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1 INTRODUCTION TO THE STUDY

THEORETICAL FRAMEWORK: Emotional Intelligence is "the capacity for recognizing our own feelings and those of others, for motivating ourselves and for managing emotions effectively in others and ourselves." Emotional Intelligence (EI), often measured as an Emotional Intelligence Quotient (EQ), describes an ability, capacity, skill or (in the case of the trait EI model) a selfperceived ability, to identify, assess, and manage the emotions of one's self, of others, and of groups. It is a relatively new area of psychological research. The definition of EI is constantly changing. Origins of the concept The most distant roots of Emotional intelligence can be traced back to Darwins early work on the importance of emotional expression for survival and second adaptation. In the 1900s, even though traditional definitions of intelligence emphasized cognitive aspects such as memory and problem-solving, several influential researchers in the intelligence field of study had begun to recognize the importance of the non-cognitive aspects. For instance, as early as 1920, E. L. Thorndike, used the term social intelligence to describe the skill of understanding and managing other people. Similarly, in 1940 David Wechsler described the influence of non-intellective factors on intelligent behaviour, and further argued that our models of intelligence would not be complete until we can adequately describe these factors. In 1983, Howard Gardner's Frames of Mind: The Theory of Multiple Intelligences introduced the idea of multiple Intelligences which included both Interpersonal intelligence (the capacity to understand the intentions, motivations and desires of other people) and Intrapersonal intelligence (the capacity to understand oneself, to appreciate one's feelings, fears and motivations). In Gardner's view, traditional types of intelligence, such as IQ, fail to fully explain cognitive ability. Thus, even though the names given to the concept varied, there was a common belief that traditional definitions of intelligence are lacking in ability to fully explain performance outcomes. As a result of the growing acknowledgement of professionals for the importance and relevance of emotions to work outcomes, the research on the topic continued to gain 1

momentum, but it wasnt until the publication of Daniel Goleman's best seller Emotional Intelligence: Why It Can Matter More Than IQ that the term became widely popularized. Nancy Gibbs' 1995 Time magazine article highlighted Goleman's book and was the first in a string of mainstream media interest in EI. Thereafter, articles on EI began to appear with increasing frequency across a wide range of academic and popular outlets.

Fig. 1.1 Components of EI Defining emotional intelligence There are a lot of arguments about the definition of EI, arguments that regard both terminology and operationalizations. One attempt toward a definition was made by Peter Salovey and John D. Mayer (1990) who defined EI as the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions. Despite this early definition, there has been confusion regarding the exact meaning of this construct. The definitions are so varied, and the field is growing so rapidly, that

researchers are constantly amending even their own definitions of the construct. Up to the present day, there are three main models of EI: Ability EI models Mixed models of EI Trait EI model 1.1.1 The ability-based model Salovey and Mayer's conception of EI strives to define EI within the confines of the standard criteria for a new intelligence. Following their continuing research, their initial definition of EI was revised to: "The ability to perceive emotion, integrate emotion to facilitate thought, understand emotions and to regulate emotions to promote personal growth." The ability based model views emotions as useful sources of information that help one to make sense of and navigate the social environment. The model proposes that individuals vary in their ability to process information of an emotional nature and in their ability to relate emotional processing to a wider cognition. This ability is seen to manifest itself in certain adaptive behaviors. The model proposes that EI includes 4 types of abilities: 1.Perceiving emotions the ability to detect and decipher emotions in faces, pictures, voices, and cultural artifacts- including the ability to identify ones own emotions. Perceiving emotions represents a basic aspect of emotional intelligence, as it makes all other processing of emotional information possible. 2.Using emotions the ability to harness emotions to facilitate various cognitive activities, such as thinking and problem solving. The emotionally intelligent person can capitalize fully upon his or her changing moods in order to best fit the task at hand. 3.Understanding emotions the ability to comprehend emotion language and to appreciate complicated relationships among emotions. 4.Managing emotions the ability to regulate emotions in both ourselves and in others. Measurement of the ability-based model Different models of EI have led to the development of various instruments for the assessment of the construct. While some of these measures may overlap, most researchers agree that they tap slightly different constructs. The current measure of Mayer and Saloveys model of EI, the Mayer-Salovey-Caruso Emotional Intelligence 3

Test (MSCEIT) is based on a series of emotion-based problem-solving items. Consistent with the model's claim of EI as a type of intelligence, the test is modeled on ability-based IQ tests. By testing a persons abilities on each of the four branches of emotional intelligence, it generates scores for each of the branches as well as a total score. Central to the four-branch model is the idea that EI requires attunement to social norms. Therefore, the MSCEIT is scored in a consensus fashion, with higher scores indicating higher overlap between an individuals answers and those provided by a worldwide sample of respondents. The MSCEIT can also be expert-scored, so that the amount of overlap is calculated between an individuals answers and those provided by a group of 21 emotion researchers. Although promoted as an ability test, the MSCEIT is most unlike standard IQ tests in that its items do not have objectively correct responses. Among other problems, the consensus scoring criterion means that it is impossible to create items (questions) that only a minority of respondents can solve, because, by definition, responses are deemed emotionally 'intelligent' only if the majority of the sample has endorsed them. This and other similar problems have led cognitive ability experts to question the definition of EI as a genuine intelligence. 1.1.2 Mixed models of EI The Emotional Competencies (Goleman) model The model introduced by Daniel Goleman four main EI constructs: 1.Self-awareness the ability to read one's emotions and recognize their impact while using gut feelings to guide decisions. 2.Self-management involves controlling one's emotions and impulses and adapting to changing circumstances. 3.Social awareness the ability to sense, understand, and react to others' emotions while comprehending social networks. 4.Relationship management the ability to inspire, influence, and develop others while managing conflict. focuses on EI as a wide array of competencies and skills that drive leadership performance. Goleman's model outlines

Fig.1.2 Different dimensions and their sub-parts Goleman includes a set of emotional competencies within each construct of EI. Emotional competencies are not innate talents, but rather learned capabilities that must be worked on and developed to achieve outstanding performance. Goleman posits that individuals are born with a general emotional intelligence that determines their potential for learning emotional competencies. Goleman's model of EI has been criticized in the research literature as mere pop-psychology. Measurement of the Emotional Competencies (Goleman) model Two measurement tools are based on the Goleman model: 1) The Emotional Competency Inventory (ECI), which was created in 1999 and the Emotional and Social Competency Inventory (ESCI), which was created in 2007. 2) The Emotional Intelligence Appraisal, which was created in 2001 and which can be taken as a self-report or 360-degree assessment. The Bar-On model of Emotional-Social Intelligence (ESI) Bar-On (2006) developed one of the first measures of EI that used the term Emotion Quotient. He defines emotional intelligence as being concerned with effectively understanding oneself and others, relating well to people, and adapting to and coping with the immediate surroundings to be more successful in dealing with environmental demands. Bar-On posits that EI develops over time and that it can be improved 5

through training, programming, and therapy. Bar-On hypothesizes that those individuals with higher than average E.Q.s are in general more successful in meeting environmental demands and pressures. He also notes that a deficiency in EI can mean a lack of success and the existence of emotional problems. Problems in coping with ones environment are thought, by Bar-On, to be especially common among those individuals lacking in the subscales of reality testing, problem solving, stress tolerance, and impulse control. In general, Bar-On considers emotional intelligence and cognitive intelligence to contribute equally to a persons general intelligence, which then offers an indication of ones potential to succeed in life. However, doubts have been expressed about this model in the research literature (in particular about the validity of self-report as an index of emotional intelligence) and in scientific settings . While other approaches have been proposed this approach is still the most widely used worlwide and has the most published scientific papers supporting it. Measurement of the ESI Model The Bar-On Emotion Quotient Inventory (EQ-i), is a self-report measure of EI developed as a measure of emotionally and socially competent behavior that provides an estimate of one's emotional and social intelligence. The EQ-i is not meant to measure personality traits or cognitive capacity, but rather the mental ability to be successful in dealing with environmental demands and pressures. One hundred and thirty three items (questions or factors) are used to obtain a Total EQ (Total Emotional Quotient) and to produce five composite scale scores, corresponding to the five main components of the Bar-On model. A limitation of this model is that it claims to measure some kind of ability through self-report items. The EQ-i has been found to be highly susceptible to faking. 1.1.3 The Trait EI model Petrides proposed a conceptual distinction between the ability based model and a trait based model of EI. Trait EI is "a constellation of emotion-related self-perceptions located at the lower levels of personality". In lay terms, trait EI refers to an individual's self-perceptions of their emotional abilities. This definition of EI encompasses behavioral dispositions and self perceived abilities and is measured by self report, as opposed to the ability based model which refers to actual abilities, which have proven highly resistant to scientific measurement. Trait EI should be investigated within a personality framework. An alternative label for the same construct is trait emotional self-efficacy. 6

