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1.1 ABOUT THE STUDY

INTRODUTION

Indian banking systems developed enormously after independence particularly after

nationalization of Bank there has been a multidimensional development. Only after the nationalization

of Banks in the year 1969 and in the year 1980, there was a real development of commercial Banks,

which started functioning with social responsibility. Now, commercial Banks are rendering

multifarious and valuable services to their customer.

A bank is an institution, which deals with money and credit .Thus bank is an intermediary,

which handles other peoples money both for their advantage and to its own profit. But bank is not

merely a trader in money but also an important manufacturer of money. In other words, a bank is a

factory of credit. The word `Bank is said to have derived from the French word Banco ,or Banous

or Banque Which means a bench. In due course, it was Italianized into Banco Franchised into

Bank and finally anglicized into Bank. This view is most prevalent even today and valuable

services to their customer.

Banks are important financial institutions. They are arteries of the economic system of a

country. Money supply in a country depends on the banking system on a whole. No country in the

world, without a sound banking organization can provide needed financial assistance to commerce

and industry. In the modern world, banking institutions does much of the work of financing commerce

and industry. Banks borrow and lend money. They offer opportunities of investment and safe custody

of deposits.

They encourage the habit of saving among the people. Their role is more important mobilizing the

small savings of the people and investing the same gainfully for all round national development. By

creating credit facilities, they help the growth of commerce, trade and industry in the country. Banks

borrow money from the public in the form of deposit. They accept such deposit for the purpose ofmaking investment and advancing loan.

1.2 INSUSTRY PROFILE

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PROFILE OF NAMAKKAL DISTRICT

Namakkal district was bifurcated from the larger Salem district in the year 1997. Namakkal district

comprises of four municipalities, fifteen Panchayat Unions and three hundred and thirty one

panchayat. Namakkal district is gifted with different climatic conditions and soil types. The economic

development of this newly constituted district is mainly depends upon the agriculture and agro-based

activities. The northern part of the district has many kinds of non-farm activities.

Tiruchengode, Namakkal, Rasipuram and Paramathi Velur are the four Taluks of this district. The

districts of Perambalur and Trichy are the eastern boundaries of this district; Erode and Salem district

are located in the western and northern sides of Namakkal district. Karur district is situated in the

southern side of the Namakkal district.

The 2001 Census indicates the total population of Namakkal district as 1495661.Out of these, the

male population constitutes 760409 and female population of 7335252. Majority of the people of

Namakkal district (75%) are residing in the Rural areas and a smaller percentage (25%) of them are

living in the Urban and semi-urban areas.

HISTORICAL DEVELOPMENT OF NAMAKKAL TOWN

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Namakkal has historic interest with a Hill, fort arid Mosque built by TIPPU SULTAN at the

hilltop, which is 75 Mts. Height. Namakkal town possesses the famous ANJANEYS temple, VISHNU

CAVE TEMPLE dedicated to LORD NARASSIMHA and his consort NAMAGIRIAMMAN

TEMPLE often visited by pilgrims. Opposite to Narasimha temple at a distance of 100Mts. There is a

colossal statue of Lord Anjaneya of 6.7 Mts. Height and was carved from a single stone in kollihills.

The name Namakkal is derived from the huge rock on which the Fort stands.

Namakkal was a town panchayat since 1943. Namakkal town panchayat was converted into a

Grade III Municipality with effect from the year1970. In addition to the area of Namakkal revenue

village, some portions from revenue village of periyapatti was included. The municipality was

upgraded as a Grade II Municipality in 1975 and again upgraded to Grade I Municipality in 1983.

1.3 COMPANY PROFILE

BANKING STRUCTURE IN TAMIL NADU AND IN INDIA

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Banking in Tamilnadu on western lines started from the beginning of 19th century. The earlier

commercial banks were known as agency houses and were started by the employees of the East India

Company. They combined banking and trading functions and failed soon after their establishment. The

bank of Madras (1843) was started with the financial participation of the Government. This was called

as the presidency bank and was given the right of note issue at their own region.

