Upload
ramakrishnan
View
223
Download
0
Embed Size (px)
Citation preview
7/28/2019 Indian Bank - All Chapters
1/109
CHAPTER I
INTRODUCTION AND DESIGN OF THE STUDY
1.1 INTRODUCTION
ORIGIN OF BANK
The origin of the word bank in the modern sense, to the German
word Bank which mean, heap or mound or joint stock fund. From this, the
Italian word Banco meaning heap of money was coined.
Some people have the opinion that the word bank is derived from
the French words bancus or banque with means a bench. Initially, the
bankers the Jews in Lombardy, transacted their business on benches in the
market place and the bench resembled the banking counter. If a banker
failed, his banque (bench) was broken up by the people, hence the word
bankrupt has come. In simple terms bankrupt means a person who has lost
all his money, wealth or financial resources.
S.No Pronunciation Country
1 Bank German (Joint stock fund)
2 Banco Italian (Heap of money)
3 Bancus /
Banque
French (Bench/chest a place where valuable
are kept)4 Bank English (Common meaning prevalent today
i.e., as an institution accepting money as deposit for
lending)
BANKING
1
7/28/2019 Indian Bank - All Chapters
2/109
Meaning
A bank is an institution, which deals with money and credit. This
bank is an intermediary, which handles other peoples money both for theiradvantage and to its own profit.
Definition
Dr.L.Hart, says that the bankers as One who in the ordinary course of
business honours cheques drawn upon him by persons from and for whom he
receives money on current accounts.
Sir John Paget says that, No person or body corporate otherwise can
be a banker who does not,
Take deposit accounts
Take current accounts
Issue and pay cheques and
Collect cheques
for his customers.
BANKER
A person who is doing the banking business is called a Banker. A
banker must be a man of wisdom. He deals with others money but with his
own mental facilities. A banker is not only acting as a depository agent but
also as a Depository of Financial Advices.
CUSTOMER
2
7/28/2019 Indian Bank - All Chapters
3/109
The term customer of a bank has not been defined by any law. As
per the views of sir John paget, to constitute a customer there must some
negotiable course or habit of dealing in the nature of regular banking
business. According to this definition, to constitute a customer of a bank, a
person has to satisfy the following conditions.
a. There should be a habit of dealing between him and the bank.
b. The transaction should be in the nature of regular banking business
i.e., frequency of transactions should be there.
FEATURES OF BANKING
1. DEALING IN MONEY
The banks accept deposits from the public and advancing them as
loans to the needy people. The deposits may be of different types current,
fixed, saving, etc., accounts accepted on various terms and conditions.
2. DEPOSITS MUST BE WITHDRAWABLE
The deposits made by the public can be withdrawable by cheques,
draft or otherwise, i.e., the bank issue and pay cheques. The deposits areusually withdrawable on demand.
3. DEALING WITH CREDIT
3
7/28/2019 Indian Bank - All Chapters
4/109
The banks are institutions that can create credit i.e., creation of
additional money for lending. Thus, creation of credit is the unique
feature of banking.
4. COMMERCIAL IN NATURE
Since all of the banking functions are carried on with the aim of
making profit, it is regarded as a commercial institution.
5. NATURE OF AGENT
Besides the basic functions of accepting deposits and lending money
as loans, banks posses the character of an agent because of its various agency
service.
CLASSIFICATION OF BANKS
The banking Institution forms an indispensable part in a modern
developing society. They perform varied function to meet the various
sections of the society. On the basis of the function performed the banks can
be classified in to the following types.
1. Commercial Banks
4
7/28/2019 Indian Bank - All Chapters
5/109
The commercial banks mobilize deposit from the public, which are
repayable on demand or at short notice. They lend to traders and
manufacturers for short periods. They provide the working capital to the
business in the form of overdraft and cash credit.
2. Investment Banks or Industrial Banks
Investment banks provide medium and long-term finance to industries
to meet their fixed capital requirements. For existing industries, they lend
for expansion and modernization of industries. They help to promote new
industries by underwriting the issue of securities. The industrial banks
secure funds through share capital and debentures. They also receive
deposits from the public for long period.
3. Exchange Banks
Exchanges banks specialize in financing the foreign trade. They
supply necessary foreign exchange required for settlement of transactions in
foreign trade. The exchange banks discount foreign bills of exchange.
4. Co-operative Banks
Banks formed on the principles of co-operation are called co-operative
Banks. They provide short-term credit to agriculturist, artisans, small
farmers and small-scale industries.
5. Land Development Banks
5
7/28/2019 Indian Bank - All Chapters
6/109
Agriculturists require short-term and long-term loans. Land
development banks provide long-term loans to agriculturists for purchasing
tools and equipments and cattle and making permanent improvement on
land.
6. Savings Banks
Savings banks are specialized institutions to collect savings from the
poor and middle-income people of the society. These banks primarily
intended to encourage habits of thrift and savings among people with small
incomes.
7. Central Banks
Every country has generally one central bank. The central bank act as
the leader of the money market supervising, controlling and regulating the
activities of the commercial banks and other Financial Institution.
6
7/28/2019 Indian Bank - All Chapters
7/109
BANKING SYSTEM IN INDIA
Banking system plays a vital role in the economic development of a
country. The structure of the banking system in India consists of two parts.
INDIGENOUS BANKS
The Indigenous Bankers occupy an important place in the Indian
Financial System. From ancient times, Indigenous Banking system has been
in existence in Indian. The Indigenous bankers lend money, act as money
changes and finance internal trade by means of internal bill of exchange.
The Indigenous Bankers do not have contact with other sections of the
banking world.
7
Banking System
Money
Lenders
Indigenous
Bankers
Organized Unorganized
Commercial
Bankers
Co-operative
Bankers
7/28/2019 Indian Bank - All Chapters
8/109
The organized sector consists of commercial banks and co-operative banks.
1. Commercial Bank
Commercial banks are the oldest banking institutions in the organized sector.
They cuter to the needs of trade, commerce, industries, agriculture, small
business, transport and other activities with a wide network of branches
through out the country. Commercial banks command a major share in the
total banking operations.
2. Co-operative Bank
Co-operative Bank, another component of the Indian banking system,
originated with the enactment of the Co-operative Credit Societies Act of
1904. The act provided for the establishment of credit societies for financing
agriculturists. Under the act number of co-operative credit societies were
started. The Co-operative Credit Societies Act, 1912 provided for
establishment of co-operative central banks by a union of primary credit
societies.
STATEMENT OF THE PROBLEM
One of the major concerns of Indian planning has been the
development of Weaker Sections of the society particularly those in rural
areas. Paramathi Indian Bank gives loans to needy people and supply
agricultural inputs to rural people.
Indian has still attained social, moral and economic independence in
terms of its seven thousand villages as distinguished from its cities and
8
7/28/2019 Indian Bank - All Chapters
9/109
towns. The political idea of the bank is creating self-reliant power for the
people. But so far no serious attempt has been made to bring out the sailent
feature of the Paramathi Indian Bank. Hence the present study is undertaken
by the scholar.
1.2 SCOPE OF THE STUDY :
The entire survey was conducted for understanding the customer
satisfaction towards the services of Indian Bank, Paramathi Branch, from
this study the preferences and problems of the customers can be met. The
customers views about the quality of banking services can be know. This
study helps the banker to improve services offered by it to its customers.
RESEARCH METHODOLOGY :
Data have been collected both through primary and secondary sources.
The primary data was collected by the administration of questionnaires to
elicit the information from the customer. The secondary sources were
collected from banks records, books, journal of bank of RBI Bulletin and
from the website of Indian Bank.
The questionnaire for customers was prepared and pilot study was
conducted in Paramathi town. The list of customers was taken from the
banks records.
9
7/28/2019 Indian Bank - All Chapters
10/109
SAMPLING TECHNIQUE :-
The study covers only those customers having account in Indian Bank,
Paramathi Branch. In the present study convenience sampling technique was
followed.
10
7/28/2019 Indian Bank - All Chapters
11/109
1.3 OBJECTIVES OF THE STUDY :
1. To study the origin & growth of Indian bank Paramathi Branch.
2. To study socio-economic factors of selected customers of the bank.
3. To know about the type of account held by the customers and their
operations.
4. To analysis the customer satisfaction prevailing among the customers
of Indian Bank, Paramathi.
5. To offer suggestions for the improvement of the bank.
11
7/28/2019 Indian Bank - All Chapters
12/109
1.4 LIMITATIONS OF THE STUDY :
The researcher had taken all the necessary steps to carry out the
research flawlessly. However due to time and cost factors, the samples were
restricted to 50. The study covers only the customers of Paramathi Branch
of Indian Bank only the customers viewpoint has been studied but the banks
views has not taken for the study. The findings of this study cannot applied
to other branches of the bank.
