Project 12

A MINOR PROJECT REPORT
ON
EMERGENCE OF PRIVATE SECTOR BANKS IN INDIA
SUBMITTED IN THE PARTITAL FULLFILLMENT FOR THE AWARD OF THE DEGREE
BACHELORE IN BUSNIESS ADMINISTRATION
UNDER THE GUIDANCE OF:
MS POOJA KALRA
ASSISTANT PROFESSOR, RDIAS
SUBMITTED BY:
NEHA KHANNA
ENROLLMENT NO: 01380301712
BBA SEMESTER III
BATCH 2012-2015
RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES
NAAC ACCREDITED ‘A’ Grade
Category ‘A++’ Institute
High grading 83% by joint assessment
An ISO Certified Institute
(Approved by AICTE, HRD Ministry, Govt. of India)
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
2A & 2B, Madhuban Chowk, Outer Ring Road, Phase –I, Delhi – 110085

ACKNOWLEDGEMENT
I pay my gratitude and sincere regards to “Ms. Pooja Kalra”, my project for
giving me the cream of his knowledge. I am thankful to her as she has been a
constant source of advice, motivation and inspiration. I am also thankful to her for
giving her suggestions and encouragement throughout the project work.
I am making this Minor Project not only for marks but to also increase my
knowledge
NEHA KHANNA
(STUDENT)

CERTIFICATE OF GUIDE
This is to certify that the project titled “EMERGENCEOF PRIVATE SECTOR
BANKS IN INDIA” is an academic work done by ‘NEHA KHANNA’ submitted
in the partial fulfillment for the award of the degree bachelor in business
administration from ‘RUKMINI DEVI INSTITUTE OF ADVANCED
STUDIES, DELHI’ under my guidance and direction.
To the best of my knowledge and belief the data and information presented by
him/her in the project has not been submitted earlier elsewhere.
Name of the Faculty – Ms. Pooja Kalra
Designation of the Faculty – Assistant Professor
RDIAS

STUDENTS DECLARATION
This is to certify that I have completed the project titled “COMPARATIVE
ANALYSIS OF FINANCIAL STATEMENT OF SAIL” under the guidance of
“Ms. Pooja Kalra” in the partial fulfillment for the award of the degree bachelor in
business administration from ‘RUKMINI DEVI INSTITUTE OF ADVANCED
STUDIES, DELHI’
This is an original work and I have not submitted it earlier elsewhere
SANDEEP GOEL
Enrollment No: – 02080301712
BBA Semester III

Contents
Acknowledgment i
Certificate of guide ii
Student declaration iii
Chapter Page No
Chapter 1 ………………………………………………………………. 04 - 16
Plan of the Study
1.1 Introduction to topic
1.2 Objective of the study
1.3 Importance of the study
1.4 Literature review And/or Theoretical Background.
Chapter II .……………………………………………………………... 17 – 33
Company Profile / Industry profile or details
Chapter III .…………………………………………………………….. 34 - 39
Research Methodology
3.1 Types of Research
3.2 Sources of data
3.3 Methods of Data collection
Chapter IV .…………………………………………………………….. 40 – 54
Data Analysis and interpretation

Chapter V .……………………….……………………………………… 55 – 60
Finding and conclusion
Chapter VI .……………………….……………………………………. 61 – 62
Recommendations and Suggestions
Bibliography ………………………………………………………..…… 63

EXECUTIVE SUMMARY
This project describes the emergence of private banks in india i.e the entry of new banks in india.
India is a on the verge of development so in order to arrive in the list of developed countries it is
required to allow the entry of such big financial institutions which are none other but PRIVATE
BANKS in india.
Private sector banks are of huge advantage because they offer a wide scope for development, a
new outlook and a better standard of living. This project basically covers the overall view of the
private banks, including its advantages & disadvantages, the facilities, its objectives etc.
In a country like, INDIA, where there is a huge problem of poverty and unemployment, the
private banks are a major way to pave sollutions. The emergence of new private sector banks
have really solved the problems of poverty and unemployment to a large extent, they even prove
as a basis of those people who are unable to get the result of their hardwork ie they do not get
better opportunities to prove themselves. Thus, private banks act like a platform for those people
who want to prove themselves.
This project is basically concerned with the imporatnce, facilities and benefits of private banks.
The way private banks provide financial assistence to the big firms to grow and ultimately the
infrastructure of the country. Private banks have really increased the standard of living of the
country by bringing out new innovations in the form of new schemes, new-new facilities.
The facilities of private banks that are discussed in this project is the ATM facility, which has
resulted in unloading the burden from people because now they do not have to carry such heavy
money in their hands and moreover ATM’s are available in every part of a city, where ever you
go there is no worry to carry your money.
Another most important benefit of private banks is that they provide the on-line banking facility
which has brought a great comfort to people because they do not have to go to banks every time
and satand in long cues. Some important points that are discussed in this chapter are discussed
below:-
The financial system of a country plays an important role in promoting economic growth not
only by channeling savings into investments but also by improving efficiency of resources
A financial system is a composition of various institutions, markets, regulations, laws practices,
money managers, analysts, transactions and claims & liabilities

The banking industry plays a major role in representing the financial system in India. It works as
an intermediary between individuals, the government, financial institutions and other
stakeholders who directly or indirectly get affected by the industry
During 2011-12, the Indian banking industry faced major concerns in regards to deteriorating
asset quality, with gross non-performing assets (NPAs) of banks registering a sharp increase in
different sectors such as aviation, infrastructure and power
However, in 2012-13 banks have started focusing on lending to more profitable segments such as
retail and small and medium (SMEs), improving risk management policies and effective
monitoring
In the near the future, the Indian banking industry is expected to see consolidation in the wake of
future economic growth, changes in banking regulations and increase in competition from
foreign banks
Technological innovation and especially mobile banking have paved the way for dramatic
growth in the industry in the coming years.
The growth story of banking during the last decade has been spectacular and beyond the
consistent double digit growth. The key trends were strong regulatory framework, use of
multiple channels and technology, strong customer oriented banking services and a growing
economy
Although the past couple of years have witnessed a slowdown in the face of high domestic
inflation, depreciation of the rupee and the after-math of the crisis in US and Europe, the sector
still performs better in India vs. in many other developing countries in terms of growth,
profitability, capital adequacy and asset quality etc.
2013 promises to be a good year for India. Although a series of challenges like the overall slow
down in the economy impacting credit growth, deteriorating asset quality and rising NPAs,
accompanying financial inclusion and Basel III implementation are all lingering issues, the
sector is well cushioned with factors like a positive demographic dividend, increasing investment
in infrastructure, innovation in technology and most importantly constructive regulatory policies.
India’s Top Banks 2008 captures the development of banking in India in FY07 and profit lies in
the scheduled commercial banks, consisting of 28 Public Sector Banks, 23 Private Sector Banks
and 29 Foreign Banks. The public sector banks consist of State Bank of India and its seven
associates, 19 nationalized banks and IDBI Bank Ltd. The Private Sector Banks consist of 15
Old Private Sector Banks and 8 New Private Sector Banks. Foreign Banks have a strong
presence in number.
FY07 has been another year of rapid growth for Indian banking. The 80 banks together reported
a y-o-y growth of 24.3% in assets, 24.6% in deposits, 30.6% in advances, 21.2% in operating

profit and 26.9% in net profit.
Major aspects of the performance of these banks in FY07 is summarized below;
The group of New Private Sector Banks dominated the league tables of growth as against the
average of other bank groups as also all banks, with average y-o-y growth in assets at 38.7%, for
deposits at 38.8%, Advances at 39.9%, Operating Profit at 46.7%.
The group of Old Private Sector Banks showed relatively lower growth in business. The annual
growth rate for this group of banks for FY07 stood at 7.1% in assets, 6% in deposits and 12% in
advances. However, this group fared better in the growth of net profits(30%). All bank groups
reported a capital adequacy ratio of more than 12%.
The ratio of standard assets was highest in the case of Foreign Banks and New Private Sector
Banks at 98.1% each, followed by 97.3% in Public Sector banks and 96.9% in Old Private Sector
Banks. The ratio of Net NPAs to Total Assets was 0.6% in public sector and Old Private Sector
Banks, 0.5% in New Private Sector Banks and 0.3% in Foreign Banks.
Public Sector Banks accounted for 74% of the total deposits, 73% of total advances and 64% of
the aggregate net profits. The share of New Private Sector Banks in these three areas was in the
range of 15-17%.
There has been sizeable increase in the banking infrastructure. Banks in India together have
56,640 branches/offices, 893,356 staff and 27,088 ATMs. Public sector banks accounted for a
large part of the infrastructure, with 87.7% of all offices, 82% of the staff and 60.3% of all
ATMs.
In the background of emerging economic landscape, Indian banking could look forward to a
phase of further expansion in business and profitability. In view of the rising growth
opportunities, banks are giving increasing focus to raising capital levels. D&B will track the
growth of this sector on a continuous basis and enhance the utility of this publication as a highly
authentic and reliable reference guide.
Thus the reserve bank of india should allow the entry of these private banks so that the
indian economy could soon be called a developed economy.

