Summer Internship Report On Current Account Facility of Central Bank of India

Summer Internship Report
On
Current Account Facility of

Central Bank of India
By
GAURAV SINGH
A0101909427
MBA Class of 2011
Under the Supervision of

Dr. Akhil Swami
Professor
Department of Finance
In Partial Fulfillment of Award of Master of Business Administration
AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2010
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DECLARATION
I, Gaurav Singh student of Masters of Business Administration from Amity Business School,
Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on
“Facility of Central Bank of India” as part of the course requirement.
I further declare that the information presented in this project is true and original to the best of
my knowledge.
Date: 16/03/09 Gaurav Singh
Enroll. No: A0101909427
Place: Noida MBA Class of 2011
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CERTIFICATE
I hereby certify that Gaurav Singh student of Masters of Business Administration at Amity
Business School, Amity University Uttar Pradesh has completed Summer Internship on “Current
Account Facility of Central Bank of India”, under my guidance.
Dr. Akhil Swami
(Professor)
Department of Finance
Acknowledgement
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I wish to express my deep sense of gratitude to my faculty guide Dr. Akhil Swami,
Professor, Department of Finance, ABS, Noida for his able guidance and useful
suggestions, which helped me in completing my summer internship project successfully and
with in time.
Needless to mention my industry guide Mr. Rajeev Khurana, Chief Manager (Head
Office, CBI), who had been a source of inspiration and for his timely guidance in the
conduct of our project work.
Words are inadequate in offering my thanks to the HRD Head and the honorable
General Manager and Assistant General Manager of CBI for their cooperation and
coordination in carrying out the project.
Finally yet importantly I would like to express my heartily thanks to my parents for their
blessings, my colleagues/friends for their help and wishes for the successful completion of
this project.
GAURAV SINGH
Contents
Declaration 2
5 |Page
Certificate from Industry Guide 3
Certificate from Faculty Guide 4
Acknowledgement 5
S.No. Chapter Name Page

No.
1. Introduction 8
2. Introduction to the Project 13
3. Literature Review
15
4. Research Methodology 21
5. Research Analysis Report
6. Conclusion 80
7. Recommendation 82
8. Limitations 84
9. References 86
Chapter 1: Introduction
Organization Profile
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Established in 1911, Central Bank of India was the first Indian commercial bank which was
wholly owned and managed by Indians. The establishment of the Bank was the ultimate
realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha
Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of
pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the
'property of the nation and the country's asset'. He also added that 'Central Bank of India
lives on people's faith and regards itself as the people's own bank'.
During the past 99 years of history the Bank has gathered many storms and faced many
challenges. The Bank could successfully transform every threat into business opportunity
and excelled over its peers in the Banking industry.
A number of innovative and unique banking activities have been launched by Central Bank
of India and a brief mention of some of its pioneering services are as under:
1921
Introduction to the Home Savings Safe Deposit Scheme to build saving/thrift habits in all
sections of the society.
1924
An Exclusive Ladies Department to cater to the Bank's women clientele.
1926
Safe Deposit Locker facility and Rupee Travelers' Cheques.
1929
Setting up of the Executor and Trustee Department.
1932
Deposit Insurance Benefit Scheme.
1962
Recurring Deposit Scheme.
Subsequently, even after the nationalisation of the Bank in the year 1969, Central Bank
continued to introduce a number of innovative banking services as under:
1976
The Merchant Banking Cell was established.
1980
Centralcard, the credit card of the Bank was introduced.
1986
'Platinum Jubilee Money Back Deposit Scheme' was launched.
1989
The housing subsidiary Cent Bank Home Finance Ltd. was started with its headquarters at
Bhopal in Madhya Pradesh.
1994
Quick Cheque Collection Service (QCC) & Express Service was set up to enable speedy
collection of outstation cheques.
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Further in line with the guidelines from Reserve Bank of India as also the Government of
India, Central Bank has been playing an increasingly active role in promoting the key thrust
areas of agriculture, small scale industries as also medium and large industries. The Bank
also introduced a number of Self Employment Schemes to promote employment among the
educated youth.
Among the Public Sector Banks, Central Bank of India can be truly described as an All India
Bank, due to distribution of its large network in 27 out of 28 States as also in 4 out of 7
Union Territories in India. Central Bank of India holds a very prominent place among the
Public Sector Banks on account of its network of 3563 branches and 195 extension
counters at various centers throughout the length and breadth of the country.
Customers' confidence in Central Bank of India's wide ranging services can very Ill be
judged from the list of major corporate clients such as ICICI, IDBI, UTI, LIC, HDFC as also
almost all major corporate houses in the country.
Corporate Vision
To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to positively
contribute to the emerging needs of the economy through consistent harmonization of
human, financial and technological resources and effective risk control systems.
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Corporate Mission
♦ To transform the customer banking experience into a fruitful and enjoyable one.
♦ To leverage technology for efficient and effective delivery of all banking services.
♦ To have bouquet of product and services tailor-made to meet customer’s aspirations.
♦ The pan-India spread of branches across all the state of the country will be utilized to further the
socio economic objective of the Government of India with emphasis on Financial Inclusion.
CURRENT ACCOUNT FACILITY
Current accounts are cheque operated accounts maintained for mainly business purposes. Unlike
savings bank account no limits are fixed by banks on the number of transactions permitted in the
Account. Banks generally insist on a higher minimum balance to be maintained in current
account. Considering the large number of transactions in the account and volatile nature of
balances maintained overnight banks generally levy certain service charges for operating a
Current account.
In terms of RBI directive banks are not allowed to pay any interest on the balances maintained in
Current accounts.
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However, legal heirs of a deceased person are paid interest at the rates applicable to Savings bank
deposit from the date of death of the account holder till the date of settlement.
Current Account is primarily meant for businessmen, firms, companies, and public enterprises
etc. that have numerous daily banking transactions. Current Accounts are cheque operated
accounts meant neither for the purpose of earning interest nor for the purpose of savings but only
for convenience of business hence they are non-interest bearing accounts. In a Current Account,
a customer can deposit any amount of money any number of times. He can also withdraw any
amount as many times as he wants, as long as he has funds to his credit. Generally, a higher
minimum balance as compared to Savings Account is required to be maintained in Current
account.
As per RBI directive banks are not allowed to pay any interest on the balances maintained in
Current accounts. However, in case of death of the account holder his legal heirs are paid interest
at the rates applicable to Savings bank deposit from the date of death till the date of settlement.
Because of the large number of transactions in the account and volatile nature of balances
maintained, banks usually levy certain service charges for operating a Current account.
Current Account can be opened by:
• An individual who has attained majority.

• Two or more individuals in their joint names.
• Sole proprietorship concerns.
• Partnership concerns.
• Hindu Undivided Family (HUF).
• Limited Companies.
• Clubs, Societies.
• Trusts, Executors and Administrators.
• Others - Govt. and semi Govt. bodies, local authorities etc.
Documents Required for Opening a Current Account
Following documents are required in case of individuals
• Two passport size photographs