1.5 CHAPTER SCHEME :
First chapter deals with the introduction, statement of the problem,
objectives of the study and its scope. It also contains the details regarding
research methodology, sampling techniques, the limitation of the study and
chapetrisation.
The second chapter contains the review of literature.
The third chapter gives us the profile of Indian Bank, Paramathi
branch.
The fourth chapter has the analysis and interpretation of data.
The fifth chapter contains the summary of Findings, Suggestion and
Conclusion.
12
7/28/2019 Indian Bank - All Chapters
13/109
CHAPTER - II
REVIEW OF LITERATURE
2.1 INTRODUCTION
Banking is essentially service oriented industry and it has to sustain
itself on its service. The survival and growth of a bank does not depend on
its size or funds. Rather it depends on its ability to provide qualitative
service to its customers on a sustained basis.
Every business enterprise including a bank exists to serve customers
to satisfy the customer in the basic purpose of every business. Long ago
Mahatma Gandhi said, A customer is the most important visitor on our
premises. He is not dependent on us, we are dependent on him. He is not an
interruption in our work; he is the purpose of it. He is not an outsider on our
business he is a part of it. We are not doing him a favour by serving him.
He is doing us a favour by giving us an opportunity to do so. Thus, the
customer is the king.
Earlier the banks did not assign due weightage to the behavioural
profile of customers however the business results remained satisfactory since
the intensity of competition was low.
Today we find the competition at its peak. This is due mainly to the
fact that a number of foreign banks and a few of the private commercial
banks have started innovating their core and peripheral services and the
sophisticated communication technologies have transmitted the latest
13
7/28/2019 Indian Bank - All Chapters
14/109
developments and attractions to the users and prospects which has raised the
level of their expectations. The increasing rate of literacy, growing
denomination of corporate culture, liberal business regulations, significant
developments in the information technologies and positive efforts made by
foreign banks for excelling competition have changed the business
environment.
2.2 WHAT IS CUSTOMER SERVICE
The word service has many dimensions and perceptions of good
service vary from one type of customers to others. It may relate to courtesy,
promptness, employee attitudes, physical facilities, customer identification
and recognition, speed and clarity of communication etc., It gets manifested
in the care, concern, commitment and sensitivity shown by the bank staff
while dealing with customers.
In banking industry, customer service may be defined as the
perception of customers about eh services they receive from a bank.
Customer service is a dynamic concept as it varies from time to time. The
expectations of people change over time. With growing public awareness
and expectations, dissatisfaction with public sector banks has increased. It is
therefore, necessary to continuously assess and reassess how the customersperceive bank services, what are the new and emerging expectations and
how can they may be satisfied on a continuous basis services offered by the
bank.
14
7/28/2019 Indian Bank - All Chapters
15/109
2.3 CUSTOMER RELATIONSHIPS
Any person that uses the services of a bank on a regular basis may be
called a customer of a bank. A bank has multiple relationships with its
customers. It is a debtor of its depositors, a creditor of its borrowers, a
trustee of its locker holders, an agent of its customers for their instructions.
There are several types of bank customers and banks offer several
schemes / facilities to meet their requirements. In addition to various types
of deposit schemes and loan schemes, banks offer agency and consultancy
service. A bank can provide efficient customer service by matching its
schemes / services to the needs of different types of customers. If the
customer selects a scheme which he subsequently finds out is not meeting
his requirements fully he gets dissatisfied. In order to ensure customer
satisfaction bank staff may also have to guide the customers in making the
right choice from among the available range of services and facilities.
Thus, to build satisfactory relationships with customers, it is necessary
to:-
1. Identify and understand the needs and expectations of customers.
2. To tailor services to these needs and expectations and3. To deliver the services with speed, accuracy, courtesy and concern.
2.4 CUSTOMER ORIENTED STRATEGIES
In order to develop and maintain long lasting customer relationships
and to provide excellent customer service banks may use the following
strategies:
15
7/28/2019 Indian Bank - All Chapters
16/109
Service Standards
Some banks have developed clearly defined corporate standards for
customer service in respect of each of their customer segments. These
standards are communicated to all their frontline field staff for effective
implementation. Time standards for completing each service is an example
of such standards. The Indian banks Association has evolved and
communicated to banks a set of time norms for completing some of the
common banking services.
Attention to Details
Quality is not a matter of accident. At every stage a deliberate effort
has to made to create the right impression on the customer. Therefore, in
every mode of customer interaction attention to details is necessary. Every
telephone call or letter or standing instruction or a complaint should be given
due attention.
Courtesy
In order to attract and retain customers, treating the customers well isabsolutely essential. Surveys conducted have shown that one of the main
reasons for shifting amounts by customers is dissatisfaction with the
behaviour of the staff in a particular branch.
16
7/28/2019 Indian Bank - All Chapters
17/109
Personalised Service
A customer is not a mere statistic or a faceless entity. Customers are
not just token numbers and account numbers. They are persons with feelings
and emotions. They sustain banks through their patronage. Bank employees
should make all efforts to identify them by name. This is a hall work of
personalized service. Some foreign banks have introduced the concept of
Personal banker or Relationship officer in selected large branches where
it is difficult for the branch manager to maintain personal contact with all the
important customers. Under this management the branch manager assigns a
specific number or accounts to specific officers who will be providing
personalized service to them. This approach may be used only by large
banks on very selective basis in India.
Communication
While building relationship and ensuring customer orientation are
good slogans at the corporate level, more specific customer targets will have
to be set at the branch level. For example, no customer is kept waiting for
more then X minutes. Communication plays a vital role in operational sing
these targets.
Customer Consciousness
Lofty ideal and written directives from the head office are by no
means adequate for ensuring excellent service. It is essential to create a
climate that encourages and regards efficiency, creativity and customer
responsiveness. It involves motivating employees, training. The bank whos
every staff member views the customers positively stands apart from other
banks.
17
7/28/2019 Indian Bank - All Chapters
18/109
Relationship Banking
In this approach the focus is on developing long-term business
relationship with customers rather than on the particular transactions. Banks
plan to meet the total banking requirements of customers to obtain repeat
business. The initial transaction is only the starting point for providing total
customer satisfaction. For building up profitable customer relationship, it is
necessary to know and understand the customer and his banking needs.
Banks prepare customer profiles for this purpose. After such understanding,
information and guidance is provided about various schemes and facilities so
that the customer can make the right choice.
Retention Banking
It is corollary to the relationship banking the emphasis here is on
retaining the old and existing customers. Retention banking implies the need
for setting up a mechanism whereby bank staff can keep in constant touch
with the customers. This may be done through personal visits, telephone
calls, letters and publicity literature. Customers remember with gratitude the
support and advice they receive from their banks in times of need and
reciprocate with loyalty to their banks in times of need and reciprocate with
loyalty to their bank. It takes time, energy and efforts to retain customersand establish solid relationships with them. Nevertheless banks are finding
these efforts worth while and profitable. Retaining a customer is often
cheaper than finding a new customer.
18
7/28/2019 Indian Bank - All Chapters
19/109
2.5 CS IN CUSTOMER SERVICE
In the traditional banking under advances the importance has been
given to THREE c-s viz., character, capital capacity. Here we are going to
deal with certain other Cs, which are having a bearing on customer service.
They are :
Confidence
To do any work the person undertaking the same should have the faith
in him. In other words, he should develop the habit of confidence in him.
With confidence if he takes up and work he will be able to achieve the
desired result. Even in case he comes across any problem, the confidence he
has will help him to overcome the situation by taking appropriate decision.
The decision may be to direct the concerned person to the higher authority or
he himself is in a position to dispose of the problem by arriving at the
solution. Further the confidence in him forces him to arrive at the result and
ultimately resulting in getting what is called the satisfaction for doing a
particular act.
Commitment
To obtain the desired level and result one of the key areas required is
whole hearted commitment towards the job undertaken. This itself
motivates the concerned employee to reach the goal viz., doing the job to his
satisfaction and that of others also. A committed man always makes a man
to aim at achieving things and forces him to do something positive to meet
the situation.
19
7/28/2019 Indian Bank - All Chapters
20/109
Clarity
Any assignment requires some basic knowledge in the area to be
handled. This includes having a clear idea about the requirement according
to the situation. First of all the person to discharge the duty has to invariably
understand the problem with clear mind. The way in which the things are
perceived has got a direct bearing on the end result. A person with clear
mind and clear thought can always get good and desired results.
