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“RETAIL BANKING”
“NATIONAL INSTITUTE OF TECHNOLOGY”
“In partial fulfilment
Master of
Department of Management Studies
National Institute of Technology Mahatma Gandhi Avenue, Durgapur
A Project Report On
“RETAIL BANKING” For
By
Rajesh Kumar
Under the guidance of: “Ms. Aditi Das”
Submitted to:
“NATIONAL INSTITUTE OF TECHNOLOGY”
fulfilment of the requirements for the award of Master of Business Administration (MBA)”
Through
Department of Management Studies National Institute of Technology, Durgapur
Mahatma Gandhi Avenue, Durgapur – 713209 West Bengal, India
1
“NATIONAL INSTITUTE OF TECHNOLOGY”
for the award of the degree of Business Administration (MBA)”
2
DECLARATION
I hereby declare that the project report titled “RETAIL BANKING WITH
REFERENCE TO ALLAHABAD BANK ” is my original work and has not
been published or submitted for any degree, diploma or other similar titles elsewhere.
This has been undertaken for the purpose of partial fulfilment of Master of Business
Administration (MBA) at National Institute of Technology, Durgapur (West Bengal).
Date: 13/ 07/2013 RAJESH KUMAR
Place: Durgapur, West Bengal Roll No.: 12/MBA/23
3
PREFACE
This project report attempts to bring under one cover the entire hard work
and dedication put in by me in the completion of the project work on
Retail Banking with reference to Allahabad Bank.
I have expressed my experiences in my own simple way. I hope who goes
through it will find it interesting and worth reading. All constructive feedback
is cordially invited.
4
ACKNOWLEDGEMENT
It gives me great pleasure in presenting the project report that gives the details of my project on “Retail Banking” carried out at Allahabad Bank, City Centre Branch, Durgapur (West Bengal). It is impossible to list all the people who have helped me during my project. I take this opportunity to express my whole hearted thanks to Ms. Aditi Das (Chief Manager) at Allahabad Bank who has treated me as a bank employee & helped me in all my queries personally. I would also like to express my deep sense of gratitude towards all managers, staff, & to all those who directly or indirectly helped me in successfully execution of my work. Lastly but most essentially I would like to thank Mr. Sailaja Shankar Bhattacharya (Senior Manager) without his help it wouldn’t be possible for me to complete the project at the stipulated period of time.
Rajesh Kumar
Roll no.: 12/MBA/23
Session: 2012-14
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CONTENTS
A. Executive Summary 7-11
B. Introduction to the concept 12-15
C. Industry profile 16
D. Company profile 17-19
- Product/Services Profile 20-26
- Workflow model (end to end) 27-28
E. Mckinsey’s Seven S Model 29-31
-Structure 32
-Skill 33
-Style 33
-Strategy 34-35
-System 35
-Staff 35
-Shared Values 36
-SWOT Analysis 37-38
F. Research Methodology 39
- Title of the Project 40
- Statement of the problem 40
- Objectives 40
- Operational definitions 41
- Data collection 41
- Statistical Tools used for research 41
- Sampling Technique – Sampling Unit, Sample Size and 42-44
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Sampling method.
- Plan of Analysis 45
- Limitations to the study 46
G. Data Analysis and Interpretation 47-66
H. Summary of findings 67-68
I. Suggestions 69-71
J. Conclusions – Future Growth 72
K. Learning Experience 73
L. Annexure 74
- Financial Statements 75-80
- Questionnaires 81-83
- Bibliography 84
7
8
EXECUTIVE SUMMARY TITLE OF PROJECT
“A Study on Retail Banking with special reference to ALLAHABAD BANK”
STATEMENT OF THE PROBLEM As there are immense opportunities of the retail banking in India. This
dissertation is on the issues and challenges in the retail banking because of the
competition of the various banks and the customer satisfaction of the services
which the banks are providing and at the same time to solve the complaints of
the customer and maintaining the sound relationship for the future and by this
way to estimate the future growth of the retail banking. OBJECTIVES
� To study the issues and challenges in retail banking.
� To study the recent trends in retail banking.
� To ensure high satisfaction level and reduce percentage of
complaints of customers in retail banking.
� To estimate the future growth of Indian retail banking.
� To understand Optimization of retail banking channels.
� To suggest strategies for improvement in Customer Service.
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DATA COLLECTION Data was collected from two sources-primary and secondary sources.
1. Primary data collection- The primary data was collected by means
of survey. It was collected from different customers through
questionnaire.
2. Secondary data collection-This data was collected from
Internet, Company’s websites, Books & Magazines.
SAMPLE SIZE
Sample size was restricted to 50 respondents, since it was not possible to cover
the whole universe in the available time period. SAMPLING METHOD For this research Non- Probability Convenience Sampling has been used
because time limit for the completion of the work is limited and also managers
and employees were not available all the time.
Area of Study – Durgapur, West Bengal Duration - 2 months (13th May ’13 – 13th July ’13)
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SUMMARY OF FINDINGS
� 90% of customers are happy with the bank timings & they belief that
it is very good.
� 80% of respondents like the branch ambience & layout & find it
friendly. 80% of respondents said branch was clean and well
maintained.
� Respondents were of view that Branch personnel had listened to them
patiently and have been able to respond to their queries and
clarifications.
� 74% of respondents responded that Branch personnel had been very
helpful and courteous.
� 72% of respondents opinion that branch personnel does ‘Need
Analysis’ & ‘Risk Assessment’ of customer savings before
recommending any investment option to them.
� 86% of respondents that branch personnel are aware of Product and
Services and responded to your queries.
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SUGGESTIONS
� As 10% customer response is not good for the clarification of the queries
response towards them so bank personnel should improve this issue
because customer is a source through which business can be increase and
satisfy customers is a source to create more customers, with reference to
table no. 4.
� As it is only 10% respondent said that sometime there was a error in the
transaction happened so to avoid these kinds of errors should be avoided
because it is unnecessarily results in wastage of time for both staff
members and service rendered, with reference to table no. 9.
� With reference to table no. 6, large number of branch personnel should do ‘Need Analysis’ & ‘Risk Assessment’ before recommending any investment option to customer.
� With reference to table no. 7, more branch personnel should be aware of
Product and Services and responded to customer’s queries.
� With reference to table no. 10, Allahabad Bank should look into the
feedback provided by customer and takes necessary action wherever
required.
� With reference to table no. 12, Allahabad Bank should focus on Mahila
Sanchay Saving Bank account as small 10% of customer likes this.
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RETAIL BANKING AN INTRODUCTION Retail banking has become a very important component in the business mix of
banks. Retail banking offers multiple comfort factors for banks to do business.
Large and divergent customer base across income segment offers huge scope
for banks to develop and offer multiple products and services. In addition to
traditional products and services offered by banks over the years, the retail
model has undergone rapid innovation in the past decade with regard to
products, processes, people and technology.
Technology has become the driver for retail banking explosion, and technology
products like ATM, Internet Banking, Mobile Banking, Card products like
Debit Cards and Credit Cards and remittance products like RTGS and NEFT are
making their presence felt in retail space. Banks are embracing different
strategies, redesigning their conventional business silos, reengineering their
channels, product and services to increase the share of customer wallet. A bank functions can be divided into various divisions like: Retail/Personal Banking: This division provides a range of financial services
to individual customers and small companies. It operates mainly through branch
networks. Retail banking includes routine transactions like deposits and withdrawals of
money; money transfer; foreign currency exchange and traveller's cheque
encashment. They also deal with personal and small loans, credit and
mortgages; insurance policies; investment schemes; pension funds; and advice
to customers on various financial matters. Apart from offering home loans, car
loans, educational loans, consumer loans, etc. they also develop various deposit
schemes and help people fill their coffers.
