changes such as deregulation of interest rates and dilution of consortium lending requirement .Moreover, banking has been opened up to the privatesector .As a result, new privatesectorBanks have been set up, old privatesectorBanks have expanded their operations and more foreign sectorbanks have entered the Indian banking industry. This has promoted competition and has helped in increasing efficiency. The paper endeavors to determine customer satisfaction. In the era of cut throat competition the survival of any banks depends upon the satisfied customers .Customer satisfaction is the state of mind that consumers have about a bank when their expectations have been met or exceeded over the life time of the service different people may have different expectations based on their prior experience, personal needs and what other people told them. As perceptions are always considered relative to expectations and expectations are dynamic, perceptions may also shift over time from person to person. What is considered quality service or the things that satisfy customer today may be different tomorrow, same is in banking industry. Understanding of the customer’s expectations and their perceptions about a particular bank can be the game changer.
The population for the study consists of public sectors and three privatesectorbanks of Ahmadabad district.Our study is limited for the three Publicsectorbanks State Bank of India, Bank of Baroda and Canara Bank and three Privatesectorbanks HDFC Bank, ICICI Bank and AXIS Bank.Determining the sample size plays critical role in any research. The time taken by researcher for collecting sample is played major role in research, research scolder detailed interaction with bank customer. The population of the study consists of all types of customers of above six Public and Privatesectorbanks of Ahmadabad district.Primary data was collected by researcher from bank customer from six above sample banks by online and offline mode.From collecting the sample of 400 for bank customer, Sample of 317 for bank customer is finalized after removing defective samples or not traceable samples. The finalized sample consist of 76 State bank of India, 48 Bank of India, 37 Canara bank, 54 HDFC bank, 53 ICICI bank and 49 of AXIS bank for customer. The data are processed through SPSS.
In the above table, Chi square test is applied in order to check the association between the customers’ choice (for opening an account) in public or privatesector bank and various factors (location, product, economical services, cost, convenience, social initiatives and reputation). Since the p-value for factors influencing the customers’ choice (for opening an account) between public and privatebanks is .001 which is highly significant and less than 0.05(p<0.05). Hence, it is concluded that there is a significant association between the various factors (location, product, service, cost convenience, social initiatives, reputation and any other) and customers’ choice of bank (for opening an account ) in public or privatesector bank. So, Null hypothesis stating there is no significant association between factors and choice of bank between publicsector & privatesectorbanks stands rejected.
SEP-OCT, 2015, VOL-3/20 www.srjis.com Page 772 a company's quality of work life will affect its market and financial performances. Growth and profitability of two groups of publicly held companies were compared based on sales growth, asset growth, return on equity, and return on assets. Findings from this empirical study suggest that companies with high quality of work life can also enjoy exceptional growth and profitability. Kaur Daljeet (2010), in this article researcher said that employees are happy with the working conditions of the bank (ICICI). But they are less satisfied with their jobs because they feel that their management is not flexible with their social responsibilities. T.Ayesha etal (2011),have done research on QWL among male and female employees of private commercial banks in Bangladesh to find out is there any significant difference among male and female bank employee‟s perception of QWL issues. The finding about perception shows that male‟s perception more positive as compared to females except in terms of socialization. Dr. Vijaya T.G, Hemamalini R. (2012),studied the Impact of work life balance on organizational commitment among bank employees. The researcher found that there exist a positive co-relation between affective commitment and work life balance variables. Dr. Reddy M.Lokanadha, Dr. Reddy Mohan. P (2013), studied the QWL in the organized public and privatesectorbanks in the Chittoor district of Andhra Pradesh. He concluded that the publicsectorbanks shall provide the amenities on par with the privatesectorbanks to improve the QWL of their employees so that the overall performance of the publicsectorbanks shall be improved.
PrivatesectorBanks seem to have satisfied its customers with good services and they have been successful in retaining their customers by providing better facilities than PublicsectorBanks. But, still PrivateBanks need to go a long way to become customer‟s first preference. In an economy of innovative technologies and changing markets, each and every service quality variable has become important. New financial products and services have to be continuously introduced in order to stay competent and PrivateBanks need to concentrate more on their credit facilities and insurance services since customers do not have a very good opinion about these facilities being offered by PrivateBanks also Publicsectorbanks enjoy the trust of the customers, which they have been leveraging to stay in the race however they need to improve their service
The table shows the comparative analysis of the CSR score of the publicsectorbanks in India. As per the Average Score the highest score is achieved by the IOB. The IOB perform the 10 CSR activities out of 13 mandatory areas as per the Companies Act; 2013 and Schedule vii. The lowest CSR areas are covered by the Canara and the Indian bank. These both the banks perform only 2 activities of CSR.