The trait EI model is general and subsumes the Goleman and Bar-On models discussed above. Petrides et al. are major critics of the ability-based model and the MSCEIT arguing that they are based on "psychometrically meaningless" scoring procedures. The conceptualization of EI as a personality trait leads to a construct that lies outside the taxonomy of human cognitive ability. This is an important distinction in as much as it bears directly on the operationalization of the construct and the theories and hypotheses that are formulated about it. Measurement of the Trait EI model There are many self-report measures of EI, including the EQi, the Swinburne University Emotional Intelligence Test (SUEIT),the Schutte Self-Report Emotional Intelligence Test (SSEIT), a measure by Tett, Fox, and Wang (2005). From the perspective of the trait EI model, none of these assess intelligence, abilities, or skills (as their authors often claim), but rather, they are limited measures of trait emotional intelligence (Petrides, Furnham, & Mavroveli, 2007). The Trait Emotional Intelligence Questionnaire (TEIQue) is an open-access measure that was specifically designed to measure the construct comprehensively and is currently available in 15 languages.The TEIQue provides an operationalization for Petrides and colleagues' model that conceptualizes EI in terms of personality. The test encompasses 15 subscales organized under four factors: Well-Being, Self-Control, Emotionality, and Sociability. The psychometric properties of the TEIQue were investigated in a recent study on a French-Speaking Population, where it was reported that TEIQue scores were globally normally distributed and reliable. The researchers also found TEIQue scores were unrelated to nonverbal reasoning (Ravens matrices), which they interpreted as support for the personality trait view of EI (as opposed to a form of intelligence). As expected, TEIQue scores were positively related to some of the Big Five personality traits (extraversion, agreeableness, openness, conscientiousness) as well as inversely related to others(alexithymia, neuroticism). Criticism of the theoretical foundation of EI EI is too broadly defined and the definitions are unstable One of the arguments against the theoretical soundness of the concept suggests that the constant changing and broadening of its definition- which has come to encompass many unrelated elements had rendered it an unintelligible concept: 7

"What is the common or integrating element in a concept that includes: introspection about emotions, Emotional expression, non-verbal communication with others, empathy, self-regulation, planning, creative thinking and the direction of attention? There is none." Other critics mention that without some stabilization of the concepts and the measurement instruments, meta-analyses are difficult to implement , and the theory coherence is likely to be adversely impacted by this instability. EI cannot be recognized as a form of intelligence Goleman's early work has been criticized for assuming from the beginning that EI is a type of intelligence. Eysenck (2000) writes that Goleman's description of EI contains assumptions about intelligence in general, and that it even runs contrary to what researchers have come to expect when studying types of intelligence: "Goleman exemplifies more clearly than most the fundamental absurdity of the tendency to class almost any type of behaviour as an 'intelligence'... If these five 'abilities' define 'emotional intelligence', we would expect some evidence that they are highly correlated; Goleman admits that they might be quite uncorrelated, and in any case if we cannot measure them, how do we know they are related? So the whole theory is built on quicksand: there is no sound scientific basis". Similarly, Locke (2005) claims that the concept of EI in itself is a misinterpretation of the intelligence construct, and he offers an alternative interpretation: it is not another form or type of intelligence, but intelligence--the ability to grasp abstractions--applied to a particular life domain: emotions. He suggests the concept should be re-labeled and referred to as a skill. EI has no substantial predictive value Landy (2005) has claimed that the few incremental validity studies conducted on EI have demonstrated that it adds little or nothing to the explanation or prediction of some common outcomes (most notably academic and work success). Landy proposes that the reason some studies have found a small increase in predictive validity is in fact a methodological fallacy incomplete consideration of alternative explanations: "EI is compared and contrasted with a measure of abstract intelligence but not with a personality measure, or with a personality measure but not with a measure of academic intelligence." Landy (2005) In accordance with this suggestion, other researchers have raised concerns about the extent to which self-report EI measures correlate with established personality 8

dimensions. Generally, self-report EI measures and personality measures have been said to converge because they both purport to measure traits, and because they are both measured in the self-report form. Specifically, there appear to be two dimensions of the Big Five that stand out as most related to self-report EI neuroticism and extraversion. In particular, neuroticism has been said to relate to negative emotionality and anxiety. Intuitively, individuals scoring high on neuroticism are likely to score low on self-report EI measures. The interpretations of the correlations between self-report EI and personality have been varied and inconsistent. Some researchers have asserted that correlations in the . 40 range constitute outright construct redundancy, while others have suggested that self-report EI is a personality trait in itself. Criticism on measurement issues Ability based measures are measuring conformity, not ability One criticism of the works of Mayer and Salovey comes from a study by Roberts et.al. (2001), which suggests that the EI, as measured by the MSCEIT, may only be measuring conformity. This argument is rooted in the MSCEIT's use of consensusbased assessment, and in the fact that scores on the MSCEIT are negatively distributed (meaning that its scores differentiate between people with low EI better than people with high EI). Ability based measures are measuring knowledge (not actual ability) Further criticism has been offered by Brody (2004),[29] who claimed that unlike tests of cognitive ability, the MSCEIT "tests knowledge of emotions but not necessarily the ability to perform tasks that are related to the knowledge that is assessed". The main argument is that even though someone knows how he should behave in an emotionally laden situation, it doesnt necessarily follow that he could actually carry out the reported behavior.More formally termed socially desirable responding (SDR), faking good is defined as a response pattern in which test-takers systematically represent themselves with an excessive positive bias (Paulhus, 2002). This bias has long been known to contaminate responses on personality inventories acting as a mediator of the relationships between self-report measures. It has been suggested that responding in a desirable way is a response set, which is a situational and temporary response pattern. This is contrasted with a response style, which is a more long-term trait-like quality. Considering the contexts some self-report

EI inventories are used in (e.g., employment settings), the problems of response sets in high-stakes scenarios become clear. There are a few methods to prevent socially desirable responding on behavior inventories. Some researchers believe it is necessary to warn test-takers not to fake good before taking a personality test (e.g., McFarland, 2003). Some inventories use validity scales in order to determine the likelihood or consistency of the responses across all items. Claims for the predictive power of EI are too extreme Landy distinguishes between the 'commercial wing' and 'the academic wing' of the EI movement, basing this distinction on the alleged predictive power of EI as seen by the two currents. According to Landy, the former makes expansive claims on the applied value of EI, while the later is trying to warn users against these claims. As an example. Goleman (1998) asserts that "the most effective leaders are alike in one crucial way: they all have a high degree of what has come to be known as emotional intelligence. ...emotional intelligence is the sine qua non of leadership". In contrast, Mayer (1999) cautions "the popular literatures implicationthat highly emotionally intelligent people possess an unqualified advantage in lifeappears overly enthusiastic at present and unsubstantiated by reasonable scientific standards." Landy further reinforces this argument by noting that the data upon which these claims are based are held in proprietary databases', which means they are unavailable to independent researchers for reanalysis, replication, or verification. Thus, the credibility of the findings cannot be substantiated in a scientific manner, unless those datasets are made public and available for independent analysis. EI, IQ and job performance Research of EI and job performance show mixed results: a positive relation has been found in some of the studies, in others there was no relation or an inconsistent one. This led researchers Cote and Miners (2006) to offer a compensatory model between EI and IQ, that posits that the association between EI and job performance becomes more positive as cognitive intelligence decreases, an idea first proposed in the context of academic performance (Petrides, Frederickson, & Furnham, 2004). The results of the former study supported the compensatory model: employees with low IQ get higher task performance and organizational citizenship behavior directed at the organization, the higher their EI.

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Fig.1.3 the pyramid structure of EI Stress is a feeling of emotional or physical tension Emotional stress usually occurs when people consider situations difficult or unable to manage. Different people consider different situations as stressful. Physical stress refers to a physical reaction of the body to various triggers. The pain experienced after surgery is an example of physical stress. Stress management involves controlling and reducing the tension that occurs in stressful situations by making emotional and physical changes. 1.1.4 Assessing stress Attitude: A person's attitude can influence whether or not a situation or emotion is stressful. A person with a negative attitude will often report more stress than would someone with a positive attitude. 11

Physical well-being: A poor diet puts the body in a state of physical stress and weakens the immune system. As a result, the person can be more likely to get infections. A poor diet can mean unhealthy food choices, not eating enough, or not eating on a normal schedule. This can cause a person to not get enough nutrients.This form of physical stress also decreases the ability to deal with emotional stress, because not getting the right nutrition may affect the way the brain processes information.Physical activity: Not getting enough physical activity can put the body in a stressful state. Physical activity has many benefits. A regular physical activity program can help decrease depression, if it exists. It also improves the feeling of wellbeing.Support systems: Most everyone needs someone in their life they can rely on when they are having a hard time. Having little or no support makes stressful situations even more difficult to deal with relaxation: People with no outside interests, hobbies, or ways to relax may be unable to handle stressful situations because they have no outlet for their stress. An individual stress management program Make an effort to stop negative thoughts Plan some fun Refocus the negative into the positive Take a break Think positively Social support: Make an effort to interact socially with people. Even though you feel stressed, you will be glad to meet your friends, if only to get your mind off of things. Nurture yourself and others. Reach out to other people. Relaxation: -Learn about and try using one or more of the many relaxation techniques, such as guided imagery, listening to music, or practicing yoga or meditation. One or more of these techniques should work for you. -Listen to your body. -Take a mini retreat. -Take time for personal interests and hobbies. 12

Fig. 1.4 the dimensions of emotional intelligence

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1.2 OBJECTIVE, NEED, SCOPE & METHODOLOGY 1.2.1 OBJECTIVES OF THE STUDY: 1) To study the emotional quotient level of the employees in the selected private and public sector banks and test these hypotheses. HO= There is no significant difference in the emotional quotient level of the respondents of selected private and public banks. H1= There is significant difference in the emotional quotient level of the respondents of selected private and public banks . HO= There is no significant difference in the dimensions of emotional intelligence of the respondents of selected private and public banks. H1= There is significant difference in the dimensions of emotional intelligence of the respondents of selected private and public banks. 2) To study pattern of work stress amongst the employees of the selected private and public sector banks and test these hypotheses. HO= There is no significant difference in the stress level of the respondents of selected private and public banks. H1= There is significant difference in the stress level of the respondents of selected private and public banks. 3) To analyze the relationship between emotional intelligence and stress level of employees of the selected private and public sector banks. 4) To study whether work stress experienced by employees varies with:(a) Gender HO= There is no significant difference in emotional quotient level with difference in gender of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in gender of the respondents of selected public and private banks.

