Customer Satisfaction Canara Bank

A Project Report On
Customer Perception
about services provided by
Canara Bank, Panchkula

Submitted To
The Business School
Kashmir University
In Partial fulfillment
Of the requirement of
The Degree of Integrated MBA
Under the guidance of

Prof. Ayoub
The Business School, Kashmir University
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Declaration
I am Asrar Ahmad declare that this dissertation submitted in

partial fulfillment require of IMBA to TBS, KU is my origin of work and has
not been submitted for award of any other degree for title or prizes.
As required by the university rules, I state that the work
presented in this is original in nature and to the best my knowledge, has not
been submitted so far to any other university.
Whenever references have been made to the work of
others, it is clearly indicated in the sources of information in references.
Asrar Ahmad
Place: - Thane
Date:-
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Acknowledgement
I express my profound thanks to Mr. Ayoub my teacher and

guide, who has been magnanimous in guiding, encouraging and supporting me
during this project and he/she guided me to choose this immensely productive
topic and it was because of his/her confidence in me that I have been able to
carry out such a study report.
I also wish to thank all the people at Canara Bank who helped me
and facilitated my research project.
I also wish to thank all those respondents who were patient
enough in giving answer to my questionnaire.
I would like to extend my gratitude to my parents, friends for their
consistent encouragement, suggestions and moral support.
Asrar Ahmad
TBS, KU
Page 3
1.
Introduction.......................................................................................................................6
1.1 Bank...................................................................................................................6
1.2 History of Banking in India....................................................................................7
1.2.1 Phase I.........................................................................................................8
1.2.2 Phase II........................................................................................................9
1.2.3 Phase III.....................................................................................................10
1.3 Indian Banking Industry.......................................................................................10
2. Scope of study....................................................................................................................11
2.1 Banks in India.......................................................................................................11
2.1.1 Major Banks in India.................................................................................12
2.1.2 Punch lines of Some Banks.......................................................................13
2.1.3 Fact Files of Banks in India.......................................................................14
2.1.4 Public Sector Banks..................................................................................15
2.1.5 Private Sector Banks.................................................................................17
2.2 Canara Bank.........................................................................................................18
2.2.1 Profile Of Canara Bank.............................................................................18
2.2.2 History of Canara Bank.............................................................................20
2.2.3 Significant Milestones...............................................................................23
2.2.4 Awards/Accolades.....................................................................................25
2.3. Competition Information.....................................................................................27
2.4 Canara bank Products / Services..........................................................................29
2.5 Subsidiaries of Canara Bank................................................................................30
2.6 Financial Statement of Canara Bank....................................................................36
2.6.1 Profit and Loss account:............................................................................37
2.7 Introduction to the Topic......................................................................................39
2.8 Introduction to customer satisfaction...................................................................56
2.8.1 Measure Customer Satisfaction.................................................................57
2.8.2 Information search.....................................................................................57
2.8.3 The selective consumer behavior process.................................................58
2.8.4 Information evaluation..............................................................................58
2.9 Literature Review.................................................................................................59
2.10 Objectives of the Study......................................................................................63
3. Research Methodology.......................................................................................................64
3.1 Research Objectives.............................................................................................64
3.2 Sample Size..........................................................................................................64
3.3 Research Area.......................................................................................................64
3.4 Descriptive Research............................................................................................65
3.5 Sampling Procedure.............................................................................................65
3.6 Formation of questionnaire..................................................................................65
3.7 Data Collection Tools...........................................................................................66
3.8 Sources of Data....................................................................................................66
3.9 Respondents Profile:...........................................................................................66
3.10 Organizing the Data...........................................................................................66
3.11 Presentation of Data...........................................................................................66
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3.12 Analysis of Data.................................................................................................66

3.13 Interpretation of Data.........................................................................................67
3.14 Classification of Data.........................................................................................67
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Chapter 1
Introduction
1.1 Bank
Finance is the life blood of trade, commerce and industry. Now-a-days, bank
money acts as the backbone of modern business. Development of any country
mainly depends upon the banking system. The term bank is derived from the
French word Banco which means a Bench or Money exchange table. A bank
is a financial institution which deals with deposits and advances and other
related services. It receives money from those who want to save in the form of
deposits and it lends money to those who need it. Oxford Dictionary defines a
bank as "an establishment for custody of money, which it pays out on
customer's order."
Features of a Bank:
1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e.
money given by depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company means a
company which is in the business of banking.
3. Acceptance of Deposit
A bank accepts money from the people in the form of deposits which are
usually repayable on demand or after the expiry of a fixed period. It gives
safety to the deposits of its customers. It also acts as a custodian of funds of its
customers.
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4. Giving Advances
A bank lends out money in the form of loans to those who require it for
different purposes.
5. Payment and Withdrawal:
A bank provides easy payment and withdrawal facility to its customers in the
form of cheques and drafts, It also brings bank money in circulation. This
money is in the form of cheques, drafts, etc.
6. Agency and Utility Services
A bank provides various banking facilities to its customers. They include
general utility services and agency services.
7. Profit and Service Orientation
A bank is a profit seeking institution having service oriented approach.
8. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money.
Banks collect money from those who have surplus money and give the same to
those who are in need of money.
9. Banking Business
A bank's main activity should be to do business of banking which should not
be subsidiary to any other business.
10. Name Identity
A bank should always add the word "bank" to its name to enable people to
know that it is a bank and that it is dealing in money.
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1.2 History of Banking in India

Without a sound and effective banking system in India it cannot have a
healthy economy. The banking system of India should not only be hassle free
but it should be able to meet new challenges posed by the technology and any
other external and internal factors.
For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach.
It is no longer confined to only metropolitans or cosmopolitans in India. In
fact, Indian banking system has reached even to the remote corners of the
country. This is one of the main reasons of India's growth process.
The government's regular policy for Indian bank since 1969 has
paid rich dividends with the nationalization of 14 major private banks
of India.
Not long ago, an account holder had to wait for hours at the
bank counters for getting a draft or for withdrawing his own money.
Today, he has a choice. Gone are days when the most efficient bank
transferred money from one branch to other in two days. Now it is
simple as Instant messaging or dial a pizza. Money has become the
order of the day.
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They areas mentioned below: Phase I: Early phase from 1786 to 1969 of Indian Banks.
Phase II: Nationalization of Indian Banks and up to 1991 prior to
Indian banking sector Reforms.
Phase III: New phase of Indian Banking System with the advent of
Indian Financial & Banking Sector Reforms after 1991.
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1.2.1 Phase I
The General Bank of India was set up in the year 1786. Next came the Bank
of Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders
In 1865 Allahabad Bank was established and first time exclusively by
Indians. Punjab National Bank Ltd. was set up in 1894 with headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100
banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in
India as the Central Banking Authority.
During those days public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility
provided by the Postal department was comparatively safer. Moreover, funds
were largely given to traders.
1.2.2 Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalized in
1960 on 19th July, 1969, major process of nationalization was carried out. It
was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14
major commercial banks in the country were nationalized. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with
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seven more banks. This step brought 80% of the banking segment in India
under Government ownership.
The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of
State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India
rose to approximately 800% in deposits and advances took a huge jump by
11,000%.
Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.
1.2.3 Phase III
This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of
M. Narasimham, a committee was set up by his name which worked for the
liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift.
Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is
sheltered from any crisis triggered by any external macroeconomics shock as
other East Asian Countries suffered. This is all due to a flexible exchange rate
regime, the foreign reserves are high, the capital account is not yet fully
convertible, and banks and their customers have limited foreign exchange
exposure.
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1.3 Indian Banking Industry

