Study on Views of Customers on Retail Banking Products of Banking Industry in Krishna District, A.P.
Savings and investments are the most important ingredients of capital formation for an economy; therefore, the promotion of domestic savings is a must to boost the process of capital formation and development. The commercial banks are in the nature of a catalyst, converting savings into capital for productive investment. It is needless to say that capital formation largely depends on the effectiveness of these institutions. Thus, the commercial banks play stupendous role in converting potential investments into real and can make a significant contribution in eradicating poverty, unemployment and in bringing about progressive reduction in inter regional and inter sector disparities through rapid expansion of banking services. The commercial banks help in developing both internal and external trade of a country. Banks provide loans to retailers, traders, wholesalers for their inventory and also help in transporting of goods from one place to another by providing all types of facilities, such as discounting and accepting bills of exchange, providing overdraft facilities, issuing drafts, etc. The industrial sector is also not away from the help of the commercial banks. Banks finance the industrial sector in many ways. They provide short term, medium term and long term loans to the industry. Export promotion requires adequate preshipment packing credit, which is also, made available by these banks in the form of loans, cash credit and overdraft facilities. Banks by providing loans to the investors and consumers, are not only helping in increasing the standards of living of the people, but also help in reducing the recession in the economy through enhancing the demand for raw material and finished goods that ultimately leads to increase in the employment opportunities. Apart from the basic banking services such as deposits, loans and advances, banks have been traditionally rendering certain ancillary services also to their customers, such as: remittances, demand drafts, mail transfers, and telegraphic transfers, sale and purchase of exchange, locker facilities, safe custody and safe deposit vaults, guarantee facilities, sale of traveller's cheques, trustier and executor services etc. Among the services introduced by modern commercial banks during the last quarter of the century, the bank designed a system by which a bank's customer with many payments to make, instead of drawing a cheque for each item, may simply instruct the bank to transfer to the accounts of his creditors the sum due from him and he writes one cheque debiting his account with the total amount; By providing these diversified services, banks help in the growth of trade and industry to great extent. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 6470 IJTSRD Available Online www.ijtsrd.com Volume 1 Issue 6 Sep Oct 2017 Page: 278 Modern commercial banks in order to diversify their activities, entered into new non traditional areas of business, such as mutual funds, merchant banking activities, portfolio management, corporate counselling, and hire purchase finance, equipment leasing, venture capital and factoring service. These new activities result in the development of industry and trade in the country. In brief, it can be said that banks constitute the very lifeblood of economic society. Need for the Study The Banking industry has undergone rapid changes in the recent past after reforms in the financial sector especially after reforms with banking sector. The nature, size and structure of banking sector underwent severe threats and challenges. Retail banking is one of the areas which have drawn attention of the policy makers, executives and customers. It is in this context, the present study assumes significance. Nature of the Study The present study makes a comparative analysis of the select banks on products relating to Retail Banking. Scope of the Study Scope of the study is to understand the various services and the products offered by the banks to the individual customers and to find out the gaps in the services being offered and the customer expectations. An effort is also made to suggest the banks as to where the gaps exist and what needs to be done to close the gaps. The study also covered the problems faced by the executives in providing retail banking products to customers. The study is confined to KrishnaDist. as the investigator has more access to the officials of the banks as well as customers of the banks. The present study includes the retail products and services which are offered by select banks like Savings Bank a/c, FDRs, loans, technical services, mutual funds and insurances etc. The problems of both customers and executives are also analysed in utilising and providing these services. OBJECTIVES OF THE STUDY The following are the objectives of the study. 1. To discuss the growth and development of banking in India before and after reforms. 2. To present the frame work relating to retail banking, it constituents, problems, prospects etc. 3. To study the profiles of select banks and also to understand their retail banking practices. 4. To elicit the views of customers on the retail banking products of the banks under study. 5. To offer suggestions to the decision making authorities after drawing conclusion from the study. Methodology of the Study 1. Sample The investigator wrote to almost all the public and private sector banks to their head quarters to give permission to study their Retail Banking practices. However, with lot of efforts he could obtain permission from three banks to collect information in Krishna,district, they are 1. State Bank of India(a leading largest bank operating at National level) 2. ICICI Bank(a leading bank in private sector) 3. Andhra Bank (A leading bank operating at regional level) The investigator planned to collect data from 400 customers. But due to resistance from customers and also due to various other constraints the investigator could collect responses from 278 customers of select banks in Krishnadistrict. It is to be noted that convenience sampling technique has been employed in the study. Sources of Data a. Primary data. b. Secondary data Primary Data Primary data are those that are original in character and are collected afresh as the primary data is information collected for the first time. Primary data can be mainly collected by a well designed questionnaire. There are several methods in which the data is collected. SECONDARY DATA Secondary data refers to the use of information already collected and published or unpublished. Sources of Secondary data Annual reports of the banks. Textual information available in the library. Web sites. Magazines. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 6470 IJTSRD Available Online www.ijtsrd.com Volume 1 Issue 6 Sep Oct 2017 Page: 279 Data Analysis This is the process which helps to eliminate the unnecessary data and to collect relevant information which helps in problem solving and to overcome the problem of an enterprise or an organization. The collected data was analyzed with the help of statistical tools like percentages, Weighted Average, Standard Deviation, Co efficient of Variance, one way ANOVA etc. Table 1: Retail Banking Products considered by respondent customers Retail Banking Products No. of Respondents Percentage SBI AB ICICI