INDEX

PARTICULARS Page
No
Activity/Project 1- Role of Technology in Banking Sector

1.1 Name of the Organization

1.1.1 Abstract 9
1.1.2 Introduction of the Organization 9
1.1.3 Brief explanation of the core topic/Importance of study 10
1.1.4 Objective/s of the study 11
1.1.5 Data presentation/ analysis 24
1.1.6 Key Findings 25
1.1.7 Conclusions 26
1.1.8 Bibliography/ Webliography 27
Activity/Project 2- Contribution of Banks in Empowering Women

2.1 Name of the Organization

2.1.1 Abstract 29
2.1.2 Introduction of the Organization 29
2.1.3 Brief explanation of the core topic/Importance of study 30
2.1.4 Objective/s of the study 30
2.1.5 Data presentation/ analysis 34
2.1.6 Key Findings 45
2.1.7 Conclusions 48
2.1.8 Bibliography/ Webliography 49
Activity/Project 3- Comparative Study of SBI & HDFC Bank

3.1 Name of the Organization

3.1.1 Abstract 50
3.1.2 Introduction of the Organization 51
3.1.3 Brief explanation of the core topic/Importance of study 51
3.1.4 Objective/s of the study 51
3.1.5 Data presentation/ analysis 57
3.1.6 Key Findings 59

1
3.1.7 Conclusions 61
3.1.8 Bibliography/ Webliography 61

2
Name: Anushka Sharad Kale

Class: SYBBA -A
Subject: Banking & Finance
Topic:
1) Role of Technology in Banking Sector.
2) Contribution of Banks in Empowering Women.
3) Comparative Study of SBI & HDFC Bank.

3
4
In the development of Indian Economy, Banking sector plays a very important and crucial
role. With the use of technology there had been an increase in penetration, productivity and
efficiency. The banking sector has embraced the use of technology to serve its clients faster
and also to do more with less. Emerging technologies have changed the banking industry
from paper and branch based banks to digitized and networked banking services. Unlike
before, broadband internet is cheap and it makes the transfer of data easy and first.
Technology has changed the accounting and management system of all banks. Information
technology refers to the acquisition, processing, storage and dissemination of all types of
information using computer technology and telecommunication systems. Information
technology architecture is an integrated framework for acquiring and evolving IT to achieve
strategic goals. The branches are running on the concept of 24 X 7 working, made possible by
the use of Tele banking, ATMs, Internet banking, Mobile banking and E -banking. These
technologies driven delivery channels are being used to reach out to maximum number of
customers at lower cost and in most efficient manner. The beauty of these banking
innovations is that it puts both banker and customer in a win- win situation. Effective use of
technology has a multiplier effect on growth and development.

With the globalization trends in all over world it is difficult for any nation big or small,
developed or developing, to remain isolated from what is happening around. For a country
like India, which is one of the most promising emerging markets, such isolation is nearly
impossible.
More particularly in the area of Information technology, where India has definitely an edge
over its competitors, remaining away or uniformity of the world trends is untenable. Financial
sector in general and banking industry in particular is the largest spender and beneficiary
from information technology. This endeavours to relate the international trends in it with the
Indian banking industry.
The last lot includes possibly all foreign banks and newly established Private sector banks,
which have fully computerized all the operations. With these variations in the level of
information technology in Indian banks, it is useful to take account of the trends in
Information technology internationally as also to see the comparative position with Indian
banks. The present article starts with the banks perception when they get into IT up gradation.
All the trends in IT sector are then discussed to see their relevance to the status of Indian
banks.

5
The IT revolution has set the stage for unprecedented increase in financial activity across the
globe. The progress of technology and the development of worldwide networks have
significantly reduced the cost of global funds transfer. It is information technology which
enables banks in meeting such high expectations of the customers who are more demanding
and are also more techno-savvy compared to their counterparts of the yester years. They
demand instant, anytime and anywhere banking facilities. The main objectives of this paper
are-:
1. The main objective of this paper is to review the implementation of information
technology in the banking sector. 2.
IT has been providing solutions to banks to take care of their accounting and back office
requirements.
3.
IT also facilitates the introduction of new delivery channels--in the form of Automated Teller
Machines, Net Banking, and Mobile Banking to provide large services to customers. 4.
Taking the help of IT to meet the challenges posed by the new economy changes.

As discussed by Turner ( 2001) , progress in information technology has slashed the costs of
processing information, while the internet has facilitated it's transmission , thus facilitating
change is the very essence of the banking business . Around the world , electronic banking
services, whether delivered online or through other mechanism, have spread quickly in recent
years. It must be noted that the impact of e- banking is not limited to industrial and advance
emerging economies.

6
Even in countries with undeveloped banking system, e- banking has offered many new
business opportunities. The study founded that education would be crucial factor for
expanding internet banking. Internet banking is fast becoming popular in India. They found
six primary dimensions of e-banking service quality such as convenience and accuracy,
feedback and complaint management, efficiency , queue management , accessibility and
customization. It is acknowledged that the e- banking is an innovative distribution channel
that offers less waiting time and a higher spatial convince than traditional branch bank with
lower cost structure. It has not reduced the cost but also increased the customer satisfaction
and retention . As a result internet banking is very attractive to banks and customers .

In this study secondary data is used the source of secondary data are internet , articles,
research paper , apart from this SBI website is also used to provide insight into the services
provided by e- banking.

E- Banking in India

In India e- banking is of fairly recent origin. The traditional model for banking has been
through branch banking. Only in the early 1990s there has been start of non- branch banking
services. The good old manual systems on which Indian banking depended upon for the
centuries seem to have no place today to cope with the pressure of growing competition,
Indian commercial banks have adopted several initiatives and e-banking is one of them. The
competition has been especially tough for the public sector banks, as the newly established
private sector and foreign banks.
E-banking, or electronic banking, in India refers to the use of digital technology to conduct
banking activities and transactions. India has seen significant growth in e-banking due to
factors like increased internet penetration and government initiatives. E-banking services in
India typically include online banking, mobile banking, electronic fund transfers, and digital
payment methods. Popular e-banking platforms in India include internet banking portals
offered by various banks, mobile banking apps, and third-party payment systems like UPI
(Unified Payments Interface) and digital wallets. These services have made it easier for
people to manage their finances, make payments, and access banking services from the
convenience of their devices.

7
Usage of E-Banking in India:

As many as 7% of account holders in the country are using the internet for banking
transaction, while branch banking has fallen by a full 15%, according to a report use of the
internet for banking has seen a massive rise in the 2010-11 survey, taking the overall numbers
of bank consumer who use the net to close 7% of the total bank account holders and now this
percentage has been increased to 50-70%.
While the consumers say they want to consolidate their banking relationships, they continue
to shop around because banks are not delivering the products or services, such as frontline
services, that can lock them in. there is a tremendous growth in the number of online
transactions. This growth was caused due to reduction in the cost and size of the computer
and also due to the various services provided by the banks.

