IMPACT OF 12 HOUR BANKING ON CUSTOMERS

A RESEACH PROJECT REPORT FOR INTERNAL EXAMNINATION

SUBMITTED BY
ZALA BHARTI BHAGWARTI
ROLL NO. 50
TO THE PG DEPARMENT OF COMMERCE
UNDER THE GUIDANCE OF
MRS. KALAYANI
IN PARTIAL FULFILLEMENT OF THE DEGREE OF
MASTER OF COMMERCE
BANKING & FINANCE
SEMESTER IV
(2013-2014)
RESEARCH METHODOLOGY

SIES COLLEGE OF COMMERCE AND ECONOMICS,

Plot No. 71/72, Sion Matunga Estate
T.V. Chidambaram Marg, Sion (East), Mumbai 400022

CERTIFICATE

This Is To Certify That Ms. BHARTI ZALA OF M.Com Banking &

Finance Semester IV (2013-2014) has Successfully completed
the project work entitled IMPACT OF 12 HOUR BANKING ON
CUSTOMERS Under The Guidance Of
MRS. KALAYANI

_______________________________
____________________________
Project

Guide/

Internal

Examiner

External Examiner
(MRS.KALAYANI )

____________________
____________________
Course

Co-ordinator

PRINCIPAL

(Mrs.SHAILASHRI UCHIL)
THOMAS)

(Dr.MINU

DATE:
PLACE:

DECLARATION

I, BHARTI ZALA , the Student of M.Com (Banking &

Finance) Semester IV (2013-2014) Hereby Declare That I
Have Completed The Project On IMPACT OF 12 HOUR
BANKING ON CUSTOMERS
The Information Presented Through This Project Is True
And Original To The Best Of My Knowledge.

______________
Date:

BHARTI ZALA

Place:
Roll No. 50

ACKNOWLEDGEMENT

I Would Like To Extend My Sincere Gratitude To All Those People

Who Have Helped Me In The Successful Completion Of My Project.
I Express My Gratitude To Our Principal, Dr. Minu Thomas For
Being A Constant Source Of Support And For Always Being There
Whenever We Students Need Her Guidance. I Am Thankful To My
Project Guide, Mrs.KALYANI Who Guided Us Throughout The
Completion Of The Project. I Would Like To Thank My Course
Coordinator Mrs. Shailashri Uchil Who Gave Us The Necessary
Guidance Regarding The Technical Aspects Of The Project .I Also
Thank The Library Staff At The College For Their Constant Support
And Help In Providing Us The Right Books Needed For The Study.
A Special Thanks To My Parents for Their Constant Support &
Encouragement in Everything That I Do.

INDEX
Sl.

Title

Page
No

No.
ACKNOWLEDGEMENT

SUMMARY
1.

CHAPTER 1: ABOUT 12 HOUR

BANKING
1.1

Introduction

1.2

Need for 12 hour start up

1.3

Its also a marketing decision

1.4

Reasons for start up

1.5

12 hour preferred instead of 8 hour

10
5

2.

CHAPTER 2: RESEARCH OBJECTIVE

12

2.1

Methodology

12

2.2

Limitation

12

2.3

Research design

13

2.4

Sample profile

13

CHAPTER 3: SURVEY ON 12 HOUR

15

BANKING SERVICES
3.1

Data analysis and explanation on findings

15

3.2

Findings and suggestions

29

CHAPTER 4: CONCLUSION

30

CHAPTER 5: BIBLIOGRAPHY

31

SUMMARY
This research entails the study of impact of 12hour banking undertaken by banks
and their impact on customers. The philosophy that Customer is king is apparently
the major reason for this increase in banking hours. Today, the customer is more
demanding than ever and only those organizations that can provide value for
money and time of their customers, can ensure customer loyalty. Provide value for
money and time of their customers, can ensure customer loyalty. The project also
tries to analyse the responses and reactions of customers, to this service with aid of
questionnaires and personal interviews.