CHAPTER 1
PLAN OF THE STUDY
1.1 INTRODUCTION
All those banks where greater parts of stake or equity are held by the private shareholders
and not by government are called "private-sector banks". These are the major players in
the banking sector as well as in expansion of the business activities India. The present
private-sector banks equipped with all kinds of contemporary innovations, monetary tools
and techniques to handle the complexities are a result of the evolutionary process over
two centuries. They have a highly developed organizational structure and are
professionally managed. Thus they have grown faster and stronger since past few years.
Private-sector banks have been functioning in India since the very beginning of the
banking system. In India private sector banks are plenty and are known for offering
expeditious service to their customers.
Thanks to globalization that prompted many foreign banks to expand their business
throughout the world and India became the most preferred destination.
Today you can find lots of foreign banks that are engaged to serve their customers in the
best possible manner and made its stand strong by providing 24 hour service.
Private sector banks in India have great history and started their service way back.
In 1920, empirical bank of India formed by great cooperation by bank of madras, bank of
Bengal and bank of Bombay. After that reserve bank of India came into existence in 1935
and got authority to look after other banks.
In 1994, the reserve bank of India opened the door for the private banks and handed out
the policy to control the private banks. The policy also included the liberation for private
banks in terms of their free and independent operation. ”The first private bank in India as
trust bank and later it became popular as oriental bank of commerce”.
Today India is swamped with many private banks such as international bank, ING bank,
Kodak Mahindra bank, SBI commercial bank, Karnataka bank, Kashmir bank, ICICI
bank and more. Private Banks in India achieved a milestone for serving people and
showed its great commitment.
Private Banks in India have earned a great response for its skin tight service and also
known for bringing revolution for serving millions of customers.
It offers best option for saving and also offers various schemes with maximum return.
It offers its service 24 hours and made the job of fund transfer easier by offering new
banking service. Besides there are lots of ATM machines have been set up by such
private banks and made the task of withdrawing liquid money easier.

There are two categories of the private-sector banks: "old" and "new".
The old private-sector banks have been operating since a long time and may be referred to those
banks, which are in operation from before 1991 and all those banks that have commenced there
business after 1991 are called as new private-sector banks.
Housing Development Finance Corporation Limited was the first private bank in India to receive
license from RBI as a part of the RBI's liberalization policy of the banking sector, to set up a
bank in the private-sector banks in India.
List of the new private-sectorbanks in India
Name of the Bank Year of est.
1. f Punjab 1943
2. Catholic Syrian Bank 1920
3. City Union Bank 1904
4. Dhanlaxmi Bank 1927
5. Federal Bank 1931
6. ING Vysya Bank 1930
7. Jammu and Kashmir Bank 1938
8. Karnataka Bank 1924
9. Karur Vysya Bank 1916
10. Lakshmi Vilas Bank 1926
11. Nainital Bank 1912
12. Ratnakar Bank 1943
13. SBI Commercial and international Bank 1955
14. South Indian Bank 1929
15. Tamilnad Mercantile Bank Limited 1921
16. United Western Bank 1936
1. f Punjab 1943

1. f Punjab 1943
Name of the bank Year of
establishment
1. Axis Bank (earlier UTI Bank) 1994
2. Bank of Punjab (actually an old generation private bank since it was not
founded under post-1993 new bank licensing regime)
1989
3. Centurion Bank Ltd. (Merged Bank of Punjab in late 2005 to become
Centurion Bank of Punjab, acquired by HDFC Bank Ltd. in 2008)
1994
4. Development Credit Bank (Converted from Co-operative Bank, now DCB
Bank Ltd.)
1995

5. HDFC Bank 1994
6. [[ICICI Bank]] previously ICICI and then both merged; total merger
SCICI+ICICI+ICICI Bank Ltd]
1996
7. IndusInd Bank 1994
8. Kotak Mahindra Bank 2003
9. Yes Bank 2005
10. Times Bank (Merged with HDFC Bank Ltd.)
11. Global Trust Bank, India (Merged with Oriental Bank of Commerce)
12. IDBI Bank Ltd. (reverse merged with parent IDBI in 2004 to become
IDBI Ltd., now IDBI Bank Ltd. A public sector becomes private like ICICI)
Private banking in India was practiced since the beginning of banking system in India. The first
private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of
the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development
bank in the world as Private Banks in India and has promoted world class institutions in India.
The first Private Bank in India to receive an in principle approval from the Reserve Bank of
India was Housing Development Finance Corporation Limited, to set up a bank in the private
sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was
incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has
a pride of place for having the first branch inception in the year 1934. With successive years of
patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to
its account.

2.2 OBJECTIVE
India strives for economic development, and it has done so since it gained its independence from
Europe in 1947. Its commitment to growth became most pronounced when, in 1990, it chose to
shift from a government-controlled banking system to a privately controlled banking system for
the overall good of the economy. Now, our main objective of making this project is discussed
below in detail…...
Readers should come to know that Private sector
banks provide Tailor Services to Indian Consumers.

o
Private Banks have really been successful in providing tailor services to the
consumers in India. As of July 2010, India had more than one billion inhabitants.
This means India has the second largest population in the entire world. About 82
percent of India's one-billion-plus inhabitants--about 948,000,000 people--
practice Hinduism. Hinduism has an estimated 330,000 deities, and worshipers of
these deities make donations to them. Retail banks meet India's religious demands
by providing their religious consumers with convenient ways to make online
donations to their deity or deities of choice.
Make Readers clear that private sector banks
stimulate the Indian Economy.
o
While the Indian economy is steadily growing, poverty is still widespread. Since
banks thrive in an economically healthy environment, they have a vested interest
in promoting the health of the citizens in their market. One of the approaches that
Indian banks use to stimulate the Indian economy includes providing access to

financial services that could help citizens create jobs, access education and
develop skills.
India has about 600,000 villages, many of which remain financially underserved.
Providing financial services to these villages and educating their inhabitants about
the proper use of those services furthers the objective of stimulating the Indian
economy. Private banks have really promoted the growth of the Indian economy
by providing multiple services to their customers.
To make the viewers aware that private sector
banks Serve the Growing Population of Wealthy
Citizens.
o
Every year since 1997, India's economy consistently grew by about seven percent.
India's percentage of high-net-worth individuals is slated to grow at a rate that is
among the highest of any other nation in the world. For banks, growing wealth
means a growing need for car loans, mortgages, credit cards and wealth

management services. Indian retail banks aim to meet these needs by providing a
variety of innovative services. And by this they motivate a smooth circulation in
the economy, they can have investments from the wealthy citizens which can
further be used for providing loans for the development.
To accentuate that private sector banks are a One-
Stop Shop for Consumers.
o Retail banks in India recognize that if they want to remain competitive, they must
reduce the need for clients to jump from bank to bank to have various needs met.
They do this by expanding their number of locations and improving their
technology. The aim is to become a one-stop shop so that they can provide their
customer with the convenience that she is unable or unwilling to do without. They
want that they should provide all that a customer wants from the banks.

