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1.1 Introduction to Banking System

The ancient banking system of India constituted of indigenous bankers. They have been
carrying on their age old banking operations in different parts of the country under
different names. Then came commercial banking in 1770 with establishment of first joint
stock bank, named Bank of Hindustan by an English agency in Calcutta. But this bank
failed in 1832. In fact the real beginning of modern commercial banking in the country
was made with the establishment of Bank of Bengal in 1806. Later on, Bank of Bombay
and Bank of Madras were also set up in 1840 and 1843 respectively. All these banks were
called presidency banks. In 1881, the first purely Indian bank i.e. Oudh Commercial
Bank came into being. It was followed by setting up of Punjab National Bank in 1894.
When Indian government removed the barriers for foreign entrants with its liberalization
policy, Multinational companies helped in technical up-gradation of Indian system. Prior
to the change, it was sellers market and now it is customer oriented market. For the first
time customer/buyer has realized its power and organizations are more focused towards
services. The same trend has been seen in the banking sector.
Across the board people have less time than they use to have, they are overworked, they
move around more, they commute for longer periods and they watch television far more.
The sheer time for a chore like visiting the bank isnt there or at least for those out-onecessity visits. In the banking world the future isnt all that difficult to nail down.
Essentially crystal ball gazing for the banker involves analyzing the point at which a few
trends cover namely, the impact of technological developments, the changes in services
and offerings that the shakedown in the financial service industry will throw upset against
one key standard- evolving customer of course, the part of the answer for banks to the
challenge of disinter- mediation lies in alternative banking channels as they help to
remove the need for those troublesome branch visits.
With the advancement in technology, the banks are not limited by geography, Internet,
telephones, ATMs, mobiles acting as a hub connect various banks and customers all over
the world. This is all being done through these alternative channels. This increases the
complexity of marketing that bank employs to attract customers and retain them.
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The above issues are not only for the banks, but also effect the consumers. They get to
choose from not only domestic banks but also international banks are now open to them.
How they choose, where they bank from are all questions of consumers which they have
to address. This report dwells into various issues that Standard Chartered Bank faces and
what is the response of consumers while banking through various alternative channels.
The commercial banking system is divided into 2 categories:
1. Public sector banks
2. Private sector banks

1.1.1 Public Sector Banks

The public sector banks largely dominate the Indian banking industry. These banks till
early 90s were involved in the traditional banking business of deposits and credit
lending. They performed a supporting role in the overall growth of the economy. While
most of theirs banks uses to focus on growth of balance sheet profitability was not a
significant fact in the competition. In most of the banks government has holding of 100%
where as in the few banks the stake has fallen because of public issue in the post
liberalization period. Some of the other leading banks in the segment also proposed to
come out with an equity issue to raise further capital. The public sector banks still control
a major share in banking operations of the country. There inefficiency has been exposed
only when market was thrown open for competition and new players eating up there
share. But there size and strong network most of these banks can change their perception.
The recent trust on reduction of government stake VRS settlement scheme etc. have been
some of the steps in there direction. Since the growth of economy is largely dependent
on:

The banks should offer share to the public within three years of their operations.

The new private sector banks started operations in 1995. The minimum net worth
requirement of Rs. 1 bn and difficulty of getting banking license has kept the option
open for very few players. The financial institutions have promoted many of theirs
banks with emphasis on service and technology. It is for the first time that Indian
banks are challenging the foreign banks. These banks are making heavy use of
technology to give good services on par with foreign banks but to a much wider
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audience. E.g. Brand size has been reduced considerably by using technology and
having less manpower.

The new private sector banks are on expansion phase and now moving into some
urban areas and satellite towns to full fill there branch expansion norms. Their
technology edge and products innovations have gaining market share from the slower,
less efficient older banks. These banks targeted non-fund based income as major
source of revenue.

1.1.2 Private Sector Banks

Private Sector Banks-Old
These banks existed prior to the promulgation of banking nationalization act but were
not nationalized due to there smaller size and regional focus. Being small in size these
banks focus on services and technology and thus face competition from new private
sector banks reasonably well during the FY-2000. As these banks were facing still
competition from new private banks and foreign players who were making inroads in
their market, these banks have been able to increase there net profitability by 50% as a
result of increasing competition in the sector.
These banks are trying to improve upon their margin and asset quality. But the coming
year would be more challenging for these banks as a public sector banks are also trying to
adopt the new environment and new banks have already equipped themselves to have a
major share in any opportunity that would accrue.
Private Sector Banks- New
The banking regulation act was amended in 1993 permitting the entry of new private
sector banks. The act also specified certain criteria for establishing new private sector
banks. The criteria are as follows1.

The banks should have a minimum net worth of Rs. 1 bn

2.

The promoters holding should be minimum 25% of paid up capital.

1.1.3 Emergence of Private Sector Banks in India

The Indian banks were traditionally an administered structure, with highly segmented
market. There was limited competition in Indian banking sector. There were heavy
regulations by the government therefore leading to fewer products offered by fewer
players. Thus the products and players both were circumscribed by heavy regulations
with minimal use of technology, the banks offered few distinct alternative products.
After the nationalization of 14 commercial banks in 1969, RBI licensed no new private
banks in the country though there was no legal bank on the entry of private sector banks.
Deregulations still continues to facilitate the markets. Due to oblivion of the regulation of
barriers in the banking sector, the competition started coming up. The Narasimha
Committee report of 1991 has envisaged a larger role of private sector banks. In
recognition of the need to introduce greater competition with a view to achieving higher
productivity and efficiency of the banking system, RBI issued few guidelines in January
1993 for the entry of private sector banks. It prescribed a minimum paid up capital of
Rs.100 crore for the new bank and the shares are to be listed at stock exchanges. Also the
new banks after being granted license under the Banking Regulation act shall be
registered as a Public Limited company under the Companies Act, 1956.
Subsequently, 9 new commercial banks have been granted license to start banking
operations. The new private sector banks have been very aggressive in business
expansion and also reporting higher profit levels taking the advantage of technology and
skilled manpower. In certain areas, these banks have even out crossed the other group of
banks.
For the functioning of these private banks RBI has given some guidelines in January
1993.These guidelines are as follows:
The banks shall be governed by the provisions of the RBI Act, 1934. The Banking
Regulations Act, 1949.
Private sector banks are required to be registered as public limited companies in India
The authority to grant a license lies with RBI.
The shares of banks are required to be listed in stock exchanges.
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 Preference will be given to those banks whose headquarters are proposed to be

located in a center that does not have headquarters of any other bank.
Maximum voting rights of an individual shareholder would be limited to 1% of total
voting rights.
The new bank would not be allowed to have as its director any person who is already
a director in a banking company. The bank will be subject to prudential norms in
respect of banking operations, accounting policies and other policies, as laid down by
RBI. The bank will be required to adhere to the following:

Minimum paid up share capital of Rs.1 billion.

