CHAPTER - I

INTRODUCTION

1
 INTRODUCTION
Private banking is banking, investment and other financial services provided by banks and
financial services firms primarily to high-net-worth individuals (HNWIs) with high levels of
income or sizable assets. Private banking forms a more exclusive (for the especially affluent)
subset of wealth management. The term "private" refers to customer service rendered on a more
personal basis than in mass-market retail banking, usually via dedicated bank advisers. At least
until recently, it largely consisted of banking services (deposit taking and
payments), discretionary asset management, brokerage, limited tax advisory services and some
basic concierge-type services, offered by a single designated relationship manager.
Private banking is the way banking originated. The first banks in Venice were focused on
managing personal finance for wealthy families. Private banks came to be known as "private" to
stand out from the retail banking and savings banks aimed at the new middle class. Traditionally,
private banks were linked to families for several generations. They often advised and performed
all financial and banking services for these families. Historically, private banking has developed
in Europe (see the List of private banks). Some banks in Europe are known for managing the
assets of some royal families. The assets of the Princely Family of Liechtenstein are managed
by LGT Group (founded in 1920 and originally known as The Liechtenstein Global Trust). The
assets of the Dutch royal family are managed by MeesPierson (founded in 1720).[1] The assets of
the British Royal Family are managed by Coutts (founded in 1692).
Historically, private banking has been viewed as a very exclusive niche that only caters to
HNWIs with liquidity over $2 million, though it is now possible to open private banking
accounts with as little as $250,000 for private investors. An institution's private banking division
provides services such as wealth management, savings, inheritance, and tax planning for their
clients. For private banking services, clients pay either based on the number of transactions, the
annual portfolio performance or a "flat-fee", usually calculated as a yearly percentage of the total
investment amount
"Private" also alludes to bank secrecy and minimizing taxes through careful allocation of assets,
or by hiding assets from the taxing authorities. Swiss and certain offshore banks have been
criticized for such cooperation with individuals practicing tax evasion. Although tax fraud is a
criminal offense in Switzerland, tax evasion is only a civil offence, not requiring banks to notify
taxing authorities.
In Switzerland, there are many banks providing private banking services.[4] Switzerland has
remained neutral since the Congress of Vienna in 1815, including through two World Wars.
After World War I, the former nobles of Austro-Hungarian Empire moved their assets to
Switzerland for fear of confiscation by new governments. During World War II, many wealthy
people, including Jewish families and institutions, moved their assets into Switzerland to protect
them from Nazi Germany. However, this transfer of wealth into Switzerland had mixed and
controversial results, as beneficiaries had difficulties retrieving their assets after the war.[6] After
World War II, in eastern Europe, assets were again moved into Switzerland for fear of
confiscation by communist governments.
Today, Switzerland remains the largest offshore center, with about 27 percent ($2.0 trillion) of
global offshore wealth in 2009, according to Boston Consulting Group. Offshore wealth is
defined as assets booked in a country where the investor has no legal residence or tax domicile.

2
In England, private banks were established in the 17th century, in parallel with the development
of agriculture, managing the assets of the royal family, nobility and the landed gentry.
The United States has one of the largest private banking systems in the world, in part due to the
3.1 million HNWIs accounting for 28.6% of the global HNWIs population in 2010, according to
the co-research of Capgemini and Merrill Lynch. Some American banks that specialize in private
banking date back to the 19th century, such as U.S. Trust (founded in 1853) and Northern
Trust (founded in 1889).
Recent developments in private banking[
The internationalization of the economy, technological developments such as the Internet and
mobile phones ensure that banks have to innovate their value proposition and look for
new markets. For example, the growth of HNWIs is low in traditional private banking markets
like Europe, compared to Asia where the number of millionaires has grown to 3.6 million
The world is changing by the use of some technologies that considered being the key driver for
these changes around us. An analysis of technology and its uses show that it has permeated in
almost every aspect of our life. Many activities are handled electronically due to the acceptance
of information technology at home as well as at workplace. The concept and scope of E-banking
is still evolving. It facilities an effective payment and accounting system thereby enhancing the
speed of delivery of banking services considerably.
Most people are very familiar with how a bank operates. The concept is very simple, if the
customer takes his money to the bank and they will keep it safe for him, and he can collect it
later. There are other uses of a bank, such as loans and interest. But with nearly everything going
digital, including money transfers, paychecks, bill payments and debit cards, cash is practically
becoming obsolete. With online banking, the customer won‘t ever have to worry about full
access to his account. He have quick and easy 24-hour access from anywhere in the world. The
customer won‘t ever have to rush over to the bank after work and fight lines. Other bank
accounts don‘t commonly offer the best deal available when it comes to saving the customer‘s
money. Also, because online banking services don‘t have to rent a building, they offer higher
interest rates with their savings accounts. By using other services on a bank, mostly it is time
consuming and to make money, they often charge expensive fees to consumers
The advancement of electronic banking or commonly known as e-banking, began with the use of
automatic teller machines (ATMs) and has included telephone banking, direct bill payment,
electronic fund transfer, online banking and other electronic transactions. For many people, they
believe that the e-banking will go to the direction of mobile banking. Also, some people
believing that online banking will be the most popular method in the future.
Many people are now able to avoid the rush to get to the bank before it closes, as they can bank
from a home computer or via automatic teller machine (ATM). Most banks routinely offer online
banking services when customers sign up for accounts. They are a variety of options based on
the type of banking account they have. For example, a checking account can be linked to an
ATM card, and most accounts can be viewed and managed using online banking. An ATM card
works two different ways – as credit or debit. When it used as a credit card, many banks do not
charge fees and the money does not come out of the account immediately. A debit card requires
that a pin number be entered are required. ATM withdrawals may be conducted at any ATM
machine that accepts any debits card.

