CHAPTER IV COMPARATIVE ANALYSIS OF VARIOUS SERVICES OFFERED IN PUBLIC AND PRIVATE SECTOR BANKS

CHAPTER IV COMPARATIVE ANALYSIS OF VARIOUS SERVICES OFFERED IN PUBLIC AND PRIVATE SECTOR BANKS In this chapter the researcher has carried out a detailed analysis of the primary data collected for this study. 4.1 Frequency distribution Age play an essential role in determining the satisfaction level of customers. The satisfaction level varies according to the age of the customers. The old generation customers do not expect more services rendered by the, but the new generation customers, who live in a highly technology dominated environment expect more than the old generation customers. If a bank does not provide service required or expected by them, they easily switch over to other bank where their expectations are fulfilled. In the present study, the age of customers is segmented into five categories viz. below 25 years, 26-35 years, 36-45 years, 46-55 years and above 55 years. The percentage analysis on this age factor is presented in the following table. Table No. 4.1 Age wise classification Public sector bank Type Private sector bank Below 25 years 26-35 years Age 36-45 years 46-55 years Above 55 years Count 105 73 77 41 4 300 % 35.0% 24.3% 25.7% 13.7% 1.3% 100.0% Count 84 60 36 20 4 204 % 41.2% 29.4% 17.6% 9.8% 2.0% 100.0% Count 189 133 113 61 8 504 % 37.5% 26.4% 22.4% 12.1% 1.6% 100.0% 86

From the above table it was found that 35 percent of the total customers of public sector are below 25 years, 24.3 percent of the customers are in the age group of 26-35 years, 25.7 percent belong to 36-45 years, 13.7 percent are in the age group between 46 and 55 years and only 1.3 percent belong to age group above 55 years. Similarly in case of private sector 41.2 percent belong to the age group below 25 years, 29.4 percent are in the age group of 26-35 years, 17.6 percent of the customers were between 36 and 45 years, 9.8 percent belong to 46-55 years and 2 percent belong to age group of above 55 years. From the total sample of 504 customers from both public sector and private sector, 37.5 percent of the customers fall under the category of below 25 years. This shows that the young generation use banking services more compared to the customers of other age groups. Expectations of male and female with regard to the services provided by the bank are varied, based on the situation, work environment, family background, occupation etc. The satisfaction level is almost based on the frequency and purpose of usage of the services provided by the bank. In the present study, the sex of customers is segmented into two categories viz. male and female. The percentage analysis on this sex factor is presented in the following table. Table No. 4.2 Gender wise distribution Type Public sector Private sector Gender Male Female Count 159 141 300 % 53.0% 47.0% 100.0% Count 124 80 204 % 60.8% 39.2% 100.0% Count 283 221 504 % 56.2% 43.8% 100.0% 87

From the above table it was found that 53 percent of respondents of public sector are male and 47 percent are female and as far as private sector are concerned 60.8 percent of the respondents are male and 39.2 percent are female. This shows that male respondent s usage of banking services are more than the female sector both in public sector as well as in private sector. The marital status of an individual also plays a crucial role in determining the level of satisfaction with regard to the services of a bank. The nature of transactions carried out by the customers before and after marriage may be the vital reason for variation in customer satisfaction among married, single and others are concerned. In the present study, the marital status of customers is segmented into three categories viz. married, single and others. The percentage analysis on the marital status of customers is presented in the following table. Table No. 4.3 Marital Status of the respondents Type Marital Status Married Single Others Public sector Private sector Count 167 131 2 300 % 55.7% 43.7%.7% 100.0% Count 96 108 0 204 % 47.1% 52.9% 0% 100.0% Count 263 239 2 504 % 52.2% 47.4%.4% 100.0% 88

It was found from the above table that 55.7 percent of the respondents are married, 43.7 percent are single and 0.7 percent belong to the other category in public sector whereas in private sector, 47.1 percent of the respondents are married, 52.9 percent are single and no respondent belong to the other category of marital status. It was also noted that majority of the respondents of the public sector are married and in case of private sector majority of the respondents are single. The educational level of customers plays a vital role in determining the level of satisfaction of customers. As the educational qualification increases, the usage of services provided by the may also increase. The illiterate customers may only deposit or withdraw cash from the, but the educated people may use a wide range of services provided by the according to their requirement. In the present study, the educational level of customers is segmented into six categories viz. illiterate, up to +2, degree/diploma, post graduate, professional degree and others. The percentage analysis on this education factor of customers is presented in the following table. Table No. 4.4 Educational level of customers Education Type Illiterate Upto +2 Degree/diploma Post Profession graduate Others Public sector Private sector Count 30 40 155 38 27 10 300 % 10.0% 13.3% 51.7% 12.7% 9.0% 3.3% 100.0% Count 12 8 120 32 20 12 204 % 5.9% 3.9% 58.8% 15.7% 9.8% 5.9% 100.0% Count 42 48 275 70 47 22 504 % 8.3% 9.5% 54.6% 13.9% 9.3% 4.4% 100.0% 89

