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1. A Project Report
On
“RETAIL BANKING”
For
By
Rajesh Kumar
Under the guidance of:
“Ms. Aditi Das”
Submitted to:
“NATIONAL INSTITUTE OF TECHNOLOGY”
“In partial fulfilment of the requirements for the award of the degree of
Master of Business Administration (MBA)”
Through
Department of Management Studies
National Institute of Technology Durgapur
Technology,
Mahatma Gandhi Avenue, Durgapur – 713209
West Bengal, India
1

2. DECLARATION
I hereby declare that the project report titled “RETAIL BANKING WITH
REFERENCE TO ALLAHABAD BANK” is my original work and has not
been published or submitted for any degree, diploma or other similar titles elsewhere.
This has been undertaken for the purpose of partial fulfilment of Master of Business
Administration (MBA) at National Institute of Technology, Durgapur (West Bengal).
Date: 13/ 07/2013
RAJESH KUMAR
Place: Durgapur, West Bengal
Roll No.: 12/MBA/23
2

3. PREFACE
This project report attempts to bring under one cover the entire hard work
and dedication put in by me in the completion of the project work on
Retail Banking with reference to Allahabad Bank.
I have expressed my experiences in my own simple way. I hope who goes
through it will find it interesting and worth reading. All constructive feedback
is cordially invited.
3

4. ACKNOWLEDGEMENT
It gives me great pleasure in presenting the project report that gives the details
of my project on “Retail Banking” carried out at Allahabad Bank, City Centre
Branch, Durgapur (West Bengal).
It is impossible to list all the people who have helped me during my project. I
take this opportunity to express my whole hearted thanks to Ms. Aditi Das
(Chief Manager) at Allahabad Bank who has treated me as a bank employee
& helped me in all my queries personally.
I would also like to express my deep sense of gratitude towards all managers,
staff, & to all those who directly or indirectly helped me in successfully
execution of my work.
Lastly but most essentially I would like to thank Mr. Sailaja Shankar
Bhattacharya (Senior Manager) without his help it wouldn’t be possible for
me to complete the project at the stipulated period of time.
Rajesh Kumar
Roll no.: 12/MBA/23
Session: 2012-14
4

5. CONTENTS
A. Executive Summary
7-11
B. Introduction to the concept
12-15
C. Industry profile
16
D. Company profile
- Product/Services Profile
- Workflow model (end to end)
17-19
E. Mckinsey’s Seven S Model
-Structure
-Skill
-Style
-Strategy
-System
-Staff
-Shared Values
-SWOT Analysis
29-31
32
33
33
34-35
35
35
36
37-38
F. Research Methodology
- Title of the Project
- Statement of the problem
- Objectives
- Operational definitions
- Data collection
- Statistical Tools used for research
- Sampling Technique – Sampling Unit, Sample Size and
39
40
40
40
41
41
41
42-44
20-26
27-28
5

6. Sampling method.
- Plan of Analysis
- Limitations to the study
45
46
G. Data Analysis and Interpretation
47-66
H. Summary of findings
67-68
I. Suggestions
69-71
J. Conclusions – Future Growth
72
K. Learning Experience
73
L. Annexure
- Financial Statements
- Questionnaires
- Bibliography
74
75-80
81-83
84
6

7. 7

8. EXECUTIVE SUMMARY
TITLE OF PROJECT
“A Study on Retail Banking with special reference to ALLAHABAD
BANK”
STATEMENT OF THE PROBLEM
As there are immense opportunities of the retail banking in India. This
dissertation is on the issues and challenges in the retail banking because of the
competition of the various banks and the customer satisfaction of the services
which the banks are providing and at the same time to solve the complaints of
the customer and maintaining the sound relationship for the future and by this
way to estimate the future growth of the retail banking.
OBJECTIVES
To study the issues and challenges in retail banking.
To study the recent trends in retail banking.
To ensure high satisfaction level and reduce percentage of
complaints of customers in retail banking.
To estimate the future growth of Indian retail banking.
To understand Optimization of retail banking channels.
To suggest strategies for improvement in Customer Service.
8

9. DATA COLLECTION
Data was collected from two sources-primary and secondary sources.
1. Primary data collection- The primary data was collected by means
of survey. It was collected from different customers through
questionnaire.
2. Secondary data collection-This data was collected from
Internet, Company’s websites, Books & Magazines.
SAMPLE SIZE
Sample size was restricted to 50 respondents, since it was not possible to cover
the whole universe in the available time period.
SAMPLING METHOD
For this research Non- Probability Convenience Sampling has been used
because time limit for the completion of the work is limited and also managers
and employees were not available all the time.
Area of Study – Durgapur, West Bengal
Duration -
2 months (13th May ’13 – 13th July ’13)
9

10. SUMMARY OF FINDINGS
90% of customers are happy with the bank timings & they belief that
it is very good.
80% of respondents like the branch ambience & layout & find it
friendly. 80% of respondents said branch was clean and well
maintained.
Respondents were of view that Branch personnel had listened to them
patiently and have been able to respond to their queries and
clarifications.
74% of respondents responded that Branch personnel had been very
helpful and courteous.
72% of respondents opinion that branch personnel does ‘Need
Analysis’ & ‘Risk Assessment’ of customer savings before
recommending any investment option to them.
86% of respondents that branch personnel are aware of Product and
Services and responded to your queries.
10

11. SUGGESTIONS
As 10% customer response is not good for the clarification of the queries
response towards them so bank personnel should improve this issue
because customer is a source through which business can be increase and
satisfy customers is a source to create more customers, with reference to
table no. 4.
As it is only 10% respondent said that sometime there was a error in the
transaction happened so to avoid these kinds of errors should be avoided
because it is unnecessarily results in wastage of time for both staff
members and service rendered, with reference to table no. 9.
With reference to table no. 6, large number of branch personnel should do
‘Need Analysis’ & ‘Risk Assessment’ before recommending any
investment option to customer.
With reference to table no. 7, more branch personnel should be aware of
Product and Services and responded to customer’s queries.
With reference to table no. 10, Allahabad Bank should look into the
feedback provided by customer and takes necessary action wherever
required.
With reference to table no. 12, Allahabad Bank should focus on Mahila
Sanchay Saving Bank account as small 10% of customer likes this.
11

12. 12

13. RETAIL BANKING AN INTRODUCTION
Retail banking has become a very important component in the business mix of
banks. Retail banking offers multiple comfort factors for banks to do business.
Large and divergent customer base across income segment offers huge scope
for banks to develop and offer multiple products and services. In addition to
traditional products and services offered by banks over the years, the retail
model has undergone rapid innovation in the past decade with regard to
products, processes, people and technology.
Technology has become the driver for retail banking explosion, and technology
products like ATM, Internet Banking, Mobile Banking, Card products like
Debit Cards and Credit Cards and remittance products like RTGS and NEFT are
making their presence felt in retail space. Banks are embracing different
strategies, redesigning their conventional business silos, reengineering their
channels, product and services to increase the share of customer wallet.
A bank functions can be divided into various divisions like:
Retail/Personal Banking: This division provides a range of financial services
to individual customers and small companies. It operates mainly through branch
networks.
Retail banking includes routine transactions like deposits and withdrawals of
money; money transfer; foreign currency exchange and traveller's cheque
encashment. They also deal with personal and small loans, credit and
mortgages; insurance policies; investment schemes; pension funds; and advice
to customers on various financial matters. Apart from offering home loans, car
loans, educational loans, consumer loans, etc. they also develop various deposit
schemes and help people fill their coffers.
13