Promoters contribution as determined by the RBI Capital adequacy of 8% of the

risk weighted assets single borrower and group borrower exposure limits in force.

Priority sector lending export credit loan policy within overall policy guidelines
laid down by the RBI.

The banks will be free to open branches anywhere once they satisfy the capital
adequacy and prudential accounting norms.

The bank would not be allowed to have instruments in subsidiaries, mutual funds
and portfolio or investments in other companies in excess of 20% of banks own paid
up capital and services.

The banks would be required to use modern infrastructure facilities in office

equipment, computer, telecommunications etc.

1.1.4 Reserve Bank of India

Bank of India RBI is the central banking and monetary authority of India. It performs
central banking functions and controls all the other banks in the country. It was
established on April 1, 1935 in accordance with the provisions of the RBI Act, 1934. The
central office of RBI is at Mumbai. Though originally privately owned, since
nationalization in 1949 it is fully owned by the government of India.

Figure 1.1:-Banks under RBI

The Preamble of RBI prescribes the objective as:

To regulate the issue of bank notes and keeping of reserves with a view to securing
monetary stability in India and generally to operate the currency and credit system of the
country to its advantage.

The Functions of RBI includes:

Note Issue:
The RBI has sole right to issue bank notes and coins in India.
Bankers bank:
Issues banking licenses and permits banks to open branches.
Issues directions to the banks.
It also passes orders requiring banks to carry out specific instructions.
Exercises control over the top management in banks.
Keeps in certain percentage of the banks deposits as reserve with itself.
Gives refinance support to the banks through emergency advances and bill
rediscounting. Acts as a clearing house for banks.
Banker to the government:
Transacts all the financial business of the government.
Acts as advisor to the government on important economic and financial matters.
Maintains money remittances, cash balances and the treasury chest of the
government.
Banking as a Service
One of the major trends in recent years has been the dramatic growth of services. The
growing importance of service sector in the economy has forced academic interest
towards the field. Services are varied and distinctive enough to be followed in their
marketing and management.

1.1.5 Regional Rural Banks in India

Rural banking in India started since the establishment of banking sector in India. Rural
Banks in those days mainly focussed upon the agro sector. Regional rural banks in India
penetrated every corner of the country and extended a helping hand in the growth process
of the country.

SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI is
spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North
East. The total number of SBIs Regional Rural Banks in India branches is 2349 (16%).
Till date in rural banking in India, there are 14,475 rural banks in the country of which
2126 (91%) are located in remote rural areas.
Apart from SBI, there are other few banks which functions for the development of the
rural areas in India. Few of them are as follows.
Haryana State Cooperative Apex Bank Limited
The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK
plays a vital role in rural banking in the economy of Haryana State and has been
providing aids and financing farmers, rural artisans, agricultural labourers, entrepreneurs,
etc. in the state and giving service to its depositors.
NABARD
National Bank for Agriculture and Rural Development (NABARD) is a development
bank in the sector of Regional Rural Banks in India. It provides and regulates credit and
gives service for the promotion and development of rural sectors mainly agriculture,
small scale industries, cottage and village industries, handicrafts. It also finance rural
crafts and other allied rural economic activities to promote integrated rural development.
It helps in securing rural prosperity and its connected matters.
Sindhanur Urban Souharda Co-operative Bank
Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK is the
first of its kind in rural banks of India. The impressive story of its inception is interesting
and inspiring for all the youth of this country.
United Bank of India
United Bank of India (UBI) also plays an important role in regional rural banks. It has
expanded its branch network in a big way to actively participate in the developmental of
the rural and semi-urban areas in conformity with the objectives of nationalization.
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10

Syndicate Bank
Syndicate Bank was firmly rooted in rural India as rural banking and have a clear vision
of future India by understanding the grass root realities. Its progress has been abreast of
the phase of progressive banking in India especially in rural banks.

1.2 Introduction to the project

Financial inclusion, or extending the benefits of banking to the weaker sections, is the
latest dictum for bankers. They used to call it mass banking, as opposed to banking for
the classes. It is a concept that led to bank nationalization, to the setting up of thousands
of rural branches, the extension of loans to small farmers and artisans. But when that
model collapsed amidst a rising tide of bad debts, and class banking became the rage, a
new term had to be found for taking banking to the poor. They now call it financial
inclusion.
Financial inclusion, or extending the benefits of banking to the have-nots, is the latest
buzzword among bankers. So much so, that it was the theme for this years annual toplevel bankers meet, Bancon 2006. The prime minister has said it should be part of policy,
the finance minister has waxed eloquent about it and the Reserve Bank of India (RBI) has
set up committees to promote it. It is integral to the government efforts to extend the
benefits of growth to a broader section of the population. But it is not all hype a new
model of rural banking is being developed with the help of intermediaries such as selfhelp groups and microfinance institutions, while banks are exploring new ways to use
technology to lower the cost of delivering rural banking services. The concern is that
although credit is growing at a sizzling rate, large sections of the population are excluded
from that growth. It is because of bank nationalization that gave a push to rural credit,
and the institutional sources of credit such as banks and co-operative societies are unable
to meet the farmers needs. Even more worrying is the spate of farmer suicides because
they couldnt repay loans. The information also show that the credit and deposit growth
in recent years has been lop-sided, and much of the growth has occurred in the
metropolitan centers. As a matter of fact, the share of both deposits and credit in
metropolitan areas is now higher than it was earlier. However, the share of cities in credit
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may be exaggerated because, quite often, the credit is taken at the head office of a
company situated in a city but utilized elsewhere. To take care of that effect, it is useful to
turn to the RBIs data on Outstanding Credit of Scheduled Commercial Banks According
to the Place of Utilization. But, even in terms of this classification, the share of urban
and metropolitan centers in total credit has gone up.
The proportion of lending to small borrowers has gone up from 1996, but it is still well
below the level reached in 2000. Also, even among small borrowers, the proportion of
credit being disbursed in metropolitan areas has been growing. One reason for the loss of
credit share in rural areas could be that the rapid growth of retail credit in recent years has
bypassed the rural sector. The distribution of personal loans didnt undergo much change
between 1996 and 2000. Post 2000, however, when the retail revolution in banking took
off, there is a clear divide the share of rural and semi-urban areas has gone down,
while the share of cities has gone up. Obviously, most of the growth in housing and other
personal loans has happened in the metropolises.

