A Research Report

On
A study on comparative analysis of stress

management of employees in public sector

and private sector banks

A research report submitted in partial fulfillment of the requirement for the degree of the

MASTER OF BUSINESS ADMINISTARTION

(2015-17)

Submitted To: Submitted By:

Dr. Vikramjit Kaur Deepak Rawat

Professor MBA-IV (HR)

 Roll No-1513468

RAYAT INSTITUTE OF MANAGEMENT

RAILMAJRA, ROPAR

Declaration

I Deepak Rawat, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the requirement of a
degree programme. Any literature, data or works done by others and cited within this project
report has been given due acknowledgment and listed in the reference section.

Deepak Rawat
Roll No. -1513468
MBA 4th Sem.
 Acknowledgment

Acknowledgments I take this opportunity to render my deep sense of gratitude to my supervisor,

Dr. Vikramjit Kaur, Department of Management Studies for her constant and valuable guidance
in the truest sense throughout the course of the work. It was his encouragement and support from
the initial to the final level enabled me to develop an understanding of the topic.
Every time I had a problem, I would rush to her for his advice, and she would never ever let me
down. Her timely suggestions helped me to circumvent all sorts of hurdles that I had to face
throughout my work. I am deeply indebted for her motivation and guidance.
I would also like to extend my sense of gratitude to Dr. Vikramjit Kaur Head, Department of
Management Studies for his constant motivation and inspiration.
Thanks go out to all our friends as they have always been around to provide useful suggestions,
companionship and created a peaceful research environment.
I wish to acknowledge the continuous support and blessings of my parents which made this work
possible. Although they were physically far away from me, their immense faith and wish is
gratefully acknowledged. Finally I believe this research experience will greatly benefit my career
in the future.

Deepak Rawat
 Preface

The study of human resource management is one of the major criteria in the Banking sector.
Human resource is the heart of the organization. By this research project we will be able to know
to reduce the stress level of the employees working in the Banks. By this way the productivity of
the employee increases.
Now a day the banking sector is booming in a high speed that the people have to work for
prolonged hours to maintain the standard of living and achieve their basic needs. So is the
condition in the hospitals, colleges, BPOs and lots of other places. In spite of having the modern
technologies and facilities, people are feeling themselves to be work loaded and stressed. Stress
arises because of many reasons which are discussed in the following project. The project report
also contain techniques how to reduce the stress and overcome such problems.
To identify the level of stress among the people who work I have tried to survey the people
working in Banks. Stress arises because of overload of work, responsibilities etc. starting the
topic of stress; lets first understand what stress is.
 Index

Contents Page No
Declaration
Acknowledgment
Preface
Chapter 1 Company Profile 6-46
1.1 Introduction to Banking
1.2 Banking in India
1.3 History of banking in India
1.4 Adoption of Banking Technology
1.5 Expansion of Banking Infrastructure
1.6 Types of Bank
1.7 Function of l banks
1.8 Public Sector Banks and Private Sector Banks
1.9 Banks under study
1.10 Business of Banking
Chapter 2 Introduction on Topic 47-58
Chapter 3 Literature Review 59-63
Chapter 4 Objective of the Study 64-65
Chapter 5 Limitations of the Study 66-67
Chapter 6 Research Methodology 68-70
Chapter 7 Data Interpretation 71-79
Chapter 8 Findings 80-83

Chapter 9 Suggestions & Recommendations 84-85

Chapter 10 Conclusion 86-87
Chapter 11 Bibliography 88-89
Chapter 12 Annexure 90-93

CHAPTER 1
Industry profile
1.1 Introduction to Banking:
Bank is defined in many ways by various authors in the book son economics and commerce. It is
very difficult to define a bank; because a bank performs multifarious functions may be defined in
many ways according to their functions.
The evolution of different types of banks, each specializing in a particular field, gives emphasis
on each and every kind of bank. A general and comprehensive definition to cover all types of
banking institutions would be unscientific and probably impossible. Each type of bank should
have its own definition, explaining its specialized functions. Legislators have understood this
difficulty and that is why the bill of exchange Act 1882 (England) defines
A bank includes a body of persons, whether incorporated or not, who carry on the business of
banking
From this definition it is clear to us that any institution, which performs the various banking
functions, may be termed as bank. But in practice it is found that many banking functions vary
from time to time and country to country. It is not possible on the part of a single bank to
perform all the banking functions at a time. So there originated numbers of specialized banks
with the objective of performing one or more functions. As for example, Central Bank,
Commercial bank, Industrial Bank, Agricultural Bank, Co-operative Bank etc., are seen in the
practical field.
Dr. Herbert L. Hart has defined a banker as A banker is one who in the ordinary course of
business hon ours cheques drawn upon him by persons for whom he receives money on current
account
According to Sir John Paget No one and nobody corporate and otherwise can be a banker who
does not (i) take deposit accounts (ii) take current accounts (iii) issue and pay cheques drawn
upon him(iv) collect cheques crossed and uncrossed for his customers
Hilton banking commission defines bank or banker in the following words: Every person, firm
or company using in the description or its title, bank or banker or banking and accepting deposits
of money subject to withdrawal by cheques, draft or order In view of the above definitions, a
simple and short definition can be given as

Bank is an institution, which deals in money and credit

According to this precise definition a bank accepts deposits from public and makes advances and
loans to them. In practice bank receives deposits of money in savings and current accounts at
lower rate of interest or profit and gives on credit to needy persons and businessmen at a higher
rate of interest or profit. It also transfers money for the clients from one city or country to
another and also performs various other agency services for earnings.

1.2 Banking in India:

Banking in India in the modern sense originated in the last decades of the 18th century. The first
banks were Bank of Hindustan (1770-1829) and The General Bank of India, established in 1786
and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost immediately became the
Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of
Bombay and the Bank of Madras, all three of which were established under charters from the
British East India Company. The three banks merged in 1921 to form the Imperial Bank of India,
which, upon India's independence, became the State in 1955. For many years the presidency
banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935. In 1969 the Indian government nationalized all the major banks that it did
not already own and these have remained under government ownership. They are run under a
structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete
and operate as commercial banks. The Indian banking sector is made up of four types of banks,
as well as the PSUs and the state banks; they have been joined since the 1990s by new private
commercial banks and a number of foreign banks. Banking in India was generally fairly mature
in terms of supply, product range and reach- even though reach in rural India and to the poor still
remains a challenge. The government has developed initiatives to address this through the State
Bank of India expanding its branch network and through the National Bank for Agriculture and
Rural Development with things like micro finance.
Indian Banking Industry currently employees 1,175,149 employees and has a total of 109,811
branches in India and 171 branches abroad and manages an aggregate deposit of 67504.54 billion
(US$1.1 trillion or 820 billion) and bank credit of 52604.59 billion (US$880 billion or 640
billion). The net profit of the banks operating in India was 1027.51 billion (US$17 billion or 12
billion) against a turnover of 9148.59 billion (US$150 billion or 110 billion) for the fiscal year
2012-13.
1.3History of banks in India:

The Indian Banking Starts from Bank of Hindustan Established in 1770 and it was first bank at
Calcutta under European management. It was liquidated in 1830-32.Evolution of banking in
India started From Bank of Hindustan in 1770, and this evolution can be divided into three
different periods as follows:

Phase I: Early phase of primitive Indian banks to Nationalization of Banks in 1969

Phase II: From Nationalization of India banks in 1969 up to advent of liberalization and banking
reforms in 1991
Phase III: From Indian Financial and Banking Sector Reforms 1991 onward In 1786 General
Bank of India was set up.

The largest bank, and the oldest still in existence, is the State Bank of India, which originated in
the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This
was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East India Company.
The three banks merged in 1921 to form the Imperial Bank of India, which, upon Indias
independence, became the State Bank of India in 1955. For many years the presidency banks
acted as quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935.
In 1969 the Indian government nationalized all the major banks that it did not already own and
these have remained under government ownership. They are run under a structure know as
profit-making public sector undertaking (PSU) and are allowed to compete and operate as
commercial banks. The Indian banking sector is made up of four types of banks, as well as the
PSUs and the state banks, they have been joined since the 1990s by new private commercial
banks and a number of foreign banks.
Vision:

AIBOC (All India bank officer confederation) is a value based Trade Union, committed to
consolidation of Bank Officers Movement and the entire Managerial Staff in India and abroad. It
is against Exploitation, Victimization and Attacks on the Working Class. Through Dedicated
Service and Struggle, it upholds the Dignity, Self esteem, Professional competence of its
Members to seek Fair, Equitable Compensation and Service Conditions.
AIBOC is Politically not affiliated, Self Reliant, Internally Led, Independent Trade Union
upholding Democratic values and involving itself in socially relevant issues. It is committed to
National Unity, National Interest and the Public Sector.

Mission

1. To carry forward the interests of Bank Officers working in India and abroad.
2. To remain always committed for a larger Consolidation of Managerial Staff all over the
country.
3. To campaign in favor of Public Sector for protecting and furthering Public Interest.
4. Through determined, sustained Campaign and struggles strives to improve the service
conditions by effectively using bipartite machinery.
5. To extend constructive and positive support to the Banks,in poverty alleviation programmes
and for the improvement of the economy.
6. To work towards continuous improvements for the purpose of enhancement of customer
satisfaction through dedicated customer service.
7. To Continuously search for healthy interaction amongst members and society, through
enhancement of awareness and involvement in non-bargaining issues like Economic Policy,
Health of the Banks, Social Service etc.,
8. To Work as a Nodal point for organizing the Professional Workers of different sectors in
India.
9. To strive to organize the unorganized sector for protecting and furthering their Dignity and
Human rights.
10. To uphold the dignity and self esteem of the working class.
11. To maintain fraternal relationship with other trade unions.
12. To campaign in favor of alternate Economic and Banking Policy, committed to the principles
of state ownership.
13. To seek and achieve a stress free work atmosphere in the Banking Industry for Officers.