It was found from the analysis that majority of the respondents, more than 50 percent, both in public sector and private sector are holders of degree/diploma. This shows that when compared to the other categories of educational levels of the respondents, respondents who are educated up to degree/diploma carry out more transactions with their. In public sector, 10 percent of the respondents are illiterate, 13.3 percent have education up to +2, 12.7 percent are post graduates, 9 percent are professional degree holders and 3.3 percent belong to other category and in case of private sector 5.9 percent are illiterate, 3.9 percent have education up to +2, 15.7 percent are post graduates, 9.8 percent are professional degree holders and 5.9 percent belong to the other category. Monthly income of the customer has a crucial role to play while availing the services of a bank. Higher the income, more will be the usage of the services and lower earnings have limited usage of bank services. Lower income group of customers use only the basic services provided by the bank and higher income group of people use a variety of services according to their requirement. In the present study, the income level of customers are classified into five groups viz. below Rs.10,000, Rs.10001-15,000, Rs.15,001-20,000, Rs.20,001-25,000 and above Rs.25,000. The percentage analysis on this monthly income factor of customers is presented in the following table. The table given below shows the income wise classification of respondents in public sector and private sector. 42 percent of the respondents earn a monthly income below Rs.10,000, 27.7 percent earn income between Rs.10,001 and Rs.15,000, 11.7 percent earn between Rs.15,001 and Rs.20,000, 9.3 percent earn Rs.20,001 to Rs.25,000 and 9.3 percent earn income above Rs.25,000 in public sector. Whereas in private sector 37.3 percent earn income below Rs.10,000, 17.6 percent earn between Rs.10,001 and Rs.15,000, 17.6 percent earn Rs.15,001 to 90

Rs.20,000, 15.7 percent earn Rs.20,001 to Rs.25,000 and 11.8 percent earn monthly income above Rs.25,000. Table No. 4.5 Monthly income of the customers Income Type Below Rs.10001- Rs.15001- Rs.20001- Rs.10000 15000 20000 25000 Above Rs.25000 Public sector Count 126 83 35 28 28 300 % 42.0% 27.7% 11.7% 9.3% 9.3% 100.0% Private sector Count 76 36 36 32 24 204 % 37.3% 17.6% 17.6% 15.7% 11.8% 100.0% Count 202 119 71 60 52 504 % 40.1% 23.6% 14.1% 11.9% 10.3% 100.0% The nature of employment of the customers also influences the usage of variety of services of. A businessman use the RTGS facility provided by the bank but an ordinary employee use NEFT facility to transfer funds from one bank to other or within the bank itself. Farmer gets agricultural loan from the bank whereas a professional avails personal loan or mortgage loan to improve his profession or business. The government employee and the home maker may avail housing loan. Thus the occupations of the customers also influence the level of satisfaction from the usage of services. In the present study, the occupation of the customer is divided into seven categories viz. Government employee, employee, business, professional, farmer, home maker and others. The percentage analysis on this occupation factor of customers is presented in the following table. 91

Table No. 4.6 Occupation of the respondents Occupation Type Govt. employee Business Employee Profession Farmer Home maker Others Public sector Private sector Count 23 151 35 29 1 8 53 300 % 7.7% 50.3% 11.7% 9.7% 0.3% 2.7% 17.7% 100.0% Count 12 120 40 8 0 4 20 204 % 5.9% 58.8% 19.6% 3.9% 0% 2.0% 9.8% 100.0% Count 35 271 75 37 1 12 73 504 % 6.9% 53.8% 14.9% 7.3% 0.2% 2.4% 14.5% 100.0% The above table shows the occupation wise classification of the customers of public sector and private sector. 50.3 percent of the public sector customers are private employees, 17.7 percent of the customers belong to the other categories, 11.7 percent of the respondents belong to business category, 9.7 percent are professionals, 7.7 percent respondents are government employees, 2.7 percent are home-makers and 0.3 percent are farmers. As far as the private sector are concerned 58.8 percent are employees, 19.6 percent respondents belong to business group, 9.8 percent belong to other category, 5.9 percent of the respondents are government employees, 3.9 percent are professionals, 2 percent are homemakers and there is no respondent belonging to farmer category of occupation. The family status of a customer influences the level of satisfaction while using the services offered by the bank. The young generation, mostly belonging to the nuclear family and the old generation, generally belonging to joint family system, may have a different opinion on the usage of services and also the level of satisfaction they get while availing a service. 92

In the present study, the family status of customer is classified into two categories, viz. nuclear family and joint family. The percentage analysis on this family status factor of customers is presented in the following table. Table No. 4.7 Family type Family Type Type Nuclear family Joint family Count 196 104 300 Public sector % 65.3% 34.7% 100.0% Count 136 68 204 Private sector % 66.7% 33.3% 100.0% Count 332 172 504 % 65.9% 34.1% 100.0% The above table shows the family status of the respondents of the public sector and private sector. It was noted that 65.3 percent of the respondents of the public sector are from nuclear family and 34.7 percent of the respondents belong to joint family; whereas in case of private sector 66.7 percent belong to nuclear family type and 33.3 percent live in joint family. This shows that the respondents of public sector and private sector equally belong to nuclear and joint family. Maintaining an account with a particular bank is based on the convenience and situation. Location of the bank or account opened by the employer or any other reason may be given for opening and maintaining an account with a specified banker. The bank in which an account is maintained by the customer may be a public sector bank or a private sector bank. Any customer, who is a Government employee, always has an account in nationalized bank. Others 93

may have an account in either a public or private sector or sometimes in both the type of. In the present study, the type of bank in which the account is maintained by the customer is presented in the following table. Table No. 4.8 Maintaining an account with a specific banker Type No. of customers Public sector Private sector Count 300 300 % 100.0% 100.0 Count 204 204 % 100.0% 100.0 Count 504 504 % 100.0% 100.0 The above table shows that among the total sample of 504, 300 respondents do transactions with public sector and 204 respondents maintain and do transactions with private sector. The type of account maintained by the customer may be different based on the necessity or requirements. Current account is operated only by the businessmen and the other accounts are maintained by the general public including the businessmen. In the present study, the type of bank account maintained by the customer is presented in the following table. 94