14. Corporate Banking: They deal with medium to large-scale companies and
government agencies. It could start at the local branch manager level, though
more complex dealings are routed through corporate divisions of clearing banks
and their merchant banking subsidiaries. Corporate banking deals with credit
and advances, trade finance, foreign exchange management, asset management,
lease financing of heavy equipment, infrastructure, machinery, credit risk
assessment, etc. They also advise clients on matters such as corporate mergers
and acquisition, raising capital and business strategy regarding competitors and
outside factors.
Merchant Banking: Investment management is the primary activity of this
group. It could be on behalf of corporate clients, or institutional investors-like
pension funds, investment trusts, or those in the securities business. This groups
also handles public issue and marketing of shares, debentures and other such
papers. It may also include other stock market functions like dematerialization
services, investment advisory services, etc. Merchant banking executives
research into capital market, advice and manage funds of various corporate and
individual customers.
Treasury group: This group takes care of the total funds of a bank including
foreign exchange reserves. Responsibilities include bank portfolio management,
dealing in foreign currency, etc. There are Forex (foreign exchange) dealers in
this group who exclusively deal with the foreign market. They buy and sell
foreign exchange at the minimum exchange cost thereby earning maximum
profit from the transactions.
Rural Banking: This group deals with the banking and credit needs of people
in the rural sector. Not all banks have this group and some banks have separate
subsidiary companies for rural banking.
14

15. Product Management: This group conceptualizes various banking services and
then develops; implements and manages them. They have the responsibility for
a banking product (meaning services like personal loans, home loans, credit
cards, loans against shares, educational loans, etc.).
Apart from these main functional groups, there is an appraisal group to analyse
economic feasibility of industrial projects, the bank's exposure to financial risk
and long term returns. There are internal auditors who audit the bank's internal
books of accounts.
There are various groups of professionals like lawyers, engineers, agricultural
scientists, chartered accountant, company secretary, cost accountant and
economists who work in various departments in advisory capacities. They help
make decisions on issues that are legal, technical or economic in nature. For
example, the economist advises various functional groups on the implications of
the Union budget on the business of the banks, consumer buying pattern, etc.
15

16. POTENTIAL FOR RETAIL IN INDIA: IS SKY THE LIMIT
The Indian players are bullish on the Retail business and this is not totally
unfounded. There are two main reasons behind this. Firstly, it is now undeniable
that the face of the Indian consumer is changing. This is reflected in a change in
the urban household income pattern. The direct fallout of such a change will be
the consumption patterns and hence the banking habits of Indians, which will
now be skewed towards Retail products. At the same time, India compares
pretty poorly with the other economies of the world that are now becoming
comparable in terms of spending patterns with the opening up of our economy.
For instance, while the total outstanding Retail loans in Taiwan is around 41%
of GDP, the figure in India stands at less than 5%. The comparison with the
West is even more staggering. Another comparison that is natural when
comparing Retail sectors is the use of credit cards. Here also, the potential lies
in the fact that of all the consumer expenditure in India in 2001, less than 1%
was through plastic, the corresponding US figure standing at 18%.
16

17. 17

18. Type
Public company
Traded as
BSE: 532480
NSE: ALBK
Industry
Banking, Financial services
Founded
1865
Headquarters
Kolkata, India
Number of
2,500 branches (2012)
locations
Key people
Services
Shubhalakshmi Panse(Chairman & MD)
T.R Chawla (Executive Director)
Finance and insurance
Consumer banking
Corporate banking
Revenue
16,822 crore(US$3.1 billion) (2012)
Operating income
3,770 crore(US$690 million) (2012)
Net income
1,867 crore(US$340 million) (2012)
Total equity
500 crore (US$92 million) (2012)
Website
allahabadbank.in
18

19. Allahabad Bank which began operations in 1865, has its head
head-quarters
in Kolkata is the oldest joint stock bank in India. The bank was founded
in Allahabad in 1865 and as of 31 March 2012 now has over 2500 branches
throughout India. The bank has a branch in Hong Kong and a representative
office in Shenzen.
19th century
On 24 April 1865, a group of Englishmen at Allahabad founded Allahabad
Bank. By the end of 19th century it had branches at Jhansi, Kanpur,
Lucknow, Bareilly, Nainital Calcutta, and Delhi.
Nainital,
20th century
In the early 20th century, with the start of Swadeshi movement, Allahabad Bank
witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired
Allahabad Bank with a bid price of 436 (US$8.00) per share. In 1923 the bank
moved its head office and the registered office to Calcutta for reasons of both
operational convenience and business opportunities. Then in 1927 Chartered
Bank of India, Australia and China acquired P&O Bank. However, Chartered
Bank continued to operate Allahabad Bank as a separate entity.
On 19 July 1969, the Government nationalised Allahabad Bank, together with
13 other banks.
In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta
Calcuttabased bank that had been established in 1940. Two years later, Allahabad Bank
established
AllBank
Finance
Ltd,
a
wholly
owned Merchant
o
Banking subsidiary.
21st century
The government's ownership of Allahabad Bank shrank in October 2002 after
the bank engaged in an Initial Public Offering (IPO) of
10 crore (US$1.8 million) of shares, each with a face value 10. The IPO
reduced the Government's shareholding to 71.16%. Then in April 2005 the bank
shareholding
conducted a second public offering of 10 crore of shares, each with a face
value 10 and selling at a premium of 72. This offering reduced the
Government's ownership to 55.23%.
In June 2006 the bank opened its first office outside India when it opened a
representative office in Shenzen Mainland China. In February 2007, Allahabad
Shenzen,
Bank opened its first overseas branch, in Hong Kong. In March, the bank's
business crossed the 1 million crore mark.
19

20. PRODUCT AND SERVICES
1. Personal Banking
2. Social Banking
3. MSME Banking
4. Corporate Banking
5. International Banking
6. Other Services
20

21. PERSONAL BANKING
Personal banking of Allahabad Bank is further divided into three main categories:
i)
Deposit Products
ii)
Retail Credit Products; and
iii) Other Credit Products
Deposit Products:
It includes:a) Flexi-Fix Deposit
b) Mahila Sanchay Account
c) Monthly Plus
d) Current Plus Deposit Scheme
e) Rs 5 Banking
f) Vikash SB Account
g) Sishu Mangal Deposit Scheme
h) Premium SB Account
i) Premium Current Account
j) Tax Benefit Term Deposit Scheme
21

22. Retail Credit Products:
It includes:
a) Housing Loan
b) Saral Loan
c) Furnishing Loan
d) Gyan Dipika Scheme
e) Gold Loan Scheme
f) Personal Loan for Pensioners
g) Education Loan
h) Loan Against NSC(National Saving Certificate)/KVP(Kisan Vikas Patra)
i) Property Scheme
j) Reverse Mortgage Scheme
k) Loan Scheme for Doctors/Medical Practitioners
l) Commercial Vehicle Finance
m) Dream Car
n) Bank Rent Scheme
o) Trade Scheme
p) IPO/FPO Finance Scheme
q) Mobike Scheme
r) Overdraft Facility in SB Account
s) Housing Loan Scheme for NRI’s(Non-Resident Indians)/PIO’s(Persons of
Indian Origin)
Other Credit Products:
a) Akshay krishi – Kisan Credit Card Scheme
b) Allahabad Bank – EXPO Scheme
c) Allahabad Bank Tax Benefit Term Deposit Scheme
22