Cities have cornered the lions share of the benefits of growth. Also, there has been some
backsliding on the push to rural and small scale credit since liberalization. But the main
problem is not of declining relative share in credit, it is the lack of access to banking.
More than half of the Indian population suffers from financial exclusion. Only the extent
varies from state to state. The north-eastern states, Uttaranchal and Jharkhand are some
regions where over 75 per cent of the population is financially excluded, while Andhra
Pradesh is the most developed in this regard with less than 25 per cent excluded. Such a
high level of financial exclusion obviously imposes social costs. In the rural areas, for
instance, the increasing dependence on moneylenders may force cultivators to sell off
their land or could lead to other socially undesirable practices such as bonded labour.
The subsequent rural push was nothing but an attempt to increase financial deepening and
inclusion. Several programs have certainly led more and more people to access bank
services.

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The problem is rural banking turned out to be unviable for a number of reasons. Among
them were the high cost of posting bank personnel to rural areas, the lack of local
knowledge of bank staff, too much documentation, bureaucratic procedures, corruption
and lack of flexibility, such as not giving consumption loans. Although there is no doubt
that direct agricultural lending made a difference to millions of farmers, the operations in
most areas turned out to be unviable for banks. Political interference in bank lending was
very high. Non-performing assets, especially in lending to small scale industries, were
also large. This time around, although the goal is the same, there is a sea change in the
way banks are going about the job. For one, they are increasingly relying on
intermediaries such as micro-credit institutions, franchisees and self-help groups to fund
borrowers. New products such as kisan credit cards or Gramin Tatkal cards (for project
finance) are being used. NGOs are increasingly being involved in bank schemes, such as
linking farmers with supply chains. Micro mutual funds, micro insurance and using the
latest technology to overcome the difficulties posed by the illiteracy of many borrowers
are other steps being taken by several Banks. The key to the transformation, of course, is
to ensure that rural banking becomes viable.

Although microcredit has proved to be a boon to millions, it is still difficult to make it a

sustainable business proposition completely free of subsidies, because of the high
transaction and monitoring costs. Critics also say that almost half of the microcredit
extended in India is for consumption. More damaging has been the argument that
financial liberalisation, by introducing more competition into the sector, leads to
exclusion, because banks can no longer afford to cross-subsidize the poor. According to
this argument, it is natural for banks to prefer lending to the affluent sections instead of
spending time and resources in trying to expand the banks reach to the poor. Critics say
that it is not the function of banks to extend bank lending to the underprivileged. Rather,
it is the duty of the state to find ways and means to revive agriculture in the rural areas
instead of forcing banks to lend. Banks will lend as soon as they smell a business
opportunity. Nobody has to tell banks to expand in rural Punjab they do it of their own
accord because they know it is a viable business proposition.
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As more and more of rural India becomes plugged into the commercial circuit, which will
happen increasingly as a result of rising incomes, better infrastructure and the
modernization of agriculture, banks will, in their own interest, further expand their
business into the countrys hinterland.

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15

REVIEW OF LITERATURE
After conducting a research on attitude of rural people towards private banks the reviews
are as follows:
Desai (2010) discussed in aggregate terms the performance of the formal rural financial
market (RFM) in India. Considering three different aspects of this market several criteria
are applied for this purpose. Thee three aspects are: (1) Sectoral mobilization of deposits
and sectors contribution to national income, (2) rural loan-term structure, extent of
financial independence, default rate and the distribution of rural credit and (3) purchasing
power of rural credit and the distribution of benefits from the concessional lending rates
among different sized farms. Considering the criteria related to the first aspect the recent
performance of the RFM is impressive. However, growth in the factors associated with
these criteria seems to have now stagnated. There also appears insignificant relationship
of these factors with the real rate of interest. But, judged from the viewpoints of the
criteria related to the second and the third aspect, the performance leaves much to be
desired. The aggregate performance of the formal segment of the RFM is examined by
utilizing data for 1961-62, 1967-68-69, and 1971-72 through 1976-77.
Bhattacharjee, Desai and Gopal (2010) examined the viability of rural banking by the
Nationalized Commercial Banks and the factors influencing it. The viability was
examined using both cost and profitability analyses. Theory of costs is used for the
former, while multi-variate econometric model is formulated for the latter. Factors
influencing viability in both the analysis are classified into innovative and non-innovative
based on unique characteristics of rural banking in India. The results show that rural
banking is viable and it could be further improved by reaping scale economies rather than
raising interest rate. But this would require more decentralized, autonomous and
accountable form of rural banking.
Sathye (2010) examined whether foreign banks presence has helped reduce concentration
in the Indian banking market and thus increased competition among banks. Concentration
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has been measured using the Herfindahl-Hirschman Index of concentration and regressed
on a set of explanatory variables derived from relevant theory and prior studies. A
dummy variable has been added to measure the impact of ownership on concentration to
answer our research question most directly. The results of the study show that entry of
foreign banks did not have significant impact on reducing the level of concentration in
the Indian banking market. This may be because of many restrictions still in place on
foreign bank activities in India. Hence the current efforts being made to establish level
playing field among all banks need to be continued so as to make Indian banking market
competitive.
Northcott (2011) reviewed the theoretical and empirical literature to examine the
traditional perception that the following trade-off exists between economic efficiency and
stability in the banking system: a competitive banking system is more efficient and
therefore important to growth, but market power is necessary for stability in the banking
system. That this trade-off exists is not clear. Market power can have positive
implications for efficiency, and the potentially negative implications of competition on
stability may be manageable through prudential regulation. Neither extreme (perfect
competition nor monopoly) is likely ideal. Rather, it may be optimal to facilitate an
environment that promotes competitive behavior (contestability), thereby minimizing the
potential costs of market power while realizing benefits from any residual that remains. It
can be very difficult to assess the contestability of a banking market. Recent work
suggests that the number of banks and the degree of concentration are not, in themselves,
sufficient indicators of contestability. Other factors play a strong role, including
regulatory policies that promote competition, a well-developed financial system, the
effects of branch networks, and the effect and uptake of technological advancements.
Sriram and Parhi (2012) discussed the findings of a primary survey carried out in one
village in Udaipur District of Rajasthan. The objectives of the study were to understand
the financial flows of the rural poor and to have an insight into their financial status. Data
was collected from 36 households classified as below-poverty-line on various aspects
through a questionnaire. The findings indicate that the overall levels of indebtedness of
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these poor families are not alarming, as they have sufficient assets. The poor borrow from
various sources to meet their needs. The most striking finding was that the poor resort to
borrowing from the local money lender even for asset purchase, while they stash away
their savings in earthen pots. Both these indicate the failure of the financial institutions in
capitalizing on a small market opportunity. Most of the borrowings particularly for social
consumption come from relatives the poor seem to be juggling around with loans that
cost heavily along with some interest free informal loans to manage their liquidity. The
findings also support the possibility of differential pricing of loan products using social
controls on end use monitoring this is evidenced by the controls exercised by relatives
in funding social consumption beyond certain limits. On the savings it was possible to
conclude that the poor look for security more than liquidity and returns as an attribute.
This study re-confirms the earlier findings that health related expenses are one of the
major causes of indebtedness amongst the poor.
Sriram (2013) studied about Sanghamithra Rural Financial Services. It traces the growth
of Sanghamithra from the time it was conceived till its completion of the fourth year of
operations. It maps out how the strategic positioning of Sanghamithra has evolved and
responded to external environment. It also traces the reasons for Sanghamithra to redefine its own role. Sanghamithra represents a unique experiment in the microfinance
sector. It has important lessons on how an intermediary organization can be structured,
the impact it could have on the banking system, its own growth and sustainability. It
raises issues of structuring organizations and also triggers a debate on whether the intent
should be for-profit or not-for-profit. We conclude while the intent is important to choose
the form of incorporation, while the nature of activities in itself does not dictate this
intent and the consequent incorporation. We also discuss the issue of taxability. While
there are arguments on the charitable nature of the operations of MFIs, we argue that
these arguments are usually open to interpretation. If an institution has tax-free status as a
non-negotiable part of its model, it may encounter regulatory roadblocks. This aspect is to
be factored, while examining similar experiments. It appears that access seems to be the
prime concern while we deal with rural credit. However the paper recognizes that this