3
E-banking or electronic banking refers to all types of banking transactions performed
electronically, without visiting a bank. Terms such as PC banking, Internet banking or online
banking are sometimes used instead. E-banking allows customers to conduct bank transactions
online, instead of finding a bank and interacting with a teller. For customers, this means
performing actions such as paying bills, checking balances on their accounts, transferring funds
and purchasing financial instruments remotely. Banco De Oro Universal bank, Inc. was the
largest bank in the Philippines. It belongs to the SM group of companies, one of the Companies,
one of the country‘s largest conglomerates owned by tycoon Henry Sy. Following the Banco de
Oro-Equitable PCI Bank merger, the bank has since become Banco de Oro Unibank, Inc. It
provides products and services to the retail and corporate markets including lending (corporate,
middle market, SME, and consumer), deposit-taking, foreign exchange, brokering, trust and
investments, credit cards, corporate cash management and remittances, Through its subsidiaries,
the bank offers Leasing and financing, Investment Banking, Private Banking, Bank assurance,
Insurance brokerage and Stock Brokerage services.
In this study, the researchers aim to find out how important E-banking is the depositors of Banco
De Oro Private Bank in Don Antonio, Quezon City. And how well they are satisfied in terms of
the benefits that E-banking can do in their banking transaction.

4
 CHAPTER - II
REVIEW OF LITERATURE

5
 REVIEW OF LITERATURE

The literature review on service quality and customer satisfaction with banks situated in foreign
countries reflects the findings of various professionals and researchers. With a view to
authenticate the study, various literatures have been reviewed to identify the research gaps.

Valued customers can be retained by improving the service quality of mobile banking .
Customers of foreign bank experienced most excellent service quality contrary to the customers
of nationalized bank in Pakistan . In general, the bank has been appraised positively by the
customers, however continuous development is suggested to maintain a cut-throat edge . The
maximum satisfaction of customers with respect to a) receptiveness dimension - enthusiastic to
assist the customers, friendly approach of employees b) reliability dimension of customers care.
However, the customer satisfactions vary according to the nature of service. To enhance the
customer satisfaction, the bank has to maintain a strong relationship through better service . The
services provided by the commercial bank to customers‘ below their expectation . Service quality
and e-banking adoption had a constructive and noteworthy association with the satisfaction of
customer. The key variables with regard to 24 hours service, perfect and up to date information,
quick process influenced the customers‘ satisfaction . ―Service quality‖ an important construct of
customer satisfaction To retain the customers the bank has to improve all the dimensions of the
service quality . Customers‘ satisfaction depends upon the quality of services provided.
Customers‘ satisfaction leads to trustworthiness . Positive and significant association between the
various constructs of service quality and satisfaction has been studied. Among all the constructs,
assurance construct played a vital role in influencing the customers‘ satisfaction. The customers
expected higher from banks than what they actually received The electronic services provided by
the bank have a positive and considerable impact on customers‘ satisfaction and also it had
significant impact on profitability of the bank. Serviceability had a positive and significant effect
on customer satisfaction to accept internet banking service . The factors influenced the service
quality of the customer: a) timely service skill b) expertise provided by the staff c) look and feel
of the environment and employee

Geiger's (1975) carried out study to establish the needs of customers. Social status of the bank's
customers and the perception that the customers had of banks were studied along with customers
judgment of the range of services that the banks had to offer, the effectiveness of various
advertising and other sales promoting measures, and the customers' will to save and other habit.
Findings indicated that satisfied customers are more optimistic in nature than those who are
critical of what their banks have to offer them. Lewis and Birmingham (1991) studied the needs,
attitudes and behavior of youth market for financial services and found that the youth market is
not homogenous in terms of needs and behavior. Boyd et al (1994) conducted a study on
consumer choice criteria in financial institution selection in USA and found that reputation and
interest rates of loans as well savings rates are more important than friendliness of employees,
modern facilities and drive - in - service. On the other hand Rajagopla Nair (1994) in his study
on rural bank marketing found that security and liquidity are the major pre-requisites for deposits
by rural customers and that the interest rate on fixed and demand deposits is not at all a criterion
for rural bank depositors to deposit their savings with commercial banks. Huu Phuong Ta and

6
Kar Yin Har (2000) studied bank selection preferences of undergraduates in Singapore. In the
study, nine criteria for selecting bank and five banks were identified, and the decision problem
was structured into a three-level hierarchy using the Analytic Hierarchy Process. The findings
indicated that undergraduates emphasize more on the pricing and product dimensions of bank
service. Hallowell Roger (1996) studied customer satisfaction in banks and found banks should
target and serve only those customers whose needs it can meet better than its competitors in a
profitable manner. By adopting this strategy customers will be retained for longer periods,
consume multiple products; recommend the bank to their friends and relations who may be the
source of superior returns to the bank‘s shareholders. As per Meidan (1976) about 90% of the
respondents banked at the branch nearest to their home place and place of work. Convenience, in
terms of location, was found to be the single most important factor for selecting a bank.

Bhattacharya (1997) he has studied the impact of the limited liberalization initiated before the
deregulations of the 90‘s on the performance of the different categories of banks. His study
covers 70 banks in the period 1986-91. He has constructed one grand frontier for the entire
period and measured technical efficiency among the three categories with foreign and private
banks having much lower efficiencies. The main results accord with the general perception that
in the nationalized era, public sector banks were successful in achieving their principle objectives
of deposit and loan expansion.

