8 to 8 Banking

“IMPACT OF 8 TO 8 BANKING FOR UBI”.

Impact of 8 to 8 Banking ForUnion Bank of India,

LALA LAJPATRAI COLLEGE OF COMMERCE & ECONOMICS 1


UNIVERSITY OF MUMBAI

A PROJECT ON

“ IMPACT OF 8 TO 8 BANKING FOR UBI”.

SUBMITTED BY

MS. PATNI DHARA ASHOK

47, NIRMAL NIVAS BLDG. NO.2, 5TH FLOOR, GOWALIA TANK,

MUMBAI- 400 036

PROJECT GUIDE: PROF. VIJAYA GANGAL

SEMESTER V

BACHELOR OF COMMERCE (BANKING & INSURANCE)

ACADEMIC YEAR 2007-2008

SUBMISSION DATE:

LALA LAJPATRAI COLLEGE OF COMMERCE AND ECONOMICS

MAHALAXMI, MUMBAI-34



TELEPHONE-2492 8240 / 41

CERTIFICATE

I, Prof. Vijaya Gangal, of Lala Lajpatrai College of Commerce &

Economics, hereby certify that MS. DHARA ASHOK PATNI student of T. Y.

Banking and Insurance, 5th Semester, have completed his project on

_________________ in the academic year 2007 - 08.

This information submitted is true and original copy to the best of my

knowledge.

Signature

(Prof. Vijaya Gangal)



ACKNOWLEDGEMENT

With great pleasure I would like to thank Prof. Vijaya Gangal, of Lala

Lajpatrai College of Commerce and Economics, for giving me the opportunity to

do this project on “ IMPACT OF 8 TO 8 BANKING FOR UBI”.

I would also like to thank her for being an inspiration in the completion of

this project. She gave me their valuable advice and help without which this project

would not have materialized.



DECLARATION

I, MS. DHARA ASHOK PATNI the students of Lala Lajpatrai College of

Commerce and Economics, T. Y. Banking and Insurance, 5th semester, hereby

declare that I have completed this project on ________________ in the academic

year 2007 - 08.

This project submitted is true and original copy to the best of our

knowledge.

SIGNATURE OF STUDENT



EXECUTIVE SUMMARY

This research entails the study of impact of twelve hour banking undertaken

by various UBI branches- impact on their financial performance, customers and

other stake holders. The philosophy that Customer is king is apparently the major

reason for this increase in banking hours. Today, the customer is more demanding

than ever and only those organizations that can provide value for money and time

of their customers, can ensure customer loyalty. This study tries to throw light on

what has been the impact of the increase in banking hours on the UBI’s Dadar

branch- its income, expenses, profits, etc. The project also tries to analyse the

responses and reactions of customers, employees and managers to this service with

aid of questionnaires and personal interviews. The suggestions and feedback

about preferential timings by all the stakeholders are also found out.

The study aims to not only find out financial, marketing and human

resource aspects behind the decision to increase banking hours but also to find out

whether this is proving beneficial to the Bank. This has been undertaken in the

project by interviewing personally and through questionnaires all stake holders,

with respect to various essential parameters. Taking it further, they were asked

what are their comments, suggestions and complaints for and against this new

service and how this service can be made more profitable and beneficial.

Thus, the outcome of our project is two-fold, that is, firstly to gauge

whether this service has been beneficial to all its stakeholders, as well as to get an

insight into the wants of people in context with further increasing the benefits of

this service.



INDEX

TOPICS PAGE NO.

1. About the Company 1

2. Introduction 4

3. Research and Sample Methodology and Design 8

- Research objective 8

- Primary Research 8

- Sampling method 9

- Sample Size 9

- Method of Data Collection 10

4. Limitations of Study 11

5. Analysis of Questionnaire 12

- Customer questionnaire 12

- Employee Questionnaire 27

6. Analysis of Interview with the Managers 36

7. Financial Performance 41

8. Conclusion 45

9. Suggestions 46

Web site visited 47



1. ABOUT THE COMPANY

Union Bank of India (UBI) is one of India's largest state-run banks and is

also listed on the Forbes 2000. It was inaugurated by Mahatma Gandhi. Over the

years Union Bank of India has earned the reputation of being a techno-savvy Bank

and is one of the front runners amongst public sector bank in the field of

technology. It is one of the pioneer public sector banks, which launched Core

Banking Solution in 2002. The Bank's principal activities are to provide

commercial banking services which include merchant banking, direct finance,

infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury

and other related financial services. The Bank operates through 2082 branches in

India. Following is profile snapshot of UBI.

Company’s Vision


Company Profile: Union Bank of India

Ticker: 532477

Exchanges: BOM

2007 Sales: 80,690,000,000

Major Industry: FINANCIAL

Sub Industry: COMMERCIAL BANKS

Country: INDIA

Employees: 25421


To become the Bank of first choice in our chosen areas by building

beneficial and lasting relationship with customers through the process of

Continuous improvement.

UBI, Dadar Branch (SWOT Analysis)

STRENGTH:

Location of the branch.(Commercial cum Residential area )

Good Customer-Employee Relationship

Mutual understanding and good rapport amongst the staff members

(employees).

Good rapport between the Manager and Employees.

Customer Satisfaction.

ATM facility made available 24 hrs.

Long standing branch since year 1959, thus great goodwill in market.

Since it is an old branch it has many customers have their accounts with the

branch since many years.

24 hour ATM facility.

Implementation of BASAL II Norms.

UBI, Dadar Branch is a Core Banking Branch (CBS) i.e. it is connected by

net to other CBS branches.

WEAKNESSES:

Insufficient Staff in branch to carry on 8 to 8 duty.

Most customers feel that there is lack of space in office premises.

Division of staff members into two shifts which increases work load on each

employee due to implementation of 8 to 8 timing in the branch.



Due to various other tasks undertaken by bank, the branch’s focus has

deviated from its original tasks and thus a proper balance between both is

difficult to maintain.

OPPORTUNITIES:

Tie ups with HDFC mutual funds etc.

E-banking services available to the customers can help branch flourish.