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model is yet to build in a mechanism to collect savings of the clients. This is an issue
worth pondering while structuring such intermediary organizations.
Perdana (2013) reviewed some literatures on the mechanisms available for the poor in
managing risk. Lacking access to formal mechanisms of risk management, the poor rely
on informal mechanisms, which are built based on the existing social networks and trust.
But when the shocks are big or affecting the entire community, these informal
mechanisms may not be adequate. Some policy interventions are then required to help
improving the ability of poor people in managing risk. Policy intervention should aim to
provide access for the poor on saving, credit and insurance. Microfinance schemes have
been applauded as a successful best practice in providing access to saving and credit.
However, microfinance institutions still have some room for improvement by expanding
their role in providing insurance schemes.
Atif Mian (2014) studied how far does mobility of multinational banks solve problems of
financial development? Using a panel of 80,000 loans over 7 years, I show that greater
cultural and geographical distance between a foreign bank's headquarters and local
branches leads it to further avoid lending to "informationally difficult" yet fundamentally
sound firms requiring relational contracting. Greater distance also makes them less likely
to bilaterally renegotiate, and less successful at recovering defaults. Differences in bank
size, legal institutions, risk preferences, or unobserved borrower heterogeneity cannot
explain these results. These distance constraints can be large enough to permanently
exclude certain sectors of the economy from financing by foreign banks.
Sengupta (2015) studied that foreign entry and bank competition are modeled as the
interaction between asymmetrically informed principals: the entrant uses collateral as a
screening device to contest the incumbent's informational advantage. Both better
information ex ante and stronger legal protection ex post are shown to facilitate the entry
of low-cost outside competitors into credit markets. The entrant's success in gaining
borrowers of higher quality by offering cheaper loans increases with its efficiency (cost)
advantage. This paper accounts for evidence suggesting that foreign banks tend to lend
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more to large firms thereby neglecting small and medium enterprises. The results also
explain why this observed "bias" is stronger in emerging markets.
Cull, Martinez, Maria (2015) described the recent trends in foreign bank ownership in
developing countries, summarizes the existing evidence on the causes and implications of
foreign bank presence, and reexamines the link between banking crises and foreign bank
participation. Using data on the share of banking sector assets held by foreign banks in
over 100 developing countries during 1995-2002, the results show that countries that
experienced a banking crisis tended to have higher levels of foreign bank participation
than those that did not. Furthermore, panel regressions indicate that foreign participation
increased as a result of crises rather than prior to them. However, post-crisis increases in
foreign participation did not coincide with increased credit to the private sector, perhaps
because in many cases foreign banks acquired distressed banks.
Stijn, Neeltje (2016) studied that while institutional differences have been found to affect
country growth patterns, much has remained unexplained, including how economic actors
"overcome" institutional weaknesses and how internationalization helps or hinders
development. Banking is an institutionally-intensive activity and the location decision of
foreign banks provides a good test of how institutional differences are dealt with and how
they may affect economic choices. Specifically, the authors examine whether banks seek
out those markets where institutional familiarity provides them with a competitive
advantage over other foreign competitor banks. Using bilateral data on banking sector
foreign direct investment in all developing countries and controlling for other factors,
they find that competitive advantage is an important factor in driving foreign banks '
location decisions. The findings suggest that high institutional quality is not necessarily a
prerequisite to attract foreign direct investment in banking and that there are specific
benefits, as well as risks, to international financial integration between developing
countries.

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NEED, SCOPE AND OBJECTIVES OF THE STUDY

3.1 Need
The present study is carried out to study the attitude of rural people for private banking
services. No. study in the past has been done regarding rural peoples attitude towards
private sector banks. The need for this research arises to check the willingness of rural
people to avail the services provided by private banks.

3.2 Scope
The scope of the study was limited to Jalandhar area only.

3.3 Objectives of the Study

To check the awareness among rural people for private banks.
To study the perception and behavior of rural people for private banking services.
To check the willingness of rural people to avail the services of private banks.

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RESEARCH METHODOLOGY
Research methodology makes the most important contribution towards the enrichment of
study. In a research there are numerous methods and procedure to be applied but it is the
nature of the problem under investigation that determines the adoption of a particular
method for all studies. Methods selected should always be appropriate to the problem
under investigation. The present study is carried out to study the attitude of rural people
towards Private banking services. This chapter describes the scope of research work,
research design, data collection method, sampling design, data design, data analysis and
finally limitation of the project.

4.1 Research Design

Research design states the conceptual structure with in which research is to be conducted.
A research is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. The study is based on Descriptive research design, where Descriptive
researches are those studies that are concerned with determining the perceptions and
behavior of people that is description of something is the major objective of the study.