Challenge
A routine job may be boaring at times. Every human being requires
some sort of change, which includes the work situation also. Depending
upon the environment there is likelihood of workers coming across changes
in their work situations. Each and every assignment may bring with itself
both positive problems as well as negative problems. The results of which
are achieved in a direct way without much efforts may be classified as
positive problems and others for which a person has to think put in more
efforts may be called as negative problems. Invariably to counter the latter
type of problems a person has to put in extra efforts. Besides the efforts the
person has to possess the power to meet the challenge. If the employee feels
that the has got the capacity to face any situation he is ready for meeting anychallenge. Such persons are prepared to face any kind of problems and will
never go to the extent of passing of the problems to any one.
20
7/28/2019 Indian Bank - All Chapters
21/109
2.6 COMPLAINTS BY THE CUSTOMER
Customers face delay in depositing and receiving cash. Social notes,
cut notes and small notes are not accepted at the counters despite RBI
directions. Customers have to make several trips to get their passbooks up
dated. In many cases the passbooks become untraceable.
The following types of complaints are commonly made by bank
customers :
1. Delays in encashing cheques, in depositing money, in getting bank
drafts, in issuing cheque books, in granting loans and in clearance
of outstation cheques. Customers complain that they have to stand
in queues for an unduly long time.
2. Inaccuracy in transactions and correspondence entries are not
correctly and legibly made in the pass book.
3. Faulty, delayed and unhelpful decisions.
4. Lack of elementary courtesy and discipline.
5. Lack of uniformity in bank charges. Some of these charges are
said to be high.
6. Complicated documents and cumber some procedures.
7. Malafides, favouritism and corruption in granting advances.8. Lack of counseling and guidance facilities.
9. General attitude of unconcern and apathy for clients.
10.Late dispatch of mail.
21
7/28/2019 Indian Bank - All Chapters
22/109
2.7 STEPS IN HANDLING CUSTOMER COMPLAINTS
Like other organizations, a bank too should have machinery for
dealing effectively with customer complaints. A market oriented bank is
differentiated from the others on the basis of the attention given to customer
complaints. Successful organizations realize that prompt attention to
customer complaints is a essential ingredient for a profitable customer
relationship. Just as a satisfied customer tells others, an unhappy customer
too tells others about his experience. Evidently bad publicity travels faster
than good publicity. This makes it imperative that banks attend to customer
Complaints promptly and effectively.
In a service organization like a bank, handling of complaints should be
given a high priority. Some branch managers tend to react sharply to any
complaint from customers. They attempt to withhold complaints reaching
divisional top management. Customer complaints are the best tools for
branch manager who sincerely wants improvement in customer service.
Branch managers would not know what is wrong at their branches without
complaints. Some essentials relating to the effective redressal of customer
complaints are given below :
Senior level and well-experienced functionaries should receiveand attend to complaints.
Complaints should be treated as symptoms of some disorder or
malfunctioning.
The complainant should not be made to run from pillar to post. He
should be guided to the right person / department, no customer
likes to repeat his grievances to several persons.
22
7/28/2019 Indian Bank - All Chapters
23/109
The complainant should not be given the impression that the bank
officer is anxious to get rid of him.
A sincere effort should be made to understand the nature and cause
of the complaint. The person handling the complaint should be
attentive.
Prompt attention should be paid to all complaints. Written
complaints should be acknowledged within 24 hours.
Adequate information and actual details should be provided to the
complainant through relevant pamphlets and brochures.
Phoney and biased complaints should be handled with fact and
patience.
The complainant should not be driven to approach authorities
outside the bank as it causes considerable damage to the banks
image.
2.8 CUSTOMER FEED BACK
Treat every complaint an opportunity to correct oneself rather than as
a threat to existence. Complaints indicate the unfulfilled expectations of a
customer. The bank manager should thank the complainant for free
feedback and for highlighting the weak points. All complaints should be
taken seriously and objectively offer a straightforward apology of a mistake
and avoid arguments. Listen to the complaint patiently. Thus, patience,
courtesy and prompt actions are essential while dealing with customer
complaints.
Customer feedback should form the basis for making improvements in
the quality of service and service schemes. Marketing departments in banks
23
7/28/2019 Indian Bank - All Chapters
24/109
should evaluate bank services in terms of customer perspectives. For this
purpose, they will have to institute a suitable mechanism to collect the
required feedback from customers.
Obtaining customer feedback is a continuous process. Its purpose is
to improve the service and image of the bank. It provides an opportunity to
recognize the customers problems and redress them thereby wining the
goodwill of customers. This feedback is designed in three parts. Part A
covers quality and efficiency of service besides reflecting customer
satisfaction. Part B reveals grievances of customers. Par C seeks
suggestions from customers, the feedback covers all types of transactions.
The customer is required to rate the services over five-point scale.
2.9 HOW TO IMPROVE CUSTOMER SERVICE :-
Improving customer service is a never-ending process requiring
sustained efforts. It is also teamwork as only a team can offer the quality
expected by customers. The branch manager as the leader of the team,
should make employees aware of their obligations and enforce them. The
action plan for improving the quality of customer service at a branch may
consist of the following steps:
1. It is necessary to provide orientation and training to bank personnel.
Better job knowledge and access to information will enable them to
take decisions confidently and quickly.
2. Only motivated employees can provide prompt and efficient services
to customers.
24
7/28/2019 Indian Bank - All Chapters
25/109
3. Introduction of computers and mechanical devices will help to
improve customer service. Most customer complaints pertain to
delays and inaccuracy in transaction. This is where modern
technology can be very helpful.
4. Bank staff should be provided adequate authority for taking on the-
spot decisions.
5. Customers should be provided knowledge and information concerning
various schemes, rules, procedures, etc., of the bank. A meeting of
customers every month may be arranged where in bank staff would
educated them.
6. Customer satisfaction is impossible unless the employees are
disciplined and have a sense of responsibility.
2.10 GOIPORIA COMMITTEE ON CUSTOMER SERVICE
The Goiporia committee on customer service in banks had made wide-
ranging recommendations to bring about an improvement in customer
service. After examining the recommendations, the Reserve Bank issued
detailed guidelines, in 1992-1993, to the banks relating to.
i. Advancing of working hours of staff to ensure service at the beginning
of working hours of banks.ii. Extension of business hours
iii. Introduction of bank order in various denominations.
iv. Acceptance of small denomination of notes.
v. Exchange of mutilated and soiled notes.
vi. Speedy communication of information of interest rate changes to
branches.
25
7/28/2019 Indian Bank - All Chapters
26/109
vii. Payments of interest on delayed collection of outstation
instruments.
During 1993-94, further follow up actions were taken up. In accordance
with the observations of the committee that the banks should undertake
periodic evaluation of the extent of actual implementation at the grassroots
level of the various recommendations of the committee, a uniform format of
customer service areas, has been evolved in consultation with the Indian
Banks Association. Banks were also advised to include more items for such
audit and instruct their branches to submit a quarterly report to the
controlling offices which, in turn would consolidate these reports and
forward to their head office on half yearly basis for consideration of their
Chairman / Board. In addition, banks are required to submit a half yearly
brief review to the RBI. Further, a format of complaint book on customer
service has been designed with adequate number of perforated pages so that
the complainant can be given an acknowledged copy readily. A copy of the
complaint is required to be forwarded to the controlling office along the
remarks of the branch manager indicating the position regarding the disposal
of the complaint with in a time frame.
26
7/28/2019 Indian Bank - All Chapters
27/109
CHAPTER III
PROFILE OF THE BANK
3.1 INTRODUCTION
Namakkal District has been selected for study because a place like
Namakkal is at a strategic point on the National Highway 7 with its heavy
concentration of Lorry Body Building Industries and Lorry Transport. In
olden days this place was called "Namakkal". Now-a-days it is called
"Namakkal" because of growing civilization. Lorry Body Building
Industries and Transport add pride to Namakkal. It enjoys a prime place in
the poultry industry with almost all the eggs getting moved to every corner
of India and abroad. Over the year Namakkal has become popular for lorry
transport business and there are more operators clustered in and around the
town. As Namakkal is bustling with activities in poultry industry, transport
etc., the educated unemployed youth has every chance to find a job here.
Location
Namakkal District is one of the new district created on 1.1.97. The
District is bounded by Salem on the North, Karur on the South, Perambalur
on the East and Erode on the West.
27
7/28/2019 Indian Bank - All Chapters
28/109
TEMPLES
1. Mohanur Sivalayam Asala Thebeswarar Madukarai - Amveli
Amman.