CHAPTER: 1
CHAPTER1: ABOUT 12 HOUR BANKING
1.1: INTRODUCTION TO 828 START UP
Get your team together, split them into small groups, and give them 12 hours to
build a new product or service from your existing resources

1.2: NEED FOR 12 HOUR STARTUP

It stimulates creative thinking
Allows your employees to try solutions that have been lingering for years
Pushes forward simple ideas that can be executed quickly
Builds comradely
Also
Gets rid of toxic ideas that people believe in till they have been proven wrong
Most importantly, encourages out of the box thinking. How can we take what
we have got and serve our customers better?

1.3: ITS ALSO A MARKETING DECISION

To staff it says, we value your input - let's give it a go

 To customers it says, we are seeking new ways to help you

To management it's driving strategic direction from sales (ideas that work)

RUN WITH IT:

Take this concept and apply it to your business. Can your team come up with some
new product ideas / extensions and go from idea to concept within 12 hours.

12 HOUR BANKING START UP

BECAUSE REMARKABLE IDEAS CANT WAIT
1.4: Reasons for start up
There is a great impact of increase in banking hours in todays modern and busy
world. Most private sector banks implemented the concept of 8 to 8 banking-a
twelve hour banking system, more than a year ago. Before we start with the
analysis of what has been the impact of this service, let us understand the reasons
behind its implementation.
Following is a list of few reasons considered by these banks while
implementing this service:
Finance Ministers verdict: The Union Finance Minister P. Chidambaram
told banks to function from 8 AM to 8 PM on all working days to serve
different types of customers.

 Competition: With private banks like ICICI and PSU banks like Union bank
of India, PMC bank already implementing 12 hour banking, it becomes quite
essential for other banks to follow the trend in order to maintain their
clientele.
Customer-centred convenience banking: Unlike old days, customers today
are more aware and demand prompt services. Also, they would like to visit
their banks as per their convenience. Thus, this decision is a completely a
customer centric move.
To convey a subtle message: We care for u (customers)
Attracting new clientele: A customer may be having an account with a bank
which works as per traditional timings; i.e. 10 AM to 5 PM. He can get
banking facilities even between 8 AM to 10 AM and after 5 PM, by opening
an account with bank which offers twelve hour banking.

1.5: 12 HOUR BANKING PREFERRED INSTEAD OF 8

HOURS
A strong argument in favour of 12-hour BANKING is that these work
arrangements have the potential to eliminate or reduce some of the problems of
working hours because work is usually compressed into fewer days each week.
Thus staffs are generally required to work fewer hour than they are on 8hours .This means that there are fewer circadian changes imposed on the body
and workers can have more available free time with their family and friends,
Therefore, according to this line of argument, 12-hourworking hours can redress
some of the conflict staff tend to report between their work schedule and family,
10

biological and community rhythms. However, although there are persuasive

arguments suggesting that 12-hour workings are likely to help staff achieve less
work/non-work conflict, relatively few studies have tested this argument
empirically. Many studies have linked work/non-work conflict to fatigue,
psychological ill-health, depressed mood and increased physical symptoms
amongst 8-hour working but no direct research has examined whether
work/non-work conflict changes with the introduction of 12 hour working.

11

CHAPTER: 2
RESEARCH OBJECTIVE:
To understand the need for increase in banking hours.
To understand the impact of this service on:
Customers
Employees
To provide suggestions to further increase the benefits of this
service.

2.1 METHADOLOGY:
The data is Primary data is collected by personally visiting the concerned
person and the secondary data is collected from internet, websites of the
concerned banks and from books.

2.2 LIMITATION:
Some customers were not interested in sharing their experiences due to
limitation of time and similar reasons.
12

 The results are based on the assumption that the information provided by
respondents is correct and true.
The lack of secondary data created difficulties in getting research help.
Sometimes the customers felt conscious of the fact that they were being
interviewed as they were not sure whether to reply to my queries or not.

2.3RESEARCH AND SAMPLE METHODOLOGY AND DESIGN

The concept of twelve hour banking was introduced by most nationalized banks
almost a 3 ago. With just one year of its implementation, there has been lack of
sufficient secondary data. Hence, the primary research was conducted by observing
and interviewing customers who visited the bank. They were also requested to fill a
questionnaire to further help us with their responses. This customer questionnaire
was also emailed to certain target audience. This same method was applied in all
the branches visited.
SAMPLING METHOD
The sample would comprise any customer who walked in during the
banking period. In order to cover customers who were more in habit of
internet banking and ATMs, questionnaire was emailed to them. In this
case, I took help of family and friends. Also, in order to get variety of
responses I made sure that customers from different professions and home
makers were all included in sample.