• Proof of residence i.e. Passport/driving license/Gas / Telephone / Electricity Bill/ Ration
card/voters identity card
• An introduction of the person from an existing account holder.
• PAN number / Declaration in form no.60 or 61 as per the Income Tax Act 1961
Different set of documents are required as per bank's norms if the account is opened by
partnership firms, private and public limited companies, HUFs / specified associates, societies,
trusts etc.
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Chapter 2: Introduction to the Project
The project is a Marketing Research Survey in the Bank’s Market Area Branches with regards to
Current Account Deposits.
The survey includes the market area of the following three branches of Central Bank of India’s
Delhi region:
1. Nangloi,
2. Lawrence Road, and
3. Pitampura
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Project Objective
To conduct a market research survey on Current Account and to know about the perception of
customers about the current services offered by Central Bank of India along with Current
Account Facility, how they are different with other (competitor) nationalized and private sector
banks, and to come up with suggestions with the help of research that can help in increasing
customer base and level of satisfaction among customers
Methodology adopted
A market research process will be carried out for three different branches in their respective area
with the help of a structured questionnaire and by getting data by filling up the questionnaire by
their current and potential Current Account customers in a sample size of 50 (approx.) for each
of the three branches.
Brief Summary of the Project
A market research survey on Current Account is conducted to know about the perception of
customers about the current services offered by Central Bank of India along with Current
Account Facility, how they are different with other (competitor) nationalized and private sector
banks, and to come up with suggestions with the help of research that can help in increasing
customer base and level of satisfaction among customers. Market Research Survey conducted
with the help of a structured questionnaire with 50 (approx.) sample size for each three branches
allotted by the organization.
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CHAPTER 3: LITRATURE REVIEW
Central Bank of India to raise Rs2,500 cr from rights issue
The central government holds about 80% stake in the Central Bank of India. Hence, it will make
a capital infusion of Rs2,016 crore by subscribing to the rights issue
New Delhi: State-owned Central Bank of India on Friday said that it would come out with a
rights issue in the next few months to raise Rs2,500 crore.
“That (rights issue) we are working out,” Central Bank of India chairman and managing director
S Sridhar said after opening a bank branch at the headquarters of the organising committee of the
Commonwealth Games 2010 here.
He stated that the bank is planning to raise Rs2,500 crore from the rights issue, which would be
out in the next few months.
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Stating that the details are yet to be worked out, he said that they are required to obtain
regulatory approval and complete other formalities before holding the issue.
The central government holds about 80% stake in the Central Bank of India. Hence, it will make
a capital infusion of Rs2,016 crore by subscribing to the rights issue.
Another Rs500 crore may be raised from existing retail shareholders and FIIs, who own the
remaining 20% stake in the bank.
Last week, the government had announced a capital infusion of Rs6,211 crore in five public
sector banks, including Rs2,016-crore capital support to Central Bank of India with the objective
of raising Tier I capital of over 8%.
The Tier I capital of the bank is about 6.6%, he said, adding that it will cross 8% after the rights
issue.
With the infusion, the bank would be able to increase the balance sheet size by about 10-12 times
of the amount raised by way of equity.
Earlier this month, the government had infused Rs250 crore into the bank to shore up the capital.
Sridhar said that though there is an upward bias on interest rate, it would not go up till July.
Liquidity, which is tight this month, may ease next month as money would flow back into the
system, he added.
Source: http://www.livemint.com/2010/06/18163716/Central-Bank-of-India-to-
raise.html
House-rich, cash-poor? Now get income for life
Unlike regular reverse mortgage products that make payments for a fixed period, a new
product goes a step ahead and promises income for life
Posted: Tue, Dec 29 2009 12:48 AM IST

Bindisha Sarang and Deepti Bhaskaran
It is the last solution for a retired person. But one that many, who are in the unfortunate position
of being house-rich but cash-poor, are being forced to consider. The reverse mortgage product
has been in India for more than three years now, but it is still in its early stages of development.
Also See Which Works? (Graphic)
However, a new product to hit the market shows that the product is evolving and may be more
friendly to the customer than the ones that are currently in the market. Central Bank of India’s
reverse mortgage loan annuity (RMLA) product, called Cent Swabhiman Plus, combines annuity
with a plain-vanilla reverse mortgage product for an old couple to overcome the risk of living too
long.
What’s new?
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In a regular reverse mortgage, the owner borrows against the equity in his house and gets regular
monthly payments from the bank, usually for 15 to 20 years. If the borrower outlives the tenure,
he is not asked to move out of the house, but payments stop.
Under RMLA, you get regular income throughout your life. Says Arun Kaul, executive director,
Central Bank:
“We pass on the value of the house to the insurance company by paying premiums. The insurer,
in turn, makes regular payments to the beneficiary through the bank.”
Unlike regular reverse mortgage, where the banks make the payment, here the bank merely acts
as an interface between the insurer and the customer.
Scheme details
It’s cheaper: Look at a reverse mortgage product as a loan against the house on which you have
to pay interest. So, the lower the rate, the better it is for you. RMLA comes with a fixed rate of
9.50% with a reset option every two years. On the other hand, most other products in the market
are more expensive (you get less income)—at 10.25-12%.
Flexibility: Most products allow you to access income on a monthly, quarterly, half-yearly or
annual basis. RMLA also gives the option of taking 25% of the amount as lump sum loan and the
remaining as annuity.
Annuity options
RMLA has two options that come with the annuity product it buys from Star Union Dai-chi Life
Insurance Co. Ltd.
Option 1: Called, “without return of premium”, this gives annuity till you die. After that, your
heirs can repay the entire amount you received (premium and interest) to get back the house.
Since you get more money under this as compared with the other option, it works best for those
who don’t have an heir. For a property worth Rs1 crore, the annuity for a person aged 60-65
years will be Rs39,600 per month, according to Central Bank.
Option 2: This option is called “with return of premium”. Under this, after your death, the
insurer will repay the premiums to the bank. If your heirs want to get back the property, they will
have to repay only the interest. You get lower annuity, but your kids need to pay less to recover
the house. For a house worth Rs1 crore, you will get a monthly annuity of Rs28,880.
Tax angle
The difference between a regular product and this one is in the tax treatment. Says Gautam
Nayak, chartered accountant, Contractor, Nayak and Kishnadwala: “All payments under reverse
mortgage loan are exempt under section 10(43) of the Income-tax Act. But, monthly or periodic
annuity payments are defined as ‘salaries’ under section 17 and are taxable.”
This means that you will have to pay income-tax on the annuity on RMLA. For a house worth
Rs1 crore, the product will give you a loan of Rs60 lakh, on which you will get a monthly payout
of Rs39,600 for lifetime if you go for Option 1 or an annual income of Rs4.75 lakh. You will pay
a tax of about Rs5,000 (assuming you exhaust all tax deductions available under section 80C and
section 80D) and still get a disposable monthly income of Rs39,171.
Compare this with State Bank of India’s reverse mortgage product that comes at an interest rate
of 10.75%, promising regular income for 15 years. It gives just Rs22,500 per month or Rs2.7
lakh annually. This tax-free income is less than the tax paid for RMLA.
What should you do?
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Reverse mortgage products are still in their infancy in India. If you are really pushed for cash and
must give up your house, the Central Bank product looks to be the most consumer friendly as of
now.
Source: http://www.livemint.com/Articles/PopUp.aspx?id=b9b67c60-f3b6-11de-8a00-
000b5dabf613
Treasury to drag down H2 profit: Central Bank
During the first six months of 2009-10, the bank recorded a net profit of Rs581 crore, more than
the total profit recorded in the entire fiscal 2009
Posted: Mon, Jan 4 2010 5:01 PM IST
New Delhi: The Central Bank of India on Monday said its profit during the second half of FY10
would not be “as good as” the first half as treasury gains have declined.
“Second half of the year (profit) will not be as good as the first half,” said Central Bank chairman
and managing director S. Sridhar.
This would be because treasury profit in the second half would not be as much as in the first half
of the fiscal, he said.
During the first six months of 2009-10, the bank recorded a net profit of Rs581 crore, more than
the total profit recorded in the entire fiscal 2009.
However, he said, the bank will try and compensate the shortfall in treasury profit by increasing
its operational profit and through better recovery from non-performing assets.
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Asked about credit growth Sridhar said credit has started picking up in the last month and the
trend should intensify further.
In between April and December the credit offtake has risen by 11% and the bank expects robust
demand in the last quarter, he said.
The bank had planned to grow advances by 20% during 2009-10 and it is not revising the target,
he said.
Source: http://www.livemint.com/Articles/PopUp.aspx?id=591394c4-f924-11de-b5f0-
000b5dabf613
Central Bank finalizing bids for NPA sale

The bank is expecting a credit growth of 2009-10 at 15-16%, lower than target of 18% for the
fiscal
Posted: Wednesday, February 24, 2010 6:22 PM IST

Reuters
Mumbai: State-run Central Bank of India is in final stages of evaluating bids from asset
reconstruction companies to sell non performing assets worth Rs400 crore, its chairman said on
Wednesday.
“We are evaluating the bids and the final decision is expected in a couple of days,” S. Sridhar
told Reuters on the sidelines of a banking summit.
The bank is expecting a credit growth of 2009-10 at 15-16%, lower than target of 18% for the
fiscal, on lower demand from industry following economic slowdown, he said.
Economic slowdown hit the bank loan growth that slid to 9.8% in November, but recovery led to
pick up in loan growth in January to 14.8%. The lender is targeting a loan growth of 20% in
2010-11 with pick up in credit demand from infrastructure, manufacturing and retail sectors,
Sridhar said.
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The bank also plans to raise its stake in its housing finance arm from 59% now to make it a
wholly owned unit. “Talks are on with existing stakeholders.”
National Housing Bank, Housing Urban Development Co. and Unit Trust of India are the other
stakeholders in the unit Cent Bank Home Finance. Shares in the bank ended 4.77% down at
Rs149.60 in the stock market that ended down 0.19%.
Booking govt-built flats: banks lend helping hand
With banks stepping in and giving you time to arrange for enough cash, you may not lose the
investment opportunity even if you are short on funds
Posted: Mon, Mar 22 2010. 9:06 PM IST

