Shivaji University, Kolhapur

Shivaji University, Kolhapur

INTRODUCTION TO THE STUDYRetail Banking in which banking institutions execute transactions directly with customers Typical products: savings and transaction accounts; mortgages; personal loans; debit and credit cards, etc Working principle: Law of Large Numbers; probabilistic modeling Critical success factors: Distribution Branch, channels Branding Unit costs cost per account, cost per transaction Pricing Risk management .The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking. It may also be used to refer to a division of a bank dealing with retail customers and also be termed as personal banking services. Retail Banking encompasses retail deposits schemes, retail loans, credit cards, deposit cards, insurance products, mutual funds, Depository services including demat facilities. It includes various products and services forming a part of the assets as well as the liabilities segments of bank.Definition: Retail banking is nothing but banking catering to the multiple requirements of individuals relating to deposits, advances and associated services.Objective: To ascertain from the customers the type of bank they would prefer for operating their accounts. To identify the various types of services offered by bank which the customers are presently availing. To check the level of satisfaction about the different types of services offered by the banks. To identify the awareness of the retail banking system in the people and their preferences. To give suggestions to the local branch to improve their banking services.Importance of study1. This study will be useful to understanding the practical significance products and services of the bank.

2. It is important study on the retail banking products and services.

3. It is also useful to the organization to understand effectiveness of their products and services.Research Methodology:A Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.The development of Research plan has the following steps:1. Data Sources:Two types of data were taken into consideration i.e. Primary data and Secondary data.a)Primary data- Primary data is the first hand data is collected for the research in the study. Primary data collected from direct personal interviews and investigation through questionnaire.b)Secondary data-Secondary data is secondary information which is collected from secondary sources. In this particular study. Secondary data collected from internet, books, journals, Banks brochures, annual publications etc.2. Research Instrument:The instruments are used for the collecting information means the primary data such as the questionnaire, personal interview etc.3. Sampling:a) Sampling Unit: Survey conducted in Sangli City.b) Sample Size: The sample consisted of 50 respondents. The sample was drawn from walk in customers of The Saraswat Co-operative Bank Ltd. The respondents were selected on the basis of simple random sampling.c) Contact Methods: contacted the respondents through personal interviews.4. Analysis of the information:Research tools used for analysis of data are used for data analysis. i.e. Table, Graphs, Diagrams, Tabulation, Simple average method, Ranking, Weighted average, Percentage etc.5. Presentation of Findings:This was the last step of the survey.Scope and limitations of study:Scope: The present study is restricted to the subject A Perception in Retail Banking System Preference and Approach towards Retail Banking to Saraswat Co-operative Bank Ltd, Sangli. The universe covers not the Sangli city only.Limitations: Many of the respondents were so busy that they hardly could give time to complete the questionnaire and to discuss. Many respondents hesitated to express fully and truly their view. INTRODUCTION TO THE ORGANISATION. Company Profile:The Bank has a very humble but a very inspiring beginning. On 14th September 1918, "The Saraswat Co-operative Banking Society" was founded. Mr. J.K. Parulkar became its first Chairman, Mr. N.B. Thakur, the first Vice-Chairman, Mr. P.N. Warde, the first Secretary and Mr. Shivram Gopal Rajadhyaksha, the first Treasurer. These were people with deep and abiding ideals, faith, vision, optimism and entrepreneurial skills. These dedicated men in charge of the Society had a commendable sense of service and duty imbibed in them. Even today, their honorable founders inspire a sense of awe and respect in the Bank and amongst the shareholders. The Bank has the unique distinction of being a witness to history. The Bank, which was originally founded in 1918, i.e. close on the heels of the Russian Revolution, also witnessed as a Society and as Bank - the First World War, the Second World War, India's freedom Movement and the glorious chapter of post-independence India. During this cataclysmic cavalcade of history, the Bank as a financial institution and its members could not of course remain unaffected by the economic consequences of the major events. The two wars in particular brought in their wake, paucities of all kinds and realities and stand by its members in distress as a solid bulwark of strength. The Founder Members and the later-day managements of the Bank continued to demonstrate their unwavering faith in the destiny of the common man and the co-operative movement and they encouraged the shareholders to save despite all odds.Thanks to these sustained and assiduous efforts over 25 years after its inception, the Bank had gained a strong foundation in terms of its membership, resources, assets and profits. By 1942, the Bank was fulfilling all the banking needs of its customers. During the late fifties, the Bank grew from strength to strength. The Bank had established five branches within the city of Mumbai and one each at Pune and Belgaum. In its 50th year, the Bank chose a bee motif to symbolize the Bank's emblem - a fitting and appropriate characteristic of a Bank that believed in hard work, a search for all that is good, a team spirit to achieve its objectives and selfless service to its members and customers. The Bank had grown in stature, progressed in its social and economic objectives and produced an image of what an ideal bank should be. Resultantly, in the year 1977-78, the Bank's gross income crossed the Rs.3.00 crore marks for the first time. In 1988, the Bank was conferred with "Scheduled" status by Reserve Bank of India. The Bank is the first co-operative bank to provide Merchant Banking services. The Bank got a permanent license to deal in foreign exchange in 1978. Presently the Bank is having correspondent relationship in 45 countries covering 9 currencies with over 125 banks. In 1992, the Bank completed 75 years. Platinum Jubilee Celebrations were inaugurated on 14th September, 1992 and the Bank also crossed the business level of Rs. 700 Crores.The beginning of the 21st century has been a giant leap forward for the Bank. The Bank chose a path of organic/inorganic growth and our pace of growth accelerated .The Bank's total business which was around Rs.4000 Crore in 2000 almost tripled to Rs.15295 Crore in 2007.In the year 2008, the Bank launched a Branding Initiative. The purpose of such an exercise was to reconfirm the thrust of the Bank on its core values, which can be summed up as a "Sense of Belonging". The name of the Bank should always inspire a Sense of Belonging in all its stakeholders and the Bank continues to fulfill the changing needs and expectations of the customer with unflinching gusto and aplomb.