Gaganjot Singh (1998) in his study ―New innovations in banking industry – a study of new
private sector banks‖ views that the new private sector banks in India are using better technology
and are offering better services to the customers. The new private banks have emerged as a
model to the banking industry in terms of service levels, ambience, technology etc. As the public
sector banks have already established a huge customer base, they become complacent and are
slow to become customer friendly. They are also less innovative in the use of technology-assisted
customer service. Because of their huge customer base they feel that they can withstand
competitions from new generation banks.

Anthony T. Allred and H. Lon Addams, (2000) in their article, indicated that neither banks nor
credit unions do a good job of surveying customer needs or retaining customers. Other results
indicate that fifty per cent of total respondents surveyed reported that they had stopped using a
financial service provider because of poor service performance. The vast majority of that group
reported that their decision was made because a bank failed to provide adequate service.

Mini Joseph‘s (2001) view is that new generation banks have created a spirit of competition in
the banking industry by fully utilizing the facilities and amenities available from technology and
computerization, and by accepting customer satisfaction as the core aspect. For preventing the
erosion in the market share of old private sector banks and public sector banks, they are also
providing quality service now in a competitive spirit.

7
P. D. Jeromi (2002) who studied ―The trends and issues of bank credit in Kerala‖ finds that the
absolute rate of growth of credit is reasonably good. But in relation to deposits, per capita credit,
credit per account, disbursement by all India Financial Institutions the level of credit is lower. He
also observes that more attention should be given to mobilization of deposits than to expansion
of credit.

Sujit Chakravarti (2003) says credit cards provide benefits to consumers and merchants not
provided by other payment instruments as evidenced by their explosive growth in the number
and value of transactions over the last 20 years. Recently, credit card networks have come under
scrutiny from regulators and antitrust authorities around the world. The costs and benefits of
credit cards to network participants are discussed.

Focusing on interrelated bilateral transactions, several theoretical models have been constructed
to study the implications of several business practices of credit card networks. The results and
implications of these economic models along with future research topics are discussed.

Singh S. (2004) empirically studies the appraisal of customer services of PSBs in terms of level
of customer service and satisfaction determined by brand, location and design, variety of
services, rates and changes, systems and procedures etc. The study concludes that staff behavior
is very polite and services are provided even in the late hours. Study reveals that 62 percent
respondents answer that immediate credit is not given for outstation cheques, 93 percent feel that
they do not hold periodical meetings and services are not provided according to the given
schedules. It concludes that services of private sector banks are better than the services of public
sector banks.

Velouston and Cleopatra (2004) in their study have analysed the relative role of certain drivers of
bank loyalty. Their study shows the links between image, perceived quality satisfaction,
commitment and loyalty in Greek retail banking. The result of the study is that the image has a
positive impact on perceived quality and satisfaction. The key factor that leads to loyalty is the
personalisation in providing services to customers which help to increase customer satisfaction.

Ramola (2005) in his article states that Indian banking industry can reach international level only
through the growth of retail banking. For the growth of retail banking, innovative products which
satisfy the needs of the individuals are required. Such products can be developed through market
research. Besides, new regulations are required to reduce NPA in retail sector.

8
 CHAPTER - III
RESEARCH METHODOLOGY

9
 NEED OF THE STUDY
 Private banking is an enhanced offering for the high-net-worth individual (HNWI) clients
of a financial institution.
 Private banking consists of personalized financial and investment services and products
from a dedicated personal banker.
 Private banking clients typically receive discounts or preferential pricing on financial
products.
 However, the range of products and investment expertise offered by a private bank may
be limited compared to other providers.

OBJECTIVES OF THE STUDY

Preferential Pricing
Alternative Investments
One-Stop-Shop
Assets and Fees for Banks
RESEARCH METHODOLOGY

The method of sampling used was random sampling. The main aim of the study was to cover
employee‘s at all hierarchical levels. Therefore, a sample of respondents was chosen at each
level of hierarchy in all the departments and services. The sample size was taken as 50. The
respondents were from 4 categories as Scientific Staff, Technical Staff, Administrators, and
Supporting Staff.

Respondents
Employee Details Supporting Technical Scientific
Administrators
Staff Staff Staff
Total No. of.
700 100 105 100
Employees
Sample No. of.
20 10 10 10
Employees
Sample selection is random from all the 4 categories.
DATA COLLECTION:
Data is recorded measure of phenomena. While deciding about the method of data collection, the
researcher should keep in the mind about two types of data. They are, Primary Data and
Secondary Data.
PRIMARY DATA:
The primary data has been collected through Questionnaire. The Questionnaire has been properly
prepared in order to cover all the information required for the study. This Primary data was also

10
collected through personal interview and interaction with the officials and staff in the
organization.
SECONDARY DATA:
Secondary data has been collected through the annual reports of the organization & from the
manuals. Some data was collected from the website of the organization (www.hul.com) and
(www.who.com).
COMPANY ADDRESS
Address:- S.O, 9-4-76/2, SALEEM MASOOD COMPLEX, behind BUS STOP, Toli Chowki,
Hyderabad, Telangana 500008

SCOPE OF THE STUDY

 One-stop shopping for financial affairs

 Concierge services and dedicated employees
 Favorable rates, discounted charges
 Perks and privileges

LIMITATIONS OF THE STUDY

In terms of investments, a client might be limited to the bank's proprietary products. Also, while
the various legal, tax, and investment services offered by the bank are doubtlessly competent,
they may not be as creative or as expert as those offered by other professionals that specialize in
various types of investments. For example, small regional banks might provide stellar service
that beats out the larger institutions.