3.3 LITERATURE REVIEW and/or THEORITCAL
BACKGROUND
The growth in India's retail sector has grown as fast as it has in the last decade for
three reasons: Indian citizens have, overall, become richer due to the growing
economy and therefore have more disposable income. Following this growing income
has been a growing desire for non-essential goods. Since India doesn't have as
organized a retail sector, it is easier to find and buy goods from independent retailers.
The most popular sectors of the retail industry in India are the food and mobile phone
sectors, and as a result, competition is quite fierce and takes the form of pricing wars,
ultimately benefiting the customer.
SALE OF GOODS
This section of retail law is established under the Sale of Goods Act 1930--this decree
covers subjects such as the sale of goods, selling at the valuation price, description of
goods and the rights of a seller who hasn't received the entirety of an agreed payment.
AGREEMENT TO SELL
This part is concerned with the concept of contracts for the sale of goods (not, in this
case, physical contracts but rather verbal agreements between the buyer and the
seller). With these, the seller must transfer or agree to transfer ownership of a good to
a buyer for the pre-agreed price, with the agreement either being absolute or
conditional, i.e., subject to conditions set by the seller.
VALUATION OF PRICES
This goes into detail about the rules of agreeing prices, saying such valuations are set
by a third-party, i.e., the government and the central bank, and the agreement between
the buyer and the seller must take this into consideration. If either party prevents the
agreement of a formal valuation, the affected party has the right to take legal action
against the offending party.
DESCRIPTION OF GOODS
This part is designed for any goods that are marketed via description, such as a good
sold over the Internet or phone. Any good sold in this manner must meet the
description originally given, and if a sample is given along with the description, both
must ultimately represent the final product correctly.

RIGHTS OF SELLER
This part of retail law has its own subsections. One example is the seller's right to
prevent the delivery of a good in certain cases, such as when the buyer has filed for
bankruptcy. The seller is within their right to withhold the good indefinitely or until
the full payment has been made.
Using an appropriate theoretical framework and econometric methodology, the study has sought
to measure and model competition in private banking industry in India in an attempt to analyse
the process of market dynamics in the industry. The changing scenario of private banking
consequent to deregulation provided the motivation behind the study. It used the concept of
competition proposed by Stigler (1961) and measured it by Bodenhorn’s (1990) measure of
mobility. The study provides a critique of the mechanism of inducing competition, which is
implicit in the Narasimham Committee (1991). It then provides the theoretical background of an
alternative mechanism based on Structure-Conduct-Performance paradigm, which incorporates
basic conditions and strategic groups, apart from including entry, economies of scale, product
differentiation and price cost margin, One basic contention of the study is that competition goes
beyond “conduct” and encompasses all the four components of S-C-P paradigm: basic
conditions, structure, conduct and performance. Accordingly, a three equation simultaneous
equation model is used to ultimately estimate the equation of competition through Tobit
technique. The result demonstrates that variables related to basic conditions, structure, and
conduct and performance influence competition. The study has found evidence against the
simplistic relationship between concentration and competition, which remained implicit in the
literature. The study also developed a methodology to arrive at market form from an analysis of
three aspects of a market and concludes that private banking industry in India is characterized by
monopolistic competition.
The basic concept here is to study the emergence i.e. the growth of private sector banks in India
which is really very important because these days private banks are flourishing very fast they
have made success in almost all parts of the country. So the very basic plan of study of this
project is to see how this PRIVATE BANKING INDUSTRY has made its space in this Indian
environment and the way people have adapted themselves to the upliftment of this industry.

CHAPTER 2:
BANKING INDUSTRY PROFILE
Evolution of the Indian Banking Industry:
The Indian banking industry has its foundations in the 18th century, and has had a varied
evolutionary experience since then. The initial banks in India were primarily traders’ banks
engaged only in financing activities. Banking industry in the pre-independence era developed
with the Presidency Banks, which were transformed into the Imperial Bank of India and
subsequently into the State Bank of India. The initial days of the industry saw a majority private
ownership and a highly volatile work environment. Major strides towards public ownership and
accountability were made with nationalization in 1969 and 1980 which transformed the face of
banking in India. The industry in recent times has recognized the importance of private and

foreign players in a competitive scenario and has moved towards greater liberalisation.

In the evolution of this strategic industry spanning over two centuries, immense developments
have been made in terms of the regulations governing it, the ownership structure, products and
services offered and the technology deployed. The entire evolution can be classified into four
distinct phases.
 Phase I- Pre-Nationalization Phase (prior to 1955)
 Phase II- Era of Nationalization and Consolidation (1955-1990)
 Phase III- Introduction of Indian Financial & Banking Sector Reforms and Partial
Liberalization (1990-2004)
 Phase IV- Period of Increased Liberalization (2004 onwards)
Current Structure
Currently the Indian banking industry has a diverse structure. The present structure of the Indian
banking industry has been analyzed on the basis of its organized status, business as well as
product segmentation.
Organizational Structure
The entire organized banking system comprises of scheduled and non-scheduled banks. Largely,
this segment comprises of the scheduled banks, with the unscheduled ones forming a very small
component. Banking needs of the financially excluded population is catered to by other
unorganized entities distinct from banks, such as, moneylenders, pawnbrokers and indigenous
bankers.
Scheduled Banks
A scheduled bank is a bank that is listed under the second schedule of the RBI Act, 1934. In
order to be included under this schedule of the RBI Act, banks have to fulfill certain conditions
such as having a paid up capital and reserves of at least 0.5 million and satisfying the Reserve
Bank that its affairs are not being conducted in a manner prejudicial to the interests of its
depositors. Scheduled banks are further classified into commercial and cooperative banks. The
basic difference between scheduled commercial banks and scheduled cooperative banks is in
their holding pattern. Scheduled cooperative banks are cooperative credit institutions that are
registered under the Cooperative Societies Act. These banks work according to the cooperative
principles of mutual assistance.
Scheduled Commercial Banks (SCBs):
Scheduled commercial banks (SCBs) account for a major proportion of the business of the
scheduled banks. As at end-March, 2009, 80 SCBs were operational in India. SCBs in India are
categorized into the five groups based on their ownership and/or their nature of operations. State
Bank of India and its six associates (excluding State Bank of Saurashtra, which has been merged
with the SBI with effect from August 13, 2008) are recognized as a separate category of SCBs,
because of the distinct statutes (SBI Act, 1955 and SBI Subsidiary Banks Act, 1959) that govern
them. Nationalized banks (10) and SBI and associates (7), together form the public sector banks

group and control around 70% of the total credit and deposits businesses in India. IDBI ltd. has
been included in the nationalized banks group since December 2004. Private sector banks
include the old private sector banks and the new generation private sector banks- which were
incorporated according to the revised guidelines issued by the RBI regarding the entry of private
sector banks in 1993. As at end-March 2009, there were 15 old and 7 new generation private
sector banks operating in India.
Foreign banks are present in the country either through complete branch/subsidiary route
presence or through their representative offices. At end-June 2009, 32 foreign banks were
operating in India with 293 branches. Besides, 43 foreign banks were also operating in India
through representative offices.
Regional Rural Banks (RRBs) were set up in September 1975 in order to develop the rural
economy by providing banking services in such areas by combining the cooperative specialty of
local orientation and the sound resource base which is the characteristic of commercial banks.
RRBs have a unique structure, in the sense that their equity holding is jointly held by the central
government, the concerned state government and the sponsor bank (in the ratio 50:15:35), which

is responsible for assisting the RRB by providing financial, managerial and training aid and also
subscribing to its share capital.
Between 1975 and 1987, 196 RRBs were established. RRBs have grown in geographical
coverage, reaching out to increasing number of rural clientele. At the end of June 2008, they
covered 585 out of the 622 districts of the country. Despite growing in geographical coverage,
the number of RRBs operational in the country has been declining over the past five years due to
rapid consolidation among them. As a result of state wise amalgamation of RRBs sponsored by
the same sponsor bank, the number of RRBs fell to 86 by end March 2009.
Scheduled Cooperative Banks:
Scheduled cooperative banks in India can be broadly classified into urban credit cooperative
institutions and rural cooperative credit institutions. Rural cooperative banks undertake long term
as well as short term lending. Credit cooperatives in most states have a three tier structure
(primary, district and state level).
Non-Scheduled Banks:
Non-scheduled banks also function in the Indian banking space, in the form of Local Area Banks
(LAB). As at end-March 2009 there were only 4 LABs operating in India. Local area banks are
banks that are set up under the scheme announced by the government of India in 1996, for the
establishment of new private banks of a local nature; with jurisdiction over a maximum of three
contiguous districts. LABs aid in the mobilization of funds of rural and semi urban districts. Six
LABs were originally licensed, but the license of one of them was cancelled due to irregularities
in operations, and the other was amalgamated with Bank of Baroda in 2004 due to its weak
financial position.
Business Segmentation
The entire range of banking operations are segmented into four broad heads- retail banking
businesses, wholesale banking businesses, treasury operations and other banking activities.
Banks have dedicated business units and branches for retail banking, wholesale banking (divided
again into large corporate, mid corporate) etc.