The Indian banking market is growing at an astonishing rate, with Aggregate
deposits reaching US$1 trillion by 2013. An expanding economy, middle class,
and technological Innovations are all contributing to this growth.
The countrys middle class accounts for over 320 million People. In correlation
with the growth of the economy, rising income levels, increased standard of
living, and affordability of banking products are promising factors for
continued expansion.
The Indian banking Industry is in the middle of an IT revolution, Focusing on

the expansion of retail and rural banking. Players are becoming increasingly
customer - centric in their approach, which has resulted in innovative methods
of offering new banking products and services. Banks are now realizing the
importance of being a big player and are beginning to focus their attention on
mergers and acquisitions to take advantage of economies of scale and/or
comply with Basel II regulation.
Indian banking industry assets are expected to reach US$1 trillion by 2010
and are poised to receive a greater infusion of foreign capital, says Prathima
Rajan, analyst in Celent's banking group and author of the report. The
banking industry should focus on having a small number of large players that
can compete globally rather than having a large number of fragmented
players."
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Chapter 2
Scope of study
2.1 Banks in India
In India the banks are being segregated in different groups. Each group
has their own benefits and limitations in operating in India. Each has their
own dedicated target market. Few of them only work in rural sector while
others in both rural as well as urban. Many even are only catering in cities.
Some are of Indian origin and some are foreign players.
All these details and many more is discussed over here. The banks and
its relation with the customers, their mode of operation, the names of banks
under different groups and other such useful informations are talked about.
One more section has been taken note of is the upcoming foreign banks
in India. The RBI has shown certain interest to involve more of foreign banks
than the existing one recently. This step has paved a way for few more foreign
banks to start business in India.
The banking section will navigate through all the aspects of the Banking
System in India. It will discuss upon the matters with the birth of the banking
concept in the country to new players adding their names in the industry in
coming few years.
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks
Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO,
etc. has been well defined under three separate heads with one page dedicated
to each bank.
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2.1.1 Major Banks in India
ABN-AMRO Bank
Abu Dhabi Commercial Bank
American Express Bank
Andhra Bank
Allahabad Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Bank of Punjab
Bank of Rajasthan
Bank of Ceylon
BNP Paribas Bank
Canara Bank
Catholic Syrian Bank
Central Bank of India
Centurion Bank
China Trust Commercial Bank
Citi Bank
City Union Bank
Corporation Bank
Dena Bank
Deutsche Bank
Development Credit Bank
Dhanalakshmi Bank
Federal Bank
HDFC Bank
HSBC ICICI Bank
IDBI Bank
Indian Bank
Indian Overseas Bank

IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
JPMorgan Chase Bank
Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab & Sind Bank
Scotia Bank
South Indian Bank
Standard Chartered Bank
State Bank of India (SBI)
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Indore
State Bank of Mysore
State Bank of Saurastra
State Bank of Travancore
Syndicate Bank
Taib Bank
UCO Bank
Union Bank of India
United Bank of India
United Bank Of India
United Western Bank
UTI Bank
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2.1.2 Punch lines of Some Banks
BANKS
PUNCHLINES
CANARA BANK
Service to grow, grow to service
INDIAN BANK
SBI BANK
HDFC BANK
HSBC BANK
INDIAN OVERSEAS BANK
DENA BANK
CANARABANK
VIJAYA BANK
FEDERAL BANK
IDBI
ORIENTAL BANK OF
COMMERCE
DHFL
Poised for higher growth

With you- all the way
We understand your world
The worlds local bank
Good people to grow with
The trusted family bank
May I help you
A friend you can bank with
Your perfect banking partner
Plan ahead. Get ahead
Where every individual is committed
The friendly housing loan

people
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2.1.3 Fact Files of Banks in India
The first bank in India to be given an ISO Certification.
Canara Bank
The first bank in Northern India to get ISO 9002

certification for their selected branches.
Punjab and Sind

Bank
The first Indian bank to have been started solely with

Indian Capital.
Punjab National
Bank
The first among the private sector banks in Kerala to

become a Scheduled bank in 1946 under the RBI Act.
South Indian Bank
India's oldest, largest and most successful commercial

bank, offering the widest possible range of domestic,
international and NRI products and services, through its
vast network in India and overseas.
State Bank of
India
India's second largest private sector bank and is now the

Largest scheduled commercial bank in India.
The Federal Bank

Limited
Bank which started as private shareholders banks, mostly

Europeans shareholders
Imperial Bank of
The first Indian bank to open a branch outside India in

Bank of India,
London in 1946 and the first to open a branch in continental founded in 1906 in
Europe at Paris in 1974.
Mumbai
The oldest Public Sector Bank in India having branches all
over India and serving the customers for the last 132 years. Allahabad Bank
The first Indian commercial bank which was wholly
owned and managed by Indians
Central Bank of
India
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2.1.4 Public Sector Banks
Among the Public Sector Banks in India, United Bank of India is one of the 14
major banks, which were nationalized on July 19, 1969. Its predecessor, in the
Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with
the amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914),
Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and
Hooghly Bank Ltd. (1932).
Oriental Bank of Commerce (OBC), Government of India
Undertaking offers Domestic, NRI and Commercial banking services. OBC
is implementing a GRAMEEN PROJECT in Dehradun District (UP) and
Hanumangarh District (Rajasthan) disbursing small loans. This Public
Sector Bank India has implemented 14 point action plan for strengthening of
credit delivery to women and has designated 5 branches as specialized
branches for women entrepreneurs.
The following are the list of Public Sector Banks in India
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
Punjab National Bank
Syndicate Bank
UCO Bank
Union Bank of India
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United Bank of India

Vijaya Bank
List of State Bank of India and its subsidiary, a Public Sector

Banks
State Bank of India.

State Bank of Bikaner & Jaipur.
State Bank of Hyderabad.
State Bank of Indore.
State Bank of Mysore.
State Bank of Saurastra.
State Bank of Travancore.
2.1.5 Private Sector Banks
Private banking in India was practiced since the beginning of banking system
in India. The first private bank in India to be set up in Private Sector Banks in
India was IndusInd Bank. IDBI ranks the tenth largest development bank in the
world as Private Banks in India and has promoted world class institutions in
India.
The first Private Bank in India to receive an in principle approval from the
Reserve Bank of India was Housing Development Finance Corporation
Limited, to set up a bank in the private sector banks in India as part of the
RBI's liberalization of the Indian Banking Industry. It was incorporated in
August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year
1930. Bangalore has a pride of place for having the first branch inception in the
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year 1934. With successive years of patronage and constantly setting new
standards in banking, ING Vysya Bank has many credits to its account
List of Private Banks in India
Bank of Punjab
Bank of Rajasthan
Catholic Syrian Bank
Centurion Bank
City Union Bank
Dhanalakshmi Bank
Development Credit Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Laxmi Vilas Bank
South Indian Bank
United Western Bank
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2.2 Canara Bank

2.2.1 Profile Of Canara Bank
Type
Public (BSE: 532483, NSE: CANBK)
Industry
Banking
Financial services
Founded
Canara Bank Hindu Permanent Fund (1906)

Canara Bank Ltd (1910)
Canara Bank (1969)
Headquarters
Bangalore, India
Key people
A. C. Mahajan, (Chairman & MD)