 Less institutional expertise

 Options limited to proprietary products
 High staff turnover
 Possible conflict-of-interest for employees

11
 CHAPTER - IV
THEORETICAL FRAME WORK

12
 THEORETICAL FRAME WORK

A bank is a business. But unlike some businesses, banks don‘t manufacture products or extract natural
resources from the earth. Banks sell financial services such as car loans, home mortgage loans, business
loans, checking accounts, credit card services, certificates of deposit, and individual retirement accounts.
Some people go to banks in search of a safe place to keep their money. Others are seeking to borrow
money to buy a house or a car, start a business, expand a farm, pay for college, or do other things that
require borrowing money. Where do banks get the money to lend? They get it from people who open
accounts. Banks act as go-betweens for people who save and people who want to borrow. If savers didn‘t
put their money in banks, the banks would have little or no money to lend. Your savings are combined
with the savings of others to form a big pool of money, and the bank uses that money to make loans. The
money doesn‘t belong to the bank‘s president, board of directors, or stockholders. It belongs to you and
the other depositors. That‘s why bankers have a special obligation not to take big risks when they make
loans.

The business of the banking has been defined in Section 5(b) of the Act as follows: ―Accepting for the
purpose of lending or investment of deposit of money from public, repayable on demand or otherwise and
withdrawal by cheque, draft, order or otherwise.‖

The present working of the banking system of India is based on the suggestions of the Narasimham
Committee. The Committee provides certain remedies and advices which gave a way of working for the
banking system in India. The major suggestions of the Committee are listed below

The Narasimham Committee

The banking sector reforms in the 1990s in India were based on the report of the committee headed by
Mr. M. Narasimham in 1991. Major recommendations of the committee were as follows

 There should be speedy computerization of the banking Industry.

It suggested to trace on the computerization of banking operations.

The Narasimham Committee –II

The Narasimham Committee, in its second report on banking sector reforms, submitted in April 1998,
made a series of sweeping recommendations which are being used as a launching pad to take India
banking into future. The report covers following points related with computerization and it mainly traces
on strengthening the Management Information System within the banks and financial Institutions so as to
sensitize them to the market risk assumed by them

. Without a sound and effective banking system in India it cannot have a healthy economy. The banking
system of India should not only be hassle free but it should be able to meet 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 most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even

13
to the remote corners of the country. This is one of the main reasons of India's growth process. The first
bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian
Banking System can be segregated into three distinct phases. They are as mentioned below:

• Early phase from 1786 to 1969 of Indian Banks

• Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

• New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms
after 1991

.Phase-I

The phase one is banking beginning with respect to customers. The Indian banks have also gone from
beginning in short to long changes with advancements in polices and rules to make banks strong. The
General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The
East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras
(1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920
and Imperial Bank of India was established which started as private shareholders banks, mostly
Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters 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. Reserve Bank of India came in 1935. During the first phase the growth was very slow and
banks also experienced periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. 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 the
Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to traders.

Phase-II

Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it
nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural
and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969,
major process of nationalization was carried out. It was the effort of the then Prime Minister of India,
Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step
brought 80% of the banking segment in India under Government ownership. The following are the steps
taken by the Government of India to Regulate Banking Institutions in the Country:

14
• 1949: Enactment of Banking Regulation Act.

• 1955: Nationalization of State Bank of India.

• 1959: Nationalization of SBI subsidiaries.

• 1961: Insurance cover extended to deposits.

• 1969: Nationalization of 14 major banks.

• 1971: Creation of credit guarantee corporation.

• 1975: Creation of regional rural banks.

• 1980: Nationalization of seven banks with deposits over 200 crore. After the nationalization of banks,
the branches of the public sector bank India rose to approximately 800% in deposits and advances took a
huge jump by 11,000%.

Phase-III

The Phase is recent which involves following points, this phase has introduced many more products and
facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham,
a committee was set up by his name which worked for the liberalization of banking practices. The country
is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service
to customers. Phone banking and net banking is introduced. The entire system became more convenient
and swift. Time is given more importance than money.

Banking Services In India With years, banks are also adding services to their customers. The Indian
banking industry is passing through a phase of customers market. The customers have more choices in
choosing their banks.

A competition has been established within the banks operating in India. With stiff competition and
advancement of technology, the services provided by banks have become more easy and convenient. The
past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of
the country being cleared in one month in the south. This section of banking deals with the latest
discovery in the banking instruments along with the polished version of their old systems.

Banks are public service institutions dealing with the funds of the public. The act was introduced in
March 1948 and was passed in the parliament in February 1949. It covers following points related with
Banking.

 Definition of Banking

 Business of Banking company and Prohibited Business

 Capital Requirement

 Management of Banks

15
 Maintenance of Liquid Assets

 Licensing of Banks

 Opening of new branches

 Provisions Regarding Loans and Advances

 Inspection of Banks

 Powers of the Reserve Bank of India

 Returns to be submitted

 Acquisition of Business

 Winding up of Banking Companies

 Amalgamation of Banking Companies

 Miscellaneous-Penalties

 Application of Act to Co-operative Banks.