23. SOCIAL BANKING
Social Banking is also further segmented into three different categories:
i)
Priority Sector
ii)
Financial Inclusion
iii) Credit Facilities to Minority Communities
MSME BANKING
MSME stands for Micro, Small and Medium Enterprise. An “enterprises”
means an Industrial undertaking or a business concern or any other
establishment, by whatever name called, engaged in the manufacture or
production of goods pertaining to any industry specified in the First Schedule to
the Industries (Development and Regulation) Act 1951 or employing plant and
machinery in the process of value addition to the final product having a distinct
name or character or use or engaged in providing or rendering of any service or
services.
Some important MSME portals of Allahabad Bank are:
i)
MSME Policy of the Bank
ii)
Presence in MSME Cluster
iii) Specialized MSME Branches in Each State
iv) MSME Campaigns held and number of borrowers given loan in the
campaigns
v)
Training provided for the bank staff on MSME needs and number of
persons trained
vi) Online system of acknowledgement of loan application and loan tracking
system
vii) Format of loan application form with check list
viii) Interest on MSME/Services Charge
ix) OTS Scheme of the Bank
x)
Rehabilitation of sick MSME
xi) Number of people trained in RSETI’s and of them those provided credit
linkage
xii) Branch Level Customer meets held
xiii) Grievance Redressal Mechanism for MSME’s
xiv) Name of Nodal Officer of the bank for MSME complaints and queries:
Sri A.K. Mohapatra
Assistant General Manager
Priority Sector Credit Department
Head Office, 2 N.S. Road
Kolkata – 700001
23

24. CORPORATE BANKING
Corporate banking includes:
i)
Cash Management Services
ii)
Gold Card Scheme for Exporters
iii) Allahabad e – Trade
iv) 3 – IN – 1 Account (Triple Advantage)
INTERNATIONAL BANKING
Allahabad Bank is well spread out in India and one overseas Branch at Hong
Kong, besides a Representative office at Shenzhen, China. Bank has also
arrangements with correspondents at various important overseas locations,
which will ensure extending to all our NRI customers rich banking experience.
We understand your needs and value your patronage and would request you to
invest your surplus funds in the various products offered by our Bank.
Non – Resident:
A. In terms of Regulation 2(vi) of FEMA 5, a Person resident outside India, who is
a citizen of India or is a person of Indian Origin.
B. Indian Residents working abroad on assignment with Foreign Governments,
Government agencies or in UNO and its affiliates IMF, IBRD etc and
Government officials and other officials of PSU's deputed abroad or
assignments or posted abroad to their own offices including Diplomatic
Missions abroad.
C. A person of Indian Origin who is a citizen of any other country other than
Bangladesh or Pakistan if:
i.
ii.
iii.
He/She at any point of time, held an Indian Passport.
He/She or either of his/her parents or any of his/her grandparents was a citizen
of India by virtue of Constitution of India or Citizenship act 1955 (57 of 1955).
The persons are a spouse of an Indian Citizen or a person referred to in sub
clause b (i) or (ii) above.
24

25. Students going abroad for studies are treated as Non Resident Indians provided
their stay abroad is for more than 182 days in the preceding financial year and
broad
their intention to stay outside India for an uncertain period when they go abroad
for studies.
Deposit Account:
Non Resident Indians can open accounts under Repatriable and Non
NonRepatriable deposit schemes. In respect of Repatriable scheme the NRIs have
the choice of following schemes for depositing their savings with Our Bank.
25

26. OTHER SERVICES
THER
Other important services of Allahabad Bank are:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
xvi)
xvii)
xviii)
xix)
Insurance and Mutual Fund
Government Business
Depository Services
E – Products
Cards
ASBA(Application Supported by Block Amount) Facility
Account – Portability
Agriculture Debt Wavier
All Ayushman Bima Yojana
Samadhan Financial Literacy & Credit Counselling Centre
Deceased – Settlement
Depository Receipt
International Debit – Cum – ATM Card
Money Transfer Services
National Eligibility Fund Transfer(NEFT)
New Pension System(NPS)
Non – Life Business Insurance
Real Time Gross Settlement(RTGS)
Regional MSME Care Centres
NOTE:
VARIOUS RETAIL LENDING SCHEMES (Hyperlink):
Rate of Interest under Retail Credit Products.
Discretionary Authority under Various Retail Schemes.
Services Charges, Processing Fees and Prepayment Fees.
26

27. WORK FLOW MODEL
DEPOSITS
Customer Approaching the
Bank/Enquiry
Introduction
Documentation
Saving, Fixed, Current
and Recurring A/C
A/C holder facility
Deposits
Withdrawal
Cashier
Cashier
Cash supervision
Cash supervision
Account for the customer
27

28. ACCOUNT OPENING
Choose an Institution
Go to the Bank or Website
Pick the Product You Want
Provide Your Information
Agree to Terms
Print, Sign, and Mail (If Applicable)
Congratulate Yourself!
28

29. MCKINSEY’S SEVEN S MODEL AS APPLICABLE TO THAT
ORGANIZATION
The Seven-S is a framework for analyzing organizations and their effectiveness.
It looks at the seven key elements that make the organizations successful, or
not: strategy; structure; systems; style; skills; staff; and shared values.
Consultants at McKinsey & Company developed the 7S model in the late 1970s
to help managers address the difficulties of organizational change. The model
shows that organizational immune systems and the many interconnected
variables involved make change complex, and that an effective change effort
must address many of these issues simultaneously.
29

30. 7-S Model – A Systemic Approach to Improving Organizations
The 7-S model is a tool for managerial analysis and action that provides a
structure with which to consider a company as a whole, so that the
organization's problems may be diagnosed and a strategy may be developed and
implemented.
The 7-S diagram illustrates the multiplicity interconnectedness of elements that
define an organization's ability to change. The theory helped to change
manager's thinking about how companies could be improved. It says that it is
not just a matter of devising a new strategy and following it through. Nor is it a
matter of setting up new systems and letting them generate improvements.
“ Shared values ―are commonly held beliefs, mindsets, and assumptions that
shape how an organization behaves – its corporate culture. Shared values are
what engender trust. They are an interconnecting centre of the 7S’s model.
Values are the identity by which a company is known throughout its business
areas, what the organization stands for and what it believes in, it central beliefs
and attitudes. These values must be explicitly stated as both corporate objectives
and individual values
― Strategy” is a plan of an organization formulates to reach identified goals,
and a set of decisions and actions aimed at gaining a sustainable advantage over
the competition. ―Systems” define the flow of activities involved in the daily
operation of business, including its core processes and its support systems. They
refer to the procedures, processes and routines that are used to manage the
organization and characterize how important work is to be done. ―Style” refers
to the cultural style of the organization, how key managers behave in achieving
the organization's goals, how managers collectively spend their time and
attention, and how they use symbolic behaviour. How management acts is more
important that what management says. ―Staff” refers to the number and types
of personnel within the organization and how companies develop employees
30

31. and shape basic values. ―Skills” refer to the dominant distinctive capabilities
and competencies of the personnel or of the organization as a whole.
Structure” is the organizational chart and associated information that shows
who reports to whom and how tasks are both divided up and integrated. In other
words, structures describe the hierarchy of authority and accountability in an
organization, the way the organization's units relate to each other: centralized,
functional
divisions
(top-down);
decentralized
(the
trend
in
larger
organizations); matrix, network, holding, etc. These relationships are frequently
diagrammed in organizational charts. Most organizations use some mix of
structures - pyramidal, matrix or networked ones - to accomplish their goals.
31

32. STRUCTURE
Board of Directors
Mrs. Subhalakshami Panse
Shri Tilak Raj Chawla
Shri Arun Tiwari
Dr. Shashank Saksena
Shri A. Udgata
Chairman & Managing Director Allahabad Bank
Executive Director
Executive Director
Government Nominee Director
RBI Nominee Director
Allahabad Bank
Allahabad Bank
Allahabad Bank
Allahabad Bank
Shri Rajesh Madanmohan
Chatruvedi
Chartered Accountant Director
Allahabad Bank
Shri Gour Das
Workmen Employee Director
Allahabad Bank
Dr. Sudip Chauduri
Shareholders’ Director
Allahabad Bank
32