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Corporate Banking: They deal with medium to large-scale companies and
government agencies. It could start at the local branch manager level, though
more complex dealings are routed through corporate divisions of clearing banks
and their merchant banking subsidiaries. Corporate banking deals with credit
and advances, trade finance, foreign exchange management, asset management,
lease financing of heavy equipment, infrastructure, machinery, credit risk
assessment, etc. They also advise clients on matters such as corporate mergers
and acquisition, raising capital and business strategy regarding competitors and
outside factors.
Merchant Banking: Investment management is the primary activity of this
group. It could be on behalf of corporate clients, or institutional investors-like
pension funds, investment trusts, or those in the securities business. This groups
also handles public issue and marketing of shares, debentures and other such
papers. It may also include other stock market functions like dematerialization
services, investment advisory services, etc. Merchant banking executives
research into capital market, advice and manage funds of various corporate and
individual customers.
Treasury group: This group takes care of the total funds of a bank including
foreign exchange reserves. Responsibilities include bank portfolio management,
dealing in foreign currency, etc. There are Forex (foreign exchange) dealers in
this group who exclusively deal with the foreign market. They buy and sell
foreign exchange at the minimum exchange cost thereby earning maximum
profit from the transactions.
Rural Banking : This group deals with the banking and credit needs of people
in the rural sector. Not all banks have this group and some banks have separate
subsidiary companies for rural banking.
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Product Management: This group conceptualizes various banking services and
then develops; implements and manages them. They have the responsibility for
a banking product (meaning services like personal loans, home loans, credit
cards, loans against shares, educational loans, etc.). Apart from these main functional groups, there is an appraisal group to analyse
economic feasibility of industrial projects, the bank's exposure to financial risk
and long term returns. There are internal auditors who audit the bank's internal
books of accounts. There are various groups of professionals like lawyers, engineers, agricultural
scientists, chartered accountant, company secretary, cost accountant and
economists who work in various departments in advisory capacities. They help
make decisions on issues that are legal, technical or economic in nature. For
example, the economist advises various functional groups on the implications of
the Union budget on the business of the banks, consumer buying pattern, etc.
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POTENTIAL FOR RETAIL IN INDIA: IS SKY THE LIMIT The Indian players are bullish on the Retail business and this is not totally
unfounded. There are two main reasons behind this. Firstly, it is now undeniable
that the face of the Indian consumer is changing. This is reflected in a change in
the urban household income pattern. The direct fallout of such a change will be
the consumption patterns and hence the banking habits of Indians, which will
now be skewed towards Retail products. At the same time, India compares
pretty poorly with the other economies of the world that are now becoming
comparable in terms of spending patterns with the opening up of our economy.
For instance, while the total outstanding Retail loans in Taiwan is around 41%
of GDP, the figure in India stands at less than 5%. The comparison with the
West is even more staggering. Another comparison that is natural when
comparing Retail sectors is the use of credit cards. Here also, the potential lies
in the fact that of all the consumer expenditure in India in 2001, less than 1%
was through plastic, the corresponding US figure standing at 18%.
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Type Public company
Traded as BSE: 532480
NSE: ALBK
Industry Banking,
Founded 1865
Headquarters Kolkata,
Number of
locations
2,500 branches (2012)
Key people Shubhalakshmi PanseT.R Chawla
Services Finance and insurance
Consumer banking
Corporate banking
Revenue 16,822
Operating income 3,770
Net income 1,867
Total equity 500
Website allahabadbank.in
Public company
532480
ALBK
Banking, Financial services
India
2,500 branches (2012)
Shubhalakshmi Panse(Chairman & MD)
T.R Chawla (Executive Director)
Finance and insurance
Consumer banking
Corporate banking
16,822 crore(US$3.1 billion) (2012)
3,770 crore(US$690 million) (2012)
1,867 crore(US$340 million) (2012)
crore (US$92 million) (2012)
allahabadbank.in
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Allahabad Bank which began operations in 1865, has its headin Kolkata is the oldest joint stock bank in India. The bank was founded in Allahabad in 1865 and as of 31 March 2012 now has over 2500 branches throughout India. The bank has a branch in Hong Kong and a representative office in Shenzen.
19th century
On 24 April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of 19th century it had branches atLucknow, Bareilly, Nainital
20th century
In the early 20th century, with the start ofwitnessed a spurt in deposits. In 1920,Allahabad Bank with a bid price ofmoved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927Bank of India, Australia and ChinaBank continued to operate Allahabad Bank as a separate entity.
On 19 July 1969, the Government 13 other banks.
In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcuttabased bank that had been established in 1940. Two years later, Allahabad Bank established AllBank Finance Ltd, a wholly oBanking subsidiary.
21st century
The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an10 crore (US$1.8 million) of shares, each with a face valuereduced the Government's sharconducted a second public offering ofvalue 10 and selling at a premium ofGovernment's ownership to 55.23%.
In June 2006 the bank opened representative office in ShenzenBank opened its first overseas branch, in Hong Kong. In March, the bank's business crossed the 1 million crore mark.
which began operations in 1865, has its headis the oldest joint stock bank in India. The bank was founded
in 1865 and as of 31 March 2012 now has over 2500 branches The bank has a branch in Hong Kong and a representative
On 24 April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of 19th century it had branches at
Nainital, Calcutta, and Delhi.
In the early 20th century, with the start of Swadeshi movement, witnessed a spurt in deposits. In 1920, P & O Banking CorporationAllahabad Bank with a bid price of 436 (US$8.00) per share. In 1923 the bank moved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927Bank of India, Australia and China acquired P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a separate entity.
On 19 July 1969, the Government nationalised Allahabad Bank, together with
In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcuttabased bank that had been established in 1940. Two years later, Allahabad Bank established AllBank Finance Ltd, a wholly o
The government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an Initial Public Offering
million) of shares, each with a face valuereduced the Government's shareholding to 71.16%. Then in April 2005 the bank conducted a second public offering of 10 crore of shares, each with a face
10 and selling at a premium of 72. This offering reduced the Government's ownership to 55.23%.
In June 2006 the bank opened its first office outside India when it opened a Shenzen, Mainland China. In February 2007, Allahabad
Bank opened its first overseas branch, in Hong Kong. In March, the bank's 1 million crore mark.
19
which began operations in 1865, has its head-quarters is the oldest joint stock bank in India. The bank was founded
in 1865 and as of 31 March 2012 now has over 2500 branches The bank has a branch in Hong Kong and a representative
On 24 April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of 19th century it had branches at Jhansi, Kanpur,
Allahabad Bank P & O Banking Corporation acquired
436 (US$8.00) per share. In 1923 the bank moved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927 Chartered
acquired P&O Bank. However, Chartered
nationalised Allahabad Bank, together with
In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank that had been established in 1940. Two years later, Allahabad Bank established AllBank Finance Ltd, a wholly owned Merchant
The government's ownership of Allahabad Bank shrank in October 2002 after (IPO) of
million) of shares, each with a face value 10. The IPO eholding to 71.16%. Then in April 2005 the bank
10 crore of shares, each with a face 72. This offering reduced the
its first office outside India when it opened a In February 2007, Allahabad
Bank opened its first overseas branch, in Hong Kong. In March, the bank's
PRODUCT AND SERVICES
1. Personal Banking 2. Social Banking 3. MSME Banking 4. Corporate Banking 5. International Banking 6. Other Services
PRODUCT AND SERVICES
Personal Banking
Corporate Banking International Banking
20
21
PERSONAL BANKING Personal banking of Allahabad Bank is further divided into three main categories: i) Deposit Products ii) Retail Credit Products; and iii) Other Credit Products
� Deposit Products: It includes:- a) Flexi-Fix Deposit b) Mahila Sanchay Account c) Monthly Plus d) Current Plus Deposit Scheme e) Rs 5 Banking f) Vikash SB Account g) Sishu Mangal Deposit Scheme h) Premium SB Account i) Premium Current Account j) Tax Benefit Term Deposit Scheme
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� Retail Credit Products: It includes: a) Housing Loan b) Saral Loan c) Furnishing Loan d) Gyan Dipika Scheme e) Gold Loan Scheme f) Personal Loan for Pensioners g) Education Loan h) Loan Against NSC(National Saving Certificate)/KVP(Kisan Vikas Patra) i) Property Scheme j) Reverse Mortgage Scheme k) Loan Scheme for Doctors/Medical Practitioners l) Commercial Vehicle Finance m) Dream Car n) Bank Rent Scheme o) Trade Scheme p) IPO/FPO Finance Scheme q) Mobike Scheme r) Overdraft Facility in SB Account s) Housing Loan Scheme for NRI’s(Non-Resident Indians)/PIO’s(Persons of
Indian Origin)
� Other Credit Products: a) Akshay krishi – Kisan Credit Card Scheme b) Allahabad Bank – EXPO Scheme c) Allahabad Bank Tax Benefit Term Deposit Scheme
23
SOCIAL BANKING Social Banking is also further segmented into three different categories:
i) Priority Sector ii) Financial Inclusion iii) Credit Facilities to Minority Communities
MSME BANKING
MSME stands for Micro, Small and Medium Enterprise. An “enterprises” means an Industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act 1951 or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use or engaged in providing or rendering of any service or services.