Table No. 4. 9 Savings bank account Type Public sector Private sector Savings Bank account Yes No Count 285 15 300 % 95.0% 5.0% 100.0% Count 192 12 204 % 94.1% 5.9% 100.0% Count 477 27 504 % 94.6% 5.4% 100.0% It was found from the above table that out of 300 customers in public sector, 285 customers have savings bank account and 15 customers do not maintain savings bank account. In private sector, among 204 customers 192 maintain savings bank account and other do not have savings bank account. Table No. 4.10 Fixed deposit account Type Public sector Private sector Fixed Deposit Yes No Count 12 288 300 % 4.0% 96.0% 100.0% Count 8 196 204 % 3.9% 96.1% 100.0% Count 20 484 504 % 4.0% 96.0% 100.0% 95

In public sector, it was found that out of 300 customers 12 customers have fixed deposit account and 288 customers do not have fixed deposit account. In private sector, among 204 customers only 8 customers have fixed deposit account and other do not have fixed deposit account. Table No. 4.11 Recurring deposit account Type Public sector Private sector Recurring Deposit Yes No Count 2 298 300 % 0.7% 99.3% 100.0% Count 0 204 204 % 0% 100.0% 100.0% Count 2 502 504 % 0.4% 99.6% 100.0% It was found from the above table that out of 300 customers in public sector, only 2 customers have recurring deposit account and 298 customers do not have recurring deposit account. In private sector, among 204 customers only 2 customers have recurring deposit account and other do not have recurring deposit account. Table No. 4.12 Current account Type Public sector Private sector Current account Yes No Count 16 284 300 % 5.3% 94.7% 100.0% Count 12 192 204 % 5.9% 94.1% 100.0% Count 28 476 504 % 5.6% 94.4% 100.0% 96

It was found from the above table that out of 300 customers in public sector, 16 customers have current account and 284 customers do not have current account. In private sector, among 204 customers 12 customers have current account and others do not have current account. Some customers may maintain and operate bank accounts in more than one bank; one from public sector and the other of private sector or both public sector or both private sector. In the present study, the following table shows whether the customer has an account in any other bank other than the one in which he maintains account. Table No. 4.13 Maintaining account with other Type Yes No Public sector bank Private sector bank Count 91 209 300 % 30.3% 69.7% 100.0% Count 76 128 204 % 37.3% 62.7% 100.0% Count 167 337 504 % 33.1% 66.9% 100.0% It was found from the above table that 30.3 percent of customers of public sector and 37.3 percent of customers of private sector maintain accounts with other also and 69.7 percent and 62.7 percent of customers of public sector and private sector respectively do not have account with other. 97

The services offered by a banker to its customers are more and it is according to the varied requirements of the customers. They may be classified into financial and non-financial services. Certain services may involve flow of funds which are identified as financial services and the others which do not involve flow of funds but some amount is deducted as service charges from the customer s bank account and for some services commission is received are called as non financial services. In the present study, the following tables show the list of services offered by the and awareness among customers of public sector and private sector. The primary function of all commercial, whether public sector or private sector, is to receive various types of deposits from its customers who are intended to save their surplus money for future and lend the money received as deposits to the needy customers as loans in many ways so that both the customers and the are benefited financially. The following table shows the awareness among the customers of public and private sector with regard to loans and advances facility offered by their. Table No. 4.14 Loans and advances Type NR Yes No Public sector Private sector Count 2 267 31 300 %.7% 89.0% 10.3% 100.0% Count 0 184 20 204 % 0% 90.2% 9.8% 100.0% Count 2 451 51 504 %.4% 89.5% 10.1% 100.0% 98

The above table shows that among three hundred respondents of public sector only two hundred and sixty seven respondents are aware of the various types of loans provided by their bank, thirty one respondents are not aware of the loans and advances provided by the and there are only two non responses for this. As far as the private sector bank respondents are concerned, one hundred and eighty four are aware of the loans and advances offered by their and twenty customers are not aware of this service. Discounting of bills is a major activity where the banker purchases the bill drawn by the seller on bank s customer and pays him the amount of bill after deducting some amount as discount or commission. This is one of the major sources of a bank s income. Following is the table that shows the awareness among the customers of public and private sector about this service being provided by their banker. Table No. 4.15 Bills Discounting Type NR YES NO Public sector Private sector Count 39 184 77 300 % 13.0% 61.3% 25.7% 100.0% Count 20 128 56 204 % 9.8% 62.7% 27.5% 100.0% Count 59 312 133 504 % 11.7% 61.9% 26.4% 100.0% From the above table it was found that 61.3 percent of the customers of the public sector know about the bills discounting facility offered by their bankers, 25.7 percent are not aware and 13 percent are the non respondents for this. In case of private sector bank customers, 62.7 percent are 99

