scoda tubes

A

Research Proposal

On

“A study to find out impact of HRD Climate on Job Satisfaction of employees working in Pharmaceutical sector within Ahmedabad ”

Submitted to

(Kalol Institute of Management)

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

In

Gujarat Technological University

UNDER THE GUIDANCE OF

Ms. Radhika Gandhi

Assistant Professor

Submitted by

(Seju Zalak)

[Batch: 2012-14, Enrollment No.:127250592148]

KALOL INSTITUTE OF MANAGEMENT Page 1

MBA SEMESTER III

(Kalol Institute of Management)

MBA PROGRAMME

Affiliated to Gujarat Technological University

Ahmedabad

Nov-Dec, 2013


Introduction of banking sector

1.1 Introduction [1] [2]

A bank is a financial institution that provides banking and other financial services to their customers. A bank is generally understood as an institution which provides fundamental banking services such as accepting deposits and providing loans. There are also nonbanking institutions that provide certain banking services without meeting the legal definition of a bank. Banks are a subset of the financial services industry. A banking system also referred as a system provided by the bank which offers cash management services for customers, reporting the transactions of their accounts and portfolios, through out the day. The banking system in India, should not only be hassl free but it should be able to meet the new challenges posed by the technology and any other external and internal factors. For the past three decades, India’s banking system has several outstanding achievements to its credit. The Banks are the main participants of the financial system in India. The Banking sector offers several facilities and opportunities to their customers. All the banks safeguards the money and valuables and provide loans,credit, and payment services, such as checking accounts, money orders, and cashier’s cheques. The banks also offer investment and insurance products. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits. 21

1.2 Need of the Banks

Before the establishment of banks, the financial activities were handled by money lenders and individuals. At that time the interest rates were very high. Again there were no security of public savings and no uniformity regarding loans. So as to overcome such problems the organized banking sector was established, which was fully regulated by the government. The organized banking sector works within the financial system to provide loans, accept deposits and provide other services to their customers. The following functions of the bank explain the need of the bank and its importance:

• To provide the security to the savings of customers.

• To control the supply of money and credit

• To encourage public confidence in the working of the financial system, increase

savings speedily and efficiently.

• To avoid focus of financial powers in the hands of a few individuals and

institutions.


• To set equal norms and conditions (i.e. rate of interest, period of lending etc) to all

types of customers

1.3 History of Indian Banking System [6] [7]

The first bank in India, called The General Bank of India was established in the year 1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which was established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and Bank of Madras) were called as Presidency Banks. Allahabad Bank which was established in 1865, was for the first time completely run by Indians. Punjab National Bank Ltd. was set up in 1894 with head quarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. In 1921, all presidency banks were amalgamated to 22 form the Imperial Bank of India which was run by European Shareholders. After that the Reserve Bank of India was established in April 1935. At the time of first phase the growth of banking sector was very slow. Between 1913 and 1948 there were approximately 1100 small banks in India. To streamline the functioning and activities of commercial banks, the Government of India came up with the Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as a Central Banking Authority After independence, Government has taken most important steps in regard of Indian Banking Sector reforms. In 1955, the Imperial Bank of India was nationalized and was given the name "State Bank of India", to act as the principal agent of RBI and to handle banking transactions all over the country. It was established under State Bank of India Act, 1955. Seven banks forming subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major process of nationalization was carried out. At the same time 14 major Indian commercial banks of the country were nationalized. In 1980,

another six banks were nationalized, and thus raising the number of nationalized banks to 20. Seven more banks were nationalized with deposits over 200 Crores. Till the year 1980 approximately 80% of the banking segment in India was under government’s ownership. On the suggestions of Narsimhan Committee, the Banking Regulation Act was amended in 1993 and thus the gates for the new private sector banks were opened. The following are the major steps taken by the Government of India to Regulate Banking institutions in the country:-

1949 : Enactment of Banking Regulation Act.

1955 : Nationalisation of State Bank of India.

1959 : Nationalization of SBI subsidiaries.

1961 : Insurance cover extended to deposits.

1969 : Nationalisation of 14 major Banks.


1971 : Creation of credit guarantee corporation.

1975 : Creation of regional rural banks.

1980 : Nationalisation of seven banks with deposits over 200 Crores. 23

1.3.1 Nationalisation [3]

By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensured about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the Government of India (GOI) in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation". The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from th midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "Masterstroke of political sagacity" Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of (Undertaking) Bill, and it received the presidential approval on 9 August, 1969.

A second step of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second step of nationalisation, the GOI controlled around 91% of the banking business in India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. The nationalised banks were credited by some; including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009.

1.3.2 Liberalisation [3]

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalisation, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of 24 Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move along with the rapid growth in the economy of India revolutionized the banking sector in India which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it


has gone up to 49% with some restrictions. The new policy shook the banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for the traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets as compared to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be voted by them. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and 25 personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

1.3.3 Government policy on banking industry (Source:-The federal Reserve Act 1913 and

The Banking Act 1933)

Banks operating in most of the countries must contend with heavy regulations, rules enforced by Federal and State agencies to govern their operations, service offerings, and the manner in which they grow and expand their facilities to better serve the public. A banker works within the financial system to provide loans, accept deposits, and provide other services to their customers. They must do so within a climate of extensive regulation, designed primarily to protect the public interests. The main reasons why the banks are heavily regulated are as follows:

• To protect the safety of the public’s savings.

• To control the supply of money and credit in order to achieve a nation’s broad

economic goal.

• To ensure equal opportunity and fairness in the public’s access to credit and other

vital financial services.


• To promote public confidence in the financial system, so that savings are made

speedily and efficiently.

• To avoid concentrations of financial power in the hands of a few individuals and

institutions.

• Provide the Government with credit, tax revenues and other services.