13

2.4 SAMPLE PROFILE:

30 respondents were taken to conduct survey.
People from different age group, occupation were selected for survey.

METHOD OF DATA COLLECTION

QUESTIONNIARE
Questionnaire is a formalized instrument for asking information directly from the
respondent and concerning behaviour, demographic characteristics, level of
knowledge and/or attitudes, beliefs and feelings. I have collected the primary data
through questionnaires administered to our target audience. Structured and direct
questionnaires were framed as they produce more reliable results than unstructured
questionnaires.

INTERVIEW
This is structured direct interview. The interview was a one-to-one or face-to-face
interview or a personal interview. The response of the respondents is better and
even personal questions can be asked in a convenient manner, which improves the
quality of the research work.

14

CHAPTER: 3
3.1 DATA ANALYSIS AND EXPLACTION OF FINDINGS:
The questionnaire is a combination of open ended, single option and multiple
option questions. It has been divided into two sections. The questionnaire mainly
tries to find out responses directly related to their visit to their bank and also aims
to find out if customers find use of e-banking, Tele-banking, ATMs more
convenient rather than visiting their bank. It also aims to find out the popularity
and flexibility of customers with plastic money. Following is the detail analysis of
the responses to these questions.

Age group of sample:

No of respondents

Age group of respondents

Below 30
Between 30 to 60
Above 60

7
13
9

15

The age was asked in order to determine the age group of the respondents to
separate them into different groups.
This helps in finding out the percentage of senior citizens. During the
observation, it was noticed that the majority customers coming into the bank
during early morning hours were pensioners.

Occupation :

16

From the above graph we see that maximum no of the customers visiting the
bank are service class. This class also includes the people who work under
some sole trader or firm. Many of them are sent by their bosses/superiors to
bank to handle the banking work of their shop. This means that those in
service class may not have visited the bank for their own work, but rather for
the work of shop they work for. Also, it was observed that the respondents in
this category usually came after 10.30 AM, as that is the usual time of shops
opening. Students, who formed the next category, included

those students

who visited the bank to get Demand Drafts for fees payment, etc. Also, this
category includes those students who are not very conversant with internet
banking and ATMs.
The respondents under the business category included those who had some
business unit of their own. As per the observation, the respondents under this
category usually visited the bank before 10 AM. The reason cited by them
17

was that it is convenient to finish banking work before going to work.

Another category was that of housewives. The only pattern that I observed in
this category was that they visited the bank usually between 12 PM to 7 PM.
The last category comprises of the senior retired citizens who visited the bank
to collect their pension. These customers usually visited the bank as early as
8.30 AM. The reason they cited was that there were less chances of waiting in
queue as not many customers visiting the bank between 8.30 AM and 9.30
AM.
What type of account do you have in your bank?

Account holder:
Types of account

No of respondents

Current account
Savings account
Pension fund
Other

7
13
4
6

18

Account Holder
14
12
10
8
6
4
2
0

Current

Saving

Pension

Other

As can be seen in the above graph and table maximum no of respondents are
saving account holders who have normal savings accounts in banks.

What are the banking hours of your bank?

BANK HOURS:
BANK HOURS

NO OF RESPONDENTS

8AM to 8PM

20

9AM to 5PM

DONT KNOW

19

From the above graph and table we can analysis that 20 respondents, said that
their bank functions for twelve hours, i.e. 8 AM to 8 PM. But, what was most
surprising that some respondents did not know as to what are their banks
timings. Many of them were customers of ICICI. This is a very important
point. Most ICICI branches had implemented twelve hour banking service 2
years ago, but still not all customers were aware about it. This may be because
of lack of proper promotion of this service. Many customers were least
bothered about the increase in timings and felt there was not much
improvement in banks services.
How frequently you visit your bank?
Visit bank:

visit Bank
Once/twise every month
Once a week

visit Bank

Every alternate day

Everyday
0

10

12

The above chart aims to determine how frequently customers visit their bank.
As can be seen from the chart, 10 respondents said they visit their bank once
or twice in a month and 7 visit banks once a week.

