retail banking regarding central bank of india.

1. Project on
Banks Emerging as Financial Supermarket: A
Study of Retail Banking Practices of
Central Banks in India
Presented by
Natasha Chhabra
MBA 3rd sem

2. Flow of presentation
 Company profile
 Research Objectives
 Scope of the study
 Research Methodology
 Data Interpretation
 Key Findings
 Suggestions
 Implications of the study
 Recommendation for future research

4. COMPANY PROFILE
Central Bank of India (Marathi: सेटरल बँक ऑफ इंिडिया), a government-owned bank, is
one of the oldest and largest commercial banks in India. It is based in Mumbai. The
bank has 4600 branches and 4 extension counters across 27 Indian states and
three Union Territories. At present, Central Bank of India has overseas office at
Nairobi, Hong Kong and a joint venture with Bank of India, Bank of Baroda, and the
Zambian government. The Zambian government holds 40 per cent stake and each
of the banks has 20 per cent. Recently it has also opened a representative office at
Nairobi, Kenya.
Central bank of India is one of 18 Public Sector banks in India to
get recapitalisation finance from the government over the next 24 months.
Central Bank of India has approached the Reserve Bank of India (RBI) for
permission to open representative offices in five more locations - Singapore, Dubai,
Doha and London [

5. HISTORY OF THE COMPANY
It was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir
Pherozeshah Mehta as Chairman, and claims to have been the first commercial
Indian bank completely owned and managed by Indians.
By 1918 it had established a branch in Hyderabad. A branch in
nearby Secunderabad followed in 1925.
In 1923, it acquired the Tata Industrial Bank in the wake of the failure of
the Alliance Bank of Simla. The Tata bank, established in 1917, had opened a
branch in Madras in 1920 that became the Central Bank of India, Madras.
Central Bank of India was instrumental in the creation of the first Indian exchange
bank, the Central Exchange Bank of India, which opened in London in 1936.
However, Barclays Bank acquired Central Exchange Bank of India in 1938.

6. Banks Financial Supermarket
Banks journey since 1 7 8 6 brought a revolutionary change in
banking in India. Banks have come a long way from depository
institute to a complete financial supermarket.
What is Retail Banking - It is the new mantra in the banking
sector. It refers to the dealings of a bank with its individual
customers
Retail Banking is the cluster of products and services that banks
provide to consumers and small businesses through branches, the
Internet, and other channels. As this definition implies, banks
organize their retail activities along three complementary
dimensions: customers served, products and services offered, and
the delivery channels linking customers to products and services.
Almeida, 2003

7. Objectives of Retail Banking:
•Provide target customers a full range of financial products and banking services.
•Give the customers a one stop window for all their banking requirements.
SCOPE FOR RETAIL BANKING IN INDIA:
•All round increase in economic activity.
•Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and
this is an opportunity to market Retail Banking.
•India has 200 million households and 400 million middleclass population more than 90% of the savings come from
the house hold sector. Falling interest rates have resulted in a shift. “Now People Want To Save Less And Spend
More.”
•Nuclear family concept is gaining much importance which may lead to large savings, large number of banking
services to be provided are day-by-day increasing.
•Tax benefits are available for example in case of housing loans the borrower can avail tax benefits for the loan
repayment and the interest charged for the loan.

8. Retail Finance Umbrella
Channel
Products &
Services
Customer
Agency Demand
BANK
Reliability
Branch
Plastic
Money
Accounts
Demat/
Share
A/c
A/c
Investment
Banking
Insurance Home
lone
Home
lone
Mortgage
Financing
ATM
Bankassurance
Call Center
Phone/ Internet
Banking
Mutual
Funds

9. Research Objectives
 To contemplate the emerging trends in Retail Banking in India
 To assess the level of Bank customers’ Satisfaction in terms of
Techno-savvy Retail services offered by the banks
 To examine the Opportunities and challenges for Banks
becoming the Financial Supermarket
 To study the Retail Marketing Strategies in selected 12 Retail
Banks
 To suggest the futuristic vision for Retail banking in India

10. Scope of the study
• Study includes Public, Private and Foreign banks operating in
India
• Bank branches within the city limits and situated in major towns
• Emphasis on studying the retail practices of these banks
• Profile of technologically aware customers and knowing their
preferences for selecting banks and their services
• Degree of acceptance of technology for better services
• Customer satisfaction generated from advanced products and
techno savvy banking services

11. Research Methodology
Research design
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure. It is the conceptual structure within which
research is conducted. It constitutes the blueprint for the collection, measurement and analysis of data. My
research design is descriptive in nature as it involves studying the perceptions and expectations of customers in
order to measure the service quality provided by the service provider. The study thus finds out the major areas of
improvement so that company services to the customers can be improved.
.
Method of Data Collection
The primary data was collected with the help of a structured, non disguised questionnaire. Secondary data was
collected from journals, magazines, newspapers, books & internet with a view to supplement the primary data.
The study of secondary sources made the with a view to supplement the primary data. The study of secondary sources
made the structuring of questionnaire easy.
Sample Sizes
The sample size undertaken in this research study is 80.

12. Types of Data
Primary Data:
The sources of primary data were structure questionnaires used in the research project.
Secondary data:
The sources of secondary data were internet, books, banks, articles newspapers, journals,
magazines etc.