Personal Banking Systems including introduction of Credit Cards, Debit

Cards, International Debit Cards.

UBI is a “CASH TREE” member bank. i.e. eleven banks :Bank of India ,

Dena Bank, Indian Bank ,Indian Overseas Bank, Syndicate Bank, United

Bank of India ,Bank of Rajasthan, Karnataka Bank Ltd., Yes Bank,

Dhanalaxmi Bank Ltd. And Union Bank of India has formed an ATM

network of banks.

Low rate of interests for loans like housing loan, education loan, vehicle

loan, etc.

Facilities like RTGS (Real Time Gross Settlement), DMAT, Online

Trading of Shares, International Trading Finance (for global business).

Personal Banking, Internet Banking, Tele Banking, NRI Services offered

by the branch.

THREATS:

Lack of armed security (armed guards on duty only between 9 to 3.30pm). It

is very risky to let customers use their Safe Deposit Lockers after 3.30 PM.

Other Public Sector Banks and Private Sector Banks in the vicinity.

Various strategies of Private Sectors Banks to attract customers.



2. INTRODUCTION

This report is an attempt to get an insight on the impact of increase in

banking hours today. Most PSU banks implemented the concept of 8 to 8 banking-

a twelve hour banking system, more than a year ago. Before we start with the

analysis of what has been the impact of this service, let us understand the reasons

behind its implementation. Following is a list of few reasons considered by these

banks while implementing this service:

Finance Minister’s verdict: The Union Finance Minister P. Chidambaram

asked all nationalized banks, especially urban banks, to function from 8 AM

to 8 PM on all working days to serve different types of customers.

Competition: With private banks like ICICI and PSU banks like Bank of

Baroda already implementing 12 hour banking, it becomes quite essential for

PSU banks like UBI to follow the trend in order to maintain their clientele.

Customer-centered convenience banking : Unlike old days, customers

today are more aware and demand prompt services. Also, they would like to

visit their banks as per their convenience. Thus, this decision is a completely

a customer centric move.

To convey a subtle message : “We care for u (customers)”

Attracting new clientele: A customer may be having an account with a

bank which works as per traditional timings; i.e. 10 AM to 5 PM. He can get

banking facilities even between 8 AM to 10 AM and after 5 PM, by opening

an account with UBI branch which offers twelve hour banking.

After going through the above reasons, we can say that twelve hour banking

is a necessity to survive in the banking industry.



To further prove that no bank today can afford to work as per traditional

timings, I have further prepared this Prisoner’s Dilemma model for UBI.

Note: The numerical figures used in the table are hypothetical. This is done in

order to get a better understanding of the model.

Prisoner’s Dilemma

Competitor’sStrategyTwelve hour banking

Seven hour banking

UBI’sStrategy

Twelve hour banking 1000, 1000 1500, 500Seven hour banking 500, 1500 700, 700

What is prisoner’s dilemma?

It is a situation, under which there are two firms and each firm adopts

its dominant strategy. A dominant strategy is the decision that gives the best result

for either party regardless of action taken by other.

Now, as can be seen in the above table, there are four situations for each firm.

1) Both UBI and competitor firm implement twelve hour banking system: Both

earn Rs.1000 as yearly profit.

2) Both UBI and competitor firm adopt the system of seven hour banking and

both earn just 700 as yearly profit.

3) UBI adopts twelve hour banking and competitor continues with traditional

seven hour banking system. As a result, UBI earns Rs.1500 as profit and

competitor firm earns just Rs.500. The extra income of UBI may be

attributed to customers of competitor opening an account with UBI.



4) Competitor adopts twelve hour banking and UBI continues with

traditional seven hour banking system. As a result, competitor earns Rs.1500

as profit and UBI earns just Rs.500.

Thus, the dominant strategy for both, competitor and UBI is to have a twelve

hour banking system. In a nutshell, no bank can survive without ensuring that its

customers get better facilities than its competitors.

But before we proceed further it is important to note that this service has not

only had impact on customers or on income and expenditure of bank, but also on

other stake holders as well. The diagram below gives an idea about the scope of

this impact on different stakeholders.


8 to 8 Banking

UBI Management Customers UBI Employees

Students Business Housewives, etc.

Sole tradersBig Corporate

Companies Service class


Thus, as can be seen in the above figure, increase in banking hours has had

impact not only on customers, but also on employees, managers and financial

performance of bank. Further this impact has not been same in case of all

customers. While some customers under the business class may have benefited the

most, some of those under the student category may have been hardly affected by

this service. Therefore, through this study, I will also try to throw some light on the

extent of impact on different stakeholders.



3. RESEARCH AND SAMPLE METHODOLOGY AND DESIGN

3.1 Research Objective

To understand the need for increase in banking hours.

To understand the impact of this service on:

The financial performance of UBI, Dadar branch

Industry as a whole

Customers

Employees

To provide suggestions to further increase the benefits of this service.

3.2 Primary Research

The concept of twelve hour banking was introduced by most nationalized

banks almost a year ago. With just one year of its implementation, there has been

lack of sufficient secondary data. Hence, the primary research was conducted by

observing and interviewing customers who visited the bank. They were also

requested to fill a questionnaire to further help us with their responses. This

customer questionnaire was also emailed to certain target audience in order to

cover customers of not only UBI but also those of other banks. This same method

was applied in all the branches I visited. The employees and managers at these

branches were also interviewed. A questionnaire was also given to employees to

fill.

Also, in order to gauge the financial impact of the service at Dadar branch, I

studied the financial statements of the branch.



The data collected was then analysed and the findings were used to facilitate

us in getting an insight about the impact of this new service.

3.3 Sampling Method

3.31: For Customers: The sample would comprise any customer who walked in

during the banking period. In order to cover customers who were more in

habit of internet banking and ATM’s, questionnaire was emailed to them. In

this case, I took help of family and friends. Also, in order to get variety of

responses I made sure that customers from different professions and home

makers were all included in sample.

3.32: For Employees: All those who work at UBI (Dadar branch) were covered.