33. SKILLS
Highly skilled candidates are recruited at various levels across the organization.
Skills can be classified broadly into highly skilled and semi skilled routine
work. Various training program are organized regularly to impart training needs
of the employees.
STYLE /CULTURE
The culture of the organisation, consisting of two components:
Organisational culture: the dominant values and beliefs, and norms,
which develop over time and become relatively enduring features of
organisation life.
Management Style: More matter of what managers do than what they
say how do a company‘s managers spend their time? What are they
focusing attention on?
Symbolism – the creation and maintenance (or sometimes deconstruction) of
meaning is a fundamental responsibility of managers.
Building a high performance culture is another key prerogative of the HR
function. Allahabad bank envisage a credible and transparent performance
management process that helps in aligning individual goals with corporate
objectives, both quantitative and qualitative, and encourages cross sell and team
spirit. Allahabad bank performance management process will be supported by a
robust rewards and recognition strategy for each business and a market based
compensation structure that is flexible, responsive and helps retention through
asset building and wealth creation for top performers.
33

34. STRATEGY
Being one of the leading banking institutions with rich culture of
professionalism the bank has various strategies to tackle with competitors in the
market. The bank has the strategy to make use of the growing potential of the
rural sector as well as the global academy, the business landscape will be
changing magically and so will the financial service need.
The bank has the strategy to enhance the reach of anytime and anywhere
banking. It has the ATM’s almost in all the cities and in good numbers. With
the growing of the net banking the bank have several new products and facilities
with state-of-the-art facilities, enabling you to conduct all your banking
activities using your personal computer, from the comfort of your home or
office. Thus providing you with secure, 24 hour access to all your accounts
from anywhere in the world.
Unique Advantages:
Single Access Key: Our revolutionary technology allows you to access
your account with your debit card PIN. Just log on to our website, select
Internet Banking services and key in your Customer ID and debit card
PIN. On successful validation you will be allowed to select an Internet
password. It's that easy.
Secure Technology: For the first time in India, our Two Factor
Authorization allows for "One Time Passwords" for Internet Banking
transaction authentication to be delivered via SMS to your Mobile Phone.
This password enhances your Internet Banking security and allows you
the freedom of banking without remembering multiple passwords.
34

35. Instant Payment Solutions: Our Real Time Gross Settlement (RTGS)
Payment and Electronic Funds Transfer (EFT) facilities allow you to
transfer funds to own or third party accounts instantly. You can also
request for multiple Demand Drafts at various locations and set up
standing instructions for your account to execute routine payments
SYSTEM
Formal and informal procedures that support the strategy and structure (systems
are more powerful than they are given credit).
The bank follows a systematic procedure at all the levels. The bank has very
good performance appraisal system, training and development system, resource
allocation system, distribution and recovery system. The instructions flow from
top management to lower levels of management.
The training needs are developed after TNI (Training Needs Identification) and
all the programs are put on the monthly/annual training calendar to be
implemented.
STAFF
The people/human resources management – processes used to develop
managers, socialization processes, ways of shaping basic values of management
cadre, ways of introducing young recruits to the company, ways of helping to
manage the careers of employees.
Allahabad Bank envisaged that for an individual to work with the organization
in perfect synergy, his/her goals had to be linked with the goals of the
organization. This process of aligning individual and organizational goals was
termed as the performance management process. The main objective of these
innovative performance management practices was to encourage the employees
to think innovatively.
35

36. SHARED VALUE
The bank aimed at building a culture to inculcate professional entrepreneurship
in them to make themselves and the shareholders prosperous. Allahabad Bank
has planned to steadily increase its presence in retail business. Earlier bank has
purposely maintained a low-key presence in the retail market, now is planning
to increase exposure in this segment. There is tremendous scope for Allahabad
Bank’s growth as it was trying to take care of the latent needs of the customers
with highly skilled and involved employees.
36

37. SWOT ANALYSIS
STRENGHTS:
•
It has an extensive distribution network comprising of 2716 branches.
•
The Bank has a strong retail depository base & has good number of
customer.
•
Bank boasts of strong brand equity.
•
The bank has a near competitive edge in area of operations.
•
The bank has a market leader in cash settlement service for the
major stock exchanges in its country.
•
Allahabad Bank is one of the largest public sector banks operating in
India.
•
It has a highly automated environment in terms of information
technology & communication system.
•
Infrastructure is best.
•
It has many innovative products like kids Instapay, NRI services.
WEAKNESS:
Some time account opening and delivery of cheque book take
comparatively more time.
Occasionally link failure.
37

38. OPPORTUNITY:
Branch expansion.
Door step services.
Infrastructure improvements & better systems for trading &
settlement in the government securities & foreign exchange markets.
THREATS:
o The bank has started facing competition from players like SBI, HDFC
Bank in the finance market itself.
o This reduces the profit margins in the future.
o
Some Private Banks have 7 days banking.
38

39. 39

40. TITLE OF THE PROJECT
“A Study on Retail Banking with special reference to Allahabad Bank”
STATEMENT OF THE PROBLEM
As there are immense opportunities of the retail banking in India. This project is
on the issues and challenges in the retail banking because of the competition of
the various banks and the customer satisfaction of the services which the banks
are providing and at the same time to solve the complaints of the customer and
maintaining the sound relationship for the future and by this way to estimate the
future growth of the retail banking.
OBJECTIVES OF STUDY
To study the issues and challenges in retail banking.
To study the recent trends in retail banking.
To ensure high satisfaction level and reduce percentage of
complaints of customer in retail banking.
To estimate the future growth of Indian retail banking.
To understand Optimization of retail banking channels.
To suggest strategies for improvement in Customer Service.
40

41. OPERATIONAL DEFINITION
Retail banking refers to banking in which
banking institutions execute
transactions directly with consumers, rather than corporations or other banks.
Services offered include: savings and checking accounts, mortgages, personal
loans, debit cards, credit cards, and so forth. And to know about the customer’s
perceptions about the different products of the bank like current account,
savings account, FD, Smart Saver, Smart Access and others.
DATA COLLECTION
There are several approaches of data collection. The primary sources of data
collection are done through: Observation
Questionnaire
Questionnaire:
Questionnaire is the method of data collection, which is very much popular,
particularly in big cities. Different modes of questions are put up on the paper
and the particular universe, on which the research is conducted, are asked to fill
their responses.
The Secondary source includes data collection through:
Magazines, Journals, Books, Newspapers etc.
Company Website.
41

42. 42

43. SAMPLING TECHNIQUE
(a) Sampling Unit: - Walk in customers and the company database of high
ended customer.
(b) Sample Size:Sample size for this project was restricted to 50 respondents. Since it was not
possible to cover the whole universe in the available time period, it was
necessary for me to take a sample size of 50 respondents.
(c) Sampling Method:There are three methods of sampling:1. Probability Sampling
2. Non-Probability Sampling
3. Quota
For this research work Non- Probability Convenience Sampling has been
chosen because time limit for the completion of the work is limited.
Area of Study - Durgapur, West Bengal
Duration -
2 months (13th May ’13 – 13th July ’13)
43

44. DATA COLLECTION METHOD
Data for the present study is collected from two sources:
1. Primary Data:
The data are collected directly from the universe by conducting
interviews, etc. these are the original sources from which the researcher
directly gathers data which are not previously referred. All the people
from different profession were personally visited and interviewed. They
were the main source of primary data. The method of collection of
primary data was personal direct interview through a structured
questionnaire.
The primary data was collected by means of survey. Questionnaires were
prepared and customers of Allahabad Bank were approached to fill up these
questionnaires. The filled up information was later analyzed to obtain the
required information.
2. Secondary Data:
The data are collected from the secondary sources such as magazines,
journals, etc. These sources consist of already variable data in the form of
statements, and reports, which may include sensory reports, financial
statements of the company, reports of governments departments, etc.
It was collected from internal sources. The secondary data was collected
on the basis of organizational file, official records, newspapers,
magazines, management books, preserved information in the company’s
database and the website of the company.
Both Primary and Secondary sources was used for data collection.
For primary source, Questionnaire was used. For secondary source
Internet, Books and Newspapers etc were used.
44