Banks plays a vital role in the mobilization of resources for the development of an economy. They collect the funds from public and provide credit facilities for economic development of the nation. The Indian banking system consists of 27 publicsectorbanks, 26 privatesectorbanks, 46 foreign banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative banks, in addition to cooperative credit institutions upto 31 st march, 2017. Public-sectorbanks control more than 70 per cent of the banking system assets, thereby leaving a comparatively smaller share for its private peers. Banks constitute the backbone of a nation’s financial system, performing manifold functions through liquidity, maturity and risk transformation. Indeed, it needs no gainsaying that the health of the economy is, in a way, the mirror reflection of the banking system, especially in bank-based financial systems. A bank is like heart of the human body and the capital it provides is akin to the blood in it. So long as the blood circulates seamlessly, the organs remain sound and healthy. However, if for any reason, the blood were not supplied to any organ, then that part would be rendered useless. Not surprisingly therefore, there is always a conscious attempt on the part of the Reserve Bank to provide adequate liquidity and credit to all productive sectors of the economy. Banks act as a lubricant for the entire monetary and financial system and ensure smooth operations. Hence, it is of utmost importance that banks should generate sufficient resources to run its operations and for expansion & modernization programmes. The present study is thus undertaken to make a comparative analysis of financial performance of public and privatesectorbanks.
In todays fast pace world it is very difficult to find any individual without stress. And stress is sometimes good (Eustress) which makes you work more effectively whereas sometimes the stress is negative or will make you go in depression or Burnout which is called Distress. Distress is very harmful for both the Individual employee as well the organization which leads to fatigue in work and lose of productivity. Hence this is an attempt to identify the psychological distress faced by the employees working in public and privatesectorbanks and the most preferred stress management techniques used by them to cope up with the psychological distress. In this study total 400 banks employees are taken as respondents out of which 200 each are from public and privatesectorbanks.
This study uses Fixed effect model (FEM) and Random effect model (REM) to conduct the analysis, as it considers the effect of systematic differences between the firms as compared with OLS which assumes that model parameters are con- stant across all firms . These two panel data regressions models are applied to get accurate estimates and also to control unobserved heterogeneity and the problem of endogeneity . In order to choose the appropriate model between FEM and REM based upon the consistency of estimated results , specifica- tion test was also conducted. The test normally assumes the null hypothesis, that there is no correlation between error term and explanatory variables and hence, REM should be used. Alternatively FEM is appropriate assuming there is corre- lation between error term and explanatory variables. Decision rule is under 5% significant level if Hausman test statistic has probability less than 0.05 then it is possible to reject null hypothesis meaning FEM is appropriate. The results of the Hausman test in our study reject (accept) the null hypothesis at 5 per cent signi- ficance level, thereby supporting the use of FEM (REM) for analysis in private (public) sectorbanks. The results are of the view that fixed (random) effect model is the most appropriate and consistent model for analysis in private (pub- lic) sectorbanks.
It is clear from the existing literature that the studies pertaining to the finan- cial performance of commercial banks across the globe, especially in Indian con- text, are performed based on the ratio analysis and CAMEL ranking method. Be- sides there have been studies which proved that there has been significant dif- ference in the performance of public and privatesectorbanks in India    . However, the analysis has been done on the basis of aggregate financial ra- tios of public and privatesectorbanks and not on the basis of individual banks. Besides, there exist only few studies in the context of India that associates the li- quidity, solvency and efficiency positions of the Indian commercial banks with their profitability ratio. Our study attempts to evaluate the financial performance of selected Indian commercial banks for the period from 2012/13 to 2016/17. The study comprises 16 commercial banks, 11 representing publicsector and 5 from privatesector, and the financial performance of these banks are analysed using the financial ratios. In addition, the study investigates the impact of liquidity, sol- vency and efficiency on the profitability of the selected publicsectorbanks and privatesectorbanks, respectively, by employing the panel data estimations.