Deposits, advances, lockers facility, payments and settlements, other financial services. We can study the
main aspect of advances and loan with respect to following points Profit is the pivot on which the entire
business activity rotates. Banking is essentially a business dealing with money and credit. Like every
other business activity. Banks are profit oriented. A bank invests its funds in many ways to earn income.
The bulk of its income is derived from loans and advances. Banks make loans and advances to traders,
businessmen and industrialists against the security of some assets or on the personal security of the
borrower. In either case, the banks run the risk of default in repayment. Therefore, banks have to follow a
cautious policy and sound lending principles in the matter of lending.

The banks in India have to trace on following points in future to cope with the global challenges

 Customer Service

 Online banking with core banking facility

 ATM locations at prominent places

 Security in Financial Transactions

 Safe Deposits

 Use of Advanced tools and software's to provide service to customers

 Regulatory framework for compliance

16
 Need for asset – liability Management

 Different types of products and services offered by banks

 Chaining nature of banking operations.

 New channels to provide banking services like Phone banking, Tele banking, Internet Banking and
Mobile Banking.

17
 CHAPTER – V
COMPANY PROFILE

18
 COMPANY PROFILE
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba
Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town
in Karnataka. The Bank has gone through the various phases of its growth trajectory over
hundred years of its existence. Growth of Canara Bank was phenomenal, especially after
nationalization in the year 1969, attaining the status of a national level player in terms of
geographical reach and clientele segments. Eighties was characterized by business diversification
for the Bank. In June 2006, the Bank completed a century of operation in the Indian banking
industry. The eventful journey of the Bank has been characterized by several memorable
milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks.
Canara Bank has several firsts to its credit. These include:
 Launching of Inter-City ATM Network
 Obtaining ISO Certification for a Branch
 Articulation of 'Good Banking' – Bank's Citizen Charter
 Commissioning of Exclusive Mahila Banking Branch
 Launching of Exclusive Subsidiary for IT Consultancy
 Issuing credit card for farmers
 Providing Agricultural Consultancy Services
Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial
Conglomerate' with as many as ten subsidiaries/sponsored institutions/joint ventures in India and
abroad. As at March 2021, Canara Bank services over 10.50 crore customers through a network
of 10416 branches and 13452 ATMs/Recycler spread across all Indian states and Union
Territories.
Not just in commercial banking, the Bank has also carved a distinctive mark, in various
corporate social responsibilities, namely, serving national priorities, promoting rural
development, enhancing rural self-employment through several training institutes and
spearheading financial inclusion objective. Promoting an inclusive growth strategy, which has
been formed as the basic plank of national policy agenda today, is in fact deeply rooted in the
Bank's founding principles. "A good bank is not only the financial heart of the community, but
also one with an obligation of helping in every possible manner to improve the economic
conditions of the common people". These insightful words of our founder continue to resonate
even today in serving the society with a purpose. The growth story of Canara Bank in its first
century was due, among others, to the continued patronage of its valued customers, stakeholders,
committed staff and uncanny leadership ability demonstrated by its leaders at the helm of affairs.
We strongly believe that the next century is going to be equally rewarding and eventful not only
in service of the nation but also in helping the Bank emerge as a "Preferred Bank" by pursuing
global benchmarks in profitability, operational efficiency, asset quality, risk management and
expanding the global reach.

19
 VISION

To emerge as a ‗Preferred Bank‘ by pursuing global benchmarks in profitability, operational

efficiency, asset quality, risk management and expanding the global reach.

MISSION

To provide quality banking services with good customer care, create value for all stakeholders
and continue as a responsive corporate social citizen.

Awards And Achievements

Awards/Accolades Received during 2020-21

 In IBA‘s 16th Annual Banking Technology Awards, Canara Bank received Joint Runner-up
award for Best Payment Initiatives.
 Canara Bank received Finnoviti 2021 award for Integration of Govt Scheme Demat Trading
Insurance.
 Public Relations Council of India has given bronze award for our in-house Magazine Shreyas
under House Journal – Print (English) category
 In 59th ABCI Annual Awards, Canara Bank‘s in-house Magazine ―Canara Jyothi‖ has received
awards under ―Indian Language Publication‖ and ―special column (language)‖ categories.
 Canara Bank has received ―Award of par Excellence‖ in APY Big Believers 3.0 (ABB)
organised by PFRDA.
 Canara Bank has received ―Exemplary Award‖ from PFRDA for achievement under Atal
Pension Yojana ―Old Age Financial Freedom Fighters‖.
 Canara Bank has received ―Certificate of Excellence – Amazing Achievers of APY‖ from
PFRDA.
Awards/Accolades Received during 2019-20

 Canara Bank has been awarded ‗India‘s Most Trusted Public Sector Banking Services Company
2019‘ by International Brand Consulting Corporation, USA.
 IBAs 15th Annual Banking Technology Award 2020 received for Most Customer-Centric Bank
using Technology
 Canara Bank has been awarded ‗SIDBI-ET INDIA MSE AWARD-2019‘ under noteworthy
Lender to MSE Category – (Public Sector Bank).
 Canara Bank received National award for SHG Bank Linkage 2018-19 (Public Sector Banks)
from DAY-NRLM, Ministry of Rural Development.
 Canara Bank won Tax Deductor of the Year Award for recognition of timely compliance to the
TDS/TCS provisions of Income Tax Act.
 Canara bank has been conferred with VISA GLOBAL QUALITY AWARD 2018 for the lowest
global frauds reflection our commitment to deliver superior service quality.
 Skoch Order of Merit Award 2019 for Canara DiYA, Canara Recovery App, Canara Digital
Learning & Social Media Analytics and Campaign management.