45. RESEARCH DESIGN
Research design is simply the framework or plan for a study, used as a guide in
collecting and analyzing data. There are three types of Research Design:1. Exploratory Research Design
2. Descriptive Research Design
3. Casual Research Design
For the study, Exploratory Research Design was undertaken to classify the
investors on their risk and return profile.
PLAN OF ANALYSIS
The data obtained from the structured questionnaire was interpreted and
recorded. The table and graph were constructed using data from the
questionnaire through simple techniques like average, percentage, etc. which
was then used for analyzing the acquired data.
45

46. LIMITATIONS
Designing own and new financial products is very costly and time
consuming for the bank.
Customers now-a-days prefer net banking to branch banking. The banks
that are slow in introducing technology-based products, are finding it
difficult to retain the customers who wish to opt for net banking.
Customers are attracted towards other financial products like mutual
funds etc.
Though banks are investing heavily in technology, they are not able to
exploit the same to the full extent.
A major disadvantage is monitoring and follows up of huge volume of
loan accounts inducing banks to spend heavily in human resource
department.
Long term loans like housing loan due to its long repayment term in the
absence of proper follow-up, can become NPAs.
The volume of amount borrowed by a single customer is very low as
compared to wholesale banking. This does not allow banks to exploit the
advantage of earning huge profits from single customer as in case of
wholesale banking.
46

47. 47

48. Profile of Respondents
Respondents were the customers of Allahabad Bank of Durgapur
ere
Bank
city (West Bengal) of age group 21
21-65 years.
A. Opinion on Branch experience.
The Branch timings (10:0 am to 3:30 pm from Monday to Friday and
(10:00
10:00 am to 12:30 pm on Saturday are convenient?
Saturday)
Table: 1
Parameter
Very Good
Good
Satisfactory
Could be better
In numbers
In percentage
45
5
0
0
90
10
0
0
Interpretation
The purpose of this question is to know the whether the bank timings are
convenient for the custom 90% of respondents says that bank timings are
customer,
very good and 10% of respondent replied that timings are good. None of the
customers have any problem with resp to timings.
respect
Inference: As 90% responded very well, it seems high number are happy
,
with bank timings.
48

49. Is the branch ambience & layout is very friendly?
Table: 2
Parameter
In numbers
In percentage
Very Good
40
80
Good
7
14
Satisfactory
2
4
Could be better
1
2
Interpretation
80% were of the respondent says that branch ambience is very good, 14% were
of the respondent replied that branch ambience is good while 4% says that it is
satisfactory & just 1% replied that it could be better.
Inference: As 80% of respondents say branch ambience is very good, so
not too many respondents like the branch ambience.
49

50. Is the Branch was clean and well maintained?
Table: 3
Parameter
Very Good
Good
In numbers
40
7
In percentage
80
14
Satisfactory
2
4
Could be better
1
2
Interpretation
80% were of the respondent says that branch cleanness is very good, 14% were
of the replied that branch cleanness is good while 4% says that it is satisfactory
& just 1% replied that it could be better.
Inference: As 80% of respondents say branch cleanness is very good, so
not too many respondents like the branch cleanness.
50

51. B. Opinion of the customer regarding Branch personnel.
Is the branch personnel have listened to you patiently and have been able
to respond to your queries and clarifications?
Table: 4
Parameter
In
numbers
In percentage
Very Good
Good
38
7
76
14
Satisfactory
Could be better
3
2
6
4
Interpretation
76% of respondent says that branch personnel listened patiently& have been
able to respond to their queries, 14% of respondents replied that it is good.
While only 6% of respondent says that it is satisfactory and 4% replied that it
could be better.
Inference: As only 76% of respondent says that branch personnel listens
patiently and have been able to respond to queries and clarifications, so not too
many respondents are satisfied.
51

52. Is the branch personnel have been very helpful and courteous?
Table: 5
Parameter
In numbers
In percentage
Very Good
37
74
Good
8
16
Satisfactory
3
6
Could be better
2
4
Interpretation
74% of respondent says that branch personnel have been very helpful and
courteous, 16% of respondents replied that it is good. While only 6% of
respondent says that it is satisfactory and 4% replied that it could be better.
Inference: As only 74% of respondent says branch personnel have been very
helpful and courteous, so not too many respondents are satisfied.
52

53. Is the branch personnel have done a “Need Analysis” & “Risk
Assessment” before recommending any investment option?
Table: 6
Parameter
Very Good
Good
Satisfactory
Could be better
In numbers
36
10
3
1
In percentage
72
20
6
2
Interpretation
72% of the respondent says that risk assessment before recommending any
investment is very good, 20% of respondents replied that it is good, 6% of
respondent says that it satisfactory and only 2% replied it could be better.
Inference: As only 72% of respondent says that branch personnel does a
“Need Analysis” & “Risk Assessment” before recommending any investment
option, so not too many respondents have positive response.
53

54. Is the branch personnel were aware of Product and Services and
responded to your queries?
Table: 7
Parameter
In numbers
In percentage
Very Good
43
86
Good
3
6
Satisfactory
3
6
Could be better
1
2
Interpretation
86% respondent says that branch personnel responded to their queries and is
very good, 6% says to be good & 6% satisfactory. Only 2% said it could be
better.
Inference: As 86% of respondent says that branch personnel were aware of
Product and Services and responded to customer queries, so not too many
respondents are satisfied.
54

55. C. Customer’s opinion of transacting in Branches.
Is the waiting time at the Teller Counter was minimal?
Table: 8
Parameter
In numbers
In percentage
Very Good
40
80
Good
5
10
Satisfactory
1
2
Could be better
4
8
Interpretation
80% of respondent says that waiting time is minimum at teller counter and it is
very good, 10% of respondent replied that it is good, 8% it’s satisfactory and
2% said it could be better.
Inference: As 80% of respondent says that waiting time at teller counter was
minimal, not too many were satisfied with transaction.
55

56. Is the transactions done by us have been smooth & error free?
Table: 9
Parameter
In numbers
In percentage
Very Good
45
90
Good
5
10
Satisfactory
0
0
Could be better
0
0
Interpretation
90% of respective says that transactions are smooth and error free, 10% of
respondent replied that transactions are good. None of the customers have any
problem with respect to timings.
Inference: As 90% responded very well, it seems high number are happy with
the banking transactions.
56

57. Is Allahabad Bank looks into the feedback provided by you and takes
necessary action if required?
Table: 10
Parameter
In numbers
In percentage
Very Good
41
82
Good
5
10
Satisfactory
2
4
Could be better
2
4
Interpretation
82% of respondent responded that Allahabad Bank looks into the feedback &
is very good, 10% said its good, 4% said it’s satisfactory and 4% said it could
be better.
Inference: As 82% of respondent says Allahabad bank looks into the feedback
provided by customer and takes necessary action if required, not too many
were satisfied with transaction.
57

58. D. Customer’s opinion for bank services.
Are you happy with the TAT (Turn Around Time) post request?
Table: 11
Parameter
In numbers
In percentage
Very Good
40
80
Good
7
14
Satisfactory
2
4
Could be better
1
2
Interpretation
80% of respondent says that TAT post request is very good, 14% said its good
4% said it’s satisfactory and 2% said it could be better.
Inference: As 80% of respondent says the TAT (Turn Around Time) post
request is very good, not too many were satisfied with TAT post request.
58