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(b) Age HO= There is no significant difference in emotional quotient level with difference in age of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in age of the respondents of selected public and private banks. (c) Cadre HO= There is no significant difference in emotional quotient level with difference in cadre of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in cadre of the respondents of selected public and private banks. (d) Educational qualification HO= There is no significant difference in emotional quotient level with difference in qualification of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in qualification of the respondents of selected public and private banks. (e) Income HO= There is no significant difference in emotional quotient level with difference in income of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in income of the respondents of selected public and private banks. (f) Tenure HO= There is no significant difference in emotional quotient level with difference in tenure of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in tenure of the respondents of selected public and private banks. 5) To study whether emotional quotient level of the employees varies with:(a) Gender HO= There is no significant difference in stress level with difference in gender of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in gender of the respondents of selected public and private banks. (b) Age HO= There is no significant difference in stress level with difference in age of the respondents of selected public and private banks. 15

H1= There is significant difference in stress level with difference in age of the respondents of selected public and private banks. (c) Cadre HO= There is no significant difference in stress level with difference in cadre of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in cadre of the respondents of selected public and private banks. (d) Educational qualification HO= There is no significant difference in stress level with difference in qualification of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in qualification of the respondents of selected public and private banks. (e) Tenure HO= There is no significant difference in stress level with difference in tenure of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in tenure of the respondents of selected public and private banks.

1.2.2 NEED OF THE STUDY:

Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EQ principles provide a new way to understand and assess people's behaviours, management styles, attitudes, interpersonal skills, and potential. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. At the individual level, it has been said to relate to academic achievement, work performance, our ability to communicate effectively, solve everyday problems, build meaningful interpersonal relationships, and even our ability to make moral decisions. Given that EI has the potential to increase our understanding of how individuals behave and adapt to their social environment, it is an important topic for study.

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1.2.3 SCOPE OF THE STUDY:

The study will be limited to the employees of selected banking sector companies that are HDFC, Standard Chartered, Punjab National Bank and Oriental Bank of Commerce. The study is limited to a specific region that is jalandhar region. The study is confined to find the emotional quotient level and stress level in the selected banking sector companies that are HDFC, Standard Chartered, Punjab National Bank and Oriental Bank of Commerce.

1.2.4 RESEARCH METHODOLOGY:

TYPE OF RESEARCH It is Descriptive study because I have done a systematized data collection to arrive at conclusions that can be taken for improvement. It is Quantitative study because it is done to gain quantitative understanding with a small sample and to analyze it thoroughly. DATA COLLECTION: 1. Primary data: It is obtained by going to the appropriate organizations in the banking sector companies as per my requirements and the companies taken are HDFC, Standard Chartered, Punjab National Bank and Oriental Bank of Commerce. Data will be collected through the means of Standardized Questionnaires. All the questionnaires will be filled by the respondents of jalandhar region. 2. Secondary data: Secondary data is collected through authorized Websites, Journals, magazines & Research papers. QUESTIONNAIRE: The questionnaire is structured and non-disguised. It constitutes of 33 questions considering 2 main parameters which are emotional quotient level have rating from 15 which starts from strongly disagree to strongly agree and stress level have rating from 1-5 starts from I never feel this way to I always feel this way.

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SAMPLE DESIGN: Sample size: 100 out of which 25 employees each of HDFC, Standard Chartered, Punjab National Bank and Oriental Bank of Commerce. Sampling Unit: Employees of different age, sex, cadre, tenure and income are taken from HDFC, Standard Chartered, Punjab National Bank and Oriental Bank of Commerce. Area covered: Jalandhar region Sampling technique: Non probability sampling i.e. convenience sampling Data analysis technique: The technique applied is parametric test (correlation) in case of testing the hypothesis of testing variable, emotional quotient level and nonparametric test in case of testing the hypothesis of testing variable, stress level.

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2.1 INTRODUCTION TO THE INDUSTRY 2.1.1 OVERVIEW OF THE INDUSTRY

HISTORY 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. 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 Nationalisation 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. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase I 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.

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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 mobilisation 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 nationalised Imperial Bank of India with extensive banking facilities on a large scale specially 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 nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalised. Second phase of nationalisation 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:

1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 20

1969 : Nationalisation of 14 major banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation 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%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III 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 liberalisation 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.The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure. On the other hand the Private Sector Banks in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India. Private sector banking in India received a filip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalisation of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. 21

Private banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become nore competitive. Major Private Banks in India are:

Bank of Rajasthan Bharat Overseas Bank Catholic Syrian Bank Centurion Bank of Punjab Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank SBI Commercial and International Bank South Indian Bank United Western Bank UTI Bank YES Bank

2.1.2 PROFILE AND HISTORY OF HDFC BANK

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first 22

banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank was incorporated with the name 'HDFC Bank Limited', with its registered office in Mumbai. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India. Amalgamations In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co. / Times Group). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank. With this, the Deposits of the merged entity became Rs. 1,22,000 crore, while the Advances were Rs. 89,000 crore and Balance Sheet size was Rs. 1,63,000 crore. Tech-Savvy HDFC Bank has always prided itself on a highly automated environment, be it in terms of information technology or communication systems. All the braches of the bank boast of online connectivity with the other, ensuring speedy funds transfer for the clients. At the same time, the bank's branch network and Automated Teller Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its up-to-date technology, along with market position and expertise, to create a competitive advantage and build market share. Its shares find a listing on the Stock Exchange, Mumbai and National Stock Exchange, while its American Depository Shares are listed on the New York Stock Exchange (NYSE), under the symbol 'HDB' 2.1.3 RECENT ACHIEVEMENTS AND MILESTONES OF HDFC HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". They realized that only a single-minded focus on product quality and service excellence would help them get there. Today, they are proud to say that we are well on our way towards that goal.

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It is extremely gratifying that their efforts towards providing customer convenience have been appreciated both nationally and internationally.

Following are the list of awards they got in different years: 2009 Asian Banker Best Retail Bank in India Award 2009 2008 2007

Best Bank and Best Cash Management Bank' - Finance Asia Country Awards for Achievement 2008 CNN-IBN - 'Indian of the Year (Business)' Nasscom IT User Award 2008 - Best IT Adoption in the Banking Sector' Business India - 'Best Bank 2008' Forbes Asia - Fab 50 companies in Asia Pacific Asian Banker Excellence in Retail Financial Services - Best Retail Bank 2008 Asiamoney - Best local Cash Management Bank Award voted by Corporates Microsoft & Indian Express Group - Security Strategist Award 2008 World Trade Center Award of honour - For outstanding contribution to international trade services. Business Today-Monitor Group survey - One of India's "Most Innovative Companies" Financial Express-Ernst & Young Award - Best Bank Award in the Private Sector category Global HR Excellence Awards - Asia Pacific HRM Congress: - 'Employer Brand of the Year 2007 -2008' Award - First Runner up, & many more Business Today - 'Best Bank' Award

Dun & Bradstreet American Express Corporate Best Bank Award 2007 'Corporate Best Bank' Award

24

The Bombay Stock Exchange and Nasscom Foundation's Business for Social Responsibility Awards 2007- 'Best Corporate Social Responsibility Practice' Award

Outlook Money & NDTV Profit - Best Bank Award in the Private sector category.

The Asian Banker Excellence in Retail Financial Services Awards - Best Retail Bank in India

Asian Banker - Our Managing Director Aditya Puri wins the Leadership Achievement Award for India

2.1.4 PRODUCT RANGE OF THE HDFC

Personal Banking

Savings Accounts Salary Accounts Current Accounts Fixed Deposits Demat Account Safe Deposit Lockers Loans Credit Cards Debit Cards Prepaid Cards Investments & Insurance Forex Services Payment Services NetBanking InstaAlerts MobileBanking InstaQuery ATM PhoneBanking 25

NRI Banking

Rupee Savings Accounts Rupee Current Accounts Rupee Fixed Deposits Foreign Currency Deposits Accounts for Returning Indians Quickremit (North America, UK, Europe, Southeast Asia) IndiaLink (Middle East, Africa) Cheque LockBox Telegraphic / Wire Transfer Funds Transfer through Cheques / DDs / TCs Mutual Funds Private Banking Portfolio Investment Schemes Loans Payment Services NetBanking InstaAlerts MobileBanking InstaQuery ATM PhoneBanking