Jagdish Pai K L , (Executive Director)
Products
Investment Banking
Consumer Banking
Commercial Banking
Retail Banking
Private Banking
Asset Management
Pensions
Mortgage
Credit Cards
Employees
Website
47,389 (200405)
www.canarabank.com
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"A good bank is not only the financial heart of the

community, but also one with an obligation of helping in
every possible manner to improve the economic
conditions of the common people" - A. Subba Rao Pai.
A. Subba Rao Pai.
Vision
To emerge as a Best Practices Bank by pursuing global benchmarks in
profitability, operational efficiency, asset quality, risk management and
expanding the global reach.
Mission
To provide quality banking services with enhanced customer orientation,
higher value creation for stakeholders and to continue as a responsive
corporate social citizen by effectively blending commercial pursuits with
social banking.
Founding Principles
To remove Superstition and ignorance.
To spread education among all to sub-serve the first principle.
To inculcate the habit of thrift and savings.
To transform the financial institution not only as the
financial heart of the community but the social heart as
well.
To assist the needy.
To work with sense of service and dedication.
To develop a concern for fellow human being and sensitivity to the
Page 20
surroundings
Sound founding principles, enlightened leadership, unique work culture and
remarkable adaptability to changing banking environment have enabled
Canara Bank to be a frontline banking institution of global standards.
2.2.2 History of Canara Bank
Canara Bank is a major financial service. It was established in India in 1906,

which makes it among the older Indian banks. As on 2009 November, the bank
had a network of 2861 branches, spread across India and other countries. Its
head office is located in Bangalore, India. The bank also has international
presence in several centers, including London, Hong Kong, Moscow,
Shanghai, Doha, and Dubai . In terms of business it is one of the largest
nationalized commercial banks in India, with a total business of about Rs.2
trillion. The late Sri. Ammembal Subba Rao Pai, a philanthropist, established
the Canara Bank Hindu Permanent Fund in Mangalore, India, on 1 July 1906.
The bank changed its name to Canara Bank Limited in 1910 when it
incorporated.
In 1958, the Reserve Bank of India ordered Canara Bank to
acquire G. Raghumathmul Bank, in Hyderabad. This bank had been
established in 1870, and had converted to a limited company in 1925. At the
time of the acquisition the bank had five branches. The Government of India
nationalized Canara Bank, along with 13 other major commercial banks of
India, on 19 July 1969.In 1976, Canara Bank inaugurated its 1000th branch.
In 1983, Canara Bank opened its first overseas office, a branch in London. In
1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue. In
1984, Canara Bank acquired the Laksmi Commercial Bank.
In 1985, Canara Bank established a subsidiary in Hong Kong, Indo
Hong Kong International Finance Ltd. In 2008-09, Canara Bank opened its
third foreign branch, this one in Shanghai.
Widely known for customer centricity, Canara Bank was founded by
Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July
1906, at Mangalore, then a small port in Karnataka. The Bank has gone
through the various phases of its growth trajectory over hundred years of its
Page 21
existence.
Growth of Canara Bank was phenomenal, especially after
nationalization in the year 1969, attaining the status of a national level player
in terms of geographical reach and clientele segments. Eighties was
characterized by business diversification for the Bank. In June 2006, the Bank
completed a century of operation in the Indian banking industry. The eventful
journey of the Bank has been characterized by several memorable milestones.
Today, Canara Bank occupies a premier position in the comity of Indian banks.
With an unbroken record of profits since its inception, Canara Bank has
several firsts to its credit.
These include:
Launching of Inter-City ATM Network
Obtaining ISO Certification for a Branch
Articulation of Good Banking Banks Citizen Charter
Commissioning of Exclusive Mahila Banking Branch
Launching of Exclusive Subsidiary for IT Consultancy
Issuing credit card for farmers
Providing Agricultural Consultancy Services
Over the years, the Bank has been scaling up its market position to emerge as a
major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored
institutions/joint ventures in India and abroad. As at March 2009, the Bank has
further expanded its domestic presence, with 2729 branches spread across all
geographical segments. Keeping customer convenience at the forefront, the
Bank provides a wide array of alternative delivery channels that include over
2000 ATMs- one of the highest among nationalized banks- covering 705
centers, 1362 branches providing Internet and Mobile Banking (IMB) services
and 2062 branches offering 'Anywhere Banking' services. Under advanced
payment and settlement system, all branches of the Bank have been enabled to
offer Real Time Gross Settlement (RTGS) and National Electronic Funds
Transfer (NEFT) facilities.
Not just in commercial banking, the Bank has also carved a distinctive mark, in
various corporate social responsibilities, namely, serving national priorities,
promoting rural development, enhancing rural self-employment through
Page 22
several training institutes and spearheading financial inclusion objective.

Promoting an inclusive growth strategy, which has been formed as the basic
plank of national policy agenda today, is in fact deeply rooted in the Bank's
founding principles. "A good bank is not only the financial heart of the
community, but also one with an obligation of helping in every possible
manner to improve the economic conditions of the common people". These
insightful words of our founder continue to resonate even today in serving the
society with a purpose.
The growth story of Canara Bank in its first century was due, among others, to
the continued patronage of its valued customers, stakeholders, committed staff
and uncanny leadership ability demonstrated by its leaders at the helm of
affairs. We strongly believe that the next century is going to be equally
rewarding and eventful not only in service of the nation but also in helping the
Bank emerge as a "Global Bank with Best Practices". This justifiable belief is
founded on strong fundamentals, customer centricity, enlightened leadership
and a family like work culture.
Page 23
2.2.3 Significant Milestones
1st July
1906
1910
1969
1976
1983
1984
1985
1987
1989
1989-90
Canara Hindu Permanent Fund Ltd. formally registered with a capital

of 2000 shares of Rs.50/- each, with 4 employees.
Canara Hindu Permanent Fund renamed as Canara Bank Limited
14 major banks in the country, including Canara Bank, nationalized
on July 19
1000th branch inaugurated
Overseas branch at London inaugurated Cancard (the Banks credit
card) launched
Merger with the Laksmi Commercial Bank Limited
Commissioning of Indo Hong Kong International Finance Limited
Canbank Mutual Fund & Canfin Homes launched
Canbank Venture Capital Fund started
Canbank Factors Limited, the factoring subsidiary launched
Became the first Bank to articulate and adopt the directive principles
1992-93
of Good Banking.
Became the first Bank to be conferred with ISO 9002 certification for
1995-96
one of its branches in Bangalore
Page 24
Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for

2001-02 catering exclusively to the financial requirements of women clientele.
2002-03
2003-04
Maiden IPO of the Bank

Launched Internet & Mobile Banking Services
2004-05
100% Branch computerization

Entered 100th Year in Banking Service
Launched Core Banking Solution in select branches
2005-06
Number One Position in Aggregate Business among Nationalized
Banks
Retained Number One Position in Aggregate Business among
Nationalized Banks.
2006-07 Signed MoUs for Commissioning Two JVs in Insurance and Asset
Management with international majors viz., HSBC, (Asia Pacific)
Holding and Robeco Groep N.V respectively
Launching of New Brand Identity
Incorporation of Insurance and Asset Management JVs
2007-08
Launching of 'Online Trading' portal
Launching of a Call Centre
Switchover to Basel II New Capital Adequacy Framework
2008-09
2009-10
The Bank crossed the coveted Rs. 3 lakh crore in aggregate business.
The Banks 3rd foreign branch at Shanghai commissioned
The Banks aggregate business crossed 4 lakh crores mark.
Net profit of the Bank crossed 3000 crores. The Banks branch
network crossed the 3000 mark
The Banks aggregate business crossed 5 lakh crores mark. Net profit
of the Bank crossed 4000 crores. 100% coverage under Core Banking
Solution. The Banks 4th foreign branch at Leicester and a
2010-11 Representative office at Sharjah, UAE, opened. The Bank raised
1993 crores under QIP. Govt. holding reduced to 67.72% post QIP.
As at December 2011, the total business of the Bank stood at 534710
crores.
Page 25
2.2.4 Awards/Accolades.
Awards/Accolades Received during 2014-15