Devesh Chandra Srivastava
Every time the Delhi Development Authority (DDA) or your local development authority comes
out with a housing scheme, you wish you had not just blown up that Rs2 lakh on the Singapore
trip. Here is a perfectly great investment option and you are short of ready cash. These flats
usually come at a discount to the private sector builder flats and houses.
Also See How Much You Pay (Graphics)
You need to submit the earnest money, or the upfront booking cost, that could be Rs1.5-2 lakh,
depending on the unit size and specification. The city developers demand that money to ensure
that only serious buyers apply. Of course, it helps them earn interest on the float for the two to
five months the money remains with them.
But being short of cash is no longer reason enough to let go of this investment opportunity. You
can now take banks’ help, though at a cost.
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Banks are now stepping in to fill the gap and offering to lend you the earnest money in the hope
that you get allotment and then they get a home loan customer. State-owned banks such as
Central Bank of India, Punjab National Bank, Bank of India and State Bank of India, and private
banks such as Axis Bank Ltd, ICICI Bank Ltd and HDFC Bank Ltd are all offering schemes in
collaboration with the city housing boards, where they lend the booking amount.
“The trend is more common in north India. It helps the buyer with funds needed at the time of
booking,” says Harsh Roongta, chief executive officer, ApnaPaisa.com, a home loan portal.
B.N.S Ratnakar, a senior bank official with the Central Bank of India, says, “Through
disbursement of earnest money, banks encourage people to buy a house indirectly. But as banks
are sitting on huge amounts of liquidity, lending becomes easier when the applicant approaches
after the allotment.”
The trend began in August 2008 with the housing scheme launched by DDA and was also seen in
January’s residential plot scheme by the Haryana Urban Development Authority when the home
loan market was sluggish. Other schemes, such as the Greater Noida Authority’s housing scheme
in February, too, witnessed the trend.
What it costs?
You can ask the bank to pay the initial deposit on your behalf. The bank will charge a margin
amount, usually 4-10% of the earnest money, which includes processing fee and six months’
interest. If the booking amount is, say, Rs1.5 lakh, you have to pay up to Rs15,000 as the margin
money at 10%. At 4%, it would amount to Rs6,000. Margin amount is non-refundable in case
you are not allotted a house. The main purpose of such an arrangement is to make the process of
application smoother. Also, it gives the applicant time to arrange the money within a period of
time. Kamal Gupta, a successful allottee of the DDA draw in 2008, says, “If the applicant gets
the allotment after the draw, he has to pay the bank the entire sum within the next 30-40 days.”
However, before applying, the applicant should be sure that he would be able to pay back the
money. Says Navin Raheja, managing director of Raheja Developers Ltd: “Banks keep the
margin money to secure the interest. But before anyone goes into such an arrangement, he should
have the financial resources to fund the booking money payable to the bank in case of successful
allotment.” It is only after the earnest money is paid back that the applicant can get a housing
loan.
How it works?
Banks usually sell the forms through their select branches. They process the application forms
through these select branches. So, all you have to do is to pay Rs100-200 per form. Often due to
a huge number of buyers you may have to take the pain to stand in a queue.
Later officials from the authority who sit at these select branches collect your complete form.
Before giving you the receipt, they cross-check for errors. Make no mistakes such as overwriting
or you may be asked to fill another form. Along with the earnest money, you have to submit the
margin amount in cash. Some banks take the same amount through cheques.
A majority of applicants approach private banks. “Due to bureaucratic hurdles people prefer to
go to private banks. For banks it is easier to recover the money,” says Sanjay Sharma, managing
director, Qubrex.com, a real estate brokering and consulting firm.
In case of successful allotment, the applicant has the choice to repay the earnest money and move
to some other bank for the rest of the loan. But before you switch to any other bank, make sure to
collect the proof of your payment made to the authority by the previous bank. You should have
the proof of submitting the earnest money before you start the procedure of getting the home
loan.
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What you need
You need to have a residence proof—passport, driving licence, electricity bill or your voter
identity card would do. Banks will also require a photocopy of your permanent account number
card. Some banks also ask for income-tax return receipt. It is easier to get the earnest money
from a bank if you have an account with it, says Pradeep Mishra, Delhi-based independent real
estate analyst. However, public sector banks have stringent measures—applicants living in a
rented accommodation are often rejected. And do remember to do some research on banks that
are asking for the lowest margin money.
Source: http://www.livemint.com/Articles/PopUp.aspx?id=5d987a8c-35bf-11df-9354-
000b5dabf613
CHAPTER 4: RESEARCH METHODOLOGY
INTRODUCTION
Methodology includes a philosophically coherent collection of theories, concepts or ideas as they

relate to a particular discipline or field of inquiry.
Methodology refers to more than a simple set of method; rather it refers to the rationale and the
philosophical assumptions that underlie a particular study relative to the scientific method. This
is why scholarly literature often includes a section on the methodology of the researchers. This
section does more than outline the researchers’ methods (as in, “I conducted a survey of 50
people over a two-week period and subjected the results to statistical analysis”, etc.); it might
explain what the researchers’ ontological or epistemological views are.
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Another key (though arguably imprecise) usage for methodology does not refer to research or to
the specific analysis techniques. This often refers to anything and everything that can be
encapsulated for a discipline or a series of processes, activities and tasks. Examples of this are
found in software development, project management and business process fields. This use of the
term is typified by the outline who, what, where, when, and why. In the documentation of the
processes that make up the discipline, which is being supported by “this” methodology, that is
where I would find the "methods" or processes. The processes themselves are only part of the
methodology along with the identification and usage of the standards, policies, rules, etc.
Researchers acknowledge the need for rigor, logic, and coherence in their methodologies, which
are subject to peer review.
RESEARCH PROBLEM
I conducted a market research project to judge the market condition of Central Bank of India
with the other competitor banks in the specified regions. The judgment is based upon the survey
conducted at three locations. These locations reside in the three branch regions of Central Bank
of India’s Delhi region. The survey is conducted with help of a structured questionnaire. The
analysis of this study is done using software known as SPSS and complied using MS Word .The
study will reveal about the different important aspects of Indian banking market.The study
revolves around the comparison of the Central bank of India’s Current Account facility and other
crucial aspects of banking like customer service, employee behavior, brand image, infrastructure
etc. with the competitor banks of both private and public sector based on the following
parameters:
• Customer preference for facilities provided with current account facility

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• Reasons behind preferring a particular bank
• Customer satisfaction and loyalty level
• Expectation of customers
• Attractiveness and mode of customer awareness
• Additional services preferred
• Kind of way in which customers like to operate their bank by customer
Thus, I can conclude that the main reason behind conducting this study is compare the other
banks services and facilities with the Central Bank of India and to get answers of some important
questions.
The objective of carrying out the research work is to get answers about the following questions:
• What specific qualities do consumers look for while selecting a bank to do business with?
• How the current account customers of Central Bank of India and its competitor banks rate
the different features (like employee behavior, customer service, brand Image etc.) of
their bank?
• What are the most influential factors that provide awareness to the customer about the
bank and its products?
• How often the customers use their accounts (frequency) and how they like to operate their
account?
• What features customers look for while opening a current account with any bank?
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RESEARCH DESIGN
Research design is a plan outlining how the information is to be gathered for an assessment or
evaluation that includes identifying data gathering methods, instruments to be used and how the
information will be organized and analyzed. Further more a research design also includes timely
completion of the study and also keeping cost within the budgeted levels. In this market research
project for Current Account Facility of Central Bank of India I have firstly prepared a
questionnaire which comprises of 21 questions enquiring about the problems faced by numerous
customers while doing business with banks. The structured questionnaire will then be analyzed
with the help of SPSS. Based on the analysis done in SPSS I have drawn conclusion. Finally I
have also mentioned the limitations of the research and the problems faced while conducting the
market research.
The research design can be classified into the following two types:
• Qualitative marketing research - generally used for exploratory purposes - small

number of respondents - not generalizable to the whole population - statistical
significance and confidence not calculated - examples include focus groups, in-depth
interviews, and projective techniques
• Quantitative marketing research - generally used to draw conclusions - tests of specific

