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Banking and Finance Project Semester 6 Retail Banking PDF
Banking and Finance Project Semester 6 Retail Banking PDF
Banking and Finance Project Semester 6 Retail Banking PDF
With reference to
THE NASHIK MERCHANTS CO-OPERATIVE BANK LTD, BHAGUR
Project Report
Submitted to
SAVITRIBAI PHULE PUNE UNIVERSITY
For partial fulfilment of degree
Bachelor of Commerce
Under ‘C’ Component
Banking and Finance
Submitted by
Kardile Rushikesh Sampat
TY B.COM
Division: G
Roll No.: 678
Guided By:
Dr. Mrs. Yogini Dixit
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DECLARATION
I hereby declare that this project “A Study of Retail Banking Services with
is based on actual work carried out by me as per the project norms. I have collected the
necessary data and information from the concerned relevant and genuine business
professional and users. I have validated all the data and carried out further analysis,
interpretation and other necessary processes needed to obtain results. I have cited the
Seat No –
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ACKNOWLEDGEMENT
I greatly appreciate the motivation and understanding extended for the project work, by
Mr. Bharat P Kothwade and the staff of the surveyed business unit / Bank, who
responded promptly and enthusiastically to my requests for frank comments despite their
congested schedules. I am indebted to all of them, who did the best to bring
improvements through their suggestions.
I am very much thankful to Dr. Mrs. Yogini Dixit for her encouragement and guidance
for this project work. It would not have been possible for me to complete this work
without her suggestion on every part of this work.
I acknowledge the authors, whose works gave me insight and information related to this
subject.
I am thankful to Library staff and administrative staff of the BYK College who, directly,
or indirectly, have all been helpful in one way or another.
I thank my father and mother who encouraged me to extend my reach with their help and
support, I have been able to complete this work.
Date: Signature
Kardile Rushikesh Sampat
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University Exam Seat No.
Date:
CERTIFICATE
This is to certify that Mr. Kardile Rushikesh Sampat studying in TY B.Com with subject
Banking and Finance in B.Y.K (Sinnar) College of Commerce, Nashik, has visited our
Signature
Name:
Seal (rubber stamp) Designation:
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INDEX
C] Questionnaire 15-17
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CHAPTER NO.1
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INTRODUCTION
Retail banking is, however, quite board in nature it refers to the dealing of
commercial banks with individual customer, both on liabilities and assets sides of the
balance sheet. Fixed, Current/Saving accounts on the liabilities side and mortgages,
loans on the assets side are the more important of the products offered by banks.
Related ancillary services include depository service, debit card. Retail banking refers
to provision of banking services to individuals and small number of low value
transactions. This is in contrast to wholesale banking where the customers are large,
often multinational companies, governments and government enterprise, and the
financial institution deal in small numbers of high value transactions. The concept is
not new to banks but is now viewed as an important and attractive market segment
that offers opportunities for growth and profits. Retail banking and retail lending are
often used as synonyms but in fact, the latter is just the part of retail banking. In retail
banking all the needs of individual customers are taken care of in a well-integrated
manner.
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SELECTION OF RETAIL BANKING SERVICES TOPIC
“Retail banking is typical mass-market banking where individual customers use local
branches of larger commercial banks. Services offered include: saving and checking
accounts, mortgages, personal loans, debit cards, credit cards, and so.”
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable technology,
improved service and banking convenience. Higher penetration of technology and increase
in global literacy levels has set up the expectations of the customer higher than never before.
Increasing use of modern technology has further enhanced reach and accessibility.
The market today gives us a challenge to provide multiple and innovative contemporary
services to the customer through a consolidated window as so to ensure that the bank’s
customer gets “Uniformity and Consistency” of services delivery across time and at every
touch point across all channels. The pace of innovation is accelerating and security threat
has become prime of all electronic transactions. High-cost structure rendering mass-market
servicing is prohibitively expensive.
Present date tech-savvy bankers are now more looking at reduction in their operating costs
by adopting scalable and secure technology thereby reducing the response time to their
customers so as to improve their client base and economies of scale.
The solution lies to market demands and challenges lies in innovation of new offering with
minimum dependence on branches-a multi-channel bank and to eliminate the disadvantage
of an inadequate branch network. Generation of leads to cross sell and creating additional
revenues with utmost customer satisfaction has become focal point worldwide for the
success of a bank.
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IMPORTANCE OF RETAIL BANKING
1. Providing a secure location for cash deposits: Customers can deposit money and
other important financial items at a retail bank, which is a secure location. They entice
customers to deposit money by promising a higher rate of return and ensuring the
safety of their investment. People are therefore encouraged to put their ideal laying
cash in financial institutions in order to receive interest.
2. Providing credits for spending: These financial institutions provide credit to their
bank cards and online utility services through retail banking. They may quickly use
their money to do transactions utilising online payment systems at any moment.