INFORMATION TECHNOLOGY CONSIDERATIONS

Since the early nineties, each Indian bank has done some IT improvement effort. The first and
foremost compulsion is the fierce competition. While deciding on the required architecture for
the IT consideration is given to following realities.
(1.) Meeting Internal Requirement: The requirements of the banks are different
individually depending upon their nature and volume of business focus on a particular
segment, spread of branches and a like. Many a times banks do have the required information

8
but it is scattered. The operating units seldom know the purpose of gathering the information
by their higher authorities.
(2.) Effective in Data Handling: As stated earlier the banks have most of the needed data
but are distributed. Further the cost of collection of data and putting the same to use is
prohibitively high. The accuracy and timeliness of data generation becomes the causalities in
the process. Best of the intentions on computerization are wished away because there is no
visible reduction in cost /efforts/time required for the required data gathering.
(3.) Extending Customer Services: Addressing to rising customers expectations is
significant particularly in the background of increased competition. In case bank A is unable
to provide the required service at a competitive price and in an accurate manner with speed.
There is always a bank IT at its next-door waiting to hire the customer. Awareness of
customers about the availability of services and their pricing as also available options have
brought into sharp focus the issue of customer satisfaction.
(4.) Creative Support for New Product Development: It has become necessary for the
banks to vitalize the process of product development. Marketing functionaries needs a lot of
information not only from the outside sources but also from within the banks. Banks are
looking to retail segment as the future market places for sales efforts. Having full-fledged
information of existing customer is the key for this purpose. The emergences of data
requirement and an appropriate architecture to support the same are significant issues to be
handled in this regard.
(5.) End-user Development of the Non-technical Staff: Banking being a service industry, it
is the staffs at counters that deliver the products. In Indian scenario, virtual banking is likely
to have a few more years to establish. The dependence on counter staff is unavoidable. The
staffs are large in number and the majority is non-technical. The customer satisfaction levels
at the counter determine the ultimate benefit of IT offensive. Giving due consideration to this
aspect in choosing architecture in necessary.

BENEFITS OF INFORMATION TECHNOLOGY

Information Technology enables sophisticated product development, better market

infrastructure, implementation of reliable techniques for control of risks and helps the
financial intermediaries to reach geographically distant and diversified markets. Internet has
significantly influenced delivery channels of the banks. Internet has emerged as an important
medium for delivery of banking products and services.

9
The customers can view the accounts; get account statements, transfer funds and purchase
drafts by just punching on few keys. The smart card's i.e., cards with microprocessor chip
have added new dimension to the scenario. Collection of Electricity bills and telephone bills
has become easy. No doubt banking services have undergone drastic changes and so also the
expectation of customers from the banks has increased greater.

MILESTONE
In India, banks as well as other financial entities entered the world of information technology
and with Indian Financial Net (INFINET). INFINET, a wide area satellite based network
(WAN) using VSAT (Very Small Aperture Terminals) technology, was jointly set up by the
Reserve Bank and Institute for Development and Research in Banking Technology (IDRBT)
in June 1999.

E-BANKING

E-banking made its debut in UK and USA 1920s. It becomes prominently popular during
1960, through electronic funds transfer and credit cards. The concept of web-based baking
came into existence in Europe and USA in the beginning of 1980. Only in the early 1990s has
there been a start in the non-branch banking services. Many banks have modernized their
services with the facilities of computer and electronic equipment's. The electronics revolution
has made it possible to provide ease and flexibility in banking operations to the benefit of the
customer. The e-banking has made the customer say good-bye to huge account registers and
large paper bank accounts. The e-banks, which may call as easy bank offers the following
services to its customers:

Credit Cards/Debit Cards

ATM

E- Cheque

DEMAT Accounts
Mobile Banking

EDI (Electronic Data Interchange)

10
1. Customer:
Anywhere Banking -no matter wherever the customer is in the world. Balance enquiry,
request for services, issuing instructions etc., from anywhere in the world is possible.
Anytime Banking - Managing funds in real time and most importantly, 24 hours a day,
7days a week.

Convenience acts as a tremendous psychological benefit all the time.

On-line purchase of goods and services including online payment for the same.

2. Bank:
Innovative, scheme, addresses competition and present the bank as technology driven in
the banking sector market

Reduces customer visits to the branch and thereby human intervention.

Inter-branch reconciliation is immediate thereby reducing chances of fraud and
misappropriation

11
 On-line banking is an effective medium of promotion of various schemes of the bank, a
marketing tool indeed.

Integrated customer data paves way for individualized and customized services

(1.) Internet:
Internet is a networking of computers. In this marketing message can be transferred and
received worldwide. The data can be sent and received in any part of the world. In no time,
internet facility can do many a job for us. It includes the following:

This net can work as electronic mailing system.

It can have access to the distant database, which may be a newspaper of foreign country.
We can exchange our ideas through Internet. We can make contact with anyone who is a
linked with internet.

(2.) Society for Worldwide Inter-bank Financial Telecommunications

(SWIFT):
SWIFT, as a co-operative society was formed in May 1973 with 239 participating banks from
15 countries with its headquarters at Brussels. It started functioning in May 1977. RBI and 27
other public sector banks as well as 8 foreign banks in India have obtained the membership of
the SWIFT. SWIFT provides have rapid, secure, reliable and cost effective mode of
transmitting the financial messages worldwide. SWIFT is a method of the sophisticated

12
message transmission of international repute. This is highly cost effective, reliable and safe
means of fund transfer.

(3.) Automated Teller Machine (ATM):

ATM is an electronic machine, which is operated by the customer himself to make deposits,
withdrawals and other financial transactions. ATM is a step in improvement in customer
service. ATM facility is available to the customer 24 hours a day. The customer is issued an
ATM card. This is a plastic card, which bears the customers name. This card is magnetically
coded and can be read by this machine. Each cardholder is provided with a secret personal
identification number (PIN). When the customer wants to use the card, he has to insert his
plastic card in the slot of the machine. After the card is a recognized by the machine, the
customer enters his personal identification number. After establishing the authentication of
the customers, the ATM follows the customer to enter the amount to be withdrawn by him.
After processing that transaction and finding sufficient balances in his account, the output slot
of ATM give the required cash to him. When the transaction is completed, the ATM ejects the
customers card.

(4.) Bank net:

Bank net is a first national level network in India, which was commissioned in February
1991. It is communication network established by RBI on the basis of recommendation of the
committee appointed by it under the chairmanship of the executive director T.N.A. Lyre.

13
Bank net has two phases: Bank net-I and Bank net- II. Areas of Operation and Application of
Bank net:
The message of banking transaction can be transferred in the form of codes from the city to
the other.

Quick settlement of transactions and advices.

Improvement in customer service-withdrawal of funds is possible from any member

branch.

Easy transfer of data and other statements to RBI.