Some important MSME portals of Allahabad Bank are:
i) MSME Policy of the Bank ii) Presence in MSME Cluster iii) Specialized MSME Branches in Each State iv) MSME Campaigns held and number of borrowers given loan in the
campaigns v) Training provided for the bank staff on MSME needs and number of
persons trained vi) Online system of acknowledgement of loan application and loan tracking
system vii) Format of loan application form with check list viii) Interest on MSME/Services Charge ix) OTS Scheme of the Bank x) Rehabilitation of sick MSME xi) Number of people trained in RSETI’s and of them those provided credit
linkage xii) Branch Level Customer meets held xiii) Grievance Redressal Mechanism for MSME’s xiv) Name of Nodal Officer of the bank for MSME complaints and queries:
Sri A.K. Mohapatra Assistant General Manager Priority Sector Credit Department Head Office, 2 N.S. Road Kolkata – 700001
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CORPORATE BANKING
Corporate banking includes: i) Cash Management Services ii) Gold Card Scheme for Exporters iii) Allahabad e – Trade iv) 3 – IN – 1 Account (Triple Advantage)
INTERNATIONAL BANKING Allahabad Bank is well spread out in India and one overseas Branch at Hong Kong, besides a Representative office at Shenzhen, China. Bank has also arrangements with correspondents at various important overseas locations, which will ensure extending to all our NRI customers rich banking experience.
We understand your needs and value your patronage and would request you to invest your surplus funds in the various products offered by our Bank.
Non – Resident:
A. In terms of Regulation 2(vi) of FEMA 5, a Person resident outside India, who is a citizen of India or is a person of Indian Origin.
B. Indian Residents working abroad on assignment with Foreign Governments, Government agencies or in UNO and its affiliates IMF, IBRD etc and Government officials and other officials of PSU's deputed abroad or assignments or posted abroad to their own offices including Diplomatic Missions abroad.
C. A person of Indian Origin who is a citizen of any other country other than Bangladesh or Pakistan if:
i. He/She at any point of time, held an Indian Passport. ii. He/She or either of his/her parents or any of his/her grandparents was a citizen
of India by virtue of Constitution of India or Citizenship act 1955 (57 of 1955). iii. The persons are a spouse of an Indian Citizen or a person referred to in sub
clause b (i) or (ii) above.
Students going abroad for studies are treated as Non Resident Indians provided their stay abroad is for more than 182 days in the preceding financial year and their intention to stay outside India for an uncertain period when they go abroad for studies.
Deposit Account: Non Resident Indians can open accounts under Repatriable and NonRepatriable deposit schemes. In respect of Repatriable scheme the NRIs have the choice of following schemes for depositing
Students going abroad for studies are treated as Non Resident Indians provided broad is for more than 182 days in the preceding financial year and
their intention to stay outside India for an uncertain period when they go abroad
Non Resident Indians can open accounts under Repatriable and NonRepatriable deposit schemes. In respect of Repatriable scheme the NRIs have the choice of following schemes for depositing their savings with Our Bank.
25
Students going abroad for studies are treated as Non Resident Indians provided broad is for more than 182 days in the preceding financial year and
their intention to stay outside India for an uncertain period when they go abroad
Non Resident Indians can open accounts under Repatriable and Non-Repatriable deposit schemes. In respect of Repatriable scheme the NRIs have
their savings with Our Bank.
OTHER SERVICES
Other important services of Allahabad Bank are:
i) Insurance and Mutual Fund ii) Government Business iii) Depository Services iv) E – Products v) Cards vi) ASBA(Application Supported by Block Amount) Facility vii) Account – Portability viii) Agriculture Debt Wavier ix) All Ayushman Bima Yojanax) Samadhan Financial Literacy & Credit Counselling Centre xi) Deceased – Settlement xii) Depository Receipt xiii) International Debitxiv) Money Transfer Services xv) National Eligibility Fund Transfer(NEFT) xvi) New Pension System(NPS) xvii) Non – Life Business Insurance xviii) Real Time Gross Settlement(RTGS) xix) Regional MSME Care Centres
NOTE: VARIOUS RETAIL LENDING SCHEMES (Hyperlink):
� Rate of Interest under Retail Credit Products. � Discretionary Authority under Various Retail Schemes. � Services Charges, Processing Fees and Prepayment Fees.
THER SERVICES
Other important services of Allahabad Bank are:
Insurance and Mutual Fund Government Business Depository Services
ASBA(Application Supported by Block Amount) Facility Portability
Agriculture Debt Wavier All Ayushman Bima Yojana Samadhan Financial Literacy & Credit Counselling Centre
Settlement Depository Receipt International Debit – Cum – ATM Card Money Transfer Services National Eligibility Fund Transfer(NEFT) New Pension System(NPS)
Life Business Insurance Real Time Gross Settlement(RTGS) Regional MSME Care Centres
VARIOUS RETAIL LENDING SCHEMES (Hyperlink):Rate of Interest under Retail Credit Products. Discretionary Authority under Various Retail Schemes. Services Charges, Processing Fees and Prepayment Fees.
26
ASBA(Application Supported by Block Amount) Facility
Samadhan Financial Literacy & Credit Counselling Centre
VARIOUS RETAIL LENDING SCHEMES (Hyperlink):
Discretionary Authority under Various Retail Schemes. Services Charges, Processing Fees and Prepayment Fees.
27
WORK FLOW MODEL
DEPOSITS
Customer Approaching the Bank/Enquiry
Introduction
Documentation
Saving, Fixed, Current and Recurring A/C
A/C holder facility
Deposits Withdrawal
Cashier Cashier
Cash supervision Cash supervision
Account for the customer
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ACCOUNT OPENING
Choose an Institution
Go to the Bank or Website
Pick the Product You Want
Provide Your Information
Agree to Terms
Print, Sign, and Mail (If Applicable)
Congratulate Yourself!
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MCKINSEY’S SEVEN S MODEL AS APPLICABLE TO THAT ORGANIZATION
The Seven-S is a framework for analyzing organizations and their effectiveness.
It looks at the seven key elements that make the organizations successful, or
not: strategy; structure; systems; style; skills; staff; and shared values.
Consultants at McKinsey & Company developed the 7S model in the late 1970s
to help managers address the difficulties of organizational change. The model
shows that organizational immune systems and the many interconnected
variables involved make change complex, and that an effective change effort
must address many of these issues simultaneously.
30
7-S Model – A Systemic Approach to Improving Organizations The 7-S model is a tool for managerial analysis and action that provides a
structure with which to consider a company as a whole, so that the
organization's problems may be diagnosed and a strategy may be developed and
implemented.
