A

Project Report
On
“CRITICAL APPRAISAL OF PRODUCTS & SERVICES OFFERED

BY INDIAN BANK”

FOR
THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF
“MASTER OF BUSINESS ADMINSTRATION”
FROM GGS IP UNIVERSITY
DELHI

BATCH: 2016-2018

SUBMITTED BY: SUBMITTED TO:

Ankit kumar Lamba Dr. Monika Jain

ARMY INSTITUTE OF MANAGEMENT & TECHNOLOGY,

GREATER NOIDA (UP) – 201306
 SUPERVISOR CERTIFICATE

This is to certify that ANKIT KUMAR LAMBA, a student of Master of Business

Administration, Batch 2016-18, Army Institute Management & Technology, Greater
Noida, has successfully completed her project under my supervision.

During this period, she worked on the project titled “Critical Appraisal of Products
& Services offered Indian Bank” in partial fulfillment for the award of the degree of
Master of Business Administration of GGSIP University, Delhi.

To the best of my knowledge the project work done by the candidate has not been
submitted to any university for award of any degree. Her performance and conduct
has been good.

Dr, Monika Jain

Aimt - Greater Noida

i
 CERTIFICATE OF ORIGINALITY

I, Ankit Kumar Lamba, Roll No.01318403916 of MBA batch 2016-18 of Army

Institute of Management& Technology has undergone a Winter Project in
Indian Bank on a project title “Critical Appraisal Of Products & Services Offered by
Indian Bank”, hereby declare that project is my original piece of work.

Ankit Kumar Lamba

Batch (2016-18)
Date:

ii
 ACKNOWLEDGEMENT

I want to show my sincere gratitude to all those who made this study possible. First
of all, I am thankful to the helpful staff and the faculty of Army Institute of
Management and Technology.

One of the most important tasks in every good study is its critical evaluation and
feedback which was performed by my faculty guide Dr. Monika Jain. I am very
thankful to my Faculty as well as Industry guide for investing his precious time to
discuss and criticize this study in depth, and explained the meaning of different
concepts and how to think when it comes to problem discussions and theoretical
discussions.

My sincere thanks goes to my Institute and family, who supported and encouraged
me.

ANKIT KUMALAMBA
MBA-13
Batch (2016-18)

iii
 Executive Summary

Service quality in Indian Banking Sector is considered as main determinant of

customer satisfaction. Before liberalization the banking sector in India was mainly
dominated by nationalized banks. In the pre-liberalized era, the nationalized banks
did not pay much attention on the service quality performance and customer
satisfaction.

After liberalization and implementation of the Narsimhama Committee Report Indian

Banks is facing tough competition from the new private and foreign banks observing
International Banking Standard. These new generation banks were characterized by
the usage of modern information technology network and modern banking services,
like ATM, debit card, online banking facilities. Customers have a wide ranging
banking services offered and delivered by modern private sector banks and foreign
banks.

This present study is an attempt to focus on the service quality in Retail Banking and
highlight the dimensions of quality of banking services in public sector banks. The
survey was conducted on 100 respondents based on judgment & random sampling.
The data was collected from both primary and secondary sources. The primary data
was collected by means of survey through questionnaires.

The findings of the survey were that the respondents were satisfied with the services
of Indian Bank. Retention of customer base is one the important motto of the bank.
More number of branches is required to be opened at different parts of the country for
better access.

The need of hour for the Indian banking sector is to enhance their services quality and
shore up their competitive capabilities, making the banks more market oriented and
customer friendly.

iv
 LIST OF CONTENTS

1) Faculty Supervisor………………………………………………...(i)
2) Certificate of Originality………………………………………….(ii)
3) Acknowledgement………………………………………………..(iii)
4) Executive Summary……………………………………………….(iv)

Chapter No. Title Page No.

1. Introduction 01

1.1 Introduction to the Industry 02-05

1.2 Introduction to the organization 06-20

2. Research Objectives 21

3. Literature Review 22-24

4. Research Methodology 25

5. Data Analysis and Interpretation 26-43

6. Research Findings 44

7. Conclusion 45

8. Recommendations and Suggestions 46

9. Limitations of the study 47

Bibliography

Appendix
Chapter 1

Introduction
Industry

1
 CHAPTER 1 INTRODUCTION TO INDUSTRY

1.1 BANKING IN INDIA

India cannot have a healthy economy, without a sound and effective banking system.
The banking system of India should not only be hassle free but it should be able to
meet new challenges posed by the technology and any other external and internal
factors. For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the main
reasons of India's growth process.

HISTORY
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
· PHASE I - Early phase from 1786 to 1969 of Indian Banks
· PHASE II - Nationalization of Indian Banks and up to 1991

· PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:
The first bank set up was General Bank of India in the year 1786. Next were Bank of
Hindustan and Bank of Bengal. The East India Company established
• Bank of Bengal (1809),
• Bank of Bombay(1840) and
• Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 to establish Imperial Bank of India
which was started as private shareholders bank, mostly Europeans shareholders.
The growth was very slow during the first phase and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks,
the Government of India came up with The Banking Companies Act, 1949 which
was later changed to Banking Regulation

2
 Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in India as
the Central Banking Authority. During those day‟s public has lesser confidence
in the banks. As an aftermath deposit mobilization was slow. Comparatively
savings bank facility provided by the Postal department was much safer.
Moreover, funds were largely given to the traders.