(5.) Phone Banking:

Customers can now dial up the banks designed telephone number and he by dialing his ID
number will be able to get connectivity to banks designated computer. The software provided
in the machine interactive with the computer asking him to dial the code number of service
required by him and suitably answers him. By using Automatic voice recorder (AVR) for
simple queries and transactions and manned phone terminals for complicated queries and
transactions, the customer can actually do entire non-cash relating banking on telephone:
Anywhere, Anytime.

(6.) Tele-banking:
Tele banking is another innovation, which provided the facility of 24 hour banking to the
customer. Tele-banking is based on the voice processing facility available on bank computers.
The caller usually a customer calls the bank anytime and can enquire balance in his account
or other transaction history. In this system, the computers at bank are connected to a

14
telephone link with the help of a modem. Voice processing facility provided in the software.
This software identifies the voice of caller and provides him suitable reply. Some banks also
use telephonic answering machine but this is limited to some brief functions. This is only
telephone answering system and now Tele-banking. Tele banking is becoming popular since
queries at ATM‟s are now becoming too long.

(7.) Mobile Banking:

Mobile banking facility is an extension of internet banking. The bank is in association with
the cellular service providers offers this service. For this service, mobile phone should either
be SMS or WAP enabled. These facilities are available even to those customers with only
credit card accounts with the bank.

(8.) NRI Banking Services:

This technology has been embraced in countries like India, USA, UAE, just to mention but a
few. Since many people go abroad to work, they have a need of supporting their families. So
technology has made it simple for them to send money to their loved ones easily.

15
(9.) Any where Banking:

With expansion of technology, it is now possible to obtain financial details from the bank
from remote locations. Automated Teller Machines are playing an important role in providing
remote services to the customers. Withdrawals from other stations have been possible due to
interstation connectivity of ATM‟s. The Rangarajan committee had also suggested the
installation of ATM at non-branch locations, airports, hotels, Railway stations, Office
Computers, Remote Banking is being further extended to the customers office and home.

Services Provided by E- Banking :

1) Bills payment service.
2) Fund Transfer.

16
 3) Credit card customer.
4) Railway Ticketing.
5) Investing through Internet Banking.
6) Shopping.
7) Recharging phones.

Important Business Challenges:

Meet customer expectations on service and facility offered by the bank.

Customer retention.

Managing the spread and sustain the operating profit.

Retaining the current market share in the industry and the improving the same.

Competition from other players in the banking industry.

Important Operational Challenges:

Frequent challenges in technologies used focusing up grades in hardware and software,

attending to that implementation issues and timely roll out.

Managing technology, security and business risks.

Defined and implemented efficient processes to be able to reap benefits off technology to

its fullest potential.

Upgrading the skill of work force spread across the country.

Security Risks.

Lack of Training.

Financial Literacy / Customer Awareness.

17
E-Banking Services Provided By StateBank of India (SBI)

State Bank of India is India's largest bank with a network of over 15000 branches and 5
associate banks located even in the remotest parts of India. State Bank of India (SBI) offers a
wide range of banking products and services to corporate and retail customers.
Online SBI is the Internet banking portal for State Bank of India. The portal provides
anywhere, anytime, online access to accounts for State Bank's Retail and Corporate
customers. The application is developed using the latest cutting edge technology and tools.
The infrastructure supports unified, secure access to banking services for accounts in over
15,000 branches across India. various services are provided by the banks through online and
few of the features are given below:

18
Retail Internet Banking
The Retail Internet Banking offers a plethora of products and services, to cater to all your
banking demands online:

1) Transfer funds to own and third party accounts.

2) A suite of completely online deposit products (Fixed, Recurring, Flexi, Tax Saving etc.)

3) Airline, Rail, Bus and hotel ticket booking.

4) Online Shopping and instant recharge features.

5) IMPS Funds Transfer.

6) Western Union Service.

7) Credit beneficiary accounts using RTGS/NEFT feature.

8) Generate account statements.

9) Setup Standing Instructions and Scheduling payments.

10) Configure profile settings.

11) E- Tax for online tax payment.

12) E - Pay for automatic bill payments.

13) Avail DEMAT and IPO services.

14) Pay bill of Visa Credit Card issued by any Banks.

15) Open Fixed Deposit

16) Other Value added Services.

17) Keeping Account Information.

19
1) E-Banking Services Used By Respondents:

20
2) Preference of E-Banking Services :

3) Risk Related to Internet Banking :

4) Satisfaction Measurement:

21
5) Improvement in the Quality Services Offered By the Banks:

Indian public sector banks that hold around 75 % of market share do have taken initiative in
the field of IT. Awareness and appreciation of IT are very much there. What is needed is a
„big push‟ the way it was given in the post nationalization period for expansionary activities.
Information technology offers enormous potential and emancipated various opportunities to

22
then banking sector. It provides cost-effective, rapid and systematic provision of services to
the customers. Applications of IT in banks enables sophisticated product development,
reliable techniques for risk management, brings transparency to the system and helps banking
sector reach geographically distant and diversified markets. IT and communication
networking system have crucial impact on money, capital and foreign exchange market.
Banks should have a clear strategy driven from the top and should ensure proper management
of risks involved in internet banking through adopting effective polices, procedures, and
controlling measures. Policy makers and supervisors must continuously assess the existing
framework and should introduce required modification in it.

1. Hassan Ghaziri ,“Information technology in the banking sector : opportunities, threats and
strategies”, Graduate School of Business and Management, American University of Beirut,
1998.
2. Prof. M.C. Sharma, Abhinav Sharma, “Role of Information Technology in Indian Banking
Sector”, International Journal in Multidisciplinary and Academic Research (SSIJMAR)
Vol. 2, No. 1, January-February (ISSN 2278 – 5973).
3. Prof.N.M.Nair “Role of Information Technology in Banking Sector in India “, IBMRD's
Journal of Management and Research, Print ISSN: 2277-7830, Online ISSN: 2348-5922
Volume-3, Issue-1, March 2014
4. Radheshyam Acholiya, Varun Keshari “Benefits of IT in Banking Sector”, Pioneer Journal,
2017.
5. Nishi Sharma,” Applications of IT in banking sector”, International Journal of Information
Dissemination and Technology , April - June 2011 , Vol. - 1 , Issue – 2.

6. https://www.onlinesbi.sbi.

23
CONTRIBUTION OF
BANKS IN
EMPOWERING
WOMEN

24
ABSTRACT

The aim of the paper is to discuss the role of banks and steps taken by them towards women
financial empowerment Women in India have always been subjected to disparity in the socio-
economic status precisely expressed in terms of privilege, power and control, microfinance
works with women empowerment as one of its mission and is considered as a means to
upgrade the status of women. Microfinance has been widely accepted as a medium to
eliminate poverty and socio-economic development of it’s representatives. These
representatives are largely women, the empowerment of women through microfinance is a
well studied and debatable topic. Microfinance is necessary to overcome exploitation, create
confidence for economic self reliance of the rural poor, particularly among rural women.
Although it is not a ‘magic bullet’, it is potentially a very significant contribution to gender
equality and women's empowerment. Through their contribution to women’s ability to earn
an income, it has potential to initiate a series of ‘virtuous spirals’ of economic empowerment,
and wider social and political engagement. The paper attempts to assess how microfinance
has received tremendous validity as a strategy for economic empowerment of women. An
effort is also made to suggest the ways to boost women empowerment.