MISSION STATEMENT"To emerge as one of the premier and most preferred banks in the country by adopting the highest standards of professionalism and excellence in all the areas of working"MILESTONES In the last two decades the Bank has witnessed a steady growth in business and also taken several Strategic Business Initiatives such as undertaking Business Process Reengineering initiative, merging seven Cooperative Banks and then consciously nurturing them. The Bank tied up with VISA International for issuance of Debit Cards.In 2011, the Bank was granted permission for All India Area of Operation by Reserve Bank of India. The Bank hasan ambitious business expansion plan in place to have a presence in all major cities of the country, reach a business level of Rs.50000 Crores by 2016 and Rs.100000 Crores by 2018.The Bank has a network of 229 fully computerized branches as on 31st March, 2013 covering six states viz. Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Goa and Delhi. The Bank is providing 24-hour service through ATMs at 159 locations. As on 31st March, 2013 the Bank's business had surpassed Rs. 36000 Crores. The Bank has retained its coveted position as ZERO NET NPA Bank for the ninth successive year.It is a matter of immense pride for the Bank that its new Corporate Office at Prabhadevi Mumbai has become operational. The officeestablishesour strong presence in thefinancialcapital of thecountry. The massive edifice in crystal glass in the heartofMumbai gently reminds everyone of the Numero-Unoposition which the Bank holds in the Cooperative Sector. The usage of state of art technology coupled withpersonalambience to make everybody comfortable once again reiterates the Bank's adherence to "Think Global, Act Local". The address of our new Corporate Office is as under:

"Service to the Common Man" has been the motto of Saraswat Bank for the last95 years. Bank in spite of its growth in size has been able to offer to the customersthe dual advantage of "Ability of Big Banks and Agility ofSmall Banks"The Bank still continues to function with the glorious tradition in public services Besides being the largest Urban Co-operative Bank in India, Saraswat Bank has now become the largest in Asia. Saraswat Bank has now229 fully computerized branches as of 31st March 2013,15 Zonal Offices and departments located across 6 States viz. Maharashtra, Goa, Gujarat, Madhya Pradesh, Karnataka and DelhiSaraswat Bank attributes this success to its undying spirit to serve the common man and to the sharpening of its competitive edge by constantly upgrading technology to match international standards. The Bank is fully computerized and offers convenient workingSaraswat Bank has introduced a wide range of credit schemes at attractive interest rates, which has become very popular, especially among the middle-class in view of the easy repayment plans. Bank offers attractive interest rates on deposits and also various add on features at very market competitive rates.

Products and services of Saraswat co-operative bank:Personal Sector:>>>Deposit SchemesSavingsCurrent AccountsTerm Deposit>>>Retail LoansVastu Siddhi Housing LoanSuper-Fast Car LoanSuper-Fast Car loan - High End CarSajawat Loan SchemeSaraswati Education LoanPravasi- Travel LoanGold Loan YojanaMulti-Purpose Loan>>>Investment & Insurance > InsuranceProtection PlansChildrens PlanRetirement PlansSavings and Investment PlansHealth Plans> Mutual Funds

>>>Demat Individual Account Corporate AccountNRI / FOREX Sector:NRI Deposit NRI Loans Overseas (Nostro) Account Forex Centres Remittance Services Money Transfer ServicesCorporate Sector:Udyogini Micro Finance - Self Help Groups Small & Medium Enterprises (SMEs) Traders Trade FinanceServices Sector:VISA Debit Card SMS Banking Easy Pay Insurance Mutual Fund Other Bank (NFS) Network GOMO Share Holders Miscellaneous Services