2.1.5 FINANCIAL PERFORMANCE OF HDFC

Financial Performance The financial performance during the fiscal year 2007-08 remained healthy with total net revenues (net interest income plus other income) increasing by 50.7% to Rs. 7,511.0 crores from Rs.4,984.7 crores in 2006-07. The revenue growth was driven principally by an increase in net interest income. Net interest income grew by 50.7% primarily due to increase in the average balance sheet size by 39.8% and an increase in net interest margin from 4.0% to around 4.4%. The key driver in volumes was growth in advances. Margin expansion was contributed by increase in yields across all 26

products partially offset by increase in time deposit costs. The other income (noninterest revenue) increased by 50.6% to Rs. 2,283.2 crores primarily due to fees and commissions, profit/(loss) on revaluation / sale of investment and income from foreign exchange and derivatives income. In 2007-08, commission income increased by 32.7% to Rs. 1,714.5 crores with the main drivers being commission from distribution of third party mutual funds and insurance, fees on debit/credit cards, transactional charges/fees on deposit accounts, processing fees of retail assets and cards, and fees from trade products. The Bank earned a profit on sale / revaluation of investments of Rs. 241.8 crores during the year. Foreign exchange and derivatives revenues grew from Rs. 280.3 crores to Rs. 319.8 crores which largely related to customer transactions. Of this, 80% of the revenues came from plain vanilla foreign exchange transactions. Operating (non-interest) expenses increased from Rs. 2,420.8 crores in 2006-07 to Rs. 3,745.6 crores in 2007-08, due to higher infrastructure and staffing expenses in relation to the expansion in the branch network, (including branches which were in the process of being set up and would be commissioned in the June 2008 quarter) and growth in the retail loan and credit card businesses. Operating cost to net revenues increased to 49.9%, from 48.6% in the corresponding year. Staff expenses accounted for 34.7% of non-interest expenses in 2007-08 as against 32.1% in 2006-07, due to an increase in staff strength and increase in average salary levels. A large portion of the increase has been in the direct sales infrastructure which stepped the pace of liability and card account acquisitions substantially during the year. Loan loss provisions and provision for standard assets increased from Rs. 861.0 crores to Rs. 1,216.0 crores in 2007-08 which was broadly in line with the increase in retail loans and the product mix across various loan products. The Bank also provided Rs. 264.4 -crores as contingent provisions for tax, legal and other contingencies. Net profit increased by 39.3% from Rs. 1,141.5 crores in 2006-07 to Rs.1,590.2 crores in 2007-08. Return on average net worth was lower at 16.1% as against the previous year of 19.4% due to expansion of networth as a result of infusion of over Rs. 3,800 crores of capital during the year. The Banks basic earning per share increased from Rs.36.3 to Rs.46.2 per equity share. During 2007-08, the Banks total balance sheet size increased by 46.0% to Rs. 133,177 crores. Total Deposits increased from Rs. 68,298 crores (as of March 31, 2007) to Rs. 100,769 crores (as of March 31, 2008). 27

With Savings account deposits at Rs. 26,154 crores and current account deposits at Rs. 28,760 crores, demand (CASA) deposits were around 54.5% of total deposits as of March 31, 2008. During 2007-08, gross advances grew by 35.8 % to Rs. 67,582 crores. This was driven by a growth of 38.8% in retail advances to Rs. 39,316 crores, and an increase of 31.8% in wholesale advances to Rs.28,266 crores

2.1.6 FUTURE PROSPECTS/ PLANS OF HDFC

The financial system in India has witnessed considerably less turmoil and volatility than that in advanced economies. Given this scenario, domestic corporates are more likely to turn to local sources of funding. Cyclical slowdown is unlikely to impact segments of the economy such as agriculture where a structural shift is under way. The rural economy has been the greater focus of government policy in recent years, and significant opportunities lie for banks here where the penetration of credit and financial products is still relatively low. The central and state governments appear to be driving an ambitious programme in the infrastructure sectors. The eleventh five year plan (2007-2012) envisages an investment of USD 500 billion, with approximately USD 80 billion envisaged for 2008-09 alone. This presents a major opportunity for banks and financial institutions to finance these investments. Although growth in retail credit has moderated in the last year, the low penetration levels of retail credit (estimated at less than 12% of GDP), the shift in demographics towards a higher proportion of younger working population, the changing attitudes towards borrowings, higher income levels amongst the growing middle class, and the large pent-up demand for housing, cars etc., all are well for the long-term, sustainable growth of retail lending in the Indian market.

2.1.2 PROFILE AND HISTORY OF STANDARD CHARTERED BANK

Standard Chartered Bank is a London based bank, currently operational within over 70 nations with more than 1,700 branches and 73,000 strong workforce as of April 2009. Although the bank is located in Britain, still a huge chunk of its revenues originate from the continents of Asia, Africa and Middle East. History

28

The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson.Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa. In those early years, both banks prospered. Chartered opened its first branches in Bombay, Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business. In South Africa, Standard, having established a considerable number of branches, was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885.Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London. Both banks at that time still quite separate companies survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the 50s and 60s. Each had acquired other small banks along the way and spread their networks further. In 1969, the banks decided to merge, and to counterbalance their existing network by expanding in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa. All appeared to be going well, when in 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group. After having defeated the bid, Standard Chartered entered a period of change. It made provisions against Third World debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. It also began a series of divestments notably in the United States and South Africa, and entered into a number of asset sales. Presence in India In India, the Standard Chartered Bank introduced its first branch in Kolkata on 12th of April 1858. Later on, when Mumbai took over Kolkata as the financial capital of India, the bank administration was 29 shifted to Mumbai from Kolkata.

Currently, the bank offers a wide variety of banking services and products to the Indian customers under Personal Banking, Private Banking, SME Banking and Wholesale Banking categories. The services being offered include Regular Banking Services, Credit Cards, Debit & Prepaid cards, Loans & Mortgages, NRI Banking Services, Executive Banking and Insurance & Investment products. As of April 2009, Standard Chartered bank is located in all the prominent cities of India, including New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, Ahmedabad etc. Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies. It now focuses on consumer, corporate, and institutional banking, and on the provision of treasury servicesareas in which the Group had particular strength and expertise. The company's return on assets in 2008 was 1.05%, compared to 0.31% for JPMorgan Chase, 0.37% for HSBC Holdings and 0.14% for Citigroup. Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Holdings. Recent alliances and developments In 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing its presence in private banking and further expanding its operations in Bangladesh, India and Pakistan.[5] Standard Chartered retained Grindlays' private banking operations in London and Luxembourgand the subsidiary in Jersey, all of which it integrated into its own private bank. This now serves high net worth customers in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered Grindlays Offshore Financial Services. In India, Standard Chartered integrated most of Grindlays' operations, making Standard Chartered the largest foreign bank in the 30

country, despite Standard Chartered having cut some branches and having reduced the staff from 5500 to 3500 people.

2.1.3

RECENT

ACHIEVEMENTS

AND

MILESTONES

OF

STANDARD CHARTERED
Asian Banking and Finance Retail Banking Awards 2008 Best International Bank of the Year Best Retail Bank - Singapore Best Core Banking Initiative - Singapore Best Branch Initiative - Vivocity branch, Singapore Best Self Service Initiative Singapore Private Banker International Awards 2008 Outstanding Private Bank in Asia Pacific 2008 Euromoney Awards For Excellence Global Best Private Bank Global Finance 2008 World's Best Internet Bank for Africa & Middle-Eas The Asian Banker Awards Award for Achievement in Cash Management

2.1.4 PRODUCT RANGE OF STANDARD CHARTERED

1) Consumer Banking 2) Private banking 3) SME banking 4) Wholesale banking 5) Saadiq Islamic banking

31

2.1.5

FINANCIAL

PERFORMANCE

OF

STANDARD

CHARTERED
Achieved record income and profits in 2008 despite the difficulties we are seeing in the external environment.

Operating profit rose 13 per cent to 4.57 billion dollars Income increased 26 per cent to 13.97 billion dollars Normalised earnings per share were up one per cent to 174.9 cents Our tier one capital ratio increased from 8.8 per cent to 10.1 per cent, and core tier one increased from 6.6 per cent to 7.6 per cent.

The Board is recommending a final dividend of 42.32 cents per share, making an annual dividend of 61.62 cents, which is in line with statements made at the time of our rights issue.

2.1.6 FUTURE PLANS OF STANDARD CHARTERED

Our continued performance is the result of a disciplined approach to running the Bank. There are four aspects :First, we've stuck to our strategy - we want to be the world's best international bank, leading the way in Asia, Africa and the Middle East. We do business in markets we understand intimately, with customers with whom we have long standing relationships, selling products we understand fully.Second, we have been - and will remain - very focused on the basics of banking: on liquidity, capital, risks, operational control and costs. Perhaps because we've always operated in volatile markets, we've never lost sight of such disciplines. Third, we're open for business. We want to support our clients as they navigate the economic turmoil. We want to seize the opportunities arising from the turbulence. Whilst we have taken action in response to the crisis, we continue to invest for growth.And finally, we've stayed true to our values and culture. Standard Chartered is a rather different Bank and we want to keep it like that. We run as One Bank across geographies and businesses. We're focused on customers not transactions. We're playing the long game. Our values and culture are a key to our competitive advantage. 32

2.1.2 PROFILE AND HISTORY OF PUNJAB NATIONAL BANK

HISTORY 1895: PNB commenced operating in Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, the Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the Swadeshi movement such asDyal Singh Majithia and Lala HarKishen Lal,[1] Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. 1904: PNB established branches in Karachi and Peshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but continued to operate in Pakistan. 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became Bharat Nidhi Ltd. 1961: PNB acquired Universal Bank of India. 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon). September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks, including PNB's headoffice, which may have moved to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh). 33

1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on July 19, 1969. 1976 or 1978: PNB opened a branch in London. 1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud scandal. 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network. 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. 1998: PNB set up a representative office in Almaty, Kazakhstan. 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest novels in Malayalam, had established the bank in 1899. It was incorporated in 1913, and in 1965 had acquired selected assets and deposits of the Coimbatore National Bank. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares. PNB also opened a representative office in London. 2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. 2005: PNB opened a representative office in Dubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two offices, one in London, and one in South Hall,Middlesex. Since then it has opened a third branch in Leicester, and is planning a fourth in Birmingham. 34

2008: PNB opened a branch in Hong Kong.