The States economy has been fastly developing under the impact of planning. The emergence of

planning has given banking a sense of direction and purpose. Important changes that are being placed

in the banking system during the plan era are under the following heads:

1. Expansion of Bank deposits and credit

2. Development-oriented Banking

3. Farm finance

4. Shift of banking from big to small customers

5. Rapid Branch Banking

6. Strengthening the banking system

7. Nationalization of Banks

NATIONALISATIONOF BANKS

There was a strong demand for nationalization of commercial banks. The demand was based on

the ground that commercial banks (a) have been owned and controlled by a few persons; (b) had led to

the concentration of wealthy hands of a few, (c) had failed to mobilize the saving of the public

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effectively; (d) had discriminated against small business units and had ignored agriculture completely;

(e) had been used by directors to promote only those companies in which they were interested; (f) had

used their funds to promote unsocial activities such as hording and black-marketing and (g) had failed

to be guided by the positive social objectives of the Five years plan.

The government took a positive view and asserted that nationalization was not be looked up on as

a radical departure from the social control phase. The explanatory statement on bank nationalization in

the parliament emphasized the role of nationalized banks, a catalytic agent for growth. One would

easily note a great flow in the statement of objects and reasons accompanying the Banking companies

Acquisition and Transfer of Undertakings Act.

The banking system touches the lives of millions and has to be inspired by larger social purpose

and has to sub serve national priorities and objectives; such as rapid growth in agriculture, small

industries and exports, raising of employment levels, encouragement of new entrepreneurs and the

development of backward areas. For this purpose, it is necessary for government to take direct

responsibility for the extension and diversification of banking services and for the working of a

substantial part the banking system.

The major landmark in the history of the banking was the nationalization of 14 major Indian Banks

on July 19th 1960. This period also witnessed the Reserve Banks efforts towards the

institutionalization of savings to adapt the credit system to the needs of a developing economy and the

consolidation and strengthening of the banking structure and organization with a view to improving

quality of its service and winding the geographical and functional spread of banking activity. The lead

Bank Scheme introduced by the Reserve Bank in December 1969 marks a major step towards the

implementation of the two-fold objective of mobilization of deposits on a massive scale throughout the

country and of stepping up leading to week sectors of the economy .

The most striking feature of the banking scene was the increase in the number of functioning of banks

in the state.

Banking policy as evolved and modified from time to time based on the decisions taken at the

national level applied to the entire country. Although the levels of response in terms of growth

dimensions may very from region to region, the pattern and directions of progress have a common

round in the Reserve Bank in India an Government of India. In brief that explains in a state this regard

is only a view of profile of the National Banking scene.

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2.1 OBJECTIVE OF THE STUDY

To study the operations and performance of Indian bank at Namakkal.

To study the problems of customers of Indian Bank.

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To study the nature of customer services provided by bank at Namakkal.

To identity the service needed by customers at Namaakl.

To evaluate the customer service rendered by the bank at Namakkal and to offer some valuable

suggestions to improve the customer satisfaction.

SCOPEOF THE STUDY

In Namakkal, Indian Bank is rendering different services to all kind of people of Namakkal town

coming into contact with them. They are distinctly services to their customers, borrowers and also the

general public. The research area is limited to Namakkal Taluk. As the researcher belongs to

Namakkal and he has exposure to the transactions of the Indian Bank, he would like to study theservice rendered by the bank located at Namakkal is being analyzed in this study.

FIELD WORK AND DATA COLLECTION

The researcher has carried out the fieldwork from July 2006 to September2007. First of all, the

researcher approached the manager for getting the list of customers of various types living in and

around Namkkal areas. From among the list 100 customers from Indian Bank were selected at random.

The researcher contacted a minimum of 5-6 customers daily. He interviewed them and their answers

were recorded in the schedule prepared for the customers. Some of the customers residing more than

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10-15 Kilometers away were also approached for data collection by the researcher. To complete the

data collection work the researcher spent more than one and a half month.

LIMITATIONS OF THE STUDY

1. The research Work is an analysis of only Indian bank in Namakkal town.

2. Primary data is collected from only 100 customers of Indian bank for this study.

3. Indian bank hesitated to give the data because of maintenance of secrecy. But

they provided relevant information related to the research work.

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3. RESEARCH METHODOLOGY

METHODOLOGY

The study is an empirical research based on census method. The purpose of study is to examine the

working and performance of the Indian Bank to satisfy their customers. Primary data was collected

from the field directly from the records of the Indian Bank. The researcher has conducted personal

interviews with the manager of the Indian bank. He interviewed with the bank customers about their

feelings, problems, opinion and service satisfaction about their banks. The discussion with 100

customers of the Indian bank was recorded in the schedule prepared for them.