aware of this service, 27.5 percent are not aware and 9.8 percent are non respondents for this. Issuing traveler s cheque is one of the general utility functions of a bank. These cheques are issued to help customers to carry money by way of cheques while travelling. This helps the customer to spend money where ever he goes without any risk both in Indian rupees and internationally traded currencies. The table given below shows the awareness of the customers of public sector and private sector about this facility extended by the bank. The table given below shows that 52 percent of the respondents of the public sector are aware of the traveller s cheque issued by their for various purposes, 35 percent are not aware of this service and 13 percent have no idea about this service. In private sector 60.8 percent of the customers have reported that they are aware of this service, 31.4 percent are not aware of this service and 7.8 percent have not responded for this. Table No. 4.16 Traveler s Cheque Type NR Yes No Public sector Private sector Count 39 156 105 300 % 13.0% 52.0% 35.0% 100.0% Count 16 124 64 204 % 7.8% 60.8% 31.4% 100.0% Count 55 280 169 504 % 10.9% 55.6% 33.5% 100.0% Among the various types of financial assistance provided by the, whether it is public sector or private sector, export import finance plays an important role in enhancing the foreign trade in our country. It helps the trader 100

to go in for foreign trade and also gives the nation foreign exchange opportunities. The following table shows the awareness among the bank customers about this service. Table No. 4.17 Export Import finance Public sector Private sector Type NR Yes No Count 56 137 107 300 % 18.7% 45.7% 35.7% 100.0% Count 44 80 80 204 % 21.6% 39.2% 39.2% 100.0% Count 100 217 187 504 % 19.8% 43.1% 37.1% 100.0% The above table shows that out of 300 respondents of the public sector, 137 customers reported that their bank offers export import finance assistance for the traders, 107 customers said that their bank does not offer this facility and 56 customers are non respondents. In private sector 21.6 percent are non respondents, 39.2 percent are aware of this service and 39.2 percent have said that their do not offer this service. Payment in cash of a cheque is called as encashment of cheque. It means to exchange a cheque for money. The following table shows the awareness among the bank customers about this service. 101

Table No. 4.18 Encashment of cheque Type NR Yes No Public sector Count 42 177 81 300 % 14.0% 59.0% 27.0% 100.0% Private sector Count 32 148 24 204 % 15.7% 72.5% 11.8% 100.0% Count 74 325 105 504 % 14.7% 64.5% 20.8% 100.0% The above table shows that 59 percent of the respondents of the public sector said that their offer encashment of cheque facility, 27 percent reported that their does not offer this service and 14 percent have not responded to this question. In private sector 11.8 percent are not aware of this facility, 72.5 percent are aware of this service and 15.7 percent have not responded for this. In order to make safe payment of money to third parties offer demand draft service. These are issued on the basis of request of the customer. Following table shows the awareness of customers about the issue of demand draft by. From the table given below, it was noted that 93 percent of the customers of the public sector are aware of the issue of demand draft by their, 5.7 percent reported that their does not issue demand draft and 1.3 percent are non respondents, whereas in private sector 92.2 percent of the respondents agreed that their are issuing DD, 5.9 percent of the consumers are not aware of this and 2 percent are non respondents. 102

Table No. 4.19 Issue of DD Public sector Private sector Type NR Yes No Count 4 279 17 300 % 1.3% 93.0% 5.7% 100.0% Count 4 188 12 204 % 2.0% 92.2% 5.9% 100.0% Count 8 467 29 504 % 1.6% 92.7% 5.8% 100.0% Cheque is an unconditional order in writing drawn on a specified banker drawn by its customer. Cheques make payment easier in case of large transfer of funds between two parties. Following table shows the awareness among the customers of public and private sector with regard to issue of cheque book by their bankers. Table No. 4.20 Issue of cheque book Public sector Private sector Type NR Yes No Count 4 282 14 300 % 1.3% 94.0% 4.7% 100.0% Count 4 192 8 204 % 2.0% 94.1% 3.9% 100.0% Count 8 474 22 504 % 1.6% 94.0% 4.4% 100.0% The above table shows that in case of public sector 94 percent of the customers are aware of the issue of cheque book facility provided by their 103

bank, 4.7 percent have reported that their banker does not issue cheque book and the non responses amounted to 1.3 percent of the total customers of the public sector. In private sector, 94 percent are aware of this facility, 3.9 percent are not aware of this facility and 2 percent are non respondents. Some, whether public sector or private sector allow the NRI s to maintain account with them for making transactions to convert foreign currency into Indian rupee or vice versa. The bank receives the money that has been sent from the person in the country in which the money has been earned. The following table shows the awareness among the customers regarding the foreign inward remittance facility extended by their. Table No. 4.21 Foreign inward remittance Public sector Private sector Type NR Yes No Count 55 139 106 300 % 18.3% 46.3% 35.3% 100.0% Count 32 100 72 204 % 15.7% 49.0% 35.3% 100.0% Count 87 239 178 504 % 17.3% 47.4% 35.3% 100.0% From the above table it was found that 46.3 percent and 49 percent of customers of public sector and private sector are aware of this service, 35.3 percent customers of public sector and 35.3 percent of private sector have reported that their do not offer this service and the non respondents amounted to 18.3 percent in public sector bank and 15.7 percent in private sector. 104

