25-08-2017, 09:32 PM
BANKING AND FINANCE CUSTOMER STISFACTION SURVEY
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History of bank in India
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and The Bank of Hindustan, which started in 1790; but both are now defunct. The oldest bank of India is the State Bank of India, which originated as the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This is the largest commercial bank in the country. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company.
Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.
In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these. do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs.
Nationalization
This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included.The Reserve Bank of India, India's central banking authority, was nationalized on January 1, 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India."
The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.
Liberalization
In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.
Difference between nationalized banks & private banks.
Nationalized banks are those banks where the Govt. holds more than 51 % of the paid up equity shares capital and the management of the banks are vested in the hands of the Govt. nominated Directors.
The private banks are those where the share capital is held by the public not the Government and the management is vested in the hands of Directors elected by share holders. The banking policies for both private and nationalized banks are framed by the Central Bank. In India the RBI is the central bank.
Objectives of the Research
The first step in any research is deciding what we want to learn. The objectives of the project determine whom we will survey and what we will ask them. If our goals are unclear, the results will probably be unclear. Objectives are the keys to proceed forward in any research.
• To study the kind of services provided by the Bank to the customers.
• To find out whether the customers are satisfied by the services and facilities provided by the Bank.
• To find out how frequently do the correspondents do?
• To find out what are the factors correspondents are dissatisfied with.
• To find out what are the factors correspondents are satisfied with.
Research methodology
Research is a diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories and application, etc.
Methodology is the system of methods followed by a particular discipline. Thus research methodology is a way how we conduct our research.
The basic concept of research methodology refers to the way in which companies conduct their research and how they collect the data they need. Whenever a company or organization needs to investigate a particular area of their business dealings, they need to adapt the most suitable research methodology for the job.
Research methodology typically involves a full breakdown of all the options that have been chosen by a company in order to investigate something. This would include the procedures and techniques used to perform the research; as well as any of the terminology and explanations of how these methods will be applied effectively.
A company may need to decide what format of research they want to use before the investigation begins. For example, if a company that sells a particular product needs to launch research to find out how effective or desirable a new product is, they will need to conduct what is known as primary research. This method means that the company will collect data and information themselves first hand.
Alternatively, a company many only require figures or statistical findings that can be located from an external source to themselves. This is known as secondary research, and this area of research methodology typically involves reading published journals, newspapers and other materials to give companies the information they need second hand.
Sampling Method and Technique Used
There are many sampling methods which are taken by the need of the survey report; all these methods are helping out for effective use of respondent’s response in a positive way.
Some of the techniques are these:
Random Sampling
The first statistical sampling method is simple random sampling. In this method, each item in the population has the same probability of being selected as part of the sample as any other item.
Systematic Sampling
Systematic sampling is another statistical sampling method. In this method, every element from the list is selected as the sample, starting with a sample element n randomly selected from the first k elements.
Stratified Sampling
The statistical sampling method called stratified sampling is used when representatives from each subgroup within the population need to be represented in the sample. The first step in stratified Sampling is to divide the population into subgroups (strata) based on mutually exclusive criteria.
Random or systematic samples are then taken from each subgroup.
Cluster Sampling
The fourth statistical sampling method is called cluster sampling, also called block sampling. In cluster sampling, the population that is being sampled is divided into groups called clusters.
Instead of these subgroups being homogeneous based on a selected criterion as in stratified Sampling, a cluster is as heterogeneous as possible to matching the population. A random Sample is then taken from within one or more selected clusters.
Judgmental Sampling
Another non-statistical sampling method is judgmental sampling. In judgmental sampling, the person doing the sample uses his/her knowledge or experience to select the items to be sampled.