• To help sectors of the economy that they have special credit needs for eg.

Housing, small business and agricultural loans etc. 26

1.3.4 Law of banking [3]

Banking law is based on a contractual analysis of the relationship between the bank and customer—defined as any entity for which the bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows:

• The bank account balance is the financial position between the bank and the customer: when the account is in credit, the bank owes the balance to the customer; when the account is overdrawn, the customer owes the balance to the bank.

• The bank agrees to pay the customer's cheques up to the amount standing to the credit of the customer's account, plus any agreed overdraft limit.

• The bank may not pay from the customer's account without a mandate from the customer, e.g. cheques drawn by the customer.

• The bank agrees to promptly collect the cheques deposited to the customer's account as the customer's agent, and to credit the proceeds to the customer's account.

• The bank has a right to combine the customer's accounts, since each account is just an aspect of the same credit relationship.

• The bank has a lien on cheques deposited to the customer's account, to the extent that the customer is indebted to the bank.

• The bank must not disclose details of transactions through the customer's account—unless the customer consents, there is a public duty to disclose, the bank's interests require it, or the law demands it.

• The bank must not close a customer's account without reasonable notice, since cheques are outstanding in the ordinary course of business for several days. These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in


force within a particular jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship. 27

1.3.5 Regulations for Indian banks [4]

Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank license to operate. Usually the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits, even if they are not repayable to the customer's order—although money lending, by itself, is generally not included in the definition. Unlike most other regulated industries, the regulator is typically also a participant in the market, i.e. a government-owned (central) bank. Central banks also typically have a monopoly on the business of issuing banknotes. However, in some countries this is not the case. In UK, for example, the Financial Services Authority licenses banks, and some commercial banks (such as the Bank of Scotland) issue their own banknotes in addition to those issued by the Bank of England, the UK government's central bank. Some types of financial institutions, such as building societies and credit unions, may be partly or wholly exempted from bank license requirements, and therefore regulated under separate rules. The requirements for the issue of a bank license vary between jurisdictions but typically include:

• Minimum capital

• Minimum capital ratio

• 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior officers

• Approval of the bank's business plan as being sufficiently prudent and plausible.

1.4 Classification of Banking Industry in India [1] [2] [9] [13]

Indian banking industry has been divided into two parts, organized and unorganized sectors. The organized sector consists of Reserve Bank of India, Commercial Banks and Co-operative Banks, and Specialized Financial Institutions (IDBI, ICICI, IFC etc). The 28 unorganized sector, which is not homogeneous, is largely made up of money lenders and indigenous bankers.

An outline of the Indian Banking structure may be presented as follows:-

1. Reserve banks of India.

2. Indian Scheduled Commercial Banks.

a) State Bank of India and its associate banks.

b) Twenty nationalized banks.


c) Regional rural banks.

d) Other scheduled commercial banks.

3. Foreign Banks

4. Non-scheduled banks.

5. Co-operative banks.

1.4.1 Reserve bank of India

The reserve bank of India is a central bank and was established in April 1, 1935 in accordance with the provisions of reserve bank of India act 1934. The central office of RBI is located at Mumbai since inception. Though originally the reserve bank of India was privately owned, since nationalization in 1949, RBI is fully owned by the Government of India. It was inaugurated with share capital of Rs. 5 Crores divided into shares of Rs. 100 each fully paid up. RBI is governed by a central board (headed by a governor) appointed by the central government of India. RBI has 22 regional offices across India. The reserve bank of India was nationalized in the year 1949. The general superintendence and direction of the bank is entrusted to central board of directors of 20 members, the Governor and four deputy Governors, one Governmental official from the ministry of Finance, ten nominated directors by the government to give representation to important elements in the economic life of the country, and the four nominated director by the Central Government to represent the four local boards with the headquarters at Mumbai, Kolkata, Chennai and 29

New Delhi. Local Board consists of five members each central government appointed for a term of four years to represent territorial and economic interests and the interests of cooperative and indigenous banks.

The RBI Act 1934 was commenced on April 1, 1935. The Act, 1934 provides the statutory basis of the functioning of the bank. The bank was constituted for the need of following:

- To regulate the issues of banknotes.

- To maintain reserves with a view to securing monetary stability

- To operate the credit and currency system of the country to its advantage.

Functions of RBI as a central bank of India are explained briefly as follows:

Bank of Issue: The RBI formulates, implements, and monitors the monitory policy. Its main objective is maintaining price stability and ensuring adequate flow of credit to productive sector.

Regulator-Supervisor of the financial system: RBI prescribes broad parameters of banking operations within which the country’s banking and financial system functions. Their main objective is to maintain


public confidence in the system, protect depositor’s interest and provide cost effective banking services to the public.

Manager of exchange control: The manager of exchange control department manages the foreign exchange, according to the foreign exchange management act, 1999. The manager’s main objective is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.

Issuer of currency: A person who works as an issuer, issues and exchanges or destroys the currency and coins that are not fit for circulation. His main objective is to give the public adequate quantity of supplies of currency notes and coins and in good quality.30

Developmental role: The RBI performs the wide range of promotional functions to support national objectives such as contests, coupons maintaining good public relations and many more.

Related functions: There are also some of the related functions to the above mentioned main functions. They are such as, banker to the government, banker to banks etc….

• Banker to government performs merchant banking function for the central and the

state governments; also acts as their banker.

• Banker to banks maintains banking accounts to all scheduled banks.

Controller of Credit: RBI performs the following tasks:

• It holds the cash reserves of all the scheduled banks.

• It controls the credit operations of banks through quantitative and qualitative

controls.

• It controls the banking system through the system of licensing, inspection and

calling for information.

• It acts as the lender of the last resort by providing rediscount facilities to

scheduled banks.