20

The major reason cited by these respondents for not visiting bank frequently
is availability of options like ATMs, e-banking and telephone banking.
These respondents visited their bank as per their convenience and
requirement. Rest respondents included those businessmen who visit their
bank everyday or every alternate day. But again most of the respondents in
this visit the bank between 10 AM to 2 PM.
What is the reason you typically visit your bank?
Reason to visit a Bank:

Reason to visit a bank

10
9
8
7
6
5
4
3
2
1
0

Reason to visit a bank

As can be seen from the above graph, majority customers visit a bank for
deposits and withdrawals. Majority of these respondents belong to business
class who deposit their daily earnings into bank and most of their transactions
are through bank.
Very few customers visit bank to get advice with investment decisions. In
option of other most people said they visited bank for pass book update, for
21

making drafts and for bill payments. This question aims at finding out for
which services customers mainly visit a bank branch.
Which of the following services does your bank provide?

Other services:

USE OF OTHER BANK SERVICES

NO OF RESPONDENTS

ATM

15

Net banking
Phone banking

7
8

16
14
12
10
8

other services

6
4
2
0

ATM

Net banking

Phone banking

22

As we can see from the above graph and chart respondent make use of
internet banking services. Here, we see that maximum no of respondents
use ATM service.Net banking and phone banking is less popular among
customers. The fact that people prefer ATMs more than visiting the banks.
Need for 12 hour banking?

NEED FOR EXTRA HOUES

Yes
No

NO OF RESPONDENTS
16
14

Need of extra hours

Yes
47%

No
53%

As we can be seen in the above graph and chart maximum no of respondents thinks
that its good to have extra hours.
Following are the comments from the customers.
23

Comments of the customers:

For emergency services like cheque collection, I think it is a good proposition
to keep the bank's branch open till late evening. But with the 24-hour ATMs
and also Internet banking, I don't feel the need for extended hours of banking
at every branch. Certain branches at key commercial areas will be very
helpful."
"Even though it is now possible to draw money through ATMs and purchase
demand drafts through the Internet, the increased working hours can improve use
of facilities like safe deposit lockers, which can be accessed only at the bank. There
is a monetary limit imposed for drawing money from ATMs and higher amounts
can be withdrawn only from a bank. Other non-banking operations like insurance
advisory services can be possible in the extra hours. The longer working hours are
particularly beneficial to those who do not access the Internet."
Internet banking is more convenient rather than visiting a bank?
E-Convenience:

E-convinience
20
18
16
14
12
10
8
6
4
2
0

E-convinience

Yes

No

24

According to above graph we come to know that maximum respondents thinks

that internet banking is more convenient rather than visiting a bank but many
customers are not comfortable using internet banking or they face many problems
while using internet banking.

In your bank, you....

In your bank
18
16
14
12
10
8
6
4
2
0

The above chart aims to determine if the increase in banking hours has
reduced rush of customers at any particular point of time. Maximum no of
25

respondents say that they dont need to wait much now. Among these 17
respondents, most complimented the bank for having increased the banking
hours. Few of their statements are as under:
"Previously it was a case of waiting long for your own money. This new
service is customer friendly and efficient."
Earlier we had to stand in long queues, but now we are spared that. This is a
positive change.
But, some respondents say they always have to wait in queue to get service.
Of these 13, most of the respondents visit the bank between 10 AM to 2 PM.
This indicates that despite increase in banking hours, many respondents do
not take advantage of service. Apparently, the reason behind this is that most
shops open after 10 AM and cheque collection period is till 12 PM.
Does increase in banking hours gives flexibility in visiting a bank?
Flexibility in visiting a bank?

FLEXIBILITY IN VISITNG A BANK

YES
NO

NO OF RESPONDENTS
22
8

26

Flexibility in visitng a bank

No; 27%

Yes; 73%

According to above graph and table, maximum no of respondent are happy with
extend banking hour.