One of the primary objectives of is to accept deposits from their customers in various forms. The main objective of savings account is to create savings habit among the individuals, current account is meant for businessman and recurring deposits are more suitable for individuals, who are ready to save a specified sum of amount at regular intervals. The following table shows the responses of the customers of public sector and private sector with regard to the various types of deposits. Table No. 4.22 Current/savings/recurring/fixed deposits Public sector Private sector Type NR Yes No Count 3 287 10 300 % 1.0% 95.7% 3.3% 100.0% Count 0 204 0 204 % 0% 100.0% 0% 100.0% Count 3 491 10 504 %.6% 97.4% 2.0% 100.0% The above table shows the awareness among the customers of the public sector and private sector with regard to the various types of deposits accepted by their. It was noted that in case of public sector 95.7 percent said that their accept savings, current, fixed and recurring deposits, 3.3 percent reported that their does not accept deposits and only percent has not recorded their responses for this. In case of private sector 100 percent of the customers are aware of the deposits accepted by their. This shows that private sector bank customers are more aware of the deposits accepted by their compared to the customers of the public sector. 105

Safe deposit locker service is one of the general utility services offered by the bank where the customers can keep their valuables safely by paying rent for using the lockers. The customers are allowed to access their lockers during the working hours of the bank. The table given below shows the awareness among the customers regarding this service. Table No. 4.23 Locker services Public sector Private sector Type NR Yes No Count 9 245 46 300 % 3.0% 81.7% 15.3% 100.0% Count 4 176 24 204 % 2.0% 86.3% 11.8% 100.0% Count 13 421 70 504 % 2.6% 83.5% 13.9% 100.0% The above table shows the percentage analysis about the awareness among the bank customers with reference to the locker services. In public sector 81.7 percent of the customers are aware of the locker service provided by their bank, 15.3 percent are not aware of this service and 3 percent has not responded to this. Similarly in case of private sector 86.3 percent of the customers are aware of the locker services, 11.8 percent have said that their does not offer this facility and 2 percent have not responded to this question. The bank customer, who is a supplier of materials to other firms, raises an invoice/bill and can lodge the bill in his bank for encashment. If the customer is trustworthy, his bills will be purchased and discounted immediately and the amount is credited to his account after recovering the service charges. This bill will be sent to other party for collection. This 106

service is rendered by the in order to help their customer who is a businessman to carry out his business smoothly. The following table shows the awareness among the bank customers about payment of bills by their bankers in this behalf. Table No. 4.24 Payment of bills Type NR Yes No Count 15 228 57 300 Public sector % 5.0% 76.0% 19.0% 100.0% Count 8 164 32 204 Private sector % 3.9% 80.4% 15.7% 100.0% Count 23 392 89 504 % 4.6% 77.8% 17.7% 100.0% From the above table it is noted that 76 percent of the customers of the public sector know that their banker pays bills on behalf of them, 19 percent said that their do not pay bills and 5 percent has not responded to this. In case of private sector 80.4 percent of the customers have said that their help their customers in paying their bills, 15.7 percent of the respondents do not know about this service and 3.9 percent has not responded for this. As an agency service, when a bill is presented for payment, the banker will send the bill to the other party for payment. The paying banker will check for the credit balance of the account holder and validates payment to the sender. The collecting banker immediately makes credit for the bill amount in his customer s account. The below given table shows the awareness among the customers of public sector and private sector regarding the collection of bills services rendered by the. 107

Table No. 4.25 Collection of bills Type NR Yes No Public sector Count 26 208 66 300 % 8.7% 69.3% 22.0% 100.0% Private sector Count 8 164 32 204 % 3.9% 80.4% 15.7% 100.0% Count 34 372 98 504 % 6.7% 73.8% 19.4% 100.0% From the above table it was noted that 69.3 percent of the customers of public sector and 80.4 percent customers of the private sector are aware of the collection of bills service, 22 percent in public sector and 15.7 percent in private sector reported that their does not provide this service and 8.7 percent and 3.9 percent of the public sector and private sector have not responded for this question. For the transactions carried out by the customers during a particular period of time the banker sends a statement of account at the request of the customer to the specified address or to the email address of the customer. This is to verify the transactions made by a customer during a particular time period. The following table shows the awareness of the customers to this particular service rendered by the bank. Table No. 4.26 Sending of statement of accounts Type NR Yes No Public sector Count 27 213 60 300 % 9.0% 71.0% 20.0% 100.0% Private sector Count 12 176 16 204 % 5.9% 86.3% 7.8% 100.0% Count 39 389 76 504 % 7.7% 77.2% 15.1% 100.0% 108

71 percent of customers in public sector and 86.3 percent of customers in private sector have said that their send statement of accounts, 20 percent of public sector bank customers and 7.8 percent of the private sector bank customers have said that their bank do not provide this service and non responses are 9 percent customers in public sector and 5.9 percent in private sector bank. Sometimes a customer may approach a bank or make call to the bank for queries and it is the sole responsibility of the bank to make replies to such enquiries. Only when such queries are clarified the customer will feel satisfied with the responsive attitude of the banker. The following table shows the awareness among the customers of public sector and private sector regarding this service. Table No. 4.27 Reply to queries Type NR Yes No Public sector Count 35 202 63 300 % 11.7% 67.3% 21.0% 100.0% Private sector Count 28 156 20 204 % 13.7% 76.5% 9.8% 100.0% Count 63 358 83 504 % 12.5% 71.0% 16.5% 100.0% The above table shows the awareness among the customers relating to the reply of queries service provided by the. 67.3 percent and 76.5 percent of the customers of public sector and private sector respectively have reported that their bank offer this service, 21 percent and 9.8 percent customers of public sector and private sector have said that their bank do not render this service and the non responses for this are 11.7 109