25
INTRODUCTION

For sustainable development, gender equality is crucial. Gender equality does not mean that
men and women are equal but ensuring equal access to opportunities, resources and rewards
for all, irrespective of their gender. Gender equality focuses more on women empowerment
because of women social and historical disadvantageous position since times immemorial. As
women constitute half of our population, progress of society and economy is closely
associated with women development. Indian women have a share of their struggles from
moving from being dependent on their male counterparts to being independent, socially and
financially. Their development is essential for the development of the economy and the
country. This development needs to spread in every nook and corner of the country. Banking
sector by introducing women-oriented schemes are contributing towards the development and
thus playing a significant role in women empowerment. Microfinance Institutions (MFIs) are
financial institutions that offer financial and non-financial products and services to the poor
active that would otherwise not have access to the services from the formal financial
institutions. Across the world and especially among the developing nations, there is a general
consensus that Microfinance and microcredit have the potential to alleviate poverty and is
linked to socio-economic empowerment of its beneficiaries. Several studies have shown that
access to microfinance contributes to poverty reduction both at the rural and urban level and
it also contributes to the empowerment of its women participants. However this potential of
microfinance is also surfaced with a lot of challenges. There are a lot of inhibiting factors in
and around the representatives which reduce the socio-economic empowerment. This paper
intends to discuss the initiatives taken by banks for financial inclusion and empowerment of
women in India.

26
OBJECTIVES
1. To know about the problems faced by working women various Banks.
2. To study women’s involvement in different activities for upliftment of family, community
and society for their overall development.

3. To find out the different schemes providing by public sector banks.

4. To find out the possible solutions to overcome the problems faced by women in workplace.
5. To give suitable suggestions for improving women participation in banking sectors.

6.To explore the Role of Women in Indian Economy.

7. To assess the Role of Microfinance for Women Empowerment.

8. To encourage the opportunity for entrepreneurship and self sufficiency

9. To offer suggestion for betterment of women’s empowerment through microfinance.

Methodology

The study is mainly descriptive in nature. Secondary data are used for the purpose of the
study. Secondary data was collected from websites, various articles and journals. The scope
of the study includes research articles published in peer reviewed journals.

Literature Review

Economic Empowerment and Social Empowerment: The concept Economic empowerment is

thought to allow poor people to think beyond immediate daily survival and to exercise greater
control over both their resources and life choices. There is also some evidence that economic
empowerment can strengthen vulnerable groups’ participation in the decision-making. The
literature on economic empowerment is vast, and a large part of this focuses on the economic
empowerment of women – a key strategy in addressing gender inequality. More generally, the
discourse on economic empowerment centres around four broad areas: a) the promotion of
the assets of poor people; b) transformative forms of social protection; c) microfinance; and
d) skills training , where as social empowerment is understood as the process of developing a
sense of autonomy and self-confidence, and acting individually and collectively to change
social relationships and the institutions and discourses that exclude poor people and keep
them in poverty.

27
Concept of Empowerment

What do we mean by empowerment?

the freedom to lead different types of life is reflected in the person’s capability set. The
capability of a person depends on a variety of factors, including personal characteristics and
social arrangements. However, the full accounting of individual freedom goes beyond the
capabilities of personal living. for measurement purposes one should focus on certain
universally-valued functioning, which relate to the basic fundamentals of survival and
wellbeing regardless of context. Taking the example of universally valued functioning like
proper nourishment, good health and shelter, Sen asserts that if there are systematic gender
differences in these very basic functioning achievements, they can be taken as an evidence of
inequalities in underlying capabilities rather than differences in preferences. Empowerment
can range from personal empowerment that can exist within the existing social order. Thus
this kind of empowerment would correspond to the right to make one’s own choices, to
increased autonomy and to control over economic resources. Empowerment signifies
increased participation in decision-making and it is this process through which people feel
themselves to be capable of making decisions and the right to do so.

The World Bank defines empowerment as

“the process of increasing the capacity of individuals or groups to make choices and to
transform those choices into desired actions and outcomes.’’

Microfinance and Women Empowerment

Micro-finance programmes not only give women and men access to savings and credit, but
reach millions of people worldwide bringing them together regularly in organised groups.
Although no ‘magic bullet’, they are potentially a very significant contribution to gender
equality and women's empowerment, as well as pro-poor development and civil society
strengthening. Through their contribution to women’s ability to earn an income these
programmes have potential to initiate a series of ‘virtuous spirals’ of economic
empowerment, increased well-being for women and their families and wider social and
political empowerment. Micro finance services and groups involving men also have potential
to question and significantly change men's attitude and behaviour as an essential component
of achieving gender equality.
Majority of microfinance programmes focus women with a view to empower them. There are
varying underlying motivations for pursuing women empowerment. Some argue that women

28
are amongst the poorest and the most vulnerable of the underprivileged and thus helping them
should be a priority. A more feminist point of view stresses that an increased access to
financial services represent an opening/opportunity for greater empowerment. Such
organizations explicitly perceive microfinance as a tool in the fight for the women’s rights
and independence. Finally, keeping up with the objective of financial viability, an increasing
number of microfinance institutions prefer women members as they believe that they are
better and more reliable borrowers.

The Microfinance impact on women

Empowerment: positive and negative evidence from India

It has shown a definite economic impact on households, with increase in income and decline
in vulnerability. It further reveals a significant impact on SHG(Self Help Group) households
in terms of control, management ability, self-confidence, change in behaviour and
decisionmaking. Apart from social empowerment, the SHG households also demonstrated
greater awareness and participation in local politics. However, the impact is not reflected in
certain be true evidence of women’s empowerment. For instance, no significant changes are
observed in the decision-making power of women in the field of adopting family planning
measures or buying and selling of land. the impact of participation in microfinance, in 3 states
Orissa, Jharkhand and Chhattisgarh of India. The study concluded that there is a positive
impact of self-help group-based microfinance intervention in the income, assets position,
savings, employment, literacy, consumption and migration reduction. The highest impact was
found for household savings, followed by literacy position, migration reduction, employment
days, and expenditure on household consumables, expenditure on education, assets position,
income and expenditure on food. The migration was reduced due to higher employment