The sample also includes two employees on an average from all other

branches that I visited.

3.33: For Managers: Managers of all the branches I visited were also interviewed.

3.4 Sample size

3.41: For Customers: The total number of customers who were tracked includes

64 at the Dadar as well other branches of UBI. Also, the customers who

replied to my online questionnaire were 43 . Thus the total sample size for

customers is 107.

3.42: For Employees: The sample includes a total of 35 employees

3.43: For Managers: The sample comprises 4 Managers of all branches I visited.



3.5 METHOD OF DATA COLLECTION

Questionnaire

Questionnaire is a formalized instrument for asking information directly

from the respondent and concerning behavior, demographic characteristics, level of

knowledge and/or attitudes, beliefs and feelings. I have collected the primary data

through questionnaires administered to our target audience. Structured and direct

questionnaires were framed as they produce more reliable results than unstructured

questionnaires. It reduces the chances for the interviewer to influence results

through different phrasing of questions or different judgment of answers. In order

to involve all types of respondents these questionnaires were emailed as well as

given to respondents in the bank. Both the questionnaires, i.e. for employees and

customers included both optional and open ended questions. In this case I did not

disclose the object of the survey since I felt that if the respondent comes to know

the object of the survey, he may not be objective in giving the necess information

and, as such, the purpose of taking the research would be defeated. I was therefore,

very particular not to divulge the purpose of the investigation.

Interview :

I selected structured direct interview. The interview was a one-to-one or

face-to-face interview or a personal interview. The response of the respondents is

better and even personal questions can be asked in a convenient manner, which

improves the quality of the research work.



4. LIMITATIONS OF THE STUDY

Most employees which were interviewed had a bias against increase in the

working hours. This is mainly because of the usual human tendency to resist

change. Such attitude created difficulties in extracting correct

information from them.

Some customers were not interested in sharing their experiences due to

limitation of time and similar reasons.

The results are based on the assumption that the information provided by

respondents is correct and true.

The lack of secondary data created difficulties in getting research help.

Sometimes the customers felt conscious of the fact that they were being

interviewed as they were not sure whether to reply to my queries or not.

Certain information like that of total vouchers for year 2005 was not

available. This created problems in estimating the impact on the

performance of the Dadar branch.

It has been just about one year since implementation of twelve hour banking

in most branches of UBI. This period is too short to understand what could

have been the financial impact of this decision.

The Balance Sheet of the UBI, Dadar Branch does not show the exclusive

values of the Advances and Loans received by the customers of the Dadar

branch. The disbursement of Advances is done through Central Processing

Center which is at Dadar branch.

Hence, all advances disbursed by all other UBI branches of Mumbai are

recorded in Dadar branch’s Balance Sheet.



5. ANALYSIS OF THE QUESTIONNAIRES

5.1 CUSTOMER QUESTIONNAIRE:

The questionnaire is a combination of open ended, single option and

multiple option questions. It has been divided into two sections. The first section

mainly tries to find out responses directly related to their visit to their bank. The

second section aims at finding out if customers find use of e-banking, tele-banking,

ATMs more convenient rather than visiting their bank. It also aims to find out the

popularity and flexibility of customers with plastic money. Following is the detail

analysis of the responses to these questions.

Age group of sample:

Age Group

27%

49%

24%

Below 30 Between 30 to 60 Above 60

The age was asked in order to determine the age group of the respondents to

separate them into different groups.

This helps in finding out the percentage of senior citizens. During the

observation, it was noticed that the majority customers coming into the bank

during early morning hours were pensioners.



Occupation

Occupation

20%

7%

51%

13%9%

Student Housewife Service Business Retired

From the above chart we see that about 50 % of the customers visiting the

bank are service class. This class also includes the people who work under some

sole trader or firm. Many of them are sent by their bosses/superiors to bank to

handle the banking work of their shop. This means that those in service class may

not have visited the bank for their own work, but rather for the work of shop they

work for. Also, it was observed that the respondents in this category usually came

after 10.30 AM, as that is the usual time of shops opening. Students, who formed

the next category, included those students who visited the bank to get Demand

Drafts for fees payment, etc. Also, this category includes those students who are

not very conversant with internet banking and ATMs.

The respondents under the business category included those who had some

business unit of their own. As per the observation, the respondents under this

category usually visited the bank before 10 AM. The reason cited by them was that

it is convenient to finish banking work before going to work. Another category

was that of housewives. The only pattern that I observed in this category was that

they visited the bank usually between 12 PM to 7 PM. The last category comprises

of the senior retired citizens who visited the bank to collect their pension. These



customers usually visited the bank as early as 8.30 AM. The reason they cited was

that there were less chances of waiting in queue as not many customers visiting the

bank between 8.30 AM and 9.30 AM.

As mentioned earlier, the questionnaires are into two sections. The first

section mainly deals with the questions which are directly related to the visit of

respondents to their bank. Following is the analysis of the first section.

SECTION I

What type of accounts you have in this/these banks?

Account holders

0

20

40

60

80

Types of Accounts

Nu

mb

er

Series1 51 68 8 12

Current Savings Pension Fixed

As can be seen in the above chart, 51 of the respondents hold a current

account. Of this 51, majority respondents belong to the Dadar Branch and some of

them also hold savings account with the branch. The UBI, Dadar branch is in a

commercial cum residential area. From small shop keepers to big showroom

owners, almost all have a current account with the branch. Also, most of the

employees working in these shops and showrooms hold a saving account with the



branch. As this question is a multiple choice question, the respondents had the

option of marking all the types of account they hold.

What is the main reason that you typically visit your bank branch

(please choose the single most important reason)?

Reasons to visit bank

40%

4%8%32%

16%

To make deposit

To get advice for investment decisions

To enquire about balance

To withdraw cash

Other

As can be seen from the above pie chart, majority customers visit a bank for

deposits and withdrawals. Majority of these respondents belong to business class

who deposit their daily earnings into bank and most of their transactions are

through bank.

Very few customers visit bank to get advice with investment decisions. In

option of other most people said they visited bank for pass book update, for

making drafts and for bill payments. This question aims at finding out for which

services customers mainly visit a bank branch.