PHASE II:

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with seven
more banks. This step brought 80% of the banking segment in India under
Government ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
· 1949: Enactment of Banking Regulation Act.
· 1955: Nationalization of State Bank of India.
· 1959: Nationalization of SBI subsidiaries.
· 1961: Insurance cover extended to deposits.
· 1969: Nationalization of 14 major banks.
· 1971: Creation of credit guarantee corporation.
· 1975: Creation of regional rural banks.
· 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India rose
to approximately 800% in deposits and advances took a huge jump by 11,000%.
Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

3
PHASE III

This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalization of banking practices.
The country is now flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net banking
was introduced. The entire system became more convenient and swift. The financial
system of India has shown a great deal of flexibility. It is sheltered and resistant to
any crisis triggered by any external macroeconomics shock. This is all due to a
flexible exchange rate regime, the Foreign Reserves are high, the capital account is
not yet fully convertible, and banks and their customers have limited foreign exchange
exposure.
NATIONALIZED BANKS IN INDIA

Banking System in India is dominated by nationalized banks. The nationalization of

banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The
major objective behind nationalization was to spread banking infrastructure in rural
areas and make available cheap finance to Indian farmers. In 1969, Fourteen banks
were nationalized.
Before 1969, State of India (SBI) was only public sector bank in India. SBI was
nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization
of Indian banks took place in the year 1980. Seven more banks were nationalized with
deposits over 200 crores.

PRIVATE BANKS

All the banks in India were earlier private banks. They were founded in the
preindependence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role in
the banking structure. Private sector banking in India received a fillip in 1994 when
Reserve Bank of India encouraged setting up to private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development Finance

4
Corporation Limited (HDFC) was amongst the first to receive an „In principle‟
approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them to
become more competitive.

5
Introduction To
Organization

6
 CHAPTER 1 INTRODUCTION TO ORGANIZATION

1.2 COMPANY PROFILE OF INDIAN BANK

Indian Bank is an Indian state-owned financial services company established in 1907

and headquartered in Chennai, India. It has 20,140 employees, 2565 branches and is
one of the top performing public sector banks in India. It has overseas branches in
Colombo and Jaffna in Sri Lanka, and in Singapore, and 223 correspondent banks in
71 countries. Since 1969 the Government of India has owned the bank.

Type: Public

Traded as: BSE: 523465

NSE: INDIANB

Industry: Banking, Financial services

Founded: 15 August 1907; 109 years ago

Headquarters: Chennai, Tamil Nadu

Key people: Mahesh Kumar Jain (MD and CEO)

R Subramanian Kumar & A S Rajeev (Executive Directors)

Products: Consumer Banking

Corporate Banking
Finance and Insurance
Mortgage Loans
Investment Banking
Merchant Banking
Private Equity
Private Banking
Savings
Credit Cards

Revenue: 180.25 billion (US$2.7 billion) (2016)

Net Income: 7.11 billion (US$110 million) (2016)

Total Assets: 2,037.10 billion (US$30 billion) (2016)

7
Owner: Government of India

No. of employees: 20,140 (March 2016)

Slogan: Your Own Bank

Website: http://www.indianbank.in/

A premier Public Sector, Government of India Undertaking

• It was established as part of the Swadeshi movement on 15th August 1907.
• It has a team of over 20140 dedicated staff as on 31.03.2016
• Total Business crossed Rs.3,10,918 Crores as on 31.03.2016
• Operating Profit: Rs. 3,032.09 Crores as on 31.03.2016
• Net Profit : Rs.711.38 Crores as on 31.03.2016
• Core Banking Solution(CBS) in all 2565 branches as on 31.03.2016
• Return on Assets (RoA) at 0.36 per cent for FY 2015-16
• Information Systems & Security processes certified with ISO27001:2013 standard
and is amongst very few Banks certified worldwide.

VISION AND MISSION OF THE BANK

Vision:

To be a competitive and strong bank with commitment to excellence and focus on

adding value to customers, shareholders and employees with adherence to best
practices and core institutional values shared throughout the organization.

Mission:

The Bank‟s mission is “To be a common Man‟s Bank”- to provide all

financial product and services: -Under one roof
- At affordable cost
-In a fair and transparent manner to all our customers.

8
BUSINESS DESCRIPTION

The Bank's principal activities are to provide commercial banking services which
include merchant banking, direct finance, infrastructure finance, corporate banking,
advisory, investment banking, private equity, private banking, savings, treasury and
other related financial services.

CAPITAL STRUCTURE

The Bank has authorized share capital of Rs. 3000 crores comprising 300, 000, 00
equity shares of Rs.10/- each. As on 31st March, 2015 the Bank has issued, subscribed
and paid-up equity capital of Rs. 480.29 crores, constituting 413,203,952 shares of
Rs. 10/- each. The Bank‟s shares are listed on the National Stock Exchange and the
Bombay Stock Exchange.

Diversified Banking Activities - 2 Subsidiary companies

1) Ind Bank Merchant Banking Services Ltd.

2) Ind Bank Housing Ltd.

International Presence

1) Overseas branches in Singapore, Colombo including a Foreign Currency

Banking Unit at Colombo and Jaffna.
2) 223 Overseas correspondent banks in 71 countries

BUSINESS OVERVIEW

An overview of various business segments

RETAIL BANKING
• Indian Bank has developed a strong retail banking franchise over the years.
Retail Banking is one of the key drivers of the Bank‟s growth strategy and it
encompasses a wide range of products delivered to customers through
multiple channels. The Bank offers a complete suite of products across
deposits, loans, investment solutions, payments and cards to help customers
achieve their financial objectives. The Bank focuses on product

9
 differentiation as well as a high level of customer-service to enable it to build
its retail business.

• The Bank has continued to develop its risk management capabilities in Retail
business, both from a credit and operations risk standpoint. The branch
channel is effectively utilized for growing the retail assets business, with loan
and card products being offered to existing clientele.

• The Bank offers a wide range of payment solutions to its customers in the
form of debit cards, prepaid cards and credit cards. As on 31st March 2012,
the Bank has a base of approximately 85 lakh debit cards. The Bank is also a
dominant player in prepaid cards. Indian Bank has over 2 lakh installed EDC
machines.

• The value proposition aims at delivering a „One Bank‟ experience to such

customers and is positioned as a complete solution involving banking,
investment and asset needs.

• The Bank also distributes third party products such as mutual funds, Bank
assurance products (life and general insurance), online trading, Gold and
Silver coins through its branches.

• The retail business of the Bank is supported by innovative services and

alternate channels which provide convenience of transactions to customers.
These channels include an extensive ATM network, internet banking, mobile
banking and phone banking.