29
demands from the group-initiated micro-enterprises. The employment days was increased due
to the employment demand from the micro-enterprises and increased employability of family
members. On the other side, revealed that the SHGs have greater impact on both economic
and social aspects of the beneficiaries. The study showed that the main reason for joining
SHG was not to merely get credit, but it was an empowerment process. After joining SHG the
women were economically and socially empowered. also shown that many elements
contribute to difficulty for women empowerment through economic activities. Though
women make groups, they have poor decision making capacity for their self-development. It
was evident from the study that most of the SHG women have been involved only in the
micro credit savings. Their active participation in economic activities was very much limited
due to the lack of adequate approach by the NGOs (Non Government Organizations).
The results of their study highlight positive correlation between the
variables indicating improvement in literacy and awareness for children education reduction
in poverty level, resulting in improvement in standard of living. It has been found that mean
salary after joining SHG is significantly higher and that microfinance has made a very good
impact on the age group of 20-30. It was found to be better in socio economic aspects than
their counterparts in SHGs under SGSY, as they received larger loan amounts and borrowed
higher amount of loan for farm purposes. The result showed that after joining SHGs the
decision making power/ability of women members regarding the access to credit, asset
building, and income and money expenditure was increased than before. Their participation
in political and social activities also increased. Maximum proportion of women members
participating in Panchayati Raj Institution was under SGSY model whereas the participation
of women members was higher in academic and technical work under NABARD model II
and III.

SCHEMES LAUNCHED BY DIFFERENT BANKS FOR WOMEN

EMPOWERMENT

Women of India are progressing towards achieving financial independence due to the
initiatives taken by Govt. through various financial programs. Banks as part of these
programs, facilitate women by providing personalised banking services which are designed
specially according to their needs and preferences. Jan Dhan Yojana is an initiative towards
financial inclusion which also paves way for women financial empowerment. In November
2013, the Government of India took a huge step by opening solely for women bank in public
sector. With opening of The Bhartiya Mahila Bank (BMB): a new era has begin in service
sector the main purpose of BMB is to improve the financial. Few of the banks initiatives are
enlisted below:

1. Reserve Bank of India (RBI) asked all commercial and Co-operative banks to provide
loans to women self-help groups (SHGs) in rural areas at 7 percent per annum under

30
 Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (NRLM) in 250
districts in 2016-17.

2. Special Home Loan Schemes for Women- Banks offer concessional home loan interest
rate to women as compared to men by 0.05%. SBI has its „Her Ghar‟, HDFC has its
„Women Power‟ schemes and ICICI also offer concessional home loan interest rates.

3. Cent Kalyani scheme- Central Bank of India offer this scheme to both prevailing and new
entrepreneurs and self-employed women for micro/small enterprises like agriculture,
handicrafts, food-processing, garment making, beauty, canteen, mobile restaurants, day
creches, STD/Xerox booths, tailoring etc. Under this scheme, loans up to ₹1 crore are
approved for women entrepreneurs with a margin rate of 20 per cent. No collateral
security or guarantors is required for availing this loan. Market rate of interest is applied.
This loan can be provided for a maximum of seven years.

31
4. Oriented Mahila Vikas Yojana- To meet credit needs of women entrepreneur, need based
loan is provided. No collateral security is required up to Rs.10 lakhs and in case of SSI,
no collateral security is required up to Rs.25 lakhs of loan, only hypothecation of assets
created out of banks finance be taken as security

5. SBI Stree Shakti Scheme- For women entrepreneurs in Retail trade, Business enterprises,
Professionals and self-employed, small scale units or tiny units where the women
entrepreneurs stake is more than 51%, Term Loan & Working Capital facility is available
with concessionary margins and interest rates.

32
6. BOI Star Mahila SB Account- This account is for women in the age group of 18 years and
above. No daily minimum balance requirement.

7. Mahila Udyam Nidhi Scheme- Punjab National Bank and Small Industries Development
Bank of India (SIDBI) offer this scheme to assist women entrepreneurs to set up a new
smallscale venture. Laon can be provided for a maximum of ₹10 lakh to be repaid in 10
years. The interest depends upon the market rates. SIDBI offers various plans for beauty
parlours, day care centres, purchase of auto rickshaws, two-wheelers, cars, etc. as per the
requirement of women bank customers. It also helps in upgrading and modernisation of
existing projects.

33
8. Annapurna scheme - To make women self-suffient in business of food, the Government of
India offers loans up to ₹50,000. The State Bank of Mysore currently offers this scheme.
The loaned amount could be used for working capital requirements such as buying
utensils, cutlery, gas connection, refrigerator, mixer cum grinder, hot case, utensil stand,
tiffin boxes, working table, water filter etc. for this scheme, a guarantor is required and
the assets of the business have to be mortgaged as collateral security. The interest rate is
determined by the market forces.

9. Allahabad Bank- All Bank Mahila Sanchay SB Account- This account is exclusively for
women and can be opened & maintained at Rs.0/- balance. Demand Drafts/Bankers
Cheques etc. for educational purposes of the wards of the account holders up to
Rs.1,000/- are provided free of charges.

34
10. DHFL-Swayamsiddha: It is a Fixed Deposit scheme specially designed for women,
provides with a higher rate of interest up to 7.85% for a period of 18 months. An
additional rate of 0.25% can be availed by privileged* women customers under this
scheme.

11. Dena Shakti Scheme- It provides loans up to ₹20 lakh for women entrepreneurs to
support them in doing agriculture, manufacturing, micro-credit, retail stores, or small
enterprises. Loans up to ₹50,000 are offered under the microcredit category. It also
provides a concession of 0.25 percent on rate of interest.

35
12. 'Syndicate Mahila Shakti'- An initiative of syndicate bank in which bank is extending
finance up to Rs 5 Crore per woman beneficiaries at concessional interest rates. Rate of
interest for loans up to Rs 10 lakh is at the base rate of 10.25 per cent, while for loans
exceeding Rs 10 lakh, a concession of 0.25 per cent is being provided on applicable
interest rate.

13. PUNJAB NATIONAL BANK (Schemes Name):

a. PNB Mahila Udyam Nidhi Scheme: This scheme offers in which management is done
by women industry will be at small scale micro level.
b. PNB Mahila Samaridhi Yojna: This scheme provides financial help for business
investment like tailoring shops, boutiques, telecom agencies, beauty parlours and internet
browsing centres.
c. Scheme for financing crèches: It provides finance equipment for purchasing crèches
development, aids in purchase of stationary, fridge and water purifier etc.
d. PNB Kalyani Scheme: This scheme provides offers for working capital credit for
improving agricultural activities/ Misk Farm / Non-farm activities to both literate and
illiterate women. Developing in rural or semi urban areas.
e. PNB Mahila Sashaktikaran Abhiyan: Under this scheme low rate of interest of 2.5%
in nonpriority sectors and 0.5% in priority sectors and fee waiver of 50% for women.

