THH '@@4 "7 &HT/": '/7>"76+
Hconomic Times$ /ug 0.$ 011?.
A. 8riya 7air+ '/7>"76 @7 TH3H7@:@6I$ )rontline+ Ool. 00 "ssue 0<$ 7ov. 12 (
.?$ 0112.
.1. ;ewan /nwarul :atif$ THH )NTN&H @) &HT/": '/7>"76: / 6:@'/:
8H&S8H3T"OH+ )inancial H!press$ Lune <$ 011E.
We#sites:
... www.southindianbank.com
.0. www.bls.gov
.<. http:**search.ebscohost.com
.5. www.researchandmarkets.com
CA
.2. www.google.co.in
B!!ks :
.C. >aturi 7ageswara &ao$ "T "7 '/7>S( ST&/TH6"3 "SSNHS$ 8g 7o: <5(50$ 2<(C0.
.E. /.7. Sarkar$ ST&/TH6"3 'NS"7HSS 4/7/6H4H7T Q '/7>"76$ 8g 7o:<1.(
<...
.?. Lyotsana Sethi and 7ishwan 'hatia$ H:H4H7TS @) '/7>"76 /7;
"7SN&/73H$ 8g 7o: 2C(CC.
E1
E.