International Retail

• International Retail Business focuses specifically on the overseas sales

channel, retail foreign exchange business, remittances and retail businesses in
overseas centers such as Singapore and Sri Lanka, where the Bank has a
presence. The products offered in the area of retail Forex and remittances
include travel currency cards, inward and outward wire transfers, traveler‟s
cheques and foreign currency notes, remittance facilities through online
portals as well as through collaboration with correspondent banks, exchange
houses and money transfer operators.

BUSINESS BANKING

• Business Banking leverages the Bank‟s strengths – a well distributed network

of branches and a strong technology platform to offer the best in transaction
banking services. The Bank offers a range of current account products and
cash management solutions across all business segments covering corporates,

10
 institutions, central and state government ministries and undertakings as well
as small and retail customers.

• The Bank is one of the top CMS providers in the country. The Bank acts as an
agency bank for transacting government business offering services to various
Central Government Ministries / Departments and other State Governments
and Union Territories.

• In order to provide solutions for business to effectively manage their funds

flow, the Bank has introduced liquidity management solution for corporate
customers. Similarly, a single window for all payment requirements was
launched with several advanced features such as setting a daily transaction
limit for corporate users, setting transaction limits for individual beneficiaries,
prioritizing payment methods, online stop payment and cancellation facilities.

CORPORATE CREDIT

• Indian Bank provides customized structuring and financing solutions in a

timely and comprehensive manner to its corporate customers with a focus on
building out a high quality credit portfolio. The Bank is a market leader in
Debt Capital Markets and loan syndication business across segments, sectors
and geographies. The Bank also provides full range of Treasury and Trade
Finance solutions to its corporate clients. The Bank offers technology enabled
transaction banking and cash management services to customers across
Government, financial institutions and corporate segments.

• Bank‟s infrastructure business includes project and bid advisory services,

project lending, debt syndication, project structuring and due diligence,
securitization and structured finance.

TREASURY

• The Bank has an integrated Treasury, covering both domestic and global
markets, which manages the Bank‟s funds across geographies. The Bank‟s
treasury business has grown substantially over the years, gaining market share
and continuing to grow in terms of forex revenues. It also actively participates
in the secondary government securities and corporate debt market. The Bank
has been exploring various cross-border markets to augment resources and
support customer cross-border trade. It provides a gamut of products for
exports and imports as well as retail services. Its cutting edge technology
provides comprehensive and timely customer services.

11
 INTERNATIONAL BANKING

• The international operations of the Bank form a key enabler in its strategy to
partner with the overseas growth potential of its domestic clientele, who are
venturing abroad or require non-rupee funds for domestic projects. The Bank
now has a foreign network of four branches (Singapore, Jaffna, and Colombo
(Sri Lanka). While corporate banking, trade finance, treasury and risk
management solutions are the primary offerings through the branches at
Singapore, Colombo. The Bank also offers retail liability products from its
branches at Hong Kong and Colombo.

SMALL AND MEDIUM ENTERPRISES

• The Small and Medium Enterprises (SME) segment is a thrust area of the
Bank. The business approach towards this segment, which is expected to
contribute significantly to economic growth in future, is to build relationships
and nurture the entrepreneurial talent available. The relationship based
approach enables the Bank to deliver value through the entire life cycle of
SMEs. The Bank has segmented its SME business in three groups: Small
Enterprises, Medium Enterprises and Supply Chain Finance. The Bank
extends working capital, project finance as well as trade finance facilities to
SMEs.

INFORMATION TECHNOLOGY

• Technology is one of the key enablers for business and delivery of customized
financial solutions. The Bank continues to focus on introducing innovative
banking services through investments in scalable and robust technology
platforms that delivers efficient and seamless services across multiple
channels for customer convenience and cost reduction. The Bank has also
focused on improving the governance process in IT. The Bank has launched
the Business Process Management System, a reusable system, which helps to
build process efficiencies across various areas of operations.

• The Bank has undertaken various steps in order to align itself towards RBI
guidelines on security and governance, including setting up of Board and
Executive level committees and working on IT operations and other key areas.

12
 AGRICULTURE
• Under Financial Inclusion Plan, Indian Bank has been allotted with 1692
villages with population above 2000and 4210 villages with population below
2000. Villages have been mapped as SSAs and realloted to Banks. Our bank
is allotted with 2975 SSAs across the country. Of these 2517 SSAs are
covered through Smart card based Business Correspondent (BC) Model and
458 SSAs through branches.

Board of Directors
PERSON DESIGNATION

T C Venkat Subramaniam Non Executive Chairman

Mahesh Kumar Jain Managing Director & CEO

A S Rajeev Executive Director

R Subramania kumar Executive Director

B P Vijayendra Director
Deepak D Samant Director
Vinod Kumar Nagar Director

Sriram Ramchandran Director

Mudita Mishra Director

Padmanaban Mittal Dass Part Time Non Official Director

Vijay Kumar Goel Part Time Non Official Director

Indian bank offers its services majorly in four parts:

A. Personal
B. Corporate
C. NRI
D. Priority banking

13
A. Personal
Indian bank offers various services for individual domestic customers, which
includes services like
1. Accounts
2. Deposits
3. Loans
4. Cards
5. Forex
6. Investments
7. Insurance
8. Payments
9. Other services

1. The accounts offered by Indian bank for its customers are:

• Savings Account
• Krishi Savings Account
• Prime Savings Account
• Basic Savings Account
• Women‟s Savings Account (smart privilege account)
• Priority banking Account Demat Account
• Senior citizen‟s Account
• Defence Salary Account
• Trust/NGO Savings Account
• Insurance Agent Account
• Resident Foreign Currency (Domestic) RFC(D) Account
• Pension Savings Bank Account
• Student Account

2. Deposits offered by Indian Bank:

a) Fixed Deposits
Indian Bank offers simple reinvestment Fixed Deposits (at very competitive
interest rates), which can be opened with a minimum investment of Rs 100.
The tenure of their deposit must be a minimum of 6 months.

b) Recurring Deposits
Indian Bank's Recurring Deposit scheme will allow you with an opportunity
to build up your savings through regular monthly deposits of fixed sum over
a fixed period of time.