36
14. Bank of Barodas Akshaya Mahila Arthik Sahay Yojna- This scheme provides financial
assistance to women in setting up/engaged in retail trade, village or cottage/small scale
industries and allied agricultural activities in which interest rate is fixed on the credit rating
system at reasonable terms. Apart from these, there are number of banking schemes operating
in India to empower women. Women financial empowerment does not remain a distinct
dream, due to enormous efforts made by the banking sector of India. But still we have to
walk a long path before we reach destination of gender equality.

15. ANDHRA BANK - Mutual Credit Guarantee Scheme for Women provides credit
facilities to women up to Rs 1 Lakh without collateral security.

16. SIDBI- Marketing Fund for Women provides financial assistance for marketing of
products manufactured by women.

37
17. KARUR VASYA BANK- KVB Mahila Swarna Loan provides loan to working
women for the purchase of ornaments. The loan is offered at concessional rates.

18. BANK OF INDIA- Star Mahila Gold Loan Scheme: It provide loan facilities to both
working / non-working women for purchase of ornaments, hallmarked, from reputed
Jewellers.

38
DIFFERENT WAYS TO EMPOWER WOMEN THROUGH
BANKING BANK ACCOUNT

World Bank states that giving power to women through financial report women save, allocate
and invest money to be protected against uncertain circumstances and in their children
education as compare to men and giving them an opportunity for a better living and to make
their next generation better. If women access a bank account, their natural tendencies to save
or they can save more and earns good interest and can use that saving into productive
financial activity. They also get the decision making power on that money to use it in
productive works.

1. FINANCIAL ASSISTANCE
Now days to entrepreneurial skills, women today are successfully managing both small and
big business and also they get helps from banks. Many banks support micro, small and
medium size enterprises specially organised by women. There are women special home loans
and car loans with lower rate of interest. Women are now becoming financial product
consumers, decision makers, key influential and drivers of change.. they have to work
together effecientially and seen less.

2. PRIORITY BANKING
A bank run by women for women is a concept when all the powers are given to women to
increase women empowerment. Mahila Banks are set up in some parts of India when a
Entrepreneurship and Economic Development of India local woman run the bank and offers
benefits to local women. This is an innovative type of approach to encourage women. The
banks provided easy collateral free loans as well as insurance and pension policies to women
that help them to be financially independent and pursue entrepreneur’s dreams.

39
 3. SELF HELP GROUPS
Woman bargaining power in society increases with access to financial services. SELF Help
groups increases it multifolds by bringing several women together to achieve economic
independence. Bank to offer financial assistance to self help group. The report submitted by
National Institute of Technology Durga Pal suggested micro finance is emerging as a
powerful instrument to minimise poverty in new economy. In India, micro fiancé scene is
dominated by self Help Group. Role of Micro finance institution towards empowerment of
women Dev Verma Cheif Operating officer said for more than 25 years, (Satin Credit Care.
Pvt Ltd.) has been helping women by providing them micro loans to working self
empowering projects that allows them to generate income and household earning. World
Bank reports that women account ownership as increased by 30% between 2014 to 2017,
29% of women in India are using digital payment. This rise is rewarded by Pradhan Mantri
Jan Dhan Yojna.

4. TRAINING
Many banks has organised special training programmes for their women consumers who have
started their won business. This training helps them to get knowledge of different aspects of
trade and commerce. PAYTM Payment banks have launched an initiative that helps to
empower women in India’s smaller towns and cities.

40
 5. EMPLOYMENT
Banks given employment opportunities to women and we can also see various women bank
employees in urban and semi-urban areas now a days. Growth in women education and their
financial statements will help in growth of women employees in rural areas too. Puneet Kohli
Group Chief Technology officers Manappuram Finance who recently joined NBFC said,” I
believe NBFC sector is empowering the women, see if I am here, that a testimony of the fact
that prove your worth and make your own mark in the sector.”

6. Educational Loans:
An educated woman is a possibly the best way to ensure that the next generation is also
educated. Education helps women to practice the trade of their choice. Many banks offer
educational assistance schemes for women at concessional terms and lower interest rates.
Education helps in a big way in women empowerment.

41
GOVERNMENT POLICIES AND SCHEMES RELATING TO
WOMEN EMPOWERMENT.

In the year 2001 the government of India launched national policy for empowerment of
women.
1. Creation of an environment through positive economic and social policies for full
employment of women.
2. Creation of an environment for enjoyment of all human rights and freedom by women on
equal basis with men in every sector.

3. Providing equal excess to participation and decision making to women.

4. Providing equal excess to health care, quality education, career employment, equal
remuneration etc.
5. Changing society attitudes community practices by active participation of both women and
men.

6. Main streaming gender equality in the development process.

7. Elimination of discrimination against women.

8. Building and strengthening partnership with civil society, particularly with women’s
organization.

42
PROMOTIONAL SCHEMES FOR DEVELOPING WOMEN
EMPOWERMENT:-

1. Mahila Nidhi

2. Mahila Vikas Nidhi

3. Priyadarshini Yojna

4. Trade related entrepreneurship assistance and development (TEAD)

5. Special programs conducted by Small Industries Development Organisation

6. Special programs conducted by Small Industries Development Organisation

7. The Consortium of Women Entrepreneurs of India

8. Self Help Group

9. Women India Trust.

10. Federation of Women Entrepreneurs

11. Income generating Schemes by Department of Women and Child Development

12. Women Cell

13. District Industrial Centres

14. Women Industries Fund Schemes.

43
CHALLENGES:

1. Economic Backwardness: Women constitute only 29% of work force but forms
majority in the country. There has been a failure in transforming the available
women into women resources.
2. Political Will: Women should have resources and rights. They should be given
decision making powers and good position in governance. Thus, the women
reservation bill should be passes as soon as possible.
3. Education: According to world bank, the gap between men and women is serve
82.14% of adult men are educated and only 65.46% of women are known to be
literate in India. The gender biasness is higher in education.
4. Poverty: Poverty considers the greatest threat in the world and removal of poverty
should be national goal as important as removal of illiteracy.
5. Perspectives: The most wide spread discrimination against women are on the basis
of biased perspective. The discrimination against the girl child begins from the
birth. Boys are preferred over girls. Hence, female infanticide is common practise
in India.
6. Loop holes in legal structure: There are number of laws to protect women against
all type of violence. Yet there has been the increase in acid attacks, extortion,
rapes etc. this is due to delay in legal procedures and presence of several loopholes
in the system.
7. Profession in Equality: This is practice in employment promotions women faces
countless handicaps in male dominating environment in government and private
offices.
8. Health and safety: The Health and safety of women are an important factor in
empowering women in a country.
9. Mortality and inequality: Due to gender bias, there is unusual high mortality rate
in women reducing their population especially in Odisha, Rajasthan, Uttarakhand
and etc.

44
STRATEGIES TO OVERCOME FROM THE PROBLEMS

1. Infrastructural facilities such as Day Care Centres.

2. Special leave during the services for up to 5months to meet certain contingencies to
women extending this facility to men also.