CUSTOMER SERVICES RENDERED BY INDIAN BANK AN ANALYSIS

Banks in India are servicing the largest clientele section in the world. The number of customers

availing services from the banks in India is around 9.2 crores. Meeting the services requirements of

this huge customer segment is not an easy task.

That too customers of 21st century are aware about the wide range of services of the bank and the

innovative services rendering the industry dayby day thus they expect much from the banks. Securing

their satisfaction by rendering services up to their full expectation is not an easy job. In addition to that

in the olden days bankers who spend considerable time for customers were rated high.

The customers of today demand quick and timely service and crispy answers for their enquiry.

Delays in counter transaction are most irritating and the customers take it as a serious loss,because

time is money.

Thus the researcher has taken into account the time taken by the bankers to tender each service to

the customer for analysis. The researcher has analyzed the time Norms prescribed by Indian Bank for

various banking transactions with the time consumed by the bank on each transaction.

The researcher has selected 100 samples of customers of Indian Bank of Namakkal branch for the

purpose of the study.

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3.2 DATA INTERPRETATION

Table 1

TABLE SHOWING TYPES OF DEPOSIT

S.No Restriction No. of

Respondents

Percentage

%

1 Savings Bank A/c 69 69

2 Current A/c 13 13

3 Recurring deposit A/c 06 06

4 Time deposit A/c 12 12

Total 100 100

Source: Primary data

Inference

From the 100 respondent, it is found that 69% of them hold savings bank

a/c,13% of them hold the current a/c,06%of them hold Recurring deposit a/c and

only 12% of them hold Time deposit.

Table No-4.02

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TABLE SHOWING HOW LONG CUSTOMERS ARE OPERATING

THE ACCOUNTS IN THE INDIAN BANK

S.No Period No. of

Respondents

Percentage

%A Less than 1 year 07 07

B 1-5 yrs 29 29

C 5-10 yrs 43 43

D Above 10yrs 21 21

Total 100 100


Inference

Table 4.2 shows that 07% of the customers are maintaining their accounts for

less than 1 year. It is they prefer to deposit for very short period than medium

term long term. 29% of the customers maintaining account between 6 and 10

years only 21% of the customers are keeping their accounts for above 10 years.

HOW FREQUENTLY CUSTOMERS ARE GOING TO THE BANK

FOR OPERATING THEIR ACCOUNT USUALLY IN THIS BANK

S.No RESTRICTION NO.OF PERCENTAGE

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RESPONDENTS %

a Once in a week 11 11

b Once in a fortnight 23 23

C Once in a month 52 52

d More than a month 14 14

Total 100 100


Inference

Table 4.03; express that 11% of the customers are operating their account once in a week. 23%

of the customers are operating their account once in a fortnight. 52% of the customers are operating

their account in a month and only 14% of the customers are operating their account more than a

month.

TABLE SHOWING INSTRUMENT USED BY TH CUSTOMERS FORWITHDRAWING CASH

S.No RESTRICTION No. of Respondents Percentage

%

a With draw slip 34 34

b A T M card 26 26

c Cheque leaf 28 28

d Others 12 12

Total 100 100


From the above table 4.5, the instrument used by the customers of Indian bank for withdrawing

cash is to be examined. 34% of customers withdraw cash through withdrawal slip 28% of the

customers withdraw cash through cheque and 12% of the customers withdraw cash not through

withdrawal slip or cheque book or ATM card. Only 26% of the customers withdraw cash through

ATM cards in Indian Bank.

TABLE SHOWING NUMBER OF RESPONDENTS AVAILED LOAN

FACILITIES

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S.No Restrictions No. of Respondents percentage%

a Yes 21 21

b No 79 79

Total 100 100


From the table 4.09, number of respondents availed loan facilities is to be examined. 21(21%)

respondents of the bank customer stated that they have got the loan and 79(79%) respondents of Indian

bank customers stated that they did not avail the loan.

4. FINDING, SUGGESTION AND CONCLUSION

Under this study after analyzing the respondents questionnaire and comparing it with

transaction procedures of Indian bank at Namakkal branch , the researcher.

States the following finding

1. Indian bank was established on 15th August 1907 as pat of the swadeshi

movement.