Features

14
 Minimum amount- Monthly installment Rs. 5 and then multiples thereof.
Minimum period - Minimum 6 months
- In multiples of 3 months with a maximum of normally 10
Years.

3. Loans Offered by Indian Bank :

• Home Loan
• Car loan
• Personal Loan
• Loan against Shares
• Loan Against Property
• Loan Against Securities
• Loan against Gold
• Education Loan

4. Cards Offered By Indian Bank

Credit Cards

• Gold Card : Rs 75001 to Rs 3 Lakhs

• Classis Card: Rs 25000 to Rs 75000
• Bharat Card: Rs 100000 to Rs 200000

Debit Cards

• Maestro Debit Card

• Classic Debit Card
• Gold Debit Card
• Business Gold Debit Card

5. Forex offered by Indian bank

• Travel Currency Cards

The Travel Currency Card gives its customers a 24-hour access to money.
Withdraw funds in the local currency from any Visa or Visa Plus ATM's

15
 (Automated Teller Machine) as well as pay for all your purchases in any
country you visit, anywhere in the world.

• Outward Remittances
Indian Bank offers Outward Remittance facilities enabling its customers to
remit money abroad through reliable and quick transactions.
They can send money abroad for reasons more than one: education, medical
purpose, gifting, and maintenance for loved ones or donation for a cause.

• Foreign Currency Travelers Cheques

American Express Traveler's cheques are widely accepted globally as a mode
of payment in many parts of the world. It is always worthwhile taking some
of your foreign exchange in travelers' cheques as it is a great backup to cash
and cards.

• Foreign Currency Cash

Carrying small amount of local currency or internationally acceptable
currency variants in wallet while travelling overseas is reassuring and
convenient - especially to make payments for the services you may require on
your arrival at the destination

6. Insurance Services offered:

• Life Insurance
• Home Insurance
• Motor Insurance
• Health Insurance
• Travel Insurance
• Business Guard

7. Payments services offered by Indian Bank:

Bill Pay

Indian Bank's Bill Pay service enables you to make secure payments from the
comfort of your home or office. So its time to say goodbye to late payment
fines, long queues, lost bills, and commissions paid to local errand boys.

16
 ECS
It is an electronic clearing system that facilitates paperless credit / debit
transaction directly linked to your account and also provides for a faster
method of effecting periodic and repetitive payments.
Through ECS (Debit), you can pay all your Utility bills
(electricity/telephone/Mobile bills, credit cards, etc), Mutual Fund (SIP),
Insurance Premium, Loan Installments, credit card payments, payments of
donations and other bill payments.

Tax epayments
In this service, Income / Other Direct Taxes, as well as Central Excise &
Service Tax* through iconnect can be paid from account online and can get
on-line acknowledgement of the payment by way of a Cyber Receipt,
including Challan Identification Number (CIN) immediately after making the
payment.

Direct tax Payment

The Bank is authorized for Collection of Income or Other Direct Taxes on
behalf of Central Board of Direct Taxes (CBDT) w.e.f 1 October, 2003.

Pension Disbursement
The Bank is authorized by RBI and Ministry of Defense for disbursement of
Pension to Armed Force (Army, Navy and Air Force) personnel through its
151 authorized branches across the country.

Other services offered by Indian Bank to its individual customers are:

MOBILE REFILL : RECHARGE AT THE ATM

An individual can recharge his mobile talk time at any of our ATMs. He
doesn‟t even have to be an Indian Bank customer. All his need is a VISA debit
or credit card. If he is an Indian Bank customer, then he can also use his Indian
Bank debit card (both VISA as well as Master card).

• LOCKER (Unmatched protection for your valuables)

A Safe Deposit Locker with Indian Bank is the solution to an individual‟s
concern. Located at select branches in cities all over the country, our lockers
ensure the safe keeping of an individual‟s valuables.

• ONLINE SHOPPING (Safe and Secure internet Payment)

17
 Indian Bank offers an individual the convenience of shopping at many major
Online stores from the comfort of his home or office. All he need is an Internet
enabled PC. He can choose & then get he items delivered at his doorstep. He
can also avail of numerous online services, get to know about the current special
offers/discounts and get a preview of the new items added on to the shelves by
these online retailers/service providers. He can shop as much as he like and
conveniently make instant payments by debiting his account through the secured
payment channel, iConnect – Our Internet banking platform.

E-STATEMENT

Indian Bank offers the facility of E-Statement. E-Statement is secure and

Electronic way to receive statement of accounts from the Bank.

Features

Anywhere Banking
Bank‟s Current Account allows an individual to bank from all Indian Bank‟s
branches and Extension counters. An individual can deposit cash, withdraw cash,
deposit cheque, and issue „at-par‟ cheques at any of Indian Bank‟s branches. So bank
at an individual‟s own Convenience.

Instant Fund Transfer

An individual can transfer funds instantly between any of Indian Bank‟s branches.
Funds transfers can be affected online, right from an individual‟s through Indian
Bank‟s internet banking services.

Internet Banking
Available with multiply user IDs, depending on an individual‟s needs. Access an
individual‟s account at any time form anywhere. An individual can transfer funds to
his own accounts or to third party accounts within Indian Bank & Inter Bank covering
over 25,000 branches of various banks. An individual can also excuse bulk payments
like salary and commission across Indian Bank network right form his desktop.

18
At-Par (Multicity) Chequebook
Enjoy the benefits of Multicity Chequebook with Bank‟s current Accounts. An
individual cans issue cheques payable at par at all Bank‟s branches across the
country.

ATM or Debit Card

With every Current Account (For proprietary and partnership concerns), An
individual can avail up to 2 ATM cum Debit cards, which allow an individual round
the clock access to his account from any of all Indian Bank‟s ATMs all over the
country. An individual can withdraw up to Rs 40,000 a day.

