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 people’s 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 of
making investment and advancing loan.

1.2 INSUSTRY PROFILE

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

 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

 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 State’s 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
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 Bank’s 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.
 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.

 • 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.

SCOPE OF 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 the
service 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
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.
 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 day by 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.
 3.2 DATA INTERPRETATION

Table 1

TABLE SHOWING TYPES OF DEPOSIT

S.No Restriction No. of Percentage

Respondents %
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
TABLE SHOWING HOW LONG CUSTOMERS ARE OPERATING

THE ACCOUNTS IN THE INDIAN BANK

S.No Period No. of Percentage

Respondents %
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

Source: Primary data

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

 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

Source: Primary data

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 FOR

WITHDRAWING 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

Source: Primary data

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
S.No Restrictions No. of Respondents percentage%
a Yes 21 21
b No 79 79
Total 100 100

Source: Primary data

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.
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 this
bank 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 agreed
hat time taken to encase a bank draft / cheques takes over 30 minutes and 145 of the customers
are no commands
 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.
CHART SHOWING NUMBERS OF RESPONDENTS A VALIED LOAN
FACILITIES
 TABLE SHOWING PURPOSE WISE LOAN ISSUED

S.NO RESTRICTION NO.OF PERCENTAGE

RESPONDENT %
A BUSINESS 09 42.85
B HOUSE HOLD 05 23.80
EXPENDITURE
C PURCHASE OF 03 14.28
VEHICLES
D MEDICAL 02 09.52
EXPENDITURE
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.
GRAPH SHOWING PURPOSE WISE LOAN ISSUED

TABLE SHOWING SECURITIES DEMANDED FOR A LOAN

 S.NO RESCTICTION NO.OF PERCENTAGE
RESPONDENT %
A VERY HIGH 03 14.28
B HIGH 13 61.90
C NORMAL 05 23.80
D LOW _ _
E VERY LOW _ _
TOTAL 21 100

SOURCE: Primary data

From the table 4.12, securities demanded in comparison with amount of loan is examined. Regarding
the bank, 03(14.28%) respondents statedthat securities demanded by the bank over the loan amount is
very high13(61.90%) respondents stated that securities demanded in comparison with amount of loan
is high and only 05(23.80%) respondent stated normal.

TABLE SHOWING NUMBER OF RESPONDENTS

 OPERATING BANK ACCOU8NT OTHER THAN INDIAN BANK

S.NO RESTRICTION NO.OF PERCENTAGE

RESPONDENTS %
A YES 27 27
B NO 63 63
TOTAL 100 100

Source: Primary data

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

 No. of respondents

TABLE SHOWING HOW TO THE CUSTOMERS RATE THE

SERVICE RENDERED BY INDIAN BANK

 S.NO RESTRICTION NO.OF PERCENTAGE
RESPONDENTS %
A Better than the other 09 33.33
bank
B Not better than the 14 51.85
Other bank
C Similar 04 14.81

Total 27 100

Source: Primary data

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

 SERVICE RENDERED BY INDIAN BANK

TABLE SHOWING CUSTOMERS OPINION ON THE

 BANKING HOURS

S.NO RESTRICTION NO.OF PERCENTAGE

RESPONDENTS
A HIGHLY 13 13
CONVENIENT
B CONVENIENT 41 41
C REASONABLE 36 36
D INCONVENIENT 07 07
E HIGLY 03 03
CONVENIENT
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
S.NO RESTRICTION NO.OF PERCENTAGE
RESPONDENT %
A HIGHLY 11 11
STATSIFIED
B STATSIFIED 27 27
C AVERAGE 30 30
D NOT STATSIFIED 25 25
E POOR 07 07
TOTAL 100 100

Source: primary data

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.
 TABLE SHOWING SEX PATTERN OF RESPONDENTS

S.NO RESTRICTION NO.OF PERCENTAGE

RESPONDENTS %
A MALE 76 76
B FEMALE 24 24
TOTAL 100 100

Source: primary data

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.
CHART SHOWING SEX PATTERN OF RESPONDENTS

NO. OF RESPONDENTS
 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

Source: primary data

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.
 TABLE SHOWING EDUCATIONAL QUALIGICATION OF THE

RESPONDENTS

S.NO RESTRICTION NO.OF PERCENTAGE

RESPONDENTS %
A ILLERATE 05 05
B SCHOOL LEVEL 36 36
C COLLEGE LEVEL 59 59
TOTAL 100 100

Source: primary data

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.