3. Provision for hours and part time employment in suitable cases.

4. The other problem is the promotion system in banking sectors, there should be pure and
transparent system organised either by government or State Banks.

5. More health care facilities should be provided.

In India, loan rejection rates for women owned small and medium scale enterprises were
almost double than those owned by men which is much higher than other countries. To
include women in to the ambit of financial services there is need to provide specially
designed products and services for women customers. To make them more aware, there is
need to spread. financial literacy among them. For this purpose, seminars and conferences for
women to train them in finances can be organized which can help them to acquire knowledge
of financial instruments and institutions.

Limitations of the Study

Lack of primary data

Time consuming.

As the research mainly depends on secondary data, it may not be hundred percent accurate.

45
 The study is limited to India only.

CONCLUSION

Efficiency and accessibility of credit delivery mechanism of formal financial institutions can
do wonders for women financial empowerment. Financial literacy can also help women to
handle their finances better. It can direct them towards progress and development by
channelizing their energies and efforts into productive purposes, thus creating gender equality
and accelerating the speed of development of the Indian economy. Thereupon, it can be
concluded from the above study that microfinance is playing a dynamic role in the social,
psychological as well as economic empowerment of women in India. The academic literature
reviewed in this paper highlights that there is definitely an applauding impact of microfinance
on empowering women in India. It is more apparent on the socio economic variable of
empowerment. The applauding influence has been identified in economic variables such as
income, savings, employment days, household consumables, assets and the expenditures of
the households. The social variables which showed a positive impact were decision making
power, knowledge and self-worthiness, self confidence, self-esteem and self- worthiness.
Microfinance is accepted as a predominant solution for attaining and maintaining the
sustained and long term economic growth all over the globe. On the other hand, education
level of women has surfaced as the important predictor for all aspects of empowerment. Some
studies also emphasize that women gain higher share in subjects which are directly related to
the loan use, but they are not able to manifest this into more significant subjects of decision
making at household level. Certain agents which are acting as hinderance for women
empowerment have also been highlighted like: lack of institutional support for self
employment of women members; conventional values, superstitions and socio-cultural factors
which demote the empowerment impact. Despite it’s bottlenecks, microfinance has the
maximum potential to uplift the poorest sections of society and playing the substantial role in
empowering the women in India. In the backdrop of above reviewed literature, it can be seen
that the adoption of mobile banking services in India is just 2%. So it becomes important for
the service providers to increase the rate of adoption of mobile banking users. Through the
literature review some important points have been highlighted.

REFERENCES:

1. “RBI constitutes committee on financial inclusion”, Business Standard, July 16, 2015.

2. https://www.allahabadbank.in/english/Mahila_Sanchay.aspx

46
3. https://www.obcindia.co.in/obcnew/site/inner.aspx?status=3&menu_id=90

4. https://www.pnbindia.in/schemes-for-women.html

5. https://rbi.org.in/

6. https://www.sbi.co.in/portal/web/home/stree-shakti-package

7. https://www.syndicatebank.in/downloads/SyndMahilaShakthi.pdf

8. www.bankofbaroda.co.in › Business › Loans & Advances

9. www.bankofindia.co.in/english/BOI_Star_Mahila_SB_Account.aspx

10. www.dhfl.com/deposits/swayamsidha-fixed-deposit-for-women/

47
COMPARATIVE
STUDY

48
 AND

In the current scenario in June, 2020 if we think about the two largest of banks of India one
from the private segment and other from the public sector segment, there is no doubt about it
being HDFC Bank from the Private sector and SBI from the Public sector looking at their
balance sheet, reach and customer base. The study will assist in contrasting the public and
private sectors in addition to SBI and HDFC.
In the private banking space HDFC Bank is one of bank large bank having more than 5,000
branches across the country and most commercially successful bank with net profit 21078
crores being the highest across the banking industry with lowest Gross NPAs below 2% for
the FY 2018-19. At the same time if we look at the SBI which is most prominent public sector
bank in the public sector space and oldest bank of India with more than 200 years background
doing better as compare to its peer public sector banks but not as good as it’s private sector
peers in different parameters like profitability, NPAs management, annual growth and key
parameter management. However bank has managed to post the net profit of 862.23 crores
in the fiscal 2018-19.

49
The State Bank of India (SBI Bank) is the biggest bank in India currently. It is a public sector
bank, multinational in nature and is a financial services company. With a market share of 23%
when it comes to assets, it also has a one-fourth share of the deposits and total loans market.
The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2January 1809). A
unique institution, it was the first joint-stock bank of British India sponsored by the
Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence either as a
result of the compulsions of imperial finance or by the felt needs of local European commerce
and were not imposed from outside in an arbitrary manner to modernize India's economy.
Their evolution was, however, shaped by idea sculled from similar developments in Europe
and England, and was influenced by change scoring in the structure of both the local trading
environment and those in the relations of the Indian economy to the economy of Europe and
the global economic framework.

The eight banking subsidiaries are:

1-State Bank of Bikaner and Jaipur (SBBJ)

2-State Bank of Hyderabad (SBH)

3-State Bank of India (SBI)

4-State Bank of Indore (SBIR)

5-State Bank of Mysore (SBM)

6-State Bank of Patiala (SBP)

7-State Bank of Saurashtra (SBS)

8-State Bank of Travancore (SBT)

50
STRENGTHS:

1. Brand Name: SBI Bank has earned a reputation in the market over the period of time
(Being the oldest bank in India tracing history back to 1806)
2. Market Leader: SBI is ranked at 380 in 2008 Fortune Global 500 list, and ranked 219 in
2008 Forbes Global 2000. With an asset base of $126 billion and its reach, it is a regional
banking behemoth.
3. Wide Distribution Network : Excellent penetration in the country with more than 10000
core branches and more than 5100 branches of associate banks(subsidiaries).
4. Diversified Portfolio: SBI Bank has all the products under its belt, which help it to extend
the relationship with existing customer. SBI Bank has umbrella of products to offer their
customers, if once customer has relationship with the bank. Some Products, which SBI
Bank is offering are: Retail Banking Business Banking Merchant Establishment Services
(EDC Machine) Personal loans & Car loans Insurance Housing Loans Government
Owned: Government owns 60% stake in SBI. This gives SBI an edge over private banks in
terms of customer security.

5. Low Transition Costs-SBI offers very low transition costs which attracts small customers.

WEAKNESSES:

1. The existing hierarchical management structure of the bank, although strength in some
respects, is a barrier to change.

51
2.Though SBI cards are the 2nd largest player in the credit card industry, it hasthe highest no
performing assets (NPAs) in the industry, which stand out to be at16.28 % (Dec 2007).
3.Modernisation: SBI lags with respect to private players in terms of modernisation of its
processes, infrastructure, centralisation, etc.