"MSME Banking Excellence Awards-2014" organized by Chamber of
Indian Micro, Small and Medium Enterprises (CIMSME)
Awarded Niryat Bandhu instituted by Federation of Indian Export
Organization (FIEO)
SKOCH Renaissance Award 2014 under India's Best Projects 2014
Category for Rural Self Employment Training Institute.
Best Performer in Account Growth Rate by NSDL Star Performer
Awards 2014.
Awarded First Prize under Indira Gandhi Rajbhasha Shield in Region
C for effective implementation of Official Language for the year 201314.
Conferred with Reserve Bank Rajbhasha Shield for effective
implementation of Official Language in Region 'B' & 'C'.
Ranked 1st among Public Sector Banks in an article on India's Best
Companies for CSR published in the "Corporate Dossier" of Economic
Times.
Awarded Best Inspiring Place to Work (Public Sector) by Banking
Frontiers partnering with M/s. Deloitte in an effort to recognize the HR
efforts of the BFSI sector.
Golden Peacock Award for Corporate Governance by the Institutes of
Directors, India.
CEO with HR Orientation at the Asia Pacific HRM Congress 2014
instituted by World HRD Congress.
Conferred with Asia HRD Award under the category Contribution to
Organization of the Asia HRD Congress Awards 2014.
Page 26
Awards and Achievements during 2013-14

In recognition of the varied initiatives, the Bank was conferred with the
following awards
Global CSR Excellence and Leadership Awards 2014 from CSR World
Congress.
Best Home Loan Provider Award from Outlook Money for 2013.
Finger Print based Biometric Authorization for CBS declared as
winner for secure IT 2014 award.
The Banks Desktop Management System project awarded amongst
Indias Best -2013 in 33rd SKOCH Summit.
NFS Operational Excellence Award 2013 - Special Jury Award 2013 by
NPCI
Corporate Collateral Awards under various categories by Public
Relations Council of India.
Golden Peacock Award for excellence in Corporate Social
Responsibility for the year 2013.
Greentech Award for excellence in Corporate Social Responsibility for
the year 2013.
Skoch Renaissance Award 2013, with a Medal and Citation for being
India's Best-2013.
Jury Award for New Initiatives under MSME instituted by Chamber of
Indian MSME under Banking Excellence Awards 2013.
Top Performer in New De-mat Accounts Opened in banking sector by
National Securities Depository Ltd., (NSDL) for the year 2013.
Golden Peacock Global Award for Corporate Social Responsibility for
the year 2013
Golden Peacock Award for Excellence in Corporate Governance 2013.
2.3. Competition Information
Canara Banks main competitors are as follows:-
1) Axis Bank Ltd.

Axis Bank Limited, formerly UTI Bank, is
a financial services firm that had begun operations in 1994, after the Government of
India allowed new private banks to be established. The Bank's Registered Office is at
Page 27
Ahmadabad and its Central Office is located at Mumbai. Axis Bank one of the largest
private sector financer in India for Agriculture loans.
2) ICICI Bank Ltd.

ICICI Bank Limited also known as Industrial
Credit and Investment Corporation of India Bank is the second largest financial service
company headquartered at Mumbai, India. The Bank has a network of 2,533 branches and
6,601 ATMs in India, and has a presence in 19 countries, including India. ICICI Bank was
established in 1994 by ICICI Limited, an Indian financial institution, as a wholly owned
subsidiary.
3) Kotak Mahindra.
The Kotak Mahindra group is a financial organization
established in 1985 in India. It was previously known as the Kotak Mahindra Finance
Limited, a non-banking financial company. In February 2003, Kotak Mahindra Finance Ltd
was given the license to carry on banking business by the Reserve Bank of India (RBI).
Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert
to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in revenue.
4) State Bank of India

State Bank of India (SBI) (is the largest Indian banking
and financial services company (by turnover and total assets) with its headquarters
in Mumbai, India. It is state-owned. SBI provides a range of banking products through its
vast network of branches in India and overseas, including products aimed at non-resident
Indians (NRIs). The State Bank Group, with over 16,000 branches, has the largest banking
branch network in India. SBI has 14 Local Head Offices and 57 Zonal Offices that are
located at important cities throughout the country. It also has around 130 branches overseas.
5) Yes Bank Ltd.

YES Bank Limited is an Indian Bank, engaged in
providing a range of banking and financial services. The Banks business segments include
Treasury, Corporate/Wholesale Banking, and Retail Banking, Corporate Finance,
Transaction Banking and a host of other Banking services. It was founded by Rana
Page 28
Kapoor and his partner (Late) Ashok Kapur, with the duo holding a collective financial
stake of 27.16%.
6) IndusInd Bank
IndusInd Bank, which commenced operations in
1994, caters to the needs of both consumer and corporate customers. Its technology platform
supports multi-channel delivery capabilities. As on June 30, 2013, IndusInd Bank had 530
branches, and 1003 ATMs spread across 380 geographical locations of the country. The
Bank also has representative offices in London and Dubai. The Bank believes in driving its
business through technology. It enjoys clearing bank status for both major stock exchanges BSE and NSE - and major commodity exchanges in the country, including MCX, NCDEX,
and NMCE. IndusInd Bank on April 1, 2013 was included in the NIFTY 50 benchmark
index. IndusInd Bank also offers DP facilities for stock and commodity segments.
7) ING Vysya
ING Vysya Bank Ltd is a global financial institution of Dutch origin
offering banking, investments, life insurance and retirement services. More than 84,000 ING
employees server over 61 million private, corporate and institutional customers in over 40
countries in Europe, North America, Latin America, Asia and Australia. We draw on our
experience and expertise, our commitment to excellent service and our global scale to meet
the needs of a broad customer base, comprising individuals, families, small, businesses,
large corporations, institutions and governments.
2.4 Canara bank Products / Services

Core Services
Payment Services
Facilitating Services
Cash
Foreign Currency
Requirement
Traveler Charges
DD / Bankers Charges
IT
EFT
Supporting Services
Making Payments At Door
Step
Internet Banking
Telephone Banking
Page 29
Current
Saving
Account
Account
ATM Card
Standing
Instructions
From
&
Customers From Making
Payments
Inter-Branch / Inter-Bank
Transfer Funds
Safety Vaults
Loan products: Consumer

loans, personal loans,
housing
loans, educational loans
Current account
Savings account
Time deposit account
Current account
Insurance products: Life
Savings account
insurance,
pension
Time deposits
schemes
Safety vaults
Credit Cards
Debit Cards
Service To Senior Citizens
Telephone Banking
Internet Banking
Conversion Of Excess
Balance
To Time Deposits
Delivery of loan at
promised
Time period
Interest rate option:
Fixed/floating
Flexibility in pre-payment
of Loan
Counseling on Real-estate
Markets
Legal services for
Documentation
ECS for payment of loan
Installments
Additional
insurance
facility
for
family
members
Counseling
on
post
retirement savings
2.5 Subsidiaries of Canara Bank