4.2 Sampling Design

Sampling Plan:
Sampling is an effective set in the collection of primary data and has great results on the
quality of results. The sampling plan includes the Universe, Population, Sampling Unit
and Sample size.
Universe:
All the people residing in rural areas or villages in India and who have or have not access
to the financial services.
Population:
All the people residing in rural areas or villages in Punjab, who have or have not access
to the financial services.

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Sampling unit:
A person residing in rural area or village in Jalandhar district, who have or have not
access to the financial services.
Sampling Technique:
In the present study consideration, Non-probability Quota sampling is used to collect the
sample. It is Quota sampling because the respondents are divided in four control
categories or quotas of population elements and then the sample elements are selected
based on convenience and judgment. The respondents were interviewed with structured
questionnaires.
Sample Size:
The sample size in this present study is 100 respondents. Which are categorized in four
parts as respondents from the villages situated in East, West, North and South of the
Jalandhar district. The areas are further categorized as;
East Dhanowali, West - Khusropur
North Dakoha, South Nangal Krar Khan

4.3 Data Collection Method

In this study primary data and secondary data were used for the research purpose.
Primary data was collected by survey with the help of questionnaire. The study was
conducted with the help of structured questionnaires containing close-ended and open
ended questions. The questionnaire was administrated by the personal interview i.e.
questions were asked from the respondents in a face to face meeting.
Secondary data was collected from reports and various web sites.

4.4 Limitations of the Study

The findings of the study are based on the information provided and opinions of the
respondents. Efforts have been made to make the study as accurate as possible, 100%
accuracy can not be claimed because of the following reasons: 1. The sample size to study the customers perception was too small to get right results
but time and source constraint limited the size of the sample.
2. The scope of the study was limited to Jalandhar District only.
23

3. Sample was drawn by Quota sampling, so the possibilities of sample error cannot be
ruled out.
4. Some of the sampling and non-sampling error may have crept into the study.
5. The accuracy of the result is also limited by the reliability of tools of investigation,
data analysis and knowledge of the researcher and the biasness of the respondents.

24

DATA ANALYSIS AND INTERPRETATION

Table 5.1: Demographic Profile
Demographic Factors
Age
Below 20
21-30
31-40
Above 40
Total
Occupation
Agriculture
Services
Micro Enterprises
Others

Total

No. of Respondents

Percentage

3
20
45
32
100

3
20
45
32
100

26
30
25
19
100

26
30
25
19
100

25

Q1. Do you have an account in private sector bank?

Table 5.2: Account in Private Sector Banks
Options
Yes
No
Total

No. of Respondents
38
62
100

Percentage
38
62
100

Figure 5.1: Account in Private Sector Banks

70

62

60
50
40

38

30
20
10
0
Yes

No

Analysis and Interpretation

From the above table and graph it is quite clear that 38% respondents have an account
in private sector banks.

26

Q2. Are you aware of the following services provided by private banks?
Table 5.3 Awareness of the Various Services Provided by Private Banks
Services
Credit Cards
Loans
Mortgages
Bancassurance
Total

No. of Respondents
25
40
25
10
100

Percentage
25
40
25
10
100

Figure 5.2 Awareness of the Various Services Provided by Private Banks

45

40

40
35
30
25

25

25

20
15

10

10
5
0
Credit Cards

Loans

Mortgages

Bancassurance

Analysis and Interpretation

In this study 25% each of the respondents are aware of credit card and mortgage
services, 40% are aware about loan facilities and only 10% respondents are aware
about bancassurance services provided by private banks.

27

Q3. Ratings given by the respondents for various services.

A) Account Facility (Savings, Current, NRI)
(1= Strongly Agree, 2= Agree, 3= Undecided, 4= Disagree, 5= Strongly Disagree)
Table 5.4 Account Facility
Statement 1
Best way to secure
Rates

money
No. of

Statement 2
Easy withdrawal of money
Rates

No. of

Respondent

Respondent

s
74
14
11
1
0

s
33
60
3
4
0

1
2
3
4
5

1
2
3
4
5

Statement 3
Minimum balance
Rates

maintenance
No. of
Respondents

1
2
3
4
5

8
35
24
29
4

Calculation of Mean score:

1 Statement: 1*74+2*14+3*11+4*1+5*0 = 139 = 1.39
100

100

2 Statement: 1*33+2*60+3*3+4*4+5*0 = 178 = 1.78

100

100

3 Statement: 1*8+2*35+3*24+4*29+5*4 = 286 = 2.86

100

100

Analysis and Interpretation

In this the rates are given such as 1 for strongly agree, 2 for agree, 3 for undecided, 4
for disagree and 5 strongly disagree for And mean scores have been calculated and it
has been analyzed that for 1 statement respondents are strongly agree for 2 statement
respondents are agree and for 3 statement respondents are not sure and it is
undecided.
B) Locker Facility
Table 5.5 Locker Facility
28

Statement 1
Statement 2
Safest too to secure assets
No fear of Robbery
Rates
No. of
Rates
No. of

1
2
3
4
5

Respondents

Respondent

39
39
20
1
1

s
48
36
10
4
2

1
2
3
4
5

Statement 3
No use of this facility
Rates
No. of
Respondents
1
2
3
4
5

4
12
35
38
11

Calculation of Mean score:

1 Statement: 1*39+2*39+3*20+4*1+5*1 = 186 = 1.86
100

100

2 Statement: 1*48+2*36+3*10+4*4+5*2 = 176 = 1.76

100

100

3 Statement: 1*4+2*12+3*35+4*38+5*11 = 340 = 3.40

100

100

Analysis and Interpretation

In this the mean scores have been calculated and it has been analyzed that for 1 and 2
statements respondents are agree and for 3 statement respondents are not sure and it is
undecided.

29

C) Fixed Deposit
Table 5.6 Fixed Deposit
Statement 1
Withdrawal of money in
Rates

1
2
3
4
5

Emergency
No. of

Statement 2
Tax planning and Tax
Rates

Relieves
No. of

Respondents

Respondent

42
37
18
3
0

s
45
27
20
6
2

1
2
3
4
5

Statement 3
Interest Rates are not
Rates

Impressive
No. of
Respondents

1
2
3
4
5

7
11
22
44
16

Calculation of Mean score:

1 Statement: 1*42+2*37+3*18+4*3+5*0 = 182 = 1.82
100

100

2 Statement: 1*45+2*27+3*20+4*6+5*2 = 193 = 1.93

100

100

3 Statement: 1*7+2*11+3*22+4*44+5*16 = 351 = 3.51

100

100

Analysis and Interpretation

In this the mean scores have been calculated and it has been analyzed that in 1 statement
the score is 1.82, that is respondents are agree and in 2 statement the score is 1.93 that is
respondents are agree and in 3 statement the respondents are not sure as the score is 3.51.