59. E. Products and Services.
Which feature of the Allahabad Bank Savings account you like most?
Table: 12
Parameter
In numbers
In percentage
Rs 5 Banking
Current plus Deposit
Scheme
Mahila Sanchay
19
38
22
7
45
13
Vikash SB A/C
2
4
Interpretation
38% of the respondent says for Rs 5 Banking, 45% of respondent are in favour
of Current plus Deposit Scheme, 13% are in favour of Mahila Sanchay while
only 4% like Vikash Saving Bank Account.
Inference: Maximum number of people like Current plus Deposit Scheme
feature of Allahabad Bank Savings account.
59

60. How do you rate the “ALLAHABAD BANK COMMUNITY EVENTS”
held at Allahabad Bank?
Table: 13
Parameter
In numbers
In percentage
Very Good
37
74
Good
8
16
Satisfactory
3
6
Could be better
2
4
Interpretation
74% of the respondent says that ALLAHABAD BANK COMMUNITY
EVENTS are very good, 16% of respondents replied that events are good, 6%
said it is satisfactory and 4% said it could be better.
Inference: As 74% of respondent says ALLAHABAD BANK COMMUNITY
EVENTS is very good, not too many replied for community events.
60

61. Is the information in the Bank Statement clear, easy to understand and
adequate?
Table: 14
Parameter
In numbers
In percentage
Very Good
39
78
Good
6
12
Satisfactory
5
10
Could be better
0
0
Interpretation
78% of the respondent says that information in bank statement is clear, easy &
adequate and is very good, 12% of respondent replied that it is good, 10% said
it is satisfactory.
Inference: As 78% of respondent says that information in the Bank Statement
is clear, easy to understand and adequate or not, not too many were satisfied
with the bank statement.
61

62. Will you recommend Allahabad Bank to your friends and relatives?
Table: 15
Parameter
In numbers
In percentage
Most Definitely
45
90
Yes
4
8
May Be
1
2
No
0
0
Interpretation
90% of respondent says that they will most definitely recommend
ALLAHABAD BANK to their friends & relatives, 8% of respondent says yes.
Only 2% said may be.
Inference: As 90% of respondent says that they will definitely recommend
ALLAHABAD BANK to their families & friends, maximum number of
respondent replied positive.
62

63. OPPORTUNITIES AND CHALLENGES
Retail banking has immense opportunities in a growing economy like India. As
the growth story gets unfolded in India, retail banking is going to emerge a
major driver. How does the world view us? The BRIC report is viewing India as
an economic superpower. A.T. Kearney, a global management-consulting firm,
recently identified India as the ―second most attractive retail destination of 30
emergent markets.
The rise of Indian middle class is an important contributory factor in this regard.
The percentage of middle to high-income Indian households is expected to
continue rising. The younger population not only wields increasing purchasing
power, but as far as acquiring personal debt is concerned, they are perhaps more
comfortable than previous generations. Improving consumer purchasing power,
coupled with more liberal attitudes towards personal debt, is contributing to
India‘s retail banking segment.
The combination of above factors promises substantial growth in retail sector,
which at present is in the nascent stage. Due to bundling of services and
delivery channels, the areas of potential conflicts of interest tend to increase in
universal banks and financial conglomerates. Some of the key policy issues
relevant to the retail-banking sector are: financial inclusion, responsible lending,
and access to finance, long-term savings, financial capability, consumer
protection, regulation and financial crime prevention.
63

64. Challenges for the Industry and its Stakeholders:
First, retention of consumers is going to be a major challenge. According
to a research by Riechheld and Sasser in the Harvard Business review, 5
percent increase in customer retention can increase profitability by 35
percent in banking business, 50 percent in insurance and brokerage, and
125 percent in the consumer credit card market. Thus, banks need to
emphasis on retaining consumer and increasing the market share.
Second, rising indebtedness could turn out to be a cause for concern in the
future. India’s position, of course, is not comparable to that of developed
world where household debt as a proportion of disposable income is
much higher. Such a scenario creates high uncertainty. Expressing
concerns about the high growth witnessed in consumer credit segments
the reserve bank has, as a temporary measure, put in place risk
containment measures and increased the weight from 100 percent to 125
percent in the case of consumer credit including personal loans and credit
cards.
Third, information technology poses both opportunities and challenges.
Even with ATM machines and Internet Banking, many of the customers
still prefer the personal touch of their neighbourhood branch bank.
Technology has made it possible to deliver services throughout branch
network, providing instant updates to checking accounts and rapid
movement of money for stock transfers. However, this dependency on the
network has bought IT department‘s additional responsibilities and
challenges in managing, maintaining and optimizing the performance of
retail banking networks.
Fourth, KYC Issues and money laundering risks in retail banking is yet
another important issue. Retail lending is regarded as a low risk area for
money laundering because of the perception of the sums involved.
However, competition for clients may also lead to KYC procedures being
waived in the bid for new business. Banks must also consider seriously
the type of identification documents the will accept and other processes to
be completed. The Reserve Bank has issued details guidelines on
application of KYC norms in November 2004.
64

65. Trends in Retail Banking
Growing a retail banking business is becoming increasingly challenging. The
yield curve is flattening, reducing bank’s net interest margin. Competition is
intensifying, as new, non-traditional players enter the retail banking space. And
consumer preferences for financial products, payment methods and distribution
channels continue to evolve, providing revenue opportunities, but also
introducing new operational challenges.
The changing dynamics of the retail banking business have significant
implications for financial institutions. In order to successfully compete in this
environment, banks must provide a distinctive customer experience and offer
innovative product solutions in order to differentiate their value proposition in
the marketplace.
Key trends in retail Banking are:
1. Bifurcation of the retail banking business:
National- Consolidate- Credit Cards
Home Equity Loans Mortgages
Local- Fragmented- Deposits
Instalment Loans & Small Business Loans
2. Lack of differentiation in retail financial services:
Many financial institutions are struggling to differentiate their value
propositions in the retail banking market.
Free checking is now offered by all or most financial institutions.
Most institutions no longer charge for online banking or online bill
payment.
Extended branch hours are increasingly common in many markets, as
banks seek to increase customer convenience.
3. Proliferation and growth of electronic payments.
4. Increasing demand for ATM access.
65

66. Strategies for Ensuring high Customer Satisfaction
Set service expectations and standards of behaviour - this means that
managers must set clear service expectations and standards of
behaviour, beginning with defining "excellent service."
Identify and eliminate barriers and obstacles. Policies that do not
make sense; procedures that get in the way; and rules, norms that
make satisfying customers difficult all need to be eliminated to
successfully improve service.
Learn and develop skills. Clearly, personnel at all levels should learn
new skills related to service excellence and serve the customer.
Listen to your customers. Measurement of customer satisfaction can
be a powerful way to improve service if the feedback is not focused
on punishment.
Managers need to help staff hear, first hand, how they are doing. For
this feedback to be effective, however, it must be tied to specific
targets and goals and needs to be frontline driven.
Reinforce and support continuous improvement. The real challenge is
keeping the energy, learning, and improving alive.
66

67. SUMMARY OF FINDINGS
With reference to table no.1, 90% of customers are happy with the bank
timings & they said that it is very good.
With reference to table no. 2, 80% of respondents like the branch
ambience & layout & find it friendly with reference to table no.3, 80% of
respondents said branch was clean and well maintained.
With reference to table no.4, 76% respondents view that branch personnel
had listened to them patiently and have been able to respond to their
queries and clarifications.
74% of respondent responded that Branch personnel had been very
helpful and courteous with reference to table no.5.
With reference to table no. 6, 72% of respondent says that branch
personnel do “Need Analyses” & “Risk Assessment” of customer savings
before recommending any investment option to them.
With reference to table no.7, 86% of respondent that branch personnel are
aware of Product and Services and responded to your queries.
With reference to table no 8, 80% of respondents says that waiting time at
the Teller Counter is minimum and is very good.
With reference to table no.9, 90% of respondent says that transactions are
smooth and error free & is very good.
With reference to table no. 10, 82% of respondent responded that
Allahabad Bank looks into the feedback & is very good.
67