The 7-S diagram illustrates the multiplicity interconnectedness of elements that
define an organization's ability to change. The theory helped to change
manager's thinking about how companies could be improved. It says that it is
not just a matter of devising a new strategy and following it through. Nor is it a
matter of setting up new systems and letting them generate improvements. “ Shared values ―are commonly held beliefs, mindsets, and assumptions that
shape how an organization behaves – its corporate culture. Shared values are
what engender trust. They are an interconnecting centre of the 7S’s model.
Values are the identity by which a company is known throughout its business
areas, what the organization stands for and what it believes in, it central beliefs
and attitudes. These values must be explicitly stated as both corporate objectives
and individual values ― Strategy” is a plan of an organization formulates to reach identified goals,
and a set of decisions and actions aimed at gaining a sustainable advantage over
the competition. ―Systems” define the flow of activities involved in the daily
operation of business, including its core processes and its support systems. They
refer to the procedures, processes and routines that are used to manage the
organization and characterize how important work is to be done. ―Style” refers
to the cultural style of the organization, how key managers behave in achieving
the organization's goals, how managers collectively spend their time and
attention, and how they use symbolic behaviour. How management acts is more
important that what management says. ―Staff” refers to the number and types
of personnel within the organization and how companies develop employees
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and shape basic values. ―Skills” refer to the dominant distinctive capabilities
and competencies of the personnel or of the organization as a whole.
Structure” is the organizational chart and associated information that shows
who reports to whom and how tasks are both divided up and integrated. In other
words, structures describe the hierarchy of authority and accountability in an
organization, the way the organization's units relate to each other: centralized,
functional divisions (top-down); decentralized (the trend in larger
organizations); matrix, network, holding, etc. These relationships are frequently
diagrammed in organizational charts. Most organizations use some mix of
structures - pyramidal, matrix or networked ones - to accomplish their goals.
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STRUCTURE
Board of Directors
Mrs. Subhalakshami Panse Chairman & Managing Director Allahabad Bank Shri Tilak Raj Chawla Executive Director Allahabad Bank
Shri Arun Tiwari Executive Director Allahabad Bank
Dr. Shashank Saksena Government Nominee Director Allahabad Bank
Shri A. Udgata RBI Nominee Director Allahabad Bank Shri Rajesh Madanmohan
Chatruvedi Chartered Accountant Director Allahabad Bank
Shri Gour Das Workmen Employee Director Allahabad Bank
Dr. Sudip Chauduri Shareholders’ Director Allahabad Bank
33
SKILLS Highly skilled candidates are recruited at various levels across the organization.
Skills can be classified broadly into highly skilled and semi skilled routine
work. Various training program are organized regularly to impart training needs
of the employees.
STYLE /CULTURE
The culture of the organisation, consisting of two components:
Organisational culture: the dominant values and beliefs, and norms,
which develop over time and become relatively enduring features of
organisation life.
Management Style: More matter of what managers do than what they
say how do a company‘s managers spend their time? What are they
focusing attention on?
Symbolism – the creation and maintenance (or sometimes deconstruction) of
meaning is a fundamental responsibility of managers. Building a high performance culture is another key prerogative of the HR
function. Allahabad bank envisage a credible and transparent performance
management process that helps in aligning individual goals with corporate
objectives, both quantitative and qualitative, and encourages cross sell and team
spirit. Allahabad bank performance management process will be supported by a
robust rewards and recognition strategy for each business and a market based
compensation structure that is flexible, responsive and helps retention through
asset building and wealth creation for top performers.
34
STRATEGY Being one of the leading banking institutions with rich culture of
professionalism the bank has various strategies to tackle with competitors in the
market. The bank has the strategy to make use of the growing potential of the
rural sector as well as the global academy, the business landscape will be
changing magically and so will the financial service need.
The bank has the strategy to enhance the reach of anytime and anywhere
banking. It has the ATM’s almost in all the cities and in good numbers. With
the growing of the net banking the bank have several new products and facilities
with state-of-the-art facilities, enabling you to conduct all your banking
activities using your personal computer, from the comfort of your home or
office. Thus providing you with secure, 24 hour access to all your accounts
from anywhere in the world.
Unique Advantages:
Single Access Key: Our revolutionary technology allows you to access
your account with your debit card PIN. Just log on to our website, select
Internet Banking services and key in your Customer ID and debit card
PIN. On successful validation you will be allowed to select an Internet
password. It's that easy.
Secure Technology: For the first time in India, our Two Factor
Authorization allows for "One Time Passwords" for Internet Banking
transaction authentication to be delivered via SMS to your Mobile Phone.
This password enhances your Internet Banking security and allows you
the freedom of banking without remembering multiple passwords.
35
Instant Payment Solutions: Our Real Time Gross Settlement (RTGS)
Payment and Electronic Funds Transfer (EFT) facilities allow you to
transfer funds to own or third party accounts instantly. You can also
request for multiple Demand Drafts at various locations and set up
standing instructions for your account to execute routine payments SYSTEM Formal and informal procedures that support the strategy and structure (systems
are more powerful than they are given credit).
The bank follows a systematic procedure at all the levels. The bank has very
good performance appraisal system, training and development system, resource
allocation system, distribution and recovery system. The instructions flow from
top management to lower levels of management.
The training needs are developed after TNI (Training Needs Identification) and
all the programs are put on the monthly/annual training calendar to be
implemented.
STAFF The people/human resources management – processes used to develop
managers, socialization processes, ways of shaping basic values of management
cadre, ways of introducing young recruits to the company, ways of helping to
manage the careers of employees. Allahabad Bank envisaged that for an individual to work with the organization
in perfect synergy, his/her goals had to be linked with the goals of the
organization. This process of aligning individual and organizational goals was
termed as the performance management process. The main objective of these
innovative performance management practices was to encourage the employees
to think innovatively.
36
SHARED VALUE The bank aimed at building a culture to inculcate professional entrepreneurship
in them to make themselves and the shareholders prosperous. Allahabad Bank
has planned to steadily increase its presence in retail business. Earlier bank has
purposely maintained a low-key presence in the retail market, now is planning
to increase exposure in this segment. There is tremendous scope for Allahabad
Bank’s growth as it was trying to take care of the latent needs of the customers
with highly skilled and involved employees.
37
SWOT ANALYSIS
STRENGHTS:
• It has an extensive distribution network comprising of 2716 branches.
• The Bank has a strong retail depository base & has good number of customer.
• Bank boasts of strong brand equity.
• The bank has a near competitive edge in area of operations.
• The bank has a market leader in cash settlement service for the major stock exchanges in its country.
• Allahabad Bank is one of the largest public sector banks operating in India.
• It has a highly automated environment in terms of information technology & communication system.
• Infrastructure is best.
• It has many innovative products like kids Instapay, NRI services.
WEAKNESS:
� Some time account opening and delivery of cheque book take comparatively more time.
� Occasionally link failure.
38
OPPORTUNITY :
� Branch expansion.
� Door step services.
� Infrastructure improvements & better systems for trading & settlement in the government securities & foreign exchange markets.
THREATS:
o The bank has started facing competition from players like SBI, HDFC Bank in the finance market itself.
o This reduces the profit margins in the future.
o Some Private Banks have 7 days banking.
39
40
TITLE OF THE PROJECT
“A Study on Retail Banking with special reference to Allahabad Bank” STATEMENT OF THE PROBLEM As there are immense opportunities of the retail banking in India. This project is
on the issues and challenges in the retail banking because of the competition of
the various banks and the customer satisfaction of the services which the banks
are providing and at the same time to solve the complaints of the customer and
maintaining the sound relationship for the future and by this way to estimate the
future growth of the retail banking.
OBJECTIVES OF STUDY
� To study the issues and challenges in retail banking.
� To study the recent trends in retail banking.
� To ensure high satisfaction level and reduce percentage of
complaints of customer in retail banking.
� To estimate the future growth of Indian retail banking.
� To understand Optimization of retail banking channels.