Retail banking
It includes exposures to individuals or small businesses. Retail banking activities are identified
based on four criteria of orientation, granularity, product criterion and low value of individual
exposures. In essence, these qualifiers imply that retail exposures should be to individuals or
small businesses (whose annual turnover is limited to Rs. 0.50 billion) and could take any form
of credit like cash credit, overdrafts etc. Retail banking exposures to one entity is limited to the
extent of 0.2% of the total retail portfolio of the bank or the absolute limit of Rs. 50 million.
Retail banking products on the liability side includes all types of deposit accounts and mortgages
and loans (personal, housing, educational etc) on the assets side of banks. It also includes other
ancillary products and services like credit cards, demat accounts etc.
The retail portfolio of banks accounted for around 21.3% of the total loans and advances of
SCBs as at end-March 2009. The major component of the retail portfolio of banks is housing
loans, followed by auto loans. Retail banking segment is a well diversified business segment.
Most banks have a significant portion of their business contributed by retail banking activities.
The largest players in retail banking in India are ICICI Bank, SBI, PNB, BOI, HDFC and Canara
Bank.
Among the large banks, ICICI bank is a major player in the retail banking space which has had
definitive strategies in place to boost its retail portfolio. It has a strong focus on movement
towards cheaper channels of distribution, which is vital for the transaction intensive retail
business. SBI’s retail business is also fast growing and a strategic business unit for the bank.
Among the smaller banks, many have a visible presence especially in the auto loans business.
Among these banks the reliance on their respective retail portfolio is high, as many of these
banks have advance portfolios that are concentrated in certain usages, such as auto or consumer
durables. Foreign banks have had a somewhat restricted retail portfolio till recently. However,
they are fast expanding in this business segment. The retail banking industry is likely to see a
high competition scenario in the near future.

Wholesale banking
Wholesale banking includes high ticket exposures primarily to corporate. Internal processes of
most banks classify wholesale banking into mid corporate and large corporate according to the
size of exposure to the clients. A large portion of wholesale banking clients also account for off
balance sheet businesses. Hedging solutions form a significant portion of exposures coming from
corporate. Hence, wholesale banking clients are strategic for the banks with the view to gain
other business from them. Various forms of financing, like project finance, leasing finance,
finance for working capital, term finance etc form part of wholesale banking transactions.
Syndication services and merchant banking services are also provided to wholesale clients in
addition to the variety of products and services offered.
Wholesale banking is also a well diversified banking vertical. Most banks have a presence in
wholesale banking. But this vertical is largely dominated by large Indian banks. While a large
portion of the business of foreign banks comes from wholesale banking, their market share is still
smaller than that of the larger Indian banks. A number of large private players among Indian
banks are also very active in this segment. Among the players with the largest footprint in the
wholesale banking space are SBI, ICICI Bank, IDBI Bank, Canara Bank, Bank of India, Punjab
National Bank and Central Bank of India. Bank of Baroda has also been exhibiting quite robust
results from its wholesale banking operations.
Treasury Operations
Treasury operations include investments in debt market (sovereign and corporate), equity
market, mutual funds, derivatives, and trading and forex operations. These functions can be
proprietary activities, or can be undertaken on customer’s account. Treasury operations are
important for managing the funding of the bank. Apart from core banking activities, which
comprises primarily of lending, deposit taking functions and services; treasury income is a
significant component of the earnings of banks. Treasury deals with the entire investment
portfolio of banks (categories of HTM, AFS and HFT) and provides a range of products and
services that deal primarily with foreign exchange, derivatives and securities. Treasury involves
the front office (dealing room), mid office (risk management including independent reporting to
the asset liability committee) and back office (settlement of deals executed, statutory funds
management etc).
Other Banking Businesses
This is considered as a residual category which includes all those businesses of banks that do not
fall under any of the aforesaid categories. This category includes Para banking activities like hire
purchase activities, leasing business, merchant banking, factoring activities etc.
Products of the Banking Industry
The products of the banking industry broadly include deposit products, credit products and
customized banking services. Most banks offer the same kind of products with minor variations.
The basic differentiation is attained through quality of service and the delivery channels that are

adopted. Apart from the generic products like deposits (demand deposits – current, savings and
term deposits), loans and advances (short term and long term loans) and services, there have
been innovations in terms and products such as the flexible term deposit, convertible savings
deposit (wherein idle cash in savings account can be transferred to a fixed deposit), etc.
Innovations have been increasingly directed towards the delivery channels used, with the focus
shifting towards ATM transactions, phone and internet banking. Product differentiating services
have been attached to most products, such as debit/ATM cards, credit cards, nomination and
demat services.
Other banking products include fee-based services that provide non-interest income to the banks.
Corporate fee-based services offered by banks include treasury products; cash management
services; letter of credit and bank guarantee; bill discounting; factoring and forfeiting services;
foreign exchange services; merchant banking; leasing; credit rating; underwriting and custodial
services. Retail fee-based services include remittances and payment facilities, wealth
management, trading facilities and other value added services.
Private Banks in India
Initially all the banks in India were private banks, which were founded in the pre-independence
era to cater to the banking needs of the people. In 1921, three major banks i.e. Banks of Bengal,
Bank of Bombay, and Bank of Madras, merged to form Imperial Bank of India. In 1935, the
Reserve Bank of India (RBI) was established and it took over the central banking responsibilities
from the Imperial Bank of India, transferring commercial banking functions completely to IBI.
In 1955, after the declaration of first-five year plan, Imperial Bank of India was subsequently
transformed into State Bank of India (SBI).
Following this, occurred the nationalization of major banks in India on 19 July 1969. The
Government of India issued an ordinance and nationalized the 14 largest commercial banks of

India, including Punjab National Bank (PNB), Allahabad Bank, Canara Bank, Central Bank of
India, etc. Thus, public sector banks revived to take up leading role in the banking structure. In
1980, the GOI nationalized 6 more commercial banks, with control over 91% of banking
business of India.
In 1994, the Reserve Bank of India issued a policy of liberalization to license limited number of
private banks, which came to be known as New Generation tech-savvy banks. Global Trust Bank
was, thus, the first private bank after liberalization; it was later amalgamated with Oriental Bank
of Commerce (OBC). Then Housing Development Finance Corporation Limited (HDFC)
became the first (still existing) to receive an 'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector.
At present, Private Banks in India includes leading banks like ICICI Banks, ING Vysya Bank,
Jammu & Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, SBI Commercial and
International Bank, etc. Undoubtedly, being tech-savvy and full of expertise, private banks have
played a major role in the development of Indian banking industry. They have made banking
more efficient and customer friendly. In the process they have jolted public sector banks out of
complacency and forced them to become more competitive.
TOP RANKING PRIVATE BANKS IN INDIA
Company Name Last Price Change % Change Net Sales
(Rs. cr)
ICICI Bank 967.00 -13.20 -1.35 40,075.60
HDFC Bank 674.00 11.35 1.71 35,064.87
AxisBank 1,168.85 -23.90 -2.00 27,182.57
YesBank 432.75 5.85 1.37 8,294.00
Kotak Mahindra 694.50 -15.75 -2.22 8,042.49
IndusIndBank 457.80 4.40 0.97 6,983.23
JK Bank 1,229.95 -12.10 -0.97 6,136.80
Federal Bank 371.50 3.30 0.90 5,558.39
ING Vysya Bank 582.50 -14.45 -2.42 4,861.58
South Ind Bk 22.70 0.35 1.57 4,434.29
Karur Vysya 419.00 -3.00 -0.71 4,242.43

Karnataka Bank 105.15 0.15 0.14 3,764.29
City UnionBank 53.90 -0.10 -0.19 2,188.75
Lakshmi Vilas 71.95 1.20 1.70 1,760.55
Dhanlaxmi Bank 33.30 0.20 0.60 1,308.00
DCB 50.40 0.50
HDFC BANK PROFILE
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.