Company Profile of Franchise: Sangli Branch. Name of the organization: The Saraswat co-operative Bank Limited Address: Stand road, Shastri chowk, Sangli. Telephone No.: 0233 -2332294 Year of establishment: 1st July 2007. Name of Branch manager: Mr. Sanjay Vasantrao Bhosale. Turnover 2013-14: Rs.98,60,67,872.62

The current branch of Saraswat Cooperative bank earlier was the Annasaheb Karale Cooperative bank. On 1stjuly 2007 Annasaheb Karale Janata co-operative 0Bank which are situated in Sangli got merged in the SARASWAT CO-OPERATIVE BANK. Also On 1stjuly 2008 the Maratha Bank, Jaisingpur also merged in the Saraswat co-operative Bank at the same branch.

ORGANISATION STRUCTUREBRANCH MANAGERDY MANAGERDY MANAGER

JUNIOR OFFICERJUNIOR OFFICERJUNIOR OFFICERJUNIOR OFFICERJUNIOR OFFICERJUNIOR OFFICER

OFFICE ASSISTANTOFFICE ASSISTANT

THEORETICAL BACKGROUND:What is a Bank?

A Bank is a financial organization which accepts deposits that can be withdrawn ondemand and also lends money to individuals and business houses that need it.Structure of banking sector in India

Figure No.1

A) Retail Banking: Retail Banking refers to provision of banking products and services offered to individual customers, typically for non-entrepreneurial purposes. On the liability side, banking has invariably always been retail i.e. the banks have raised resources from a large number of retail depositors. In that sense when we talk about retail banking, our focus is on the asset side i.e. lending to the retail segment. Thus, on the whole, retail banking involves offering of products both sides of the balance sheet e.g. fixed, current / savings accounts on the liability side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the asset side. Additionally, retail banking also involves offering of credit cards, depository services and other para-banking products and services viz. insurance products, capital market products etc. to individuals. Thus, retail banking services broadly corresponds to the banking services providing in the intermediate phase of evolution of banking. It is contextual to mention here that real economies in most of the developing countries have matured enough to demand products and services offered not only during the intermediate phase but also during the advanced phase and hence retail banking, embracing all products and services relating to consumption and speculative function of the economy, has become relevant in these jurisdictions. Retail banking is the most visible face of banking for the general public. These services are typically offered at the physical brick-and-mortar branches and at the ubiquitous ATMs. The delivery channel for retail banking is now no longer restricted to branches and ATMs but also spans telephone and the fastest growing channel i.e. internet. In fact, some retail banks in the west operate solely via the internet and do not have facilities to serve customers at physical outlets. Generally, however, the banks that focus purely on retail clientele are relatively few and retail banking activities are generally conducted by separate divisions within banks. Typically, retail banking services begin with a target clientele which is the common masses and it slowly graduates through a stage which can be called as class retail banking. The mass retail banking is the stage in which the bank provides standardized banking products and services to its customers. In this phase the banks attempt to build a sufficiently broad customer base which can serve as a stable source of funding. The class retail banking on the other hand, is the stage in which the bank offers customized products and services targeted at a niche customer segment, the high net worth individuals. Retail banking focused solely at a niche customer segment may also be termed as private banking. A graphical representation of the positioning of mass retail banking vis--vis other segments of banking is as under: This is not really confined only to emerging markets but is a global phenomenon. The confusion primary emanates from whether the banking services offered for entrepreneurial purposes should be considered as part of retail banking or not. Many of the banks include the banking services extended to small borrowers and SME clients also as part of mass retail banking. In my view, the retail banking in its most basic form is only about servicing the individuals (mostly the masses) for non-entrepreneurial purposes. The retail banking over a period of time can make a transition to class banking and banking for entrepreneurial purposes for the individuals, for agriculture or for small businesses (SMEs). This is particularly so as many aspects of retail banking in terms of delivery of services (large number of small value transactions) and risk management practices (scoring model, model based capital assessment) are also applicable to small businesses run by individual entrepreneursB) HISTORY OF RETAIL BANKING:Basic banking services such as deposits for safe keeping, saving, or borrowing for personal or business use is as old as human civilization. Organized banking services started in 15th and 16 century Europe, when banks began opening branches in commercial areas of large cities. By the last quarter of the 19th century, banks were consolidating their branch networks so that they could operate in a more integrated manner. Mergers and acquisitions allowed banks to grow quickly but, in the absence initially of information and communication technologies, their services remained largely local.The policy of opening new branches continued throughout the twentieth century as a means of business expansion, but services were limited to the provision of routine operations such as deposits, withdrawals and basic loan services. To cope with the increasing volume of work, and to achieve consistency across branch networks, banks started to standardize their record keeping and accounting practices. This also helped them to effectively connect branches. Standard record keeping also resulted in the appearance of new professions such as bank clerks. The arrival of the typewriter in the late nineteenth century helped to standardize internal/external communications, and other tools such as the telegraph made communications between branches and headquarters a daily routine.