Value Statement
Affiliate wise Autonomous; Confederation wise Supportive.
Inculcating a sense of belonging amongst the Members, Affiliates and the Working Class at
large.
1. To be sensitive and to protect Human Dignity and Self-Respect.
2. To improve Professional Outlook and Commitment to the Institution.
3. To seek continuous Enhancement of Working Knowledge and Skills through, Research,
Training and Development.
4. To root out Corruption at all levels.
5. To work for the National interest and to confront New Challenges with Eternal Vigilance,
Determination and Bold Initiatives.
6. To Resolve Internal Organizational Challenges through Mutual Dialogue, Discussion and
Consensus.
7. To Work Democratically to Enhance Unity and Camaraderie amongst Members and
Affiliates.
{Adopted in Vagamon Conclave}
Comrades, it was a historic occasion that, during the Silver Jubilee year of the
Confederation, the leadership of the Confederation is coming out with Vision, Mission and Value
Statements befitting the status of the Confederation. We compliment the participants of the
Conclave for a marvelous job they have accomplished.
1.4 Banking structure in India

1. Scheduled banks: A scheduled bank is a bank that is listed under the second schedule
of the RBI Act, 1934. In order to be included under this schedule of the RBI Act, banks
have to fulfill certain conditions such as having a paid up capital and reserves of at least
0.5 million and satisfying the Reserve Bank that its affairs are not being conducted in a
manner prejudicial to the interests of its depositors. Scheduled banks are further classified
into commercial and cooperative banks.

(a) Commercial Banks

Commercial banks may be defined as, any banking organization that deals with the deposits and
loans of business organizations.Commercial banks issue bank checks and drafts, as well as
accept money on term deposits. Commercial banks also act as moneylenders, by way of
installment loans and overdrafts.Commercial banks also allow for a variety of deposit accounts,
such as checking, savings, and time deposit. These institutions are run to make a profit and
owned by a group of individuals.

1.Public Sector Banks:

These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

2.Private Sector Banks:

These are banks majority of share capital of the bank is held by private individuals. These banks
are registered as companies with limited liability. Examples of private sector banks are: ICICI
Bank, Axis bank, HDFC, etc.

3.Foreign Banks:

These banks are registered and have their headquarters in a foreign country but operate their
branches in our country. Examples of foreign banks in India are: HSBC, Citibank, Standard
Chartered Bank, etc

4.Regional Rural Banks:

Regional Rural Banks were established under the provisions of an Ordinance promulgated on the
26th September 1975 and the RRB Act, 1976 with an objective to ensure sufficient institutional
credit for agriculture and other rural sectors. The area of operation of RRBs is limited to the area
as notified by GoI covering one or more districts in the State.

(b) Cooperative Banks

A co-operative bank is a financial entity which belongs to its members, who are at the same time
the owners and the customers of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a common interest. Co-
operative banks generally provide their members with a wide range of banking and financial
services (loans, deposits, banking accounts, etc).
 1. Unscheduled banks
Non- scheduled banks are those which are not included in the second schedule of the RBI Act,
1934. At present these are only three such banks in the country.

1.5 Healthy Growth of Banking Sector - Deposits

During FY0616, deposits grew at a CAGR of 11.47 per cent and reached 1.46 trillion in FY16.

Strong growth in savings amid rising disposable income levels are the major factors influencing
deposit growth.

Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have also increased. As of October
2016, US$ 6,755.5 million were deposited, while 249.8 million accounts were opened.

March, 2017

The Indian banking system consists of 26 public sector banks, 20 private sector banks, 43 foreign
banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550 rural cooperative
banks, in addition to cooperative credit institutions.
As on September 2016, the outstanding credit to NBFCs stood at US$ 55.27 billion, growing at
25 per cent on year-on-year basis. Bank credit to non-banking finance companies (NBFCs) has
touched the highest in three years.

Indian banks are increasingly focusing on adopting integrated approach to risk management.
Banks have already embraced the international banking supervision accord of Basel II.
According to RBI, majority of the banks already meet capital requirements of Basel III, which
has a deadline of March 31, 2019. Most of the banks have put in place the framework for asset-
liability match, credit and derivatives risk management.

Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) are growing. As on November 09,
2016, US$ 6,971.68 million were deposited, while 255.1 million accounts were opened.

Rising incomes are expected to enhance the need for banking services in rural areas and
therefore drive the growth of the sector; programmes like MNREGA have helped in increasing
rural income aided by the recent Jan Dhan Yojana. The Reserve Bank of India (RBI) has relaxed
its branch licensing policy, thereby allowing banks (which meet certain financial parameters) to
set-up new branches in tier-2 to tier-6 centers, without prior approval from RBI. It has
emphasized the need to focus on spreading the reach of banking services to the un-banked
population of India.
1.6 Swot Analysis

A SWOT analysis consists of evaluating a company internal strength and weakness and its
external opportunities and threats. The strategy must produce a good fit between a firms internal
capability and external situation. A scan of internal and external environment is an important part
of the strategic planning process. Environmental factors internal to the firms can be classified as
strength (S) and weakness (W), and factors external to the firm can be classified as opportunity
(O) and Threat (T). Such analysis of internal and external factors is referred to as SWOT
analysis. The SWOT analysis has been useful tool for the industry. The process of utilizing the
SWOT approach requires an internal survey of opportunities and threats. The following are the
strengths, weakness, opportunity, and threats of public and private banks

1.6.1 STRENGTHS:

Banking is as old as Human race : Banking industry is the driving force to any nation. It helps in
shaping the life of human race may be some time merely by Exchange (which was called barter
system), or by transaction or by facilitating advances.

Source of employment & GDP growth : There is a consensus among economists that
development of the financial system contributes to economic growth. Financial development
creates enabling conditions for growth through either a supply-leading (financial development
spurs growth) or a demand-following. It is this industry which continuously works to secure
financial stability, facilitate international trade, promote employment, & reduce poverty around
the world.

1.Hedge from risk : Whether it is natural calamity or man-made calamity banks mitigate the
after effect of the destruction by providing financial support to the victims to stand up & lead a
peaceful life again.

2.Diversified services: Banking industry offer services from CASA to insurance, to loan, to
investment.

3.Connecting People: With the advent of new age technological advancement Banks have made
the life of the common man easier. People can transact on real time basis in many places.
4.Changing from mere savings & loan facilitator role: Top priorities of banks now days
include regulatory compliance, improving asset quality, enhancing customer centricity, focusing
on digital convergence, and tackling competition from non-banks. Banks are therefore making
business and technology investments to change their business models.

1.6.2 WEAKNESS

1.Lack Of coordination: The global banking industry faces short-term uncertainty due to the
debt crises that challenge several major economies. Industry assets stand at $143 trillion
(2013)&the EU is the largest regional market, with over 57% of the global market. Volatility in
different market/Currencies has created problems for the banks in order to work properly across
the borders.

2.Vulnerable to risk: Since this sector deals with finances, it is the most risky sector which can
change the fate of any business/Industry.

3.High NPAs: Rise in Retail & corporate NPAs (Non-performing assets) is the single major
issue this sector is going through worldwide.

4,Cant reach to Under-penetrated market: Due to several conflicting objectives of

government& banks which goes hand in hand, rural areas of developing nations are still not in
the shadow of banks. Although PMJDY (PradhanMantri Jan DhanYojna) implemented by the
Indian banks got acknowledged by World Bank for financial inclusion but the Idea is not fully
capitalized even in the home country.

Structural weaknesses such as a fragmented industry structure, restrictions on capital availability

and deployment, lack of institutional support infrastructure, restrictive labor laws, weak
corporate governance, Political pressure and ineffective regulations.
1.6.3 OPPORTUNITIES

1.Expansion: Penetrating to the rural markets & bringing the rural masses under the purview of
organized banking will be the objective of the Banks in decades to come.

2.Changing Socio-cultural & demographic factors: Given the demographic shifts resulting
from changes in age profile and household income, consumers will increasingly demand
enhanced institutional capabilities and service levels from banks.

3.Rise in private sector banking: Banking Industry across the world is highly regulated &lead
by PSUs with their respective central banks. With the advent of private sector banks this sector
is going through structural & functional changes mainly due to the adaptation of the advanced
technologies & increased competition thereby benefiting to the end customers.

1.6.4 THREATS

1.Recession: It is one of the major threats to the financial system of the nation. Traumatic shock
of Economic crises & collapse of the several businesses can affect the banks and vice-verse.

2.Stability of the system: Failure of some weak banks has often threatened the stability of the
system.

3.Competition: Competition from NBFCs (Non-banking financial companies) like insurance

companies & mutual fund companies can affect the business of Banks.
1.7 Functions of bank
The functions of banks are briefly highlighted in following Diagram or Chart

Primary and secondary functions of bank:

A. Primary Functions of Banks

The primary functions of a bank are also known as banking functions. They are the main
functions of a bank. These primary functions of banks are explained below.

1. Accepting Deposits:

The bank collects deposits from the public. These deposits can be of different types, such as :-

1. Saving Deposits

2. Fixed Deposits

3. Current Deposits

4. Recurring Deposits

1. Saving Deposits:
This type of deposits encourages saving habit among the public. The rate of interest is low. At
present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restrictions.
This account is suitable to salary and wage earners. This account can be opened in single name
or in joint names.

2. Fixed Deposits:

Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid,
which varies with the period of deposit. Withdrawals are not allowed before the expiry of the
period. Those who have surplus funds go for fixed deposit.

3. Current Deposits:

This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is
paid. In fact, there are service charges. The account holders can get the benefit of overdraft
facility.

4. Recurring Deposits:

This type of account is operated by salaried persons and petty traders. A certain sum of money is
periodically deposited into the bank. Withdrawals are permitted only after the expiry of certain
period. A higher rate of interest is paid.
2. Granting of Loans and Advances

The bank advances loans to the business community and other members of the public. The rate
charged is higher than what it pays on deposits. The difference in the interest rates (lending rate
and the deposit rate) is its profit.

