Customers' Attitude and Acceptance of Banking Products

There are some policy recommendations based the findings of this essay. It is a positive thing that enlarges the coverage of financial services, increasing the opportunities of access in financial services and activities. It will benefit for decrease the level of inequality. It claims that by allowing the poor an opportunity to get access into the financial

Introduction: Banking sector The Indian Banking industry governed by the Banking Regulation Act of India, 1949, falling into two broad classifications, non-scheduled banks and scheduled banks. Within the commercial banks there are nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). With the economic growth picking up pace and the investment cycle on the way to recovery, the banking sector has witnessed a transformation in its vital role of intermediating between the demand and supply of funds. The revived credit off take (both from the food and non food segments) and structural reforms have paved the way for a change in the

By international standards, however, there is still much scope for retail banking in India. After all, retail loans constitute less than seven per cent of GDP in India vis-à-vis about 35 per cent for other Asian economies — South Korea (55 per cent), Taiwan (52 per cent), Malaysia (33 per cent) and Thailand (18 per cent). As retail banking in India is still growing from modest base, there is a likelihood that the growth numbers seem to get somewhat exaggerated. One, thus, has to exercise caution is interpreting the growth of retail banking in India.

One of the major drawbacks for ICICI bank is that it charges very high service taxes for the services provided by the bank as compared to other banks. This makes the bank facilities viable only for higher class. As a result, the middle and bottom economic classes, which are a major chunk of population in India, are being left out

Thus, on the whole, Financial Inclusion has the potential to bring in the unbanked masses into the formal banking system, channelize their savings, stoke their entrepreneurial ambitions by making available credit and thus give a fillip to the

Financial institutions are the most important institution in the development and financing the countries regardless of the developing countries, the countries has developed or is still underdeveloped. A large role in the country cause financial institutions must be sensitive and transparent in governance. However, not all financial institutions are banks. Financial institutions are included bank, finance companies, merchant bank, credit and leasing companies, national savings banks, co-operative bank, discount houses, factoring companies and so on. In addition, financial institutions can be classified into two which are depository and non-depository institutions. The common function among all these institutions is they were assigned to mobilize the fund from those who had fund to those who short of fund. So, we know that they were also known as financial intermediaries.

This research explores the relationships between service quality, customer involvement and customer satisfaction in the highly competitive banking sector. The study sought to identify the most important attributes in bank settings, which may be used to review characteristics of the banks as experienced by customers. The main aim is to find out customer service quality performed by banks at present and expectations of customers from the banking service. From past studies on this subject it is clear that there is some service quality gap that should be minimized. Banking organizations as well as other authorities interested about the subject can use

Consumer relationships are the interactions companies garner through their bond with their prospective and current clients. It involves the integration of all business activities in order to establish a working connection with the consumer. Generally, this concept occurs through selling behavior; however, it can be done through marketing, customer service and technical support. Each, interaction the customer has with a particular brand further hinders or establishes a consumer relationship. The relationship is also a two way form of communication where the customer also has the means to provide pertinent feedback regarding service or product offerings. Through consumer relationships, companies can better establish a reputation and brand identity. This relationship also enhances profitability by reducing marketing and advertising expense, returned merchandise, and any negative word of mouth marketing (Ailawadi, 2003). A consumer relationship therefore, is a continuous dialogue between a company and its client that is mutually beneficial to both parties involved. The company gains valuable insights into its product offerings, methods in which to improve it, and the brand image relative to competitors. The customer gains a product that caters more to their specific needs or desires (Akerlund, 2005).

Banking Industry is the chief indicator of the growth of any country’s economy. India with its huge populations presents a huge scope for banking industry. State Bank of India is a public sector unit and enjoys the market leader position. HDFC is catching up on the back of its exquisite growth in last decade. And with the relaxation of government control, private players are in a much better position to compete. But both the banks have their own problems

n-------------------------------------------------------------------------------------------------iv Table of Contents------------------------------------------------------------------------------------------v List of Tables---------------------------------------------------------------------------------------------vii List of Figures-------------------------------------------------------------------------------------------viii List of Acronyms-----------------------------------------------------------------------------------------ix Abstract-----------------------------------------------------------------------------------------------------x CHAPTER ONE: INTRODUCTION----------------------------------------------------------------- 1 1.1 Background of the study----------------------------------------------------------------------------- 1 1.2 Statement of the Problem---------------------------------------------------------------------------- 3 1.3 Objectives of the Study------------------------------------------------------------------------------ 4 1.4 Specific Research Questions------------------------------------------------------------------------ 4 1.5 Significance of the Study---------------------------------------------------------------------------- 5 1.6 Scope and Limitations of the Study---------------------------------------------------------------- 5 1.7 Organization of the Paper--------------------------------------------------------------------------- 6

India’s banking sector has grown very fast over these years. India has a large web of banking it has 26 public sector banks, private sector consists of 20, and there are 43 foreign banks which is a good sign for banking sector. Also it consists of 61 regional banks. There has been a noticeable expansion in dealings through ATMs, and also with internet and mobile banking banks has shown tremendous growth.

Over the years, the banking sector in India has seen a no. of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers and consequently, the banks. Some of the significant changes in the banking sector are discussed below.

My summer project with HDFC BANK proved to be highly valuable and informative sojourn. I got some valuable insights from this exercise, which has definitely enabled me to hone my skills and widen my perspective towards banking in its modern prospect.

The financial system of the country is the outcome of its own peculiar historical evolution. The continuous interaction between the players of the financial system and public policy interventions has given birth to the evolution of the financial system. India began with the Central Bank and Reserve Bank of India and entrusted upon them the duty of regulating the banking sectors, Ministry of finance were given the responsibilities of regulating the other financial

Internet banking is still at infancy stage in the world. Many studies focused on usage of internet banking but many factors on non-usage were overlooked. This research was carried out to validate the conceptual model of internet banking. The causes were identified and researched through correcting the causative factors so that internet banking can be used by more people. This will help the banking operations to be more cost effective.