Supervisory Functions: In addition to its traditional central banking functions, the Reserve Bank performs certain non-monetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act 1934 and the banking regulation act 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction and liquidation. The RBI is authorized to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalisation of 14


major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realisation of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving 31 the standard of banking in India to develop on sound lines and to improve the methods of their operation.

Promotional Functions: With economic growth assuming a new urgency since independence, the range of the Reserve Bank’s functions has steadily widened. The bank now performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve bank was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized financing agencies.

1.4.2 Indian Scheduled Commercial Banks

The commercial banking structure in India consists of scheduled commercial banks, and unscheduled banks.

Scheduled Banks: Scheduled Banks in India constitute those banks which have been included in the second schedule of RBI act 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42(6a) of the Act. “Scheduled banks in India” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the s State Bank of India (subsidiary banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank”. For the purpose of assessment of performance of banks, the Reserve Bank of India categories those banks as public sector banks, old private sector banks, new private sector banks and foreign banks, i.e. private sector, public sector, and foreign banks come under the umbrella of scheduled commercial banks.32

Regional Rural Bank: The government of India set up Regional Rural Banks (RRBs) on October 2, 1975 [10]. The banks provide credit to the weaker sections of the rural areas, particularly the small and marginal farmers, agricultural labourers, and small enterpreneurs. Initially, five RRBs were set up on October 2, 1975 which was sponsored by Syndicate Bank, State Bank of India, Punjab National Bank, United Commercial Bank and United Bank of India. The total authorized capital was fixed at Rs. 1 Crore which has since been raised to Rs. 5 Crores. There are several concessions enjoyed by the RRBs by Reserve Bank of India such as lower interest rates and refinancing facilities from NABARD like lower cash ratio, lower statutory liquidity ratio, lower rate of interest on loans taken from sponsoring banks, managerial and staff assistance from the sponsoring bank and reimbursement of the expenses on staff training. The RRBs are under the control of NABARD. NABARD has the responsibility of laying down the policies for the RRBs, to oversee their operations, provide refinance facilities, to monitor their

performance and to attend their problems.


Unscheduled Banks: “Unscheduled Bank in India” means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank”.

1.4.3 NABARD

NABARD is an apex development bank with an authorization for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated and sustainable rural development and secure prosperity of rural areas. In discharging its role as a facilitator for rural prosperity, NABARD is entrusted with:

1. Providing refinance to lending institutions in rural areas

2. Bringing about or promoting institutions development and

3. Evaluating, monitoring and inspecting the client banks

33

Besides this fundamental role, NABARD also:

• Act as a coordinator in the operations of rural credit institutions

• To help sectors of the economy that they have special credit needs for eg.

Housing, small business and agricultural loans etc.

1.4.4 Co-operative Banks [10]

Co-operative banks are explained in detail in Section – II of this chapter

1.5 Services provided by banking organizations [2]

Banking Regulation Act in India, 1949 defines banking as “Accepting” for the purpose of lending or investment of deposits of money from the public, repayable on demand and withdrawable by cheques, drafts, orders etc. as per the above definition a bank essentially

performs the following functions:-

• Accepting Deposits or savings functions from customers or public by providing bank account, current account, fixed deposit account, recurring accounts etc.

• The payment transactions like lending money to the public. Bank provides an effective credit delivery system for loanable transactions.

• Provide the facility of transferring of money from one place to another place. For performing this operation, bank issues demand drafts, banker’s cheques, money orders etc. for transferring the money. Bank also provides the facility of Telegraphic transfer or tele- cash orders for quick transfer of money.


• A bank performs a trustworthy business for various purposes.

• A bank also provides the safe custody facility to the money and valuables of the general public. Bank offers various types of deposit schemes for security of money. For keeping valuables bank provides locker facility. The lockers are small compartments with dual locking system built into strong cupboards. These are stored in the bank’s strong room and are fully secured.

• Banks act on behalf of the Govt. to accept its tax and non-tax receipt. Most of the government disbursements like pension payments and tax refunds also take place through banks. 34 There are several types of banks, which differ in the number of services they provide and the clientele (Customers) they serve. Although some of the differences between these types of banks have lessened as they have begun to expand the range of products and services they offer, there are still key distinguishing traits. These banks are as follows:

Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks.

Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services.

Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks.

Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks—which provide all services entirely over the Internet—have entered the market, with some success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches.

Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals.

Credit unions are another kind of depository institution. Most credit unions are formed by people with a common bond, such as those who work for the same company or belong to the same labour union or church. Members pool their savings and, when they need money, they may borrow from the credit union, often at a lower interest rate than that demanded by other financial institutions.

Federal Reserve banks are Government agencies that perform many financial services for the Government. Their chief responsibilities are to regulate the banking industry and to help implement our Nation’s monetary policy so our economy can run more efficiently


Structure of Indian bank

1. Reserve Bank of India:

Reserve Bank of India is the Central Bank of our country. It was established on 1st April 1935

under the RBI Act of 1934. It holds the apex position in the banking structure. RBI performs

various developmental and promotional functions. It has given wide powers to supervise and

control the banking structure. It occupies the pivotal position in the monetary and banking

structure of the country. In many countries central bank is known by different names.


For example, Federal Reserve Bank of U.S.A, Bank of England in U.K. and Reserve Bank of

India in India. Central bank is known as a banker’s bank. They have the authority to formulate

and implement monetary and credit policies. It is owned by the government of a country and has

the monopoly power of issuing notes.

2. Commercial Banks:

Commercial bank is an institution that accepts deposit, makes business loans and offer related

services to various like accepting deposits and lending loans and advances to general customers

and business man. These institutions run to make profit. They cater to the financial requirements

of industries and various sectors like agriculture, rural development, etc. it is a profit making

institution owned by government or private of both.