2. Indian bank were started by the chettiar community people.

3. The head office of Indian bank is located in Chennai. It is a nationalized bank i.e, public sector

bank.

4. Indian bank is serving the nation with a team of over 22000 dedicated staff.

5. The global deposits of the Indian bank rose to Rs.34808 crores as on 31.03.2005.

6. Indian banks net advance increased to Rs.178380 crores as on 31.03.2005

7. Indian bank has 1385 branches spread all over India.

8. Indian bank has started overseas branch in Singapore and Colombo including a foreign

currency Banking unit at Coloumbo Indian Bank also has 229 overseas correspondents bank in

69 countries.

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9. Indian bank launched 88 forex authorized branches inclusive of 3 specialized overseas

branches at Chennai, Bangalore and Mumbai exclusively for handking forex transaction arising

out of Export, import, remittances and non Resident Indian Business.

10. Out of 100% customers of Indian bank 07% of the customer are operating their deposit account

for less than one year.29% of the customers operat their deposit account between 6 and 10

years. 21% of the customers operating their accounts more than 10 years.

11. Out of 100 customers of Indian bank, 11% of the customers are going to the bank for operating

their account weekly once.23% of the customers are going to the bank once in a fortnight.

About 52% customers are visiting the bank once in a month and only 14% of the customers are

visiting the bank more than a month for withdrawing money or any other banking business.

12. Out of 100 Indian bank, 15% of the customers main reason for operating their account in thisbank is easy accessibility,26% of the customers reason is specialized service, 13% of the

customers reason is provision of prompt services,03% of the customers reason is safety locker

facility and 38% of the customers reason is any other

13. out of 100 customers of Indian bank.34% of the customers withdraw cash through withdrawal

slip,26% of the customers with cash through ATM card,28% of the customers with drawing

cash through cheque and 12% of the customers withdraw cash by other modes.

14. out of 100 customers of Indian bank ,12% of the customers stated that time taken to purchase

a bank draft is less than 30 minutes,49a% of the customers viewed time between 30 and 60

minutes, 21% of the customers viewed time over 60 minutes and 18% of the customers have

no comments.

15. Out of 100 customers of Indian bank. 07% of the customers ststed that time taken to encash a

bank draft or cheque is less than 15% minutes, 53% of the customers agreed that time taken to

encash a bank draft/ chequestakes between 10and 30 minutes , 26% of the customers agreedhat time taken to encase a bank draft / cheques takes over 30 minutes and 145 of the customers

are no commands

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SUGGESTIONS

Indian bank operating its banking business hours for customers from 10.00A.M to 3.30P.M

during all working days except Saturday which is from 10.00A.M to 1.30P.M.

Indian bank has less number of ATM facilities has compared to other banks . It should be

increased in future.

Time taken for processing and disbursement of loan should be minimized than at the present.

Changes in customers behaviour are evident from the significant growth in the use of plastic

money in Indian .As like Indian bank should aggressively promote smart cards and credit

cards to discourage the need for carring around paper money.

In an ever-changing environment where loyalties are fickle and competition is fierce, the study

unit should prove their worthiness by wooing customers with a plethora of value added

services. It should shift their focus to services from products.

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CHART SHOWING NUMBERS OF RESPONDENTS A VALIED LOAN

FACILITIES

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TABLE SHOWING PURPOSE WISE LOAN ISSUED

S.NO RESTRICTION NO.OF

RESPONDENT

PERCENTAGE

%

A BUSINESS 09 42.85B HOUSE HOLD

EXPENDITURE

05 23.80

C PURCHASE OF

VEHICLES

03 14.28

D MEDICAL

EXPENDITURE

02 09.52

E OTHERS 02 09.52

TOTAL 21 100

SOURCE: Primary data

From the table 4.10, purpose wise loan issued is examined

09(42.85) customers of the bank stated that they have got the loan forBusiness, 05(23.80%) customers

stated that they got the loan for house hold expenditure and 03(14.28%) customers stated that they

have got the loan for medical expenditure and 02(009.52%) customer stated that they have got the loan

for other purpose.