20
 Best innovation in Banking technology award for CANDI Branch received in IDRBT banking
technology innovation contest.
 Canara DiYA won Silver in SKOCH Awards 2019
 FINNOVITI 2020 award received for CANDLE for one of the best innovation in financial
sectors‘ technology.
 Canara Bank received the award for Best Data Quality Management 2018-19 at the Annual
Credit Information Conference.
Awards/Accolades Received during 2018-19
 Central Vigilance Commission has awarded Canara Bank with ‗Vigilance Excellence Award-
Outstanding‘ under Category ‗Timely Completion of Disciplinary Proceedings‘ for the year
2018.
 Bank received first runner up award on theme Credit off-take in EASE Banking Reform Awards
2019.
 Bank has bagged four awards from the Associated Chambers of Commerce and Industry of
India (ASSOCHAM) under Agriculture, Priority sector lending, Social Banking and
Technology.
 Bank has bagged eight Awards from Public Relations Council Of India (PRCI) including 3 Gold
under Television Commercials, Advertising Corporate Campaign RADIO and Advertising
Corporate Campaign Television
 NPCI Special Award in recognition of excellent performance in NFS ATM Network, Rupay,
CTS & UPI / IMPS.
 Bank‘s House magazine ‗Shreyas‘ bagged Making of Developed India Award sponsored by ET
Now for best in house magazine for the year 2018.
 Secured Chamber of Indian Micro Small & Medium Enterprises (CIMSME) awards for best
bank for promotional schemes (Large category).
 Received runner up CIMSME award for best MSME bank (Large category) and financially
inclusive bank (Large category).
 Secured PFRDA‘s best performing PSB award in APY performance and the splendid seven
awards for the APY campaign.
Awards/Accolades Received during 2017-18
 Received Master card Innovation Award for Canara International Prepaid card under prepaid
segment.
 ―Rupay Special‖ award for being the highest Rupay card issuing bank by NPCI.
 VISA Award on crossing a key milestone on issuance of 1.35 crore VISA debit card.
 Bagged FINNOVITI award for Innovation for CANDI Branch.
 ASSOCHAM Social Banking Excellence Awards 2017 for Government Sponsored Schemes
and Runner-up for Agriculture Banking in the Large Bank Class.
 Golden Peacock Award 2017 for Corporate Social Responsibility from Institute of Directors,
New Delhi.
 Skoch Technologies Growth 2017 for ―CANDI‖, digital branch.
 Excellent Customer Service Award‘ at the 5th SME Excellence 2017 by ASSOCHAM,
 Best CIO of the Year ‖ by Computer Society of India for ―CANDI‖ an ambitious digital
banking project of the Bank in the ―IT Innovation & Excellence Awards2017‖
 Skoch Smart Security awards 2017 for ―SIEM‖ tool.

21
 Dun and BradStreet Award for 2016-17 adjudging as Best Public Sector Bank –Priority Sector
Lending Bank. Consecutively third time (2014-15, 2015-16 and 2016-17) Bank has been
receiving this Award.
 Certificate of Excellence for exemplary leadership in promoting RSETIs and Certificate of
Excellence for RUDSETI for FY15 & FY16

22
 CHAPTER - VI
DATA ANALYSIS AND
INTERPRETATION

23
 DEMOGRAPHIC PROFILE OF THE RESPONDENTS

1. AGE GROUP OF THE RESPONDENT

S.NO AGE No. Of respondent Percentage

1 15-24 15 15
2 25-34 25 25
3 35-44 40 40
4 Above 45 20 20
Total 100 100

INTERPRETATION

From the above table it is inferred that 40% of the respondents age group is 35-44, 25% of the
respondents are in the age group is 25- 34, 20% of the respondents are in the age group above
45 and 15% of the respondents are in the age group of 15 -24.

AGE GROUP OF THE RESPONDENTS

AGE
20% 15%
15-24

25-34
25%
35-44

40% Above 45

24
2. GENDER OF THE RESPONDENT

S.NO Gender No. Of respondent Percentage

1 Male 33 33
2 Female 67 67
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 67% of the respondents are male and 33 %of the
respondents are female.

GENDER OF THE RESPONDENT

80

70

60

50

40 Male
Female
30

20

10

0
No. Of respondent Percentage

25
3. EDUCATION QUALIFICATION OF RESPONDENTS

S.NO Educational No. of respondent Percentage

qualification
1 SSLC 25 25
2 Hsc 21 21
3 Graduate 25 25
4 Diploma 13 13
5 Other specify 16 16
Total 100 100

INTERPRETATION

From the above table it is inferred that 25 % of the respondents completed SSLC & Graduation
respectively, 21% of the respondents completed HSC,13 % of the respondents completed
diploma and 16 %the respondents completed technical courses.

EDUCATION QUALIFICATION OF RESPONDENTS

30

25

20

15 No. of respondent
Percentage
10

0
SSLC Hsc Graduate Diploma Other
specify

26
4. MARITAL STATUS OF RESPONDENTS

S.NO Marital status No. Of Respondent Percentage

1 Married 80 80
2 Un married 20 20
3 Total 100 100

INTERPRETATION

from the above table it is infered that 80%of respondents are married and 20 % of respondents
are unmarried.

MARITAL STATUS OF RESPONDENTS

90

80

70

60

50
Married
40
Un married
30

20

10

0
No. Of Respondent Percentage

27
5. Did you apply to any financial institutions other than your main business bank for business
finance?