Commercial bank includes public sector, private sector, foreign banks and regional rural

banks:

a. Public sector banks:

It includes SBI, seven (7) associate banks and nineteen (19) nationalised banks. Altogether there

are 27 public sector banks. The public sector accounts for 90 percent of total banking business in

India and State Bank of India is the largest commercial bank in terms of volume of all

commercial banks.

b. Private sector banks:

Private sector banks are those whose equity is held by private shareholders. For example, ICICI,

HDFC etc. Private sector bank plays a major role in the development of Indian banking industry.

c. Foreign Banks:

Foreign banks are those banks, which have their head offices abroad. CITI bank, HSBC,

Standard Chartered etc. are the examples of foreign bank in India.

d. Regional Rural Bank (RRB):

These are state sponsored regional rural oriented banks. They provide credit for agricultural and

rural development. The main objective of RRB is to develop rural economy. Their borrowers


include small and marginal farmers, agricultural labourers, artisans etc. NABARD holds the apex

position in the agricultural and rural development.

3. Co-operative Bank:

Co-operative bank was set up by passing a co-operative act in 1904. They are organised and

managed on the principal of co-operation and mutual help. The main objective of co-operative

bank is to provide rural credit.

The cooperative banks in India play an important role even today in rural co-operative financing.

The enactment of Co-operative Credit Societies Act, 1904, however, gave the real impetus to the

movement. The Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to

broad basing it to enable organisation of non-credit societies.

Three tier structures exist in the cooperative banking:

i. State cooperative bank at the apex level.

ii. Central cooperative banks at the district level.

iii. Primary cooperative banks and the base or local level.

4. Scheduled and Non-Scheduled banks:

A bank is said to be a scheduled bank when it has a paid up capital and reserves as per the

prescription of RBI and included in the second schedule of RBI Act 1934. Non-scheduled bank

are those commercial banks, which are not included in the second schedule of RBI Act 1934.

5. Development banks and other financial institutions:

A development bank is a financial institution, which provides a long term funds to the industries

for development purpose. This organisation includes banks like IDBI, ICICI, IFCI etc. State

level institutions like SFC’s SIDC’s etc. It also includes investment institutions like UTI, LIC,

and GIC etc.


Introduction of axis bank

Government of India allowed new private banks to be established.Axis Bank Ltd. has been promoted by the largest and Axis Bank established in 1993 was the first of the new private banks to have begun operations in 1994 after the the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC – Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India),Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003. Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI–I and UTI–II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US–64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

Axis Bank entered a deal in November 2010 to buy the investment banking and equities units of Enam Securities for $456 million. Axis Securities, the equities arm of Axis Bank, will merge with the investment banking business of Enam Securities.As per the deal, Enam will demerge its investment banking, institutional equities, retail equities and distribution of financial products, and non–banking finance businesses and merge them with Axis Securities.

Services offered by the bank:

Personal Banking

Corporate Banking

NRI Banking

Priority Banking

VBV – Online purchases using Credit Card

VBV / MSC – Online purchases using Debit Card

Milestones:


2013–Axis Bank voted for Most Trusted Private Sector Bank in the country in the Most Trusted Brands

survey 2013 by Brand Equity.

2012 –Reached 2 lakh installed EDC machines – the highest for any bank in India

Becomes the first Bank in the world to reach $2 billion loading on prepaid Travel CurrencyCards

2011– Launches India travel card – India's first and only Indian currency prepaid travel card for foreign

nationals

Nov–10– Axis Bank enters a deal to buy the investment banking and equities units of Enam Securities

April–09 –Board of the bank recommended the appointment of Shikha Sharma, head of ICICI

Prudential? Life Insurance Co. Ltd, as its managing director and chief executive officer.

Mar–08 – Axis Bank launches Platinum Credit Card, India's first EMV chip based card

Dec–07 – Axis Bank gets AAA National Long–Term Rating from Fitch Ratings

Sept–07 – Axis Bank ties up with Banque Privée Edmond de Rothschild Europe for Wealth

Management

July–07 – UTI Bank re–brands itself as Axis Bank

July–07 – UTI Bank successfully raises USD 1050 million

July–07 – UTI Bank ties up with Tata Motors Ltd. for Car Loans

June–07 –UTI Bank's expansion into Asia supported by FRS

May–07 – UTI Bank launches 'Spice Rewards' on the bankcards – India's first–ever merchant–

supported rewards program

April–07 – UTI Bank opens a Financial Services Category I Branch in the DIFC in Dubai

Mar–07 – UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans

Mar–07 – UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the country

Mar–07 – UTI Bank launches Car Loans in association with Maruti Udyog Ltd

Mar–07 – UTI Bank opens a Full Licence Bank Branch in Hong Kong

Feb–07 – Finance Minister Shri P. Chidambaram Launches Shriram – UTI Bank Co – Branded Credit

Card Exclusively For Small Road Transport Operators (SRTOS)

Feb–07 – UTI Bank announces the launch of its Meal Card

Feb–07 – UTI Bank announces the launch of its Gift Card

Feb–07 LIC Premium payment now through UTI Bank Branches

Jan–07 – UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov–06 – UTI Bank opens Priority Banking Lounge in Pune


Sep–06 – UTI Bank launches operations of UBL Sales, its Sales Subsidiary – Inaugurates its first office in

Bangalore

Aug–06 – UTI Bank announces the launch of its Credit Card Business

Aug–06 – UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital

in the International Market

Aug–06 – UTI Bank Business Gold Debit Card MasterCard Launched – Designed for business related

spending by SMEs and self employed professionals

Aug–06 – UTI Bank announces the scheme of issuance of 'Senior Citizen ID Card' in association with

Dignity Foundation

Aug–06 – UTI Bank rolls out its 2000th ATM

July–06 – UTI Bank opens Representative Office in Shanghai

May–06 – UTI Bank and LIC join hands to launch an Annuity Card for group pensioners of LIC