2. Kollihills Arappaleeshwaran Temple - Shivaalayam.
3. Tiruchengode Arthanarishwarar Temple
4. Namagiri Amman Temple.
5. Lakshmi Narashima Swamy Temple.
6. Ranganathar Temple.
7. Anjaneyar Temple.
8. Malai Varadharsar Temple.
9. Kandhagiri Murugan Temple.
lO.Thathagire Murugan Temple.
AREA
The geographical area of the district is 3,36,335 Hr. which is divided
into 4 Taluks viz., Namakkal, Paramathi, Tiruchengode and Rasipuram
of these Namakkal Taluk has the most extensive coverage of 1767.75
sq.kms. The District as a whole comprises of 4 Municipalities and 346
Village Panchayats with 436 Revenue Villages.
28
7/28/2019 Indian Bank - All Chapters
29/109
ADMINISTRATIVE SETUP
For administrative purpose the district has been divided into 15 Panchayat
unions, which are detailed below,
TALUKS AND BLOCKS
S.No TALUKS BLOCKS
1 Namakkal Taluk
Namakkal, Puduchatram,
Sendamangalam, Erumapatty, Mohanur,
2 Rasipuram Taluk Rasipuram, Vennandur, Namagiripettai
3 Paramathi Taluk Paramathi, Kabilarmalai
4 Tiruchengode
TalukTiruchengode, Mallasamudram,
Elachipalayam, Pallipalayam.
3.3 REGISTERED OFFICE ADDRESS
Indian Bank, Katcheri Street, Near Old Bus Stand, Rasipuram,
Namakkal District.
29
7/28/2019 Indian Bank - All Chapters
30/109
3.5 LOGO
The Bank's Logo consists of three circling arrows arranged around a central
point. The three arrows stand respectively for savings, investments and
surplus and that savings lead to investment, investment to income and
income in turn to surplus or savings in a circular chain.
30
7/28/2019 Indian Bank - All Chapters
31/109
SLOGAN:
HOUSE JOURNAL
The Bank has a House Journal by name 'INDIMAGE' which is brought out
once in two months, staff members can contribute stories, essays, poems
written by them, news items covering individual achievements, and local
news of interest. The House Journal acts as a medium communication for the
employees and aims at prompt cordial relationship among the staff members
by informing, educating and entertaining
.
31
7/28/2019 Indian Bank - All Chapters
32/109
3.6 BOARD
The Board held, in all 12 meetings during the year, the Management
Committee held 14 meetings, Audit Committee 8 meetings, Vigilance
Committee 3 meetings, Technology Committee 2 meetings and Risk
Management Committee 3 meetings. As per the directives of RBI, the Board
in its meeting held on 31.01.2004, constituted a Special Committee with the
CMD as the Chairman, for monitoring of large value frauds.
Shri MBN Rao took over as Chairman and Managing Director of the
Bank with effect from 04.12.2003. The Board places on record its
appreciation of the services rendered by smt.RanjanaKumar as CMD, who
demitted office on 21.11.2003 on her appointment as chairperson of
NABARD. Dr.Rabi N. Mishra, General Manager, Reserve Bank of India
staff college was appointed director with effect from 12.01.2004 in the place
of shri S.Karuppasamy.
The Board also places on record the services rendered by the directors,
Shri.S.Karuppasamy, Shri.M.P.Radhakrishnan, Shri.O.R.Muthukrishnan,
Shri.P.V.Maiya, Shri.P.V.Indiresan, Shri.M.D.Sharma and Shri.S.N.Satpute,
whose term expired during the year.
7/28/2019 Indian Bank - All Chapters
33/109
3.7 MEMBERS LIABILITY
The following members are liable only upto their share capital. They are,
1. Lunatic, Insanity or Minor Persons
2. Government.
3.8 SOURCES OF FUNDS
Share capital
Deposits
Recurring deposits
Savings fund
Vidhya funds scheme
Non-resident fund
Surplus assets or reserve fund
Other extra income
3..9 SHARE CAPITAL
The share capital of a Bank is divided into units, called shares,
contributed by the members, the ownership of which determines the rights
and obligations of the holders to the Bank and its creditors.
7/28/2019 Indian Bank - All Chapters
34/109
3.10 DEPOSITS
INTRODUCTION OF ACCOUNTS
All deposit accounts should be properly introduced. The Branch
Manager is vested with discretion to accept introduction for opening a new
account from any respectable member of the local community known to
himself or any member of the staff, although the introducer himself may not
be an account-holder.
Passport and postal identification cards are deemed to be adequate
identification.
NOMINATION
Nomination facility is available to depositors in their existing and new
accounts.
The facility extends to all persons who hold Deposit Accounts, Safe
Custody Accounts or Safe Deposit Lockers in their individual capacity and
not representative capacity.
In case of deposit made in the name of a minor, the person lawfully
entitled to act on behalf of the minor can make the nomination.
Nominations can be made, cancelled or varied in the prescribed forms
available with the bank.
7/28/2019 Indian Bank - All Chapters
35/109
The Interest rates offered by Indian Bank at present is as follows :
TABLE 3.1
INTEREST RATE OF DEPOSIT
S.No.NUMBER OF
DAYS/YEARSINTEREST RATE
1 Upto 7 days to 14 days 3.5%
2 15 days to 29 days 4.5%
3 30 days to 45 days 4.75%
4 46 days to 90 days 5%
5 91 days to 179 days 5.25%
6 180 days to 364 days 5.6%
7 Upto 1 year to 2 years 5.75%
8 2 years to 3 years 5.75%
9 3 years to 5 years 6.1%
10 Above 5 years 6.25%
7/28/2019 Indian Bank - All Chapters
36/109
STATEMENT OF CLAIMS IN ACCOUNTS OF DECEASED
DEPOSITS
Power have been delegated as below, to Branch Managers,
Regional Managers and Zonal Managers in the matter of recognition and
settlements of claims relating to the accounts of deceased deposits.
All Branch Managers (other - Claims upto Rs.500.00 and/or the
than chief Managers) value of the claim not exceeding Rs.500.00
Chief Managers and - Claims upto Rs. 5000.00 and/or the
Regional Managers value of the claim not exceeding Rs.5000.00
Zonal Managers - Claims upto Rs.25000.00 and/or
the value of the claim not exceeding
Rs.25000.00
Central office, Legal
Department - Claim above Rs.25000.00
3.11 LOANS AND ADVANCES
In accordance with the prudential norms issued by RBI:
Advances in India are classified into standard, sub-standard, doubtful
and loss assets borrower-wise.
Provisions are made for loan losses, and
General provisions for standard advances is made.
7/28/2019 Indian Bank - All Chapters
37/109
In respect of foreign branches, income recognition, asset classification
and provisioning for loan losses are made as per local requirement or as per
RBI prudential norms, whichever is more stringent.
Advances disclosed are net of provisions made for non-performing
assets, DICGC/ECGC/CGTSI claims received and kept in sundries account,
balance in interest realizable account, participation certificates and usance
bills rediscounted.
3.12 AGRICULTURAL ADVANCES
Need-based short term production loans (crops loans) are granted to
owner cultivators, share croppers and lease holders, for purchase of inputs
like, seeds, fertilizers and plant protection chemicals; and for payment of
labour charges, water charges, etc., for seasonal crops, with repayment due
dates fixed to coincide with the harvesting and marketing of the crops. No
margin is required for loans upto Rs.10,000.00 for small and Marginal
farmers. The margin requirement for other categories of borrowers will be
15 to 25%.
7/28/2019 Indian Bank - All Chapters
38/109
3.13 EDUCATIONAL LOANS
Bright and deserving students, whose parent/guardian's income does
not exceed Rs.2.50 lacs perannum, is eligible for loans to prosecute higher
studies in regular Professional and Technical Courses in India.
Exceptionally good academic record in the previous qualifying studies will
be the main criterion for considering loans under this scheme.
Normally upto Rs.10000.00 is made available to the student to meet
out expenditure towards tuition fees, books maintenance etc., disbursement
of which in periodical installments will be made direct of the agencies
concerned, such as college, university, hotel, book store,etc.,
For studies abroad, applications for financial assistance will be considered
on the merits of individual cases, subject to the guidelines issued by Reserve
Bank of India from time to time.
Maximum Permissible Loan
Studies in India - Rs.7.50 lacs.