B Non-Resident (External) NRE Saving Account

Any person resident outside India may open NRE account. This account permits a
NRI to hold and maintain foreign currency earnings in Indian rupees. The Principal
and interest earned on these balances are freely reportable.
Whether an individual are a student, a professional, a salaried employee or an
entrepreneur, this account will meet all an individual‟s banking need.

Types of NRI Accounts

1) Non Resident Ordinary Account (NRO)
2) Non Resident (external) Rupee Account (NRE)
3) Foreign Currency Non Resident Account (FCNR)
4) Resident Foreign Currency Account (RFC)

D. Priority Banking – Resident

Features
• Priority Banking Lounge :

As a Priority banking customer an individual will have access to an exclusive

„Priority Banking Lounge‟ at branches. This will allow an individual to conduct his
financial transactions in utmost comfort and confidentiality through an exclusive
Relationship Manager.

19
 • Dedicated Relationship Manager

An individual will enjoy access to a dedicated Relationship Manager who will be his
one point contact at branch for all his banking transactions thus ensuring that An
individual would neither have to move from one counter to the other nor stand in
queues to await his turn.

• Home Banking

Experience the convenience of Indian Bank‟s home banking facilities. Avail of free
cash and cheque pick-up delivery at an individual‟s or residence.

• Exclusive Priority Banking International Debit card

This card allows an individual free access to all VISA ATMs in Idea. The card also
comes with higher ATM withdrawal limits; higher POS transaction limits at merchant
establishments, enhanced insurance over and a host of special discounts and offers.
An individual also get Prefential Interest Rates and lowered Processing Fees on select
Retail Loans.

• Investment Privileges

Avail of assistance in financial planning. Investment advice market information

reports and invitations to investor meets are offered complimentary to an individual.

MOBILE BANKING
Indian Bank Offers the Automatic Alerts service in mobile banking:
A subscriber is alerted through SMS on the activities in his account with automatic
alerts. Also if the customer is registered for bill payments, he receives an alert as soon
as a bill is presented by the biller for payment.

Benefits
Safety: Be alerted on any transaction above Rs. 5,000 in an individual‟s account so
that action can be initiated promptly in case of any misuse of the account.
Convenience: Know the status of the account from wherever an individual are.

20
 CHAPTER 2

OBJECTIVES OF STUDY

Main objective of the study is to “Critical appraisal of product & services offered by
Indian Bank.” Some of the major objectives of the study include the determination of
the following:

 To know Consumer awareness about the products and services provided by

the Indian bank.
 To know the Consumer preference about various products and services.
 To know the Customer satisfaction with the services provided by the bank.

21
 CHAPTER 3

LITERATURE REVIEW

1) Gautam vikas, (April- June 2011), An Empirical Investigation of

Perceptions of Customers about Quality of Services Offered by Public and Private
Sector Banks, Romanian Journal of Marketing, 60-76.

Present study included five dimensions of the service quality perceptions namely,
tangibility, reliability, responsiveness, assurance, and empathy. The analysis of these
dimensions identified that between public and private sector banks, private sector
bank Industrial Credit and Investment
Corporation of India (ICICI) has high tangibility in terms of the employees, physical
evidence and ambience. However public sector bank, State Bank of India (SBI) is the
oldest bank, but employees of Industrial Credit and Investment Corporation of India
(ICICI) are comparatively more professional. In case of ambience again private sector
banks are spending more than public sector banks. Therefore customers perceive it as
a quality tangible offer in case of private sector bank.

The analysis of reliability dimension places the public sector banks far ahead of the
private sector banks. Public sector bank State Bank of India (SBI) is perceived to be
more reliable than private sector bank Industrial Credit and Investment Corporation
of India (ICICI). It is this factor, on which the public sector banks have been able to
improve their perceptions among the customers. Due to this fact, the customers trust
them.

The analysis of the other dimension, responsiveness represents again the public sector
banks as the front runners between public sector and private sector banks, but the
difference is not as much substantial. The interpretation of this dimension can be done
as the employees' capability to respond to the customers. This fact is well represented
in the voluminous increase in banking business of these public sector banks.

The assurance dimension of service quality is also very high in public sector banks
rather than private sector banks. The analysis revealed the same. This is also
correlated to the factors of reliability dimension, as reliability leads to trust and
support.

The overall comparison between public sector and private sector banks identifies the
public sector banks as having the higher quality perception than their private sector
counterparts.

22
2)Vyas Sharma, Richa, Nijaguna Rudrayya, Bhusnur Math,(May 2006), A
comparative study of cross-selling practices in public and private sector banks
in India, Journal of Financial Services of Marketing, 10.4.

In this research, we attempt a comparison of cross-selling efforts undertaken by

'public sector' and 'new private sector' banks, respectively. We identify six parameters
that relate to cross-selling activities and report the status of each bank in relation to
each parameter. It shows that cross-selling practices in public sector banks and private
sector banks are quite different. In general, 'the: new private banks' are more likely to
employ what the literature has recognized as effective elements of cross-selling.
These include: employee training, incentives, utilization of cross-selling
professionals, customer focus and more coordinated usage of databases and CRM
tools. In most cases, 'public sector banks' are found to be weak in these areas.

3) Swar, Biranchi Narayan, (July- Dec 2012), Managing Customers Perceptions

and Expectations of Service Delivery in Selected Banks in Odisha.

Major Findings

* It has been found that as far as customers' perceptions of service delivery are
concerned 'human element of service delivery' is the most important dimension,
followed by systemization element of service delivery respectively.

* In connection to customers' expectations of service delivery 'systemization

element of service delivery' is the most important dimension, followed by 'human
element of service delivery' respectively

* It also found that each elements of customers' perception & expectations of

service delivery influence the overall service delivery of the banks understudy.

4) Lal, Jawahar; Vij, Madhu; Jain, Sonali, ( Oct 2014- Mar 2015),
Demographics Influence Customer Service Quality Perceptions? A
Comparative Study of Indian and Foreign Banks, Journal of Services
Research, 14.2.