Customers do not need to physically visit their branch and may access their accounts
from the comfort of their own homes.
money in the economy. A customer’s loan from one bank becomes a deposit at another
bank. This deposit is now being utilised to extend more credit to a new group of
clients. In this way, the loan and depositing cycle continues, resulting in a sufficient
amount of money in an economy.
5. Assists with Economic Revitalization: The retail bank plays an important part in the
2. To study the marketing strategy for attracting the customers to the banking
services.
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CHAPTER NO. 2
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RESEARCH METHODOLOGY
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DATA COLLECTION
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METHODS OF DATA COLLECTION
Secondary Data are the data collected by a party not related to the research
Study but collected these data for some other purpose and at different in the past.
Secondary Data is less reliable and Less Accurate as it is collected by third Party.
Secondary Data is collected from Books, Websites, Newspapers, Magazines,
Various Reports, etc.
The Secondary Data Method used for this project is Websites.
Data Collec on
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QUESTIONNAIRE
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QUESTIONNAIRE
Name:
1. Gender:
a) Male
b) Female
2. Age:
a) 18-25 years
b) 26-35 years
c) 36-49 years
d) 50-60 years
e) Above 60 years
3. Which income group do you belong?
a) Less than 3 Lakhs
b) 3 to 8 Lakhs
c) 8 to 10 Lakhs
d) Above 10 Lakh
4. Do you know about retail banking?
a) Yes
b) No
5. What are the services provided by your retail bank?(You can Tick more than one)
a) Current/Savings Account
b) Home /Car/Personal Loan
c) Fixed/Recurring Deposit Facility
d) Card Facility
e) Mobile/Internet Banking
6. Does your Retail Bank staff help while opening a new account?
a) Yes
b) No
c) Sometimes
7. Have you ever encountered any issues with your retail bank? If so, how were they
resolved?
a) Yes, issue was resolved quickly
b) Yes, issue was resolved eventually
c) Yes, issue was not resolved
d) No, never encountered any issues
8. How important are low fees and charges to you when choosing a bank?
a) Very important
b) Somewhat important
c) Neutral
d) Not very important
e) Not at all important
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9. How often do you use mobile banking apps provided by your retail bank?
a) Almost every day
b) Once or twice a week
c) More than twice a month
d) Rarely
e) Never
10. How satisfied are you with the interest rates offered by your retail bank on
deposits and loans?
a) Very satisfied
b) Somewhat satisfied
c) Neutral
d) Somewhat dissatisfied
e) Very dissatisfied
11. How often do you receive marketing or promotional messages from your
bank?
a) Almost every day
b) Once or twice a week
c) Once or twice a month
d) Rarely
e) Never
12. Have you ever considered switching to a different retail bank? If so, why?
a) Yes, better rates and fees
b) Yes, better customer service
c) Yes, better online or mobile banking services
d) No, never considered switching
13. How long have you been a customer of your current retail bank?
a) Less than a year
b) 1-3 years
c) 3-5 years
d) 5-10 years
e) More than 10 years
14. Have you ever been offered any additional services or products by your retail
bank, such as investment products or insurance?
a) Yes, and I have accepted them
b) Yes, but I have not accepted them
c) No, I have not been offered any additional services or products
15. How likely are you to recommend your retail bank to someone else?
a) Very likely
b) Somewhat likely
c) Neutral
d) Somewhat unlikely
e) Very unlikely
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BRIEF REVIEW OF LITERATURE
Bahia, K and J Nantel (2000) - The paper suggested an alternative scale for
measuring service quality in retail banking. The study developed a scale
called as Banking Service Quality Scale which contained factors like
effectiveness and assurance, access, price, tangibles, service portfolio and
reliability. This model was found to be more reliable than SERVQUAL.
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CHAPTER NO. 3
BACKGROUND OF RETAIL
BANKING
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INTRODUCTION OF A BANK
Definition of Banks:
A bank is a financial institution that accepts deposits from the public and
creates a demand deposit while simultaneously making loans. Lending
activities can be directly performed by the bank or indirectly through capital
markets.
The bank is a financial institution or corporation which deals with
money and its substitutes; it also provides other financial services. Banks
accept deposits and make loans and obtain a profit from the difference in the
interest paid to lenders (depositors) and charged to borrowers, respectively.
R.S. Sayers. Says “Banks are institutions whose debts are commonly
accepted insettlement of other people’s debts.”
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Functions of a Bank
A. Primary Functions: -
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RETAIL BANKING
Definition: - Retail Banking refers to the offering of bank services to retail customers
instead of institutional customers such as companies, corporations and/or financial
institutions.
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RETAIL BANKING PRODUCTS AND SERVICES
B. Loans: -
1. Personal Loan - The bank provides personal loans to its customers ranging from Rs.1
lakh to Rs.40 lakh at attractive interest rates. The loan tenure ranges between 12 to 60
months.