� To suggest strategies for improvement in Customer Service.
41
OPERATIONAL DEFINITION
Retail banking refers to banking in which banking institutions execute
transactions directly with consumers, rather than corporations or other banks.
Services offered include: savings and checking accounts, mortgages, personal
loans, debit cards, credit cards, and so forth. And to know about the customer’s
perceptions about the different products of the bank like current account,
savings account, FD, Smart Saver, Smart Access and others.
DATA COLLECTION
There are several approaches of data collection. The primary sources of data
collection are done through: -
� Observation
� Questionnaire Questionnaire: Questionnaire is the method of data collection, which is very much popular,
particularly in big cities. Different modes of questions are put up on the paper
and the particular universe, on which the research is conducted, are asked to fill
their responses. The Secondary source includes data collection through:
� Magazines, Journals, Books, Newspapers etc.
� Company Website.
42
43
SAMPLING TECHNIQUE (a) Sampling Unit: - Walk in customers and the company database of high
ended customer.
(b) Sample Size:- Sample size for this project was restricted to 50 respondents. Since it was not
possible to cover the whole universe in the available time period, it was
necessary for me to take a sample size of 50 respondents.
(c) Sampling Method:- There are three methods of sampling:-
1. Probability Sampling
2. Non-Probability Sampling
3. Quota For this research work Non- Probability Convenience Sampling has been
chosen because time limit for the completion of the work is limited.
Area of Study - Durgapur, West Bengal Duration - 2 months (13th May ’13 – 13th July ’13)
44
DATA COLLECTION METHOD Data for the present study is collected from two sources:
1. Primary Data:
The data are collected directly from the universe by conducting
interviews, etc. these are the original sources from which the researcher
directly gathers data which are not previously referred. All the people
from different profession were personally visited and interviewed. They
were the main source of primary data. The method of collection of
primary data was personal direct interview through a structured
questionnaire. The primary data was collected by means of survey. Questionnaires were
prepared and customers of Allahabad Bank were approached to fill up these
questionnaires. The filled up information was later analyzed to obtain the
required information.
2. Secondary Data:
The data are collected from the secondary sources such as magazines,
journals, etc. These sources consist of already variable data in the form of
statements, and reports, which may include sensory reports, financial
statements of the company, reports of governments departments, etc.
It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, newspapers,
magazines, management books, preserved information in the company’s
database and the website of the company. Both Primary and Secondary sources was used for data collection. For primary source, Questionnaire was used. For secondary source Internet, Books and Newspapers etc were used.
45
RESEARCH DESIGN Research design is simply the framework or plan for a study, used as a guide in
collecting and analyzing data. There are three types of Research Design:-
1. Exploratory Research Design
2. Descriptive Research Design
3. Casual Research Design For the study, Exploratory Research Design was undertaken to classify the
investors on their risk and return profile.
PLAN OF ANALYSIS The data obtained from the structured questionnaire was interpreted and
recorded. The table and graph were constructed using data from the
questionnaire through simple techniques like average, percentage, etc. which
was then used for analyzing the acquired data.
46
LIMITATIONS
� Designing own and new financial products is very costly and time
consuming for the bank.
� Customers now-a-days prefer net banking to branch banking. The banks
that are slow in introducing technology-based products, are finding it
difficult to retain the customers who wish to opt for net banking.
� Customers are attracted towards other financial products like mutual
funds etc.
� Though banks are investing heavily in technology, they are not able to
exploit the same to the full extent.
� A major disadvantage is monitoring and follows up of huge volume of
loan accounts inducing banks to spend heavily in human resource
department.
� Long term loans like housing loan due to its long repayment term in the
absence of proper follow-up, can become NPAs.
� The volume of amount borrowed by a single customer is very low as
compared to wholesale banking. This does not allow banks to exploit the
advantage of earning huge profits from single customer as in case of
wholesale banking.
47
Profile of Respondents
Respondents were the customers of Allahabad Bcity (West Bengal) of age group 21
A. Opinion on Branch experience.
The Branch timings (10:010:00 am to 12:30 pm on SaturdayTable: 1
Parameter
Very Good Good Satisfactory
Could be better
Interpretation The purpose of this question is to know the whether the bank timings are
convenient for the custom
very good and 10% of respondent replied
customers have any problem with resp Inference: As 90% responded very
with bank timings.
ere the customers of Allahabad Bank of Durgapur(West Bengal) of age group 21-65 years.
A. Opinion on Branch experience.
The Branch timings (10:00 am to 3:30 pm from Monday to Friday and 10:00 am to 12:30 pm on Saturday) are convenient?
In numbers In percentage
45 90 5 10 0 0
0 0
purpose of this question is to know the whether the bank timings are
convenient for the customer, 90% of respondents says that bank timings are
10% of respondent replied that timings are good. None of the
customers have any problem with respect to timings.
As 90% responded very well, it seems high number are happy
48
ank of Durgapur
to 3:30 pm from Monday to Friday and
purpose of this question is to know the whether the bank timings are
that bank timings are
that timings are good. None of the
, it seems high number are happy
49
Is the branch ambience & layout is very friendly? Table: 2
Parameter In numbers In percentage
Very Good 40 80
Good 7 14
Satisfactory 2 4
Could be better 1 2 Interpretation 80% were of the respondent says that branch ambience is very good, 14% were
of the respondent replied that branch ambience is good while 4% says that it is
satisfactory & just 1% replied that it could be better. Inference: As 80% of respondents say branch ambience is very good, so
not too many respondents like the branch ambience.
50
Is the Branch was clean and well maintained? Table: 3
Parameter In numbers In percentage Very Good 40 80 Good 7 14
Satisfactory 2 4
Could be better 1 2
Interpretation 80% were of the respondent says that branch cleanness is very good, 14% were
of the replied that branch cleanness is good while 4% says that it is satisfactory
& just 1% replied that it could be better. Inference: As 80% of respondents say branch cleanness is very good, so
not too many respondents like the branch cleanness.
51
B. Opinion of the customer regarding Branch personnel. Is the branch personnel have listened to you patiently and have been able
to respond to your queries and clarifications? Table: 4
Parameter In In percentage numbers
Very Good 38 76
Good 7 14
Satisfactory 3 6
Could be better 2 4
Interpretation 76% of respondent says that branch personnel listened patiently& have been
able to respond to their queries, 14% of respondents replied that it is good.
While only 6% of respondent says that it is satisfactory and 4% replied that it
could be better. Inference: As only 76% of respondent says that branch personnel listens
patiently and have been able to respond to queries and clarifications, so not too
many respondents are satisfied.
52
Is the branch personnel have been very helpful and courteous? Table: 5
Parameter In numbers In percentage
Very Good 37 74
Good 8 16
Satisfactory 3 6
Could be better 2 4 Interpretation 74% of respondent says that branch personnel have been very helpful and
courteous, 16% of respondents replied that it is good. While only 6% of
respondent says that it is satisfactory and 4% replied that it could be better. Inference: As only 74% of respondent says branch personnel have been very
helpful and courteous, so not too many respondents are satisfied.
53
Is the branch personnel have done a “Need Analysis” & “Risk Assessment” before recommending any investment option?
Table: 6
Parameter In numbers In percentage Very Good 36 72
Good 10 20 Satisfactory 3 6
Could be better 1 2
Interpretation 72% of the respondent says that risk assessment before recommending any
investment is very good, 20% of respondents replied that it is good, 6% of
respondent says that it satisfactory and only 2% replied it could be better. Inference: As only 72% of respondent says that branch personnel does a
“Need Analysis” & “Risk Assessment” before recommending any investment
option, so not too many respondents have positive response.
54
Is the branch personnel were aware of Product and Services and responded to your queries? Table: 7 Parameter In numbers In percentage
Very Good 43 86
Good 3 6
Satisfactory 3 6
Could be better 1 2
Interpretation 86% respondent says that branch personnel responded to their queries and is
very good, 6% says to be good & 6% satisfactory. Only 2% said it could be
better. Inference: As 86% of respondent says that branch personnel were aware of
Product and Services and responded to customer queries, so not too many
respondents are satisfied.