percent and 13.7 percent in public sector and private sector respectively. Automated teller machine is a device that allows the bank customer to withdraw cash from his account without human intervention. This facility helps the banker to avoid long queues of their customer waiting to withdraw money from their account. It also helps the customer to withdraw cash from his account at any time even during public holidays and off the business hours of the bank. The following table shows the awareness among the customers of public sector and private sector about the ATM service provided by their respective. Table No. 4.28 ATM Public sector Private sector Type NR Yes No Count 5 288 7 300 % 1.7% 96.0% 2.3% 100.0% Count 0 204 0 204 % 0% 100.0% 0% 100.0% Count 5 492 7 504 % 1.0% 97.6% 1.4% 100.0% From the above table it was found that 100 percent of customers of private sector and 96 percent of customers of public sector have recorded that their offers ATM facility to their customers, 2.3 percent of customers of public sector have said that their bank does not provide this ATM facility and 1.7 percent are non respondents. One of the latest technologies in the banking sector is the online banking which helps the customer to carry out transactions like transfer of 110

funds from one account to another, pay bills, purchase online and make payment online, etc. with the use of computer in a few minutes without much difficulty. Following table shows the awareness among customers about this services which is offered by their banker. Table No. 4.29 Online banking Public sector Private sector Type NR Yes No Count 6 273 21 300 % 2.0% 91.0% 7.0% 100.0% Count 4 200 0 204 % 2.0% 98.0% 0% 100.0% Count 10 473 21 504 % 2.0% 93.8% 4.2% 100.0% The above table shows that 91 percent of customers in public sector and 98 percent of customers in private sector are aware of the online banking service provided by their, 2 percent each from customers of public sector and private sector are non respondents and 7 percent of the customers of the public sector have said that their does not provide this service. Credit cards are issued by as a method of payment and it authorizes the possessor to buy goods or services on credit basis. It allows the consumers to have a continuous line of credit subject to interest being charged by the banker. The banker will fix a limit of credit on the basis of the credit worthiness of the customer. The following table shows the awareness among the customers of public sector and private sector with regard to this service being offered by their. 111

Table No. 4.30 Credit cards Type NR Yes No Count 8 248 44 300 Public sector % 2.7% 82.7% 14.7% 100.0% Count 4 188 12 204 Private sector % 2.0% 92.2% 5.9% 100.0% Count 12 436 56 504 % 2.4% 86.5% 11.1% 100.0% The percentage analysis of the customers of public sector and private sector in relation to the issue of credit cards to the customers is shown in the above table. It was noted that 82.7 percent of the customers of public sector and 92.2 percent of the customers of private sector are aware of the credit cards being issued by the banker, 14.7 percent and 5.9 percent of customers of public sector and private sector respectively have said that their bank does not offer credit card facility to them and 2.7 percent and 2 percent respectively from public sector and private sector bank customers have not responded to this question. Real Time Gross Settlement(RTGS) and National Electronic Fund Transfer(NEFT) are the recent developments in electronic fund transfer facility offered by to their customers to make fund transfer more easy and quick from one account to another account either within the same bank or branches of other. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. This is the fastest possible money transfer system through the banking channel. Settlement in "real time" means transfer of funds is not subjected to any waiting period. The transactions are settled as soon as they 112

are processed. "Gross settlement" means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. For example, NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon, 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after the designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours. The table given below shows the awareness among the customers of the public sector and private sector regarding this service offered by their. From the table given below it was noted that 46.7 percent of customers of public sector and 51 percent of customers of private sector have knowledge about the RTGS and NEFT facility for transfer of funds offered by their, 35.3 percent of public sector and private sector said that this facility is not available in their bank and 18 percent of public sector and 13.7 percent from private sector have not responded for this. 113

Public sector Private sector Table No. 4.31 RTGS and NEFT Type NR Yes No Count 54 140 106 300 % 18.0% 46.7% 35.3% 100.0% Count 28 104 72 204 % 13.7% 51.0% 35.3% 100.0% Count 82 244 178 504 % 16.3% 48.4% 35.3% 100.0% When a bank provides financial advice to businesses and high net worth individuals, who require specialized advice on capital formation, cash flow and wealth management, it is considered as consultancy services. The bank offers this service to both high net worth individual customers and corporate customers. The customer has to pay service charges for this to the banker. It provides expert knowledge to a third party for a fee. Consulting is most often used when a company needs an outside, expert opinion regarding a business decision. The below given table shows the awareness among the customers of public sector and private sector about this service offered by their. Public sector Private sector Table No. 4.32 Consultancy Type NR Yes No Count 53 147 100 300 % 17.7% 49.0% 33.3% 100.0% Count 28 128 48 204 % 13.7% 62.7% 23.5% 100.0% Count 81 275 148 504 % 16.1% 54.6% 29.4% 100.0% 114

It was noted from the above table that 49 percent from among public sector bank customers and 62.7 percent of private sector customers are aware about this service offered by their, 33.3 percent of public sector bank customers and 23.5 percent of private customers have said that their does not offer this service and 17.7 percent and 13.7 percent customers of public sector and private sector respectively are non respondents. In the recent years are engaging themselves in offering a wide variety of services not only for individual customers but also for corporate customers. One such service is the merchant banking. Through this service the helps the business organization in issue management either by making arrangements regarding buying, selling or subscribing to securities as manager, consultant, advisor or rendering corporate advisory service in relation to such issue management. In short, merchant bankers assist in raising capital and advice the corporate customers on related issues. The following table shows the awareness among customers about this services offered by. Table No. 4.33 Merchant Banking Public sector Private sector Type NR Yes No Count 51 146 103 300 % 17.0% 48.7% 34.3% 100.0% Count 24 120 60 204 % 11.8% 58.8% 29.4% 100.0% Count 75 266 163 504 % 14.9% 52.8% 32.3% 100.0% The above table shows the awareness among the bank customers about merchant banking business rendered by their. It was noted that 48.7 115