2.1.3 RECENT ACHIEVEMENTS AND MILESTONES OF PNB

Ranked among top 50 companies by the leading financial daily, Economic Times. Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London. Earned 9th place among India's Most Trusted top 50 service brands in Economic Times- A.C Nielson Survey. Included in the top 1000 banks in the world according to The Banker, London. Golden Peacock Award for Excellence in Corporate Governance - 2005 by

Institute of Directors. FICCI's Rural Development Award for Excellence in Rural Development 2005

2.1.4 PRODUCT RANGE OF PNB

Savings Fund Account - Total Freedom Salary Account, PNB Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Scheme Credit Schemes - Flexible Housing Loan, Car Finanace, Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Corporate Banking - Gold Card scheme for exporters, EXIM finance Business Sector - PNB Karigar credit card, PNB Kushal Udhami,

Prudent Sweep, PNB Vidyarthi SF Account, PNB Mitra SF Roamer Account, Mahabachat Schemes, Multi Benefit Deposit Personal Loan, Credit Cards Farmers Welfare Trust

PNB Pragati Udhami, PNB Vikas Udhami 35

Apart from these, the PNB also offers locker facilities, senior citizens

schemes, PPF schemes and various E-services.

2.1.5 FINANCIAL PERFORMANCE OF PNB

Though there has been general slowdown in the economy because of adverse global developments, Banks like PNB have enough opportunity for expansion within & outside the country and to further strengthen its presence in India, Bank is penetrating the untapped market through strong focus on inclusive banking and technology. PNB is reflecting a healthy capital base; Capital Adequacy Ratio is 13.91 % as per Basel II in Dec08 of which Tier I Capital is 9.39 % 1. PROFIT & LOSS ACCOUNT The Net profit (Q3) of the Bank increased by 85.76% to Rs 1005.82 Cr from Rs 541.46 Cr last year. Net Profit of the bank for the nine months ended December 2008 amounted to Rs 2225.31 Cr (y-o-y growth of 47.86%). Operating profit increased by 82.17 % in the Q3 Dec 08 while the Profit for nine months ended December 2008 at Rs 4156.20 Cr registered a YOY increase of 49.53%. For the Q3 2008, Interest Income of the Bank increased by 45.61% and Non Interest Income has registered an increase of 95.51%. Q3 Net Interest Income has increased by 38.12% to Rs 1967.35 Cr and on nine months basis NII has increased to Rs 5124 cr with YOY growth of 27.57% Cost to income ratio stood at 37.99% in Q3 December 2008 as compared to 48.04% in Q3 December 2007. Return on Net worth has improved to 30.92% in Q3 December 2008 from 18.60% in Q3 December 2007. 36

Net interest margin for the Q3 December 2008 has improved to 3.85% as against 3.66% in Q3 December 2007. Return on Assets [ROA] increased to 1.74% for the Q3 December 2008 as compared to 1.21% in Q3 December 2007. 2. BALANCE SHEET STRENGTH The Bank has total assets of Rs 231566.48 Cr as on 31st December 2008, which reflects increase of 28.87% over the corresponding figure of December 2007. Total business of the Bank has increased by 33.2% to reach Rs 338574 Cr. 3.FINANCIAL INCLUSION: Bank has opened 43.18 lakh No Frill accounts so far with an outstanding amount of Rs.414 crore. Further, 37283 General Credit Cards have also been issued cumulatively with a total disbursement of Rs. 66.31 crore.The Bank is pursuing financial inclusion both at geographical and functional levels. Under functional financial inclusion, the Bank has launched its unique initiatives for bringing marginalized sections of the society under the purview of financial inclusion. Some of these initiatives are: Bank has undertaken five unique pilot projects for financial inclusion The bank has been associated with the Financial Empowerment

of Rickshaw Pullers in Varanasi, Allahabad and Lucknow. Scheme of Govt. of Rajasthan under Bhamashah Project to benefit 50 lakh rural families belonging to BPL/SF/MF/SC/ST category. The Bank has also been associated with Mother Dairy for bringing A Financial Inclusion project for construction workers at Bangalore Bank has initiated distribution of 1 lakh biometric Smart Cards in the dairy milk farmers of 23 districts in Uttar Pradesh into the banking fold. is being implemented. districts Kulu and Mandi in HP as part of its initiative of 100% Financial Inclusion.

37

Under geographical financial inclusion, the Bank is implementing 30

pilot project sites for launching IT enabled financial inclusion through Business Correspondent/Business Facilitator model, of which, 14 pilot projects have already been launched. PNBs 8 Farmers Training Centres (FTCs) trained 1.74 lakh persons, In recognition to its efforts in financial inclusion, recently PNB has including 27923 women at the end of December 2008. been awarded with Inclusion Champion of the Year by Skoch Challenger Awards 2009. 4. INTERNATIONAL EXPANSION The Bank continues its foray in international markets with 3 overseas branches (Kabul, Hong Kong and Offshore Banking Unit (OBU) Mumbai); 4 Representative offices (Shanghai, Almaty, Dubai and Norway) and a subsidiary in London (PNBIL). In addition to its existing branches, PNBIL has recently opened a branch at Leicester to cater to the need of large section of people of Indian origin. The Bank also has a Joint venture with equity and Management Participation with Everest Bank Ltd., Nepal.

2.1.6 FUTURE PLANS

Bank is in the process of setting up a joint venture bank in In addition to its existing branches, the London Subsidiary Bank has plans to open a subsidiary at Canada, branch in To upgrade Representative office at Shanghai to a branch. The international operations of the Bank have not been

Bhutan. will open branch in Birmingham. DIFC, UAE and an OBU at Singapore.

impacted adversely in the current scenario.

2.1.2 PROFILE AND HISTORY OF ORIENTAL BANK OF COMMERCE

38

Oriental Bank of Commerce, established on 19 February, 1943, in Lahore (then a city of British India, and currently in Pakistan), is one of thepublic sector banks in India.Oriental Bank of Commerce made a modest beginning under its Founding Father, Late Rai Bahadur Lala Sohan Lal, the first Chairman of the Bank.Within four years of coming into existence, the Bank had to face the holocaust of partition. Branches in the newly formed Pakistan had to be closed down and the Registered Office had to be shifted from Lahore to Amritsar. Late lala Karam Chand Thapar, the then Chairman of the Bank, in a unique gesture honoured the commitments made to the depositors from Pakistan and paid every rupee to its departing customers. The foundation of customer service thus laid has ever since remained Oriental Bank's prime philosophy and has been nurtured well as a legacy by all its successors, year after year. Projects - A Handful of Success The Bank has launched yet another people's participation in the planning process at grass root level essentially to tackle the maladies of poverty. The Grameen Projects venture aims to alleviate poverty plus identify the reasons responsible for the failure or success. OBC is already implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Raiasthan). Formulated on the pattern of the Bangladesh Grameen Bank, the Scheme has a unique feature of disbursing small loans ranging from Rs. 75 (US $2) onwards. The beneficiaries of the Grameen Project are mostly women.The Bank is engaged in providing training to rural folk in using locally available raw material to produce pickles, jams etc. This has provided selfemployment and augmented income levels thus reforming lives of rural folk and encouraging cottage industries in rural areas. OBC launched yet another unique scheme christened 'The Comprehensive Village Development Programme' on the auspicious day of Baisakhi, the 13th of April 1997 at three villages in Punjab namely Rurki Kalan (Distt. Sangrur), Raje Majra (Distt. Ropar) and Khaira Majha (Distt. Jaladhar) and two villages in Haryana, namely Khunga (Distt. Jind) and Narwal (Distt. Kaithal). The pilot launch was a great success. Emboldened by the success, Bank extended the programme to more villages. At present, it covers 15 villages; 10 in Punjab, 4 in Haryana and 1 in Rajasthan. The programme focuses on providing a comprehensive and integrated 39

package providing rural finance to the villagers with Village Development as its focus, thus contributing towards infrastructural development and agumentation of income for each farmer of the village. The Bank has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs

2.1.3 RECENT ACHIEVEMENTS AND MILESTONES OF OBC

Insurance Joint Venture Joint Venture with Canara Bank and HSBC launched on 16th June 2008 after getting all regulatory approvals. Marketing of insurance products commenced through branch network. Expected to add to the non interest income. Cost of Deposits & Operations CASA Campaign launched last year continues with increased focus. During 2008-09, total of 601728 deposit accounts opened including 177942

savings accounts, 77087No-Frill Account, 13923Current Accounts and 332776 Term deposit accounts. Cost of deposits brought down from 7.27% for the quarter ended March

2008 to 7.05% as on 30th June 2008. Focus on shift in delivery of services from manual channels to electronic

channels to bring down the cost of operations. Quality Credit growth Growth of quality credit through segregated business lines under Large

Corporate, Mid Corporate & SME, Retail credit. IT Enabled Products- eZ Banking Younger generation of customers targeted through IT enabled products and services Online Education Loans 40

 Online trading of shares Online payment of taxes OLTAS E-Shoppe Internet Banking Cashmate Cards for students Instant remittances through electronic channels RTGS/NEFT Biometric ATMs and Mobile ATMs for financial inclusion Optimising performance with HR Initiatives OBC recruits 676 new employees including 340 Clerks, 200 Probationary Officers and 136 Specialist Officers in the areas of marketing, treasury, corporate credit and foreign exchange operations. 8594 Employees trained during 2007-08 for upgrading skill set.