Studies in Abroad - Rs.15.00 lacs
Margin
Upto Rs.4.00 lacs - Nil
Above Rs.4.00 lacs - Studies in India 5%
Studies in Abroad 15%
7/28/2019 Indian Bank - All Chapters
39/109
Rate of Interest
Upto Rs.4.00 lacs - 11.50%
Above Rs.4.00 lacs - 12.50%
The Interest will be charged as per the Reserve Bank.
Norms
Simple basis during the study and holiday period (6/12 months) and
thereafter compounded and EMI.
2% Interest subsidy
60%o marks in qualifying examination.
Total loan amount not to exceed Rs.4 lacs p.a.
Repayment
Repayment in 5-7 years in EMI
Repayment to commence 6/12 month after completing the course, or
upon getting a job, whichever is earlier.
Security
For loans above Rs.4.00 lacs collateral security worth atleast 100% of
amount should be made available.
7/28/2019 Indian Bank - All Chapters
40/109
3.14 WORKING CAPITAL ADVANCES
Working Capital Advances to Small Scale Industrial Units for
maintaining the current assets, namely, raw materials, consumable stores
and spares, stock-in-process and trade credit receivables; and for meeting
production expenses, are provided by banks in the following forms:
1.Advances against stock by way of hypothecation or pledge of stock,
2.Advances against receivables by way of purchase of documentary bills,
discounts of usance bills and purchase of clean supply Bills, and advances
against books debts,
3.Packaging credit to exporters for executing export orders.
4.Import and Inland letter of credit.
5.Guarantees for advance payments, performance, security deposit etc.,
3.15 DISPOSAL OF APPLICATIONS FOR LOANS AND
ADVANCES
The following maximum time limits have been stipulated for disposal
of applications for Loans and Advances from small scale Industries:
7/28/2019 Indian Bank - All Chapters
41/109
Where the credit requirements are,
Upto Rs.25,000.00 - within 15 days Above Rs.25,000.00 - 8 to 9
weeks
3.16 PASS BOOK/ STATEMENT OF ACCOUNTS
Passbooks and statement of Accounts should be written accurately,
neatly and legibly.
Statements of Accounts to current account-holders should be sent
within 5 days from the due date. These due date should be marked in the
relative ledger folios and statements of Accounts should be prepared
sufficiently early to be send to the customers on due dates.
Entries in passbooks should be made then and there. The Pass Books
should be returned to the customers with out making them to wait long.
3.17 REMITTANCES
ISSUE OF DEMAND DRAFT
Demand draft should be issued to any person who applies for it,
irrespective of whether he has an account with the bank or not.
To avoid fraudulent alteration strokes should be placed between the
words written after the printed word "RUPEES".
7/28/2019 Indian Bank - All Chapters
42/109
To render prompt customer service, demand draft upto Rs.1000.00
will be issued signed by only one powered officer.
PAYMENT OF DEMAND DRAFT
Payment of Demand Draft should not be refused for the only reason
that the relative protection advice has not been received. If necessary, the
paying branch should contact the issuing branch over telephone and seek
confirmation of issue of the Demand Draft.
The officer signing the demand draft should put a stamp below his
signature, bearing his name and number assigned in the specimen signature
booklet, to enable easy verification by the paying branch.
3.18 AUDIT BOOK
A Separate Audit Book will be maintained by branches to record
errors and lapses of staff members. Stern action will be initiated against
employees committing errors and lapses frequently or behaving in a manner
adversely affecting service to customers.
7/28/2019 Indian Bank - All Chapters
43/109
3.19 PERFORMANCE APPRAISAL OF EMPLOYEES
The Performance Appraisal of Employees will be taken into account
the performance of the employees in the field of customer service also
lapses and errors committed by the employee, complaints received against
the employee and any good work done by the employee, will be given due
weightage.
3.20 IDENTITY CARDS/NAME PLATES FOR
MEMBERS OF STAFF
All the employees should wear on their apparel the Identity cards
supplied to them, which will help the customers in knowing them by name.
Officers should be supplied with their name plates for display o their tables.
3.21 STAFF MEETINGS
Each branch should hold a staff Meeting atleast once a month,
participated by all members of staff. The staff meeting should be held
preferably one or two weeks after the joint customer service committee
meeting of the branch, so that any suggestions made in the joint customer
service committee meeting may be discussed in the staff meeting.
7/28/2019 Indian Bank - All Chapters
44/109
3.22 BOOKS MAINTAINED BY PARAMATHI BRANCH INDIAN
BANK
1. Day book
2. General ledger book
3. SB section day book
4. Current Account day book
5. Jewel loan book
6. Weekly sectional day book
7. Receipt book
7/28/2019 Indian Bank - All Chapters
45/109
CHAPTER IV
ANALYSIS AND INTERPRETATION OF DATA
Table 4.1
Sex wise Classification of Respondents
Sex No.of Respondents Percentage
Male 40 80
Female 10 20Total 50 100
Source : Primary Data.
Table 4.1 shows the sex wise classification of sample respondents of
Indian Bank, Paramathi. It is seen that there are 40 male respondents and 20
female respondents. It is noted that 80 percent of the respondents are male.
Sex wise classification clearly shows major respondents are males.
The respondents of the study belongs to various age groups. Their age
ranges from 25 to 55 years.
7/28/2019 Indian Bank - All Chapters
46/109
Chart 4.1
Sex wise Classification of Respondents
80
20
0
20
40
60
80
Male Female
7/28/2019 Indian Bank - All Chapters
47/109
Table 4.2
Age Group of Sample Respondents
Age (years) No.of Respondents Percentage
Below 25 5 10
26-35 12 24
36-45 20 40
46-55 10 20
Above 55 3 6
Total 50 100
Source : Primary Data.
Table 4.2 exhibit the age group of sample respondents. It is found that
among the respondents 40 per cent are in the age group of 36-45 years and
24 per cent are in the age group of 26-35 years. Nearly 20 per cent of themare in the age group of 46-55 years.
It is inferred that majority of the sample respondents are in the age
group of 36-45 years.
7/28/2019 Indian Bank - All Chapters
48/109
Chart 4.2
Age Group it Sample Respondents
10 24 40 20 6
0% 20% 40% 60% 80% 100%
Below 25 26-35 36-45 46-55 Above 55
7/28/2019 Indian Bank - All Chapters
49/109
Table 4.3
Educational Qualification of the
Sample Respondents
Education No.of Respondents Percentage
Below HSC 4 8
Graduate 20 40
Post Graduate 25 50
Technical 1 2Total 50 100
Source : Primary Data.
The academic educational qualification of sample respondents are
given in table 4.3. Among the Indian Bank customers (sample respondents)
8 per cent have studied below H.S.C, 40 per cent are graduates and 50 per
cent are post graduates. Just 2 per cent of them are have technical
qualification.
It is inferred that majority of the sample respondents have their post
graduation.
7/28/2019 Indian Bank - All Chapters
50/109
Chart 4.3
Educational Qualification of the
Sample Respondents
8
40
50
2
0
10
20
30
40
50
S.S.L.C Graduate Post
Graduate
Technical
7/28/2019 Indian Bank - All Chapters
51/109
Table 4.4
Respondents on the basis of Occupation
Occupation No.of Respondents Percentage
Agriculture 8 16
Business 20 40
Profession 1 2
Student 2 4Housewife 5 10
Labour 10 20
Others 4 8
Total 50 100
Source : Primary Data.
Table 4.4 shows the data regarding the occupation of sample
respondents. Out of 50 respondents, 20 of them which accounts for 40 per
cent are businessmen and 20 per cent are labourers. Only 8 of the
respondents are agriculturalists. It is interesting to note that 10 of them are
housewife.
It is found that 40 per cent of the them are businessmen.
7/28/2019 Indian Bank - All Chapters
52/109
Chart 4.4
Respondents on the basis of Occupation
16 40
2
4
1020
8
0 10 20 30 40
Agriculture Business Profession Student
Housewife Labour Others
7/28/2019 Indian Bank - All Chapters
53/109
Table 4.5
Income of the Sample Respondents
Income No.of Respondents Percentage
Below 5000 4 8
5000 10,000 10 20
10,000-25,000 20 40
Above 25000 16 32
Total 50 100
Source : Primary Data.
Table 4.5 describes the data regarding the income of the sample
respondents. It is inferred from the above table that majority of the sample
respondents earns between Rs.10,000 to Rs.25,000. Exactly 20 per cent of
the respondents have income of Rs.5000 to Rs.10,000. Nearly 32 per cent
are in the income group of above Rs.25,000.
Majority of the sample respondents are earning between Rs.10,000 to
Rs.25,000.