CAN FIN HOMES Ltd.:
Can-Fin Homes Limited was established on 29.10.1987 as a Sponsored Entity
of the Bangle some of the premier financial institutions such as HDFC, UTI
and NHB are the co-promoters of the Company. Canara Bank holds 29.30% of
equity in the Company. Sri K Venkataramayya, General Manager of the Bank
IS Managing Director of the Company. Apart from the Managing Director, the
Board of Directors is compiled of top Executives of the Bank, institutional
Page 30
nominees of HDFC, UTI and NHB and also professionals in the field of
accounts/finance/Banking. The Registered Office of the Company is at No. 29,
Sir M N Krishna Rao Park Road, Basavanagudi, Bangalore 560 004. The
Company has 41 branches and 5 Representative Office spread across the
country.
Activities:
The prime objective and activity of the Company is to provide Ion g
term finance to individuals for construction or purchase of residential
houses/flats and to Companies or Corporations or Societies or
Associations for the purpose of construction or purchase of residential
houses flats
Over the years, the company has added new products to their range and
value addition is done to the existing products to keep updated with the
changing market scenario and the competition, which is getting tougher
with each passing day. Personal loans to the existing borrowers, loans
for purchase of sites, insurance cover for loaners, etc., are some
examples of innovation/value addition.
Bank's goodwill, the innate strength of the Company approach and an
unflinching business acumen have always kept the business on an
envious platform making good profits and paying rich dividends and
their pragmatic ever since inspection.
The Company also took a major step in diversification by launching
three Non-housing Finance Products namely Premises Loan for
practicing professionals (Venture), Mortgages Loans (Net worth) and
Loan against rent receivables (Noncash)
CANARA BANK FACTORS LIMITED:

Post Sale funds crunch is proving a handicap for many industries and
business in the smooth cycling of capital. Canara Bank Factors Limited (CFL)
was established in 10.05.1991 to mitigate this problem of the industry and
business and ensure a smooth flow of capital in the entire cycle. This Company
is promoted by our Bank along with Andhra Bank and SIDBI. The Registered
office is at No. 17, Seshadri Road, Bangalore 56 0 009.
Page 31
The Company is now being headed by Sri G R Seshadri as Managing

Director a senior executive in the cadre of Deputy General Manager deputed
from the Bank. The Board of the Company consists of Chairman & Managing
Director, Executive Director and a General Manager of the Bank, apart from
the Managing Director. SIDBI and Andhra Bank have appointed their
nominees. There are 3 non-official Directors from the profession of
audit/accounts/ Banking/Finance. It has a network of 8 branches in southern
and we stem part of the courtly and proposes to add some more during the next
financial year.
Activity:
Factoring Services:
To cater to the needs of the clientele, Company has always on the lookout for
innovative and competitive products. Introduction {)f variants of fact ling such
as International Factoring/Export Factoring and Sub -variants such as Invoice
Discounting backed by LCs/Hundisffripartite Agreements are examples of their
consistent Endeavour to design/redesign their products.
CRISIL has given the following RATING to the Company:
"PH" - indicating highest safety for short term debt program
allover Commercial Papers.
"FAA+" - indicating higher safety for Public Deposits.
"AA" - indicating higher safety for non-convertible debentures.
The Company is accredited with an ISO Certificate -"DIN EN
ISO 9001:2000" by TUV CERT Certification body of Germany
.
CANBANK VENTURE CAPITAL FUND LIMITED:
In our economic environment, assistance for establishment of new
ventures in the field of industry is not easily forthcoming. To assist the new
ventures, our Bank had formed a Venture Capital Fund in the year 1989. The
Fund is managed by Canara bank Venture Capital Fund Ltd, a wholly owned
Subsidiary of Canara Bank.
This is the only Company of its kind sponsored by a Public Sector Bank
Page 32
in the country. Sri B Sudhakar Shetty, Asst General Manager of the Bank is
heading the Company as Managing Director.
Apart from the Managing Director, the Company's Board of Directors
consists of our Chairman & Managing Director, Executive Director and a
General Manager of the Bangle There are two non-official Directors, each
drawn from the field of industry and Finance. The Registered Office is at No.
14, Naveen Complex, 4th Floor, M G Road, Bangalore 560001.
Activity:
Trustee and Manager of Canara bank Venture Capital Fund
CANBANK COMPUTER SERVICES LIMITED:
With fast increasing impetus ~n information technology and extensive
use of computers in more and more spheres, the Bank found good opportunity
for establishment of a Company which can develop softwares and provide
consultancy services to computer users. This thought of the Bank culminated in
the establishment of CCSL on 13.08 .1994. The Company is co-promoted by 2
other Public Sector Banks and 3 Private Sector Banks. Canara Bank is holding
62.97% of the equity of the Company.
The Registered Office is situated at No. 14, Naveen Complex, 7 the
Floor, M G Road, Bangalore 560 001. B. Sivaraman, Deputy General Manager
of the Bank is heading the Company as Managing Director of the Company.
Apart from the Managing Director, the Board of Directors consists of

our Chairman & Managing Director and Executive Director. There is one
Director each from Bank of Baroda, Lakshmi Vilas Bank, ING Vysya Bank
Limited and Vijay Bank on the Board
Activities:
CCSL designs and develops software for banks, financial institutions
Page 33
and Government Departments, with its extensive in-house infra-structure and

proven technical expertise. All its products and Projects are well documented
and user -friendly, with on-line help, data encryption and audit features.
CCSL offers services in the following areas:
1. Software development
2. Business Process Outsourcing
3. Training
4. Data warehousing Solution
5. Web based solution
6. Information Systems Audit
7. Consultancy Service
GILT SUCURITIES TRADING CORPORATION LIMITED

This is the latest of the Subsidiaries of Canara Bank so far. Established
on06.06.1996 and co-promoted by Corporation Bank and Bank of Baroda,
is a Primary Dealer Subsidiary accredited by RBI. Company is a wholly
Owned Subsidiary of Canara Bank since September 2004.
The Registered Office is at 1-1, Kalahari heritage, Manikin Wada
Page 34
Building, 127, M G Road, Foi T, Mumbai 400 023.

Presently, the Company is under the stewardship of Sri D G Kamath
as Managing Director who is a Deputy General Manager of the Bank
on second mint to the Company.
The Board of the Company consists of our Chairman& Man aging
Director, Executive Director, 2 General Managers of the Bank and 2
Chartered Accountants and a former Banker.
Activity:
Primary Dealer accredited by RBI for dealing III Government of
India Dated Securities and Treasury Bills.
Strengthening Infrastructure in the Government Securities (G Sec)
Market so as to make it vibrant, liquid and broad based.
Development of Underwriting and Market Making capabilities.
Improving Secondary Market Trading System.
With the mentioned objectives, GSTCL participates actively both III Security
and Money Market.
Reserve Bank of India, being the Regulator of Primary Dealers, sets
certain goals in tons of Bidding Commitments and Success Ratio in
the Primary auction of G Sec and T Bills, to be accomplished by
them which form the basis for renewal of PD's license. GSTCL has
the distinction of achieving these benchmarks consistently since
inception. Underwriting of G Sec in the auction is yet another
obligation cast on PDs.
Bond yields being the function of interest rate, the Company's asset
portfolio is subject to market vagaries caused by factors like
inflation, liquidity, government borrowing programmed, coupon,
maturities of papers issued and also event base risks. In order to
manage and mitigate these risks the Company has well defined and
board approved investment policy so also Risk Management Policy.
As typical of a trader, the Company is encasing price volatility to
earn profits. Day-to-day operations are largely supported by Call and
Repo Borrow wings. Thus efficient funds management holds key to
improving profitability.
The Company is also into retailing G Sec to individual investors PF
Page 35
staffs/ Charitable Institutions through 24 designated branches of the