S.NO Yes/no No. Of respondent Percentage

1 yes 48 45
2 no 52 55
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 45% of the respondents are yes and 55 %of the
respondents are no

60

50

40

30 yes
no
20

10

0
No. Of respondent Percentage

28
6. What type of institution did you also apply to?

S.NO Applied No. Of respondent Percentage

1 Traditional bank 10 10
2 Corporate finance 20 20
3 Private investors 50 50
4 Peer to peer finance 10 10
5 Supplier finance 10 10
Total 100 100

INTERPRETATION:

From the above table it is inferred that 50% applied for private investors, and for corporate
it was 20%, 10,10,10% for others. That is traditional bank, peer to peer finance and supplier
finance.

No. Of respondent

Traditional bank
Corporate finance
Private investors
Peer to peer finance
Supplier finance

29
7. Did a bank other than your main bank offer you a better rate if you switched your Business
Current?

S.NO YES/NO No. Of respondent Percentage

1 YES 85 90
2 NO 15 10
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 85% of the respondents are Yes and 15 %of the
respondents are No.

100
90
80
70
60
50 YES

40 NO

30
20
10
0
No. Of respondent Percentage

30
8. Do you think that your bank caters all your banking needs?

S.NO YES/NO No. Of respondent Percentage

1 YES 80 80
2 NO 20 20
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 80% of the respondents are Yes and 20%of the
respondents are No.

90

80

70

60

50
YES
40
NO
30

20

10

0
No. Of respondent Percentage

31
9. What kind of account do you maintain in this bank?

S.NO Account No. Of respondent Percentage

1 Current 30 30
2 Savings 30 30
3 loan 20 20
4 Demat 10 10
5 Credit card 10 10
Total 100 100

INTERPRETATION:

From the above table it is inferred that the accounts which were maintained by respondents
were 30, 30% for current and savings, 20% for loans, and for demat account is 10%, remaining
10% for credit card.

35

30

25

20
No. Of respondent
15 Percentage

10

0
Current Savings loan Demat Credit card

32
10. Does your bank conduct any recreation facilities for the customers?

S.NO YES/NO No. Of respondent Percentage

1 YES 70 70
2 NO 30 30
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 70% of the respondents are Yes and 30%of the
respondents are No.

80

70

60

50

40 YES
NO
30

20

10

0
No. Of respondent Percentage

33
11. Does your bank have listed its share in stock exchange?

S.NO YES/NO No. Of respondent Percentage

1 YES 75 75
2 NO 25 25
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 75% of the respondents are Yes and 25%of the
respondents are No.

80

70

60

50

40 YES
NO
30

20

10

0
No. Of respondent Percentage

34
12. Do they charge unnecessarily for not maintain minimum balance in
your account?

S.NO YES/NO No. Of respondent Percentage

1 YES 20 20
2 NO 80 80
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 20% of the respondents are Yes and 80%of the
respondents are No.

90

80

70

60

50
YES
40
NO
30

20

10

0
No. Of respondent Percentage

35
13. Does your bank offers competitive service charges?

S.NO YES/NO No. Of respondent Percentage

1 YES 60 60
2 NO 40 40
3 Total 100 100

INTERPRETATION:

From the above table it is inferred that 60% of the respondents are Yes and 40%of the
respondents are No.

70

60

50

40
YES
30 NO

20

10

0
No. Of respondent Percentage

36
14. What do you feel about overall service quality of your
bank.

S.NO Performance No. of respondent Percentage

1 Excellent 50 50
2 Very good 20 20
3 Good 20 20
4 Poor 10 10
Total 100 100

INTERPRETATION:

From the above table it is inferred that service quality 50% was given for excellent, 20, 20%
for good and for poor it was 10%.

60

50

40

30 No. of respondent
Percentage
20

10

0
Excellent Very good Good Poor

37
15. When do you think of your bank what comes first in your mind

S.NO Bank Performance No. of respondent Percentage

1 Personalise services 50 50
2 Wide branch network 10 10
3 Customer service 30 30
4 Computerized 10 10
banking
Total 100 100

INTERPRETATION:

From the above table it is inferred that the percentages of bank for personalised bank
services is 50%, for wide branch network it is 10%, and for the customer service it is 30% , the
respondent for computerized banking is 10%.

60
50
40
30
20
No. of respondent
10
Percentage
0

38
 CHAPTER - VII
RESEARCH FINDINGS &
SUGGESTIONS

39
 RESEARCH FINDINGS
 From the above table it is inferred that 45% of the respondents are yes and 55 %of the
respondents are no
 From the above table it is inferred that 50% applied for private investors, and for
corporate it was 20%, 10,10,10% for others. That is traditional bank, peer to peer finance
and supplier finance.
 From the above table it is inferred that 85% of the respondents are Yes and 15 %of the
respondents are No.
 From the above table it is inferred that 80% of the respondents are Yes and 20%of the
respondents are No.
 From the above table it is inferred that the accounts which were maintained by
respondents were 30, 30% for current and savings, 20% for loans, and for demat account
is 10%, remaining 10% for credit card.
 From the above table it is inferred that 70% of the respondents are Yes and 30%of the
respondents are No.
 From the above table it is inferred that 75% of the respondents are Yes and 25%of the
respondents are No.
 From the above table it is inferred that 20% of the respondents are Yes and 80%of the
respondents are No.
 From the above table it is inferred that 60% of the respondents are Yes and 40%of the
respondents are No.

40
 SUGGESTIONS
The following suggestions are offered to improve the services by Banks in Sivakasi.

 Both Public Sector & Private Sector Banks shall motivate all age groups to avail services for
their personal use to enhance their banking activities.