hypothesis - uses random sampling techniques so as to infer from the sample to the
population - involves a large number of respondents - examples include surveys and
questionnaires. Techniques can include choice modeling, maximum difference preference
scaling, and covariance analysis.
In the present research on Current Account Facility I have used Quantitative Research methods.
Quantitative marketing research is the application of quantitative research techniques to the field.
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In the present project I have used questionnaires as our method for conducting our research. This
method helped us to gain an overview of the perceptions of customers in relation to current
account facility and also the level customer satisfaction of different banking institutions with
Central Bank of India.
TECHNIQUES OF DATA COLLECTION
PRIMARY DATA
In this project I have analyzed data from a sample size of 152 customers from, three branch areas
in Delhi region by administering questionnaires. Out of the 152 respondents 48 are from
Lawerence Road branch area, 53 are from Pitampura branch area and 51 are from the Nangloi
branch area.
SECONDARY DATA
In the project I have collected the information from different sources about Current Account that
are from:
1. Internet:
2. Books:
3. Newspapers:
RESEARCH INSTRUMENTS
The kind of research instruments one uses greatly helps in realizing the reliability and validity of
a research. In the present research I have used questionnaires as the research instrument.
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QUESTIONAIRES
Under the Quantitative research on “Current Account Facility provided by Central Bank of
India” the research tool used here is “Questionnaire”
A questionnaire is a research instrument consisting of a series of questions and other prompts

for the purpose of gathering information from respondents. Although they are often designed for
statistical analysis of the responses, this is not always the case.
TYPES
Structured Non-disguised Questionnaire- These are clear and direct questionnaires usually
suitable for large samples and descriptive research.
Non-Structured- Non- Disguised Questionnaire- These are flexible and direct and appropriate
when looking for in depth answers and exploratory research.
Structured Disguised Questionnaire- These are clear and investigative, used to uncover
people’s attitude towards sensitive issues.
Non-Structured Disguised Questionnaire- These are flexible and investigative and appropriate
in motivation research.
In the present research on Current Account Facility of Central Bank of India I have used
“Structured Non-Disguised Questionnaire”
SAMPLING
Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially for the
purposes of statistical inference. Each observation measures one or more properties (Iight,
location, etc.) of an observable entity enumerated to distinguish objects or individuals. Survey
lights often need to be applied to the data to adjust for the sample design. Results from
probability theory and statistical theory are employed to guide practice.
Sampling is useful for a researcher as it saves time, effort and money.
25 | P a g e
The sampling process comprises several stages:
• Defining the population of concern
• Specifying a sampling frame, a set of items or events possible to measure
• Specifying a sampling method for selecting items or events from the frame
• Determining the sample size
• Implementing the sampling plan
• Sampling and data collecting
• Reviewing the sampling process
In this research on “Current Account Facility of Central Bank of India” I have followed the
following steps:
1. Target Population: The target population used for sample selection here is the users of
current account facility of Central Bank of India and other banking institutions.
2. Geographical Spread of the target population (Sampling Frame): The area of

research is Delhi region. In Delhi, area of Lawerence Road Industrial Area (Sample Size
48, 15 CBI customers and 33 other banks customers), Pitampura (Sample Size 53, 19 CBI
customers and 34 other banks customers) and Nangloi (Sample Size 51, 15 CBI
customers and 33 other banks customers) were the areas for primary data collection by
way of Questionnaires.
3. Sampling Method Used: I have used the Non- Probability Sampling method which is
Convenience Sampling.
4. Sample size: the sample size is 152.
DATA ANALYSIS TECHNIQUES
Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of highlighting useful information, suggesting conclusions, and supporting decision making.
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Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, in different business, science, and social science domains.
The various data analysis used in the present research is as follows:
Descriptive Data Analysis: Descriptive analysis is used to describe the basic features of the data
in a study. They provide simple summaries about the sample and the measures. Together with
simple graphics analysis, they form the basis of virtually every quantitative analysis of data.
Under the descriptive analysis Univariate analysis methods have been used. Such as frequency
distribution, central tendency and dispersion.
Frequency Distributions summarize and compress data by grouping them into classes and
recording how many data points fall into each class. The frequency distribution is the foundation
of descriptive statistics. It is a prerequisite for the various graphs used to display data and the
basic statistics used to describe a data set, such as the mean, median, mode, variance, standard
deviation, etc.
Measures of Central Tendency indicate the middle and commonly occurring points in a data
set. The three main measures of central tendency used are-
Mean is the average, the most common measure of central tendency. The mean of a sample is
designated by the symbol x-bar (0). The mean may not always be the best measure of central
tendency, especially if data are skewed.
Median is the value in the middle of the data set when the measurements are arranged in order of
magnitude. For example, if 11 individuals were Iighed and their Iights arranged in ascending or
descending order, the sixth value is the median since five values fall both above and below the
sixth value. Median family income is often used in statistics because this value represents the
exact middle of the data better than the mean. Fifty percent of families would have incomes
above or below the median.
Mode is the value occurring most often in the data. If the largest group of people in a sample
measuring age were 25 years old, then 25 would be the mode. The mode is the least commonly
used measure of central tendency, particularly in large data sets. However, the mode is still
important for describing a data set, especially when more than one value occurs frequently.
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Measures of Dispersion indicate how spread out the data is around the mean. Measures of
dispersion are especially helpful when data are normally distributed, i.e. closely resemble the bell
curve. The most common measures of dispersion follow.
Variance is expressed as the sum of the squares of the differences between each observation and
the mean, which quantity is then divided by the sample size. Variance is used less frequently than
standard deviation as a measure of dispersion. Variance can be used when I want to quickly
compare the variability of two or more sets of interval data. In general, the higher the variance,
the more spread out the data.
Standard deviation is expressed as the positive square root of the Variance. It is the average
difference between observed values and the mean. The standard deviation is used when
expressing dispersion in the same units as the original measurements. It is used more commonly
than the variance in expressing the degree to which data are spread out.
Coefficient of variation measures relative dispersion by dividing the standard deviation by the
mean and then multiplying by 100 to render a percent.
INFERENTIAL DATA ANALYSIS
Inferential analysis deals with drawing conclusions and, in some cases, making return to Table of
Contents predictions about the properties of a population based on information obtained from a
sample. While descriptive analysis provides information about the central tendency, dispersion,
skew, and kurtosis of data. Inferential analysis allows making broader statements about the
relationships between data. Inferential analysis is frequently used to answer cause-and-effect
questions and make predictions. They are also used to investigate differences between and
among groups.
Inferential analysis provides more detailed information than descriptive statistics, yields insight
into relationships between variables, reveals causes and effects and makes predictions, generates
convincing support for a given theory and can be generally accepted due to widespread use in
business and academia.
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The various techniques of inferential analysis are:
Chi-square (P2) tests are used to identify differences between groups when all variables
nominal, e.g., gender, ethnicity, salary group, Political party affiliation and so forth. Such tests
are normally used with contingency tables which group observations based on common
Characteristics.
Correlation is used to measure the similarity in the Changes of values of interval variables but is
not influenced by the units of measure. Another advantage of correlation is that it is always
bounded by the interval:
-1 <0<1
Here -1 indicates a perfect inverse linear relationship, i.e. y increases uniformly as x decreases,
and 1 indicates a perfect direct linear Relationship, i.e. x and y move uniformly together. A value
of 0 indicates no relationship. Note that correlation can determine that a relationship exists
between variables but says nothing about the correlation or directional effect.
Regression analysis is often used to determine the effect of independent variables on a

dependent variable. Regression measures the relative impact of each independent variable and is
useful in forecasting. It is used most appropriately when both the independent and dependent
variables are interval, though some social scientists also use regression on ordinal data. Like
correlation, regression analysis assumes that the relationship between variables is linear.
Regression analysis permits including multiple independent variables.
SOFTWARE USED
SPSS (originally, Statistical Package for the Social Sciences) was released in its first version in
1968 after being developed by Norman H. Nie and C. Hadlai Hull. Norman Nie was then a
political science postgraduate at Stanford University, and now Research Professor in the
Department of Political Science at Stanford and Professor Emeritus of Political Science at the
University of Chicago.[3] SPSS is among the most widely used programs for statistical analysis in
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social science. It is used by market researchers, health researchers, survey companies,
government, education researchers, marketing organizations and others. The original SPSS
manual (Nie, Bent & Hull, 1970) has been described as one of "sociology's most influential
books".[4] In addition to statistical analysis, data management (case selection, file reshaping,
creating derived data) and data documentation (a metadata dictionary is stored in the data file)
are features of the base software.
Statistics included in the base software:
• Descriptive statistics: Cross tabulation, Frequencies, Descriptives, Explore, Descriptive