parent, Canara Bank. And also has put in place arrangements for
retailing through Stock Exchanges.
CANBANK INVESTMENT MANAGEMENT SERVICES LIMITED
Bank had established its Mutual Fund arm "Canara bank Mutual Fund" on
19.12.1987 for foraying into the Capital Market. CMF is an independent Trust
governed by a Board of Trustees,
When the RBI issued directives to form Asset Management Companies to
manage the assets of Mutual Funds and such other Trusts, Canara bank
Investment Management Services Limited was established by the Bank on
02.03.1993 as a Wholly Owned Subsidiary of the Bank,
Sri N R Rarnanujam, Deputy General Manager of the Bank is at the helm
of the Company as Managing Director. Two General Managers of the Bank is
also on the Board. There are four non-official Directors on the Board drawn
from various fields connected to finance,
CANBANK FINANCIAL SERVICES LIMITED:
This is the first Subsidiary emerging from the stable of Canara Bank.
Established on 01.06.1987 as a Wholly Owned Subsidiary of the Bank, cantina
was very quick to carve a niche for itself in the Merchant Banking arena as a
premier institution providing a host of financial services under one roof.
Registered Office of the Company is housed at No. 14, Naveen Complex, 6 th
Floor, M G Road, Bangalore 560 001. Sri M. S. Prabhu, Divisional Manager of
the Bank is heading the Company Executive Director. Apart from the
Executive Director, the Board of Director consists of two General Managers of
the Bank and a Chartered Accountant who is non -official Nominee as
Chairman.
2.6 Financial Statement of Canara Bank
Financial statements and reports are the tools which provide information of
the firms financial affairs. This information is required for financial
analysis & decision making. It assesses the financial status of organization
which is prepared with help of accounting principle.
Financial statement has mainly as follow:
Page 36
Balance sheet
Profit & loss account
Basic conventions under which financial statements prepared are:
Consistency
Conservativeness
Disclosure
Analyzing of financial statements helps to know the financial health of the
borrower, which provides the detail of the liabilities and the assets of the
applicant. It also helps to study the trends in the financial matters of the
company. It helps to evaluate the assets of the applicant company. It assists in
decision making process relating to the future activities.
2.6.1 Profit and Loss account:
Profit and loss account is one of the essential documents which show the
summary of revenues, expenses and net income of the firm during the
particular financial period.
Functions of the Profit and Loss account:
It gives a concise summary of the firms revenue and expenses during the
particular period.
It measures the firms profitability. It represents the activity of the firm.
Profit and Loss account of Canara Bank (in Rs. Cr.)
Mar '14 Mar '13
Mar '12
Income
Interest Earned
Mar '11
Mar '10
12 mths 12 mths
12 mths
12 mths
12 mths
39,547.6134,077.94
30,850.62
23,064.01
18,751.96
Page 37
Other Income
Total Income
Expenditure
Interest expended
Employee Cost
Selling, Admin & Misc Expenses
Depreciation
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies
Total Expenses
3,932.76 3,153.01
43,480.3737,230.95
2,949.75
33,800.37
2,826.98
25,890.99
3,000.82
21,752.78
30,603.1726,198.94
3,672.38 3,253.56
6,538.16 4,716.65
228.47 189.69
0.00
0.00
6,081.01 5,141.99
4,358.00 3,017.91
41,042.1834,358.84
Mar '14 Mar '13
23,161.31
2,973.09
4,226.38
156.89
0.00
5,967.81
1,388.55
30,517.67
Mar '12
15,240.74
2,954.84
3,518.16
151.36
0.00
5,420.49
1,203.87
21,865.10
Mar '11
13,071.43
2,193.70
3,311.09
155.13
0.00
4,903.79
756.13
18,731.35
Mar '10
12 mths 12 mths
12 mths
12 mths
12 mths
2,872.10
0.00
0.00
2,872.10
0.00
576.00
98.00
3,282.71
0.00
0.00
3,282.71
0.00
487.30
80.00
4,025.89
0.00
0.00
4,025.89
0.00
487.30
80.00
3,021.43
0.00
0.00
3,021.43
0.00
410.00
70.00
64.83
130.00
561.58
74.10
110.00
465.57
90.88
110.00
405.00
73.69
100.00
305.83
2,198.10
0.00
1,530.15
1,185.26
1,765.29
1,693.30
1,676.35
865.08
674.00
567.30
567.30
480.00
0.00
2,872.10
0.00
3,282.71
0.00
4,025.89
0.00
3,021.43
Net Profit for the Year

2,438.19
Extraordinary Items
0.00
Profit brought forward
0.00
Total
2,438.19
Preference Dividend
0.00
Equity Dividend
507.38
Corporate Dividend Tax
86.23
Per share data (annualized)
Earnings Per Share (Rs)
52.86
Equity Dividend (%)
110.00
Book Value (Rs)
642.16
Appropriations
Transfer to Statutory Reserves
1,844.58
Transfer to Other Reserves
0.00
Proposed Dividend/Transfer to
593.61
Govt
Balance c/f to Balance Sheet
0.00
Total
2,438.19
Balance Sheet
Mar '14
Mar '13
Mar '12
Mar '11
Mar '10
Page 38
Capital and Liabilities:

Total Share Capital
Equity Share Capital
Share
Application
Money
Preference
Share
Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities &
Provisions
Total Liabilities
Assets
Cash & Balances with
RBI
Balance with Banks,
Money at Call
Advances
Investments
Gross Block
Revaluation Reserves
Accumulated
Depreciation
Net Block
Capital
Work
In
Progress
Other Assets
Total Assets
Contingent Liabilities
Bills for collection
Book Value (Rs)
12 mths
12 mths
12 mths
12 mths
12 mths
461.26
461.26
443.00
443.00
443.00
443.00
443.00
443.00
410.00
410.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
29,158.85 24,434.79
29,620.11 24,877.79
420,722.82355,855.99
27,230.64 20,283.37
447,953.46376,139.36
20,181.82
20,624.82
327,053.73
15,525.39
342,579.12
17,498.46
17,941.46
293,972.65
14,261.65
308,234.30
12,129.11
12,539.11
234,651.44
8,440.56
243,092.00
14,348.29 11,325.45
8,891.12
7,804.64
6,977.30
491,921.86412,342.60
Mar '14 Mar '13
372,095.06
Mar '12
333,980.40
Mar '11
262,608.41
Mar '10
12 mths
12 mths
12 mths
12 mths
22,153.78 15,405.93
17,795.14
22,014.79
15,719.46
22,674.93 19,308.77
10,384.27
8,693.32
3,933.75
301,067.48242,176.62
126,828.26121,132.83
6,641.56 2,862.72
0.00
0.00
232,489.82
102,057.43
4,858.37
2,065.14
212,467.17
83,699.92
4,686.15
2,098.36
169,334.63
69,676.95
4,480.37
2,132.68
0.00
0.00
2,000.84
1,841.74
1,620.99
6,641.56
2,862.72
792.39
746.05
726.70
0.00
0.00
0.00
0.00
0.00
12,555.85 11,455.73
491,921.86412,342.60
8,576.01
372,095.06
6,359.15
333,980.40
3,216.92
262,608.41
239,320.37263,705.34
0.00
0.00
642.16
561.58
166,419.96
36,132.91
465.57
111,805.73
29,041.74
405.00
110,627.02
21,206.47
305.83
12 mths
Page 39
2.7 Introduction to the Topic
2.8 Introduction to customer satisfaction