What are your bank’s working hours?

Bank hours

52%

26%

22%

8 AM to 8 PM 9 AM to 5 PM Don’t know

Among the respondents, 52 % said that their bank functions for twelve

hours, i.e. 8 AM to 8 PM. But, what was most surprising that as many as 22 % did

not know as to what are their bank’s timings. Many of them were customers of

UBI. This is a very important point. Most UBI branches had implemented twelve

hour banking service a year ago, but still not all customers were aware about it.

This may be because of lack of proper promotion of this service. Many customers

were least bothered about the increase in timings and felt there was not much

improvement in bank’s services.

Your bank is located near,

Bank Location

51%42%

7%

Your office area

Your residential area

Neither near your office area nor near your residential area



The above questions aims to find out the location of bank and how close the

customer is to his/her bank. As per the observation many of the shopkeepers in

Dadar (W) have their account with UBI Dadar branch. Dadar being a central

location attracts many customers from nearby areas as well.

Such situation is likely to create rush. But the twelve hour banking has

prevented too much rush at any particular point of time and hence reduced pressure

on employees as well as customers. Also, in case of bank being closer to

customer’s residential area provides flexibility to customers (especially

housewives and students) to visit the bank as per their convenience. Hence, now

customers can take advantage of their bank operating for more hours.

How frequently you visit your bank?

Visit Bank

35%

9%15%

41%

Everyday Every alternate day

Once a week Once/twice every month

The above chart aims to determine how frequently customers visit their

bank. As can be seen from the chart, 41% respondents visit their bank once or

twice in a month and 15 % visit bank once a week.

The major reason cited by these respondents for not visiting bank frequently

is availability of options like ATMs, e-banking and telephone banking.



These respondents visited their bank as per their convenience and

requirement. Rest 44% respondents included those businessmen who visit their

bank everyday or every alternate day. But again most of the respondents in this

44% visit the bank between 10 AM to 2 PM.

In your bank, you….

Service time

39%

61%

always have to wait in long Queues to get service

don’t need to wait much, as services are prompt.

The above chart aims to determine if the increase in banking hours has

reduced rush of customers at any particular point of time. 61% respondents say that

they don’t need to wait much now. Among these 61% respondents, most

complimented the bank for having increased the banking hours. Few of their

statements are as under:

"Previously it was a case of waiting long for your own money. This new

service is customer friendly and efficient."

“Earlier we had to stand in long queues, but now we are spared that. This is a

positive change.”

But, 39% respondents say they always have to wait in queue to get service.

Of these 39%, most of the respondents visit the bank between 10 AM to 2 PM.

This indicates that despite increase in banking hours, many respondents do not take



advantage of service. Apparently, the reason behind this is that most shops open

after 10 AM and cheque collection period is till 12 PM.

What are the various problems you face while visiting your bank? (For

eg. Slow service, etc.)?

This question was asked to get feedback from respondents about various

problems faced by them.

The responses include not only those problems that should had reduced after

increase in banking hours, but also those problems which are directly related to the

performance of bank. It is highly important that the services provided by bank are

utmost professional and directed towards customer satisfaction. Increase in

banking hours will be most profitable only when such professional environment is

ensured.

Following is the list of few responses:

1) Many times printing machine at bank is not functioning.

2) New account can not be opened after 5 PM. What is the use of bank being

open till 8 PM

3) I deposited cash at 9.30 AM in my bank account. At 10.30 AM, I went to an

ATM machine to withdraw some money. To my surprise, there was no

change in my balance!

4) The cheque clearing time is very limited. With increase in banking hours,

this facility should also be extended for more hours.

5) Sometimes the person responsible to provide a certain service is not on his

desk. In such case, nobody else comes to the aid of customer.

6) Many times employees keep chatting among themselves, not realizing that

the customer wants his work to be done as soon as possible. Also, customers



are waiting in the queue get irritated because of this unprofessional attitude

of bank officers.

7) I had asked the bank to issue me the cheque book, almost 3 months back. I

have still not received the cheque books. Besides, there has been no proper

explanation from the bank officials for such negligence.

8) There should be separate counter for services like getting pass book updated.

Note: The above list may include some responses which are beyond

management’s control. For e.g. limited cheque clearing time

SECTION II

Do you use Internet Banking services?

e-banking

50%50%

Yes No

As can be seen from the above chart, 50% of the respondents make use of

internet banking services. It is a fact that today more and more customers are aware

about use of e-banking services and this trend will continue in future. There is high

probability that in near future, more and more people would prefer internet banking

to traditional banking. Under such condition, twelve hour banking facility may not

be of much use as customers would not visit their bank too often.



Do you find Internet Banking more convenient rather than visiting your

bank for services?

e-convinience

30%

9%11%

50%

Yes No Cant Say NA

As mentioned earlier, customers find e-banking more convenient than

visiting their bank. This is evident from the fact that of the 50% using e-banking

services, 30% find the service more convenient than visiting their bank.

What banking services do you use which your Internet bank offers?

(Please check all you are currently using)?

e-services

7% 1%1% 9%

36%4%

25%

15% 2%0%

Seeking product and rateinformation

Calculate loan paymentinformation

Download loanapplications

Download personal banktransaction activity

Check balances on-line

Apply for consumer loansor credit cards online

Inter-account transfers

On-line bill payments



The above chart determines the different types of e-banking services that

customers use. About 36% said they used it to check their balance online and 25%

of them use it for inter account transfers. Again, this bolsters my point that many

customers find e-banking more convenient than traditional banking for certain

transactions

Do you use Telephone banking services?

As per the interview, 73% respondents do not use telephone banking facility.

This can be attributed to the fact that there is not much awareness about the

facility. Many of the respondents did not have any idea if their bank provides this

facility.

How frequently do you use telephone banking services per month (for

example, balance inquiry, fund transfer between accounts)?