May–06 – UTI Bank ties up with Geojit Financial Services to offer Online Trading service to its

customers

Apr–06 – UTI Bank opens its first international branch in Singapore

Jan–06 UTI Bank and UTI Mutual Fund to launch a new service for sale and redemption of mutual fund

schemes through the Bank's ATMs across the country

Dec–05 – UTI Bank wins International Financing Review (IFR) Asia 'India Bond House' award for the

year 2005

Oct–05 – UTI Bank extends banking services to the rural milk producers in Anand and Kheda districts

in Gujarat

July–05 – UTI Bank and Visa International launch Mobile Refill facility – Anytime, Anywhere Pre–Paid

Mobile Refill for all Visa Cardholders in India

May–05 – UTI Bank and Bajaj Allianz join hands to distribute general insurance products

Apr–05 – UTI Bank launches Smart Privilege – a special bank account designed for women

Mar–05 – MTNL ties up with UTI Bank for payment of telephone bills through the Bank's ATM network

Mar–05 – UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million through

Global

Mar–05 – Depositary Receipts (GDRs)

Feb–05 – UTI Bank appointed by Government of Karnataka as the sole banker for the Bangalore One

(B1) project

Feb–05 – UTI Bank launches a powerful version of Kisan Credit Card


Jan–05 – UTI Bank ties up with Remit2India to launch the Remittance Card

Mar–04 – UTI Bank enables premium payment of LIC policies through its ATMs.

Feb–04 – Bilateral arrangement between State Bank of India (and its 7 associate member banks) and

UTI Bank comes into force with the commencement of operations (as on 3rd February '04) of the

combined network of over 4000 ATMs

Feb–04 – UTI Bank (by pursuing a proactive strategy of forging bilateral agreements and being a

progressive player in the multi–lateral consortiums for shared ATM network) offers its customers

access to over 7000 ATMs across the country – the largest to be offered by any bank in India so far.

Dec–03 – Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This ATM is at the

highest altitude in India.

Sep–03 – The Bank's ATMs across the country crosses the thousand mark

Sep–03 – Bank launches the Travel Currency Card.

Aug–03 – The Bank's Debit Card crosses the one million mark.

Aug–03 – Total Advances cross Rs 7,000 Crore.

May–03 – Bank declares a net profit of Rs 192.18 crores for FY03, a growth of 43% over the previous

year

Mar–03 – Bank signs Agreement with Employees Provident Fund Organization (EPFO) for

disbursement of Pension

Mar–03 – Bank crosses the 800 ATM mark

Mar–03 – The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs. 164.00 crores,

through a

Mar–03 – Preferential offer to Life Insurance Corporation of India (now constituting 13.54% of

Mar–03 – The Bank's expanded equity), Citicorp Banking Corporation, Bahrain (holding 3.84%),

ChrysCapital I,

Mar–03 – LLC, Mauritius (holding 3.84%) and Karur Vysya Bank Ltd.(constituting 1.00%) The Bank also

Mar–03 – Increases the authorised share capital of the Bank from Rs. 230 crores to Rs. 300 crores.

Feb–03 – Bank, in a pioneering move, launches the AT PAR Cheque facility, free of cost, for all its

Savings Bank customers.

Feb–03 – Bank wins mandate to set up 14 ATMs at the Western Railway stations along the Mumbai

division.

Oct–02 – Bank launches Corporate iConnect? – the Internet Banking facility for Corporates


Aug–02 – Bank signs MoU with BSNL regarding bill collection services across the country through both

online and offline channels.

Apr–02 – Bank opens its 500th ATM

Mar–02 – Deposits Cross Rs.12, 000 Crore

Jan–02 – The Bank's 100th branch opens at Tuticorin,Tamilnadu

Jan–02 – The Bank opens an ATM at the Gol Dak–Khana, i.e. the New Delhi GPO, making it the first

instance of a commercial bank setting up an ATM at any post–office in the country.

Dec–01 – Total Advances cross Rs 5,000 Crore

Nov–01 – The deposit base for the Bank crosses Rs. 10,000 Crore

Sep–01 – Private placement of 26% stake in the Bank to CDC Capital Partners. UTI holding reduces to

44.88%

Aug–01 – Bank signs MoU with India Post for introducing value added financial products and services

to customers of both organizations, including setting up of UTI Bank ATMs in post offices.

July–01 – Bank ties up with Govt of Andhra Pradesh for collection of commercial tax

Dec–00 – Bank opens its 200th ATM. It becomes the 2nd largest ATM network in the country, a

position held even today.

Oct–00 – Bank becomes fully networked

July–00 – E–commerce initiatives announced

July–00 – Financial Advisory Services offered beginning with marketing of US 64

Apr–00 – UTI Bank calls off its proposed merger with Global Trust Bank and surges ahead on its own.

Apr–00 – Bank launches its Internet banking module, iConnect Retail loans introduced for the first

time by the Bank

Mar–00 – Profits cross Rs 50 crore mark for the first time.

Feb–00 – Bank adopts Finacle software from Infosys for core banking

Jan–00 – Dr.P.J Nayak takes over as Chairman and Managing Director from Shri Supriya Gupta.

Sep–99 – Cash management services (CMS) launched, Co branded credit card launched

Mar–99 – Deposits cross Rs.3000 crores

Sep–98 – UTI Bank goes public with a Rs. 71 crore public issue; Issue over–subscribed 1.2 times, over 1

lakh retail investors. UTI holding reduces to 60.85%

Jun–96 – Crosses Rs.1000 crore deposit mark

Mar–95 – Completes first profitable year in operation


Apr–94 – First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan Singh, Hon'ble

Finance Minister, Government of India.