Findings relating to perceptions of service quality in the Indian and foreign banks
across various groups of customers, viz., age, gender, marital status, income,
educational qualifications and occupation.

Variations in Service Quality Perceptions across Age Groups

Based on their age, the surveyed customers were classified into five groups and mean
service quality perception score for each of the groups was computed. One way

23
ANOVA was applied to test the statistical significance of differences, if any, present
across the age groups for each of the service quality constructs under investigation.

In the case of customers of Indian banks, it can be observed that by and large no
significant difference exist across the age groups in respect of overall service quality
perceptions as well as each of its two broad dimensions: functional quality and
outcome quality. Reliability as a sub-dimension of functional quality is the sole
dependent variable in respect of which significant differences (p0.05) exist across the
age groups, with people from age groups '26-35 years' and 'above 56 years' to be
having much better perceptions than customers belonging to age group '46-55 years'.
On the whole, the above results only partly lend support to the hypothesis H1a.

So far as the foreign banks' customers are concerned, outcome quality is the only
dimension in respect of which significant differences (p<0.05) exist across the age
groups. However, no group is found to be significantly differing from one another in
terms of Sheffe comparison test. The results thus largely fail to provide support in
favour of hypothesis H1b.

On the whole, the results of the present study are at variance with those of previous
studies that service quality perceptions differ across age groups of customers in the
Indian banks and foreign banks.

5) Gonzalez, Marvin E; Quesada, Giaconda; Picado, Federico; Eckelman, Carl A,

(July 2005), Customer satisfaction using QFD: an e-banking case.

From the survey and personal follow-up interviews, we gathered about 535 customer
requirements. Because all of these requirements could not be included in the planning
matrix, we used several TQM tools such as the affinity diagram and the relation
diagrams to group and summarize the variables. Next, we performed different
statistical analyses, such as dynamic analysis and factor analysis, to classify and rank
these customer requirements. In the Appendix, Table AI, we can see a middle step of
the classification process, since we showed how the 535 customer requirements were
grouped into 14 customer requirements. However, further data reduction is needed,
as we will see in the final house of quality. A definition of each customer requirement
is provided to have a better understanding of the needs.

Using the customer window quadrant (CWQ), customer requirements were

summarized as shown in Figure 2. The CWQ is an analytical quality tool designed
to group and classifies customer requirements based on the level of importance and
satisfaction (Intel Corporation, 1997).

24
 CHAPTER 4

RESEARCH METHODOLOGY

Type Of Research
Research is one of the most important parts of any study and pertains to the collection
of information and knowledge. My project has been developed on the basis of both
exploratory and descriptive research. The research process depends upon
developing the most efficient plan for gathering the needed information. Designing a
research plan calls for decisions on the data sources, research approaches, research
instruments, sampling paln, and contact methods.

Sample Size And Method Of Selecting Sample

I chose a sample size of 100 respondents based on judgment and simple random
sampling. All respondents were the customers of Indian Bank.

Data Source
For this project both primary and secondary data were valuable sources of
information.

Secondary data
Secondary data provides a starting point for any research and offers valuable sources
of already existing information. Secondary data are the easiest to gather and the cost
of collecting this data is also very low. For my project work it was collected through
the help of various directories of various associations, magazines, newspapers,
websites etc.

Primary data
Primary data are data freshly gathered for a specific purpose. For my project work the
primary data was collected by means of survey through questionnaires.

Contact methods
Once the client had been decided now my task was how to contact them, there were
two ways of contacting them.
-Personal interview: - This method was the most appropriate way of survey, because
by personal interview I came to know about their feeling for Indian bank. -
Telephone: - This method was also used by me once or twice, keeping in mind the
busy schedule of a few respondents.

25
 CHAPTER 5

DATA ANALYSIS

PART 1
Comparative Analysis of Products of Indian Bank with PNB and
SBI.

26
ANALYSIS 1:

This analysis displays the division of sample according to the occupation. A total of
100 people were surveyed.

Table 1

Cumulative
Frequency Percent Valid Percent Percent

Valid SALARIED 44 44.0 44.0 44.0

BUSINESS 24 24.0 24.0 68.0
PROFESSIONAL 32 32.0 32.0 100.0
Total
100 100.0 100.0

Interpretation:
According to the chart, respondents who have a fixed salary have the maximum
number of accounts in the bank. The next accounts maintained was of professionals
followed by respondents who have their own business.

ANALYSIS-2
How the customers find salary and savings account provided by Indian Bank?

Very Good 20%

Good 30%

27
 Satisfactory 24%
Excellent 16%
Poor 10%

customers

very good
0%
good
10% 20%
16% satisfactory
exellent

24% 30% poor

Interpretation:

According to the survey, 30% of respondents found the services of savings

and salary account good, 24% are satisfied with the services and
10% are not satisfied by the services provided by the bank.

ANALYSIS-3
Do customers have any other product of Indian Bank other than savings and salary
account? (Like term deposit, mutual funds, insurance, home loan, car loan etc.)

28
 THIRD PARTY PRODUCT

20%

YES
NO

80%

Interpretation:

80% of the respondents had other products and services offered by Indian Bank. Rest
20% respondents had only salary and services account.

ANALYSIS-4
Which bank is better in providing services regarding transactions?

Bank Response
Indian Bank 40%
PNB 29%
SBI 31%

29
 BANKS

SBI
31%

Indian bank 40%

PNB
29%

Interpretation:

According to the survey, 40% of the respondents found the transaction services of
Indian Bank better than of SBI or PNB. But there was also a very less margin of
differentiation between the three banks.

ANALYSIS-5

Which is better bank in ease of access (both branch & ATM)?

Banks Response
Indian Bank 30%
SBI 45%
PNB 25%

30
 BANKS

25% 30%

INDIAN BANK
SBI
PNB
45%

Interpretation:

In ease of access, 45% responded to SBI and 30% to Indian Bank.