C) STRUCTURE OF RETAIL BANKINGAs mentioned in the previous section, the traditional banking business model is based on physical decentralization, with branches scattered around populated areas, providing a range of services. The rationale behind such branch investment is the need to distribute banking services, encourage usage, and maintain contact with customers. Such a structure allows these institutions to provide a large range of products and services, but all at the high costs associated with premises and staff. In the past, a large branch network was source of competitive advantage, as it gave customers easier geographic access and the reassurance that the bank has substantial resources and hence offers security for their savings (Jayewardene& Foley, 2000) Banks needed large investments to develop and maintain such network, so it worked as an entry barrier for new entrants and retail banking remained mostly the preserve of a few large banks, especially in Europe. One notable exception is the US, where there are more than 8000 community banks and nearly 9000 member-owned banking institutions regulated by the National Credit Union Administration During the last decade or so, new players such Internet only banks as well as other organizations such as supermarkets have also started to offer retail financial services. While large banks still hold the major market share, these other organizations are making significant inroads. The importance of services distribution channels is also changing at a rapid pace. In the past the main source of retail banking services distribution was 'brick and mortar' branches. With the arrival of other channels such as telephone banking and e-banking, the number of branches is steadily declining, a trend also fuelled by mergers and takeovers. Now, most banks choose to deliver their products and services through multiple channels, including the internet and telephone.The retail banking space proved to be an oasis of relative calm amidst the tumult caused by the Financial Tsunami that the world continues to grapple with even today. The customer deposit garnered by retail banking represents an extremely important source of stable funding for most banks. In this context, it is essential for the banks to keep pushing the frontiers of innovation and experimentation in the retail banking space to survive and also to remain relevant. One of the most essential elements of a strong customer bank relationship is the banks understanding of customer needs and preferences. However, with the massive increase in their size and their customer base, the banks have slowly drifted away from understanding their customers needs and preferences closely. Further, the proliferation of alternate delivery channels has necessitated that banks build their presence across all channels (Omni-channel presence) to offer their services to their customers. As the banks cant probably dictate that their customers chose specific channel, the challenges for the banks is to design products/systems which are channel/segment agnostic.While retail banking offers phenomenal opportunities for growth, the challenges are equally daunting. The exacting regulatory requirements on the consumer protection front, risks from a slowing global economy and increasing customer expectations mean that banks must innovate to grow. How far the mass retail banking of the future would be able to fulfill its socio-economic objectives would in a large measure depend upon the willingness of the banks to innovate and reform their business processes and structures for this cause. It is in the banks own interest to be alive to the customers interests; else they might have to face stiff regulatory sanctions. Post crisis, several jurisdictions in the developed world have seen public demands for ethical pricing. In this Facebook and Twitter age, the banks cannot remain oblivious to the power of the social media which wields enough clout to forcibly reform the outliers through negative publicity. Only such retail banks, who inculcate ability to churn out innovative and differentiated products by harnessing cutting-edge technology, greatly improve their productivity and efficiency, bring a fair, transparent and non-discriminatory pricing and demonstrate a commitment towards fair treatment to their customers, would be able to survive and add value to the society Retail loans can be risky when individuals lack purchasing power.

D) Why Banks focus on retail Business:Financial DisintermediationTraditionally, banks have been catering to demands of economic developments; finance for manufacturing activities had a greater priority. Reliance of commercial banks was on blue-chip companies for development of funds. A scenario has emerged wherein there is a lack of demand for credit from large corporate, primarily due to two reasons: Near demise of working capital requirements due to enhancement in activities like productivity and increased sales realization. Corporate have their own avenues, e.g. tapping public deposits and issuance of shares and debentures.