7/28/2019 Indian Bank - All Chapters
54/109
Chart 4.5
Income of the Sample Respondents
8
20
40
32
0
5
10
15
20
25
30
35
40
Below 5000 5000 10,000 10,000-25,000 Above 25000
7/28/2019 Indian Bank - All Chapters
55/109
Table 4.6
Marital Status of the Sample Respondents
Status No.of Respondents Percentage
Married 35 70
Unmarried 15 30
Total 50 100
Source : Primary Data.
The Maritial Status of the sample respondents are given in table 4.6.
35 respondents which account for 70 per cent of them are married and 30 per
cent of them are unmarried. Hence, majority of them are married.
7/28/2019 Indian Bank - All Chapters
56/109
Chart 4.6
Maritial Status of the Sample Respondents
Married, 70
,Unmarried
30
7/28/2019 Indian Bank - All Chapters
57/109
Table 4.7
Type of Account
Type of Deposits No.of Respondents Percentage
Savings 25 50
Current 5 10
Fixed 15 30
Others 5 10
Total 50 100
Source : Primary Data.
Table 4.7 shows the details of regarding the type of account used by
the customers (sample respondents) of Indian Bank, Paramathi. Nearly 50
per cent of the sample respondents made saving Bank deposit and 30 per
cent of them are fixed deposit holders.
7/28/2019 Indian Bank - All Chapters
58/109
Chart 4.7
Type of Account
50
10
30
10
0
10
20
30
40
50
60
Savings Current Fixed Others
7/28/2019 Indian Bank - All Chapters
59/109
Table 4.8
Purpose of using Account
Purpose No.of Respondents Percentage
Business 21 42
Savings 25 50
Profession 1 2
Others 3 6
Total 50 100
Source : Primary Data.
Table 4.8 shows that customer using Indian Bank Account. Out of 50
respondents 21 which account for 42 per cent used their account for business
purpose and 50 per cent of the respondents used it as for saving purpose.
Just 8 per cent used the bank accounts for other purpose.
Nearly 92 per cent of the respondents used bank accounts for Business
and savings.
7/28/2019 Indian Bank - All Chapters
60/109
Chart 4.8
Purpose of using Account
Business Sawings Profession Others
4250
2 6
0
50
7/28/2019 Indian Bank - All Chapters
61/109
Table 4.9
Frequency of Operation of Account
Frequency No.of Respondents Percentage
Daily 2 4
Once in two
days5 10
Weekly once 5 10
Irregular 38 76
Total 50 100
Source : Primary Data.
The frequency of operation of accounts was dealt in the table 4.9.
Majority of the respondents were using their accounts at irregular intervals.
10% of the respondents use their accounts weekly once. Merely 4% of the
people uses their accounts daily.
7/28/2019 Indian Bank - All Chapters
62/109
Chart 4.9
Frequency of Operation of Account
4
10
10
76
Daily
Once in two
days
Weekly once
Irregular
7/28/2019 Indian Bank - All Chapters
63/109
Table 4.10
Loan Facility Availed by the Customers
Usage No.of Respondents Percentage
Yes 35 70
No 15 30
Total 50 100
Source : Primary Data.
As per Table 4.10, Nearly 70% of the sample respondents availed
some kind of loan. Only 30% of them not getting any loans.
7/28/2019 Indian Bank - All Chapters
64/109
Chart 4.10
Loan Facility Availed by the Customers
70
30
0
20
40
60
80
100
Yes No
7/28/2019 Indian Bank - All Chapters
65/109
Table 4.11
Problems in Banking Services
Problems No.of Respondents Percentage
Cheque
Collection30 60
Demand Draft 10 20
Money Issue 8 16
Others 2 4Total 50 100
Source : Primary Data.
Problems faced by the Indian Bank customers are given in table 4.11.
Nearly 60 per cent of the customers major problem is cheque collection in
time and 20 per cent faced it over demand draft facilities. Only few
customers faced various other problems.
7/28/2019 Indian Bank - All Chapters
66/109
Chart 4.11
Problems in Banking Services
60
2016
4
0
10
20
30
40
50
60
70
Cheque
Collection
Demand Draft Money Issue Others
7/28/2019 Indian Bank - All Chapters
67/109
Table 4.12
Satisfaction level on Agency services
Agency No.of Respondents Percentage
H.S 3 6
S 15 30
NSNDS 20 40
D.S - -
H.D.S 12 24
Total 50 100
Source : Primary Data.
Satisfaction level on Agency services are given in table 4.12. 30 per
cent of the respondents expressed satisfaction on Agency services. Among
40 per cent of the sample respondents, Normal attitude is prevailed in theagency service. Nearly 24 per cent of them expressed their, dissatisfaction
over the agency services.
7/28/2019 Indian Bank - All Chapters
68/109
Chart 4.12
Satisfaction level on Agency services
6
30
40
24
0
5
10
15
20
25
30
35
40
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
69/109
Table 4.13
Interest on Deposits
Interes
tNo.of Respondents Percentage
H.S 3 6
S 2 4
NSNDS 40 80
D.S - -H.D.S 5 10
Total 50 100
Source : Primary Data.
The table 4.13 shows the satisfaction level of customers on interest on
deposits. Most of the customers (80 per cent) were indifferent over theinterest on deposits. Only very few customers expressed satisfaction.
7/28/2019 Indian Bank - All Chapters
70/109
Chart 4.13
Interest on Deposits
64
80
10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
71/109
Table 4.14
Loan Facility
Interes
tNo.of Respondents Percentage
H.S 5 10
S 20 40
NSNDS 20 40
D.S - -
H.D.S 5 10
Total 50 100
Source : Primary Data.
Table 4.14 shows the satisfactory level of sample respondents
regarding the loan facility extended by the Indian Bank on seeing the
weighted score of 20 against 100, as per Table 4.29 implies the leastsatisfaction prevailing among the sample respondents. Indian Bank in the
eve of LPG (liberalization, privatization, & Globalization has consider the
customer delight seriously and revise of restructure the procedures of
factionary loan wither the risk factors. Diagram 4.14 illustrates the fact. The
weighted score in used to rank this factor as 9 th only of 17.
7/28/2019 Indian Bank - All Chapters
72/109
Chart 4.14
Loan Facility
10
40 40
10
0
5
10
15
20
25
30
35
40
45
H.S S NSNDS. D.S H.D.S
7/28/2019 Indian Bank - All Chapters
73/109
Table 4.15
Interest on Loan
Loan No.of Respondents Percentage
H.S 18 36
S 12 24
NSNDS 11 22
D.S - -
H.D.S 9 18
Total 50 100
Source : Primary Data.
Table 4.15 records the opinion of the sample respondents regarding
their satisfactory level towards the interest on loan using weighted scores. It
in had that 41% of sample respondents satisfied with this factor. Indian
Bank attained pass mark for this factor, at the same time, it is very difficultfor any finance institution to dance according to the have of customers.
Credit goes to Indian Bank for they have maintained this factor as 6th Rank
among the total of 17 factors. Interest on loan is the cost of capital which is
decided not by a single individual but by various factors such as RBI, world
Bank, Competing Banks, Financial & Non financial institution. Risk taking
ability, Number of customer, Initial deposits, credit terms, Economy and so
on customer satisfaction amidst these factors is realty a challenging one.
Diagram 4.15 illustrates the fact.
7/28/2019 Indian Bank - All Chapters
74/109
Chart 4.15
Interest on Loan
36
24
22
18
0 20 40 60 80 100 120
H.S S NSNDS. D.S H.D.S
7/28/2019 Indian Bank - All Chapters
75/109
Table 4.16
Opening an Account
Opening No.of Respondents Percentage
H.S - -
S - -
NSNDS - -
D.S 46 92
H.D.S 4 8
Total 50 100
Source : Primary Data.
Table 4.16 highlights the thrilling position of Indian Bank units
reference to opening an account. It is highly shocking to see that not even a
single is seen under the categories of satisfaction. All of them are under thedissatisfaction categories and weighted negative score of 54 purses the factor
to 14th rank only of 17.
7/28/2019 Indian Bank - All Chapters
76/109
Chart 4.16
Opening an Account
000
92
8
0
20
40
60
80
100
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
77/109
Table 4.17
Overdraft
Overdraf No.of Respondents Percentage
H.S 2 4
S 3 6
NSNDS 5 10
D.S 5 10
H.D.S 35 70
Total 50 100
Source : Primary Data.