Ratio Statistics
• Bivariate statistics: Means, t-test, ANOVA, Correlation (bivariate, partial, distances),

Nonparametric tests
• Prediction for numerical outcomes: Linear regression
• Prediction for identifying groups: Factor analysis, cluster analysis (two-step, K-means,
hierarchical)
In the present research I have used SPSS software due to its ease of use and the various analysis
tools it provides.
Sources of secondary research
• Elements of a research proposal and report 2005 © David S. Walonick, PhD
• Marketing Research by Naresh K Malhotra
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Survey Questionnaire on Current Account Facilities
Dear Sir/Madam,
This questionnaire is meant for generating feedback regarding current account

facilities provided by Central bank of India and for educational purposes as Ill.
This information provided by you will be kept secure and confidential.
Name _________________________________________ Age ___Years
Name of the Organization_________________________________________________
Address _____________________________________________________________
_____________________________________Contact No.___________________________
Q1. Do you have a Bank A/c? Yes No
Q2. If Yes, Then which type of A/c:
i. Current A/c iv. Recurrent Deposit Account
ii. Savings A/c v. Fixed Deposit A/c.
iii. Others (Please Specify)___________________
Q3. How often do you visit your Bank:
i. Daily iii. Monthly
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ii. Weekly iv. Rarely
Q4. For what purpose do you use your A/c:
i. Personal iv. Corporate
ii. Business v. Institutional
iii. Others (Please Specify)___________________
Q5. How do you like to carry out your Transactions:
i. Phone Banking iv. Personal Visit
ii. Internet Banking v. ATM
iii. Others____________________________
Q6. Rate the following features of your Bank
(1=Very good , 2=Good,3=Satifactory,4=Poor,5=Very poor)
i. Timely Response v. Employee behavior
ii. Brand image vi. Reliability
iii. Variations in Products vii. Customer Services
iv. Online Facilities viii. Infrastructure
Q7. What factors you consider while choosing your Bank (Select all that apply)
i. Location iv. Security
ii. Facilities v. Convenience
iii. Infrastructure
Q8. What factors provides you awareness about the Bank and its Products:
i. Advertisements iii. Family
ii. Agents iv. Friends
Q9. For what purpose you use a Current A/c:
i. Payment to creditors iv. Collection from debtors
ii. Working capital requirements v. Salary payments
iii. Operational expenses vi. Others_______________________
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Q10. What features you look for in a Current A/c:
i. A/c to A/c funds transfer within Bank Branches.
ii. A/c to A/c funds transfer with other Bank A/c.
iii. Demand draft facility / Pay order facility
iv. 24 hour Phone Banking, Net Banking , Mobile Banking.
v. Withdrawal and Cash Deposit at all Branches.
vi. Cheque Book (No. of leaves)
vii. RTGS/NEFT Transactions.
viii. Cash and Cheque pickup and Cash delivery.
ix. Minimum balance to maintain.
x. Others (Please Specify)__________________________.
Q11. With which Bank do you have your Current Account:
i. SBI iv. Central Bank of India
ii. ICICI Bank v. HDFC Bank
iii. Others (please specify) _____________________
Q12. How would you rate your Current Bank services :
Very Good Good Satisfactory Poor Very Poor
Q13. Are you satisfied by the services of your Current Bank?
Yes No
If No, Please specify the reason

………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………
Q.14 Do you agree that facilities provided by Central Bank are much flexible than
the other Bank services
Yes No
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If No, Please specify the reason
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…………………………………………………………………………………………
Q 15.Ever Opted for other services Yes No
If yes, Which one
i. Insurance Service provider _____________________________
ii. Debit card Service provider _____________________________
iii. Credit card Service provider _____________________________
iv. Investment advice Service provider _____________________________
v. Tax Advice Service provider _____________________________
Q 16.Rate the Range of Product Offering?
Q 17. Rate the Customer service?
Q 18. Additional Services you like to avail or provided as a package with Current Account
_____________________________________________________________________________________
_____________________________________________________________________________________
Q 19.Of the following schemes and products which are you most likely to avail in near future
(Can choose multiple options)
(a)Deposits
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i. Savings account iii. Fixed deposits
ii. Senior Citizen Deposit schemes iv. Other Specify_________________
(b)Loans
i. Car iv. Housing
ii. Computer v. Educational
iii. Personal vi. Vehicle
(c)International Banking
i. NRI account iv. Facilities for NRI
ii. Facilities For Exporters and Importers v. Foreign Exchange
iii. Money transfer vi. Investment schemes
(d)Other services
i. Credit Card iv. Debit Card
ii. Insurance v. Cash Management Service
iii. Mutual Funds vi. Depository Services
(e)Not likely to avail any services
Q20 . Field of Work:
i. Government service v. Private service
ii. Government Organization vi. Private Organization
iii. Business vii. Self-employed
iv. Others (Please Specify) ___________________
Q21. Monthly Income (Rs) :
i. Upto 10000 iv. 50000-75000
ii. 10000-30000 v. 75000-100000

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iii. 30000-50000 vi. Above 100000
Chapter 5: Research Analysis Report
Lawrence Road Branch:
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Branch Manager : Basant Lal (Former)
Address : C-10, Community Centre, Lawerence Road

NEW DELHI-110034
State : DELHI
District : DELHI
Branch : Lawerence Road
Contact : 011-27189708
IFSC Code : CBIN0281153 (used for RTGS and NEFT transactions)
Important Points:
• Central Bank of India’s Lawerence Road Area Branch is situated in the one of the
Delhi’s most important industry point i.e. Lawerence Road Ind. Area
• It is one of the most old branches of any bank in this area serving the area from
more then 20 years being the first branch of any bank to be operating in Lawrence
Road Area
• Lawrence Road Industrial area includes SME’s (Small and Medium Scale
Enterprise) in number in thousands with a vast opportunity for increasing business
as a banking entity
• But, with a lot of opportunity as a banking entity the central Bank of India’s
Lawrence Road Branch is facing a great deal of competition from other bank
branches in the area like PNB, Bank of Baroda, Andhra Bank, Syndicate Bank
and State Bank of India
• Most of the bank customers in Lawerence Road are having their businesses setup
from many years and trust mainly on Public Sector Unit (PSU) Banks
• This is one of the reasons that out of the 33 other bank current account customers
being surveyed (during the research) only three of them are having an account in a
private sector bank
• In the last few years the Lawerence Road branch have lost most of its customer
space reasons being
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 Location
One of the reason (unavoidable) of the branch area becoming
quite difficult to access due to the construction of an Railway underpass
from around 3 years which is almost finished now
 Avoidance
Second reason came out of the research is the avoidance of current
account business by the branch managers of recent times. Most of the
accounts were having nil balance and were not active. The branch staff in
spite of knowing this are not doing about it
 Lack of Customer interaction

Many of the customers were having complaints about lack of
interaction with any of the staff members and were not able to relate with
their bank (CBI). There is a very high requirement of a Public relation
officer in the branch in order to keep the current customers in their reach
 Security
Absence of a security guard/ gun man was complained by some of
the customers. The customers used to feel insecure while taking out huge
amount out of the bank due to the absence of security guard
SPSS Analysis:
1.
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Q3. How often do you visit your Bank :
Many of the Current Account customers visit their branches weekly that shows a requirement of
educating customers about net banking/phone banking so that they can fulfill their requirement
from home removing any need of them to visit their branches personally thereby saving time and
money.
2.
Q6. Rate the following features of your Bank?
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( 1=Very Good , 2=Good,3=Satifactory,4=Poor,5=Very poor)
1.
4. Maximum People considered Location and facilities as the most influential factor in selecting
bank
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Nangloi Branch:
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Address : 24, NAJAFGARH ROAD, NANGLOI
NEW DELHI, DELHI-110041
State : DELHI
District : DELHI
Branch : NANGLOI
Contact : 011-25942484
• Central Bank of India’s Nangloi Branch is situated on the Najafgarh Road.