It means more number of branches and ATM is not in the reach of the customers of
Indian Bank.

ANALYSIS-6
Are you satisfied with the relationship manager‟s service provided by Indian Bank?

Response
YES 79%
NO 21%

31
 Relationship Manager service

21%

YES
NO
79%

Interpretation:

Most of the respondents are satisfied with the relationship manager‟s services at the
Indian Bank branch.

ANALYSIS-7
Which channel you use to access your account?

Channel Response
Direct Branch 48%
Mobile banking 22%
Net banking 30%

32
 HOW YOU ACCESS YOR ACCOUNT

0%

30%
48%
DIRECT BRANCH
MOBILE BANKING
NET BANKING
22%

Interpretation:

Today also in the era of internet, most of the respondents still prefer going directly to
the branch. Next 30% use net banking facility provided by bank and rest 22% transact
through mobile banking.

ANALYSIS-8
Which are the areas of improvement?

Areas of improvement Response

Updates 35%
Services 25%
Technology 12%
Research 11%
Products 17%

33
 AREAS OF IMPROVEMENT

17%
35%
11% UPDATES
SERVICE

12% TECHNOLOGY
RM
25% PRODUCTS

Interpretation:

35% respondents preferred that the area of updates should be improved followed by
services (25%) and products (17%) offered by Indian Bank. RM and Technology
need less improved compared to other areas.

34
 PART – 2

“CRITICAL APPRAISAL OF PRODUCT & SERVICES”

35
Q.1 Which age group do you belong (Age wise)?

Age Group Respondents

Less than 25 48
25-40 25
40-55 15
Above 55 10

Interpretation:
After looking at this bar graph, it can be said the middle-aged group are the main
customer of the banks as they occupied almost 75% of this graph. The bank has a
huge potential in terms of the untapped market – Young and old age group people.
High pay packages to today‟s employed youth and large saving with the old age
people (especially in urban areas) has made them attractive potential customers.

36
Q.2 Please specify your annual
income?

Income Response
Less than 1 lakh 10
1-2 lakh 18
2-3 lakh 20
3-4 lakh 28
More than 4 lakhs 32

Interpretation:
Income does not make any difference as far as opening the account in the Bank is
concerned, as the bar diagram is vividly revealing that more or less people of every
segment of income group have opened and are opening the account except one group
i.e. lower income group where emphasis is required to penetrate this group so it can
be said that it is the target group of the Indian bank, specially for saving account are
of every segment of income group since its is devoted to render best services to its
costumer.

37
Q.3What features/attributes, while opening an account do you expect from a
bank?

Features Response
Quick services 35%
Proper information 20%
Working hours 17%
Less formalities 20%
Variety of products 08%

Interpretation:
When a customer visits any bank the first and foremost thing he expects is the
quickness of service and the promptness in entertaining by the bank employee.
Second thing customer wishes to have is proper information regarding his queries.
Varieties of product do not make a big impact on customer behavior for opening an
account in any bank if its services are efficient. But on the other hand bank can‟t
ignore working hours. For these services like bank preference should be given to
make a prompt and customer friendly service channel. For this focus must be given
to make well informed and proactive employee along with work should be executed
technologically rather than manually.

38
Q.4 What kind of account do you
have in Indian Bank?
Type of account Response
Savings account 44%
Current account 26%
Fixed deposits 13%
NRI account 05%
others 10%

Interpretation:
Saving account is the leading and attractive product for the Indian bank as it occupies
a major chunk in this bar. On the second hand current accounts and fixed deposits has
also been helpful to increase the customer base but still their performances need to be
improved. Providing better services in comparison with the competitors is a must for
excelling in industry.

39
Q.5 Who influenced to open an account in Indian Bank?

Influenced by Response
Friends and relatives 33
Advertisement 24
Bank employees 25
prospectus 18

Interpretation:
As it is said a satisfied customer is the best medium for advertisement since in this
bar friends and relatives have play a key role in opening the accounts for others, which
implies that banks real customer is satisfied enough with the facilities available on
the products and the services enjoyed by them. It reveals advertisement of different
medium, as been a key factor in generating the awareness about banks product as well
as facilities that are made to available on then in the people‟s mind.

40
Q.6 Your remark on products of
Indian Bank?
Remarks Response
Excellent 22
Good 45
Average 23
Poor 10

Interpretation:
As this chart is showing at what level people are saved with saving account, because
by and large it can be said 75% people are saving to savings accounts, this implies
that this product has been a leading product and still an attractive product of the Indian
bank. Reason for this could be different type of facility associated with this product,
which are reading true value to the customer and marketing people are also very much
devoted to give the best from this part.

41
Q.7 In comparison to other bank how would you rate Indian Bank?
Ratings Response
Excellent 22
Good 48
Average 24
Poor 08
Cannot say 08

Interpretation:
Rating of any bank depends on its overall performance in the eye of the people. This
bar is vividly showing that the performance of Indian bank has been good because in
such a short span of it‟s existence in this city with strong competition from major
public sector bank like SBI and other private banks, Reason for this could be, it has
occupied a different position in the people mind with its customer friendly products
and to serve them an efficient and prompt banking system.

42
Q.8 Do you think the number of counters available are sufficient?

Interpretation:
As this pie chart is showing 82% counters are sufficient. While it should be 100%
sufficient.

43
 CHAPTER 6

FINDINGS

• More or less people of every segment of income group have opened and are
opening the account except one group i.e. lower income group where
emphasis is required to penetrate this group so it can be said that it is the target
group of the Indian bank.
• Saving account is the leading and attractive product for the Indian bank.
• Varieties of product do not make a big impact on customer behavior for
opening an account in any bank if its services are efficient.
• The bank has good relation with its customers. The customers are very
satisfied with the relationship manager service provided by Indian Bank.
• The bank and its customers have a long term relationship. Indian Bank has the
tendency to retain its customers at any cost. They believe that the old customer
is more profitable instead of a new one that‟s why they try to maintain good
and long term relations to their customers.
• Less no. of customer uses mobile banking or net banking. Most of them prefer
to go to the branch directly.
• The accounts of Indian bank (both salary & saving) provide great flexibility
in terms of offering.
• The accounts of these three banks don‟t have much difference in terms of
features but when it comes to service providing. Indian Bank gets an edge
because of their great customer services.
• The bank has does not have more no. of branches and ATM‟s that‟s why it
should increase them for more ease of access.