Tele-Banking Frequency

27%

27%4%

4%

38%

Less than 1 1 to 3 times 3 to 8 times 8 to 12 times over 12 times

As can be seen from the above chart, only about 38% of respondents who

use telephone banking services use it frequently. Apparently, even those using

telephone banking services are not very comfortable with its usage. Thus, we can



say that telephone banking, until now, has not posed any competition threat to

traditional banking methods.

Do you use Automated Teller Machine (ATM) facility of your bank?

ATM

83%

17%

Yes No

The above chart shows that 83% of respondents use ATM facility. The 24

hour availability of the ATM service and user friendly procedure makes it popular

among all customers alike. The fact that people prefer ATMs more than visiting

the bank is further bolstered by the following comment of a customer:

"For emergency services like cheque collection, I think it is a good

proposition to keep the bank's branch open till late evening. But with the 24-hour

ATMs and also Internet banking, I don't feel the need for extended hours of

banking at every branch. Certain branches at key commercial areas will be very

helpful."

Also, most customers prefer using ATM service for most of their

transactions as this helps them in following ways:

a) They usually don’t have to wait in long queues.

b) If it takes 5-7 minutes to withdraw cash at bank counter, it takes almost less

than 2 minutes to withdraw from an ATM machine.



c) (This has been verified by observing 5 customers and recording time

required for transactions)

d) ATM machines can be operated at any time of the day. One can withdraw

money even at 2 AM, in case of an emergency.

How frequently do you use an ATM?

ATM Frequency

3% 10%

74%

13%

Everyday Every alternate day

Once every week Once/twice a month

As can be seen in the above chart, 74% respondents use ATM service at

least once every week. Also, these respondents were further of the opinion that if

all banking transactions could be done through ATM, they will prefer ATM rather

than visiting the bank. Again, under such conditions, increase in banking hours has

not had much impact on customers who use ATM facilities.

What are the difficulties that you face in using ATM/ Tele-banking and

internet banking services?

The above question was asked in order to know the limitations of ATMs,

internet banking and telephone banking. Although, these facilities form an

important part of banking today, their limitations ensure that customers visit their



bank. This point is further bolstered by the following interesting comments made

by customers.

"Even though it is now possible to draw money through ATMs and purchase

demand drafts through the Internet, the increased working hours can improve use

of facilities like safe deposit lockers, which can be accessed only at the bank.

There is a monetary limit imposed for drawing money from ATMs and higher

amounts can be withdrawn only from a bank. Other non-banking operations like

insurance advisory services can be possible in the extra hours. The longer working

hours are particularly beneficial to those who do not access the Internet."

“We had to visit our branch at 7.30 p.m to draw some bulk cash - for making

some payments in a land deal the next day (more than what was permitted by the

ATM). Thankfully, banks are open longer now and we didn't face a problem."

Also, following is the list of few common problems faced by customers

while using these services:

a) AT M machine not working.

b) Only up to 15000 can be withdrawn from the ATM machine in one

transaction.

c) Many times, while using Internet banking, either the bank site is not

accessible or links are not working.

d) Internet banking is quite complicated for new users.

e) All these services are impersonal, i.e., one will only communicate by email

or telephone or operate ATM machine. Those who prefer a personal service

and face to face communication this banking may not work for them.

f) While providers work very hard to keep their sites up and running 24/7,

there is no guarantee a site will not crash. To make sure you can still carry

out any banking you need make sure you know your provider’s customer

services phone number.



Any suggestions related to timings and services of your bank?

Following is the list of some suggestions given by customers:

a) We are happy that the bank is open for twelve hour now. This gives

flexibility in visiting the bank at any time of day. Keep it up!

b) Although banking time has been increased, employees behave in a typical

PSU employee manner. Unless the attitude of professionalism sets in,

customers will always keep complaining about bank and its services. This

negative word of mouth publicity will eventually lead to many customers

opting for private banks.

c) Although banking hours have increased, infrastructure remains the same.

There is just one printing machine for making pass book entries, and many

times that too is out of order.

d) There should be more counters for different kind of services and senior

citizens should get proper assistance.

Now after having studied the customer responses, we move on to analyse

the responses of the other stakeholders- the employees.



5.2 EMPLOYEE QUESTIONNAIRE

This questionnaire is a combination of open ended and single option and

questions. It has been divided into two sections. The first section mainly tries to

find out responses directly related to the employee’s department. The second

section aims at finding out responses related to bank as a whole. Following is the

detail analysis of the responses to these questions.

Do you think that 12 hour banking has benefited your department?

Employee opinion

21%

75%

4%

Yes No Can't Say

As can be seen from the above chart, 75% employees are of the

opinion that increase in banking hours has not benefited their department. The

reasons they gave are as under:

a) The department does not provide services for twelve hours.

b) Customers to the department have not increase. Because of increased hours

customers now visit as per their convenience.

c) There has been no increase in the income of department.

d) Not many customers come after 5 PM.

e) On the other hand 21% say that there department has definitely benefited

because of increase in working hours.



Does your department provide services for entire 12 hours?

Department timings

57%

43%

Yes No

As can be seen from the above chart, 57% employees work in those departments

which do not provide services for complete 12 hours. These departments include

clearing department, advances department, deposit department, loan department,

pass book department and few more. Many customers feel that it does not make

sense if the bank is open for extra hours but only for few services. But, what is

more important to note that most of the branches are under-staffed for twelve hour

banking. Same set of people working for twelve hours at stretch, may lead to

inefficiency at work.

Has extended hours of banking increased the number of customers to

your Department?

As can be seen in the above chart, 59% employees believe that extended

working hours have not increased the customers to their department. But now same

number of customers is spread through out the whole twelve hours. This may have

proved beneficial for some departments as this definitely reduces pressure of

handling too many customers together. But the flipside is that, customers coming

in as per their convenience also lead to idle time in certain departments. On the



other hand, 23% respondents believe that increased working hours has definitely

increased the number of customers to their department.

Kindly mention which days of the week there is most rush. Why?

This question was asked in order to know as to which days of the week,

employees are busy for whole twelve hours. The reply of most employees, as

expected, was Monday. Sunday, being a holiday, creates a lot of rush on Mondays.