Nangloi is situated at the rear end of Delhi nearby Haryana and is a very popular
industrial place
• There are a number of small and big industrial areas in Nangloi City like Naresh
Park extension, Swarn Park and DSIDC Industrial complex etc
• The Central Bank of India’s Nangloi branch is quite a young one in the Nangloi
region with a service time of only less then a couple of years in the area
• The branch is doing quite Ill in order of business with the Current Account facility
as being a new branch in the area
• The Central Bank of India has many other bank branches in the neighborhood that
includes Syndicate Bank, State Bank of India, Punjab National Bank, Oriental
Bank of Commerce, Dena Bank etc.
• Out of the all competitor branches Syndicate Bank is most popular branch in that
area and State Bank of India are the most popular ones in the area. Where
Syndicate Bank branch is one of the oldest branches in the area, State Bank of
India branch is only one year old only
• The main problems faced by the branch and it’s business are as follows:
 Competition
As the CBI Nangloi Branch is quite new in the area while many
other branches are older then it and have already made their customer base
CBI is still looking to make reputation among the customers
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 Low Number of Staff Members
The customers have given complaints about delay in
their work done during their branch visits which results in the customer s
waiting long in order to get their work done. The reason behind is said to
be due to the improper number of staff people in the branch
 Employee Behavior
The customers have given feedback about the employee behavior
and rated it as below average suggesting unfriendly behavior of staff
members with the current customers
SPSS Analysis:-
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1. Most of the customers found to be visiting their branches weekly
2. Employee Behavior and Customer Services were found to be having lower satisfied
customers for employee behavior and Customer Service
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Pitampura Branch:
Branch Manager : K. L. Balmiki
Address : 119, Shakti Vihar, Pitampura

NEW DELHI, DELHI-110034
State : DELHI
District : DELHI
Branch : Pitampura
Contact : 011-27025127
Important Points:
• Central Bank of India’s Pitampura Branch is situated in a residential area of

Pitampura’s Shakti Vihar and in the neighborhood of the famous Rani Bagh
Market area
• The Pitampura branch of Central Bank of India is a new branch with only a
couple of year in service in the area and is doing quite Ill in the area
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• The main problem in current account facility business in the Pitampura region
is that the region is mainly a residential area and the Rani Bagh market though
a very big market but it includes mainly small kind of shops which have a
very low ratio of current account holder
• As the number of current account holders is not in the Pitampura region

therefore maximum number of banks present in the area keep their customers
very Ill treated so that they don’t leave them
• The Pitampura branch has been found to have maximum number of satisfied
current customers out of the all three branches of the research domain
• The main problems faced by the Pitampura branch are
 Lack of Opportunity
As compared to other two branches of the research domain the
Pitampura branch Area have a very less number of potential and
current customers of current account facility in any bank branch
 Customer Awareness
Many of the people were found unaware of the presence of the
Central Bank branch in the vicinity and are required to be informed
about the presence of the branch with the help of the promotional
activities like loan fairs and customer meets
 Lack of Differentiation
As the types of services provided by all the banks are
almost same the problem faced by the Central Bank of India is that it is
not able to provide anything extra to the customers to attract them
towards our bank
 Security
Absence of a security guard/ gun man was complained by some of
the customers. The customers used to feel insecure while taking out
huge amount out of the bank due to the absence of security guard
 Low Number of Staff Members

The customers have given complaints about delay in
their work done during their branch visits which results in the
customer s waiting long in order to get their work done. The reason
behind is said to be due to the improper number of staff people in the
branch
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SPSS Analysis:-
1. More then half the people were found to visit their branches weekly
2. Employee Behavior and Customer Services were found to be having lower satisfied
customers for employee behavior and Customer Service
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Chapter 6: Collective Analysis (All three Branch Areas):-
According to responses of all the 152 respondents for the questionnaire………
Q1. Do you have a Bank A/c? Yes No
Analysis: - Every respondent who was approached in the survey was having an account with some bank.
Q2. If Yes, Then which type of A/c :
i. Current A/c iv. Recurrent Deposit Account
ii. Savings A/c v. Fixed Deposit A/c.
Others (Please Specify) ___________________
Analysis: - Only respondent who were at least having a current account were approached. So,
hundred percent respondents were having a current account in a bank.
Current A/c
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Savings A/c
Out of the 152 respondents 30 were also having saving account.
Fixed Deposit A/c
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Out of all the respondents surveyed no one found to have a fixed account.
Recurrent A/C
Out of all the respondents surveyed no one found to have a fixed account.
Q3. How often do you visit your Bank :
Analysis: -
Out of the 152 customers 92 (60.53%) are found to visit their respective bank branches Weekly
and 32 (21.05%) use to visit their branches daily. This shows the need to promote internet
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banking in these branch areas so that need to visit branches can be minimized and customers can
be benefited with this service.
Q4. For what purpose do you use your A/c:
i. Personal iv. Corporate
ii. Business v. Institutional
iii. Others (Please Specify) ___________________
Analysis: - All the Current Account customers surveyed in the three branch areas are using their current
account for business purpose, which means that there is a great need of taping the potential of
organizations working in other areas like corporate, institutional etc.
Q5. How do you like to carry out your Transactions?
i. Phone Banking iv. Personal Visit
ii. Internet Banking v. ATM
Others____________________________
Analysis: - All the Current Account customers surveyed in the three branch areas like to operate their
account by making personal visits mainly. This shows the need to promote internet banking in these
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branch areas so that need to visit branches can be minimized and customers can be benefited with
this service.
Q6. Rate the following features of your Bank?
(1=Very Good , 2=Good,3=Satifactory,4=Poor,5=Very poor)
Analysis: -
Timely Response: - Every respondent rated his/her bank good in the four point scale.
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Brand Image:-
100% customers of SBI, 33.33% customers of ICICI, 29% customers CBI, 50% customers of
HDFC, and 32 % customers of other banks rated their respective banks very good (highest) on
four point scale. This shows that CBI have loIst brand image among their customers.
So, the CBI can increase its brand image among the customers by encasing the opportunity of
being the official banking partner of the 2010 Common Ialth Games.
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Variation in products: -
As the variety of products offered by all the banks are almost same therefore customers rated
their respective banks in the same manner. So, there is almost no difference in customer rating fo
variation in products for all the banks.
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Online Facilities: -
As the number of Current Account customer who use internet banking was very less therefore almost
every customer rated their banks online facilities good due to lack of knowledge.
Employee Behavior: -
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Every other bank customer except CBI rated their bank’s employee behavior either good or very
good while 29% of customers of CBI rated its employee behavior as satisfactory which shows
the extent to which the customers of other banks are happy with the employee behavior of their
respective banks other then CBI.
This shows that the employee behavior is required to be made more customer friendly by
different kind of hospitality program.
Reliability: -
Almost customers of CBI were found to feel their bank reliable and secure.
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Customer Service:-
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The customers’ response was quite spread over three parameters i.e. satisfactory, good, and very
good. While 100% customers of SBI and ICICI, 50% of HDFC bank, and 81% of other bank
customers rated the services provided by their bank as good or very good, 88% customers of CBI
rated the customer service as good or very good. Other way around 50% of HDFC, 19% of other
bank customers and 18 percent of the CBI customers are only satisfied with the customer service
of their respective banks.
So, I can say that although the quality of customer service of CBI is competitive with respect to
other banks according to the customers’ response but, still there is good scope and need for
improvement so as to create an edge over the other competitor banks.
Infrastructure: -
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As far as infrastructure is concerned I can see from the figures that CBI is lagging behind all
other competitor banks as around 24% customers of CBI were only satisfied with the
infrastructure of the all three branches.
So I can say that the infrastructure of the following branches should be upgraded by increasing
space, making customer friendly layout, implementing fast, reliable and latest technology and
ATMs.
Q7. What factors you consider while choosing your Bank (Select all that apply)
i. Location iv. Security
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ii. Facilities v. Convenience
iii. Infrastructure
i. Location :-
All the respondents irrespective of their banks said that location (branch location) is on
the top of their priority list while choosing the bank with which they want to do business.
These result shows that how important it is for any bank to strategies the location of their
branches with respect to the surroundings and neighborhood for example it is found
during the study that the bank branches in the middle or near by the important/popular
market/industry place are more popular then their competitors.
ii. Facilities:-
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All the respondents as for the location irrespective of their banks said that facilities provided by
the banks are on the top of their priorities list while choosing the bank with which they want to
do business.
These result shows that how important it is for any bank to provide the best facilities to their
customers like net banking, phone banking, priority banking and presence of ATM in the vicinity
etc. I can say that banks should provide best facilities to their
iii. Infrastructure:-
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iv. Security:-
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v. Convenience:-
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Q8. What factors provides you awareness about the Bank and its Products:
i. Advertisements iii. Family
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ii. Agents iv. Friends
Most of the customers said that they have been provided awareness about their bank
through family and friends while only 10 % said that they got awareness about their bank
through advertisement. These figure shows that how much the banks (mainly Public
Sector Banks) depends on mouth publicity which shows great requirement of advertising
their products through mass media.
Q9. For what purpose you use a Current A/c:
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i. Payment to creditors iv. Collection from
debtors
ii. Working capital requirements v. Salary payments
iii. Operational expenses vi.