Undoubtedly service quality is an important component in any business/service related activity.Service quality is defined as the difference between customer’s expectations and perceptions of the service received. Customers feel delighted if the organization delivers more than they expected. Customer is regarded as the king of any business. Customer satisfaction and service quality are positively related to each other. Higher the service quality, higher is the customer satisfaction. Good quality services have become the need of the hour. Excellence in service quality is a must to achieve customer satisfaction and ultimately customer retention. So it has become imperative to retain customers and resolve customer complaints timely. Banks play a significant role in the economic growth and prosperity of any country. Customer satisfaction plays an integral role in boosting up a bank’s performance.
Finally, in Table 9 we explore whether publicsector corruption in certain situations might be particularly damaging in terms of privatesector trust. To do this we include a dummy for each corruption situation in our models. These take a value of one if the respondent has any experience of paying a bribe in the situation in question and zero otherwise. The results of this exercise paint an interesting picture. Having to pay a bribe for a household service is significant in five out of six of our models. Only in the case of trust in small businesses where we control for perceptions of corruption is it insignificant. It is interesting that the situation which is most strongly associated with lowering trust in the privatesector is also the situation that is most similar to a privatesector transaction. The survey prompts people to think of services “like piped water, electricity, or phone.” Services like these can be provided by privatesector corporations in many countries. One might be tempted to conclude that the endogeneity problem outlined above is valid. This was the story in which low trust in privatesector corporations leads individuals to engage more with the publicsector and thus they are more likely to face bribe demands. It could also be the case that low trust in the privatesector leads people to seek out and bribe an influential public servant to help get, for example, a phone connection. However, we must note that the effect of having to pay a bribe for services such as these on trust in local traders is also statistically significant. Even if we suspect this particular endogeneity problem is driving the result regarding trust in big private corporations, this story does not explain away the result regarding trust in local market traders. 6 The only other situation where we see any evidence of a statistically meaningful effect is for trust in small businesses. Here we see some evidence that having to pay a bribe to get a document or permit lowers trust.
The main intention behind the newly formed well planned organisations with innovations in products and services and their quality and speed of responsiveness to the customer and the market were attracting customers largely taken away from PSBs. At the center of all such initiatives, these banks enjoyed the advantage of full freedom in regard to not only technology but also more importantly, human resources. The main competency of these banks are those skillfully and smartly leveraged a right mix of technology and manpower, to acquire and gain competitive advantage from day one. The main threat of PSBs continued to remain at a disadvantage in the area of both technology and human resources.
Corporate governance is particularly important for banks, given the bank’s important role in the financial sector. The rapid changes brought about by globalization, deregulation and technological advances are increasing risks in the banking systems. Moreover, unlike other companies, most of the funds used by banks to conduct their business belong to their creditors, in particular their depositors. Linked to this is the fact that the failure of a bank affects not only its own stakeholders, but may have a systemic impact on the stability of other banks. Theoretically, information asymmetry gives rise to agency problems and conflicts of interest between owners and managers. Good corporate governance is designed to address this problem. Further, government regulations and frequent interventions reduce the incentive for effective monitoring and at the same time make supervision (or supervisors) less effective. In this context, the corporate governance of banks becomes a more important challenge as compared to other firms.
The analysis of bankers’ viewpoint with regard to capability of an internal control system to deal swiftly with credit risks arising from changes in environment is given in Table 3. The analysis shows that most of the respondents in all the banks either agree or strongly agree with the existence of an internal control system for identifying credit risks. Comparatively, SYNDI is ranked at number one (Mean = 4.54, SD = 0.54) in publicsectorbanks, followed by OBC (Mean = 4.45, SD = 0.72), BARODA (Mean = 4.36, SD = 0.78), ANDRA (Mean = 4.20, SD = 0.73), PNB (Mean = 4.19, SD = 0.81), SBI (Mean = 4.16, SD = 0.82), UNION (Mean = 4.12, SD = 0.88) and IDBI (Mean = 4.00, SD = 0.62). On the other hand, privatesectorbanks, AXIS is ranked at number one (Mean = 4.45, SD = 0.69) followed by HDFC (Mean = 4.33, SD = 0.69) and ICICI (Mean = 4.19, SD = 0.82).