In case of public holidays also, there was heavy rush on a day before and after the

holiday. Also, Saturday was also one day when there was most rush. This is

because Saturday is the last working day of week and the bank also closes 5 PM.

But, again, as per my observation rush is always more between 10 AM to 5 PM.

Do majority customers come as per traditional timings of 9 AM to

5PM?

Customer time

86%

9% 5%

Yes No Can't Say

As I mentioned earlier, most customers visit their bank between 10 AM to 5

PM. As per my observations, between 8 AM to 9 AM and after 5 PM, only few

customers visit the bank. As many as 86% employees agree with my observation.

This seems to be a major point of concern. If the employees have to sit idle for

long periods, it will only lead to inefficiency and frustration. Also, if the bank is



open till 8 PM and there are not many customers walking in after 5 PM, it is only

increasing the expenditure of bank.

SECTION III

Do you think your customers are more satisfied now, as there is

flexibility in visiting the branch due to increase in banking hours?

Customer satisfaction

45%

13%

25%

17%

Yes No Can't Say No change in cuctomer's response

As many as 45% employees believe that customers are more satisfied now.

Many customers had personally expressed this feeling to the employees. The fact

that they have more flexibility in visiting their bank has increased customers’

satisfaction. But on the other hand, 30% employees said there was no change in

customer satisfaction.

This was mainly because many times customers walk in after the closing

time of the department, they want service from. In such case, they get disappointed

and usually have one thing to say- “What is the use of an 8 to 8 bank, if it can’t

provide service!”



Do you feel that this service has increased the branch expenses and

hence is putting extra burden on the branch?

Branch expenditure

83%

13% 4%

Yes No Can't Say

As can be seen in the above chart, 83% employees believe that 8 to 8

banking has increased more expenses than income. They were of the opinion that

the electricity expenses and administrative expenses must have increased as the

branch was now working for about five extra hours. Also, with not much increase

in customers and business as such, they felt this was proving to be burden on their

branch.

Which banking functions/products have benefited the most because of

this service?

Most employees said that there was increase in cash transactions- deposits,

withdrawals remittances, etc. Also, there was increase in cheque related

transactions. Customers for Demand drafts, Savings Account, Current Account,

Pension account, bill payment, etc. have increased. Not much difference has been

noted for other services.



Has the extended hours of banking increased the number of customers

to the branch?

Client increase

22%

65%

13%

Yes No Can't Say

In the first section, I had asked the employees if there was increase in the

number of customers to their department, about 60% replied in negative. Again,

65% employees believe that there has been no increase in the number of customers

to their branch because of extended hours of banking. 22% employees believe that

there has been some increase in customers coming into the branch.

Those among the 65% class said that customers now walk in as per their

convenience. Hence, now the existing customers were distributed through out the

day. But, there was no increase in the number of customers to the branch.

Has increase in banking hours increased the service time to customers?

Service time

48%

43%

9%

Yes No Can't Say



As can be seen in the above graph, 48% employees believe that increase in

banking hours has increased the service time to customers. They were of the

opinion that increased working hours make them feel tired towards the end of the

day. They try their best to stick to standards, but increased working hours lead to

loss of concentration and eventually lead to increase in service time. 43%

respondents believe that there has been no increase in service time. But, it must be

noted that most employees among these 43% work in those department that do not

provide services for full twelve hours.

With ATM’s / Internet Banking made available to customers, is there a

need for this service of 12 hour banking?

13%

83%

4%

Yes No Can't Say

As can be seen in the above chart, 83% employees believe that availability

of ATM and internet facility nullifies the need for twelve hour banking. Most have

already pointed out that customers prefer using these facilities to visiting their

bank. Also, after 5 PM there are not many customers walking into the bank. This is

mainly because a lot of transactions can be managed through their ATM or internet

banking facility. 13% employees are of the opinion that although customers have

the facility of internet banking and ATMs today, a lot of transactions can be done

only at the bank premises. They believe that by being open for twelve hours they



are sending a message to the customer that they care about the customer and

customer satisfaction is their top priority.

Given a option, which one will you prefer of the following:

i. Working at a 9AM to 5 PM branch at current salary.

ii. Working at a 8 AM to 8 PM branch at current salary.

As can be seen from the above charts, most employees would like to work in

a 9 AM to 5 PM branch. About 60% say that they would not mind working in a 8

AM to 8 PM branch, only if they are paid sufficient compensation for working

extra hours. Most employees believe that the compensation

currently paid is negligible. As per my observation, most employees do not want

to work in a twelve hour branch. Following reasons give explanation for such

behaviour. :

a) Change: The word speaks for itself. As it is said that government employees

are always wary to changes. Sadly this is true in case of UBI employees

also.

b) Familial reasons: Working in a twelve hour branch can be very taxing on a

family person. These employees leave early from home and reach late. They

get hardly any time to spend with their family.


9 to 5 branch 8 to 8 branch

Series1 21 3

21

3

Employee preference

Series1

Employee preference

1014

Series1

Series1 10 14

9 to 5 (current salary) 8 to 8 (higher salary)


c) Motivation: Monitory incentives are inadequate.

Your suggestions:

Following is the list of few suggestions given by employees:

a) Staff strength should be increased in order to proper delivery of services.

b) Armed security should be there till closing of bank.

c) There should be two batches of staff to avoid work overload on same set of

employees.

d) The compensation paid to employees working in a twelve hour branch

should be adequate.

After having studied the responses of employees, we further study what

managers had to say about twelve hour banking at their branches. I and my

colleague interviewed the managers of three branches, where 8 to 8 banking has

been implemented. We also interviewed a manager of 9 to 5 branch, in order get

his opinion on twelve our banking. Following is the list of various questions asked

to these managers and the analysis of their responses for the same.



6. ANALYSIS OF INTERVIEW WITH MANAGERS

Why do you think 8 to 8 was implemented?

Following were few responses to above questions:

a) Basically 8 to 8 was implemented due to finance minister’s recommendation

that all nationalized banks should function from 8 AM to 8 PM on all

working days.

b) Emergence of Private Banks has led to increase in competition and the

various strategies like implementation of 8 to 8 by these Banks has forced

the nationalized banks to follow the trend.