Others_______________________
Statistics
N Std. Error of Std.

Valid Missing Mean Mean Median Mode Deviation Variance Range
For what purpose you 152 0 1.00 .000 1.00 1 .000 .000 0
use a Current A/c?-
Payment to creditors
use a Current A/c?-
Working capital
requirement
use a Current A/c?-
Operational Expenses
use a Current A/c?-
Collection from debtors
use a Current A/c?-
Salary Payments
use a Current A/c?-
Others
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For what purpose you use a Current A/c?- Payment to creditors
Cumulative
Frequency Percent Valid Percent Percent
Valid yes 152 100.0 100.0 100.0
For what purpose you use a Current A/c?- Working capital requirement
Cumulative
Valid yes 25 16.4 16.4 16.4
no 127 83.6 83.6 100.0
Total 152 100.0 100.0
For what purpose you use a Current A/c?-Operational Expenses
Cumulative
Valid yes 12 7.9 7.9 7.9
no 140 92.1 92.1 100.0
Total 152 100.0 100.0
For what purpose you use a Current A/c?- Collection from debtors
Cumulative
Valid Yes 116 76.3 76.3 76.3
No 36 23.7 23.7 100.0
Total 152 100.0 100.0
For what purpose you use a Current A/c?-Salary Payments
Cumulative
Valid Yes 39 25.7 25.7 25.7
No 113 74.3 74.3 100.0
Total 152 100.0 100.0
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Q10. What features you look for in a Current A/c:
i. A/c to A/c funds transfer within Bank Branches.

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ii. A/c to A/c funds transfer with other Bank A/c.
iii. Demand draft facility / Pay order facility
iv. 24 hour Phone Banking, Net Banking , Mobile Banking.
v. Withdrawal and Cash Deposit at all Branches.
vi. Cheque Book (No. of leaves)
vii. RTGS/NEFT Transactions.
viii. Cash and Cheque pickup and Cash delivery.
ix. Minimum balance to maintain.
x. Others (Please Specify)__________________________.
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Statistics
N Std. Error of Std.

Valid Missing Mean Mean Median Mode Deviation Variance Range
What features you look for 152 0 1.00 .000 1.00 1 .000 .000 0
in a Current A/c?-
A/c to A/c fund transfer

within bank branches
A/c to A/c fund transfer 152 0 1.41 .040 1.00 1 .494 .244 1
with other bank branches
Demand draft facility/ Pay 152 0 1.23 .034 1.00 1 .422 .178 1
order facility
24 hour phone banking, 152 0 1.95 .017 2.00 2 .210 .044 1

net banking, Mobile
banking
Withdrawal and cash 152 0 1.27 .036 1.00 1 .445 .198 1

deposit at all branches
Check book(no. of leaves) 152 0 1.00 .000 1.00 1 .000 .000 0
RTGS/NEFT Transactions 152 0 1.56 .040 2.00 2 .498 .248 1
Cash and Cheque pickup 152 0 1.88 .026 2.00 2 .324 .105 1
and Cash delivery
Minimum balance to 152 0 1.92 .022 2.00 2 .271 .073 1

maintain
Other 152 0 2.00 .000 2.00 2 .000 .000 0
Frequency Table
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What features you look for in a Current A/c?-A/c to A/c fund transfer within
bank branches
Cumulative
Valid yes 152 100.0 100.0 100.0
What features you look for in a Current A/c?-A/c to A/c fund transfer with
other bank branches
Cumulative
Valid yes 89 58.6 58.6 58.6
no 63 41.4 41.4 100.0
Total 152 100.0 100.0
What features you look for in a Current A/c?-Demand draft facility/ Pay order
facility
Cumulative
Valid yes 117 77.0 77.0 77.0
no 35 23.0 23.0 100.0
Total 152 100.0 100.0
What features you look for in a Current A/c?-24 hour phone banking, net
banking, Mobile banking
Cumulative
Valid yes 7 4.6 4.6 4.6
no 145 95.4 95.4 100.0
Total 152 100.0 100.0
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What features you look for in a Current A/c?-Withdrawal and cash deposit at
all branches
Cumulative
Valid yes 111 73.0 73.0 73.0
no 41 27.0 27.0 100.0
Total 152 100.0 100.0
What features you look for in a Current A/c?-Check book(no. of leaves)
Cumulative
Valid yes 152 100.0 100.0 100.0
What features you look for in a Current A/c?-RTGS/NEFT Transactions
Cumulative
Valid yes 67 44.1 44.1 44.1
no 85 55.9 55.9 100.0
Total 152 100.0 100.0
What features you look for in a Current A/c?-Cash and Cheque pickup and
Cash delivery
Cumulative
Valid yes 18 11.8 11.8 11.8
no 134 88.2 88.2 100.0
Total 152 100.0 100.0
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What features you look for in a Current A/c?-Minimum balance to maintain
Cumulative
Valid yes 12 7.9 7.9 7.9
no 140 92.1 92.1 100.0
Total 152 100.0 100.0
What features you look for in a Current A/c-Other
Cumulative
Valid no 152 100.0 100.0 100.0
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Q11. With which Bank do you have your Current Account:
i. SBI iv. Central Bank of India
ii. ICICI Bank v. HDFC Bank
iii. Others (please specify) _____________________
As the area of concentration was Central bank of India therefore there are a fixed number
of customers which belong to Central Bnk of India and others include customers of banks
like Punjab National Bank, Syndicate Bank, Axis Bank, Andhra bank etc.
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Q21. Monthly Income (Rs) :
i. Upto 10000 iv. 50000-75000
ii. 10000-30000 v. 75000-100000
iii. 30000-50000 vi. Above 100000
Most of the customers lied in the range of up to 30000 Rs per month but the reality is not
so. The customers responded to be the lowest income group as they were not comfortable
in disclosing their real information.
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Comparative Analysis of financial performance of Central Bank of India (2009-2010) with
other competitor banks:
Last Price Market Cap. Net Interest Net Profit Total Assets
(Rs. cr.) Income
SBI 2,476.25 157,213.03 70,993.92 9,166.05 964,432.08
PNB 1,058.60 33,377.92 21,466.91 3,905.35 296,632.79
Bank of Baroda 726.50 26,555.75 16,698.34 3,058.33 278,316.71
Bank of India 403.15 21,202.06 17,877.99 1,741.07 274,966.46
Canara Bank 485.70 19,913.70 18,751.96 3,021.43 264,741.09
Union Bank 324.55 16,393.60 13,302.68 2,074.92 195,161.85
Indian Bank 246.35 10,587.38 7,857.06 1,554.99 84,121.74
IDBI Bank 122.15 8,854.49 15,272.63 1,031.13 233,572.01
Oriental Bank 353.35 8,852.82 8,856.47 905.42 137,431.00
Corporation Ban 573.55 8,227.00 7,294.60 1,170.25 111,667.30
Central Bank 152.35 6,157.10 12,064.31 1,058.23 182,671.64
Source:
http://www.moneycontrol.com/competition/centralbankindia/comparison/CBO01
The share price of Central Bank of India is less then most of its other competitive banks as we
can see from the table given above. The market capitalization of Central Bank of India is lowest
among its competitors which suggest that Central Bank of India has captured less market share as
compared to its competitors which suggests that Central Bank of India have reached smaller
community of people. The performance of Central Bank of India is found to be very good in
terms of net profit earned but is having less profit as compared to it most competitors.
79 | P a g e
Conclusion
Reasons preventing potential customers to open Current Account with
Central Bank of India:
• Lack of Differentiation
All other banks are providing the same kind of facilities and offers to the potential
customers as the Central Bank of India offering. So, the question arises that what
our bank is providing special to the potential customers to attract them and no
answer comes out as:
The Central Bank of India’s reputation is not the best in the market in
terms of Customer Care and also
The infrastructure of our branches is also not as good as the other private
banks in the market.
• Lack of Customer Awareness
One of the problems faced by the Central Bank of India branches is the lack of
customer (potential) awareness about the branch.
The customers are not Ill informed about the existence of central bank branches in
their vicinity. So the required steps should be taken to make an image of the bank
in the eyes of potential customers.
There is a keen requirement of organizing special kind of finance fair and

customer meets in order to increase popularity among the people like Educational
loan fair, Car Loan Fair, and customer meets.
• Employee behavior towards Potential Customers
The research suggests that the employees of branches have a cold behavior
towards the potential customers even when they come by themselves to the bank.
While the private banks use to search for the potential customers with the help of
agents the potential customers are not even entertained properly during their visits
to the Central Bank of India branches.
• Lack of attractive schemes to the customers