13. Data Collection Approaches
Qualitative Approach
• In depth study & review of literature
• Review of work on Retail Banking practices
• Understanding various factors contributing in
customer satisfaction and bank Step - 1 service preferences
Step - 2
• Personal interview with Bank managers and
executives
Result
• Draft Questionnaire developed
• Multi Dimensional Scale developed
• Direction for quantitative research

14. Data Collection Approaches
Quantitative Approach
• Distribution of draft instrument to sample of
population
• Survey refined & tested for reliability and validity
of constructs
Cronbach Coefficient Alpha > 0.7 - Reliable
Step - 1
Step - 2 • Instrument pre – testing
• Final Instrument Development

15. Q1. What products and services does your bank offer to you?
S.
No.
DATA ANALYSIS AND INTERPRETATION
Product and
services
Percentage (%)
1 Saving A/C 100
2 Current A/C 100
3 Demat A/C 50
4 Forex sevice 40
5 Net banking 90
6 Home loan 100
7 Electronic
100
transfer
8 Mutual fund 60
9 ATM 100
10
Personal loan 60
Interpretation:
The sample size out of 80 respondents 100% peoples are said that their banks provides all financial services.

16. Q3. Does your bank inform you timely about the new products and services?
S.No. Details Percentage
(%)
1 Yes 85
2 No 15
Interpretation:
The sample size out of 80 respondents, 85% says that Yes bank inform them timely about the new products and services and
15% says No.

17. Q6. What is the frequency of transaction you are making with your bank?
S.No. Details Percentage
(%)
1 Daily 20
2 Week 40
3 Month 30
4 Year 7
5 More than 1
year20
3
Interpretation:
The sample size out of 80 respondents 20% peoples are transacting money daily, 40% peoples are transacting weekly
30% are transacting monthly, 7% are transacting yearly and 3% are transacting more than one year.

18. Q7. According to you, does your bank provide core banking facility for the customers?
S.No. Details Percentage
(%)
1 Yes 60
2 no 40
Interpretation:
sample size out of 80 respondents 60% peoples said yes, 40% peoples said no.

19. Presentation & Analysis of Data
 Coding of data and preparation of Master Data Sheet
 Tabulation, classification and graphical representation.
 Mean and Standard deviation of the variables used in questionnaire
 To measure customer satisfaction in terms of techno savvy Retail
banking services Factor Analysis was performed
 Prior to factor analysis correlation matrix used to identify the
applicability of Factor analysis.
 Discriminant analysis to find the highest contributing factors in
showing differences in satisfaction among three banking sectors.

20. Key Findings
Retail Product Satisfaction
Product features and availability of a wider product range under one roof
Product innovation is significant factor for foreign bank customers
Retail Channel Satisfaction
Availability, accessibility and functionality
Ease of banking and convenience is favored by the customer
Loss of customer relationships and deposits to banks with extensive online services,
virtual banks, and non-banks
Retail Service Satisfaction
Reliability, responsiveness, convenience, frontline employee satisfaction, and
competence of the Bank are found most important contributors in Customer
satisfaction.
Ease of use, accuracy and security are prime factors define the satisfaction of online
customers

21. Key Findings
Findings on Demographic characteristics-
Women enlightenment towards banking services
Old is Gold- Customer with longer years of a/c holding
Education plays an important role
Business brings more business
High income created more needs and less satisfaction
New private sector banks are becoming new destination of bank customers
Saving is at higher side in customer’s mind
3 S behind choosing a Bank - Security, Strength and Speed

22. Key Findings
Techno readiness
Increased awareness and uses of ATM and Net banking
Among non users it is mainly due to fear and insecurity
Online banking preferred as the fastest means of any transaction
Excitement towards retail bank technology is high
Gaining high-tech knowledge
Human touch experience still beats the speed and convenience of online banking
to some extent.
Customer prefer remote channel for obtaining information and routine
transaction, but still believe in branch banking for purchase action.

23. Suggestions
 Create the culture and organizational model needed to promote greater
commitment, accountability and competency
 need to provide easily accessible mechanisms, appropriate financial advice and
customizing services
 Create a better, consistent customer experience across channels
 Improve the Branch - the ultimate destination for purchase action
 Improve the online experience – ease of use and accuracy
 Make better use of customer information- need to develop products and services
that their clients need before the clients even know they need them
 shift from customer volume based strategies to customer value based strategies.
 Inbound Customer Marketing- Focus on specific customers and situations , respond
properly and Integrate transversal customer information throughout channels

24. Implications of the study
 It presents an overall picture of present and emerging Retail Banking trends.
 This study helps banks to develop the strategies to improve bank service
quality and enhance customer satisfaction.
 It gives the blue print for area of improvements and also suggest customers
attitude towards Retail banking practices.
 It suggest product innovation and market expansion strategies for banks
 Helps in understanding of global market for Indian banks
 Gives an understanding to the banks about what factors contribute to overall
customer satisfaction
 The findings presented in this study can be used by both academician and
practitioners

25. Recommendations for future Research
 Replicating the present study with other financial services or in other cultural
environment
 More specific research could address each of the services provided in the
banking industry
 More direct items on the behavioral aspects of customer satisfaction can be
closely examination by future researchers
 Need to recognize varying levels of profitability between market segments, a
key criterion of which is the preferred mode of service delivery
 Impact of service managed customer learning in changing attitudes and thus
profitability

26. Thank you….!