2.1.5 FINANCIAL PERFORMANCE OF OBC

Business Growth Total business grows by 27.04% on YOY basis. Aggregate business reaches Rs.139271 cr as on 30th June 2008 against Rs.109624 cr as on 30th June 2007. Deposit grows on YOY basis by 29.06% from Rs.64511 crore as on 30th June 2007 to Rs.83258 crore. Advances grows on YOY basis at 24.16% from Rs. 45113 crore as on 30th June 2007 to Rs.56013 cr as on 30th June 2008. Education loan showed a sharp jump of 41.74% at Rs.618 cr as against Rs.436 cr during the same period last year. Capital Adequacy 41

 CRAR as on 30th June 2008 stood at 12.24%. Profitability Operating profit grows on YOY basis by 8.80% from Rs.325.11 crore as on 30th June 2007 to Rs.353.73 crore as on 30th June 2008. Net Profit grows on YOY basis by 10.03% from Rs.200.42 crore as on 30th June 2007 to Rs.220.52 crore as on 30th June 2008. Non-interest income grows on YOY basis by 40.55% from Rs.146.20 crore as on 30th June 2007 to Rs.205.49 crore as on 30th June 2008. NPA Recoveries Due to targeted recoveries gross NPA of the bank has come down from

Rs.1490.56 crore as on 30th June 2007 to Rs.1222.98 crore as on 30th June 2008 thereby reducing the gross NPA from 3.2% to 2.18% on YOY basis. Net NPA has come down during the quarter from 0.99% as on 31st March 2008 to 0.96% as on 30th June 2008. EPS & Business per employee/branch Earning per share improved from Rs.5.56 as on 30th June 2007 to Rs.8.80 as on 30th June 2008. Business per employee jumps from Rs.7.44 crore as on 30th June 2007 to Rs.9.47 Cr. as on 30th June 2008. Business per branch goes up from Rs.85.18 crore as on 30th June 2007 to Rs.104.87 Cr. as on 30th June 2008.

2.1.6 FUTURE PLANS OF OBC

100 new branches to be opened. Leveraging technology through new products and services.

42

 Increasing customer base. Thrust for business from Rural and Semi-Urban areas. With legacy of past e-GTB losses over, Bank is poised for improved financials. To reach a Business Mix of Rs.200000 crore and branch network of over 1500 branches by March 2010.

43

3.1 SURVEY OF LITERATURE

Murphy.L, Hurrell.J.J(1987) demonstrated the efficacy of worksite stress management training for reducing worker psycho-physiological arousal and subjective reports of anxiety, depression, and somatic complaints. The role of stress management in the larger context of occupational stress reduction, however, has not been addressed. An application of stress management as one component of an organisational stressor reduction programme is described. Future plans include the formulation and implementation of recommendations for reducing organisational stress and repeated evaluations of their efficacy.(Stress management in the process of occupational stress reduction) Foot.T (1991) explained in this study the nature of stress and methods of stress management. He considers behaviour and lifestyle as factors in causing stress and provides a questionnaire to test managerial skill in recognizing stress. States that stress management is the re-education of people to use existing coping strategies rather than a substitute for those strategies. (Stress Management) Steven.B, Brian.H (1994) elaborated in his article gives an overview of events in the field of stress management. Describes the relationship of stress to the human autonomic nervous system and discusses the physiological effects in relation to type A/B behaviour. He examined methodologies for stress management, the design of stress management programmes for industry application, and the results which selected corporations have achieved. As stress-related health-care costs in the US skyrocket, more and more emphasis will be placed on reducing stress. US industry had recognized the profitability of stress reduction through increased productivity and decreased health-care costs. (Effective stress management) Extention Journal (1995) said in his article emotional intelligence, based upon Salovey and Mayer's work that emotional intelligence (EQ) had become one of the 44

hottest leadership topics in corporate America and has filtered into the not-for-profit and educational arenas as well. It is through an individual's emotional intelligence that he/she will be able to deal with life and lead others in a more positive manner. This paper described the successful incorporation of emotional intelligence training in Ohio State University Extension's leadership training. (Emotional Intelligence: A Pathway to Self-Understanding and Improved Leadership Capacities) Cherniss.C et al (1998) deliberated that it is possible for people of all ages to become more socially and emotionally competent. However, the principles for developing this type of competence differ greatly from those that had guided much training and development practice in the past. Developing emotional competence requires that we unlearn old habits of thought, feeling, and action that are deeply ingrained, and grow new ones. Such a process takes motivation, effort, time, support, and sustained practice, as the guidelines presented in this article make clear.Most management and executive development efforts as well as training in supervisory skills, diversity, teamwork, leadership, conflict management, stress management, sales, customer relations, etc. (Bringing Emotional Intelligence to the Workplace) Benjamin.P(2000) explained that emotional intelligence had become increasingly popular as a measure for identifying potentially effective leaders, and as a tool for developing effective leadership skills. Despite this popularity, however, there is little empirical research that substantiates the efficacy of emotional intelligence in these areas. The aim of the present paper was to explore the relationship between emotional intelligence and effective leadership. Emotional intelligence was assessed by a modified version of the Trait Meta Mood Scale in 43 participants employed in management roles.(Emotional intelligence and effective leadership) Cherniss.C (2000)deliberated abilities associated with emotional intelligence had been studied by psychologists for many years, and there is an impressive, and growing, body of research suggesting that these abilities are important for success in many areas of life. However, rather than arguing about whether emotional intelligence is new, I believe it is more useful and interesting to consider how important it is for effective performance at work.Furthermore, as the pace of change increases and the world of work makes ever greater demands on a persons cognitive, emotional, and

45

physical resources, this particular set of abilities will become increasingly important. (Emotional Intelligence: What it is and Why it Matters) Fabio.C et al(2001) demonstrated that higher-level employees are more likely to had an inflated view of their emotional intelligence competencies and less congruence with the perceptions of others who work with them often and know them well than lower-level employees. This information is valuable to our clients because previous research has firmly established that high performing managers tend to have more accurate self-perceptions. That is, high-performing individuals' self-perceptions tend to match the perceptions/ratings of others. Therefore, helping managers and executives better understand how they are perceived by others can have significant implications for performance improvement. (It's lonely at the top: Executives' emotional intelligence self (mis) perceptions) Ogilvie.J & Carsky.M (2002) deliberated that increased emphasis on emotions in negotiation, an exercise is presented which can be used with a simulated negotiation to develop emotional skills. Linking research on the role of emotions in negotiation to emotional intelligence, we propose a set of activities to develop greater awareness, understanding, and ability to manage emotions while negotiating. (Building emotional intelligence in negotiation) Mayer.S et al (2002) said that Mayer-Salovey-Caruso Emotional Intelligence Test ((MSCEIT) is an ability-based test designed to measure the four branches of the EI model of Mayer and Salovey. MSCEIT was developed from an intelligence-testing tradition formed by the emerging scientific understanding of emotions and their function and from the first published ability measure specifically intended to assess emotional intelligence, namely Multifactor Emotional Intelligence Scale (MEIS). MSCEIT consists of 141 items and takes 30-45 minutes to complete. MSCEIT provides 15 main scores: Total EI score, two Area scores, four Branch scores, and eight Task scores.(SCEIT) Hamme.C(2003) explained about the Group Emotional Competence (GEC) inventory is based on the work of Vanessa Druskat and Steven Wolff who have pioneered the application of emotional competence concepts at the group level. Their research has shown that GEC norms improve group effectiveness by building social capital, which 46

facilitates engagement in effective task behaviors and processes. Christina Hamme Petersons (2001) study of an early version of the instrument provides support for its reliability and validity. The instrument has now been administered to over 150 teams and provides feedback on 9 group norms that research has shown are linked to team effectiveness. Feedback is useful for helping groups better understand their strengths and weakness and to identify areas for improvement.(Group Emotional Competence) Robert J. Emmerling and Daniel Goleman(2003) explained that issues and air questions that have arisen along with the growing interest in emotional intelligence.They believed that one can pay off to the degree it strengthens the research and thinking that are the foundations of the field-both in theory and in applications.Understandably, this has led to a great deal of controversy and debate among researchers and practitioners eager to understand and apply the principles associated with emotional intelligence. Such debate, of course, is not confined to emotional intelligence, but is an inherent part of the process of theory development and scientific discovery in any field.(Emotional Intelligence: Issues and Common Misunderstandings) Abraham.C et al(2005) suggested that affective commitment and organizational citizenship behavior are positively correlated. Previous studies, however, report weak relationships between affective commitment and organizational citizenship behavior. The present study provides an interactive perspective in which we propose that emotional intelligence moderates the relationship between affective commitment and Organizational Citizenship Behaviors (OCBs) altruism and compliance.(The Relationship Between Affective Commitment and Organizational Citizenship Behaviors: The Moderating Role of Emotional Intelligence) John Bar (2006) suggested the Emotional Quotient Inventory (EQ-i), EQ-360 and EQ-i: YV were developed to assess the Bar-On model of emotional-social intelligence. The EQ-i is a self-report measure designed to measure a number of constructs related to EI. The EQ-i consists of 133 items and takes approximately 30 minutes to complete. It gives an overall EQ score as well as scores for the following five composite scales and 15 subscales. (Bar-On Emotional Quotient Inventory EQ-i*) 47

Robert.K et al (2006) investigated that there is relationship between managerial emotional intelligence (EI) levels and a rating of leadership effectiveness (subordinate ratings). These findings endorse the validity of incorporating EI interventions alongside the recruitment and selection process and the training and development process of managerial personnel. However, they also question the conceptual validity of a key branch (managing emotions) of the MSCEIT.(Emotional intelligence and leadership effectiveness) Stephane Cote et al(2006) developed a model that construes wise emotion regulation as a process that involves: (a) setting an effective emotion regulation goal, (b) choosing an appropriate strategy to achieve that goal, (c) implementing that strategy effectively, and (d) adapting emotion regulation over time. We also develop propositions linking emotional intelligence to wise emotion regulation. (Emotional intelligence and wise emotion regulation in the workplace) Jennings.S & Palmer,B.R.(2007) deliberated that Emotional Intelligence