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GRAPH SHOWING PURPOSE WISE LOAN ISSUED

TABLE SHOWING SECURITIES DEMANDED FOR A LOAN

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OPERATING BANK ACCOU8NT OTHER THAN INDIAN BANK


RESPONDENTS

PERCENTAGE

%

A YES 27 27

B NO 63 63

TOTAL 100 100


It is inferred from the table 4.13, that 27(27%) customers of IndianBank who also operate

accounts in others in other than this bank. 63(63%)Respondent stated that they are having account

only in this bank.

CHART SHOWING NUMBER OF RESPONDENTS

OPERATING BANK ACCOUNT OTHER THAN INDIAN BANK

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No. of respondents

TABLE SHOWING HOW TO THE CUSTOMERS RATE THE

SERVICE RENDERED BY INDIAN BANK

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RESPONDENTS

PERCENTAGE

%

A Better than the other bank

09 33.33

B Not better than the

Other bank

14 51.85

C Similar 04 14.81

Total 27 100


From the table 4.14, shows how the customer rate the servicesRendered by the indian

banks to be gained. The customers of Indian bank feel That the services rendered by their bank is

better than other bank are 09(33.33%)Not better than other bank are 14(51.85%) and 04(14.81%)

customers opinion rendered by the this bank is similar.

CHART SHOWING HOW TO THE CUSTOMERS RATE THE

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SERVICE RENDERED BY INDIAN BANK

TABLE SHOWING CUSTOMERS OPINION ON THE

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BANKING HOURS


RESPONDENTS

PERCENTAGE

A HIGHLYCONVENIENT

13 13

B CONVENIENT 41 41

C REASONABLE 36 36

D INCONVENIENT 07 07

E HIGLYCONVENIENT

03 03

TOTAL 100 100

Source: primary data

From the table 4.15, the banking hours of Indian bank is to be examined.

13(13%) customers of Indian bank stated that the banking hours is highly convenient, 41(41%)

customers stated that the banking hours are convenient, 36(36%) customers opinion on the banking

hours are reasonable, 07(07%) customer opinion on the banking hours are inconvenient and 03(03%)

customer opinion on the banking hours are highly inconvenient.

TABLE SHOWING FEELING OF RESPONDNTS ABOUT THE OVER ALL

SERVICE PROVIDED BY THIS BANK

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RESPONDENT

PERCENTAGE

%

A HIGHLY

STATSIFIED

11 11

B STATSIFIED 27 27

C AVERAGE 30 30

D NOT STATSIFIED 25 25

E POOR 07 07TOTAL 100 100


Five heads classify the feeling of the respondents on services provided by Indian bank

likely to be highly satisfied, satisfied, average, not satisfied and poor. The 11% of the customers are

feeling that the overall services provided by the bank is highly satisfactory. 27% of customers are

feeling satisfied. 30% of customers are feeling average, 25% of customers are feeling not satisfied,

07% of customer are feeling poor. The reasons for this above classification are good locker facility,

gentle behavior of staffs, providing quick services. over draft facility, king rules and regulations

simple and understandable by proper guidance.

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TABLE SHOWING SEX PATTERN OF RESPONDENTS

S.NO RESTRICTION NO.OFRESPONDENTS

PERCENTAGE%

A MALE 76 76

B FEMALE 24 24

TOTAL 100 100


The above table indicates that out of 100 respondents, 76(76%) of the respondents are

male and remaining 24(24%) of the respondents are female.

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CHART SHOWING SEX PATTERN OF RESPONDENTS

NO. OF RESPONDENTS

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TABLE SHOWING AGE GROUP OF CUSTOMERS OF THIS BANK

S.NO RESTRICTION NO.OF RESPODENTS PERCENTAGE

%

A BELOW 20 YEARS 04 04

B 20-30 YEARS 34 34

C ABOVE 62 62

TOTAL 100 100


Table 4.18 shows the age group of respondents for the study. Out of 100

respondents 04(04%) respondents age group id below 20 years, 34(34%) of the students come between

20 and 30 years of age and remaining. 62(62%) falls above 30 years of age.

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TABLE SHOWING EDUCATIONAL QUALIGICATION OF THE

RESPONDENTS


RESPONDENTS

PERCENTAGE

%

A ILLERATE 05 05

B SCHOOL LEVEL 36 36

C COLLEGE LEVEL 59 59

TOTAL 100 100


This table shows that out of 100 respondents, 05(05%) are illerate, 36(36%) are

studied up to school level and remaining 59(59%) are college level.

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