2. Home Loan - Namco Bank provides home loans to salaried and self-employed
individuals at flexible loan tenures and competitive interest rates. Not only this, but
the bank has designed various home loan schemes for those who wish to build or
purchase a house.
3. Car Loan - Namco Bank provides the best car loan schemes ranging from Rs.1 lakh
to Rs.500 lakh to its customers. Apart from this, the bank offers 100% funding
towards on road price of the vehicle for the selected cars.
4. Two-Wheeler Loan - The bank also offers two-wheeler loans to its account holders
ranging from Rs.1 lakh to Rs.25 lakh at flexible tenure up to 60 months. Namco Bank
also provides exclusive loan offers for scooters, bikes, and superbikes.
5. Loan Against Property - Namco Bank sanctions loans against properties like
residential, commercial, warehouse, industrial, and school properties for a tenure up
to 15 years. The customers can avail the loan with minimal documentation.
6. Gold Loan - Customers can avail gold loans from Namco Bank with attractive
interest rates as well as flexible repayment options. The gold loan ranges between
Rs.25,000 to Rs.50 lakh with a tenure till three years. The loan amount will be
disbursed by the bank on the same day.
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C. Deposits: -
1. Fixed Deposit - Namco Bank offers fixed deposit schemes to its account holders so
that they can maximize the surplus amount through dynamic interest rates. The fixed
deposit tenure ranges between six months to 36 months.
2. Recurring Deposit - Namco Bank has also designed recurring deposits schemes for
its customers which help them to invest a part of their earnings on a monthly basis.
The interest rate of recurring deposits varies depending on the amount and tenure.
D. Banking Services: -
1. Balance Enquiry - The account holders of Namco Bank can get the balance enquiry
facility through mobile banking, net banking, passbook, SMS banking, Automated
Teller Machine (ATM), and missed call facility.
2. Internet Banking - Namco Bank offers an internet banking facility to its customers
using which they can avail different types of services like online booking, fund
transfer, paying bills, and balance enquiry.
3. Mobile Banking - Namco Bank account holders can enjoy all the banking facilities
through mobile banking. The mobile banking facilities include balance enquiry, fund
transfer, online payment, etc.
E. Card Facility: -
1. Credit Card - Namco Bank has designed different types of credit cards which have
been introduced with the aim of providing various benefits and rewards like discount
coupons on travel, entertainment, dining, etc.
2. Debit Card - Namco Bank debit cards are featured with advanced spending and
withdrawal limits along with value added services.
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BENEFITS OF RETAIL BANKING
1. The deposits from retail customers are stable and form core deposits. Such deposits
are interest insensitive with less bargaining for additional interest. Also, they
constitute low-cost funds for the banks.
2. An effective customer relationship management helps in developing a vast and strong
customer base.
3. Retail banking also assists in increasing subsidiary businesses of the banks like
insurance, etc.
4. It contributes to the economic development and economic revival of the country,
through increased production.
5. Helps in improving the lifestyle of consumers by providing loans at affordable rate of
interest.
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STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS
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FUTURE OF RETAIL BANKING
Retail banking has significant past and glorious future over the years. Retail
banking has proved as an effective tool not only to improve the bottom lines of the
banks concerned but also to significantly contribute to the development of the
individual consumers availing the services or products in particular and to the overall
development of the society in general with the needs of the consumers ever
multiplying. There is definitely a vast scope for the furtherance of the retail banking
business.
The society is made of the individuals and the environment surrounding him. As
development takes place in the society, the needs of the people grow faster than ever.
The wealth creation and its professional management are yet another distinct
advantage the society or nation can derive from Retail Banking. The depth of the
untapped resources in the retail segment is not yet measured. These resources could
be channelized for nation building.
On the whole, looking ahead, the prospects of retail banking are brighter than ever
and the bankers have to give continued thrust to this area of banking. Thus, with the
consumers ever multiplying needs there is definitely a vast scope for the furtherance of
the retail banking business. Operationally, there is a possibility that technology go
beyond nearly reducing the cost & improving the quality of current products. It may
prove possible, even profitable, to combine in new ways.
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CHAPTER NO. 04
DATA ANALYSIS
AND
INTERPRETATIONS
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DATA ANALYSIS AND INTERPRETATIONS
Data analysis is the process of systematically examining and interpreting data using
statistical and analytical methods to extract meaningful insights and knowledge from raw
data. The purpose of data analysis is to make sense of large amounts of data, uncover
patterns, trends, and relationships, and use this information to support decision-making.
Data interpretation, on the other hand, is the process of making sense of the results
of data analysis. It involves taking the insights and knowledge gained from analysing data
and using them to draw conclusions and make decisions. Data interpretation requires a deep
understanding of the context in which the data was collected, as well as an ability to apply
critical thinking skills to make informed judgments.