68. With reference to table no.11, 80% of respondent said that they are happy
with the TAT post request is very good.
With reference to table no.12, 45% of respondents are in favour of
Current plus Deposit Scheme feature of the Allahabad Bank Savings
account.
With reference to table no.13, 74% of the respondent said that
ALLAHABAD BANK COMMUNITY EVENTS are very good.
With reference to table no. 14, 78% of the respondent said that
information in bank statement is clear, easy & adequate and is very good.
With reference to table no 15, 90% of respondent said that they will most
definitely recommend ALLAHABAD BANK to their friends & relatives.
Overall the response of the bank customer is good.
68

69. SUGGESTIONS
Suggestions are always considered to be the most important part of any project
report because for every pros; there is cons associated with and to reduce the
effect of latter, following suggestions must be taken into consideration in regard
to retail banking.
The Branch personnel should listen to customer patiently and should
be able to respond to their queries and clarifications because some
customer are new to some of the bank services and until and unless
they will come to know about those services they will be not be
satisfied.
With reference to table no. 5 as not many respondents said that
Branch Personnel are helpful and courteous, so I will suggest that
Bank personnel should be helpful & courteous towards maximum
number of customers.
With reference to table no. 6, larger number of branch personnel
should do ‘Need Analysis’ & ‘Risk Assessment’ before
recommending any investment option to customer.
With reference to table no.7, more branch personnel should be aware
of Product and Services and responded to customer’s queries.
With reference to table 10, Allahabad bank should look into the
feedback provided by customer and takes necessary action wherever
required.
69

70. With reference to table no. 12, bank should focus on Mahila Sanchay
Saving Bank A/C as small 10% of customer likes this.
Some time the customer has to wait at the Teller Counter, the service
should be improved by appointing more staff, with reference to table
no.11.
Information in the Bank Statement should be more clear, easy to
understand and adequate.
Along with customer satisfaction employee’s participation must be
kept active by appraising their salary as well as their work.
Frequently customers must be kept delighted by providing them
regards and by maintaining customer relationship so that their interest
can be kept maintained.
The Allahabad bank should focus on business and service portfolio for
a reputation of being niche players in the industry.
The bank should concentrate on few reliable high net worth
companies and individuals rather than cater to the mass market.
As 10% customer response is not good for the clarification of the
queries response towards them so bank personnel should improve this
issue because customer is a source through which business can be
increase and satisfy customers is a source to create more customers,
with reference to table no.4.
70

71. As it is only 10% respondent said that sometime there was a error in
the transaction happened so to avoid these kinds of errors should be
avoided because it is unnecessarily results in wastage of time for both
staff members and service rendered, reference to table no. 9.
There should be increase in the number of events organize by bank
because it is a opportunity for the bank to introduce new products and
services and at the same time it is a open opportunity for the customer
to come forward and suggest its views which might prove to add the
values for the bank because 10% customer still not have a good
response, with reference to table no.13.
Communication with the customer should be improved and increased
so that bank can easily response towards them and in result the
customer would be satisfy and no question that they will recommend
the Allahabad Bank to their friends and relatives because only 2% of
customer are not responding in a positive manner.
71

72. CONCLUSIONS – FUTURE GROWTH
The project aims to study the retail banking operations of ALLAHABAD
BANK. The study was very fruitful, it yielded the desired results, helped me
understand the retail banking. The study also helps in what are the customer
opinions towards operations of bank & its various product and services.
Any serious discussion of the future of the retail banking industry eventually
raises a basic question: will future customers still need retail banks? The
answer, it turns out, depends on banks themselves. With technology and non
blank businesses providing new options for safeguarding and managing their
finances, customers will continue to depend on banks only as long as banks can
provide service and value that cannot be found anywhere else.
The need to become highly customer focused has forced the slow-moving
public sector banks to adopt a fast track approach. The unleashing of products
and services through the net has galvanized players at all levels of the banking
and financial institutions market grid to look a new at their existing portfolio
offering. Conservative banking practices allowed.
Indian banks to be insulated partially from the Asian currency crisis. Indian
banks are now quoting at higher valuation when compared to banks in other
Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major
problems linked to huge Non Performing Assets (NPAs) and payment defaults.
Co-operative banks are nimble footed in approach and armed with efficient
branch networks focus primarily on the high revenue niche retail segments.
The Indian banking has finally worked up to the competitive
new Indian market and is addressing the relevant issues
multifarious challenges of globalization. Banks that employ
perceived to be futuristic and proactive players capable
multifarious requirements of the large customer’s base.
dynamics of
to take on
IT solutions
of meeting
the
the
are
the
ALLAHABAD BANK has a great opportunity to increase their market potential
in the present market situation.
72

73. LEARNING EXPERIENCE
The dissertation is to define the retail banking and regarding the general
services of bank.
The study was very fruitful, it yield the desire result, helped me to understand
the banking services better. The study also yields what are the factors that
banking is looking forward for the customer.
The Indian banking has come from a long way from being a sleepy business
institution to a highly proactive and dynamic entity. This transformation has
been largely brought about by the large dose of liberalization and economic
reforms that allowed banks to explore new business opportunities rather than
generating revenues from conventional streams (i.e. borrowing and lending).
The banking in India is highly fragmented with 30 banking units contributing to
almost 50% of deposits and 60% of advances.
Under the ambit of the nationalized banks come the specialized banking
institutions. The bank gives great importance towards customer satisfaction.
The senior staffs with their busy schedule try to advice the customer how to
invest in better way. The employees in the bank are well behaved and give a
great deal of satisfaction to see them how they approach their customers.
The bank plays an important role not only to fulfil their duties towards customer
but also to understand them better regarding what they want and how to
maximize the return on the investment.
The bank has set up separate department to impart training program for the
employees. The biggest achievement is the implementation of core banking
solution.
73

74. 74

75. Audited Financial Results for the year ended 31st March 2013
ALLAHABAD BANK
AUDITED FINANCIAL RESULTS
for Year ended 31st March, 2013.
(Rs. In lakh)
Quarter Ended
PARTICULARS
Year Ended
Year
Ended (Consoli
dated)
31.12.2
31.03.2 012
013
(Revie
wed)
31.03.2
31.03.2
31.03.2012 (A 31.03.2 012
31.03.2 012
udited)
013
(Audit 013
(Audit
ed)
ed)
425236 444466
416824
174356 155232 174612 155276
9
8
0
7
Interest/disco
(a
unt on
312619 323371
)
advances/bills
307631
127450 116641 127450 116641
3
3
4
3
(b Income on
) investments
109792 116104
103974
447332 371638 449834 372009
Interest on
balances with
Reserve
(c
Bank of India
)
and other
interbank
funds
1808
2931
4843
15944
12289
15993
12289
(d
Others
)
1017
2060
376
5790
1988
5789
2056
2.
Other Income
52454
34068
35514
147691 129868 158773 131912
3
TOTAL
INCOME
(1+2)
477690 478534
452338
189126 168219 190489 168467
0
6
3
9
4
Interest
Expended
319634 311444
287987
125692 103606 125685 103599
8
3
3
7
5
Operating
Expenses (i)
+ (ii)
81328
74244
295810 269139 306770 272290
1.
Interest
Earned (a) +
(b) + (c) +(d)
81086
75