What are your views about this service?

There was a mixed response to the above question. Most managers said that

the service had increased more expenses than income of branch. They felt that the

service can be helpful provided that there are as many customers visiting the

branch. If only few customers walk in the bank, during these additional hours it

causes frustration among subordinates. On the other hand, when customers are

less, employees can utilize the time for clearing of pending work.

Do you think your branch requires extended hours of working? Why?

Few managers were of the opinion that their branch does not require 8 to 8

banking. They said that there were not enough customers visiting the branch during

the additional hours. Hence there was not enough increase in business. On the

other hand, few were of the opinion that their branch needed an increase in banking

hours. Their branches are at prime locations of city and extended hours of banking

mean more convenience to customers which eventually will lead to more business.



Also it was possible for the manager now to ask an employee to complete certain

task after 5 pm which wasn’t possible in traditional timings.

What should be ideal hours of working for your branch?

As mentioned in the above question few managers believe that 8 to 8 timing

is not having positive impact on their branch. They believe that ideal time for their

branch should be 9 AM to 5 PM. This will not only ensure that bank employees do

not feel overloaded with work but also it will ensure that work is done as per

standards. While on the other hand, few managers believe that 8 to 8 timing is most

ideal to improve business and help them compete not only with other PSU banks

but also the private players.

Has your branch benefited from this? Have the profits of branch

increased? What has been the impact on expenditures?

All managers were of the opinion that their branch can only benefit if more

customers walk into the bank. The more customers are satisfied, the more is the benefit to

the bank. But it is also important to note what the location of branch is. A commercial

cum residential area is an ideal location for an 8 to 8 branch. Here, office goers can opt to

visit their branch before leaving for office in the morning and after coming back from

work. Also, those in nearby residential area can visit branch as per their convenience.

But, in an area having shops and showrooms only, there is hardly any possibility of

customers visiting the bank during early morning or late evening. Hence, those branches

which are located at prime locations have an opportunity to increase business. However,

all managers also feel that the profits their branch has made in the past year can not be

directly attributed to increase in banking hours. Also, they all agree that expenses of the

branch have increased. This is because all electric appliances are operating throughout

the twelve hours. Also, there has been increase in administrative expenses.



Do your subordinates complain about these new timings? How hard it is to

keep employees motivated? What should be the compensation to employees

for working for extra hours? Should employees be working in shifts or for

longer hours?

All managers told us that their subordinates usually do not complain about the new

timings. This is because not all employees have to work for full twelve hours. But there

was definitely some frustration among the employees. The reasons could be work

overload, frustration due to disruption in social and family life, frustration due to being

idle when there were no customers and last but not the least typical resistance to change.

Few managers were of the opinion that it is hard to motivate employees to accept

this change happily because monitory incentives were just not adequate. On the other

hand, one manager said that money should not be the only motivator.

Employees should realize that bank has always worked for their welfare and it is

time that the employees paid back. The manager was of the opinion that many employees

had developed a complaining attitude and were always resistant to change. This attitude

can be improved by proper orientation of service-its pros and by proper counseling of

employees.

All managers were of the opinion that only selected services should be provided

through out the day and for the rest there should be fixed timings. Also, for departments

working for complete twelve hours, employees should work in two shifts. This will

ensure that standards are maintained and employees are also satisfied.

Has there been reduction in complaints from customers?

Most managers were of the opinion that complaints from customers might have

increased. This is because; more exposure leads to increase to complaints. Also, many of

these problems may be of uncontrollable nature. Various services like opening of

accounts, issuing drafts etc cannot be done for complete 12 hours. Such services can only



be provided during 10 to 4 timings. Customers get annoyed when they visit their bank

and can’t get the service they want. Also, this facility was implemented just about one

year ago and it is quite natural that it will take time to adjust the systems as per new

requirements.

How this has increased your responsibilities?

Being managers of an 8 to 8 branch is not an easy task. There are customers who

are ever complaining and there are subordinates who are not very happy working for

extra hours. It is very important that managers are always motivating the employees and

also make sure that customers get prompt service. The extended hours of banking have

definitely increased their responsibilities. Also, there is extra responsibility that business

of the branch increases.

Has there been reduction in complaints from customers?

Most managers were of the opinion that complaints from customers might have

increased. This is because; more exposure leads to increase to complaints. Also, many of

these problems may be of uncontrollable nature. Various services like opening of

accounts, issuing drafts etc cannot be done for complete 12 hours. Such services can only

be provided during 10 to 4 timings. Customers get annoyed when they visit their bank

and can’t get the service they want. Also, this facility was implemented just about one

year ago and it is quite natural that it will take time to adjust the systems as per new

requirements.



Which type of customers have benefited the most, individual/ sole

trader or corporate?

Both small shop owners and corporate companies have been benefited due to

increase in banking hours. This has given them flexibility to visit the branch as per

their convenience. Also, individuals like pensioners, students and housewives have

been benefited by the service.

Your suggestions regarding 12 Hrs Banking:

Following is a list of few suggestions made by these managers:

a) Young and more professional staff will help in better implementation of the twelve

hour banking concept.

b) Customers’ presence is most important in 8 to8 branch. While implementing 8 to8

banking, it is very important to analyse whether branch requires extended hours of

working.

c) In those branches where frequency of the customers visiting the branch is high and in

case of branch being located in a residential cum commercial area, 8 to 8 banking

should be implemented. But branches were there are less customers, 8 to 8 banking

will only lead to loss due to increase in various expenses like electricity charges,

telephone bills, etc. Thus 12 hours can be beneficial only to few selected branches.

d) To ensure proper delivery of services, staff strength must be adequate.

e) Since ATM and internet banking are made available to customers, there is no need to

increase the banking hours.



7. FINANCIAL PERFORMANCE

We have analysed the responses of various stake holders, but in order to

reach proper conclusion we needed to analyse the financial performance of UBI,

Dadar branch. The twelve hour banking was implemented at the start of year 2006.