Emerging issues in Handling Retail Banking:Knowing the customer:A concept which is easier said than practiced. Each branch should set up data warehouse wherein meaningful data on customers, their preference, spending patterns, etc. can be mined.Technology Issues:Retail banking calls for huge investments in technology e.g. providing anytime, anywhere convenience to vast number of customers and delivery channels through asynchronous transfer modes (ATMs), which requires a huge investment by the banks.Product innovation:All new products may not become successful. Products should be introduced to create value, not amusement. The days of selling products on the shelves are gone in the banking sector.Pricing of products:The banking sector is witnessing a pricing war with each bank wanting to have a larger slice of the market share. The much needed transparency in pricing is also missing with hidden charges. For example, minimum amount due and total amount due in the credit card application form and processing charges are not advertised.Advantages of retail banking system.Retail banking is a concept which is relatively new and all banks are giving thrust to retail banking, it refers to providing banking services to individual customers and focus is on small ticket transactions rather than big ticket transactions. Retail banking has many advantages, lets look at some of them The first and foremost advantage of retail banking is that it increases the overall business of the banks and also helps in improving the brand image because a customer is more likely to remember a brand when he or she uses it himself or herself rather than just seeing it in newspapers or television advertisements. So for example in banking if you ask a normal individual about name of bank which has retail operations then he or she will quickly recognize it but if you ask the same individual about some big investment bank dealing with corporate clients having operations in many countries chances are individual would not have even heard the name of that bank because he or she has never dealt with them. Since in retail banking the ticket size of loan is smaller and if borrower or group of borrowers becomes insolvent then it does not put that much strain on the bank balance sheet as opposed to some big corporate going bankrupt because the ticket size of loan is quite high in case of corporate loans. In simple words one can say that retail banking gives the advantage of diversification to the bank. Cost of deposit of funds in case of retail banking is much lower as compared to wholesale banking because retail customers unlike corporate customers do not bargain for rate of interest on their fixed deposits as they do not have large sums of money and hence they are price takers rather than price makers. Brand loyalty in case of retail customers is higher as compared to large companies or high net worth individuals because normal individuals want better customer service and safety of their funds and if bank is able to provide them both then chances are that they will not switch the bank and will continue be loyal customers of bank for many years. It is easy to sell third party products like insurance, mutual fund and provide other non-fund based services to retail customers and therefore improve the bottom line of the banks without any credit risks which is there if bank depends only on loans as their income and that is the reason why many banks today are focusing more on non-fund based portfolio rather than fund based portfolio

Data analysis and interpretation is the process which is based on the collected data. With the help of primary data by filling the questionnaire of 50 respondents the interpretation performed.

DATA ANALYSIS AND INTERPRETATIONQ) 1 Personal information:a) Age of respondents:Table No. 1.aAge group in years18-2526-3536-6060+

No.of respondents1715144

Chart No. 1.a

Interpretation: There are highest numbers of users of retail banking system in the age group of 18-25. The age group of 60 and above years old were started to use retail banking system.Retail banking system is the banking concept which also includes e-banking facility.b) Gender Factor: Table No 1.bGenderMaleFemale

No.of respondents.428

Chart No.1.b

Interpretation: The females are very less in number than men as the user of retail banking system.But, it is a good sign of Indian economy as well as the social aspects that women are economically independent. And also aware about retail banking system.

c) Education of respondents:Table No. 1.cEducationUnder graduationGraduationPost-graduationProfessional degree

No.of respondents103622

Chart No. 1.c

Interpretation: Most of the user of retail banking system completed their graduation. Under graduation user of retail banking system are slightly higher than post graduate and professional degree persons.The literacy plays an important role for using retail banking system but also customers who are less educated are also users of retail banking system and understand its functions.

d) Occupation of respondents:Table No. 1.dOccupationSelf employedGovernment servicePrivate serviceAny other

No.of respondents1732010

Chart No. 1.d

Interpretation: Most of the users of retail banking system are from private sector. Self-employed users are the next. Less users of retail banking system are from government employees. Some students and retired persons too came in the survey.The government employees have their salary account in PSU banks. All their banking transactions are handled from this account. Other customers are attracted towards the retail banking system because of its number of benefits.e) Annual income of respondents:Table No.1.eAnnual income in RsBelow 1lakh1 lakh to 4 lakh4 lakh to 8 lakh8 lakh and above

No. of respondents.1417127

Chart No. 1.e

Interpretation: The user who has annual income 1 lakh 4 lakhs are large in numbers. We can see almost all income groups use retail banking system. As seen in the graph there are more users having income below1 lakh.There are more opportunities to attract other income group people towards retail banking system.

2) Which type of bank you prefer for operating your account?Table no. 2Type of bankCo-operative bankcommercial bankBoth type of bank.

No.of respondents40108

Chart No. 2

Interpretation: Most of the respondents prefer co-operative bank for banking operations. Less people prefer commercial bank for banking operations.From the above graph it is seen that from total number of respondents, large number of people prefer co-operative bank over commercial bank.

3) Are you aware of all products and services under retail banking system?Table No.3AwarenessYesNo

No. of respondents3911

Chart No.3

Interpretation: Most of the respondents are aware about the all products and services of retail banking system. Fewer respondents are unaware about all products and service of retail banking system.In the aspect of awareness of products and services of retail banking system, from the survey it is seen that some respondents are aware of retail banking system but are unaware of all products and services of retail banking system.