The types of bank loans and advances are :-

1. Overdraft

2. Cash Credits

3. Loans

4. Discounting of Bill of Exchange

1.. Overdraft:

This type of advances are given to current account holders. No separate account is maintained.
All entries are made in the current account. A certain amount is sanctioned as overdraft which
can be withdrawn within a certain period of time say three months or so. Interest is charged on
actual amount withdrawn. An overdraft facility is granted against a collateral security. It is
sanctioned to businessman and firms.

2. Cash Credits:

The client is allowed cash credit upto a specific limit fixed in advance. It can be given to current
account holders as well as to others who do not have an account with bank. Separate cash credit
account is maintained. Interest is charged on the amount withdrawn in excess of limit. The cash
credit is given against the security of tangible assets and / or guarantees. The advance is given for
a longer period and a larger amount of loan is sanctioned than that of overdraft.

3. Loans:

It is normally for short term say a period of one year or medium term say a period of five years.
Now-a-days, banks do lend money for long term. Repayment of money can be in the form of
installments spread over a period of time or in a lumpsum amount. Interest is charged on the
actual amount sanctioned, whether withdrawn or not. The rate of interest may be slightly lower
than what is charged on overdrafts and cash credits. Loans are normally secured against tangible
assets of the company.
4. Discounting of Bill of Exchange:

The bank can advance money by discounting or by purchasing bills of exchange both domestic
and foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by
deducting usual discount charges. On maturity, the bill is presented to the drawee or acceptor of
the bill and the amount is collected.

2.Secondary Functions of Banks

The bank performs a number of secondary functions, also called as non-banking functions.These
important secondary functions of banks are explained below.

1. Agency Functions

The bank acts as an agent of its customers. The bank performs a number of agency functions
which includes :-

Transfer of Funds

Collection of Cheques

Periodic Payments

Portfolio Management

Periodic Collections

Other Agency Functions

1.Transfer of Funds:

The bank transfer funds from one branch to another or from one place to another.

2.Collection of Cheques:

The bank collects the money of the cheques through clearing section of its customers. The bank
also collects money of the bills of exchange.
3. Periodic Payments:

On standing instructions of the client, the bank makes periodic payments in respect of electricity
bills, rent, etc.

4. Portfolio Management:

The banks also undertakes to purchase and sell the shares and debentures on behalf of the clients
and accordingly debits or credits the account. This facility is called portfolio management.

5. Periodic Collections:

The bank collects salary, pension, dividend and such other periodic collections on behalf of the
client.

6. Other Agency Functions:

They act as trustees, executors, advisers and administrators on behalf of its clients. They act as
representatives of clients to deal with other banks and institutions.

2. General Utility Functions

The bank also performs general utility functions, such as :-

1. Issue of Drafts, Letter of Credits, etc.

2. Locker Facility

3. Underwriting of Shares

4. Dealing in Foreign Exchange

5. Project Reports

6. Social Welfare Programmes

7. Other Utility Functions

1.. Issue of Drafts and Letter of Credits:

Banks issue drafts for transferring money from one place to another. It also issues letter of credit,
especially in case of, import trade. It also issues travellers' cheques.
2.Locker Facility:

The bank provides a locker facility for the safe custody of valuable documents, gold ornaments
and other valuables.

3. Underwriting of Shares:

The bank underwrites shares and debentures through its merchant banking division.

4. Dealing in Foreign Exchange:

The commercial banks are allowed by RBI to deal in foreign exchange.

5.Project Reports:

The bank may also undertake to prepare project reports on behalf of its clients.

6. Social Welfare Programmes:

It undertakes social welfare programmes, such as adult literacy programmes, public welfare
campaigns, etc.

7. Other Utility Functions:

It acts as a referee to financial standing of customers. It collects creditworthiness information

about clients of its customers. It provides market information to its customers, etc. It provides
travellers' cheque facility.

1.8 Role of Reserve bank of India (RBI) in Indian banking system:

The Reserve Bank of India performs this function under the guidance of the Board for Financial
Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central
Board of Directors of the Reserve Bank of India.
Main Functions
1.Monetary Authority:

Formulates, implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

2.Regulator and supervisor of the financial system:

Prescribes broad parameters of banking operations within which the country's banking and
financial system functions.

Objective: maintain public confidence in the system, protect depositors' interest and provide
cost-effective banking services to the public.

3.Manager of Foreign Exchange

Manages the Foreign Exchange Management Act, 1999.

Objective: to facilitate external trade and payment and promote orderly development and
maintenance of foreign exchange market in India.

4.Issuer of currency:

Issues and exchanges or destroys currency and coins not fit for circulation.

Objective: to give the public adequate quantity of supplies of currency notes and coins and in
good quality.

5.Developmental role

Performs a wide range of promotional functions to support national objectives.

Related Functions to development role are:

a. Banker to the Government: performs merchant banking function for the central and the
state governments; also acts as their banker.

(b) Banker to banks: maintains banking accounts of all scheduled banks.

1.9 Public Sector Banks and Private Sector Banks

19.1 Introduction to Public Sector Banks:

Public Sector Banks (PBS) are banks where a majority stake (i.e. more than 50%) is held by a
government.The shares of these banks are listed on stock exchanges. There are a total of 27 PBS
in India [21 Nationalized banks + 6 State bank group (SBI + 5 associates) ].

In 2011, IDBI bank and in 2014 Bharatiya Mahila Bank were nationalized with a minimum
capital of Rs 500 crore.

1.9.1.1 Emergence of public sector banks:

The Central Government entered the banking business with the nationalization of the Imperial
Bank Of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank
was named as the State Bank of India. The seven other state banks became the subsidiaries of the
new bank when nationalized on 19 July 1960. The next major nationalization of banks took place
in 1969 when the government of India, under prime minister Indira Gandhi, nationalized an
additional 14 major banks. The total deposits in the banks nationalized in 1969 amounted to 50
corers. This move increased the presence of nationalized banks in India, with 84% of the total
branches coming under government control.

The next round of nationalization took place in April 1980. The government nationalized six
banks. The total deposits of these banks amounted to around 200 corers. This move led to a
further increase in the number of branches in the market, increasing to 91% of the total branch
network of the country. The objectives behind nationalization were:

1. To break the ownership and control of banks by a few business families,

2. To prevent the concentration of wealth and economic power,

3. To mobilize savings from masses from all parts of the country,

4. To cater to the needs of the priority sectors......

Total public sector banks are 27 including IDBI and BMB

1.9.1.2 Public sector banks before the economic liberalization:
The share of the banking sector held by the public banks continued to grow through the 1980s,
and by 1991 the public sector banks accounted for 90% of the banking sector. A year later, in
March, 1992, the combined total of branches held by public sector banks was 60,646 across
India, and deposits accounted for Rs. 1,10,000 crore. The majority of these banks were
profitable, with only one out of the 27 public sector banks reporting a loss.

Problem, with nationalized banks reporting a combined loss of Rs. 1160 crores. However, the
early 2000s saw a reversal of this trend, such that in 2002-03 a profit of Rs. 7780 corers by the
public sector banks: a trend that continued throughout the decade, with a Rs. 16856 crore profit
in 2008-2009.

1.9.2 Introduction to private sector banks in India

The private-sector banks in India represent part of the indian banking sector that is made up of
both private and public sector banks. The "private-sector banks" are banks where greater parts of
state or equity are held by the private shareholders and not by government.

Banking in India has been dominated by public sector banks since the 1969 when all major banks
were nationalized by the Indian government. However, since liberalization in government
banking policy in the 1990s, old and new private sector banks have re-emerged. They have
grown faster & bigger over the two decades since liberalization using the latest technology,
providing contemporary innovations and monetary tools and techniques.

The private sector banks are split into two groups by financial regulators in India, old and new.
The old private sector banks existed prior to the nationalization in 1969 and kept their
independence because they were either too small or specialist to be included in nationalization.
The new private sector banks are those that have gained their banking license since the
liberalization in the 1990s.
1.9.2.1 Old private-sector banks

The banks, which were not nationalized at the time of bank nationalization that took place during
1969 and 1980 are known to be the old private-sector banks. These were not nationalized,
because of their small size and regional focus.
Most of the old private-sector banks are closely held by certain communities their operations are
mostly restricted to the areas in and around their place of origin. Their Board of directors mainly
consist of locally prominent personalities from trade and business circles. One of the positive
points of these banks is that, they lean heavily on service and technology and as such, they are
likely to attract more business in days to come with the restructuring of the industry round the
corner.

1.9.2.2 List of the old private-sector banks in India

Name Year

1. City Union Bank 1904

2. Karur Vysya Bank 1916
3. Catholic Syrian Bank 1920
4. Tamilnad Mercantile Bank 1921
5. Nainital Bank ( Wholly owned subsidiary of Bank Of Baroda) 1922
6. Karnataka Bank 1924
7. Lakshmi Vilas Bank 1926
8. Dhanlaxmi Bank 1927
9. South Indian Bank 1929
10. ING Vysya Bank Merged with kotak Mahindra bank 1930
11. Federal Bank 1931
12. Jammu and Kashmir Bank 1938
13. Bank of punjab merged with Centurion Bank to form Centurion Bank
1943
of Punjab in June 2005
14. RBL Bank 1943
15. SBI Commercial and international Bank 1955
16. IDB Bank Ltd (reverse merged with parent IDBI in 2004 to become
1964
IDBI Bank. Making this public sector bank private)

1.9.2.3 New private-sector banks

The banks, which came in operation after 1991, with the introduction of economic reforms and
financial sector reforms are called "new private-sector banks". Banking regulation act was then
amended in 1993, which permitted the entry of new private-sector banks in the Indian banking s
sector. However, there were certain criteria set for the establishment of the new private-sector
banks, some of those criteria being:#The bank should have a minimum net worth of Rs. 200
crores.

The promoters holding should be a minimum of 25% of the paid-up capital.