30

D). ATMs and Debit Card

Table 5.7 ATMs and Debit Card
Statement 1
Best way to withdraw
Rates

money
No. of

Statement 2
Help to customers in odd
hours
Rates

No. of

Respondents
1
2
3
4
5

41
30
20
5
4

Statement 3
No need of it, it is only a
Rates

problem
No. of

Respondent
s
45
25
23
3
4

1
2
3
4
5

Respondents
1
2
3
4
5

7
10
23
37
23

Calculation of Mean score:

1 Statement: 1*41+2*30+3*20+4*5+5*4 = 201= 2.01
100

100

2 Statement: 1*45+2*25+3*23+4*3+5*4 = 196 = 1.96

100

100

3 Statement: 1*7+2*10+3*23+4*37+5*23 = 360 = 3.60

100

100

Analysis and Interpretation

In this the mean scores have been calculated and it has been analyzed that in 1 statement
and

2 statement the scores are 2.01 and 1.96 respectively that in both cases the

respondents are agree and in 3statement the score is 3.60 and the respondents are disagree
for this statement.

31

E). Credit Cards and Gold Cards

Table 5.8 Credit Cards and Gold Cards
Statement 1
Helpful in over
withdrawal of money
Rates
No. of

Statement 2
Safe way to carry huge
money
Rates

No. of

Respondents
1
2
3
4
5

30
27
30
7
6

Statement 3
Unnecessary charges are
Rates

imposed
No. of

Respondent
s
48
21
19
7
5

1
2
3
4
5

Respondents
1
2
3
4
5

12
48
26
6
8

Calculation of Mean score:

1 Statement: 1*30+2*27+3*30+4*7+5*6 = 232= 2.32
100

100

2 Statement: 1*48+2*21+3*19+4*7+5*5 = 200 = 2.00

100

100

3 Statement: 1*12+2*48+3*26+4*6+5*8 = 250 = 2.50

100

100

Analysis and Interpretation

In this the mean scores have been calculated and it has been analyzed that in 1, 2 and 3
statements the scores are 2.32, 2.00 and 2.50 respectively that in all the cases the
respondents are agree.

32

F) Loans and Mortgage

Table 5.9 Loans and Mortgage
Statement 1
Flexible sources to
borrow money
Rates
No. of

Statement 2
Help people to acquire
Rates

necessities
No. of

Respondents
1
2
3
4
5

42
29
22
4
3

Statement 3
High securities are required
Rates

Respondent
s
50
24
21
3
2

1
2
3
4
5

No. of
Respondents

1
2
3
4
5

3
16
36
35
10

Calculation of Mean score:

1 Statement: 1*42+2*29+3*22+4*4+5*3 = 197= 1.97
100

100

2 Statement: 1*50+2*24+3*21+4*3+5*2 = 183 = 1.83

100

100

3 Statement: 1*3+2*16+3*36+4*35+5*10 = 333= 3.33

100

100

Analysis and Interpretation: In this the mean scores have been calculated and it has
been analyzed that in 1 statement and

2 statement the scores are 1.97 and 1.83

respectively that in both cases the respondents are agree and in 3statement the score is
3.33 and the respondents are not sure of this statement.

33

G) Bancassurance
Table 5.10 Bancassurance
Statement 1
Helpful in securing future
from uncertainties
Rates
No. of

Statement 2
Helpful in tax planning
Rates

No. of

Respondents
1
2
3
4
5

40
30
21
6
3

Statement 3
No use, as far as LIC exists
Rates

Respondent
s
44
32
17
3
4

1
2
3
4
5

No. of
Respondents

1
2
3
4
5

6
7
33
36
18

Calculation of Mean score:

1 Statement: 1*40+2*30+3*21+4*6+5*3 = 202 = 2.02
100

100

2 Statement: 1*44+2*32+3*17+4*3+5*4 = 191 = 1.91

100

100

3 Statement: 1*6+2*7+3*33+4*36+5*18 = 353 = 3.53

100

100

Interpretation: In this the mean scores have been calculated and it has been analyzed
that in 1 statement and 2 statement the scores are 2.02 and 1.91 respectively that in both
cases the respondents are agree and in 3statement the score is 3.53 and the respondents
are not sure of this statement.

34

Q4. Chances that the respondents will avail the services of private banks.
(1= Definitely will, 2= Probably will, 3= Probably will not, 4= Definitely will not)
Table 5.11 Chances that the Respondents will Avail the Services
Options
I definitely will avail them
I probably will avail them
I probably will not avail them
I definitely will not avail them
Total

No. of Respondents
9
28
34
29
100

Percentage
9
28
34
29
100

Figure 5.3 Chances that the Respondents will Avail the Services

40
35
30
25
20
15
10
5
0

34

28

29

Calculation of Mean score:

9*1+ 28*2+ 34*3+29*4 = 283 = 2.83
100

100

Analysis and Interpretation: In this the rates have been given as 1= Definitely will, 2=
Probably will, 3= Probably will not, 4= Definitely will not and the mean score has been
calculated and the score 2.83 clearly states that respondents probably will not avail the
services of the Private banks.

35

Q5. What are the reasons to avail the services of private banks?
Table 5.12 Reasons to Avail the Services of Private Banks
Options
Trustworthiness
Safety/Security
Easy Availability
Lower Rates of Interest
Good Risk Covers
Best Services and Plans
Total

No. of Respondents
30
14
13
13
15
15
100

Percentage
30
14
13
13
15
15
100

Figure 5.4 Reasons to Avail the Services of Private Banks

35
30
25
20
15
10
5
0

30
14

13

13

15

15

Analysis and Interpretation

In this study most of the respondents rely on the trustworthiness. And the other factors
like safety, risk covers, best services and plans do not inspire them to deal with the bank
and they are not satisfied for risk covers and interest rates.

36

Q6. What are the reasons for not availing the services of private banks?
Table 5.13 Reasons for not availing the Services
Options
Lack of Knowledge
High Security
More Documentation
High Interest Rates
Long Procedures
Poor Services and Plans
Total

No. of Respondents
47
25
31
28
38
33
100

Percentage
47
25
31
28
38
33
100

Figure 5.5 Reasons for not availing the Services

50
45
40
35
30
25
20
15
10
5
0

47
25

38

31

28

33

Analysis and Interpretation

In this study most of the respondents are not availing the services of private banks
because of lack of knowledge and long procedures involved in services. They also
consider the services poor and huge documentation involved in acquiring the services is
another problem for them.