4) From which type of services you are currently using from retail banking system?Table No. 4Type of servicesPersonal bankingNRI servicesCorporate banking

No. of respondents35015

Chart No.4

Interpretation: Most of respondents use personal banking service from retail banking system. Such as mobile Banking and deposit schemes. As compare to personal banking service there is less number of users of corporate banking system. There are no respondents who use the NRI banking service from retail banking system. In such situation it requires more efforts to attract people towards various services and products of retail banking system to get more deposits from NRIs and corporate sector.5) Which type of products and services you use from personal sector of retail banking?Table No. 5Type of products and servicesNo. of respondents.

Deposit schemes20

Retail loans15

Investment & insurance10

Mutual fund3

DEMAT Account1

Mobile banking37

Any other services34

Chart No. 5

Interpretation: Most of respondents use personal banking service from retail banking system. As compare to personal banking service there is less number of users of corporate banking system. There are no respondents who use the NRI banking service from retail banking system. In such situation it requires more efforts to attract people towards various services and products of retail banking system to get more deposits from NRIs and corporate sector. In other services, nowadays every bank provides the facility of ATM cards, internet banking and easy pay to pay the bills..

6) In deposit schemes which type of account you use to make your deposit?Table No. 6Type of accountNo. of respondents

Saving account29

Current account7

Term deposit account26

Chart No. 6

Interpretation: Most of the respondents have their saving accounts for deposit purpose. Next are the respondents having term deposit account for deposit purpose. Fewer numbers of persons having current accounts for deposit purpose.From above chart it is seen that there is a wide scope for savings account schemes. This is very effective way for low income people to save their income/money in this type of account. 7) In which type of saving accounts you make deposit?Table No. 7Type of accountNo. of respondents

Regular saving account22

akshay salary account3

CUBS account for kids2

Suvidha saving account0

Campus account1

Janhit account for any individual or jointly.1

Chart No. 7

Interpretation: While making saving, most of the people use Regular saving account from saving account scheme. Next preferences for Akshay salary account, CUBS account for kids, Campus account for college students and janhit account for individually and jointly. There are no customers who respondents who have suvidha saving account which is a zero balance account type.

8) Which scheme of term deposit you use?Table No. 8SchemeNo.of respondents

Fixed deposit19

Recurring deposit5

Madhukar tax saving account2

Chart No. 8

Interpretation: Most of the people prefer fixed deposit scheme for term deposit purpose. Next preference is for recurring deposit scheme for term deposit purpose.. Very low response is occurs for madhukar tax saving deposit scheme.The bank has always attracted the people of all income groups when it comes for term deposit schemes. It is one of the most preferred non- marketable modes of investment.9) While making deposits which factor will you prefer?

Table No. 9FactorsHighly preferredPreferredLow preferred

High Interest rate4111

Low risk467

Trust1620

Good returns981

Chart No. 9

Interpretation: This analysis shows that trust on banking system is most preferred factor as compare to other factors like high interest rate, low risk and good returns on deposits by the customers while make deposits. Also high interest rate, low risk, good returns are also preferable factors by the customers for making deposits. No any customer initiates to make deposit in bank without trust on banks prosperity and system. While make deposits people usually prefers rate of interest, low risk, and trust on bank and good returns on deposits.

10) Which type of loan you take from this bank?

Table No. 10

Type of loanNo. of respondents

Vastu siddhi housing loan10

superfast car loan6

Sajawat loan for house repairs and renovation1

Sarswati Education loan0

Pravasi-travel loan0

Gold loan0

Multipurpose loan7

Chart No. 10

Interpretation: Most of the people take vastu siddhi housing loan from retail loan scheme. Next preference of retail loan is for multipurpose loan scheme, then for Superfast car loan and sajawat loan for house repairs and renovation. There is no response for saraswati education loan, Pravasi travel loan and gold loan. It is seen that multipurpose loan has demand after the home loan. The interest rate for loans and repayment facilities are attract the more customers. The customers are not aware about the education loan, pravasi travel loan, and gold loan.

11) How much percentage of your loan you are repaid?

Table No. 11

PercentageNo.of respondents

0% to 25%7

26% to 50%9

51% to 75%5

76% to 100%3

Chart No. 11

Interpretation: Most of the borrowers repay their loan to the bank at 26% to 50%. Next is 0% to 25% and after that 51% to 75%. Very less number of borrowers repays their loan to bank at 76% to 100%.From the graph it is seen that, Bank have to take more efforts on collecting the loan amount as early as possible.

12) Which plan you have chosen for insurance?

Table no. 12

PlanNo.of respondents

Protection plan3

Children's plan1

Retirement plan0

Investment plan5

Health plan1

Chart No. 12

Interpretation: Most of the respondents for insurance policy have Investment plan. Next preference is for protection plan, next is Childrens plan and health plan. There is no response found for Retirement plan of insurance.Insurance is the best way to protect from uncertain risks. And also now a dayspeople are preferring insurance policy for the investment purpose.