Table 4.17 over liens the satisfactory level on overdraft extended by
Indian Bank. As most of the sample respondents have infavourable
opinions, this factor in pushed to last rank by the sample respondents,
Paramathi, is a small town where business people do lot of agricultural
business which are based on nature. When they are given imply the nature,they resort to OD facihly for a short run adjustment, if is inflexed that the
researcher probes the fact that Indian Bank would have faced a but of
repayment problems due to overdraft, though it has some pledges and
unnecessary additional issues then they do not pay there dues. This would
warrant the bank not to sanction OD facility-inspect of the valid reason,
striking a balance between there, is essential. Bold the bankers and
borrowers would realize this.
Diagram 4.17 illustrates the fact.
7/28/2019 Indian Bank - All Chapters
78/109
Chart 4.17
Overdraft
4 610 10
70
0
10
20
30
40
50
60
70
80
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
79/109
Table 4.18
Repayment of Deposits
Deposits No.of Respondents Percentage
H.S 10 20
S 10 20
NSNDS 10 20
D.S 10 20
H.D.S 10 20
Total 50 100
Source : Primary Data.
Table 4.18 reverts the repayment of deposits and its rote in satisfying
the customer in Indian Bank. The Break even for weight score brings the
customers to rank this factor to 10
th
Diagram 4.18 is used to illustrate thefact.
7/28/2019 Indian Bank - All Chapters
80/109
Chart 4.18
Repayment of Deposits
20 20 20 20 20
0
5
10
15
20
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
81/109
Table 4.19
Minimum Balance
Minimum No.of Respondents Percentage
H.S 12 24
S 38 76
NSNDS - -
D.S - -
H.D.S - -
Total 50 100
Source : Primary Data.
Table 4.19 shows the over whelming response of sample Respondents
towards the Minimum Balance expected by the Indian Bank. As every one
comes under the categories of either Higher satisfied (24%) and satisfied(76%), the sample respondents are highly happy with the factor of minimum
balance, the weighted score of 62 ranks this factor to 1 st Rank which ensures
core competence for the Indian Bank to retain their customers Diagram
4.19 illustrates the fact.
7/28/2019 Indian Bank - All Chapters
82/109
Chart 4.19
Minimum Balance
24
76
0 0 0
0
10
20
30
40
50
60
7080
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
83/109
Table 4.20
Maintenance of Pass Book
Pass Book No.of Respondents Percentage
H.S 15 30
S 30 60
NSNDS 5 10
D.S - -
H.D.S - -
Total 50 100
Source : Primary Data.
Table 4.20 manifests the data regarding the satisfactory level towards
maintenance of pass book by the Indian Bank. There is a high level of
satisfaction observed as 90% of sample respondents are happy with thisservice. The weighted score of 60 pulled this factor as 2nd Rank. Indian
Bank can be proud of this service and it has to keep it up as many more
banker were situated. Diagram 4.20, is used illustrates the fact.
7/28/2019 Indian Bank - All Chapters
84/109
Chart 4.20
Maintenance of Pass Book
30
60
10 000
10
20
30
40
50
60
70
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
85/109
Table 4.21
ATM Service
ATM No.of Respondents Percentage
H.S 10 20
S 34 68
NSNDS 6 12
D.S - -H.D.S - -
Total 50 100
Source : Primary Data.
Table 4.21 shows the data regarding the satisfactory level towards
ATM Services extended by the Indian Bank. Out of 50 respondents met, 44respondents are happy with be ATM services with a little minimum balance
bill really keep the customer a long run A good strategy were adopted by
the Indian Bank. This fact is illustrated in the following diagram.
7/28/2019 Indian Bank - All Chapters
86/109
Chart 4.21
ATM Service
20
68
12
0 0
0
10
20
30
40
50
60
70
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
87/109
Table 4.22
Credit Card / Debit Card Facilities
Facilitie
sNo.of Respondents Percentage
H.S 15 30
S 25 50
NSNDS 10 20
D.S - -H.D.S - -
Total 50 100
Source : Primary Data.
Table 4.22 shows the satisfactory level of sample respondents towards
the credit and Debit Card facilities extended by the Indian Bank. Out of 50people met, 15 having 30 per cent are highly satisfied, 25 respondents having
50 per cent are satisfied are 10 having 20 per cent are indifferent. The
weighted scores in 55 against the total of 100, which makes this factor to
attain 3rd rank position amidst 17 factors under study. Laurels to Indian
Bank for having attained this bench mark.
7/28/2019 Indian Bank - All Chapters
88/109
Chart 4.22
Credit Card / Debit Card Facilities
H.S S NSNDS D.S H.D.S
30
50 20
0 0
0
20
40
60
7/28/2019 Indian Bank - All Chapters
89/109
Table 4.23
Mail / Phone Transfer
Transfer No.of Respondents Percentage
H.S 20 40
S 20 40
NSNDS 5 10
D.S 3 6
H.D.S 2 4
Total 50 100
Source : Primary Data.
Table 4.23 deposits the opinion of sample respondents towards the
satisfactory level on mail and phone transfer out of 50 respondents met, 40
respondents accounting 80 per cent are categorized as satisfied. The score of53 allocates the 5th rank as per the weightage. Diagram 4.23 illustrates the
fact.
7/28/2019 Indian Bank - All Chapters
90/109
Chart 4.23
Mail / Phone Transfer
40
40
10
6
4
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
91/109
Table 4.24
Nomination Facility
Nomination No.of Respondents Percentage
H.S 3 6
S 2 4
NSNDS 20 40
D.S 20 40
H.D.S 5 10
Total 50 100
Source : Primary Data.
Table 4.24 shows the satisfactory level of sample respondents towards
the nomination facility extended by Indian Bank. It is not interesting to see
that out of 50 people met only 5 people being 10% come under thecategories of satisfaction, 20 people are indifferent, another 20 are
dissatisfied and the last 5 respondents are highly dissatisfied. Hence the
negative weightage of 33 pulls the factor to attain 12 th rank. The following
diagram is used to illustrates this fact.
7/28/2019 Indian Bank - All Chapters
92/109
Chart 4.24
Nomination Facility
64
40 40
10
0
5
10
15
20
25
30
3540
45
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
93/109
Table 4.25
Overall Foreign
Deposits No.of Respondents Percentage
H.S 3 6
S 2 4
NSNDS 5 10
D.S 5 10
H.D.S 35 70
Total 50 100
Source : Primary Data.
Table 4.25 deals with the satisfaction levels over the foreign exchange
transaction. There is a lot of dissatisfaction which push this factor to 16th
rank. It is important to the bank to give importance for this factor.
7/28/2019 Indian Bank - All Chapters
94/109
Chart 4.25
Overall Forex
6 4 10 10
70
0
10
20
30
40
50
60
70
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
95/109
Table 4.26
Mutual Funds
Mutual No.of Respondents Percentage
H.S 3 6
S 2 4
NSNDS 6 12
D.S 9 18
H.D.S 30 60
Total 50 100
Source : Primary Data.
Table 4.26 reflects the satisfactory level of sample respondents
regarding the mutual funds facility extended by the Indian Bank. It is highly
a discouraging factor as 39 out of 50 respondents are found in dissatisfactorycategories. Moreover the negative weights of 61 pulls this factor as the last
but one factor i.e, 16th Rank. Diagram 4.26 illustrates the fact.
7/28/2019 Indian Bank - All Chapters
96/109
Chart 4.26
Mutual Funds
6 4 12 18 60
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
97/109
Table 4.27
NRI Facilities
NRI No.of Respondents Percentage
H.S 7 14
S 23 46
NSNDS 15 30
D.S 2 4
H.D.S 3 6
Total 50 100
Source : Primary Data.
Table 4.27 shows the satisfactory level of sample respondents
regarding the NRI facilities extended by the Indian Bank. Out of 50 people
met 30 heaving 60 per cent of sample respondents are happy with NRIfacilities 30 per cent are indifferent and the remaining 5 respondents are
brought under the dissatisfactory categories. The weights score of 29 allots
the rank 15 Diagram 4.27 illustrates the fact.
7/28/2019 Indian Bank - All Chapters
98/109
Chart 4.27
NRI Facilities
14
46
30
46
0
5
10
15
20
25
30
35
40
45
50
H.S S NSNDS D.S H.D.S
7/28/2019 Indian Bank - All Chapters
99/109
Table 4.28
Overall Performance
Overall No.of Respondents Percentage
H.S 22 44
S 8 16
NSNDS 9 18
D.S 6 12
H.D.S 5 10
Total 50 100
Source : Primary Data.
Table 4.28 shows the overall performance of Indian Bank perceived
by the sample respondents. Out of 50 people met, 60 per cent of sample
respondents are happy with the performance of the bank 22% comes underdissatisfaction categories and 18% stands indifferent.