Our MD Mr. Aditya Puri and ED Mr. Paresh Sukthankar received the award for India's Best
Managed Boards 2012 from Mr. Sachin Pilot, Union Minister for Company Affairs. Mr. Anil
Jaggia, our CIO is on the extreme left.
HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian
Bank". We realised that only a single-minded focus on product quality and service excellence
would help us get there. Today, we are proud to say that we are well on our way towards that
goal.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.
2013
Dun & Bradstreet –
Bharathi Cement
Corporate Awards
2012
Corporate Awards 2012
NDTV Profit
Business
Leadership Awards
2012
Winner in the banking category
NASSCOM
CNBC–TV18 IT
Innovation Award
Best IT Driven Innovation in Banking (COMMERCIAL)
The National
Quality Excellence
Awards
Best Customer Service Result

FE Best Bank
Awards
HDFC Bank wins in 3 categories at FE Best Bank Awards
Skoch Financial
Inclusion Awards
2013
Organization of the Year
HDFC Bank HDFC Bank Ltd is a major Indian financial services company based in Mumbai.
The Bank has an enviable network of 1986 branches in 996 Indian cities and 5471 ATMs during
the year 2010-11. The company has recorded an increase of 33% in net profit for FY 2011 of
Rs. 3926 crore over the previous year. The Capital Adequacy Ratio (CAR) stood at 16.2% as
against the regulatory minimum of 9.0%. Of this, Tier I CAR was 12.2% as on March 31, 2011.
The total deposits have increased by 24.6% at Rs. 208586 crore and the total advances were
increased by 27% to Rs. 159983 crore over March 31, 2010. The Net interest income grew by
25.7% mainly on account of acceleration in loan growth. The proportion of core current and
savings deposits (CASA) to total deposits continued to be healthy at 51% as on March 31, 2011.

ICICI BANK PROFILE
ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN) is a multinational
financial services company headquartered in Mumbai, India. It is the second largest bank in India
by assets and third largest by market capitalization. It offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery channels
and through its specialized subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank has a network of 3,350 branches and
10,486 ATM's in India, and has a presence in 19 countries, including India.[2]

The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh,
Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in
Belgium and Germany.[3]
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab
National Bank and Canara Bank.[4]
On 14th March 2013 the online magazineCobrapostreleasedvideofootagefrom OperationRedSpider
showinghighrankingofficialsandsome employeesof ICICIBankagreeingtoconvertblackmoneyinto
white,anact in violationof MoneyLaunderingControl Act.The Governmentof IndiaandReserve Bank
of Indiaorderedaninquiryfollowingthe exposé.On15thMarch 2013, ICICIBank suspended18
employees,pendinginquiry.[5][6][7]
On11th April 2013 DeputyGovernorof RBI,H R Khanreportedlytold
that the central bank isinitiatingactionagainstICICIBankinconnexionwithallegationsof money
laundering.

AXIS Bank is one of the fastest growing banks in private sector. The bank operates in four
segments, namely treasury, retail banking, corporate/ wholesale banking and other banking
business. The bank has a very wide network of around 1390 branches and 6,270 ATMs.
The net profits have grown at a CAGR of 47.52% during last 5 years. The bank reported a net
profit of Rs. 3,388.49 crores for the year ended March 31, 2011 over the net profit of Rs.
2,514.53 crores in the previous year. The Net Interest Income increased by 31.14% to Rs.
6,562.99 crores in FY 11 from Rs. 5,004.49 crores in FY 10.
The bank maintain a healthy asset-quality with a ratio of Gross NPAs to gross customer assets
of 1.01% compared to 1.13% in previous year and a Net NPA ratio of 0.26% compared to
0.36% in FY 10. The deposit and advances has increased by 33.93% and 36.48% respectively.
The Capital Adequacy Ratio under Basel II stood at 12.65% in FY 11 against 15.80% in FY 10.
Yes Bank is a private bank in India. It was founded by Ashok Kapur and Rana Kapoor, with the
duo holding a collective financial stake of 27.16%.[4] Mr.Ashok Kapur was killed in a terrorist
attack in 2008 in Mumbai.

YES BANK has received significant national and international recognitions which include Dr.
Rana Kapoor, Founder, MD & CEO being recognized as the Entrepreneurial Banker of the
Decade (2001-2010) by Bombay Management Association; Business Standard Banker of the
Year - 2011; India's No. 1 New Private Sector Bank in the Financial Express-E&Y Best Banks
Survey 2010, India's Fastest Growing Bank of the Year at the Bloomberg UTV Financial
Leadership Awards 2011.,[5] India's No. 1 New Private Sector Bank in the Financial Express-
E&Y Best Banks Survey 2010,[6] India's Fastest Growing Bank of the Year at the Bloomberg
UTV Financial Leadership Awards 2011.[7] YES BANK received certification for its 'Complaints
Management System (ISO 10002:2004)' by the British Standard's Institution (BSI) as on August
25, 2010.[8] The Bank was also awarded the ISO 27001:2005 Certification for its 'Information
Security Management System' by BSI.[8]
In 2010, the bank announced the roll-out of a strategic blueprint, named Version 2.0 of the bank,
to further accelerate its business growth in the retail banking space, with the objective to achieve
by 2015, a balance sheet size of 1, 50,000 crore, deposits of 125,000 crore, advances of
100,000 crore, a pan India network of 900 branches and a human capital base of 12750 by
2015.[9]
Kotak Mahindra Bank (BSE: 500247, NSE: KOTAKBANK) is an Indian financial service
firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-
banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship
company was given the license to carry on banking business by the Reserve Bank of India (RBI).
Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a
bank. Today it has more than 363 branches, 20,000 employees and 10,000 crore in revenue.[2]
Mr. Uday Kotak is Executive Vice Chairman & Managing Director of Kotak Mahindra Bank
Ltd. In July 2011 Mr. C. Jayaram and Mr. Dipak Gupta, whole time directors of the Bank, were
appointe Joint Managing Directors of Kotak Mahindra Bank. Dr. Shankar Acharya is the
chairman of board of Directors in the company.
So this was the profile of some top private banking industries in India.

CHAPTER-3
RESEARCH
Research has been defined in a number of different ways.
A broad definition of research is given by Martyn Shuttle worth - "In the broadest sense of the
word, the definition of research includes any gathering of data, information and facts for the
advancement of knowledge."
Another definition of research is given by Creswell who states - "Research is a process of steps
used to collect and analyze information to increase our understanding of a topic or issue". It
consists of three steps: Pose a question, collect data to answer the question, and present an
answer to the question.
The Merriam-Webster Online Dictionary defines research in more detail as "a studious inquiry or
examination; especially : investigation or experimentation aimed at the discovery and
interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical
application of such new or revised theories or laws".
MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also define research as
a scientific and systematic search for pertinent information on a specific topic. In fact, research is
an art of scientific investigation. The Advanced Learner’s Dictionary of Current English lays
down the meaning of research as “a careful investigation or inquiry especially through search for
new facts in any branch of knowledge.”Redman and Mary define research as a “systematized
effort to gain new knowledge.” Some people consider research as a movement, a movement from
the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct
of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes
us probe and attain full and fuller understanding of the unknown. This inquisitiveness is the
mother of all knowledge and the method, which man employs for obtaining the knowledge of
whatever the unknown, can be termed as research.
TYPES OF RESEARCH
The basic types of research are as follows:
(i) Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries
of different kinds. The major purpose of descriptive research is description of the state of affairs
as it exists at present. In social science and business research we quite often use Research
Methodology.
(ii) Applied vs. Fundamental: Research can either be applied (or action) research or fundamental
(to basic or pure) research. Applied research aims at finding a solution for an immediate problem
facing a society or an industrial/business organization, whereas fundamental research is mainly
concerned with generalizations and with the formulation of a theory.
(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative
research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating
to or involving quality or kind. For instance, when we are interested in investigating the reasons

for human behavior we quite often talk of ‘Motivation Research’, an important type of
qualitative research.
(iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or
theory. It is generally used by philosophers and thinkers to develop new concepts or to
reinterpret existing ones. On the other hand, empirical research relies on experience or
observation alone, often without due regard for system and theory. It is data-based research,
coming up with conclusions which are capable of being verified by observation or experiment.
I HAVE USED A DESCRIPTIVE RESEARCH
TYPES OF DATA
Primary research
Primary research consists of a collection of original primary data. It is often undertaken after
the researcher has gained some insight into the issue by reviewing secondary research or by
analyzing previously collected primary data. It can be accomplished through various methods,
including questionnaires and telephone interviews in market research, or experiments and
direct observations in the physical sciences, amongst others.
The term primary research is widely used in academic research, market research and competitive
intelligence.
Secondary data
Secondary data, is data collected by someone other than the user. Common sources of
secondary data for social science include censuses, organizational records and data collected
through qualitative methodologies or qualitative research. Primary data, by contrast, are collected
by the investigator conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition, analysts of