Dec–93 – UTI Bank comes into being

Dec–93 – Registered office at Ahmedabad; Head office at Mumbai

Awards /Achievements:

Axis bank was awarded Best bank award in the private sector category at NDTV Profit Business

Leadership Awards 2008.

Axis Bank was awarded Best Debt House – India award at Euromoney 2008.

The bank was honoured Best Bond House in India award at The Finance Asia 2008.

Axis Bank was awarded Best Domestic Debt House award at the Asia Money 2008.

Business World ,Best Bank Awards– Fastest Growing Large Bank

Business Today,Best Bank Awards – India's Best Bank, India's Fastest Growing Bank, India's Most

Consistent Bank

ET Intelligence Group–Best Bank 2009

NDTV Profit Business Leadership Awards 2009 –Best bank Private Sector

Forbes Fab 50–The Best of Asia Pacific's Biggest Listed Company

FE Best Banks Award–Best New Private Sector bank,Rank 1 Talisma – Customer Appreciation Award

2009

D & B Best Bank Awards – Best Private Bank

Lafferty Award – Best Annual Report–India

1.Bank of the Year – India –The Banker Awards 2011

2.Best Bank in the Private Sector – NDTV Profit Business Leadership Awards 2011

3.Best Bank – Outlook Money Awards 2011

4.The Best Domestic Bank – India – The Asset Triple A Country Awards 2011

5.Fastest Growing Bank – Bloomberg UTV Financial Leadership Awards 2012

6.Most Productive Private Sector Bank– FIBAC 2011 Banking Awards

7.3rd Strongest Bank in Asia –Pacific Region by Asian Banker

8.Brand Excellence Award– 2011(BFSI Sector) – Star News

9.Most Preferred Bank amongst retail consumers – CLSA survey on personal banking trends

10.Best Bond House India – 2011 by Finance Asia

11.Best Risk Master award – (Private Sector Category) – FIBAC 2011 Banking Awards


1.Bank of the Year – Money Today FPCIL Awards 2012–13

2.Best Bank – CNBC–TV18 India’s Best Bank and Financial Institution Awards 2012

3.Best Bank – Runner Up – Outlook Money Awards 2012

4.Consistent Performer – India’s Best Banks – 2012 Survey by Business Today & KPMG

5.Fastest Growing Large Bank – Dun & Bradstreet – Polaris Financial Technology Banking Awards 2012

6.Fastest Growing Large Bank – Businessworld Best Banks Survey 2012

7.Best Domestic Bond House – The Asset Triple A Country Awards 2012 – Our Bank has been honored

with this award for the third year in a row.

8.India Bond House of the year – IFR ASIA – Country Awards 2012

9.Deal Maker of the Year in Rupee Bonds – Businessworld Magna Awards – India's Best Deal Makers

2012

10.The Best Emerging Bullion Dealing Bank – 9th India International Gold Convention–2011–12

11.Best Acquiring Institution in South Asia – Visa LEADER Award at Visa’s 2012 APCEMEA Security

Summit, Bali

12.Gold Shield for Excellence in Financial Reporting in the Private Banks category – 2011–12 – ICAI

(Institute of Chartered Accountants of India)

1.Axis Bank voted for Most Trusted Private Sector Bank in the country in the Most Trusted Brands

survey 2013 by Brand Equity.

2.Axis Bank ranked no. 1 bank in INDIA in both Primary & Secondary market of corporate bonds –The

Asset Benchmark Research

3.Best Debt House in India – Euromoney Awards for Excellence 2013

4.Axis Bank ranked No 1 company to work for in the BFSI sector – 'The Best Companies to Work for'

survey by Business Today

5.Consistent Performer – India’s Best Banks – 2013 Survey by Business Today & KPMG

6.Runner up for Best Bank category– Outlook Money Awards 2013

7.Fastest Growing Large Bank – Business World – PWC Survey of India’s best banks 2013

8.Banking frontiers Finnoviti 2013 Awards for ‘FxConnect’

9.Ranked No 1 in the IT Biz Award – large enterprises category by Express IT Awards

10.Innovation for 2013 for Ladies First card under ‘the Most Innovative Broad Based Product Offering’

category– IBA Innovations Award

11.Axis Bank featured in Asia's Fab50 companies for 2013 by Forbes Asia

12.Gold Shield for second year in a row for Excellence in Financial Reporting in the Private Banks


category – 2012–13 – ICAI (Institute of Chartered Accountants of India)

13.Second Runners Up for Best Financial Inclusion Initiative amongst Private Sector Banks– IBA

Banking Technology Awards 2013

14.Second Runners Up for Best Technology Bank of the Year amongst Private Sector Banks– IBA

Banking Technology Awards 2013

15.Second Runners Up for Best Risk Management & Security Initiative amongst Private Sector Banks–

IBA Banking Technology Awards 2013

16.Second Runners Up for Best Internet Bank amongst Private Sector Banks– IBA Banking Technology

Awards 2013

Fastest Growing Large Bank– BW Businessworld Magna Awards 2014

Introduction of bank of baroda

Bank of Baroda (BoB) was founded by Maharaja Sayajirao Gaekwad in July 1908. It started with a paid up capital of Rs 10 lakh. Bank of Baroda is a pioneer in various customer centric initiatives in the Indian banking sector. Bank is amongst first in the industry to complete an all–inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken along with the change of logo. The initiatives include setting up of specialized NRI Branches, Gen–Next Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans.

Ever since its rebranding in 2005, bank has consistently promoted its major strengths viz. large international presence; technological advancement and superior customer service etc. Bank had introduced the sub brand BARODA NEXT–State of the Art–Straight from the Heart to showcase how it has utilized technology to nurture long term relationships for superior customer experience. The sub brand has been reinforced by alternate delivery channels such as internet banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories, SME Loan Factories, City Sales Office etc. Bank?óÔé¼Ôäós constant endeavor to strengthen its branch/ATM network combined with well informed staff offering personalized service at its various touch points have enhanced customer interactions and satisfaction. Thus the Bank has firmly positioned itself as a technologically advanced customer–centric bank.