37

Q7. Comparison of traditional banks and private banks.

Table 5.14 Comparison of Traditional Banks and Private Banks
Option 1
Good/Bad

Option 2
Approachable/

1
2
3
4
5

1
2
3
4
5

52
33
10
5
0

Unapproachable
2
6
20
46
26

Option 3
Affordable/
1
2
3
4
5

Unaffordable
1
8
12
50
29

Option 4
Useful/Useless
1
2
3
4
5

42
37
9
6
6

Calculation of Mean score:

Option 1: 1*52+2*33+3*10+4*5+5*0 = 168 = 1.68
100

100

Option 2: 1*2+2*6+3*20+4*46+5*26 = 388 = 3.88

100

100

Option 3: 1*1+2*8+3*12+4*50+5*29 = 398 = 3.98

100

100

Option 4: 1*42+2*37+3*9+4*6+5*6 = 287 = 2.87

100

100

Analysis and Interpretation

In option 1 (good/bad) respondents consider the services of private banks as good
because the score is 1.68 and it is more close to the option good on the scale. In option 2
(approachable/unapproachable)

respondents

consider

the

private

banks

as

unapproachable as the score is 3.88 and it is more towards the unapproachable option on
the scale. In option 3 (affordable/unaffordable) Private banks as unaffordable as
compared to traditional banks as the score is 3.98 and it is more nearer to unaffordable
option on the scale. In option 4 (useful/useless) respondents are not sure about whether
they are useful or not as the score is 2.87 that is 3 and hence it lies in the middle.
Q8. What is the opinion of rural people towards private banks?
Table 5.15 Opinion of Rural People towards Private Banks
38

Options
Earn Profits
Help Rural People
Total

No. of Respondents
68
32
100

Percentage
68
32
100

Table 5.6 Opinion of Rural People towards Private Banks

80
70

68

60
50
40

32

30
20
10
0
Earn Profits

Help Rural People

Analysis and Interpretation

Most of the respondents in this research study have unsatisfactory attitude towards
Private banks and they have the opinion that do not help rural people rather they have
come up with the motives of earning profits only 32 respondents have the opinion that
private banks help rural people.

39

FINDINGS OF THE STUDY

This study was conducted to know the attitude of the rural people for private banks and
the services provided by the private banks to rural people. The findings were as follows:
38% respondents have an account in private sector banks.
25% each of the respondents are aware of credit card and mortgage services, 40% are
aware about loan facilities and only 10% respondents are aware about bancassurance
services provided by private banks.
Account Facility (Savings, Current, NRI): The rates are given such as 1 for
strongly agree, 2 for agree, 3 for undecided, 4 for disagree and 5 strongly disagree for
And mean scores have been calculated and it has been analyzed that for 1 statement
respondents are strongly agree for 2 statement respondents are agree and for 3
statement respondents are not sure and it is undecided.
Locker Facility : The mean scores have been calculated and it has been analyzed that
for 1 and 2 statements respondents are agree and for 3 statement respondents are not
sure and it is undecided.
Fixed Deposit : The mean scores have been calculated and it has been analyzed that
in 1 statement the score is 1.82, that is respondents are agree and in 2 statement the
score is 1.93 that is respondents are agree and in 3 statement the respondents are not
sure as the score is 3.51.
ATMs and Debit Card : The mean scores have been calculated and it has been
analyzed that in 1 statement and 2 statement the scores are 2.01 and 1.96 respectively
that in both cases the respondents are agree and in 3statement the score is 3.60 and
the respondents are disagree for this statement.
Credit Cards and Gold Cards : The mean scores have been calculated and it has
been analyzed that in 1, 2 and 3 statements the scores are 2.32, 2.00 and 2.50
respectively that in all the cases the respondents are agree.
Loans and Mortgage : the mean scores have been calculated and it has been
analyzed that in 1 statement and 2 statement the scores are 1.97 and 1.83 respectively
that in both cases the respondents are agree and in 3statement the score is 3.33 and
the respondents are not sure of this statement.

40

 Bancassurance : The mean scores have been calculated and it has been analyzed that
in 1 statement and 2 statement the scores are 2.02 and 1.91 respectively that in both
cases the respondents are agree and in 3statement the score is 3.53 and the
respondents are not sure of this statement.
34% respondents probably will not avail services and 29% definitely will not avail
services of the private banks.
Most of the respondents rely on the trustworthiness. And the other factors like safety,
risk covers, best services and plans do not inspire them to deal with the bank and they
are not satisfied for risk covers and interest rates.
Most of the respondents are not availing the services of private banks because of lack
of knowledge and long procedures involved in services. They also consider the
services poor and huge documentation involved in acquiring the services is another
problem for them.
In option 1 (good/bad) respondents consider the services of private banks as good
because the score is 1.68 and it is more close to the option good on the scale. In
option 2 (approachable/unapproachable) respondents consider the private banks as
unapproachable as the score is 3.88 and it is more towards the unapproachable option
on the scale. In option 3 (affordable/unaffordable) Private banks as unaffordable as
compared to traditional banks as the score is 3.98 and it is more nearer to
unaffordable option on the scale. In option 4 (useful/useless) respondents are not sure
about whether they are useful or not as the score is 2.87 that is 3 and hence it lies in
the middle.
Most of the respondents in this research study have unsatisfactory attitude towards
Private banks and they have the opinion that do not help rural people rather they have
come up with the motives of earning profits only 32 respondents have the opinion that
private banks help rural people.

41

42

7.1 CONCLUSION
The study was conducted to have an in-depth knowledge. A survey with the help of the
questionnaire was carried out to work out ways to lift people out of poverty and bring
them within the ambit of development economics. Millions of very poor people utilize
and avail services, even though they possess few assets or money. Millions are still not
yet using any form of sustainable or reliable finance, with many of the existing providers
of financial services and assistances. Linkages between rural people or formalized
financial institutions create new possibilities for delivering microfinance to the poor.
Formal financial institutions have extensive infrastructures and systems and access to
funds, they are usually further removed from rural or poor clients, making it very difficult
to obtain adequate information and reducing risks.

In contrast, informal financial

institutions operate close to rural clients, possess quite good information and enforcement
mechanisms and are typically more flexible and innovative. But informal institutions lack
resources and infrastructure to serve clients.