55
C. Customer’s opinion of transacting in Branches. Is the waiting time at the Teller Counter was minimal?
Table: 8
Parameter In numbers In percentage
Very Good 40 80
Good 5 10
Satisfactory 1 2
Could be better 4 8
Interpretation 80% of respondent says that waiting time is minimum at teller counter and it is
very good, 10% of respondent replied that it is good, 8% it’s satisfactory and
2% said it could be better. Inference: As 80% of respondent says that waiting time at teller counter was
minimal, not too many were satisfied with transaction.
56
Is the transactions done by us have been smooth & error free?
Table: 9
Parameter In numbers In percentage
Very Good 45 90
Good 5 10
Satisfactory 0 0
Could be better 0 0
Interpretation 90% of respective says that transactions are smooth and error free, 10% of
respondent replied that transactions are good. None of the customers have any
problem with respect to timings. Inference: As 90% responded very well, it seems high number are happy with the banking transactions.
57
Is Allahabad Bank looks into the feedback provided by you and takes necessary action if required?
Table: 10
Parameter In numbers In percentage
Very Good 41 82
Good 5 10
Satisfactory 2 4
Could be better 2 4
Interpretation 82% of respondent responded that Allahabad Bank looks into the feedback &
is very good, 10% said its good, 4% said it’s satisfactory and 4% said it could
be better.
Inference: As 82% of respondent says Allahabad bank looks into the feedback
provided by customer and takes necessary action if required, not too many
were satisfied with transaction.
58
D. Customer’s opinion for bank services.
Are you happy with the TAT (Turn Around Time) post request? Table: 11
Parameter In numbers In percentage
Very Good 40 80
Good 7 14
Satisfactory 2 4
Could be better 1 2
Interpretation 80% of respondent says that TAT post request is very good, 14% said its good
4% said it’s satisfactory and 2% said it could be better.
Inference: As 80% of respondent says the TAT (Turn Around Time) post request is very good, not too many were satisfied with TAT post request.
59
E. Products and Services. Which feature of the Allahabad Bank Savings account you like most?
Table: 12
Parameter In numbers In percentage
Rs 5 Banking 19 38
Current plus Deposit Scheme 22 45
Mahila Sanchay 7 13
Vikash SB A/C 2 4
Interpretation 38% of the respondent says for Rs 5 Banking, 45% of respondent are in favour
of Current plus Deposit Scheme, 13% are in favour of Mahila Sanchay while
only 4% like Vikash Saving Bank Account. Inference: Maximum number of people like Current plus Deposit Scheme
feature of Allahabad Bank Savings account.
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How do you rate the “ALLAHABAD BANK COMMUNITY EVENT S” held at Allahabad Bank?
Table: 13
Parameter In numbers In percentage
Very Good 37 74
Good 8 16
Satisfactory 3 6
Could be better 2 4
Interpretation 74% of the respondent says that ALLAHABAD BANK COMMUNITY
EVENTS are very good, 16% of respondents replied that events are good, 6%
said it is satisfactory and 4% said it could be better. Inference: As 74% of respondent says ALLAHABAD BANK COMMUNITY
EVENTS is very good, not too many replied for community events.
61
Is the information in the Bank Statement clear, easy to understand and
adequate? Table: 14 Parameter In numbers In percentage
Very Good 39 78
Good 6 12
Satisfactory 5 10
Could be better 0 0
Interpretation 78% of the respondent says that information in bank statement is clear, easy &
adequate and is very good, 12% of respondent replied that it is good, 10% said
it is satisfactory. Inference: As 78% of respondent says that information in the Bank Statement
is clear, easy to understand and adequate or not, not too many were satisfied
with the bank statement.
62
Will you recommend Allahabad Bank to your friends and relatives? Table: 15 Parameter In numbers In percentage
Most Definitely 45 90
Yes 4 8
May Be 1 2
No 0 0
Interpretation 90% of respondent says that they will most definitely recommend
ALLAHABAD BANK to their friends & relatives, 8% of respondent says yes.
Only 2% said may be. Inference: As 90% of respondent says that they will definitely recommend
ALLAHABAD BANK to their families & friends, maximum number of
respondent replied positive.
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OPPORTUNITIES AND CHALLENGES Retail banking has immense opportunities in a growing economy like India. As
the growth story gets unfolded in India, retail banking is going to emerge a
major driver. How does the world view us? The BRIC report is viewing India as
an economic superpower. A.T. Kearney, a global management-consulting firm,
recently identified India as the ―second most attractive retail destination of 30
emergent markets.
The rise of Indian middle class is an important contributory factor in this regard.
The percentage of middle to high-income Indian households is expected to
continue rising. The younger population not only wields increasing purchasing
power, but as far as acquiring personal debt is concerned, they are perhaps more
comfortable than previous generations. Improving consumer purchasing power,
coupled with more liberal attitudes towards personal debt, is contributing to
India‘s retail banking segment.
The combination of above factors promises substantial growth in retail sector,
which at present is in the nascent stage. Due to bundling of services and
delivery channels, the areas of potential conflicts of interest tend to increase in
universal banks and financial conglomerates. Some of the key policy issues
relevant to the retail-banking sector are: financial inclusion, responsible lending,
and access to finance, long-term savings, financial capability, consumer
protection, regulation and financial crime prevention.
64
� Challenges for the Industry and its Stakeholders:
� First, retention of consumers is going to be a major challenge. According to a research by Riechheld and Sasser in the Harvard Business review, 5 percent increase in customer retention can increase profitability by 35 percent in banking business, 50 percent in insurance and brokerage, and 125 percent in the consumer credit card market. Thus, banks need to emphasis on retaining consumer and increasing the market share.
� Second, rising indebtedness could turn out to be a cause for concern in the future. India’s position, of course, is not comparable to that of developed world where household debt as a proportion of disposable income is much higher. Such a scenario creates high uncertainty. Expressing concerns about the high growth witnessed in consumer credit segments the reserve bank has, as a temporary measure, put in place risk containment measures and increased the weight from 100 percent to 125 percent in the case of consumer credit including personal loans and credit cards.
� Third, information technology poses both opportunities and challenges.
Even with ATM machines and Internet Banking, many of the customers still prefer the personal touch of their neighbourhood branch bank. Technology has made it possible to deliver services throughout branch network, providing instant updates to checking accounts and rapid movement of money for stock transfers. However, this dependency on the network has bought IT department‘s additional responsibilities and challenges in managing, maintaining and optimizing the performance of retail banking networks.
� Fourth, KYC Issues and money laundering risks in retail banking is yet
another important issue. Retail lending is regarded as a low risk area for money laundering because of the perception of the sums involved. However, competition for clients may also lead to KYC procedures being waived in the bid for new business. Banks must also consider seriously the type of identification documents the will accept and other processes to be completed. The Reserve Bank has issued details guidelines on application of KYC norms in November 2004.
65
� Trends in Retail Banking Growing a retail banking business is becoming increasingly challenging. The
yield curve is flattening, reducing bank’s net interest margin. Competition is
intensifying, as new, non-traditional players enter the retail banking space. And
consumer preferences for financial products, payment methods and distribution
channels continue to evolve, providing revenue opportunities, but also
introducing new operational challenges. The changing dynamics of the retail banking business have significant
implications for financial institutions. In order to successfully compete in this
environment, banks must provide a distinctive customer experience and offer
innovative product solutions in order to differentiate their value proposition in
the marketplace.
Key trends in retail Banking are:
1. Bifurcation of the retail banking business: � National- Consolidate- Credit Cards � Home Equity Loans Mortgages � Local- Fragmented- Deposits � Instalment Loans & Small Business Loans
2. Lack of differentiation in retail financial services:
� Many financial institutions are struggling to differentiate their value
propositions in the retail banking market.