Business

Retail banking It offers products and services such as deposits, loans, credit and debit cards, demat services, remittances, ECS (electronic clearing services, government business, etc.

Rural and agri banking It offers products and services such as deposits, agricultural loans, lockers services, etc to rural customers and agricultural sector.

Corporate banking It provides project finance, film finance, foreign currency loans, working capital finance, treasury products, etc to the corporate sector.


SME BoB also offers products and services to SME sector.

Wealth Management It provides wealth management services to companies in areas of insurance and mutual funds. In insurance it offers services to HDFC and National Insurance Company. In mutual funds it provides services to UTI, Birla Sun Life, Reliance Mutual Fund, Sundaram BNP Paribas, Franklin Templeton Investments and Baroda Pioneer Asset Management Company.

Bank's subsidiaries

Domestic

BOBCARDS Ltd.

BOB Capital Markets Ltd.

Nainital Bank Ltd.

Overseas

Bank of Baroda (Botswana) Ltd.

Bank of Baroda (Kenya) Ltd.

Bank of Baroda (Uganda) Ltd.

Bank of Baroda (Guyana) Ltd.

Bank of Baroda (New Zealand) Ltd

Bank of Baroda (Tanzania) Ltd

Bank of Baroda (Trinidad & Tobago) Ltd.

Bank of Baroda (Ghana) Ltd.

Overseas – Representative Offices

Bank of Baroda (Thailand)

Bank of Baroda (Malaysia)

Bank of Baroda (Australia)

Domestic – Associate

Baroda Pioneer Asset Management Company Ltd

India First Life Insurance Company Limited

Baroda Uttar Pradesh Gramin Bank

Baroda Rajasthan Gramin Bank


Baroda Gujarat Gramin Bank

Nanital –Almora Kshetriya Gramin Bank

Jhabua–Dhar Kshetriya Gramin Bank

Overseas – Associate

Indo–Zambia Bank Ltd. (Lusaka)

Awards

Bank of Baroda – Best Public Sector Bank: MCX and CNBC?óÔé¼ÔÇ£TV18, India?óÔé¼Ôäós No. 1

Business medium presented for the first time, the ?óÔé¼?£India Best Banks and Financial Institutions

Awards?óÔé¼Ôäó to felicitate India?óÔé¼Ôäós best financial professionals for their contribution in

building a robust financial system.

Bank of Baroda receives Award for performance under SME: Bank of Baroda, known for innovative

approach in financing SMEs nationwide has received National Award for performance under

implementation of PMEGP scheme during 2010–11 in Central Zone.

Bank of Baroda receives Award for Best Initiatives in Inclusive Banking: In FIBAC Banking Awards

2011, held at Mumbai, Bank of Baroda was given a special award for ?óÔé¼?£Best Initiatives in

Inclusive Banking.?óÔé¼Ôäó The award recognizes the Bank's contribution to reach multiple

segments of industry and the general population, increasing the reach of formal banking – a key

national priority.

Bank of Baroda Wins Dun & Bradstreet Award: Dun & Bradstreet (D&B), the world?óÔé¼Ôäós leading

provider of global business information, knowledge and insight, announced and presented the ?

óÔé¼?£Dun & Bradstreet – Polaris Software Banking Awards 2011?óÔé¼Ôäó in Mumbai.

Bank of Baroda receives Skoch Award: Bank of Baroda has received Financial Inclusion Award 2011

instituted by Skoch Consultancy Services. The award has been given to the bank for an endeavour to

tap the potential asset of unskilled unemployed youth of India to impart them training by setting up

Baroda Swarojgar Vikas Sansthan (BSVS) – Baroda R–SETI Centres

Bank of Baroda bags Bank of the year 2010 (for India): Bank of Baroda was awarded with the 'Bank of

Year 2010 – India' in The Banker Awards 2010 of 'The Banker' Magazine, UK.

Bank of Baroda bags three awards from ABCI: Bank of Baroda bagged three awards from Association

of Business Communicators of India in an award function held at Mumbai.


Bank of Baroda bags the Best Bank 2010 Award: Bank of Baroda has been conferred upon Best Bank

2010 award by the prestigious financial magazine, Business India in recognition of its consistent

performance.

Bank of Baroda has been conferred upon Best Bank 2010 award by the prestigious financial magazine,

Business India in recognition of its consistent performance: Bank of Baroda bags Dalal Street– DSIJ

PSU Award: Bank of Baroda bags Dalal Street– DSIJ PSU Award.

Bank of Baroda bags four Awards of ABCI for the year 2009

Bank of Baroda receives Millennium National Rajbhasha Shield

Bank of Baroda receives ?óÔé¼?ôBank of the year?óÔé¼?Ø Award

Bank awarded for its 'Global Business Development'

Bank of Baroda bags three Awards of ABCI for the year 2008

Association of Business Communicators of India (ABCI) Awards (2006)

Bank of Baroda awarded the Outlook Money NDTV Profit Awards 2007.