Various problem customer face while visiting a bank:

This question was asked to get feedback from respondents about various
problems faced by them.
The responses include not only those problems that should had reduced after
increase in banking hours, but also those problems which are directly related
to the performance of bank. It is highly important that the services provided
by bank are utmost professional and directed towards customer satisfaction.
Increase in banking hours will be most profitable only when such professional
environment is ensured.
Following is the list of few responses:
27

 Many times printing machine at bank is not functioning.

New account cannot be opened after 5 PM. What is the use of bank being
open till 8 PM
I deposited cash at 9.30 AM in my bank account. At 10.30 AM, I went to an
ATM machine to withdraw some money. To my surprise, there was no
change in my balance!
The cheque clearing time is very limited. With increase in banking hours,
this facility should also be extended for more hours.
Sometimes the person responsible to provide a certain service is not on his
desk. In such case, nobody else comes to the aid of customer.
Many times employees keep chatting among themselves, not realizing that
the customer wants his work to be done as soon as possible. Also, customers
are waiting in the queue get irritated because of this unprofessional attitude
of bank officers.
I had asked the bank to issue me the cheque book, almost 3 months back. I
have still not received the cheque books. Besides, there has been no proper
explanation from the bank officials for such negligence.
There should be separate counter for services like getting pass book updated.
Any suggestions or comments related to timings and services of your
bank?
Following is the list of some suggestions given by customers:
28

a) We are happy that the bank is open for twelve hour now. This gives
flexibility in visiting the bank at any time of day.
b) Although banking time has been increased, employees behave in a typical
PSU employee manner. Unless the attitude of professionalism sets in,
customers will always keep complaining about bank and its services. This
negative word of mouth publicity will eventually lead to many customers
opting for private banks.
a) Although banking hours have increased, infrastructure remains the
same. There is just one printing machine for making pass book entries,
and many times that too is out of order.
b) There should be more counters for different kind of services and senior
citizens should get proper assistance.

3.2FINDINGS AND SUGGESTION:

Following is a list of few suggestions

Young and more professional staff will help in better implementation of the twelve hour
banking concept. Customers presence is most important in 8 to8 branch. While
implementing 8 to8 banking, it is very important to analyse whether branch requires
extended hours of working.

29

In those branches where frequency of the customers visiting the branch is high and in
case of branch being located in a residential cum commercial area, 8 to 8 banking should
be implemented. But branches were there are less customers, 8 to 8 banking will only
lead to loss due to increase in various expenses like electricity charges, telephone bills,
etc. Thus 12 hours can be beneficial only to few selected branches.
To ensure proper delivery of services, staff strength must be adequate.
Since ATM and internet banking are made available to customers, there is no
need to increase the banking hours.

CHAPTER:4
CONCLUSION:
There

is

no

doubt

that

within

just

few

year

of

its

implementation, 12 hour banking has had quite a significant

impact on customers of the bank. It has given a fair chance to
banks competed with the other. While many, customers felt that
the facility gave them flexibility in visiting the branch. Customers
30

like office goers, housewives, pensioners, students have benefited

the most because of increased banking hours. On the other hand,
not much difference has been noted among shop owners and
businessmen. Though many customers are happy that banking
hours have increased, they want that all services should be
provided. Most employees are unhappy to work for extended
hours as they are not satisfied with the current compensation
scheme. Although, 8 to 8 banking helps to counter competition
from other banks, it faces internal competition from facilities like
internet banking and telephone banking. ATM, internet banking
and telephone banking provide an option to customers for not
visiting their bank. A customer not visiting their bank leads to idle
time and this increases frustration of employees. As far as
financial performance is concerned, there has been substantial
increase in the profits of banks. With increase bank hours there was
increase in cash transactions- deposits, withdrawals remittances, etc. Also, there
was increase in cheque related transactions. Customers for Demand drafts, Savings
Account, Current Account, Pension account, bill payment, etc. have increased. Not
much difference has been noted for other services.

CHAPTER:5
BIBILIOGRAPHY:
BOOKS
31

 Modern banking in India- Sumant k. Muranjan

Indian banking- R. K. Uppal

WEB
WWW.GOOGLE.COM

32