Reliance Capital, India Post, Larsen & Toubro, Shriram Transport Finance are companies
pending a banking license with the RBI under the new policy, while IDFC & Bandhan
were given a go ahead to start banking services for 2015.
Within 3 years of the starting of the operations, the bank should offer shares to public and
their net worth must increased to 300 crores.

1.9.2.3List of the new private-sector banks in India

Name Year
1. Axis Bank (earlier UTI | 1994
2. Bank of Punjab (actually an old generation private bank since it was not
1989
founded under post-1993 new bank licensing regime)

3. Centurion Bank Ltd. (Merged Bank of Punjab in late 2005 to become

1994
Centurion Bank of Punjab, acquired by HDFC Bank Ltd. in 2008)

4. Development Credit Bank (Converted from Co-operative Bank, now DCB

1995
Bank Ltd.)
 5. ICICI Bank (previously ICICI and then both merged;total merger
1996
SCICI+ICICI+ICICI Bank Ltd)
6. IndusInd Bank 1994
7. Kotak Mahindra Bank 2003
8. Yes Bank 2005
9. Capital Local Area Bank Ltd. 2000

10. Global Trust Bank (India) (Merged with Oriental Bank of Commerce) 1994

11. Balaji Corporation Limited - Private Loan Company, not a Bank 2010

12. HDFC Bank 1994

13. Bandhan Bank 2015
14. IDFC Bank 2015

The major differences between a private and public sector bank

Shareholders
a) In a public sector bank more than fifty percentage of the stake is held by the Government.
b) In a private sector majority of the stake owned to private shareholders.
Interest Rate
Deposit interest Rates offered by public sector banks are almost the same when compared to
private sector banks.
In case of loans, interest rates are marginally lower.
Fees & Service
Private Sector Banks have made names in providing better service, however, they charge for the
extra services provided by them.
Public sector banks fees and charges are less such as on balance maintenance . A lot of public
sector banks are still picking up in the service.
Customer Base:
Mostly public sector accounts are opened for government employees for their salaries, fixed
deposits, lockers etc.
Whereas private sector bank in India target company employees,for their salary accounts, credit
cards and net banking.

Some of the public and government sector banks in the country include State Bank of India,
Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, Andhra Bank, Syndicate
Bank, Allahabad Bank, State Bank of Mysore, Bank of Maharashtra etc.
Some of the larger private sector banks in the country include ICICI Bank, HDFC Bank, Yes
Yank, IndusInd Bank, Kotak Mahindra Bank and a host of others.

1.10 Banks under study

 1. State Bank of India
2. HDFC Bank

1.10.1 State bank of India

(a) History of SBI bank:

The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of
Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal
was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15
April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks
were incorporated as joint stock companies and were the result of royal charters. These three
banks received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The Presidency banks
amalgamated on 27 January 1921, and the re-organized banking entity took as its name Imperial
Bank of India. The Imperial Bank of India remained a joint stock company but without
Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1
July 1955, the imperial Bank of India became the State Bank of India. In 2008, the Government
of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest
because the RBI is the country's banking regulatory authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made SBI
subsidiaries of eight that had belonged to princely states prior to their nationalization and
operational takeover between September 1959 and October 1960, which made eight state banks
associates of SBI. This acquisition was in tune with the first Five Year Plan, which prioritized the
development of rural India. The government integrated these banks into the State Bank of India
system to expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est. 1943) and
State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI
acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its
affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

The new logo of the SBI was the aerial view of the Kankaria Lake in Ahmedabad, Gujarat on 1
October 1971 and was designed by Shekhar Kammat at National Institute of Design.

SBI logo is inspired by Kankaria Lake, Ahmedabad.

There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline the group's operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. On
19 June 2009, the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3%
in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government
hold the balance of 1.7%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets will approach 10 trillion. The total
assets of SBI and the State Bank of Indore were 9,981,190 million as of March 2009. The
process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore
branches started functioning as SBI branches on 26 August 2010.
On 7 October 2014, Arundhati Bhattacharya became the first woman to be
appointed Chairperson of the bank.
(b) Operations of SBI bank:
SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal
Offices that are located at important cities throughout India.

(c ) Domestic presence:
SBI has 18,354 branches in India.[13] In the financial year 201213, its revenue was 2.005
trillion (US$30 billion), out of which domestic operations contributed to 95.35% of revenue.
Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in
August 2014, SBI held 11,300 camps and opened over 3 million accounts by September, which
included 2.1 million accounts in rural areas and 0.88 million accounts in urban areas.
(d) International presence:
The Israeli branch of the State Bank of India located in Ramat Gan
As of 201415, the bank had 191 overseas offices spread over 36 countries having the largest
presence in foreign markets among Indian banks. It has branches in Singapore,
Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles,
Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore
banking units in the Bahamas and Bahrain, and representative offices in Myanmar, Bhutan
and Cape Town. SBI has 7 retail banking branches in Singapore.
The Canadian subsidiary SBI Canada Bank (previously State Bank of India (Canada)) also dates
to 1982. It has six branches, four in the Toronto area and two in the Vancouver area.

(e )SBI operates several foreign subsidiaries or affiliates.

In 1990, it established an offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15
branches in major cities/towns of the country including Rodrigues.

SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The Jaffna branch
was opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri Lanka, celebrated its
150th year in Sri Lanka on 1 July 2014.

In 1982, the bank established a subsidiary, State Bank of India, which now has ten branches
nine branches in the state of California and one in Washington, D.C. The 10th branch was
opened in Fremont, California on 28 March 2011. The other eight branches in California are
located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and
Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the IndoNigerian
Merchant Bank and received permission in 2002 to commence retail banking. It now has five
branches in Nigeria.
In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal Government
owing the rest and SBI NEPAL has branches throughout the country in each and every city as
banking has become the major part of daily life for Nepalese people.
In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.
In Indonesia, it owns 76% of PT Bank Indo Monex. The State Bank of India already has a branch
in Shanghai and plans to open one in Tianjin.
In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8
million in October 2005.
In January 2016, SBI opened its first branch in Seoul, South Korea following the continuous and
significant increase in trade due to the Comprehensive Economic Partnership Agreement signed
between New Delhi and Seoul in 2009.
(f) Associate banks

Main Branch of SBI in Mumbai

SBI now has one associate bank, down from the eight that it originally acquired in 1959. All use
the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name,
followed by the regional headquarters' name:

State Bank of Patiala (founded 1917)

State Bank of Mysore (founded 1913)
State Bank of Bikaner & Jaipur (founded 1963)
State Bank of Hyderabad (founded 1941)
State Bank of Travancore (founded 1945)
Bharatiya Mahila Bank(founded 2013)
(g) The banks which are merged are:

State Bank of Saurashtra (merged 2008)

State Bank of Indore (merged 2010)

The negotiations for merging of 5 associate banks State Bank of Bikaner and Jaipur, State Bank
of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of
Travancore and Bharatiya Mahila Bank by acquire their businesses including assets and
liabilities with SBI started in 2016. The merger of these six subsidiaries was approved by Union
Cabinet on 15 June 2016.The State Bank of India and all its associate banks are identified by the
same blue keyhole logo. The State Bank of India wordmark usually has one standard typeface,
but also utilises other typefaces.
On 15 February 2017, the Union Cabinet approved the merger of 5 associate banks with SBI.

(h) Non-banking subsidiaries:

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd
SBI Factors & Commercial Services Pvt Ltd
SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
SBI DFHI Ltd
SBI Life Insurance Company Limited
SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the
remaining capital), to form a joint venture life insurance company named SBI Life Insurance
company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its
headquarters in Mumbai.
(i) Other SBI service points:

As of 31 March 2016,SBI has 49,577 ATMs & SBI group (including associate banks) has 58,541
ATMs.

(J)Listings and shareholding:

As on 31 March 2014, Government of India held around 58.59% equity shares in SBI. Life
Insurance Corporation of India is the largest non-promoter shareholder in the company with
14.99% shareholding.

Shareholders Shareholding
Promoters: Government of India 58.60%
Banks & Insurance Companies 16.79%
FIIs/GDRs/OCBs/NRIs 12.04%
Mutual Funds & UTI 03.78%
Private Corporate Bodies 02.87%
Others 5.92%
Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index,[23] and the National Stock Exchange of India, where it is a constituent
of the CNX Nifty.

Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.
(k) Employees:

SBI is one of the largest employers in the country having 222,033 employees as on 31 March
2014, out of which there were 45,132 female employees (20%) and 2,610 (1%) employees with
disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and 17,243 Schedule Tribe
(8%) employees. The percentage of Officers, Assistants and Sub-staff was 36%, 46% and 18%
respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers joined the Bank
in FY 2013-14, for expansion of the branch network and to mitigate staff shortage, particularly at
rural and semi-urban branches. Staff productivity: As per its Annual Report for FY 2013-14, each
employee contributed net profit of INR 485,000.

(l)Recruitments:

SBI has been providing its services in India as one of the biggest banking recruitment authority.
Bank job seekers know this bank as one of the biggest recruiter of probationary officers and
special officers as compared to other banks in India. In 2016, Google search trends also indicated
that SBI jobs is one of the most searched keyword as compared to other banks.

(m)Major competitors:

Some of the major competitors for SBI in the banking sector are large private sector banks ICICI
Bank, HDFC Bank, Axis Bank, IndusInd Bank, small regional banks and other public sector
banks Canara Bank, Bank of India and Bank of Maharashtra. However, in terms of average
market share, SBI is by far the largest player in the market.
(n)Merger:

The 5 associate banks namely State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Mysore, State Bank of Patiala and State Bank of Travancore, and Bharatiya Mahila
Bank are set to be merged with State Bank of India with effect from 1st April, 2017.
(o)Recent awards and recognitions:

SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a
2014 ranking.

SBI was ranked 232nd in the Fortune Global 500 rankings of the world's biggest corporations for
the year 2016.

SBI was named the 29th most reputed company in the world according to Forbes 2009 rankings

SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013, an annual study
conducted by Trust Research Advisory, a brand analytics company and subsequently, in
the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India.
1.10.2 HDFC Bank (Housing Development Finance Corporation )

The Housing Development Finance Corporation (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.

HDFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, Maharashtra It has 90,421 employees and has a presence in Bahrain, Hong Kong and
Dubai. HDFC Bank is Indias second-largest private sector lender by assets. It is the largest bank
in India by market capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top
100 Most Valuable Global Brands.
(a) Products and services:
Market leader in e-commerce, HDFC Bank provides a series of digital offerings like - 10 second
personal loan, Chillr, PayZapp, SME Bank, Watch Banking, 30-Minute Auto Loan, 15-minute
Two-Wheeler Loan, e-payment gateways, Digital Wallet, etc.

HDFC Bank provides a number of products and services which includes Wholesale banking,
Retail banking, Treasury, Auto (car) Loans, Two Wheeler Loans, Personal loans, Loan Against
Property and Credit Cards.

The latest entry in the league is 'Project AI',under which HDFC Bank, over the next few weeks,
would deploy robots at select bank branches. These robots will offer options such as cash
withdrawal or deposit, forex, fixed deposits and demat services displaying on the screen to
persons coming into the branch.
(b) Acquisitions:
HDFC Bank merged with Times Bank in February 2000. This was the first merger of two private
banks in the New Generation Private Sector Banks category.In 2008, Centurion Bank was
acquired by HDFC Bank. HDFC Bank Board approved the acquisition of CBoP for 95.1 billion
INR in one of the largest mergers in the financial sector in India.

( c) Listings and shareholding:

The equity shares of HDFC Bank are listed on Bombay Stock Exchange and the National Stock
Exchange of India. Its American Depository Shares are listed on NYSE and the Global
depository receipt are listed on the Luxembourg Stock Exchange where two GDRs represent one
equity share of HDFC Bank..

Shareholders (as of 31 December-2015) Shareholding

Promoter Group (HDFC) 21.57%
Foreign Institutional Investors (FII) 32.4%
Individual shareholders 8.5%
Bodies Corporate 7.5%
Insurance companies 5.38%
Mutual Funds/UTI 8.65%
NRI/OCB/Others 0.29%
Financial Institutions/Banks 2.75%
ADS/GDRs 18.78%
(d) Awards and Achievements:

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank".
We realised that only a single-minded focus on product quality and service excellence would
help us get there. Today, we are proud to say that we are well on our way towards that goal.
It is extremely gratifying that our efforts towards providing customer convenience have been
appreciated both nationally and internationally.

2017

IBA Banking Technology AwardsBest IT Risk and Cyber Security Initiatives

2017
Dun & Bradstreet - India's Leading India's Leading Banks - Private Sector
BFSI Companies & Awards 2017
Outlook Money Awards 2016 Bank of the year
Business Today - KPMG India's Bank Of The Year (Private Sector)
Best Banks 2016
Best Large Size Bank

Fastest Growing Large Bank

The Asset Triple A Country1. Best IPO, India
Awards 2016 2. Best QIP, India

2016
Institutional Investor All-Asia Executive Team ranking 2016 Mr. Aditya Puri ranked
-HDFC Bank ranked Best Company in Bank
BrandZ Top 50 Most Valuable Indian HDFC Bank has been ranked India's most
Brands valuable brand for the 3rd consecutive year
CNBC-TV18 India Business Leader Outstanding Business Leader of the year
Awards (IBLA) 2015-16
The Financial Express India's Best Banks Lifetime Achievement Award to Mr. Aditya
Awards Puri
IDRBT Banking Technology ExcellenceBest Bank in Banking Technology
Awards 2016 Excellence for the year 2015-16
Dun & Bradstreet Corporate Awards 2016 HDFC Bank wins Dun & Bradstreet
Corporate Award 2016 in the Banking
sector
The Financial Express India's Best Banks - Profitability: Rank 1
Awards 2015 - Efficiency: Rank 1
- Strength & Soundness: Rank 1
Outlook Money Awards 2015 - Best Bank of the year : Runner up
- Winner : Institutional Financial
Distributor of the year
Pension Fund Regulatory and- Best Performing Bank - Maximum APY
Development Authority awards for AtalSubscribers
Pension Yojana - Best Performing Bank in the Private
sector Banks category
- Best Performing Bank : Atal Pension
Yojana Carnivals in Private Sector Banks
Business Today KPMG India's Best Banks 2015 Awards
Barron's World's Top 30 CEOs Mr. Aditya Puri in Barron's Top 30 Global
CEOs for 2nd year
IBA Awards HDFC Bank wins prestigious IBA Banking
Technology Awards
Business Today Best Companies to Work for in India
NABARD Award Best Bank in JLG-Bank Linkage
programme in Assam
Business Today - KPMG India's Best BankHDFC Bank wins Bank of the year and
Best Digital Banking Initiative awards
NABARD Award - The Best Bank in SHG HDFC Bank wins NABARD Award
Credit Linkage in Tamil Nadu

2015
National PaymentsHDFC Bank wins NPCI National Payments Excellence Awards
Excellence Awards
2015
Business TodayBest CEO Award - Mr. Aditya Puri
Award
Kerala's State ForumBest Bank Branch
of Bankers' Club
Award
FinanceAsia Awards Best Equity Deal in Asia Award
IDC Insights AwardExcellence in Customer Experience
2015
QualTech Award HDFC Bank wins Award at 27th QIMPRO Convention
Lean Sigma projectBest Case Study Award
competition
 CHAPTER 2

Introduction to the topic

(Stress Management)
 Introduction on topic stress management

Introduction Stress is a universal phenomenon and now- a-days no organisation can claim to be
stress free. Every job is challenging and more demanding. It requires high standard of
performance, high quality in work and getting aspirations and expectation fulfilled. Every
employee is forced to have a stressful and hectic lifestyle. If he fails to meet, he faces stress and
other psychological problems. It effects on human body, which gives rise to tension, anxiety,
depression and anger. The united-nations international labour organisation (ILO) has defined
occupational stress as Global Epidemic. Stress has been defined as imbalance between demand
and response. Stress is a psychological reaction to the demand innate in a stressor that has the
potency to make a person feels restless or distressed because the person feels that he is not
capable of coping with these demands. Han Selye (Medical Researcher) defines stress as a non-
specific response of the body to the demand.

2.1 Features of stress

1. Stress mainly is the state of mind which creates a psycho biological reaction in the human
body.
2. It is mainly caused by a situation which makes excessive physical and psychological
demands on the part of an individual. Such situation is known as stressor or stimulus.
3. In stressful situation normally individual feels anger, tension, anxiety and depression.
4. The stressor or stimulus causing stress to one individual may not necessarily causes stress to
another individual. It depends on the capacity and the resourcefulness of the individual to
cope with that situation.
5. Stress has both positive and negative outcomes. If it is at a desirable level it may induce an
individual more efficient, creative and hard working to cope with them adverse situations
and vice verse.
6. Stress may be two types. The first type is created by desirable and pleasurable situation such
type of stress are known as eustress. e.g unexpected salary hike and promotion of an
employees to a higher position. The second type is created by undesirable situation such type
 of stress are known as distress, E.g. work pressure and long working hours. Distress is
considered harmful for employees and organisation.
Hans Selye has explained General Adaptation Syndrome (GAS) model included three stages;
alarm, resistance and exhaustion. Alarm stage of the GAS alerts the individual to the
environmental condition and prepares the body for resistance stage, it is in the resistance stage of
the GAS where an individual struggles, fights, and exposed to health risk and distress. Finally,
the exhaustion stage as this capacity diminishes.

Employers should give a stress-free work environment, where stress creates problems for
employees and take adequate action to reduce stress. Stress in the workplace not only reduces
productivity but also increases management pressures and makes people physically and mentally
ill. Workplace stress affects the performance of employees. Stress affects memory, concentration
and learning power of employees. Stress believed to drive 70% of visits to doctors, and 85% of
serious illnesses. Stress at work also provides a serious risk of clash for all employers and
organisations carrying significant drawback for damages, bad publicity and loss of reputation.
Dealing with stress-related claims also consumes vast amount of management time. Therefore,
there are clearly strong economic and financial reasons for organisations to manage and reduce
stress at work.

According to a survey conducted by professional services company Towers Watson, major

causes of stress include unclear or conflicting job expectations (40%), inadequate staffing and
lack of support, uneven workload or performance in groups (38%)and lack of work-life balance
(38%). Globally, inadequate staffing is known as the single most important contributor to work-
related-stress.

2.2Stress and Job Performance

Stress has a direct impact on employee performance. Stress leads to improve performance to an
optimum point beyond the optimum point further stress and arousal have detrimental effect on
performance. This is because employees who work in highly stressful situations may feel tired
and depressed. They also create physical and mental problem such as high blood pressure,
hearing problem and mental disorder.These mental and physical disorders not only affect the
performance of the employees but also affect the productivity of the organisation. Many
researchers have concluded that some degree of stress is necessary for physical and mental
growth. This is because due to some stress individuals become more creative, innovative and
alert. They learn new skills and knowledge to cope up with adverse situations. These are
positive situations to increase the morale of employee and self-satisfaction. This kind of positive
stress is called as eustress. On the other, hand high degree of stress causes regularly undesirable
and unpleasant situations that create physical and psychological disorders and it has known as
distress. So, in this way, one can say that low degree of stress causes negative outcomes such as
lack of motivation, lack of interest and gets negative impact on productivity of organisation and
moderate level of stress creates desirable and pleasant situations that help the individuals to
improve the performance of job and the productivity of the organisation

2.3 Causes of Stress

There are various causes, which create stressful situations in the life of an individual. These
causes are also known as stressors and create a high level of stress. Stress depends on person
capability and it varies from person to person. These cause are given below
1. Environmental Causes- Environmental factors are dynamic and changeable from time to
time. Management does not control them. Environmental factors not only affect the functional
growth and development of the banks but also responsible for causing stress among individuals
who work in various banks.There are so many factors that increase stress in the minds of
employees who work in banks like economic uncertainty, technology changes, social cultural
changes etc.