76. (i)
Employee
Cost
Other
operating
expenses
(All items
exceeding
10% of the
(ii total
) expenditure
excluding
interest
expenditure
may be
shown
separately)
54498
56349
49504
198594 183449 200069 183611
26830
24737
24740
97216
85690
106701 88679
6
Total
Expenditure
(4+5)
excluding
provisions
and
contingencies
400962 392530
362231
155273 130520 156362 130828
8
2
3
7
7
Operating
Profit before
Provisions
and
contingencies
(3-6)
76728
86004
90107
338522 376994 341270 376392
8
Provisions (
other than
tax) and
contingencies
62249
43243
45440
183254 160697 183253 160813
9
Exceptional
Items
0
0
0
0
9
--Of which
Provisions for
nonperforming
assets
14479
42761
44667
155268 216297 158017 215579
Profit (+)/
Loss (-) from
10 Ordinary
Activities
before tax (7-
0
0
0
76

77. 8-9)
11 Tax Expenses 1864
11678
4645
36747
Net Profit(+) /
Loss (-) from
Ordinary
12
12615
Activities
after tax(1011)
31083
40022
118521 186678 121186 185960
Extraordinary
Items (net of
13
tax
expenses)
0
0
0
Net Profit (+)
/ Loss (-) for
14
12615
the
period (12-13)
31083
40022
118521 186678 121186 185960
Paid-up
equity share
capital
15
(Face Value
of share is
Rs10.00)
50003
50003
50003
50003
Reserves
excluding
16
revaluation
reserves
998326 914659
914659
999650 914658
102222
934240
1
55.24
55.24
55.24
55.24
55.24
55.24
55.24
Capital
Adequacy
(ii
Ratio (%)
11.03
)
(As per BaselII)
11.96
12.83
11.03
12.83
11.85
13.99
Earnings per
share (Rs.) a.
(ii
Basic and
i)
diluted EPS
before
6.22
8.40
23.70
39.18
24.24
39.03
17
0
29619
0
50003
36831
0
50003
29619
0
50003
Analytical
Ratios
Percentage of
shares held
(i) by
Government
of India
2.52
77

78. Extraordinary
Items (net of
tax
expense) for
the period, for
the
year to date
and for the
previous
year (not
annualised)
b. Basic and
diluted EPS
after
Extraordinary
Items for the
period, for the
2.52
year to date
and
for the
previous year
(not
annualised)
6.22
8.40
23.70
39.18
24.24
39.03
NPA Ratios
a) (i) Gross
NPA
513699 353160
205898
513699 205898 513699 205898
(ii) Net
NPA
412676 247750
109170
412676 109170 412676 109170
3.92
2.91
1.83
3.92
1.83
3.92
1.83
(ii) % Net
NPA
3.19
2.06
0.98
3.19
0.98
3.19
0.98
(c) Return on
Assets
0.26
0.67
0.88
0.64
1.02
0.64
1.02
(i
(b) (i) % of
v)
Gross NPA
Public Shareholding
223810 223810
771
771
223810771
223810 223810 223810 223810
771
771
771
771
--Percentage
of share
holding
18
-- Number of
shares
44.76
44.76
44.76
276215418
276215 276215 276215 276215
418
418
418
418
44.76
Promoters and
276215 276215
19 promoter
418
418
group
44.76
44.76
44.76
78

79. Shareholding
a)
Pledged/Encu
mbered
- Number of
Shares
NIL
NIL
NIL
NIL
NIL
NIL
-Percentage
of share (as a
% of the total
shareholding
of
promoter and
promoter
group)
NIL
NIL
NIL
NIL
NIL
NIL
NIL
-Percentage
of share (as a
%
of the total
share capital
of the
company)
b)
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Nonencumbered
- No of
Shares
276215 276215
418
418
276215418
276215 276215 276215 276215
418
418
418
418
-Percentage
of share (as a
% of the total
shareholding
of
promoter and
promoter
group)
100
100
100
100
100
100
100
-Percentage
of share (as a
%
of the total
share capital
of the
company)
55.24
55.24
55.24
55.24
55.24
55.24
55.24
79

80. Statements of Assets and Liabilities are as under:
Rs. in lacs
Particulars
As on
31.03.2013
(Audited)
As on
31.03.2012
(Audited)
Capital and Liabilities:
50003
50003
1085249
1000659
17874160
15959308
1009759
909448
418148
374039
20437319
18293457
Cash and Balances with Reserve Bank of India
780822
871245
Balances with Bank and Money at Call and Short
Notice
526251
531276
5830586
5428324
12948965
11114510
Fixed Assets
125152
119773
Other Assets
225543
228329
20437319
18293457
Capital
Reserve and Surplus
Deposits
Borrowings
Other Liabilities
Total
Assets:
Investments
Advances
Total
80

81. QUESTIONNAIRE
Allahabad Bank – Help us to serve you even better
Dear Valued Customer,
Your candid feedback on our service standards is very important for us to help
you even better.
We would like to know a little more about you:Your Name: ____________________________________________________
Your Customer Id/A/c No. (Optional): _______________________________
Your Branch: ___________________________________________________
Your E-mail id: _________________________________________________
Your Contact details: _____________________________________________
How frequently do you visit the Branch (in a month)? ___________________
______________________________________________________________
81

82. We would like to know about your experience of banking with us. Please
tick as appropriate.
A. How was the Branch experience?
1) Is the branch timings (10:00 am to 3:30 pm from Monday to
Friday and 10:00 am to 12:30 pm on Saturday) are convenient?
a) Very Good
b) Good
c) Satisfactory
d) Could be
better
2) Is the branch atmosphere & layout is very friendly?
a) Very Good
b) Good
c) Satisfactory
3) Is the Branch was clean and well maintained?
a) Very Good
b) Good
c) Satisfactory
d) Could be
Better
d) Could be
Better
B. How did you find our Branch personnel?
4) Is the Branch personnel have listened to you patiently and have
been able to respond to your queries and clarifications?
a) Very Good
b) Good
c) Satisfactory
d) Could be
better
5) Is the Branch personnel have been very helpful and courteous?
a) Very Good
b) Good
c) Satisfactory d) Could be better
6) Is the branch personnel have done a ‘Need Analyses’ & ‘Risk
Assessment’ before recommending any investment option?
a) Very Good
b) Good
c) Satisfactory d) Could be better
7) Is the branch personnel were aware of Product and Services and
responded to your queries?
a) Very Good
b) Good
c) Satisfactory
d) Could be
better
C. How was your experience of transacting in our Branches?
8) Is the waiting time at the Teller Counter was minimal?
a) Very Good
b) Good
c) Satisfactory d) Could be better
be
82

83. 9) Is the transactions done by us have been smooth & error free?
a) Very Good
10)
b) Good
c) Satisfactory
d) Could be
better
Is Allahabad bank looks into the feedback provided by you and takes
necessary action if required?
a) Very Good
11)
b) Good
c) Satisfactory
d) Could be
better
Are you Happy with the TAT (Turn Around Time) post request?
a) Very Good b) Good c) Satisfactory d) Could be better
12)
Which feature of the Allahabad Bank Savings account you like most?
a) Mahila Sanchay b)Vikash SB A/C c) Current plus Deposit Scheme
d) Rs 5 Banking
D. How do you like what we send to you?
13)
How do you rate the COMMUNITY EVENTS held at Allahabad
Bank?
a) Very Good b) Good c) Satisfactory d) Could be better
14)
Is the information in the Bank Statement clear, easy to
understand and adequate?
a) Very Good
b) Good
c) Satisfactory
d) Could be
better
15) Will you recommend Allahabad Bank to your friends and relatives?
a) Most Definitely
b) Yes
c) May be
d) No
Thank You
83

84. BIBLIOGRAPHY
BOOKS:
Retail Banking (By Indian Institute of Banking and Finance), Macmillan
Retail Management (By Bajaj Tulsi Shrivastva), OXFORD, University
Press
INTERNET:
www.allahabadbank.in
www.rbi.org.in
www.wikipedia.org
www.moneycontrol.com
www.wikipedia.org/Mckinsey_7S_Framework
www.mindtools.com/pages/article/newSTR_91.htm
84