Customer satisfaction is essential for the survival of any business. The best
way to find out whether customers are satisfied or not is to ask them their
opinions about your products and services, what's most important to them, and
then make improvements to those areas that have the biggest impact on their
satisfaction.
Customer satisfaction, however, is when the customer is satisfied with a
product/service that meets the customers needs, wants, and expectations.
According to Philip Kotler satisfaction is a persons feelings of pleasure or
disappointment resulting from comparing a products perceived performance
in relation to his or her expectation. As this definition makes clear,
satisfaction is a function of perceived performance and expectations. If the
performance falls short of expectations, the customer is dissatisfied; if the
performance matches the expectations, the customer is satisfied. If the
performance exceeds the customer is highly satisfied or delighted.
Highly satisfied customers:
Stays loyal longer.
Buys more as the company launches its new products and upgrades
existing products.
Talks favorably about the company and its products.
Page 40
Pays less attention to competing brand and advertisement and is less

sensitive to price.
Offer product/service ideas to the company.
Costs less to serve than new customer because transactions are
reutilized.
Consumers form their expectations on the basis of message received from
sellers side and other sources of information, which lead to dissatisfaction.
The large gap between expectation and performance, the greater the consumer
dissatisfaction.
Some consumers magnify the gap when the product is not perfect and they are
highly dissatisfied. Other consumers minimize the gap and are less satisfied.
The level of satisfaction is determined not only by the quality and type
of customer experience but also by the customers expectations. A customer
may be defined as someone who
Has a direct relationship with, or is directly affected by your agency and
Receives or relies on one or more of your agencys services or products.
The ultimate aim of measuring customer satisfaction must be to act on the
information gathered, close the gaps between the customers perception of
service and the actual service provided.
An organization with a strong customer service culture places the customer
at the center of service design, planning and service delivery.
Customer centric organizations will:
Determine the customers expectations when they plan listen to
the customer as they design.
Focus on the delivery of customer service activities value customer
feedback when they measure performance.
2.8.1 Measure Customer Satisfaction.
In todays competitive environment, every organization is trying to

attract the customers by assuring highest degree of satisfaction.
Satisfied customers are the main determinants of success or failure of the
business of an organization.
Page 41
Customer satisfaction measurement helps the organization to know:

How well are the products and services able to meet customer needs and
expectations?
How well is the business process working?
Where to make the changes to improve the performance
of product or process?
What is the effect of the changes made for improvements?
2.8.2 Information search
Once the consumer has recognized a problem, they search for information on
products and services that can solve that problem. Belch and Belch (2007)
explain that consumers undertake both an internal (memory) and an external
search. Sources of information include: Personal sources
Commercial sources
Public sources
Personal experiences
The relevant internal psychological process that is associated with information
search is perception. Perception is defined as the process by which an
individual receives, selects, organizes, and interprets information to create a
meaningful picture of the world.
2.8.3 The selective consumer behavior process
Stage Description
Selective exposure consumers select which promotional messages they
will expose themselves to.
Selective attention consumers select which promotional messages they
will pay attention to
Selective comprehension consumer interpret messages in line with their
beliefs, attitudes, motives and experiences
Selective retention consumers remember messages that are more
meaningful or important to them
The implication of the process helps develop an effective promotional
strategy, and select which sources of information are more effective for
the brand.
Page 42
2.8.4 Information evaluation
At this time the consumer compares the brand and products that are in their
evoked set. How can the marketing organization increase the likelihood that
their brand is part of the consumers evoked set? Consumers evaluate
alternatives I terms of the functional and psychological benefits that they offer.
The marketing organization needs to understand what benefits consumers are
seeking and therefore which attributes are most important in terms of making a
decision.
Purchase decision: Once the alternatives have been evaluated, the consumer is
ready to make a purchase decision.. The marketing organization must facilitate
the consumer to act on their purchase intention. The organization can use
variety of technique to achieve this. The provision of credit or payment terms
may encourage purchase, or a sales promotion such as the opportunity to
receive a premium or enter a competition may provide an incentive to buy now.
The relevant internal psychological process that is associated with purchase
decision is integration. Once the integration achieved, the organization can
influence the purchase decisions much more easily.
Post purchase evaluation: It is common for the customers to experience
concerns after making a purchase decision. This arises from a concept that is
known as cognitive dissonance. The customer, having bought a product, may
feel that an alternative would have been preferable. In these circumstances that
customer will not repurchase immediately, but is likely to switch brands next
time.
To manage the post-purchase stage, it is the job of the marketing team to
persuade the potential customer that the product will satisfy his or her needs.
Then after having made a purchase, the customer should be encouraged that he
or she has made the right decision. It is not affected by advertisement.
Internal influences: Consumer behavior is influenced by demographics,
psychographics, personality, motivation, knowledge, attitudes, beliefs and
feelings. Consumer behavior concern with consumer need consumer actions in
the direction of satisfying needs leads to his behaviour of every individual
depend on thinking.
External influences: Consumer behavior is influenced by: culture, subculture, locality, royalty, ethnicity, family, social class, reference groups,
lifestyle, sex and all.
Page 43
2.9 Literature Review

Both the technical and the functional dimensions of service management were
shown to correlate with customer satisfaction. Thus, SMEs seem to evaluate
their banking relationship not only on the basis of the effectiveness and quality
of banks' service outcomes but also on the care and manner in which the
bankers deliver services. (Lundahl, Vegholm and Silver 2009)
The purpose of this paper is to explore the relationship between corporate
social responsibility (CSR) and customer outcomes. This paper reviews the
literature on CSR effects and satisfaction, noting gaps in the literature. A series
of propositions is put forward to guide future research endeavors. By
understanding the likely impact on customer satisfaction of CSR initiatives vis-vis customer-centric initiatives, the academic research community can assist
managers to understand how to best allocate company resources in situations
of low customer satisfaction. Such endeavors are managerially relevant and
topical. Researchers seeking to test the propositions put forward in this paper
would be able to gain links with, and possibly attract funding from, banks to
conduct their research. Such endeavors may assist researchers to redefine the
stakeholder view by placing customers at the center of a network of
stakeholders. An understanding of how to best allocate company resources to
increase the proportion of satisfied customers will allow bank marketers to
reduce customer churn and hence increase market share and profits.
(McDonald and Rundle-Thiele 2008)
Ethics have always played a crucial role in the realm of business and
commerce. This paper aims to extract the principle factors of ethical practices
Page 44
to develop a model for competitive advantage in banking and to show the

relation between ethical practice and customer satisfaction and the linked
reason for satisfaction as a tool for competitive advantage. Based on the
literature review, ethical issues in banking have been identified as a foundation
work. Then an empirical study using survey research has been completed. The
survey questionnaire has been designed using the literature and pilot survey
input. Factor analysis has been conducted to derive ethical factors for
competitive advantage from the survey data, which included 186 responses. ?
2 tests were also carried out to show the linked .From the analysis; two
principle factors have been extracted: the cost leveraging factor; and the value
leveraging factor which lead to competitive advantage. Moreover, it also
revealed that high ethical practice results in high customer satisfaction and
performance. (Tesfom and J. 2011)
This research investigated the relationship between three elements core
service quality, relational service quality- and perceived value and customer
satisfaction and future intentions across four services. The results revealed that
core service quality (the promise) and perceived value were the most important
drivers of customer satisfaction with relational service quality (the delivery) a
significant but less important driver. A direct link between customer
satisfaction and future intentions was established. The relative importance of
the three drivers of satisfaction varied among services. Specifically, the
importance of core service quality and perceived value was reversed depending
on the service. A major conclusion was that both perceived value and service
quality dimensions should be incorporated into customer satisfaction models to
provide a more complete picture of the drivers of satisfaction. . (Gordon H.G.
McDougall, Birch Journal of Services Marketing Volume: 25 Issue:
5 2011)
Results from independent two-sample t-tests and logistic regression support all
five hypotheses, confirming that young and older bank customers differ
significantly in their perception of switching barriers: relational benefits,
switching costs, availability and attractiveness of alternatives, service recovery
and the duration of time they intend to end their relationship with their banks.
This study was conducted among employees of two higher education
institutions. Thus, further research needs to test the research results in a diverse
population. Since younger customers are more likely to change their banks
easily, if retail banks want to retain younger customers they need to offer more
meaningful incentives to younger customers than they offer to older customers.
Page 45
In terms of practice the findings in this research highlight the need for
managers to design different switching barrier packages for each customer age
group. (Goitom Tesfom, Nancy J. Birch Journal of Services
Marketing Volume: 25 Issue: 5 2011)
This research investigated the relationship between three elements core
service quality, relational service quality- and perceived value and customer
satisfaction and future intentions across four services. The results revealed that
core service quality (the promise) and perceived value were the most important
drivers of customer satisfaction with relational service quality (the delivery) a
significant but less important driver. A direct link between customer
satisfaction and future intentions was established. The relative importance of
the three drivers of satisfaction varied among services. Specifically, the
importance of core service quality and perceived value was reversed depending
on the service. A major conclusion was that both perceived value and service
quality dimensions should be incorporated into customer satisfaction models to
provide a more complete picture of the drivers of satisfaction. (Gordon H.G.
McDougall, (Professor of Marketing, School of Business and Economics,
Wilfred Laurier University, Waterloo, Ontario, Canada), Terrence
Levesque, (Professor of Economics, School of Business and Economics,
Wilfrid Laurier University, Waterloo, Ontario, Canada)
Page 46
2.10 Objectives of the Study