Assessment ( GEIA ) is a 360-degree measure of emotionally intelligent workplace behaviour. It measures how often individuals display emotionally intelligent workplace behaviour according to a taxonomic seven-factor model of emotional intelligence identified by Dr Benjamin Palmer and Professor Con Stough from Swinburne University. The GEIA is identical to, and often referred to, as the Swinburne University Emotional Intelligence Test (or SUEIT). The GEIA can be completed online, consists of 70 items and takes approximately 15 minutes to complete. The table below presents a definition of each emotional intelligence skill measured, and workplace outcomes that can be achieved from displaying each skill effectively at work. (The Genos Emotional Intelligence Assessment) Wong (2007) deliberated that WEIS consists of two parts. The first part contained of 20 scenarios and respondents are required to choose one option that best reflects their likely reaction in each scenario. The second part contains 20 ability pairs and respondents are required to choose one out of the two types of abilities that best represent their strengths. (WEIS) Wong.T(2007) suggested emotional intelligence had became a popular topic in the business press in recent years. This article helps many leaders to understand and develop emotional intelligence competencies. This study compares scores on Benchmarks to self-reported emotional intelligence as measured by the BarOn EQ-i. 48

It shows that the key leadership skills and perspectives are related to aspects of emotional intelligence and the absence of emotional intelligence was related to career derailment.( leadership Skills and Emotional Intelligence) Macmikay.A(2008) deliberated in his article that emotional intelligence is a critical part of intelligence that we must use everyday. Emotional intelligence is defined as "Is the ability to perceive emotions; to access and generate emotions so as to assist thought; to understand emotions and emotional knowledge; and to reflectively regulate emotions so as to promote emotional and intellectual growth".(Emotional Intelligence Pertaining To The Management Of Emotions In Daily Life) Swin.A (2008) elaborated the concept of Emotional Intelligence (EI) had attracted a great amount of interest from HR practitioners and academics alike. Whilst the majority of research in this area has been conducted in Western countries, recent studies have begun to assess the generalisability and validity of the EI concept in cross-cultural settings. The purpose of this paper was to assess the reliability of the Workplace version of the Swinburne University Emotional Intelligence Test (Workplace SUEIT) in an Indian population. The Workplace SUEIT demonstrated adequate reliability in the sample of 110 participants in India, although the mean scores for the sub-scales were significantly lower than in the Australian normative population. (Assessing Emotional Intelligence In The Indian Workplace: A Preliminary Reliability Study)

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4.1 AN ASSESSMENT ON EMOTIONAL QUOTIENT LEVEL AND STRESS LEVEL OBJECTIVE 1:This objective is to study the emotional quotient level of the respondents of selected private and public banks. HO= There is no significant difference in the emotional quotient level of the respondents of selected private and public banks. H1= There is significant difference in the emotional quotient level of the respondents of selected private and public banks. Table4.1 EQ of private and public banks(mean) Group Statistics organization of emotional intelligence the Mean 75.90 75.04 Std. Deviation 6.280 7.456 Std. Mean .888 1.054 Error respondent N private bank 50 public bank 50

Table4.2 EQ of private and public banks(t-test)

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Independent Samples Test Levene's Variances Test t-test for Equality of Means 95% Confidence Interval of the Sig. (2- Mean F emotional Equal .088 .767 .624 98 .534 .860 1.379 -1.876 3.596 assumed Equal variances not assumed .624 95.249 .534 .860 1.379 -1.877 3.597 intelligence variances Sig. T df Std. Error Difference Upper for Equality of

tailed) Difference Difference Lower

Interpretation: The mean value of both private and public banks is nearly similar. So, we can state that there is no or negligible significant difference in their emotional quotient level. This illustrates that the emotional quotient level of the respondents are irrespective of their organization they are working in and that the level of managing and understanding ones own emotions and that of others do not vary within private and public bank. Hence, HO is not rejected. There are 5 dimensions of emotional intelligence:1) Emotional awareness 2) Managing emotions 3) Self motivation 4) Empathy 5) Coaching others emotions HO= There is no significant difference in the dimensions of emotional intelligence of the respondents of selected private and public banks. H1= There is significant difference in the dimensions of emotional intelligence of the respondents of selected private and public banks. Table4.3 Tabulation of emotional quotient level Dimensions Emotional Private (mean) 12.80 bank Public (mean) 12.58 51 bank t- value 0.703 significance 0.484

awareness Managing

9.24

8.88 13.18 13.84 17.40

1.666 0.547 -0.606 1.094

0.099 0.585 0.546 0.277

emotions Self motivation 13.36 Empathy 13.66 Coaching 17.82 others emotions

Interpretation: The mean value of both private and public banks is nearly similar in case of all the 5 dimensions of emotional intelligence So, we can state that there is not strong or very weak significant difference in the managing emotions dimension of emotional intelligence when compared to other dimensions of emotional intelligence. This illustrates that the dimensions of emotional intelligence of the respondents are irrespective of their organization they are working in and that the level of managing and understanding ones own emotions and that of others do not vary within private and public bank. Hence, HO is not rejected. OBJECTIVE 2:This objective is to study the stress level of the respondents of selected private and public banks. HO= There is no significant difference in the stress level of the respondents of selected private and public banks. H1= There is significant difference in the stress level of the respondents of selected private and public banks. Table4.4 Stress level of private and public banks(mean)

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Group Statistics organization of the Mean 24.76 23.62 Std. Deviation 4.897 3.912 Std. Mean .693 .553 Error respondent N stress level private bank 50 public bank 50 Interpretation: The mean value of both private and public banks is nearly similar. So, we can state that there is no or negligible significant difference in their stress level. This illustrates that the stress level of the respondents are irrespective of their organization they are working in and that the stress level do not vary within private and public bank.

Table4.5 Stress level of private and public banks(t-test) Independent Samples Test Levene's Test for t-test for Equality of Means 95% Confidence Interval Sig. (2F stress Equal level variances 1.123 .292 assumed Equal variances not assumed Interpretation: 53 Sig. t 1.28 6 df 98 Mean Std. Error the of Equality of Variances

Differenc Differenc Difference tailed) e e Lower Upper .201 1.140 .886 -.619 2.899

1.28 93.43 6 8

.202

1.140

.886

-.620 2.900

The p value of both private and public banks is greater than 0.05 ie.0.201. So, we can state that there is no or negligible significant difference in their stress level. This illustrates that the stress level of the respondents are irrespective of their organization they are working in and that the stress level do not vary within private and public bank. Hence, HO is not rejected. OBJECTIVE 3:This objective is to analyze the relationship between emotional intelligence and its dimensions with stress level of the respondents of selected private and public banks. Table4.6 Correlation between EQL & Stress level Correlations emotional intelligence Spearman's rho emotional intelligence Correlation Coefficient Sig. (2-tailed) N 1.000 . 100 stress level -.053 .032 100

Interpretation: The correlation coefficient between EQ and stress level is -0.53 which indicates that there is a strong inverse relation between them. It shows the trend that the more is the EI, the lesser will be the stress level and the p value is less than 0.05 ie. 0.032 which illustrates that there is significant relationship between EI and stress. Table4.7 Correlation coefficient between EQL & Stress level Relationship with stress EI(EA+ME+SM+E+COE) Emotional awareness Managing emotions Self motivation Empathy Coaching others emotions Interpretation: Correlation coefficient -.053 0.060 -0.085 -0.73 -0.06 -0.002

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a) EI- The correlation coefficient between EQ and stress level is -0.53, which indicates that there is a strong inverse relation between them. It shows the trend that the more is the EI, the lesser will be the stress level. b) Emotional awareness-The positive correlation coefficient between variable Emotional awareness and stress level ie. 0.060, which indicates that there is a strong positive relation between them. It shows the trend that the more is the emotional awareness, the more will be the stress level. c) Managing emotions- The correlation coefficient between managing emotions and stress level is -0.085, which indicates that there is a strong inverse relation between them. It shows the trend that the more is the managing emotions variable, the lesser will be the stress level. d) Self motivation- The correlation coefficient between self motivation and stress level is -0.73, which indicates that there is a strong inverse relation between them. It shows the trend that the more is the self motivation variable, the lesser will be the stress level. e) Empathy- The correlation coefficient between empathy and stress level is -0.06, which indicates that there is a strong inverse relation between them. It shows the trend that the more is the empathy variable, the lesser will be the stress level. f) Coaching others emotions- The correlation coefficient between coaching others emotions and stress level is -0.002, which indicates that there is a strong inverse relation between them. It shows the trend that the more is the coaching others emotions variable, the lesser will be the stress level. OBJECTIVE 4: to study whether work stress experienced by employees varies with these demographic factors and test its hypotheses:(a) Gender HO= There is no significant difference in stress level with difference in gender of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in gender of the respondents of selected public and private banks. 55

Table4.8 Mann-whitney test(gender & stress level) Test Statisticsa stress level Mann-Whitney U 1137.500 Wilcoxon W 2733.500 Z -.659 Asymp. Sig. (2-tailed) .510 Interpretation: - The p value is more than 0.05 ie. 0.510,which indicates that there is no significant difference in stress level with difference in gender of the respondents of selected public and private banks. Hence, HO is not rejected. (b) Age HO= There is no significant difference in stress level with difference in age of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in age of the respondents of selected public and private banks. Table4.9 K independent test(age & stress level) Test Statisticsb stress level 100 24.00 4.896a 2 .086

N Median Chi-Square Df Asymp. Sig.