7/28/2019 Indian Bank - All Chapters
100/109
Chart 4.28
Overall Performance
H.S, 44
S, 16
NSNDS, 18
D.S, 12
H.D.S, 10
7/28/2019 Indian Bank - All Chapters
101/109
Table 4.29
Ranking of Satisfaction levels
S.
No Particulars H.S S NSNDS D.S H.D.S
Weighted
Score Rank
1 Agency Services 6 15 0 - -24 -3 11
2 Int.on. Deposits 6 2 0 -40 -10 -42 13
3 Loan Facility 10 20 0 - -10 20 9
4 Int. on. Loan 36 12 0 -9 - 39 6
5 Opening an Account - - 0 -46 -8 -54 14
6 Overdraft 4 3 0 -5 -70 -68 17
7 Repayment of Deposits 20 10 0 -10 -20 0 10
8 Minimum Balance 24 38 0 - - 62 1
9 Pass Book 30 30 0 - - 60 2
10 ATM Service 20 34 0 - - 54 4
11 Credit / Debit Card 30 25 0 - - 55 3
12 Mail / Phone Transfer 40 20 0 -3 -4 53 5
13 Nomination facility 6 2 0 -20 -10 -22 12
14 Overall forex 6 2 0 -5 -70 -67 16
15 Mutual funds 6 2 0 -9 -60 -61 15
16 NRI facilities 14 23 0 -2 -6 29 8
17 Overall Performance 44 8 0 -6 -10 36 7
Weights :-
H.S = +2
S = +1
NSNDS = 0
D.S = -1H.D.S = -2
CHAPTER V
SUMMARY OF FINDINGS, SUGGESTIONS &
CONCLUSION
FINDINGS
7/28/2019 Indian Bank - All Chapters
102/109
A bank is an institution, which deals with money and credit. This
bank is an intermediary, which handles other peoples money both for their
advantage and to its own profit.
A person who is doing the banking business is called a Banker. A
banker must be a man of wisdom. He deals with others money but with his
own mental facilities. A banker is not only acting as a depository agent but
also as a Depository of Financial Advices.
Banking system plays a vital role in the economic development of a
country. The structure of the banking system in India consists of two parts.
Sex wise classification clearly shows major respondents are males.
It is inferred that majority of the sample respondents are in the age
group of 36-45 years.
Among the Indian Bank customers (sample respondents) 8 per cent
have studied below H.S.C, 40 per cent are graduates and 50 per cent are post
graduates. Just 2 per cent of them are have technical qualification.
Out of 50 respondents, 20 of them which accounts for 40 per cent are
businessmen and 20 per cent are labourers.
majority of the sample respondents earns between Rs.10,000 to
Rs.25,000. Exactly 20 per cent of the respondents have income of Rs.5000
to Rs.10,000. Nearly 32 per cent are in the income group of above
Rs.25,000.
7/28/2019 Indian Bank - All Chapters
103/109
Nearly 35 respondents which account for 70 per cent of them are
married and 30 per cent of them are unmarried. Hence, majority of them are
married.
Nearly 50 per cent of the sample respondents made saving Bank
deposit and 30 per cent of them are fixed deposit holders.
Out of 50 respondents 21 which account for 42 per cent used their
account for business purpose and 50 per cent of the respondents used it as for
saving purpose.
Majority of the respondents were using their accounts at irregular
intervals.
Nearly 70% of the sample respondents availed some kind of loan.
Only 30% of them not getting any loans.
Nearly 60 per cent of the customers major problem is cheque
collection in time and 20 per cent faced it over demand draft facilities.
Nearly 30 per cent of the respondents expressed satisfaction on
Agency services. Among 40 per cent of the sample respondents, Normal
attitude is prevailed in the agency service. Nearly 24 per cent of them
expressed their, dissatisfaction over the agency services.
Most of the customers (80 per cent) were indifferent over the interest
on deposits. Only very few customers expressed satisfaction.
The thrilling position of Indian Bank units reference to opening an
account. It is highly shocking to see that not even a single is seen under the
categories of satisfaction. All of them are under the dissatisfaction
7/28/2019 Indian Bank - All Chapters
104/109
categories and weighted negative score of 54 purses the factor to 14th rank
only of 17.
Most of the sample respondents have infavourable opinions, thisfactor in pushed to last rank by the sample respondents.
The repayment of deposits and its rote in satisfying the customer in
Indian Bank. The Break even for weight score brings the customers to rank
this factor to 10th Diagram 4.18 is used to illustrate the fact.
There is a high level of satisfaction observed as 90% of sample
respondents are happy with this service. The weighted score of 60 pulled
this factor as 2nd Rank. Indian Bank can be proud of this service and it has to
keep it up as many more banker were situated. Diagram 4.20, is used
illustrates the fact.
Out of 50 respondents met, 44 respondents are happy with be ATM
services with a little minimum balance bill really keep the customer a long
run A good strategy were adopted by the Indian Bank. This fact is
illustrated in the following diagram.
The satisfactory level on mail and phone transfer out of 50
respondents met, 40 respondents accounting 80 per cent are categorized as
satisfied. The score of 53 allocates the 5th rank as per the weightage.
It is not interesting to see that out of 50 people met only 5 people
being 10% come under the categories of satisfaction, 20 people are
indifferent, another 20 are dissatisfied and the last 5 respondents are highly
dissatisfied.
7/28/2019 Indian Bank - All Chapters
105/109
Out of 50 people met, 60 per cent of sample respondents are happy
with the performance of the bank 22% comes under dissatisfaction
categories and 18% stands indifferent.
7/28/2019 Indian Bank - All Chapters
106/109
SUGGESTIONS
1. The bank has to maintain its present state on ATM services, Debit /
Credit card services.
2. It is the responsibility of the bank to maintain the present state on
maintenance of Pass Book.
3. The bank should ensure a fair return of the loans sanctioned.
4. Delays on collecting the cheques must be avoided in the future.
5. The bank should try to create awareness over the forex
transactions.
6. The negatively scaled factors should given importance.
7. The mutual fund schemes must be brought in to attention.
7/28/2019 Indian Bank - All Chapters
107/109
CONCLUSION
From the above cited analysis it is clear that the Indian Bank,
Paramathi Branch, Namakkal had gained much satisfaction among its
customers. Out of the 17 factors studied 10 factors scaled positive. The
Paramathi Branch, Namakkal region is one of the industrial and agricultural
region. Banking services are un avoidable for the development of such area.
By understanding this fact, the bank had done its services and attains a
rightful place in the minds of the customers. It the bank continuous its
present workings with care & Precaution in the future. It is the victory of the
bank towards the attainment of its objectives.
7/28/2019 Indian Bank - All Chapters
108/109
BIBLIOGRAPHY
1. Annual Reports of paramathi Indian Bank, Namakkal District.
2. Towards Better, Customer Service Indian Bank Journals.
3. Banking Theory Law and Practice D.S.N. Maheswari, R.R.Paul-
Kalyani publishers, Ludhiana, New Delhi, Noida (U.P),
Hyderabad, Chennai, Calcutta, Cuttack.
4. Practical Banking Advances H.L.Bedi & V.K.Hardikar UBs
publishers distributor Ltd, New Delhi, Bangalore, Chennai,
Kolkata, Patna, Kanpur, London 2001.
5. Banking Theory and Practice S.N. Maheswari, R.R.Paul
Kalyani publishers, Ludhiana, New Delhi, Noida (U.P), Hydrebad,
Chennai, Calcutta, Cuttack.
6. Banking Theory Law and Practice E.Gordon, K.Natarajan
Himalaya publishing House in 2002, New Delhi, Nagpur,
Bangalore, Hyderabad.
7. Financial Accounting S.P. Jain, K.L.Narang.
8. Financial Accounting R.L. Gupta, V.K.Gupta Sultanchand and
sons educational publishers in 1999.
9. Financial Accounting S.P. Jain, K.L.Narang Kalyani
publishers, New Delhi First edition 2001.
10. Banking and Financial system
7/28/2019 Indian Bank - All Chapters
109/109
- DR. K. Nirmala Prasad & J.Chandradass.
Mumbai, Delhi, Nagpur, Bangalore, Hydrebad Fifth
Edition, 2000.
11. Banking Theory law & Practice
- E. Gordon K.Natarajan,
- Himalaya Publishing House Fourteenth Revised
Edition, 1999.
12. Banking Theory & Practice Shekhar & Shekhar, Vikas
publishing House Pvt Ltd New Delhi 18th Revised & Enlarged
Edition.