� Free checking is now offered by all or most financial institutions.
� Most institutions no longer charge for online banking or online bill payment.
� Extended branch hours are increasingly common in many markets, as
banks seek to increase customer convenience. 3. Proliferation and growth of electronic payments. 4. Increasing demand for ATM access.
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Strategies for Ensuring high Customer Satisfaction
� Set service expectations and standards of behaviour - this means that managers must set clear service expectations and standards of behaviour, beginning with defining "excellent service."
� Identify and eliminate barriers and obstacles. Policies that do not
make sense; procedures that get in the way; and rules, norms that make satisfying customers difficult all need to be eliminated to successfully improve service.
� Learn and develop skills. Clearly, personnel at all levels should learn
new skills related to service excellence and serve the customer.
� Listen to your customers. Measurement of customer satisfaction can be a powerful way to improve service if the feedback is not focused on punishment.
� Managers need to help staff hear, first hand, how they are doing. For this feedback to be effective, however, it must be tied to specific targets and goals and needs to be frontline driven.
� Reinforce and support continuous improvement. The real challenge is
keeping the energy, learning, and improving alive.
67
SUMMARY OF FINDINGS
� With reference to table no.1, 90% of customers are happy with the bank
timings & they said that it is very good.
� With reference to table no. 2, 80% of respondents like the branch
ambience & layout & find it friendly with reference to table no.3, 80% of
respondents said branch was clean and well maintained.
� With reference to table no.4, 76% respondents view that branch personnel
had listened to them patiently and have been able to respond to their
queries and clarifications.
� 74% of respondent responded that Branch personnel had been very
helpful and courteous with reference to table no.5.
� With reference to table no. 6, 72% of respondent says that branch
personnel do “Need Analyses” & “Risk Assessment” of customer savings
before recommending any investment option to them.
� With reference to table no.7, 86% of respondent that branch personnel are
aware of Product and Services and responded to your queries.
� With reference to table no 8, 80% of respondents says that waiting time at
the Teller Counter is minimum and is very good.
� With reference to table no.9, 90% of respondent says that transactions are
smooth and error free & is very good.
� With reference to table no. 10, 82% of respondent responded that
Allahabad Bank looks into the feedback & is very good.
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� With reference to table no.11, 80% of respondent said that they are happy
with the TAT post request is very good.
� With reference to table no.12, 45% of respondents are in favour of
Current plus Deposit Scheme feature of the Allahabad Bank Savings
account.
� With reference to table no.13, 74% of the respondent said that
ALLAHABAD BANK COMMUNITY EVENTS are very good.
� With reference to table no. 14, 78% of the respondent said that
information in bank statement is clear, easy & adequate and is very good.
� With reference to table no 15, 90% of respondent said that they will most
definitely recommend ALLAHABAD BANK to their friends & relatives.
Overall the response of the bank customer is good.
69
SUGGESTIONS Suggestions are always considered to be the most important part of any project
report because for every pros; there is cons associated with and to reduce the
effect of latter, following suggestions must be taken into consideration in regard
to retail banking.
� The Branch personnel should listen to customer patiently and should
be able to respond to their queries and clarifications because some
customer are new to some of the bank services and until and unless
they will come to know about those services they will be not be
satisfied.
� With reference to table no. 5 as not many respondents said that
Branch Personnel are helpful and courteous, so I will suggest that
Bank personnel should be helpful & courteous towards maximum
number of customers.
� With reference to table no. 6, larger number of branch personnel should do ‘Need Analysis’ & ‘Risk Assessment’ before recommending any investment option to customer.
� With reference to table no.7, more branch personnel should be aware
of Product and Services and responded to customer’s queries.
� With reference to table 10, Allahabad bank should look into the
feedback provided by customer and takes necessary action wherever
required.
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� With reference to table no. 12, bank should focus on Mahila Sanchay
Saving Bank A/C as small 10% of customer likes this.
� Some time the customer has to wait at the Teller Counter, the service
should be improved by appointing more staff, with reference to table
no.11.
� Information in the Bank Statement should be more clear, easy to
understand and adequate.
� Along with customer satisfaction employee’s participation must be
kept active by appraising their salary as well as their work.
� Frequently customers must be kept delighted by providing them
regards and by maintaining customer relationship so that their interest
can be kept maintained.
� The Allahabad bank should focus on business and service portfolio for
a reputation of being niche players in the industry.
� The bank should concentrate on few reliable high net worth
companies and individuals rather than cater to the mass market.
� As 10% customer response is not good for the clarification of the
queries response towards them so bank personnel should improve this
issue because customer is a source through which business can be
increase and satisfy customers is a source to create more customers,
with reference to table no.4.
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� As it is only 10% respondent said that sometime there was a error in
the transaction happened so to avoid these kinds of errors should be
avoided because it is unnecessarily results in wastage of time for both
staff members and service rendered, reference to table no. 9.
� There should be increase in the number of events organize by bank
because it is a opportunity for the bank to introduce new products and
services and at the same time it is a open opportunity for the customer
to come forward and suggest its views which might prove to add the
values for the bank because 10% customer still not have a good
response, with reference to table no.13.
� Communication with the customer should be improved and increased
so that bank can easily response towards them and in result the
customer would be satisfy and no question that they will recommend
the Allahabad Bank to their friends and relatives because only 2% of
customer are not responding in a positive manner.
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CONCLUSIONS – FUTURE GROWTH The project aims to study the retail banking operations of ALLAHABAD BANK. The study was very fruitful, it yielded the desired results, helped me understand the retail banking. The study also helps in what are the customer opinions towards operations of bank & its various product and services.
Any serious discussion of the future of the retail banking industry eventually raises a basic question: will future customers still need retail banks? The answer, it turns out, depends on banks themselves. With technology and non blank businesses providing new options for safeguarding and managing their finances, customers will continue to depend on banks only as long as banks can provide service and value that cannot be found anywhere else.
The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look a new at their existing portfolio offering. Conservative banking practices allowed.
Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting at higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customer’s base.
ALLAHABAD BANK has a great opportunity to increase their market potential
in the present market situation.
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LEARNING EXPERIENCE
The dissertation is to define the retail banking and regarding the general services of bank.
The study was very fruitful, it yield the desire result, helped me to understand the banking services better. The study also yields what are the factors that banking is looking forward for the customer.
The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances.
Under the ambit of the nationalized banks come the specialized banking institutions. The bank gives great importance towards customer satisfaction. The senior staffs with their busy schedule try to advice the customer how to invest in better way. The employees in the bank are well behaved and give a great deal of satisfaction to see them how they approach their customers. The bank plays an important role not only to fulfil their duties towards customer but also to understand them better regarding what they want and how to maximize the return on the investment.
The bank has set up separate department to impart training program for the employees. The biggest achievement is the implementation of core banking solution.
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75
Audited Financial Results for the year ended 31st March 2013
ALLAHABAD BANK
AUDITED FINANCIAL RESULTS
for Year ended 31st March, 2013.