Interpretation: The p value is more than 0.05 ie. 0.086,which indicates that there is no significant difference in stress level with difference in age of the respondents of selected public and private banks. Hence, HO is not rejected. (c) Cadre 56

HO= There is no significant difference in stress level with difference in cadre of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in cadre of the respondents of selected public and private banks.

Table4.10 Mann-whitney test(cadre & stress level) Test Statisticsa stress level Mann-Whitney U 565.000 Wilcoxon W 718.000 Z -1.294 Asymp. Sig. (2-tailed) .196 Interpretation: The p value is more than 0.05 ie. 0.196,which indicates that there is no significant difference in stress level with difference in cadre of the respondents of selected public and private banks. Hence, HO is not rejected. (d) Educational qualification HO= There is no significant difference in stress level with difference in qualification of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in qualification of the respondents of selected public and private banks. Table4.11 K independent test(qualification & stress level) Test Statisticsb stress level 100 24.00 2.216a 3 .529 57

N Median Chi-Square Df Asymp. Sig.

Interpretation: The p value is more than 0.05 ie. 0.529,which indicates that there is no significant difference in stress level with difference in qualification of the respondents of selected public and private banks. Hence, HO is not rejected. (e) Income HO= There is no significant difference in stress level with difference in income of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in income of the respondents of selected public and private banks. Table4.12 K independent test(income & stress level)

N Median Chi-Square Df Asymp. Sig. Interpretation: -

Test Statisticsb stress level 100 24.00 5.430a 4 .246

The p value is more than 0.05 ie. 0.246,which indicates that there is no significant difference in stress level with difference in income of the respondents of selected public and private banks. Hence, HO is not rejected. (f) Tenure HO= There is no significant difference in stress level with difference in tenure of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in tenure of the respondents of selected public and private banks. Table4.13 K independent test(tenure & stress level) 58

N Median Chi-Square Df Asymp. Sig. Interpretation: -

Test Statisticsb stress level 100 24.00 4.242a 3 .237

The p value is more than 0.05 ie. 0.237,which indicates that there is no significant difference in stress level with difference in tenure of the respondents of selected public and private banks. Hence, HO is not rejected. OBJECTIVE 5:- to study whether emotional quotient level of the employees varies with these demographic factors and test its hypotheses:(a) Gender HO= There is no significant difference in emotional quotient level with difference in gender of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in gender of the respondents of selected public and private banks.

Table4.14 T-test(gender & EQ)

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Independent Samples Test Levene's Variances Test t-test for Equality of Means 95% Confidence Interval of the Sig. (2- Mean F emotional Equal 5.502 .021 .987 98 .326 1.367 1.385 -1.381 4.114 assumed Equal variances not assumed .924 62.485 .359 1.367 1.480 -1.590 4.324 intelligence variances Sig. t df Std. Error Difference Upper for Equality of

tailed) Difference Difference Lower

Interpretation: The p value is more than 0.05 ie. 0.326, which indicates that there is no significant difference in stress level with difference in gender of the respondents of selected public and private banks. Hence, HO is not rejected. (b) Age HO= There is no significant difference in emotional quotient level with difference in age of the respondents of selected public and private banks. H1= There is significant difference in stress level with difference in age of the respondents of selected public and private banks.

Table4.15 ANOVA (age & EQ)

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ANOVA emotional intelligence Sum Squares Between 20.014 Groups Within Groups 4654.896 Total 4674.910 Interpretation: The p value is more than 0.05 ie. 0.812,which indicates that there is no significant difference in stress level with difference in age of the respondents of selected public and private banks. Hence, HO is not rejected. (c) Cadre HO= There is no significant difference in emotional quotient level with difference in cadre of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in cadre of the respondents of selected public and private banks. of Df 2 97 99 Mean Square F 10.007 47.989 .209 Sig. .812

Table4.16 T-test(cadre & EQ)

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Levene's Variances

Test t-test for Equality of Means 95% Confidence Interval of the Sig. (2- Mean Std. Error Difference Upper

for Equality of

F emotional Equal .281 intelligence variances assumed Equal variances not assumed

Sig. .597

t -.46 3 -.51 5

df 98

tailed) Difference Difference Lower .644 -.851 1.837

-4.496 2.794

25.864 .611

-.851

1.654

-4.251 2.549

Interpretation: The p value is more than 0.05 ie. 0.644,which indicates that there is no significant difference in stress level with difference in cadre of the respondents of selected public and private banks. Hence, HO is not rejected. (d) Educational qualification HO= There is no significant difference in emotional quotient level with difference in qualification of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in qualification of the respondents of selected public and private banks.

Table4.17 ANOVA (qualification & EQ)

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ANOVA emotional intelligence Sum Squares Between 23.145 Groups Within Groups 4651.765 Total 4674.910 Interpretation: The p value is more than 0.05 ie. 0.923, which indicates that there is no significant difference in stress level with difference in qualification of the respondents of selected public and private banks. Hence, HO is not rejected. (e) Tenure HO= There is no significant difference in emotional quotient level with difference in tenure of the respondents of selected public and private banks. H1= There is significant difference in emotional quotient level with difference in tenure of the respondents of selected public and private banks. Table4.18 ANOVA (tenure & EQ) ANOVA emotional intelligence Sum Squares Between 164.494 Groups Within Groups 4510.416 Total 4674.910 Interpretation: The p value is more than 0.05 ie. 0.326,which indicates that there is no significant difference in emotional quotient level with difference in tenure of the respondents of selected public and private banks. Hence, HO is not rejected. of df 3 96 99 Mean Square F 54.831 46.983 1.167 Sig. .326 of df 3 96 99 Mean Square F 7.715 48.456 .159 Sig. .923

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5.1 SUMMARY,CONCLUSION,LIMITATIONS AND RECOMMENDATIONS 5.1.1 SUMMARY The present study conducted with the broad aim of analyzing the impact of emotional quotient level on the stress level of employees of the selected private and public banks (of different age, gender, qualification, cadre, income and tenure) in jalandhar region. 64

Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EQ principles provide a new way to understand and assess people's behaviours, management styles, attitudes, interpersonal skills, and potential. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. At the individual level,EI has the potential to increase our understanding of how individuals behave and adapt to their social environment, it is an important topic for study. The study has been limited to the employees of selected banking sector companies that are HDFC, Standard Chartered (private sector) and Punjab National Bank and Oriental Bank of Commerce (public sector).The study is limited to a specific region that is Jalandhar region.The study is confined to find the emotional quotient level and stress level of the respondents in the selected banking sector companies. It is Descriptive study because the researcher has done a systematized data collection to arrive at conclusions that can be taken for improvement. It is Quantitative study because it is done to gain quantitative understanding with a small sample and to analyze it thoroughly. Primary data is obtained by administering a questionnaire on the respondents of the selected organizations. Secondary data is collected through authorized websites, journals, magazines. The questionnaire is structured and non-disguised. It constitutes of 33 questions considering 2 main parameters(EQ & Stress).Sample size is 100 out of which 50 employees each of public and private bank. The sample has been drawn using the nonprobability sampling technique i.e. convenience sampling. The data collected through the questionnaire has been analysed with parametric and nonparametric tests. A strong negative correlation between emotional intelligence and stress suggests that emotional intelligence is indeed a very effective tool for managing stress. This inverse relation further leads to an understanding about human behavior which can be kept in mind while taking various employee related decisions in discharging various HR functions (e.g recruitment, grievance handling, allocation of roles). It further highlights the need for adopting relevant OD interventions consisting EQ building techniques to make the employees more emotionally intelligent. Thus, to make them good stress manager. EI building technique must be a part of curriculum of training and development in the form of conceptual & intuitive training & other training games should be included in training programs. The findings shows a positive correlation between emotional awareness and stress level, it 65

highlights the need for job carving & job sculpting to tap and manage the stress emotionally in a better way by focusing on employees interests & enriching their jobs accordingly. 5.1.2 CONCLUSION On the basis of the present study it can be concluded that there is no relation between emotional quotient level of employees with the type of organization they are working as well as there is no relation of stress level with the type of organization they work. It has been computed that the demographic factors also do not impact the emotional quotient level and the stress level of the selected private and public sector banks. 5.1.3 LIMITATIONS
Time the period of doing the research work was very short to be stated as a

deeply embedded life

highly qualitative and quantitative research.

Hesitation of the respondents to fill the questionnaire. Non- availability of the concerned persons at times. The study cannot be generalized to other not selected private and public

banks.

5.4 RECOMMENDATIONS

a).A strong negative correlation between emotional intelligence and stress suggests that emotional intelligence is indeed a very effective tool for managing stress. 66

b) Different OD interventions consisting EQ building techniques must be employed to make the employees more emotional intelligent and hence good stress managers.
c) EI building technique must be a part of curriculum of training and

development in the form of conceptual & intuitive training & other training games should be included in training programs. d) The training techniques for enhancing EQ can be uniform across demographic categories (age groups, gender, income group, qualification and tenure) since there is no significance relation between EQ and these variables.
e) The training session for enhancing stress management skills can also be

uniform across demographic categories (age groups, gender, income group, qualification and tenure) since there is no significance relation between stress level and these variables.
f) As the findings shows a positive correlation between emotional awareness

and stress level indicating that an individual who is more vividly aware of ones emotions is prone to greater level of stress. It implies that jobs should be designed according to the competencies of employees using techniques like job carving & job sculpting so as to tap & manage the stress emotionally in a better way by focusing on employees deeply embedded life interests & enriching their jobs accordingly. This facilitates better performance and ensures employee engagement.

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