13) Do you pay your premium of insurance regularly?

Table No. 13Payment of premiumNo. of respondents

Yes9

No1

Chart No. 13

Interpretation:

Most of the insurance holder pays premium of insurance policy regularly. Very less respondents does not pay premium regularly.It is very good sign for banks point of view that policy holders are paying their premium of insurance policy regularly.

14) Are you investing in mutual fund?

Table No. 14

OpinionNo. of respondents.

Yes3

No47

Chart No. 14

Interpretation: Very few number of respondent investing in mutual fund through the bank. High number of respondents does not mutual fund investment facility through the bank.Bank has to give more efforts to attract people towards mutual fund investment through the bank. After investments in bank investors prefer the mutual fund sector for good returns.

15) Are you satisfied with demat account service?

Table No. 15

OpinionNo. of respondents.

Yes1

No0

Chart No. 15

Interpretation: There is only one Demat account holder.It is seen that there is only one respondent is accurse in survey who have Demat account. And also he is satisfied with Demat account facility.It is necessary for the bank to attract more customers towards Demat account facility to make them aware to transact their shares operations through electronic form.

16) Which type of Demat account you have?

Table No. 16Type of accountNo.of respondents

Individual account1

Corporate account0

Chart No. 16

Interpretation: As per the survey there is only one Demat account holder who has individual account of Demat. There is customer who has corporate Account of Demat.It is not good sign that is unawareness in the people about Demat account systemIn which the operations of shares of any investor customer through this account facility.17) Which type of NRI services you usually use?Table No. 17NRI ServicesNo. of respondents

NRI Deposit0

NRI loans0

Remittance services0

Chart No. 17

Interpretation: It is seen that there is no NRI customer who have NRI Deposits in the bank. There is no NRI customer who takes NRI loans from the bank. There is no NRI customer who uses remittance services. There is no NRI customer of the bank.For achieving the economic growth of India there is need of increasing foreign reserves by accepting NRI deposits and giving loans to NRI so that bank have to make more attractive policies to attracting NRI customers towards the Indian bank.

18) Which type of corporate sector related services you take?

Table No. 18

Type of servicesNo.of respondents

Udyogini0

Micro finance self-help group0

Small-medium Enterprise (SMEs)2

Traders9

Trade finance0

Chart No. 18

Interpretation: Most of the user takes corporate related service of traders. Very less people use services related to the small medium enterprises. There is no respondent found for Udyogini, Micro finance self-help group and trade finance during the survey.For achieving industrial growth, bank have to give more attention on corporate related products and services, and make people aware about products and services of corporate sector of retail banking system.

19) Which type of other corporate service you take from corporate service?

Table No. 19

Type of serviceNo.of respondents

Working capital2

Corporate loan5

Term loan4

Export financing-Pre and post shipment.0

Import finance0

Bank Guarantee0

Bill discounting0

Letter of credit0

Property loan1

Rental loan0

Chart No. 19

Interpretation: Most of the respondents take corporate loan from corporate sector related products and services. Next preferable corporate product taken by the customers is term loan, then working capital and next is property loan. Most of the customers are unaware about the Export Financing, Import finance, Bank Guarantee, Bill discounting, letter of credit, rental loan etc. Products of the bank.Retail banking system provides more beneficial services and products to the growth of corporate sector.

20) Which type of services you usually use from Retail banking system?Table No. 20

Type of servicesNo.of respondents

VISA Debit card or ATM card13

SMS banking19

Easy pay3

Mobile banking37

Internet banking3

Mutual fund3

Demat account faculty1

Chart No. 20

Interpretation: Most of the people use mobile banking service from retail banking system. Next SMS banking, VISA debit card or ATM card facility, easy pay, Internet banking. Mutual fund facility etc. services preferred by the people. Very less people use Demat account facility.Bank have to give more efforts for people make know about the retail banking services. Time savings facilities which are widely used.

21) Are you satisfied with products and services of bank?

Table No. 21

OpinionNo.of respondents

Yes49

No1

Chart No. 21

Interpretation:

Large numbers of people are satisfied with the products and services of the bank. Very less number of people does not satisfied with products and services of bank.Retail Banking is recent but most useful and time saving system in doing banking operations. So that, most of the respondents are satisfied with retail banking system.

22) Do you think that there is any need of improvement in Retail banking system of the bank?