percent of the customers of public sector and 58.8 percent of customers of private sector are aware of this service, 34.3 percent from public sector and 29.4 percent from private sector have reported that their banker do not offer this service and the non responses for this question amounted to 17 percent in public sector and 11.8 percent in private sector. Portfolio management refers to the administration of a pool of investment vehicles selected on the basis of clearly articulated investment objectives such as asset protection, capital enhancement, managing different types of securities for minimizing risk and maximizing returns through diversification of funds into different securities etc. on behalf of the client. Banks, in order to help their customers, whether individual or corporate, carryout this work of portfolio management for which the bank receives fees or charges. The table given below shows the awareness among the customers of the public and private sector about this service offered by their banker. Table No. 4.34 Portfolio management Type NR Yes No Public sector Count 60 130 110 300 % 20.0% 43.3% 36.7% 100.0% Private sector Count 36 104 64 204 % 17.6% 51.0% 31.4% 100.0% Count 96 234 174 504 % 19.0% 46.4% 34.5% 100.0% The percentage analysis of the customers of public sector and private sector in relation to the portfolio management service is shown in the above table. It was noted that 43.3 percent of the customers of public 116

sector and 51 percent of the customers of private sector are aware of the portfolio management being offered by the banker, 36.7 percent and 31.4 percent of customers of public sector and private sector respectively have said that their do not offer portfolio management facility to them and 20 percent and 17.6 percent respectively from public sector and private sector customers have not responded to this question. Trustees are nominated on the basis of trust deed and by resolutions. Trustees can do whatever objectives mentioned in the trust deed and they have enough powers to execute it. Administrators are appointed by court directions or by specific will or pro-note to act for a specific purpose. Administrators cannot act on their own and they have to act within the boundaries laid by the court/will. Trustees will be in existence as long as the trust is in vogue but administrators will have to wind up once their purpose is over. Banks act as trustee and administrators for some purpose. The awareness among the customers regarding this is analysed in the below table. Table No. 4.35 Trustee and administration Public sector Private sector Type NR Yes No Count 63 137 100 300 % 21.0% 45.7% 33.3% 100.0% Count 32 116 56 204 % 15.7% 56.9% 27.5% 100.0% Count 95 253 156 504 % 18.8% 50.2% 31.0% 100.0% It was found from the above table that 45.7 percent of customers of public sector and 56.9 percent of customers of private sector know that their banker act as trustee and administrator, 33.3 percent and 27.5 117

percent of customers of public sector and private sector respectively have said that their bank does not act as trustee and administrator and the non responses amounted to 21 percent in public sector bank and 15.7 percent in private sector. On behalf of the Government departments/office, accept taxes and fees to be paid by the customers. This service is offered by in order to help government to collect taxes/fees quickly and customers can pay taxes/fees without waiting in a long queue for hours together. The table given below shows the awareness among the customers about offering of this service by their. Table No. 4.36 Acceptance of Government taxes/fees Type NR Yes No Count 48 180 72 300 Public sector % 16.0% 60.0% 24.0% 100.0% Count 28 132 44 204 Private sector % 13.7% 64.7% 21.6% 100.0% Count 76 312 116 504 % 15.1% 61.9% 23.0% 100.0% The above table shows the awareness among the bank customers about acceptance of government taxes/fees by their. It was noted that 60 percent of the customers of public sector and 64.7 percent of customers of private sector have reported that their bank accept government taxes/fees, 24 percent from public sector and 21.6 percent from private sector have reported that their banker does not offer this service and the non responses for this question amounted to 16 percent in public sector and 13.7 percent in private sector. 118

When any bank allows his customer to open and operate an account for purchasing and selling shares and securities online through their bank then it is said that the bank is offering the demat service. In a demat account, shares and securities are held electronically instead of the customer/investor taking physical possession of certificates. The shares and securities are converted into electronic form for the purpose of easy sale and purchase through. Here the bank act as the depository participant. The table given below shows the awareness among the customers of the public and private sector regarding this service offered by their. Table No. 4.37 Demat Service Type NR Yes No Public sector Private sector Count 60 139 101 300 % 20.0% 46.3% 33.7% 100.0% Count 36 116 52 204 % 17.6% 56.9% 25.5% 100.0% Count 96 255 153 504 % 19.0% 50.6% 30.4% 100.0% The above analysis shows that 46.3 percent of customers of public sector and 56.9 percent of customers of private sector have reported that their offer demat service, 33.7 percent of public sector and 25.5 percent of private sector have reported that their do not offer this service and the non respondents amounted to 20 percent and 17.6 percent in public sector and private sector respectively. It was noted that only 50.6 percent of the total respondents are aware of the demat services provided by the. 119