2.Banks Causes- People work in banks perform the various types of job, and play a variety of
roles for achieving the goals. There are various causes such as

(a) Characteristics of the job- These potential sources of stress relate to the vital nature of the job
itself such as the working conditions and type of tasks. This is related to work performance
closely monitored, organisational changes for change's sake, dull and repetitive work, dealing
with difficult customers and clients and lack of enjoyment of job.

(b) Work-overload- This is the point to which individuals feel that the demands of their workload
and the allied time pressures are a source of pressure such as unrealistic deadlines and
expectations, technology overload and under recruitment of staff for work already timetabled.

(c) Role in banks- If the employee role within the banks is unclear it may be source of stress.
Role conflict occurs when an individual is expected to play two contradictory roles. Role
ambiguity arises if the role is not well defined and it involves uncertainty regarding job
expectations and job description.

(d) Relationship at work - Employees is working in banks develop personal relationship. These
relations may be with supervisor and colleagues. Poor or unsupportive relationships with
colleagues and supervisors can be a potential source of pressure. Failure to establish friendly
relationship can be a result of aggressive management style, absence of support from others,
isolation at work, avoiding behavior, bullying and irritation, lack of understanding and
leadership, manager always finding faults in your work.
(e) Organizational structure of banks- Organizational structure defines the level of
differentiation, task allocation, supervision and coordination in the organization. Extreme rules
and lack of participation in decisions might be potential sources of stress.

(f) Organizational Culture of banks- In an organization the quality of interpersonal relations and
the style of leadership depends on the environment and culture of the banks. The environment
that is full of fear, suspicion, distrust and conflict becomes the main source of stress for the
employees. In other words lack of effective communication, control and task oriented
environment may also contribute an unfavorably culture.

(g) Reimbursements and benefits- The financial rewards associate with a job are important in
terms of lifestyle. They are also often perceived to be an indication of an individual's worth and
value to the organisation.

(h) Career development and Job security- If there is lack of career opportunity in the banks and
lack of job security it may be source of stress. Job changes are a source of pressure, for example
job insecurity, lack of job stability, temporary or fixed term contracts, future job change and fear
of skill redundancy.

(i) Work and home interface-The demands of work have affected personal and home life and so
put a strain on relationships outside work. For example,working people fail in maintaining a
proper balance between personal and professional life.

1. Personal Causes-Many events related to the individual that are taking place outside the
workplace may also become the source of stress at work for employees. Some past
incidences like traumas and unhappy events may contribute stress in life. For example,
events of personal life like divorce, death of loved one, hostile environment of family,
financial difficulties, personal health problem have been considered as personal causes of
stress.
2.4 Effects of Stress

Organisations are man-made system run by employees. Employees who work in highly stressful
situations develop undesirable tendencies in their working behavior. In medical science, stress
affects the human body and sub systems of human body such as nervous system, immune system
and blood pressure. Stress affects individuals in various ways such as physical effects (headache,
backache, restlessness, loss of appetite, infections, skin problems, and respiratory disorder),
psychological effects (tension, anxiety, fear, depression, loss of concentration, forgetfulness, loss
of self-confidence, nervousness, negative thinking, mental disorder, frustration, personality
disorder, anger) and behavioral effects such as arguing, crying, conflicting attitude, sleeping
disorder, exhaustion, burnout, carelessness and frequent mistakes, increase absenteeism, decrease
commitment of work and increase staff turnover. Stress not only affects on employees but also
affects the organisations. Major effects of stress can be classified as under:

1. Performance- Stress adversely affects the performance of individuals in banks It ultimately

contributes low productivity of the whole organisation because the organisation works through
these individuals

1. Change in Attitude- Employees who face highly stressful situation constantly for a long
period are bound to experience some change in attitude. They develop negative thinking,
low morale and job dissatisfaction and fail to maintain friendly interpersonal relation with
co-workers.

1. Withdrawal Behavior The stress faced by employees also results in behavior. As a result
of this, it increases absenteeism, employees turnover and adversely affects the internal
environment of the banks.
2.5 Coping with Stress at Work place

With the rapid advancement of technology, the stresses faced at work have alsoincreased. Many
people dread going to work, hence the term Monday Blues.What is the reason for this? There
is partly the fear from being retrenched in badtimes, leading to greater job insecurity on the part
of those who remain.Undoubtedly, occupational stress is one of the most commonly cited
stressorsfaced by people all over the world

Stress refers to the pressure and reactions to our environment which results inpsychological and
physical reactions. Whilst some stress is good for motivationand increasing efficiency, too much
stress can result in negative impacts such asreduced effectiveness and efficiency. More and more
people are feeling isolatedand disrespected at work, and this has led to greater occupational
stress. Manycompanies have taken to consulting experts and professionals on ways toincrease
connectedness and motivation of their employees.
Some companies organize parties and make their employees feel valued atwork. These are
measures to motivate employees and help them to feel secureat their jobs, translating into greater
productivity. However, not all companieshave such measures in place, and some have not gotten
it quite right. Hence, itis up to you to make sure that you can cope with stress at your workplace,
anduse it to help you work better. 2.5.1 Steps to help you with copingwith stress in

the workplace

Step 1: Raising Awareness

Help yourself to identify when you are facing rising levels of stress, tipping thescales from
positive to negative. This is important, as being able to identify signsof being stressed can help
you to take steps to ensure that your overall quality of life does not drop. If left unacknowledged,
the problem will only snowball, leadingto disastrous consequences to your health and overall
wellbeing.You can identify if you are feeling stressed by checking if you have any physicalor
psychological reactions, such as excessive sweating or heart palpitations, or the onset of
headaches, irritability or the need to escape. If you experience anyof these reactions, identify if
you are feeling any overwhelming negativeemotions, and if you are constantly worried
Step 2: Identify the Cause

You need to be able to analyze the situation and identify what is causing the risein stress. These
stressors can be external and internal. External stressors refer o things beyond your control, such
as the environment or your colleagues atwork. Internal stressors refer to your own thinking and
attitude. Often, we onlystart reacting to stress when a combination of stressors working
together exceeds our ability to cope.Keep a diary or a list of events that have caused you to feel
strong negativeemotions, or that are likely stressors. This will help you to identify the causes
of your stress. Whilst it is not always possible to eradicate them, we can change theway that we
cope with it.

Step 3: Coping with Stress

In order to deal with the situation that is causing you stress, you need to calmyour mind and body
so as to stave off the reactions and cope with it in a positiveway. This can be through different
methods, such as taking time off. If a situationis triggering your stress and you are unable to calm
down, remove yourself fromit. Go outside and take a walk to calm down. Alternatively, you can
tryimplementing relaxation techniques such as deep breathing. If it is an internalstressor, stop
your thought process until you are able to deal with it logically.The key to making these 3
steps work for you is to practice them. These are notinstantaneous solutions, and you need to
condition your mind and practice themso that you can implement it when you are feeling
stressed.
2.5.2 To be relaxed we have to strive to create such situations.

1. Recognizing a stressor:
It is important to recognize whether you are under stress or out of it. Many times,even if we are
under the influence of a stressful condition and our body reacts toit internally as well as
externally, we fail to realize that we are reacting under stress. This also happens when the causes
of stress are there long enough for us to get habituated to them. The body constantly tries to tell
us throughsymptoms such as rapid palpitation, dizzy spells, tight muscles or various bodyaches
that something is wrong. It is important to remain attentive to suchsymptoms and to learn to cope
with the situations.
We cope better with stressful situation, when we encounter them voluntarily. Incases of
relocation, promotion or layoff, adventurous sports or having a baby, wetend to respond
positively under stress. But, when we are compelled into suchsituations against our will or
knowledge, more often than not, we wilt at the faceof unknown and imagined threats. For
instance, stress may mount when one iscoerced into undertaking some work against one's will.

2.Laughter

Adopting a humorous view towards life's situations can take the edge off everyday stressors. Not
being too serious or in a constant alert mode helpsmaintain the equanimity of mind and promote
clear thinking. Being able to laughstress away is the smartest way to ward off its effects.A sense
of humor also allows us to perceive and appreciate the incongruities of life and provides
moments of delight. The emotions we experience directly affectour immune system. The positive
emotions can create neurochemical changesthat buffer the immunosuppressive effects of
stress.During stress, the adrenal gland releases corticosteroids, which are converted tocortical in
the blood stream. These have an immunosuppressive effect. Dr. LeeBerk and fellow researcher
Dr. Stanley Tan at Loma Linda University School of Medicine have produced carefully
controlled studies showing that the experienceof laughter lowers serum cortical levels, increases
the amount and activity of Tlymphocytesthe natural killer cells. Laughter also increases the
number of Tcells that have suppresser receptors.
What Laughter Can Do Against Stress And Its Effects ?

Laughter lowers blood pressure and reduces hypertension.

It provides good cardiac conditioning especially for those who are unable toperform physical
exercise.
Reduces stress hormones (studies shows, laughter induces reduction of atleast four of
neuroendocrine hormonesepinephrine, cortical, dopac, and growthhormone, associated with
stress response).
 Laughter cleanses the lungs and body tissues of accumulated stale air as itempties more air than
it takes in. It is beneficial for patients suffering fromemphysema and other respiratory ailments.
It increases muscle flexion, relaxation and fluent blood circulation in body. Boosts immune
function by raising levels of infection-fighting T-cells, disease-fighting proteins called Gamma-
interferon and disease-destroying antibodiescalled B-cells.
Laughter triggers the release of endorphinsbody's natural painkillers
Produces a general sense of well-being.

2.5.3 The Organizational Oriented Strategies for Coping with Stress

1.Flex time. Allowing workers to start or end the workday earlier or later can reduce work/life
stress, especially for working parents. Flex time can also reduce the stress of commuting in rush
hour traffic.

2.Job sharing. This allows at least two people trained to perform each job, enabling each
employee to have time off without losing productivity.