To collect information of other Banks.
To identify the major attributes of customer satisfaction.
To study customer perception about Canara BANK Current Account
services
To draw the comparative analysis of Canara BANK. .
To identify and study the various ways of ensuring customer
Satisfaction adopted by Canara BANK Vs other Banks.
Page 47
CHAPTER 3
Research Methodology
Research is common refers to search for knowledge. It is the pursuit of truth
with the help of study, observation, composition and experiment.
Research methodology is a systematic way to solve the research problems. It
helps in studying the various steps that are adopted by the researcher to study
the research problems along with the logic behind the It describe mail what
must be done, how will be done. What data will be needed and how the data
will be analyzed.
3.1 Research Objectives
Top mind awareness of consumers for banks offering
various retail products.
Factors influencing their purchase decision.
To study the comparative influence of various mediums of
advertisements in creating Awareness amongst the consumers.
To find the immediate competitors in the minds of consumer for
every retail product.
Page 48
3.3 Population
The population consisted of people having a current account in Canara
Bank
3.2 Sample Size
A random sample of 50 were administered with the
questionnaire and responses collected.
3.3 Research Area
The research was carried out at Sector 4, Panchkula, Haryana.
3.4 Descriptive Research

Descriptive research includes surveys and fact-finding enquires of
different kinds. The major purpose of descriptive research of the state of
affairs as it exists at present. In social science and business research, we
quite often use the term Ex post facto research for descriptive research
studies.
Descriptive research was conducted in order the study the consumer
perception about various banks offering retail products and the banks they
option for.
3.5 Sampling Procedure
This refers to the procedure by which the respondents should be chosen. In
order to obtain a representative sample, a probability sample of the population
was drawn. Probability sampling can be of the following types: Simple random sample
Stratified random sample.
Cluster (area) sample.
In this case, simple random sampling was done
Page 49
3.6 Formation of questionnaire

Quite often the questionnaire is considered as the heart of a survey
operation. Hence it should be carefully constructed. In the words of good and
Hatt, "In general, the word questionnaire refers to a device for securing
answers to questions by using a form which the respondent fills in himself."
All the questions in a questionnaire are framed with a specific objective
in mind and are placed in logical, sequential order. The questionnaire framed
for the purpose of the study consists of a limited number of questions placed
in a logical order. The questions were framed keeping in mind the educational
and social background of the companies dealers. The questions were both
open and closed ended as well as multiple choices.
3.7 Data Collection Tools

Data was collected using Questionnaires. The Questionnaire consisted of
suitable combination of Rating Scale, Ranking Scale and open ended
Questions in the level of importance.
3.8 Sources of Data
Primary source: Questionnaires were administered to people with
experience of any retail offering, currently using or used in the past.
Secondary Sources: Data was collected from the various websites from the
internet as well as magazines and books.
3.9 Respondents Profile:
Data was collected from respondents across all age and income groups. Data
relating to age was collected. This segmentation helped us to gain insights
into the perception and preferences across all age groups.
3.10 Organizing the Data
The data collected during data collection process are organized and presented
in a comprehensible sequence to make them more meaningful.
3.11 Presentation of Data
After the data has been properly organized, it is ready for presentation. There
Page 50
are different modes of presentation like tables, charts etc. The main objectives
of presentation are to put collected data into an easy readable form.
3.12 Analysis of Data
After organizing and presenting the data, the researchers then have to
proceed towards conclusion by logical inferences. The raw data is then
analyzed:
By bringing raw data to measured data.
Summarizing the data.
3.13 Interpretation of Data
Interpretation means to bring out meaning of data or to convert more data into
information. From the analysis of data the various conclusions are find out on
the basis of logical inferences.
3.14 Classification of Data
It refers to the process of arranging data into homogenous classes. Subsequent
to the collection of data, the results were sorted out and arranged in
different categories like Graph, Table etc.
Page 51
Chapter 4
Data Analysis and Interpretation
Q. 1 CUSTOMER PROFILE OF SURVEYED RESPONDENTS
Table 4.1 Customer Profiles of Surveyed Respondents.
Source: questionnaire survey
Page 52

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A Project Report On

about services provided by

Canara Bank, Panchkula

Under the guidance of

The Business School, Kashmir University

I am Asrar Ahmad declare that this dissertation submitted in

The Business School, Kashmir University

I express my profound thanks to Mr. Ayoub my teacher and

The Business School, Kashmir University

3.12 Analysis of Data.................................................................................................66

The Business School, Kashmir University

The Business School, Kashmir University

1.2 History of Banking in India

The Business School, Kashmir University

1.2.3 Phase III

The Business School, Kashmir University

1.3 Indian Banking Industry

The Indian banking Industry is in the middle of an IT revolution, Focusing on

The Business School, Kashmir University

The Business School, Kashmir University

2.1.1 Major Banks in India

Indian Overseas Bank

The Business School, Kashmir University

2.1.2 Punch lines of Some Banks

Service to grow, grow to service

Poised for higher growth

The Business School, Kashmir University

The friendly housing loan

2.1.3 Fact Files of Banks in India

The first bank in India to be given an ISO Certification.

The first bank in Northern India to get ISO 9002

Punjab and Sind

The first Indian bank to have been started solely with

The first among the private sector banks in Kerala to

South Indian Bank

India's oldest, largest and most successful commercial

India's second largest private sector bank and is now the

The Federal Bank

Bank which started as private shareholders banks, mostly

The first Indian bank to open a branch outside India in

The Business School, Kashmir University

2.1.4 Public Sector Banks

The Business School, Kashmir University

United Bank of India

List of State Bank of India and its subsidiary, a Public Sector

State Bank of India.

2.1.5 Private Sector Banks

The Business School, Kashmir University

2.2 Canara Bank

Public (BSE: 532483, NSE: CANBK)

Canara Bank Hindu Permanent Fund (1906)

A. C. Mahajan, (Chairman & MD)

The Business School, Kashmir University

"A good bank is not only the financial heart of the

The Business School, Kashmir University

Canara Bank is a major financial service. It was established in India in 1906,

several training institutes and spearheading financial inclusion objective.

The Business School, Kashmir University

2.2.3 Significant Milestones