OPPORTUNITIES:

1. Merger of associate banks with SBI: Merger of all the associate banks (like SBH,
SBM, etc) into SBI will create a mega bank which streamlines operations and unlocks
value.
2. Planning to add 2000 branches and 3000 ATMs in 2008-2009. This will further
increase its reach.
3. Increasing trade and business relations and a large number of expatriate populations
offers a great opportunity to expand on foreign soil.

THREATS

1. Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian
market due to the friendly policies adopted by the government. This can increase the level of
competition and prove a potential threat for the market share of SBI bank.
2. Consumer expectations have increased many folds in last few years and the bank has
not been responsive enough to meet them on time.
3. Private Banks have started venturing into the rural and semi-urban sector, which used
to be the bastion of the State Bank.
4. Employee Strike: There was an employee strike in the year 2006 which disrupted
SBI’s activities. This can be repeated in the future.

52
Housing Development Finance Corporation Limited (HDFC) was an Indian private sector
mortgage lender based in Mumbai. HDFC Bank began operations in 1995 with a simple
mission: to be a "World-class Indian Bank". They realized that only a single-minded focus on
product quality and service excellence would help them to get there. HDFC Bank, one
amongst the firsts of the new generation, tech-savvy commercial banks of India, was set up in
august 1995 after the Reserve Bank of India allowed setting up of Banks in the private sector.
The Bank was promoted by the Housing Development Finance Corporation Limited, a
premier housing finance company (set up in 1977) of India. Net Profit for the year ended
March 31, 2006was up 30.8% to Rs 870.8 cores. Currently (2007), HDFC Bank has 583
branches located in 263 cities of India, and all branches of the bank are linked on an online
real-time basis. The bank offers many innovative products & services to individuals,
corporate, trusts, governments, partnerships, financial institutions, mutual funds, insurance
companies. Bank also has over 1471 ATMs. In the next few months the number of branches
and ATMs should go up substantially. 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 January1995.HDFC Bank's
mission is to be a World-Class Indian Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business

53
philosophy is based on four core values Operational Excellence, Customer Focus, Product
Leadership and People.

SWOT ANALYSIS
STRENGTHS: -
1.Right strategy for the right products.

2.Superior customer service vs. competitors.

3.Great Brand Image.

4.Products have required accreditation.

5.High degree of customer satisfaction.

6.Good place to work.

7.Lower response time with efficient and effective service.

8.Dedicated workforce aiming at making a long-term career in the field.

WEAKNESS :–

1.Some gaps in range for certain sectors.

2.Customer service staff needs training.

3.Processes and systems, etc.

4.Management cover insufficient.

5.Sector growth is constrained by low unemployment levels and competition for staff.

54
OPPORTUNITIES:
1.Profit margins will be good.

2.Could extend to overseas broadly.

3.New specialist applications.

4.Could seek better customer deals.

5.Fast-track career development opportunities on an industry-wide basis.

6.An applied research centre to create opportunities for developing techniques to provide
added-value services.

THREATS: -
1.Legislation could impact.

2.Great risk involved.

3.Very high competition prevailing in the industry.

4.Vulnerable to reactive attack by major competitors.

5.Lack of infrastructure in rural areas could constrain investment.

6.High volume/low cost market is intensely competitive.

55
OCCUPATIONAL STATUS
OCCUPATION SBI RESPONDENTS HDFC RESPONDENTS
Student 20 13
Business 21 28
House Wife 12 9
Employee 18 24
Others 4 5

30
25
20
15
10
5
0
STUDENT BUSINESS HOUSE WIFE EMPLOYEE OTHERS

SBI HDFC

56
INTERPRETATION:
According to this survey, when compare to the occupational status of SBI and HDFC bank
customers, in SBI bank the majority 28% of the customers are doing business but in HDFC
bank the majority 37% of the customers are doing business.

ACCOUNT FACILITIES PROVIDED BY THE BANK

TYPESOF A/C SBI HDFC
SALARY A/C 10 8
SAVING A/C 23 26
CURRENT A/C 30 28
LOAN 12 13

30
25
20
15
10
5
0
SALARY A/C SAVING A/C CURRENT A/C LOAN

SBI HDFC Column1

INTERPRETATION:
According to this survey, when compare to the type of A/C operating with SBI and HDFC
bank by the customers, in SBI bank the majority 40% of the customers are operating with
Current A/C but in HDFC bank the more 37% of the customers are Current A/C holders.

DIFFICULTIES FACED BY THE CUSTOMERS

SERVICES SBI HDFC
TIMELINESS 17 13
CUSTOMER 23 19
RELATIONSHIP
NET BANKING 16 12

57
 INTEREST 13 23

SBI HDFC Column1

23 23

19
17
16
13 13
12

TIMELINESS CUSTOMER NET BANKING INTEREST

RELATIONSHIP

INTERPRETATION:
According to this survey, when compare to the difficulties faced by the customers of SBI and
HDFC bank, in SBI bank the majority 31% of the customers said customers relationship but
in HDFC bank the majority 31% of the customers said interest package.

IMPORTANT REASON CHOOSING THE BANK

FACILITIES SBI HDFC
BRAND NAME 27 35
EXCELLENCE SERVICE 35 32
TRADITIONAL BANKA/C 10 3
OTHERS 3 5

58
 35

30

25

20

15

10

0
BRAND NAME OF EXCELLENCE TRADITIONAL BANK OTHERS
THE BANK SERVICE A/C

SBI HDFC Column1

INTERPRETATION:
According to this survey, when compare to the most important reason to prefer SBI and
HDFC bank by customers, in SBI bank the majority 47% of the customers said excellence
service of the bank but in HDFC bank the majority 52% of the customers said brand name of
the bank.

Comparison regarding the overall satisfaction of the customers

SATISFACTION SBI HDFC
EXCELLENT 8 7
GOOD 6 12
SATISFACTORY 18 8
AVERAGE 3 5
BELOW AVERAGE 0 3

59
 SBI HDFC Series 3

20
18
16
14
12
10
8
6
4
2
0
EXCELLENT GOOD SATISFACTORY AVERAGE BELOW
AVERAGE

1) BoththecustomersfromSBIandHDFCbankhavesuggestedthatthebankshouldopenoneof its
branch in industrial area like focal point.
2) Oneofthemostcommonsuggestionwastolowerdowntheminimumbalancerequired in the
saving s account.

3) Staff should be more co-operative to the customers.

4) Customerswerenotfullyawareoftheservicesandthevariouschargeswhichthey have to pay.
Therefore Banks should try to give some more information to its existing customers.

In India, the banking industry has helped the growth of the economy. Banking services are
developing concept in India and across the world. Nowadays, the customers are using the
banking services for deposits, money transfers, bill payments and other business transactions.
It bridges the gap between the depositors and borrowers with more customer satisfaction,
more awareness, and service quality towards banking self-services. The customer’s attitude
has been changing towards new innovative technologies in the Indian banking industry.

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1. https://sbi.co.in
2. https://www.onlinesbi.sb
i
3. https://www.hdfcbank
.com

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