Hence, the analysis has been made by comparing two years- year 2005 and 2006.

Note: All figures are in Rs. Crores.

Total expenditure:

Total Expenditure

0

1

2

3

4

5

Total Expenditure 3.457 0.839 2.01 2.888 4.198 0.869 2.135 3.136 4.628

March '05

June '05

Sep '05 Dec '05March

'06June '06


'07

As can be seen from the above chart, there is a consistency in trend of

expenditure. The total expenditure increases in both the year after the month of

June and keeps increasing till March and then falls again for next three months.

Total expenditure was Rs.10.504 Crores in year 2005, while in 2006 it was

Rs.10.768 Crores. This implies that there has been an increase of about 27 lakhs. It

should be noted that many employees had pointed out that total expenditure has

increased mainly as a result of electricity expenses.



Hence, next we analyse the electricity expenditures.

Electricity expenditure:

Electricity Expenses

0

0.1

0.2

0.3

0.4

0.5

0.6

Electricity Expenses 0.081 0.124 0.216 0.225 0.376 0.01 0.215 0.035 0.489

March '05

June '05

Sep '05

Dec '05

March '06

June '06

Sep '06

Dec '06

March '07

As I had mentioned before, many employees believe that the electricity

expenses must have increased manifolds. They said that this was because all

electric appliances in the bank were now operating for twelve hours. The electricity

expenses in year 2005 were about Rs.64, 60,000 and that in year 2006 were about

Rs.63, 60,000. This means that there has been reduction of Rs. 100, 000. But, it

should also be noted that electricity expenses have sharply risen since December

2006 and in fact peaked as high as 50 lakhs approximately.

Total Deposits:

Total Deposits

0

10

20

30

40

50

60

70

80

90

Total Deposits 68.16 69.357 72.236 72.41 72.21 76.01 78.459 72.057 47.142

March '05

June '05 Sep '05 Dec '05March

'06June '06 Sep '06 Dec '06

March '07



As can be seen from the above chart, total deposits for year 2005 were

Rs.282.16 Crores and that for year 2006 were Rs.298.76 Crores. This implies there

has been an increase of Rs.16.6 Crores within the first year of implementation of 8

to 8 banking. Quite a few people have opened their savings and current accounts

with Dadar branch after the implementation of twelve hour banking. This may be

because the banks they already had accounts with, do not provide this service.

Hence, this increase in deposits may be attributed to 8 to 8 banking system, at least

to certain extent

Total Income:

Total Income

0

2

4

6

8

Total Income 4.445 0.315 2.604 2.9357 5.177 0.373 2.825 3.24 6.11

March '05

June '05


'06June '06


'07

The total income for year 2005 was Rs. 10.2997 Crores and in the year 2006

it was Rs 11.615 Crores. This implies an increase of about 1.5 crore. We can not

attribute, with surety, this rise in income to increase in bank timings as there can be

other reasons as well. In order to further understand if this rise could have been

because of 8 to 8 banking, we analyse the profits of the branch.



Total Profit:

Total Profit

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Total Profit 0.9882 0.9792 1.48

March '05 March '06 March '07

The twelve hour banking was introduced in the year 2006 at Dadar branch.

Hence, here we compare the profits of year 2005-06 and 2006-07. As can be seen

in the above chart, there has been a phenomenal increase of about Rs. 50 Lakhs in

profits in the year 2006-07 as compared to previous year. Now, saying that the

phenomenal jump of profit is because of increase in bank hours, may be lacking

proper evidence. But again, it can be seen that there is not much difference in the

profits of year 2004-05 and year 2005-06. In both these years, bank was

functioning for seven hours.



8. CONCLUSION

There is no doubt that within just one year of its implementation, 8 to 8

banking has had quite a significant impact on employees, management, income,

expenditures as well as on customers of the bank. It has not only given UBI a fair

chance to compete with the other PSU banks but also to counter competition from

private players. While many employees are not very happy because of extended

hours of working, customers felt that the facility gave them flexibility in visiting

the branch. Customers like office goers, housewives, pensioners, students have

benefited the most because of increased banking hours. On the other hand, not

much difference has been noted among shop owners and businessmen. Though

many customers are happy that banking hours have increased, they want that all

services should be provided. Most employees are unhappy to work for extended

hours as they are not satisfied with the current compensation scheme. Although, 8

to 8 banking helps UBI to counter competition from other banks, it faces internal

competition from facilities like internet banking and telephone banking. ATM,

internet banking and telephone banking provide an option to customers for not

visiting their bank. A customer not visiting their bank leads to idle time and this

increases frustration of employees. As far as financial performance is concerned,

there has been substantial increase in the profits of the Dadar branch. But, in order

to attribute this increase in profits to 8 to 8 banking, we need to study other factors

as well. Expenditures have definitely increased to certain extent. This is because

more working hours means higher electricity and administrative expenses.



9. SUGGESTIONS

Based on the above study, following are few suggestions that will help UBI

in making 8 to 8 banking more beneficial.

a) 8 to 8 banking provide flexibility and convenience to customers. Financial

results may not be very inspiring in the beginning, but it will definitely

prove beneficial in long term. Therefore, 8 to 8 banking should be continued.

b) Before implementing 8 to 8 banking, proper analysis of the branch should be

done to ensure that branch requires extended hours of working.

c) Employees should be properly guided and motivated to work for extended

hours. There should be provision for their consultancy and their grievances

should be properly addressed.

d) Staff strength should be adequate for proper delivery of services.

e) UBI should try and increase awareness of its services and their timings

among its customers.

f) Armed security should be present in the bank for complete twelve hours.

g) Banks should open extra counters for services like Pension accounts and

pass book updating.

h) Machinery like printers and computers should be in proper working

condition.

i) Another alternative to twelve hour banking can be seven hour banking for all

seven days. This will definitely help in attracting a lot of customers.



WEBSITE VISITED

a) http://www.unionbankofindia.co.in/

b) http://www.hinduonnet.com/thehindu/

c) http://www.blonnet.com/

d) http://www.bhg.com/


Documents

8 to 8 Banking