3.Work from home. Working from home results in higher morale and job satisfaction and lower
employee stress and turnover, The prime reason is that working at home provides employees
more control over how they do their work, Working at home also helps workers better manage
work/family demands.

4.Longer lunch hours. Extending the lunch hour may help discourage snacking and fast food.
Adequate time may also encourage time for calming or other stress-reduction activities such as
walking.

5.Healthcare advocacy. Offering an expert who can personally address healthcare issues, such
as helping to resolve medical bills and interacting with insurance and providers, can help
employees reduce worry and stay focused on their job.
6.EAPs (Employee Assistance Programs) EAPs are typically offered by the HR department as
part of the employers health insurance plan to assess and address personal issues that affect
employee performance and productivity. Issues can range from substance abuse to family
problems, and EAPs often include counseling benefits. EAPs for substance abuse can reduce
workers compensation claims, employer healthcare costs, and absenteeism.

Stress management programs Conducting stress management programs at organizational level,

with the objective of creating awareness about stress and making employees to learn stress
management techniques.

Physical activities planned in job design The body can release stress, better through physical
exertion, as physicians were suggesting, indulging any kind of physical activity is recommended
while job design.
 Chapter 3
Review of Literature
Review of Literature

Job stress has fuelled a significant, multifaceted literature. An important stream of literature
starting with Beehr and Newman defined occupational stress as "A condition arising from
the interaction of people and their jobs/work and characterized by changes within people that
force them to deviate from their normal functioning."

Brook (1973) stated that qualitative changes in the job creates adjustment problem among
workers. The interpersonal relationships inside the department and between the departments
create qualitative difficulties within the workplace to a great extent.

Cobb (1975) was with belief that, "The responsibility load creates severe stress among
workers and managers". If the individual manager/employee cannot cope with the increased
level of responsibilities it may lead to several psychological and physical disorders among
them.

According to French and Caplan (1975) , "Pressure of both quantitative and qualitative
overload can result in the need to work excessive hours, which is an additional source of job
stress. Having to perform under time pressure in order to meet deadlines/targets is an
independent source of stress. Studies revealed that levels of stress increase as difficult
deadlines draw near. More often, Stress is developed when an individual employee is
assigned a key responsibility without proper authority and delegation of power.
Ivancevich and Matteson (1980) signify that, Lack of group cohesiveness may explain
various behavioural and physiological outcomes in an employ desiring such sticks together.
Negative interpersonal relations and workplace interpersonal conflicts are prevalent sources
of stress and are existed with symptoms of ill health and negative mood depressions. Lack of
effective consultation, lack of participation in the decision making process and
communication, unjustified restrictions on behaviour, no sense of belonging and office
politics are identified as potential sources of stressors. Lack of 59 participation in work
activity is associated with negative behavioural responses and psychological mood,
including escapist drinking and heavy smoking .
 Sharma (1987) focuses on the managers and supervisors of public and private
pharmaceutical organisations to ascertain the role of a motivated climate on four
psychological variables: (i) job satisfaction, (ii) participation, (iii) alienation, and (iv) role
stress. The studys sample comprises 150 respondents, including 75 managers and 75
supervisors. Sharmas findings indicate that employees of public sector organisations score
lower than and differ significantly from those of private sector organisations. However,
public sector employees score significantly higher in terms of role stagnation.

Ahmad, Bharadwaj, and Narula (1985) assess stress levels among 30 executives from
both the public and private sector, using an ORS scale to measure ten dimensions of role
stress. Their study reveals significant differences between public and private sector
employees in three dimensions of role stress role isolation, role ambiguity, and self - role
distance. The authors also establish the insignificant effect of several background factors,
such as age, level of education, income, marital status, and work experience.

Jha and Bhardwajs (1989) empirical study of job stress and motivation among 120
frontline managers from both the public and private sector finds that the latter score more
than the former in factors such as the need for achievement and total motivation.

Chaudhary (1990) probes the relationship between role stress and job satisfaction among
bank officers. The authors results indicate that role erosion and resource inadequacy act 60
as dominant stressors while role ambiguity and role expectation conflict are remote
contributors to role stress in the sample population.

Srivastava (1991) surveys 300 employees of the Life Insurance Corporation and reports that
there is a significant positive correlation between various dimensions of role stress and
symptoms of mental ill health. Stress arising from role ambiguity and role stagnation is the
most intensively correlated with anxiety.
 Singh (1993) measured the level of stress among 50 newspaper industry employeeswho
worked with video Display terminals and 50 employee who did not work with(DTS) an
occupational stress index (OSI) and crucial fusion test (CFFT) were administered to settings.
Result indicates that the level of stress was significantly high among the nonVDT users
group when measured on the OSI (a subjective measuredof stress) when settings were
compared on the CFFT (an objective measure of stress)The VDT user group indicates
significantly higher stress. The author discuses medicating factors to explain the discrepancy

Rajib lochan and manju bhagat(2008) found in survey the causes of occupational stress
amongst the software professionals, the ways adopted by them to cope up with it and their
intention to leave employment in a sample of 26 software professional working in three
different software companies having their office in Pune. The sample included professionals
working for full time, with varying demographic details. . Strength of Company A was
around 100 employees. Company B had the strength of around 500 employees and Company
C had around 1000 employees. In all the three organisations, informants were dispersed
throughout the organisational hierarchy and were selected via randomised quota sampling
.qualitative methods were used to collect the data which included four focused group
discussions and 26 in- depth interviews. The study tried to bring readers attention to work
related issues of the software professionals and the impact 61 of it on them. Burnout
amongst the professionals was noted to be the real issue and something that was common
amongst all the professionals. This was the major cause that often gave the birth to the
thought to change careers completely and get away from it all, the intention to leave the
organisation came into the mind in search of the solution to look elsewhere for a new job
thinking

Lewig and Dollard (2001) find that public sector employees are subject to greater
workrelated stress than private sector employees. Dollard and Walsh (1999), however, report
that private sector workers in Queensland, Australia, had made twice as many stress claims
as public sector workers.
 Macklin et al. (2006) survey 84 public and 143 private sector employees to assess any
significant difference in their stress levels. They conclude that there is no significant
difference between employees on the basis of sector, but that there is a significant difference
between genders, i.e., female employees are subject to greater stress than males.

DAleo, Stebbins, Lowe, Lees, and Ham (2007) examine a sample of 559 public and 105
private sector employees to assess their respective risk profiles. They find that public sector
employees face more stress than private sector employees.

Malik (2011) collects data on 200 bank employees in Quetta, Pakistan, of which 100 work
in public sector banks and the remaining 100 in private sector banks. The author finds that
there is a significant difference in the level of stress to which both groups are subject, and
that public sector bank employees face a high level of occupational stress.
 Chapter 4
Objective of the study

Objectives are the path routes through which the title will be achieved. Objectives should always
be in accordance with title and they should conform to the direction towards which the title is
aimed. In laymans term objectives are the sub parts of the title. The main function of objective is
to define the scope of research i.e. to determine what is to be studied and the extent to which it
will be studied. Thus for the same my objectives for the study are:-

1. To identify the factors causing stress among banking employees.

2. To measure the stress level among banking employees
3. To analysis the effect of such stress among bank employee,
4. To know about the different stress affecting the employees in the organization.
5. To identify situations that causes stress.
6. To identify which stress affects physical health and lifestyle
7. To find the current stress level of employees.
8. To analyze the importance of interventional strategies to manage stress among bank
employees
9. To study effectiveness of stress management programme organized by the banks.
10. The objective of the study is to identify the existence of workstress in the organization.
11. To identify the significant coping strategies adopted by bank employees
12. To make a comparative study among the employees of different bank groups and to
identify the relationship between demographic variables and stressors as well as coping
up strategies.
13. To offer solutions based on the findings for the betterment of the area of 'Management of
stress' in the Banking Sector.

The study is conducted in HDFC and SBI banks at Nawnshahr, Punjab. the present scope of the
study is limited to the HDFC and SBI banks at nawnshahr only. but the future scope of the study
can be expanded to the other region of Punjab or other state also.. A comparison between other
banks in different regions can also be studied.
 Chapter 5
Limitations of the study

Though there are several areas in identifying the stressors. The present study is confined to the
following areas:
1. The opinions, behavior and attitudes of the respondents reflected in this study are
restricted to the duration of the research and are subject to change with the passage of
time.
2. Boss-subordinate relationship and the related stressors
3. As human behavior changes with changing times, the respondents may express
differently at different points of time. The limitation is always present in all studies on
behavioral sciences.
4. Gender classification has not been taken up as most of the respondents are only male
members.
5. The time period for carrying out the research was short as a result of which many facts
have been left unexplored.
6. Lack of time and other resources as it was not possible to conduct survey at large level.50
employees responded positively.
7. The study is limited to the employees of selected braches of commercial banks.
8. During collection of the data many employees were unwilling to fill the questionnaire
due to lack of time.
9. Respondents were having a feeling of wastage of time for them.
10. Personal bias of the respondents might have crept in while answering a few questions.
11. Results of the study may not be generalized.
12. I was not able to collect the information from all the employees of organization because
of busy schedule of employees.
13. The question that are asked being personal, some of them hesitated to answer it.
 Chapter 6
Research Methodology
Research refers to a search for knowledge. This research defines the problems of retailers and
perception of citizens. Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions
and reaching conclusions; and at last carefully testing the conclusions to determine weather they
fit the formulating hypothesis. It presents the research design, sampling procedure, tools of
investigation, collection of data and the limitations of the study.
1. Problem
To survey about the stress level of employees in both State bank of india and HDFC bank.
2. Type of Research:
To conduct the research work accurately, The study is descriptive in nature. . It includes
surveys and fact-findings inquiries of different units.