 All commercial banks shall give importance to the women customers to avail services

.  Banks shall differentiate itself with weekends and extended working hours.

The customers are choosing the services for different reasons. The researcher has identified some
reasons like Attitude of employees, ATM facility, Internet Banking, Customer Car and
Information about new services. Moreover, to identify the reason which is the most vital one to
the researcher has used Garret‘s Ranking Test.

It is calculated as percentage score and the scale value is obtained by employing Scale
Conversion Table given by Henry Garrett. The Percentage Score is calculated as Percentage
Score = 100 (Rij – 0.50) Nij

Where, Rij is Rank given for ith item jth individual

Nj is Number of items ranked by jth individual The percentage score for each rank from 1 to 5
are calculated. The percentage score thus obtained for all the five ranks are converted into scale
values using Scale Conversion Table given by Henry Garrett. The scale values for first rank to
fifth rank are 75, 60, 50, 40 and 25 respectively. The score value (fx) is calculated for each factor
by multiplying the number of respondents (f) with respective scale values (x). The total scores
are found by adding the score values (fx) of each rank for every factor.

41
 CHAPTER -VIII
SUGGESTIONS &
RECOMMENDATIONS

42
 SUGGESTIONS & RECOMMENDATIONS
The following suggestions are offered to improve the services by Banks in Sivakasi.

 Both Public Sector & Private Sector Banks shall motivate all age groups to avail services for
their personal use to enhance their banking activities.

 All commercial banks shall give importance to the women customers to avail services

.  Banks shall differentiate itself with weekends and extended working hours.

The customers are choosing the services for different reasons. The researcher has identified some
reasons like Attitude of employees, ATM facility, Internet Banking, Customer Car and
Information about new services. Moreover, to identify the reason which is the most vital one to
the researcher has used Garret‘s Ranking Test.

It is calculated as percentage score and the scale value is obtained by employing Scale
Conversion Table given by Henry Garrett. The Percentage Score is calculated as Percentage
Score = 100 (Rij – 0.50) Nij

Where, Rij is Rank given for ith item jth individual

Nj is Number of items ranked by jth individual The percentage score for each rank from 1 to 5
are calculated. The percentage score thus obtained for all the five ranks are converted into scale
values using Scale Conversion Table given by Henry Garrett. The scale values for first rank to
fifth rank are 75, 60, 50, 40 and 25 respectively. The score value (fx) is calculated for each factor
by multiplying the number of respondents (f) with respective scale values (x). The total scores
are found by adding the score values (fx) of each rank for every factor.

43
BIBLIOGRAPHY

44
 BIBILIOGRAPHY

1. "History". www.abnamro.com. Retrieved 30 March 2018.

2. ^ "Understanding Cost Drivers and Pricing Models in Wealth Management and Private
Banking- MyPrivateBanking". www.myprivatebanking.com. Retrieved 30 March 2018.
3. ^ Whitlock, Craig (29 March 2009). "Facing Pressure Over Banking-Secrecy Tradition,
Switzerland Braces for Fight". Retrieved 30 March 2018 – via
www.washingtonpost.com.
4. ^ "Swiss Banks Buck Secrecy Squeeze With $53 Billion of Inflows". 14 October 2010.
Retrieved 30 March 2018 – via www.bloomberg.com.
5. ^ The Swiss banks by T. R. Fehrenbach
6. ^ Hitler's Secret Bankers by Adam LeBor
7. ^ "The Offshore Business Has Recovered—but Challenges
Remain". bcgperspectives.com. Retrieved 30 March 2018.
8. ^ Hanson, Joyce. "Top 10 Countries With Most Millionaires:
Capgemini/RBC". AdvisorOne. Archived from the original on 16 January 2013.
9. ^ "The death of private banking…". Euromoney. Retrieved 2020-03-28.
10. ^ "JPMorgan Private Bank's $10M Minimum Rattles Clients and Bankers". AdvisorHub.
2016-03-22. Retrieved 2020-03-28.
11. ^ name="Scorpio Partnership">"Private Banker International Global AuM
ranking". archive.org. 4 September 2019. Retrieved 4 September 2019.

45
QUESTIONNAIRE

46
 QUESTIONNAIRE

1. Name :

2. Age group :15-24 25-34 35-44 45-54 above54

3. Gender : Male Female

4. Education qualification : SSLC HSC Graduate Diploma

Other specify

5. Marital status : Married Unmarried

6. Did you apply to any financial institutions other than your main business bank for business
finance?

Yes No
7. What type of institution did you also apply to?

1 Traditional bank

2 Corporate finance

3 Private investors

4 Peer to peer finance

5 Supplier finance

8. Did a bank other than your main bank offer you a better rate if you switched your Business
Current?

Yes No
9. . Do you think that your bank caters all your banking needs?

Yes No
10. What kind of account do you maintain in this bank?

1 Current account

2 Savings account

3 loan account

47
4 Demat account

5 Credit card account

11. Does your bank conduct any recreation facilities for the customers?

Yes No
12. Does your bank have listed its share in stock exchange?

Yes No
13. . Do they charge unnecessarily for not maintain minimum balance in
your account?

Yes No
14. Does your bank offers competitive service charges?

Yes No
15. . What do you feel about overall service quality of your
bank.

1 Excellent

2 Very good

3 Good

4 Poor

16. When do you think of your bank what comes first in your mind?

1 Personalise services

2 Wide branch network

3 Customer service

4 Computerized banking

48