social and economic change consider secondary data essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments.
Methods ofCollecting Primary and Secondary Data
Data used in statistical study is termed either "primary" or "secondary" depending upon whether
it was collected specifically for the study in question or for some other purpose
Methods of collecting primary data:
Primary data may either be collected through the observation method or through the
questionnaire method.
Personal interviews
In this method, the interviewer sits face to face with the respondent and records his responses. In
this method, the information is likely to be more accurate and reliable because the interviewer
can clear up doubts and cross checks the respondents. However, this method is time consuming.
Mail questionnaire
In this method a list of questions (questionnaire) is prepared and mailed to the respondents. The
respondents are expected to fill in the questionnaire and send it back to the investigator.
Sometimes, the mail questionnaire is placed in the hands of the respondent’s through some other
means such as attaching them to consumers' products or putting them in newspapers or
magazines.
Telephone
In this method, the investigator asks the relevant questions from the respondents over telephone.
This method is less expensive but it has limited application since only those respondents can be
interviewed who have telephones; moreover, very few questions can be asked over telephone.
Method of collecting secondary data
Secondary data is data which has been collected by individuals or agencies for purposes other
than those of our particular research study. For example, if a government department has

conducted a survey of, say, family food expenditures, and then a food manufacturer might use
this data in the organization’s evaluations of the total potential market for a new product.
Sources of secondary data
As is the case in primary research, secondary data can be obtained from two different research
strands:
 Quantitative: Census, housing, social security as well as electoral statistics and other related
databases.
 Qualitative: Semi-structured and structured interviews, focus groups transcripts, field
notes, observation records and other personal, research-related documents.
A clear benefit of using secondary data is that much of the background work needed has already
been carried out, for example: literature reviews, case studies might have been carried out,
published texts and statistics could have been already used elsewhere, media promotion and
personal contacts have also been utilized.
This wealth of background work means that secondary data generally have a pre-established
degree of validity and reliability which need not be re-examined by the researcher who is re-
using such data.

CHAPTER=4
DATA ANALYSIS AND INTERPRETATION
A potential private banking client should proceed very systematically and unemotionally while
selecting a new wealth manager or private banker. The selection should be based on a clear
catalogue of criteria that has been drawn up carefully. We have already written about the
questions a client should ask a potential wealth manager. But a good private banker is also
characterized by his efforts to get a precise understanding of the client's personal situation. It is
only in this way that he will be able to draw up a custom made investment proposal.
We believe that only a structured client questionnaire ensures a comprehensive profile.
Unfortunately, we have found that only a small minority of private bankers is using structured
questionnaires or check lists to get a better understanding of their potential private banking
client.
Under this data analysis we basically analyze the amount of satisfaction customers get from the
private sector in an economy. From the below shown analysis we actually can make out that is it
really that the emergence of private sector banks in India have flourished with flying colours or
not. We have taken the questioners as the base of our data analysis so that data analysis is very
true .We have prepared a wide questionary to have a detailed analysis and interpretation of our
project and more over we have asked various questions from various people about the amount of
satisfaction they receive from private sector banks.

Q1 HOW MUCH PEOPLE ARE SATISFIED WITH THE ATM
FACILITY?
A. YES
B. NO
C. CANT SAY
0
10
20
30
40
50
60
70
80
90
YES NO CANT SAY
ATM FACILITY
Column1
Column2

INTERPRETATION
The above drawn line chart shows that a total of 80% of people are comfortable with the
ATM facility ,they actually feel that the growth and emergence of private sector banks have
proved to be fruitful to them because they can easily use their liquid money wherever and
whenever they require. Whereas 15% of people feel that they do not like ATM facility
because of some social reasons. And the rest 5% says that they can’t say anything about the
ATM facility because they may not be exposed to such a machine by the way of which we
can have quick access to the money.
Q2 ARE PEOPLE EASILY ABLE TO ACCESS THE
BRANCHES OF DIFFERENT PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
The above shown pie chart shows the percentage of those people who are easily able to
access the branches of different private banks. 75% of people says that they can easily
access the branches of private sector banks other 10% says that they cannot access and the
YES
NO
CANT SAY

rest says that they can’t say. This basically helps us to make clear analysis that a lot amount
of people are easily able to access the branches of private sector banks.
Q3 ARE PEOPLE ARE SATISFIED WITH THE SCHEMES
PROVIDED BY PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
The above bar graph shows that 85% of people are satisfied with the various schemes such
as credit guarantee scheme, agriculture and rural schemes, kissan credit card scheme, etc
provided by private sector banks. Whereas the other 10% says that they are not satisfied
while the rest 15% cant say anything about the question.
0% 20% 40% 60% 80% 100%
YES
NO
CANT SAY
Column3
Column2
SCHEME SATISFACTION

Q4 DOES PEOPLE THINK THAT PRIVATE BANKS HAVE
ABILITY TO COPE UP WITH UNCERTAINITY?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
Here with the above analysis says that around 70% of people have this feeling that if any
uncertainty comes private banks can easily cope up with it. It can utilize its uncertainity
measures to cope up with the uncertain situations .While 20% people says that they do not
0%
10%
20%
30%
40%
50%
60%
70%
80%
YES NO CANT SAY
UNCERTAINITY MEASURES
Column2
Column3

think so that private banks can easily cope up with the sudden uncertainity, whereas the rest
15% can’t say anything about this.
Q5 IS A GOOD AMOUNT OF RETURN IS PROVIDED BY
PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
Here we make an interpretation that around 89% of people believe that private sector banks
provide a good amount of return on investment. They use various measures to satisfy their
customers with acceptable return. While 5% say that they do not feel that private banks
provide good return whereas the rest 10% does not say anything.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YES NO CANT SAY
RETURN
Column2
Column3

Q6 DOES PRIVATE BANKS PROVIDE LOANS ON
REASONABLE INTEREST RATE?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
The above analysis interprets that around 83% of people believes that private banks
provide loans on reasonable rate of interest while 15% of people say that they do not think
so that private banks provide loans on low rate of return, whereas the rest 5% does not say
anything.
Column1
YES
NO
CANT SAY

Q7 IS THE GLOBAL FINANCIAL MARKET SYSTEM IS
CAPABLE OF PULLING THROUGH, INSPITE OF MAJOR
UPHEVALS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
0%
10%
20%
30%
40%
50%
60%
70%
YES NO CANT SAY
MARKET STANDING
Column2
Column3

The above graph shows that around 69% of people agree that financial market standing of
private banks is very good while the other 17% of people disagree with the financial
market standing of private banks whereas the rest 25% of people does not say anything
about this.
Q8 ARE THE CONSUMERS SATISFIED WITH THE KIND
OF SERVICE PROVIDED BY PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
The above shown graph interprets that around 95% of people in the society are satisfied
with the type of service provided by the private banks while there is only 2% of section in
the society that do not like the services provided by the private banks whereas the rest of
0% 20% 40% 60% 80% 100%
YES
NO
CANT SAY
SERVICE SATISFACTION
Column2
Column3