(Rs. In lakh)
PARTICULARS
Quarter Ended Year Ended Year Ended (Consolidated)
31.03.2013
31.12.2012 (Reviewed)
31.03.2012 (Audited)
31.03.2013
31.03.2012 (Audited)
31.03.2013
31.03.2012 (Audited)
1. Interest Earned (a) + (b) + (c) +(d)
425236 444466 416824 1743569
1552328
1746120
1552767
(a)
Interest/discount on advances/bills
312619 323371 307631 1274503
1166413
1274504
1166413
(b)
Income on investments
109792 116104 103974 447332 371638 449834 372009
(c)
Interest on balances with Reserve Bank of India and other interbank funds
1808 2931 4843 15944 12289 15993 12289
(d)
Others 1017 2060 376 5790 1988 5789 2056
2. Other Income 52454 34068 35514 147691 129868 158773 131912
3 TOTAL INCOME (1+2)
477690 478534 452338 1891260
1682196
1904893
1684679
4 Interest Expended
319634 311444 287987 1256928
1036063
1256853
1035997
5 Operating Expenses (i) + (ii)
81328 81086 74244 295810 269139 306770 272290
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(i) Employee Cost
54498 56349 49504 198594 183449 200069 183611
(ii)
Other operating expenses (All items exceeding 10% of the total expenditure excluding interest expenditure may be shown separately)
26830 24737 24740 97216 85690 106701 88679
6
Total Expenditure (4+5) excluding provisions and contingencies
400962 392530 362231 1552738
1305202
1563623
1308287
7
Operating Profit before Provisions and contingencies (3-6)
76728 86004 90107 338522 376994 341270 376392
8
Provisions ( other than tax) and contingencies
62249 43243 45440 183254 160697 183253 160813
9 Exceptional Items
0 0 0 0 0 0 0
9
--Of which Provisions for non-performing assets
10
Profit (+)/ Loss (-) from Ordinary Activities before tax (7-
14479 42761 44667 155268 216297 158017 215579
77
8-9)
11 Tax Expenses 1864 11678 4645 36747 29619 36831 29619
12
Net Profit(+) / Loss (-) from Ordinary Activities after tax(10-11)
12615 31083 40022 118521 186678 121186 185960
13
Extraordinary Items (net of tax expenses)
0 0 0 0 0 0 0
14
Net Profit (+) / Loss (-) for the period (12-13)
12615 31083 40022 118521 186678 121186 185960
15
Paid-up equity share capital (Face Value of share is Rs10.00)
50003 50003 50003 50003 50003 50003 50003
16
Reserves excluding revaluation reserves
998326 914659 914659 999650 914658 1022221
934240
17 Analytical Ratios
(i)
Percentage of shares held by Government of India
55.24 55.24 55.24 55.24 55.24 55.24 55.24
(ii)
Capital Adequacy Ratio (%) (As per Basel- II)
11.03 11.96 12.83 11.03 12.83 11.85 13.99
(iii)
Earnings per share (Rs.) a. Basic and diluted EPS before
2.52 6.22 8.40 23.70 39.18 24.24 39.03
78
Extraordinary Items (net of tax expense) for the period, for the year to date and for the previous year (not annualised)
b. Basic and diluted EPS after Extraordinary Items for the period, for the year to date and for the previous year (not annualised)
2.52 6.22 8.40 23.70 39.18 24.24 39.03
(iv)
NPA Ratios a) (i) Gross NPA
513699 353160 205898 513699 205898 513699 205898
(ii) Net NPA
412676 247750 109170 412676 109170 412676 109170
(b) (i) % of Gross NPA
3.92 2.91 1.83 3.92 1.83 3.92 1.83
(ii) % Net NPA
3.19 2.06 0.98 3.19 0.98 3.19 0.98
(c) Return on Assets
0.26 0.67 0.88 0.64 1.02 0.64 1.02
18
Public Shareholding
-- Number of shares
223810771
223810771
223810771 223810771
223810771
223810771
223810771
--Percentage of share holding
44.76 44.76 44.76 44.76 44.76 44.76 44.76
19 Promoters and promoter group
276215418
276215418
276215418 276215418
276215418
276215418
276215418
79
Shareholding
a) Pledged/Encumbered
- Number of Shares
NIL NIL NIL NIL NIL NIL NIL
-Percentage of share (as a % of the total shareholding of promoter and promoter group)
NIL NIL NIL NIL NIL NIL NIL
-Percentage of share (as a % of the total share capital of the company)
NIL NIL NIL NIL NIL NIL NIL
b) Non-encumbered
- No of Shares
276215418
276215418
276215418 276215418
276215418
276215418
276215418
-Percentage of share (as a % of the total shareholding of promoter and promoter group)
100 100 100 100 100 100 100
-Percentage of share (as a % of the total share capital of the company)
55.24 55.24 55.24 55.24 55.24 55.24 55.24
80
Statements of Assets and Liabilities are as under:
Rs. in lacs
Particulars As on 31.03.2013 (Audited)
As on 31.03.2012 (Audited)
Capital and Liabilities:
Capital 50003 50003
Reserve and Surplus 1085249 1000659
Deposits 17874160 15959308
Borrowings 1009759 909448
Other Liabilities 418148 374039
Total 20437319 18293457
Assets:
Cash and Balances with Reserve Bank of India 780822 871245
Balances with Bank and Money at Call and Short Notice
526251 531276
Investments 5830586 5428324
Advances 12948965 11114510
Fixed Assets 125152 119773
Other Assets 225543 228329
Total 20437319 18293457
81
QUESTIONNAIRE
Allahabad Bank – Help us to serve you even better Dear Valued Customer,
Your candid feedback on our service standards is very important for us to help you even better. We would like to know a little more about you:- Your Name: ____________________________________________________ Your Customer Id/A/c No. (Optional): _______________________________ Your Branch: ___________________________________________________ Your E-mail id: _________________________________________________ Your Contact details: _____________________________________________ How frequently do you visit the Branch (in a month)? ___________________ ______________________________________________________________
82
We would like to know about your experience of banking with us. Please tick as appropriate. A. How was the Branch experience?
1) Is the branch timings (10:00 am to 3:30 pm from Monday to Friday and 10:00 am to 12:30 pm on Saturday) are convenient?
a) Very Good b) Good c) Satisfactory d) Could be
better
2) Is the branch atmosphere & layout is very friendly? a) Very Good b) Good c) Satisfactory d) Could be Better
3) Is the Branch was clean and well maintained? a) Very Good b) Good c) Satisfactory d) Could be Better B. How did you find our Branch personnel?
4) Is the Branch personnel have listened to you patiently and have been able to respond to your queries and clarifications?
a) Very Good b) Good c) Satisfactory d) Could be
better
5) Is the Branch personnel have been very helpful and courteous? a) Very Good b) Good c) Satisfactory d) Could be better
6) Is the branch personnel have done a ‘Need Analyses’ & ‘Risk Assessment’ before recommending any investment option?
a) Very Good b) Good c) Satisfactory d) Could be better
7) Is the branch personnel were aware of Product and Services and responded to your queries?
a) Very Good b) Good c) Satisfactory d) Could be
better
C. How was your experience of transacting in our Branches?
8) Is the waiting time at the Teller Counter was minimal? a) Very Good b) Good c) Satisfactory d) Could bebe better
83
9) Is the transactions done by us have been smooth & error free? a) Very Good b) Good c) Satisfactory d) Could be
better
10) Is Allahabad bank looks into the feedback provided by you and takes necessary action if required?
a) Very Good b) Good c) Satisfactory d) Could be
better 11) Are you Happy with the TAT (Turn Around Time) post request?
a) Very Good b) Good c) Satisfactory d) Could be better
12) Which feature of the Allahabad Bank Savings account you like most? a) Mahila Sanchay b)Vikash SB A/C c) Current plus Deposit Scheme
d) Rs 5 Banking D. How do you like what we send to you?
13) How do you rate the COMMUNITY EVENTS held at Allahabad Bank?
a) Very Good b) Good c) Satisfactory d) Could be better
14) Is the information in the Bank Statement clear, easy to understand and adequate?
a) Very Good b) Good c) Satisfactory d) Could be
better 15) Will you recommend Allahabad Bank to your friends and relatives?
a) Most Definitely b) Yes c) May be d) No Thank You
84
BIBLIOGRAPHY
BOOKS:
� Retail Banking (By Indian Institute of Banking and Finance), Macmillan � Retail Management (By Bajaj Tulsi Shrivastva), OXFORD, University
Press
INTERNET:
� www.allahabadbank.in � www.rbi.org.in � www.wikipedia.org � www.moneycontrol.com � www.wikipedia.org/Mckinsey_7S_Framework � www.mindtools.com/pages/article/newSTR_91.htm