44
 CHAPTER 7

CONCLUSION

• The study mainly was on the customer orientation that how they think, what
they want from their banks and how they take decision going to any bank.
• In this study I found that the bond of Indian Bank with its customers is very
strong, because Indian Bank mainly focuses on retaining their customers.
• This study finds that however Indian Bank is not the leading public sector
bank but its vast range of products and availability of options make it one of
the better banks in India.
• The bank should focus on the semi urban and rural market because these
markets are very good opportunity. Without expanding in these markets
Indian Bank cannot be a leading bank so they should focus on this market.
• The bank should pay more attention on giving updates and should increase the
level of service providing because the competitors of Indian bank are better in
this area.
• The bank should try to increase the use of technology like mobile and net
banking among its customers.

45
 CHAPTER 8

RECOMMENDATION& SUGGESTIONS

• Mostly service class persons prefer the Indian bank in the comparison of
business and students and other class persons thus it needs to promote its
product and services that are offered mainly for the business class people and
students. Because these two class forms major users of the banking services.

• The bank should focus on mass banking in order to increase their market
share. They should launch such products which would be within the reach of
the lower middle class.

• Indian bank is not properly using the current account, so its popularity ratio is
quite down. This bank is normally using for the long term planning like saving
and FD.

• This bank is not investing more into the marketing sector so I will suggest that
some part of revenue should be invested in advertising and marketing sector.

• In comparison to other banks its performance is quite good but not an effective
so this may be doing the rates were down with some other facilities.

• The bank should try to increase the use of technology like mobile and net
banking among its customers.

46
 LIMITATIONS OF STUDY

• The study was based on a very modest sample size hence cannot be called as
a representation of the views and opinion of the majority.
• In a rapidly changing industry, analysis on one day or in one segment can
change very quickly. The environmental changes are vital to be considered in
order to assimilate the findings.
• The conclusion arrived at are based on a very less experience of researcher in
this field.
 BIBLIOGRAPHY

 Gonzalez, Marvin E; Quesada, Giaconda; Picado, Federico; Eckelman, Carl

A, (July 2005), Customer satisfaction using QFD: an e-banking case.
 Gautam Vikas, (April- June 2011), An Empirical Investigation Of Perceptions
Of Customers About Quality Of Services Offered By Public And Private
Sector Banks.
 Http://Www.Indianbank.In/Products.Php
 Http://Www.Moneycontrol.Com/India/Stockpricequote/Banks-
PublicSector/Indianbank/Ib04
 Http://Search.Proquest.Com/Business/Docview/993180348/D8d49aea63274
e22pq/2?Accountid=174356
 Http://Search.Proquest.Com/Business/Docview/195269934/D8d49aea63274
e22pq/17?Accountid=174356
 Http://Search.Proquest.Com/Business/Docview/1355507721/D8d49aea6327
4e22pq/19?Accountid=174356
 Http://Search.Proquest.Com/Business/Docview/1652212572/D8d49aea6327
4e22pq/20?Accountid=174356
 Http://Www.Indianbank.In/Services.Php
 Vyas Sharma, Richa, Nijaguna Rudrayya, Bhusnur Math,(May 2006), A
comparative study of cross-selling practices in public and private sector banks
in India, Journal of Financial Services of Marketing.
 Swar, Biranchi Narayan, (July- Dec 2012), Managing Customers Perceptions
and Expectations of Service Delivery in Selected Banks in Odisha.
 APPENDIX
QUESTIONNAIRE- 1

Name………………………………. Address …………………………

Gender……………………
Age ………………………………..

1. Which income group do you belong to?

a) Less than 50,000 p.a.
b) 50,000 to 1, 00,000 p.a.
c) 1, 00,000 to 3, 00,000 p.a.
d) 3, 00,000 to 5, 00,000 p.a.
e) More than 5, 00, 000 p.a.

2. How do you find the salary/saving accounts of Indian Bank?

a) very good
b) good
c) excellent
d) poor
e) satisfactory

3. Do you have any other product of Indian bank other than salary/saving account?
a) Yes
b) No

4. Which bank is better in providing services in transactions?

a) Indian Bank
b) SBI
c) PNB

5. Which bank has ease of access (both branch and ATM)?

a) Indian bank
b) SBI
c) PNB
6. Are you satisfied with the relationship manager‟s services provided by Indian
Bank?
a) Yes
b) No

7.Which channel do you use to access your account?

a) Direct Branch
b) Mobile Banking
c) Net Banking

8. Which is the area of improvement for Indian Bank?

a) Products
b) Research
c) Services
d) Technology
e) Updates

QUESTIONNAIRE -2

Name……………………………….
Gender……………

Q.1 Which age group do you belong?

a) Less than 25
b) 25 to 40
c) 40 to 55
d) Above 55

Q.2 What is your occupation?

a) Service
b) Business
c) Student
d) Others

Q.3 What features/attributes, while opening an account do you expect from a

bank?
a) Quick Services
b) Variety of products
c) Less formalities of documents
d) Working hours
e) Proper information
Q.4 What kind of account do you have in Indian Bank?
a) Saving Account
b) Current Account
c) Fixed Deposits
d) NRI Account

Q.5 Who influenced to open an account in Indian Bank?

a) Bank Employees
b) Prospectus
c) Advertisement
d) Friend and Relative
Q.6 Your remark on products of Indian Bank?
a) Excellent
b) Good
c) Average
d) Poor
Q.7 In comparison to other bank how would you rate Indian Bank?
a) Excellent
b) Good
c) Average
d) Poor
e) Can‟t Say

Q.8 Do you think number of counters available is sufficient?

a) Yes
b) No