3% of people can’t say that whether they are satisfied by the services of private banks or
not. This percentage of people supporting the highly positive response to the analysis
easily interprets that the emergence of private banks has been very beneficial for the
societal development.
Q9 ARE PEOPLE SWITCHING TO ONLINE BANKING
WITH THE PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
The above drawn line graph interprets that around 86% of people are of the view that
online banking is the most prominent feature of private banks , this makes us interpret that
the major section of the people are very much comfortable with the online banking facility
because this reduces their time and energy . while the rest 7% of the people does not think
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YES NO CANT SAY
Column3
Column2
ONLINE BANKING

that online banking is a good feature of private banks whereas the rest of 5% of people cant
say anything about this facility.
Q10 DOES PRIVATE BANKS INTRODUCE NEW POLICIES
WHETHER FOR OLD AGE, VARIOUS OTHER RELIEFS?
A. YES
B. NO
C. CANT SAY
INTERPRETATION
Around 79% of people believe that private banks keep on introducing new schemes in the
banking industry while 9% does not feel that private banks introduce some exciting and
NEW SCHEMES
YES
NO
CANT SAY

beneficial schemes, whereas the rest 12% can’t say anything about the new schemes that
are introduced by the private banks.
CHAPTER 5:
FINDINGS AND CONCLUSIONS
The major findings of our project are based on the
analysis and interpretation that we have made in
chapter 4, below discussed are the major findings of
our project-:
 The very first finding that we have find out after a detailed analysis in chapter 4 is that
people are really much at ease with the introduction of ATM machine because they can
easily convert their money into liquid form at anytime and anywhere. Therefore all the
prominent benefits of ATM machine have been founded out on the basis of our detailed
analysis. An ATM machine increases sales because it allows your customers to access all
of their available cash from bank cards, credit cards, etc... From almost anywhere in the
world. You should earn more than enough profit from surcharge fees to pay for the ATM.
The big profit is from the additional sales from the thousands of extra dollars available in
your facility. An ATM transaction is guaranteed and eliminates charge backs, disputes,
credit card fees and bad checks. An ATM provides more security for you, your
employees, and customers by providing less risk of robbery and employee theft. You
greatly reduce or eliminate the credit card fees you are currently paying by directing your
customers to the ATM. "EBT" (Electronic Benefit Transfers) Program. State and federal
welfare checks along with social security government and retirement checks will soon be
replaced with Electronic Benefit Transfers (EBT). Current estimates show that ATM
withdrawals could increase 400% to 600% in some areas due to Electronic Benefit
Transfers. "CASH" is the fastest and least expensive form of payment. "Time is money"
has never been truer. Accepting credit cards and checks is becoming increasingly more
expensive because of the long process time - which slows down your business. ATM's
neatly solve this problem! An ATM saves employees time and customer embarrassment.
With an ATM your customers make electronic deposits directly into your bank account

which saves you both time and work. Your potential customers will no longer have to
stop at your competitors to get cash (and spend it there).You will have customers
stopping at your place of business because the competition cannot accommodate their
needs. When you provide new and unique services for your patrons, your image is
improved.
 The second finding that we have made is that people can easily access the branches of the
private banks. About 75% of people say that they are easily able to access the private
banks. Private Banks are expanding at a very fast pace, they have established their
branches in almost every city so that people find it no more difficult to go to the banks.
Moreover they have also started establishing their branches in the rural areas where
people do not even know about the concept of private banks. They are establishing
themselves there, guiding people that what actually private banks are. They are even
providing them loans at a very low rate of interest, providing them various subsidies, new
schemes, etc. And by establishing their branches in the rural areas they are not only
making them aware but also providing them employment opportunities and promoting
the growth of their area. Private bank branches are very easily accessible and are found
everywhere so people find it easier to invest their funds in private sector and moreover
unlike public banks private banks provide a very fast service to its customers. They do
not have to stand in cues or wait for long time to get a simple task of work done which
helps to save the time and energy of people. And other facilities such as constant
introduction of new schemes, online banking, and ATM facility have enforced people to
go for private banks instead of public banks and this is the main reason why people today
have switches from public to private banks.
 The third finding that we have done is that private banks have really achieved success in
introducing new schemes for their customers. They have also introduced new-new
features for their customers like sometimes ATM, sometimes online banking, etc. private
banks have been a mother in providing ease to its customers. Now a day’s customers use
to get a frequent messages on their mobile phones that they can take loan from their
banks with just for example 2% interest. About 85% of people say that they are really
satisfied with the introduction of new schemes of private banks. The average population
coverage by a commercial bank branch in urban areas improved from 12,300 as on June
30, 2005 to 9,400 as on June 30, 2010 and in rural and semi urban areas from 17,200 as
on June 30, 2005 to 15,900 as on June 30, 2010. The all India weighted average during
the same period improved from 15,500 to 13,400. Though the Indian financial system has
made impressive strides in resource mobilization, geographical and functional reach,
financial viability, profitability and competitiveness, vast segments of the population,
especially the underprivileged sections of the society, have still no access to formal
banking services. The Reserve Bank is therefore considering providing licenses to a
limited number of new banks. A larger number of banks would foster greater
competition, and thereby reduce costs, and improve the quality of service. More
importantly, it would promote financial inclusion, and ultimately support inclusive
economic growth, which is a key focus of public policy. This discussion paper outlines
past approaches, international experience, and considers the various costs and benefits of

increasing the number of new banks as well as the pros and cons of various policy
parameters in licensing new banks.
 The fourth analysis that we have made is very important both for the customers as well as
for the banks that does private banks have the ability to cope up with uncertainty. What
we have found out is that around 70% of people are sure that yes private banks really
have the capability to cope up with uncertainty. It is generally accepted that greater
financial system depth, stability and soundness contribute to economic growth. But
beyond that, for growth to be truly inclusive requires broadening and deepening the reach
of banking. A wider distribution and access of financial services helps both consumers
and producers raise their welfare and productivity. Such access is especially powerful for
the poor as it provides them opportunities to build savings, make investments, avail
credit, and more important, insure themselves against income shocks and emergencies.
So the private banking sector has been successful in coming up with this great power of
financial stability and utmost soundness. As of March 31, 2009, the Indian banking
system comprised 27 public sector banks, 7 new private sector banks, 15 old private
sector banks, 31 foreign banks, 86 Regional Rural Banks (RRBs), 4 Local Area Banks
(LABs), 1,721 urban co-operative banks, 31 state co-operative banks and 371 district
central co-operative banks.
 The other finding is that private banks provide a good amount of return to its customers.
They never make their customers dissatisfy regarding the returns on they get on their
investments. These days customers also get a through information on their cell phones
about the deposits and withdrawals that they make in their account.
 Private Banks have also been successful in promoting the growth of the economy of a
country like India. In India the introduction of private banks have brought strength in
people because now they do not have to waste their expensive time on going to banks
rather they can sit at home and do all that they want to do with their bank accounts.
 We have also found out that private banks also provide some relief funds for the old-age
people, other reliefs like student’s loan, housing loans, and many other types of loans to
provide assistance to every type of customer. Given the recent developments, private sector
banks are seen as safer bets compared to public sector peers .The banking sector used up
most of its deposit-side levers to push net interest margins (NIMs) to all-time highs in the
September quarter. The prevalent opinion is that the margins have peaked, given the not-
so-robust credit growth. The sector’s deposit growth stood at 17 per cent year-on-year in
the recently concluded quarter, as compared to 20 per cent in the corresponding period a
year ago. Domestic credit-deposit ratio dipped about 150 basis points sequentially to 73.2
per cent.


 After detailed researches we have found out that majority of people are favoring the online
banking facility provided by the private banks. This is a very quick and very easy way to
have all the banking operations online so that all time people do not have to visit the banks,
check their accounts, make changes, etc. What are the three greatest things about the
Internet? E-mail, music, and online banking! Whether for the convenience or the control,
online banking is an aspect of banking that nobody can resist. Our children will probably
laugh when we tell them people used to actually go to a bank to pay bills. Many of the
benefits of doing your banking online are obvious:
 You don't have to wait in line.
 You don't have to plan your day around the bank's hours.
 You can look at your balance whenever you want, not just when you get a statement.
There are some hidden benefits too. As a young bank customer, you're just learning how to
manage your money and observe your spending patterns.
 Online banking allows you to watch your money on a daily basis if you want to. By
keeping close tabs on your funds, you'll always be aware of what's happening in your bank
account.
 For those experienced spenders, this option is far more appealing than the sudden discovery
that you're broke!
 It's also helpful to watch how much interest you're gathering on investments and savings or
what service charges you have incurred.
The findings that we have done through a detailed analysis in our project are that the online
banking is becoming more and more prominent. Here are some of the features available through
online banking:

1. View balances: Checking your balance doesn't require much work. You simply select
Account balances and take a look at your balance and past transactions. If you have more
than one account, you can also do transfers between accounts.
2. Pay bills: To pay your bills online, you just need to add to your account the names of the
companies you wish to pay bills to. In the Pay Bills section, select Add payees, search for
the name of the company and fill in the account number for each company. You can also
sign up for the E-bills service that sends you a bill by e-mail instead of a printed one by
regular mail.
3. Transfer funds: When you select Transfer Funds, you'll be asked where to transfer the
money to and from, when, and the amount.
4. Set up recurring bill payments or transfers: If you make a regular payment every month, it
might be convenient to set up an automatic withdrawal from your account.
5. Monitor CIBC investments: If you have any CIBC investments, you can keep an eye on
those stocks or mutual funds here.
6. Send and receive an INTERAC e-TransferTM2: This could be the end of the birthday
cheque! You can receive transfers from other people's accounts, or set up transfers from
your account to someone else's. The recipient will get an e-mail notifying them of the
transaction.
7. View CIBC VISA* accounts: Always a good place to monitor your spending. You can
make your credit card payments online, right from your account.
8. Order cheques: We don't need them much anymore due to online banking and debit
purchases, but if you still use cheques, you can order them directly from the CIBC website.
 After a deep analysis on the topic “EMERGENCE OF PRIVATE SECTOR BANKS IN
INDIA” we have arrived at the conclusion that yes with the growing emergence of private
sector banks in India we have got a key that could really lead India towards the success in
the whole world. India could really achieve the true wealth because the private sector banks
have been able to mobilize the savings of various individuals, households, governments, etc
for various beneficial purposes that could lead towards the development of the nation.
Private banks are also heading towards the introduction of means that could really be up to

the ease of the people i.e. the introduction of ATM machine people can liquidize their
money at anytime and anywhere, on-line banking has also facilitated a lot of relief to the
people because unnecessary they do not have to stand in long lines or wait for long hours to
get their work done. And this one of the reason why the RBI (Reserve Bank of India) has
started giving license to the new private banks so that there could be a balanced regional
development in the country. The banking system, being an important intermediary through
which the savings of the community got channelized and served as a key constituent of
country's basic social and economic objective, the Government of India introduced a
scheme of ‘social control’ over banks in 1967 with the main objective of achieving a wider
spread of bank credit, preventing its misuse, directing a larger volume of credit flow to
priority sectors and making it a more effective instrument of economic development.
Therefore the emergence of private sector in India has really served as a wide way to
channelize the savings of the individuals, households and other people in the society and
use them for some advanced and highly important purposes. Private banks also provide
scope for growth and expansion in the economy and this is why the Indian economy is fast
flroushing in all the aspects because private banks not only channelizes the savings of
common people for important purpose, they even create a competition in the economy.
CHAPTER 6
SUGGESTIONS AND RECCOMENDATIONS
The only suggestion and recommendation that
could be given to the private banks is
summarized below….
 First of all private banks should be given license by RBI to grow and develop. They
should be given more and more opportunities so that they can establish themselves in
almost every part of the country. RBI ( Reserve Bank Of India should grant more
license to the private banks to introduce themselves in the banking sector. Their
establishment in the rural areas should be promoted so that more employment
opportunities could be generated and people will get awareness of what is happening in
their country as the people living in rural areas are generally not aware about the
concept of private banks. Private Banks should be promoted to promote agricultural

development in the country like the agricricultural development private banks should be
formed.
 On-line banking should be more enforced and brought under the knowledge of common
people. Even today a majority of people in a country like India are not aware of the
online banking which is like a major drawback of private banks. Only the metropolitan
cities know about the recent introductions made by private banks so in order to promote
themselves private banks should spread awareness about their formation in every part
of the country, they should make people aware about the features of their banks like the
ATM facility. This is very important because until and people will not come to know
how they will be able to get through with the technology so it is a major suggestion to
the private banks that they should do efforts to spread awareness to the people about
their importance.
 Private Banks should be given more opportunities so that they can expand in all fields.
Yes, this is very important that private banks should an opportunity by the government to
grow and develop themselves in all the fields be it health, insurance, agriculture, etc.
They should be given grant so that the economy of the country gets improved because the
formation of private banks have not only promoted the economic growth and
development but also they provide employment opportunities to the people, awareness
spreads, poverty reduces, highly skilled people gets invitation and on the whole the whole
country develops. They should be enabled an expansion in the rural sector of the country
like India. The requirement couldn’t be timelier. The majority of India’s 6, 50,000
villages do not have even one bank branch, and just 3.5 of every 10 Indians have access
to formal banking services in the country, according to a 2011 World Bank survey- Only
37,471 branches were operational in rural India, as of March 2012, while the total
banking outlets in villages (including branches, business correspondents and other
modes) number just 1, 81,753. While the existing banks also function as per the same
mandate (one rural branch out of every four branches), the entry of new players should
augment the overall rural presence.
 Government should grant assistance to the private banks to establish their branches
everywhere in the country but majorly the rural regions so that they could also develop in
terms of finance. Daily wage labourers, small traders and self-employed individuals
should now have access to formal banking services, courtesy the government’s grand
financial inclusion drive. The drive has resulted in 26 companies, including Tata Sons,
Aditya Birla Nuvo, Reliance Capital, Bajaj Finserv, L&T Financial Holdings, IFCI and
India Post, applying for banking licenses. If approved, the new players should be able to
help several thousand Indians open bank accounts, while many more small and micro
enterprises, entrepreneurs and traders should gain access to capital. That’s because the

Reserve Bank of India has mandated that all the new players must open one branch in
rural areas for every four they set in urban areas.
 Private Banks should work in a way that people should have faith in them and can
therefore support their development. This is a very important suggestion that needs to be
given to the private banks that they should work for the people i.e. for providing services
to them. They should not compromise their customers at the risk of their growth and
expansion. They should keep introducing new schemes, new features so that people get
attached with the private banks and can therefore support the growth of their banks and
also advice others to invest their money in the private banks. According to Kotak, the key
change ripping through the financial sector relates to customer, values and ethics.
“Appropriate products and right advice are the cornerstones of the future. The battle in
financial services will be won or lost around customer orientation, technology and risk
management, combined with a strong people culture,” he says. Currently, the sector is
consolidated with the top 10 players accounting for approximately 60 per cent of the
industry. Public sector banks dominate, with the State Bank of India, Punjab National
Bank and Bank of Baroda having the first, second and third largest credit portfolios,
respectively.
 The entry of private banks with high efficiency operating models, deployment of
integrated technology platforms, new risk paradigms and above all, the emergence of
highly demanding customer segments have all contributed to transformation in the
banking sphere, according to the recently released ICC-KPMG Banking report. "We
believe that for India to achieve the GDP growth rate of 6-7%, the banking sector will
have to play a pivotal role. Banks will have to focus on emerging middle India, rural
customers and MSME (micro small and medium enterprises) sector especially in the
eastern and north eastern states," Ambarish Dasgupta, head, management consulting,
KPMG, India said.

Bibliography
 http://www.newagepublishers.com/samplechapter/000896.pdf
 http://www.inc.com/guides/2010/09/how-to-write-an-executive-summary.html
 http://dictionary.reference.com/browse/data
 http://www.worldbank.org/ieg/ipdet/presentation/M_10-Pr.pdf
 http://www.newagepublishers.com/samplechapter/000896.pdf

Annexure
Confidential Questionnaire
Name-
Email id –
Age -
Q1 HOW MUCH PEOPLE ARE SATISFIED WITH THE ATM
FACILITY?
A. YES
B. NO
C. CANT SAY
Q2 ARE PEOPLE EASILY ABLE TO ACCESS THE BRANCHES
OF DIFFERENT PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY

Q3 ARE PEOPLE ARE SATISFIED WITH THE SCHEMES
PROVIDED BY PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
Q4 DOES PEOPLE THINK THAT PRIVATE BANKS HAVE
ABILITY TO COPE UP WITH UNCERTAINITY?
A. YES
B. NO
C. CANT SAY
Q5 IS A GOOD AMOUNT OF RETURN IS PROVIDED BY
PRIVATE BANKS?
A. YES
B. NO
C. CANT SAY
Q6 DOES PRIVATE BANKS PROVIDE LOANS ON
REASONABLE INTEREST RATE?
A. YES
B. NO
C. CANT SAY
Q7 IS THE GLOBAL FINANCIAL MARKET SYSTEM IS
CAPABLE OF PULLING THROUGH, INSPITE OF MAJOR
UPHEVALS?
A. YES
B. NO
C. CANT SAY
Q8 ARE THE CONSUMERS SATISFIED WITH THE KIND OF
SERVICE PROVIDED BY PRIVATE BANKS?

A. YES
B. NO
C. CANT SAY
Q9 ARE PEOPLE WORKING IN THE PRIVATE SECTOR
BANKS SATISFIED WITH THEIR JOBS?
A. YES
B. NO
C. CANT SAY
Q10 DOES PRIVATE BANKS INTRODUCE NEW POLICIES
WHETHER FOR OLD AGE, VARIOUS OTHER RELIEFS?
A. YES
B. NO
C. CANT SAY

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