Table No. 22NeedNo.of respondents

Yes11

No39

Chart No. 22

Interpretation: Very large numbers of respondents think that there is no need of improvement in retail banking system. Few respondents think that there is need of further improvement in retail banking system.From the survey it is observed that most of the people satisfied with products and services of retail banking system rather some of them wants further improvement in its operations.23) If yes, give ratings on following basis,

Table No. 23

FactorsImprovedHighly ImprovedNot much Improved

Security523

Speed of Process622

User friendly language451

Less documentation610

Internet banking512

Mobile banking612

Debit card/ATM card810

Retail loan431

Demat account facility001

Chart No. 23

Interpretation: Most of the respondents think that retail banking gives security banking transactions but also some of the respondent things there is more need of security in this type of banking system. Speed of process of banking operations is highly improved. User friendly language is highly improved in retail banking system. Most of respondents are accepted that retail banking system helps in minimizing documentation while doing banking operations. Internet banking facility is also improved in this retail banking system. But some of the respondent says it is not highly improved service due to unawareness of its technical use. Most of the respondent thinks that mobile banking facility is highly improved. By taking banks service application on their smartphones. Debit card or ATM card facility is highly improved; there is no need of further improvement. Most of the respondents agree that retail loan scheme is much improved. But also some of the respondents think that there is need of improvement. Demat account facility is not much improved.

24) Do you think that Retail banking system helps you to make easy and fast banking operations?

Table No. 24

OpinionNo. of respondents

Yes49

No1

Chart No. 24

Interpretation: Most of the people think that retail banking system is very easy and fast process. Very less people think that retail banking system is not easy and fast process.It is very good sign that most of the people appreciate the benefits retail banking system.

25) How important are the following benefits to you being a user of retail banking system?

Table No. 25BenefitsVery ImportantPartially ImportantLow Importance.

Easy to operate25191

Fast process20174

Low risk2797

Tranceperancy in banking system.3473

Chart No. 25

Interpretation: Almost all the customers using retail banking system due to the benefits such as Easy to operate, Fast process, Low risk, tranceperancy in banking system. Retail banking system is widespread concept and practice for operating banking transactions by providing such benefits to the customers. FINDINGS AND SUGGESTIONS:FINDINGS: Senior citizens, women, less educated people are also taking initiative to avail retail banking services for their banking transactions. These customers are getting aware of such services which is observed from the survey.(Table No.1) Most of the people prefer co-operative bank for their savings as well as opting loan and other facilities. (Table No.2) Many of the customers are aware about all the products and services of retail banking system but it seen most of them are only aware about it but they do not use those products and services.( Table No. 3) Most of the user of retail banking system are using the products and services of Retail banking system for personal and corporate purpose but there is not a single NRI respondent found in the survey.(Table No.4) Almost all the customers are using products and services of retail banking system except NRI/ Forex services. (Table No.5) There is large scope for saving accounts than other schemes of deposit.(Table No.6) While making deposit customer give more preference to the trust factor and good returns on investment.( Table No. 9) Housing loan is most demanded loan by the customers.( Table No.10) Most of the borrower repay their loan to the bank about 50%.(Table No. 11) Most of the insurancepolicy holders make insurance as an investment purpose.(Table No.12) Many of the customers are unaware about the Demat account facility.( Table No.15) In corporate sector, corporate loan taken by more customers. (Table No. 19) Most of the respondents are using retail banking products and services and also they are satisfied with retail banking system.( Table No.20,21) People also want more improvement in retail banking transaction system.(Table No.22) Retail banking system gives more benefits to the customers as easy to operate, fast or time saving banking process, low risk, and tranceperancy in banking operations etc.( Table No. 24, 25)

SUGGESTIONS:- Retail banking system gives more benefits to the customers so that people must have to pay attention on awareness of retail banking system. Most of the people are not aware about all the products and services of retail banking system for that purpose bank have to give more efforts to make people aware about retail banking system by the way of promotions or advertisement media. Bank has to teach people about the benefits of retail banking system to their customers. Bank has to give extra efforts to attract NRI customers towards the bank which is very helpful for the prosperity of bank as well as to the countrys economy. Bank have to make people aware about each and every products and services of retail banking system to making banking operation easily and also fast. Bank can create saving account scheme especially for farmers with good features. Various schemes relayed to investment can be introduced to attract the customers.

CONCLUSION. Basic banking services such as deposits for safe keeping, saving, or borrowing for personal or business use is as old as human civilization, but after that, recent system in banking operations is arrived is called as Retail Banking System. Retail banking system is very beneficial banking system not only for banks but also for the customers. Most of the people prefer co-operative bank to make their banking transactions. In retail banking system almost all the banking operations are happened through the internet network and recent developed and computerized technology. Retail banking system gives satisfaction to its user but customers wants more security for their online or internet banking operations. So, Retail banking system is beneficial banking system of these highly developing and rapid changeable banking trends to survive in this competitive era of banking sector.

A.G.I.M.S. SangliPage 2