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There is a need of offering attractive and profitable schemes to the potential
customers in order to persuade them towards the bank and to motivate them to
work with Central Bank of India.
So, the Central Bank of India should also start attractive schemes like Home loan
in 7 days and priority banking.
RECOMMENDATION
Areas to be Focused by Central Bank of India (CBI):

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• Increase Customer Awareness
One of the biggest problems faced by all three branches is the customer
awareness about the location and existence of the CBI branch in the vicinity of
their area. In order to minimize this problem the branches should implement
marketing strategies in the local level like advertising on the local city channel
and promotional strategies
• Improve Customer Relations

The biggest problem faced by the current customers of the Central
Bank of India is the lack of interaction between the customers and the bank.
Almost every current customer has complained that there is absence of an
entity that can connect them with the bank and can increase a sense of relation
between customers and banks
• Improve Employee’s Behavior

Central Bank of India is facing the same problem that many of the
other PSU banks are facing these days that is the behavior of their employees
with the customers. The behavior of employees should be improved with the
help of workshops and training sessions
• Promotional Strategies
In order to increase the popularity and awareness of all three branches in
their respective regions among customer bank should use some promotional
strategies like
 Finance Mela/Fair (like car loan fair, Education loan fair or Housing
loan fair) to attract potential customers and
 Customer meeting sessions to hear about the problems being faced by

the current customers of the bank etc.
• Increase Security
All of the three branches i.e. Lawrence Road, Pitampura, and Nangloi are
82 | P a g e
not having a security guard/gun man that makes many of the customers feel
insecure during withdrawal or deposit of big amounts in the branches which is
a very serious point. So, to increase customer faith in the bank appointment of
security guard/gun man should be done to these branches
83 | P a g e
LIMITATIONS
Any research or study always has some limitations under which it has to be undertaken. This too
is not an exception. These limitations are poised due to the environment, some external or some
internal. This study has been conducted with utmost consideration to the adequacy of data and
quality of information, though the reliability of few sources can’t be fully assured.
The main limitations of the study are:-
• The sample size is quite small which is unable to represent the whole population.
• The geographical spread of the sample during our survey was only confined to Delhi
Region (North India).
• Many of the respondents were not very comfortable in disclosing their personal details
during the survey.
• Very often the respondents don’t express their true feelings, in such case their need,
preference can’t be accessed correctly.
• It was found that many of the respondents were unaware of some of the new technology
that has been launch by banks or were not educated to use those services like internet
banking and phone banking.
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• The non cooperative nature of many of the respondents acted as a main constraint during
our survey.
However, in spite of all these limitations best efforts have been taken to analyze and attain
the objective of our study.
FURTHER SCOPE OF RESEARCH
In today’s world where people have a busy life, good customer services and that is also in real
time has become a very important aspect. In a time where trends are set and dictated by
extremely pervasive private sector banks and where public sector banks are trying to match up
with the quality of service . More money then ever is being invested in public sector banks by
people as the global economy goes unstable.
The Market Research Project conducted has a wide scope of further research too since a large
segment of untapped potential market is still present in India. We have stressed upon a sample
where we have just found out the brand awareness quotient, the brand leader, and the perception
of the customers about different banking brands and the major players.
• The correlation between the perceived quality and celebrity endorsement can be explored.
• We have conducted our research mainly in the Delhi Region where people are more
conscious about the kind of customer service and facilities they are being provided than
perhaps tier two cities which are also big markets but where customer characteristics and
wants may differ.
• The correlation between the banks, their services and different products offered by them
has not been explored.
• In our survey we have concentrated more on the businessmen and industrialists where
there is space for other slot of people too. Further research can be conducted taking
enough samples for better results.
85 | P a g e
• Recently many new brands have also emerged in the markets which were not a part of our
study. These brands offer an array of additional features.
• We have kept our focus on mainly current account facility provided by the Central Bank
of India and its comparative study with the other rival banking institutions where the
scope can be wide enough to cover every aspect of different products offered by the
banks.
An in-depth study of Central Bank of India with any one rival brand could have been
conducted.
References
1. Organization Profile
Source: https://www.centralbankofindia.co.in/site/MainSite.aspx?status=2&menu_id=128
2. Corporate Vision
3. Corporate Mission
4. Current Account Facility
Source: http://www.iba.org.in/account.asp
Source: http://www.iloveindia.com/finance/bank/current-account.html
5. Literature Review
Source: http://www.livemint.com/2010/06/18163716/Central-Bank-of-India-
to-raise.html
Source:http://www.livemint.com/Articles/PopUp.aspx?id=b9b67c60-f3b6-
11de-8a00-000b5dabf613
Source:http://www.livemint.com/Articles/PopUp.aspx?id=5d987a8c-35bf-11df-
9354 000b5dabf613
6. Comparison with competitors
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Source:
http://www.moneycontrol.com/competition/centralbankindia/comparison/CBO01
87 | P a g e

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Summer Internship Report

Current Account Facility of

Under the Supervision of

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOL

Date: 16/03/09 Gaurav Singh

Enroll. No: A0101909427

Place: Noida MBA Class of 2011

Dr. Akhil Swami

Certificate from Faculty Guide 4

S.No. Chapter Name Page

2. Introduction to the Project 13

5. Research Analysis Report

♦ To have bouquet of product and services tailor-made to meet customer’s aspirations.

CURRENT ACCOUNT FACILITY

Current Account can be opened by:

• An individual who has attained majority.

Documents Required for Opening a Current Account

Following documents are required in case of individuals

• Two passport size photographs

2. Lawrence Road, and

Brief Summary of the Project

Central Bank of India to raise Rs2,500 cr from rights issue

House-rich, cash-poor? Now get income for life

Posted: Tue, Dec 29 2009 12:48 AM IST

Treasury to drag down H2 profit: Central Bank

Posted: Mon, Jan 4 2010 5:01 PM IST

Central Bank finalizing bids for NPA sale

Posted: Wednesday, February 24, 2010 6:22 PM IST

Booking govt-built flats: banks lend helping hand

Posted: Mon, Mar 22 2010. 9:06 PM IST

CHAPTER 4: RESEARCH METHODOLOGY

Methodology includes a philosophically coherent collection of theories, concepts or ideas as they

• Customer preference for facilities provided with current account facility

• Customer satisfaction and loyalty level

• Attractiveness and mode of customer awareness

• Additional services preferred

• Kind of way in which customers like to operate their bank by customer

• Qualitative marketing research - generally used for exploratory purposes - small

• Quantitative marketing research - generally used to draw conclusions - tests of specific

TECHNIQUES OF DATA COLLECTION

A questionnaire is a research instrument consisting of a series of questions and other prompts

Sampling is useful for a researcher as it saves time, effort and money.

• Defining the population of concern

• Specifying a sampling frame, a set of items or events possible to measure

• Determining the sample size

• Implementing the sampling plan

• Sampling and data collecting

• Reviewing the sampling process

2. Geographical Spread of the target population (Sampling Frame): The area of

4. Sample size: the sample size is 152.

DATA ANALYSIS TECHNIQUES

The various data analysis used in the present research is as follows:

INFERENTIAL DATA ANALYSIS

Regression analysis is often used to determine the effect of independent variables on a

Statistics included in the base software:

• Descriptive statistics: Cross tabulation, Frequencies, Descriptives, Explore, Descriptive

• Bivariate statistics: Means, t-test, ANOVA, Correlation (bivariate, partial, distances),

• Prediction for numerical outcomes: Linear regression

Sources of secondary research

• Elements of a research proposal and report 2005 © David S. Walonick, PhD

• Marketing Research by Naresh K Malhotra

Name _______________________________________ Age _Years