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1. Gender: Table No.1
Gender No. of Respondents Percentage
Male 18 60%
Female 12 40%
Total 30 100%
Chart No.1
Gender
40% Male
60%
Female
Interpretation:
From the above pie chart, we find that 60% are Male and 40% are Female.
18-25 years
26-35 years
36-49 years
50-60 years
Above 60 years
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Interpretation:
From the above pie chart, we find that 10% of the respondents fall in the age group of
18-25years, 30% fall in the age group of 26-35years, and 20% fall in the age group of 36-
49 years, and 30% respondent’s age are 50-60 years, and 10% respondents age are above
60 years.
Income Group
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Chart No.4
Retail Banking
Yes
No
Interpretation:
From the above pie chart, we see that 70% know about retail banking and 30% don’t
know about retail banking.
Chart No.5
Respondents Respondents
31
30
29
28
27
26
25
24
23
22
Current/Savings Home/Car/Personal Fixed/recurring Card facility Mobile/internet
account Loan deposits facility
Interpretation:
From the above Column chart, we see that 30 respondents have current/savings account,
30 respondents have home/car/personal loan, 25 respondents have fixed/recurring deposits,
30 respondents have card facility, 26 respondents have mobile/internet banking services in
their retail banks.
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6. Does your Retail Bank staff help while opening a new account:
Table No.6
Options No. of Respondents Percentage
Yes 21 70%
No 6 20%
Sometimes 3 10%
Total 30 100%
Chart No.6
Staff Help
Yes No Sometimes
Interpretation:
From the above pie chart, we see that 70% agrees that retail bank staff helps, 20% says
that retail bank staff doesn’t help and 10% says in some cases retail bank staff helps.
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Chart No.7
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9. Usage of mobile banking apps by the retail bank:
Table No.9
Options No. of Percentage
Respondents
Almost every day 12 40%
Once or twice a 9 30%
week
More than twice a 6 20%
month
Rarely 3 10%
Never 0 0%
Total 30 100%
Chart No.9
Usage of Mobile banking
Interpretation:
From the above pie chart, we can see that 40% uses mobile banking app almost every
day, 30% uses mobile banking app once or twice a week, 20% uses mobile banking app
more than twice a month and 10% uses mobile banking app rarely.
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Chart No.10
Satisfaction of Interest rates on deposits
and loans
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12. Switching to a different retail bank:
Table No.12
Options No. of Respondents Percentage
Yes, better rates and fees 9 30%
Yes, better customer 6 20%
service
Yes, online/mobile 3 10%
banking service
Never considered 12 40%
switching
Total 30 100%
Chart No.12
Switching to a different retail bank
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Chart No.13
Duration of customer having account in
their retail bank
Interpretation:
From the above pie chart, we can see that 50% very likely recommend their retail bank to
others, 20% somewhat likely recommend their retail bank to others, 20% remain neutral
for recommending their retail bank to others and 10% somewhat unlikely recommend their
retail bank to others.
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CHAPTER NO. 05
CONCLUSIONS
AND
SUGGESSTIONS
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FINDINGS
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CONCLUSION
Retail Banking refers to the offering of bank services to retail customers instead of
institutional customers such as companies, corporations and/or financial institutions.
Nashik Merchant Co-operative Bank Ltd, Bhagur, is a cooperative bank based in
Bhagur, a town in the Nashik district of Maharashtra, India. The bank has been serving
its customers since 1964 and provides a range of retail banking services, including
deposits, loans, and other financial products.
The bank has established a strong presence in the local community and is known for
its customer-centric approach. Its focus on meeting the financial needs of the local
community has helped it build a loyal customer base.
However, like all banks, Nashik Merchant Co-operative Bank Ltd, Bhagur, faces
challenges, including increased competition, regulatory pressures, and changing
customer expectations.
To remain competitive and continue to serve its customers effectively, the bank must
adapt to changing market conditions and continue to innovate in the products and
services it offers.
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SUGGESTIONS
Technology can help the bank to improve its services, reduce costs, and increase
efficiency. The bank should consider investing in modern banking technology, such
as online banking, mobile banking, and digital payment systems, to provide customers
with a more convenient banking experience.
The bank should consider expanding its product offerings to meet the changing needs
of its customers. For example, it could introduce new loan products, savings schemes,
or investment products to attract new customers and retain existing ones.
Customer service is a key differentiator in the banking industry. The bank should
focus on providing excellent customer service to its customers. This can include
training staff to be more attentive to customers' needs, providing personalized service,
and being responsive to customer feedback.
The bank should invest in marketing and branding to improve its visibility and attract
new customers. This can include advertising, social media, and other promotional
activities.
The bank should engage with the local community by participating in local events
and supporting local causes. This can help to build brand loyalty and enhance the
bank's reputation in the community.
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