43

7.2 RECOMMENDATIONS
Although the Private Bank are performing very well in big cities, still Banks should
concentrate more on rural segments of population as rural banking is still somewhat a
mystery and is underserved. Private Banks should take care of the needs and
requirements of poor people. Besides this some other suggestions are as follows:

Banks should come up with more branches in those areas where there is no branch
as in this study the result is drawn that so many villages do not have a single bank. If
foreign banks have to comply with the regulations laid by RBI on the restriction of
the branches in a city. Then at least other private and public sector banks can come up
with the branches in villages where there is no bank at all.

Banks should provide people friendly environment. The facilities and services
should be such that they are able to meet the necessities and needs of the people and
people should not feel scared to deal with the Private banks. Banks should start
providing services like Biometric ATMs, Kisan credit cards, Internet Kiosk schemes
for rural people, Crop and Equipment Loans, Local Language ATMs etc. So that
people can avail the services easily and without many hindrances.

There is also need to change the thinking and attitude of the rural people towards
Private banks. They perceive Private banks as profit earning businesses, no doubt
banks are earning profits but they are providing very useful and beneficial services
like crops loans and crop insurances. Rural people also think that Private banks are
out of their range and they are basically meant for urban people and high societies.
So, this attitude needs to be changed. Banks should do campaigns and should come
up with personal interaction programs where all the problems can be tackled relating
to language barriers and lack of knowledge.

44

45

REFERENCES
Atif Mian .(2014). Distance Constraints: The Limits of Foreign Lending in Poor
Economies. Article provided by American Finance Association in its journal The
Journal of Finance, 2006.
Bhattacharjee Sourindra, Desai B M, Naik Gopal .(2010). Viability of Rural Banking
by The Nationalized Commercial Banks in India. IIMA Working Papers with number
1380.
Cull, Martinez, Maria .(2015). Competition in Banking: A Review of the Literature.
Bank of Canada in its series Working Papers with number 04-24.
Desai B M .(2010). Rural Banking in India - It's Performance and Problems. Indian
Institute of Management Ahmedabad, Research and Publication Department with
number 282 , 1979.
Northcott .(2011) . Location decisions of foreign banks and competitive advantage.
Paper provided by The World Bank in its series Policy Research Working Paper
Series with number 4113.
Perdana .(2013). Foreign bank participation and crises in developing countries.
Paper provided by The World Bank in its series Policy Research Working Paper
Series with number 4128.
Sathye, M .(2010) The Impact of Foreign Banks on Market Concentration: The Case
of India. Provided by Euro-American Association of Economic Development in its
journal Applied Econometrics and International Development, 2002.

Sengupta .(2015). Foreign entry and bank competition. Paper provided by Federal
Reserve Bank of St. Louis in its series Working Papers with number 2006-043.
Sriram M S, Parhi Smita .(2012). Financial Status of Rural Poor: A Study in Udaipur
Distric., Paper provided by Indian Institute of Management Ahmedabad, Research
and Publication Department in its series IIMA Working Papers with number 200402-01.
Sriram M S .(2013). Building Bridges Between the Poor and the Banking System.
Indian Institute of Management Ahmedabad, Research and Publication Department
with number 2004-05-02.

46

 Stijn, Neeltje .(2016).

Risk Management for the Poor and Vulnerable.

Paper

provided by East Asian Bureau of Economic Research in its series Macroeconomics

Working Papers with number 527.

47

QUESTIONNAIRE
Dear Sir/ Madam,
I am a student of MBA. I am conducting a research on Attitude of Rural People towards
Private Banks. I need your kind support to carry on my project by providing me some
information. So please fill in the following Questionnaire.
Q 1: Do you have an account in private banks?
( ) Yes

( ) No

Q 2: Are you aware of the following services being provided by Private banks?
Please tick,
( ) Credit Cards and Gold Cards
( ) Loans
( ) Mortgage
( ) Bancassurance
Q 3: Please answer each of the following statements using the following rating scale;
(1= Strongly Agree, 2= Agree, 3= Undecided, 4= Disagree, 5= Strongly Disagree)
a). Account Facility (Savings, Current, NRI)
Statement

Rating

1. It is the best way to secure money for an unspecified period of time

2. The depositor can easily withdraw money through cheques or in cash

3. It needs maintenance of minimum balance p.m. which is a problem

b). Lockers Facility

Statement

Rating

1. It is the safest tool to secure the assets

2. There is no fear of assets being stolen or looted

3. It is of no use as it blocks the assets

48

c). Fixed Deposit

Statement

Rating

1. It is useful for withdrawal of money in times of emergency

2. It is helpful in the tax planning and getting tax relieves

3. The interest rates are not very impressive

d). ATMs and Debit Card

Statement

Rating

1. I feel it is the best way to withdraw and deposit money

2. It is a help to the customer in odd hours

3. There is no need of it, it is only a problem

e). Credit Cards and Gold Cards

Statement

Rating

1. It is very helpful as we can overdraw money

2. It is good and safe way to carry huge money with you

3. There are unnecessary charges which are imposed on customers

f). Loans and Mortgage

Statement

Rating

1. They are the flexible sources to borrow money

2. They help people to acquire necessities which they cant acquire

3. It needs high securities, which is a big trouble

g). Bancassurance
Statement

Rating

1. It is helpful in securing future from uncertainties

2. It is helpful in tax planning and provides good returns on investment

3. There is no use of Bancassurance, as far as LIC exists

49

Q 4: Which of the following g statements best describes the chance that you will
avail the services of Private banks?
( ) I definitely will avail them
( ) I probably will avail them
( ) I probably will not avail them
( ) I definitely will not avail them
If your choice is option 1, 2 in the above question please, move to question no. 7 and if
your option is 3, 4 please move to question no. 8.
Q 5: What are the reasons that you will avail the services of Private banks?
( ) Trustworthiness

( ) Safety/Security

( ) Easy Availability

( ) Lower Rates of Interest

( ) Good Risk Covers

( ) Best Services and Plans

Q 6: What were the reasons for not availing the services of Private banks?
( ) Lack of knowledge/Language Problems ( ) High Security
( ) More Documentation

( ) High interest rates

( ) Long procedures

( ) Poor Services and Plans

Q 7: Compared to Traditional banks, Private Banks according to you are?

Good

(1)

(2)

(3)

(4)

(5)

Bad

Approachable (1)

(2)

(3)

(4)

(5)

Unapproachable

Affordable

(1)

(2)

(3)

(4)

(5)

Unaffordable

Useful

(1)

(2)

(3)

(4)

(5)

Useless

Q 8: What opinion do you have for Private banks?

That they are providing facilities because;
( ) They want to earn profits
( ) They want to help rural people
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Personal Information:
Name

Age

: Gender :

Address

:
.
.

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