AMITY Leadership Award for Sectoral Excellence in Banking

SPJIMR Marketing Impact Awards (SMIA) 2007

The Employer Branding Awards 2007

Association of Business Communicators of India (ABCI) Award

Title:- Factors Affecting On Customer Satisfaction in Retail Banking: An Empirical Study

Author:- Pairot

Publisher:- 2008

Abstract:-


Pairot (2008) defined Customer‟s satisfaction as the company's ability to fulfill the business,

emotional, and psychological needs of its customers. In the words of Oliver (1981, p.27),

customer satisfaction is “the summary psychological state resulting when the emotion

surrounding disconfirmed expectations is coupled with the consumer‟s prior feelings about the

consumption experience.” Customer satisfaction has also been defined by Hunt (1977, p.459) as

“an evaluation rendered that the (consumption) experience was at least as good as it was

supposed to be.” Furthermore, Engel and Blackwell (1982, p.501) have opined it to be “an

evaluation that the chosen alternative is consistent with prior beliefs with respect to that

alternative.” It is a well-researched fact that investments in customer satisfaction, customer

relationships and service quality leads to profitability and market share Rust and Zahorik (1993).

Put differently, customer satisfaction leads to customer loyalty and this also leads to profitability

Hallowell (1996). If customers are satisfied with a particular high quality service offering after

its use, then they can be expected to engage in repeat purchase and even try line extensions and

thus market share can be improved.

Title:- Factors Affecting On Customer Satisfaction in Retail Banking: An Empirical Study

Author:- Levesque and McDougall

Publisher:- 1996

Abstract:-

Levesque and McDougall (1996) have empirically confirmed and reinforced the notion that

consistent poor customer experience leads to a decrease in the levels of customer satisfaction and

the chances of further willingness to recommend the service (i.e., word-of-mouth advertising or

referrals) is lessened. Previous researches have shown strong linkages between service quality

dimensions and overall customer satisfaction (Anderson and Sullivan (1993)). Service quality is

accepted as one of the basic factors of customer satisfaction (Parasuraman et al., (1994)).

However, there is much debate whether customer satisfaction is a precursor of service quality

judgements (Parasuraman et al., (1985) and Bitner et al., (1990)) or the other way round

(Anderson and Sullivan, (1993)). Definitive analysis has showed that service quality cannot be

divorced from the concept of customer satisfaction. Recent studies have shown that satisfaction

is influenced by not only perceptions of service quality but also by perceptions of product


quality, and pricing factors as well as situational and personal factors (Zeithaml and Bitner,

(2000)). For example, customer satisfaction with retail banking will be a broader concept and

will certainly be influenced by perceptions of service quality but will also include perceptions of

product quality (such as variety of deposit options available to customers), price of the

products(i.e., charges charged by the bank or rates offered by the banks on various deposits),

personal factors such as the consumer‟s emotional state, and even uncontrollable situational

factors such as weather conditions and experiences in conveying to and from the bank.

Title:- Customer Satisfaction in Indian Retail Banking: A Grounded Theory Approach

Author:- Singh and Kaur

Publisher:- 2011

Abstract:-

Singh and Kaur (2011) determined the factors that have an impact on customer satisfaction as

regards the working of select Indian universal banks. The study was conducted using the survey

method. Data were collected through a well-structured questionnaire from a sample of

respondents. The major findings of the study show that customer satisfaction is influenced by

seven factors – employee responsiveness, appearance of tangibles, social responsibility, services

innovation, positive word-of-mouth, competence, and reliability. The results of multiple

regression showed that three variables: social responsibility, positive word-of-mouth, and

reliability have major influences on the overall satisfaction of the customer.


Author:- Ganguli and Roy

Publisher:- 2011


Abstract:-

Ganguli and Roy (2011) studied the factors affecting customer satisfaction in the Indian retail

banking sector. Online structured questionnaire developed to determine the factors for customer

satisfaction was distributed among the respondents. The dimensions were identified using an

exploratory factor analysis (EFA). Next the reliability and validity of the factors for customer

satisfaction were established through confirmatory factor analysis (CFA). The paper identifies

four generic dimensions in the technology-based banking services – customer service,

technology security and information quality, technology convenience, and technology usage

easiness and reliability. It was found that customer service and technology usage easiness and

reliability have positive and significant impact on customer satisfaction.


Author:- Sadeghi and Hanzaee

Publisher:- 2010

Abstract:-

Sadeghi and Hanzaee (2010) validated a measurement model for customer satisfaction

evaluation in e-banking service quality based on different service quality models and theories

such as technology acceptance model, theory of reasoned action and theory of planned behavior.

The paper provides a model of seven factors for customer satisfaction on the following

dimensions - convenience, accessibility, accuracy, security, usefulness, bank image, and web site

design.


Author:- Herington and Weaven

Publisher:- 2009


Abstract:-

Herington and Weaven (2009) explored the factors affecting customer satisfaction for e-retail

banking in Australia. Results are drawn from a self-completed survey of a convenience sample

of Australian respondents who regularly use online banking facilities. Factor analysis and

regression analysis were used to ascertain factor structure for customer satisfaction. A four-factor

solution represented by personal needs of the customer, website organization, user-friendliness

of the websites and efficiency were found, with all factors rated as important.


. Research Methodology:

7.1 Research DesignResearch Approach – Quantitative Approach will be used for the purpose of this

study.

Research Type – Descriptive type of research will be preferred.

7.2 Sources of DataBoth Primary and Secondary data will be used to gather information for the purpose

of this study. Secondary data has been and will be collected through Magazines,

Library, Websites, and Books whereas Primary data will be collected through Survey

Method.

7.3 Data Collection Tool: A structured questionnaire will be used as a data collection Instrument.

7.4 Sample Design Sample Type: Non Probability

Sample Method: Convenience Sampling

Sample Size -200

Sample Unit- Employees working in selected pharmaceutical firms within

Ahmedabad


8 Scope of the study: The study will aim at finding out the Impact of Human Resource Development Climate on Job Satisfaction of Employees working in selected Pharmaceutical firms within Ahmedabad.

9. Probable Data Analysis and Findings:

There will be a significant relationship between HRD climate and Job Satisfaction and any positive change in HRD climate will lead to high level of Satisafction. The Positive HRD Climate will have a strong influence on overall Organization Effectivemess.


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