Abstract: Today organizations recruit & retain Multi- Generational Workforce (Age Diversified Workforce) which consists of employees from five different generations having diversified competency. It is always a great challenge for organizations to retain & motivate a Multi-Generational Workforce to achieve their goals & objectives in a competitive era. The growth and development of an age diversified organization depends upon the performance (PFM) level of personnel working in the organization and their PFM level depends upon both ability & adaptability. As banking sector is automated & every activity is done with the help of computers (IT) it is very tough for banks to deal with multi-generational workforce effectively. The banking sector consists of multi- generational workforce who are different in thought, ideology, attitude & perception & they adapt technology differently. Traditionalist, the silent generation is completely resist to accept technology whereas Baby boomers are little bit sound in technology. Similarly Gen-X is technology friendly & uses technology to make work life balance whereas Gen-Y, the tech savvy generation is completely attached with technology & finally Gen-Z the 5G who is more advanced in technology & cannot walk a single step without the help of IT. In India with the introduction of New Economic Policy (NEP), there was enormous change in banking sector. There was enough scope for privatesectorbanks (LPG, policy) which came to be known as “Tech savvy Banks of New Generation”. The introduction of IT paved new wave of automation in banking sector which enhanced performance & at the same time faced challenges regarding adaptability. It is an attempt to study the importance of IT in banking sector & the challenges faced by banks regarding the adaptability of IT as banks lead a multi-generational workforce. The remedial measures are suggested to bring the compatibility of workforce with IT & strategies with the help of which the workforce will attain its goals & objectives & gain competitive advantage. To test hypotheses “Independent t test” have been conducted.
Dr. Guruswamy, (2012), describe analysis of profitability Performnce of SBI and ITS Associates, the paper an attempt has been made to analyze the profitability performance of SBI and its associates. The objectives of the paper are to study the profitability of SBI and Its Associates and to analyze the profitability performance of SBI and Its Associates. This paper is primarily based on secondary data. In order to derive the open handed results from the information collected through secondary data, various statistical tools like mean, S.D, variance, CAGR, and ANOVA have been accomplished. The scope of the paper is confined to all the banks of SBI group for a data period from 1996-97 to 2007-08. In the present paper, for the purpose of evaluating the performance of SBI and its associates, five profitability ratios have been considered. On the basis of analysis of profitability ratios it is printout that all the five ratios shows fluctuating trend during the study period in all the banks.
Continuing its merger plan for publicsectorbanks, the government has finally completed the mega-merger of one weaker lender Dena Bank and anchor lender Vijaya Bank with a 111-year-old Bank of Baroda (BOB). All these banks are different from each other, have different business operations, hold different positions and have different experiences. This would be second biggest merger plan of centre, after largest lender State Bank of India (SBI) acquisition with its own six associated banks. Dena Bank and Vijaya Bank on their official website stated that the process of amalgamation promises to leverage the specific skills of each bank and imbibe their best practices. This mega entity has the ability to do more and reach further to fulfil customers with world-class offerings backed by robust processes.
Whereas, Dr. Ravichandran et al in 2010 the paper examines existing research and try to recognize socio demographic and rational profile of public retail banking consumers. It also finds out the significance of service quality dimensions to forecast the multidimensional model of behavioral meanings among publicsector consumers in India. Loyalty was found to be subjective by operating hours, modern equipment, error free accounts etc. Service quality factors like tangibility, responsiveness and empathy dimensions were also found to be very essential. Sachin Mittal&Rajnish Jain (2010)-This research paper is basically a literature review of banking sector and outcome of IT based services on customer satisfaction. The study underlines customer satisfaction levels amongst young customers in banking industry. A study indicates the difference between customer‘s expectations and perception with respect to IT based banking services. Findings specified essential to develop the IT based services for improving customer satisfaction.
The major objective of this study is, therefore, to identify those factors or characteristics of FBs (vis-à-vis DBs) operations in India, which provide them a greater level of profitability. For the purpose of this study all 75 scheduled commercial banks (excluding regional rural banks or RRBs) were divided into two groups, namely, FBs and DBs. FBs comprise of all foreign banks (23) operating through their branch network in India. DBs consist of both publicsectorbanks (28) and privatesectorbanks (24). Data were collected from the several publications of the RBI and Indian Banks Association and then computed according to our requirement. (The data sources have been referred to at appropriate places).