The Indian government has authorized certain for the sale of gold coins/bars for the benefit of the general public to buy 22ct and 24ct gold as coins/bars. The table given below shows the awareness among the customers of private sector and public sector regarding the retail sale of gold coins/bars by their. Table No. 4.38 Retail sale of gold coins/bars Type NR Yes No Count 51 161 88 300 Public sector % 17.0% 53.7% 29.3% 100.0% Count 24 132 48 204 Private sector % 11.8% 64.7% 23.5% 100.0% Count 75 293 136 504 % 14.9% 58.1% 27.0% 100.0% The above table shows that 53.7 percent and 64.7 percent of customers of public sector and private sector respectively have reported that their sell gold coins/bars, 29.3 percent of customers of public sector and 23.5 percent of customers of private sector have said that their do not sell gold coin/bars and the non respondents amounted to 17 percent and 11.8 percent respectively from the customers of public sector and private sector. Conversion of one currency to another is termed as foreign exchange. Some are given powers by the central government to exchange currencies as authorized dealers in foreign currency. The table given below shows the analysis of awareness among the customers of the public sector and private sector regarding forex services rendered by their. 120

Table No. 4.39 Forex services Type NR Yes No Public sector Private sector Count 60 123 117 300 % 20.0% 41.0% 39.0% 100.0% Count 28 116 60 204 % 13.7% 56.9% 29.4% 100.0% Count 88 239 177 504 % 17.5% 47.4% 35.1% 100.0% The above analysis shows that 41 percent of customers of public sector and 56.9 percent of customers of private sector have said that their engage in conversion of foreign currencies, 39 percent and 29.4 percent of customers of public sector and private sector respectively have reported that their do not provide this service and the non respondents amounted to 20percent in public sector and 13.7 percent in private sector. 4.2 Factor Analysis Factor analysis by Principal Component method was applied on 33 variables and the following results are obtained. Table No. 4.40 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.868 Bartlett's Test of Sphericity Approx. Chi-Square 8097.273 Df 528 Sig..000 Source: Computed data 121

From the above table it was found that the Kaiser-Meyer-Olkin measure of sampling adequacy is 0.868 with Bartlett s test of Sphericity with approximate Chi square value 8097.273 are statistically significant at 5% level and the following communality values are displayed in the table. Table No. 4.41 Communalities Initial Extraction Q1 1.000.713 Q2 1.000.665 Q3 1.000.789 Q4 1.000.699 Q5 1.000.608 Q6 1.000.647 Q7 1.000.551 Q8 1.000.742 Q9 1.000.524 Q10 1.000.669 Q11 1.000.691 Q12 1.000.627 Q13 1.000.561 Q14 1.000.649 Q15 1.000.686 Q16 1.000.673 Q17 1.000.559 Q18 1.000.695 Q19 1.000.619 Q20 1.000.638 Q21 1.000.598 Q22 1.000.580 Q23 1.000.764 Q24 1.000.613 Q25 1.000.528 Q26 1.000.689 Q27 1.000.533 Q28 1.000.600 Q29 1.000.591 Q30 1.000.682 Q31 1.000.683 Q32 1.000..575 Q33 1.000.417 Source: Computed data 122

From the above table it was found that the variance of 33 variables ranges from 0.417 to 0.789. This indicates that ranges of variances vary from 41.7% to 78.9%, which is more appropriate for factor segmentation process. The following 33 variables and their factor segmentation is designated in the table given below. Table No. 4.42 Variance Initial Eigen values Rotation Sums of Squared Loadings Component % of Cumulative % of Cumulative Variance % Variance % 1 9.717 29.444 29.444 4.057 12.293 12.293 2 3.994 12.102 41.547 3.814 11.559 23.852 3 2.146 6.504 48.051 3.521 10.671 34.523 4 1.507 4.567 52.618 3.094 9.377 43.900 5 1.294 3.921 56.538 2.535 7.681 51.581 6 1.192 3.613 60.151 2.127 6.445 58.026 7 1.006 3.049 63.200 1.707 5.174 63.200 8.984 2.983 66.182 9.936 2.836 69.018 10.928 2.811 71.829 11.820 2.485 74.313 12.777 2.353 76.667 13.684 2.073 78.739 14.640 1.939 80.678 15.580 1.757 82.435 16.524 1.588 84.024 17.500 1.514 85.538 18.477 1.445 86.983 19.430 1.303 88.286 20.406 1.231 89.517 21.387 1.172 90.690 22.380 1.153 91.842 23.348 1.055 92.897 24.324.983 93.880 25.295.894 94.774 26.277.841 95.614 27.265.803 96.418 28.248.751 97.169 29.212.641 97.810 30.201.611 98.420 31.193.586 99.006 32.167.506 99.512 33.161.488 100.000 Source: Computed data 123

The above table shows that the 33 variables are reduced into seven predominant factors with individual variances 12.293%, 11.559%, 10.671%, 9.377%, 7.681%, 6.445% and 5.174% and the total variance is 63.2%. This shows that the factor segmentation is meaningful and the following table indicates the factor loadings. Table No. 4.43 Factor Analysis Variables Variables Factor Tangibility Q30 Advanced computer/it to serve the clients.783 Q4 Visually appealing physical facilities.746 Q26 Employees are well dressed and neat.676 Q17 Enough space for uncluttered movement.609 Q33 The location of the bank is good for easy accessibility Reliability.484 Q1 Comprehensive procedural formalities.773 Q18 Error free processing/recording.743 Q14 Right service for the first time.699 Q6 Service as per promised schedule.694 Q5 Sincere interest in solving problems.685 Responsiveness Q2 Sending of timely bank statements.725 Q29 Providing correct response to customers.667 Q15 Enquiries are understood and responded to properly.644 Q25 Well handling during peak hours is good.537 Q7 Time taken by bank to respond to our written communication is appreciable Assurance.476 Q3 Safety of transactions.778 124