3. Methodology:
The project includes both primary as well as secondary sources of data. The data collected
through these sources has been organized, analyzed and interpreted so as to draw conclusion and
arrive at appropriate recommendations.
Primary source of data includes survey through questionnaire , from SBI and
HDFC bank.
The secondary source of data includes the development,evaluation, banks
awards, services provided by bank, programmes of the banks and which contains
details, which is helpful for making my project report.
5 Tools and Techniques:
There are many tools, techniques are used for presenting the data that collected through
survey.Tools and techniques present the raw data in a proper manner and provide a
accurate shape.Results of the analysis have been presented with the following:

Percentage
Bar Graph
Line chart
Questionnaire
Tables
 1. Sample
Sample size: out of the total population, the sample taken amongst employees i.e., 50
respondents.
Sampling area: The research was conducted at State bank of india and HDFC bank Sample
method: The research was made by the survey in accordance to the convenience of the
employees. So the sample type is convenience sampling.

7. Limitations of Research:
Even if I tried my level best to complete my project with no flaws but I faced certain
limitations and some of those limitations are as follows:
Respondents may have given bias information.
With respect to actual population the sample size was too small. This might be
effect the final result.
As non-probability sampling technique is used in the research so there will be
biasness.
Lack of adequate time.
Also it was difficult to collect data regarding the competitors.
Lack of respondents coordination.
 Chapter 7
Data interpretation
There are approximately many number of employees working in Public sector (State bank of
India) and Private sector (HDFC bank) banks out of which 50 non executives are taken as sample
size for the survey. A questionnaire consisting of 15 questions were distributed to them. The
analysis and interpretation are as follows:
Q1. Do you have enough time to perform your work without any disturbance?

SBI(%) HDFC(%)

Yes 48% 56%

No 32% 40%

Can't say 20% 4%

Figure no. 7.1

Interpretation: The above table and figure (no. 7.1) shows that 48% of employees in SBI
perform their wrk without any disturbance as compared to that of 56% employees in HDFC.
32% of employees face trouble wile doing their work in SBI and 40% of employees in HDFC.
20% of employees in SBI respond whether they feel disturbance or not while performing any
task, as compared to 4% employees in HDFC.

Q2 Do you have enough time to spend with your family?

SBI (%) HDFC(%)

Yes 44% 48%
No 56% 52%
Can't say 0% 0%

Figure no. 7.2

Interpretation: This table and figure (no . 7.2) shows that 44% of employees in SBI spend time
with their family as compared to that of 48% employees in HDFC.

56% of employees have not time spend with their family in SBI and 52% of employees in
HDFC. The above table and figure also showtaht nobody respond in cant say.
Q3. Do you get time to attend your personal obligations everyday?
SBI(%) HDFC (%)
Yes 16% 20%
No 72% 64%
Can't say 12% 16%

Figure no. 7.3

Interpretation: The above table and figure ( no. 7.3) shows that 16% of employees get time for
their personal obligations in SBI as compared to 20% of employees in HDFC.
72% of employees have not get a time for their personal obligations because of busy schedule of
work in SBI and 64% of employees in HDFC. 12% of employees in SBI respont whether they
get time for personal obligations or not while performing any task as compared to 16% of
employees in HDFC.

Q4. Do you get tend to angry when you get interrupted at work?

SBI (%) HDFC(%)

Yes 32% 48%

No 48% 28%

Can't say 20% 24%

Figure no. 7.4

Interpretation: The above table and figure ( no. 7.4) shows that 32% of employees get angry
because of interrupted at work in SBI as compared to 48% of employees in HDFC.
48% of employees have not get a angry because of busy schedule of work in SBI and 28% of
employees in HDFC. 20% of employees in SBI respond whether they get angry because of
intrupttion or not while performing any task as compared to 24% of employees in HDFC.
Q5. When you asked to do something unplanned, do you respond angrily?

Column1 SBI (%) HDFC (%)

Yes 16% 20%

No 72% 64%

Can't say 12% 16%

Figure 7.5
Interprettaion: The above table and figure ( no. 7.5) shows that 16% of employees respond
angrily when something unplanned in SBI as compared to 20% of employees in HDFC.
72% of employees have not respond angrily when something unplanned in SBI and 64% of
employees in HDFC. 12% of employees in SBI respond whether they get somthing unplanned or
not while performing any task as compared to 16% of employees in HDFC.

Q6. When you are given unexpectedly heavy work at bank, do you get tensed?
Column1 SBI (%) HDFC (%)
Yes 20% 16%
No 56% 64%
Can't say 24% 20%

Figure 7.6
Interpretation: The above table and figure ( no. 7.6 ) shows that 20% of employees get tensed
because of unexpectedly heavy work at SBI as compared to 16% of employees in HDFC.
56% of employees have not get tensed because of unexpectedly heavy work in SBI 64% of
employees in HDFC. 24% of employees in SBI respond whether they get tensed or not while
performing any unexpectedly heavy task as compared to 20% of employees in HDFC.
Q7. Are you happy with your pay-package?
Column1 SBI (%) HDFC (%)
Yes 36% 20%
No 44% 60%
Can't say 20% 20%

Figure no. 7.7

Interpretation:The above table and figure ( no. 7.7) shows that 36% of employees was satisfied
wth their pay package in SBI as compared to 20% of employees in HDFC.
44% of employees has not happy wth their pay package in SBI and 60% of employees in HDFC.
But in both banks on a same level ( say 20%) of employees respond whether they are happy or
not with their pay package.

Q8. Do you lose your temper wile being stressed at work?

Column1 SBI (%) HDFC (%)

Yes 44% 24%

No 40% 64%

Can't say 16% 12%

Figure 7.8

Interpretation: The above table and figure ( no. 7.8) shows that 44% of employees lose their
temper while being stressed at work in SBI as compared to 24% of employees in HDFC.
40% of employees have not lose their temper because of stress in SBI and 64% of employees in
HDFC. 16% of employees in SBI respond whether they lose their temper or not while stressed at
work as compared to 12% of employees in HDFC.
Q9. Do you plan your life each day and work out that place?
Column1 SBI (%) HDFC (%)
Yes 52% 60%
No 48% 16%
Can't say 24%
Figure 7.9
Interpretation: The above table and figure ( no. 7.9) shows that 52% of employees plan their
life each day and work out that place SBI as compared to 60% of employees in HDFC.
48% of employees have not plan their life because of busy schedule at work in SBI and 16% of
employees in HDFC. Only 24% of employees in HDFC respond whether they plan their life each
day or not.
Q10. What could be done by the management of bank to relieve employees from getting
stressed?
Column1 SBI (%) HDFC (%)
High Salary 16% 28%

Recurit Supportive
32% 24%
Staf
Training 24% 20%
Reduce Workload 24% 28%
Figure 7.10

Interpretation: The above table and figure ( no. 7.10). I t has been found that the stress level
among the employees can be reduced in various ways. Among which 16% employees from SBI
agree if they get better salary, their stress level could be reduced and 28% employees from
HDFC agree for the same.
32% of employees from SBI and 24% from HDFC agree they get better supportive staff their
stress level could be reduced.
24% of employees from SBI and 20% of employees from HDFC agree, if they get better
training, support their stress level could be relived, 24% of employees from SBI and 28% of
employees from HDFC agree, if they wuld be given less wrkload their stress level could be
reduce.
Q11. Do you think your colleagues are also stressed?
Column1 SBI HDFC
Yes 20% 32%
No 28% 24%
Can't say 52% 44%

Figure no. 7.11

Interpretation: The above table and figure ( no. 7.11) shows that 20% of employees think about
their colleagues are also stressed in SBI as compared to 32% of employees in HDFC.
28% of employees has not think about their colleagues stress at work because of busy schedule
of work in SBI and 24% of employees in HDFC. 52% of employees in SBI respond whether
their colleagues stressed or not while performing any task as compared to 44% of employees in
HDFC.

Q12. How often you face stress situation situation in your bank?

Column1 SBI (%) HDFC (%)

Mostly 20% 24%
Rarely 20% 20%
Sometimes 40% 44%
Not at all 20% 12%

Figure 7.12
Interpretation: The above table and figure ( no. 7.12) shows that 20% of employees face stress
situation mostly in SBI as compared to 24% of employees in HDFC.
20% of employees in both banks ( say SBI and HDFC) responds rarely they has been faced stress
situation.
40% of employees in SBI face stress situation sometime while during work as compared to 44%
of employees in HDFC.
20% of employees in SBI respond whether when they face stress situaion or not while
performing any task as compared to 112% of employees in HDFC.
Q13. Most of your stress are related to:

Column1 SBI (%) HDFC (%)

Work Environment 52% 48%

Supervision 20% 28%

Work Group 28% 24%

Figure no. 7.13

Interpretation: The above table and figure ( no. 7.13) shows that 52% of employees stress was
related to work environment in SBI as compared to 48% of employees in HDFC.
20% of employees respond their stress are related to supervision in SBI as compared to 28% od
employees in HDFC.
28% of employees respond Their stress was related to working group of an organizationa as
compared to 24% of employees in HDFC.

Q14.Have you taken leave in the past 12 months due to work related stress?
Column1 SBI HDFC
Yes 84% 24%
No 20% 72%
Can't say

Figure no. 7.14

Interpretation: The above table and figure ( no. 7.14) shows that 84%of employees take a leave
in last 12 months in SBI as compared to 24% of employees in HDFC.
20% of employees has not taken a leave in last 12 months in SBI as compared to 72% employees
in HDFC.
None no of employees in SBI and HDFC responds whether they taken leave in last 12 monther
or not.
Q15. How do you handle stress situation?

Column1 SBI (%) HDFC (%)

Optimistically 64% 40%

With the help of others 24% 28%

Depends upon level 12% 32%

Figure no. 7.15

Interpretation: The above table and figure ( no. 7.15) shows that 64% of employees handle
stress situation Optimistically in SBI as compared to 40% employees in HDFC.
24% of employees respond they handle stress situation wth the help of others in SBI and 28% of
employees in HDFC.
12% employees respond they has been handle stress situation according to the level of stress in
SBI and 32% of employees handle stress situation in HDFC.
Chapter 8
Finding
1. Table and figure (no. 7.1) shows that 48% of employees in SBI perform their work without
any disturbance as compared to that of 56% employees in HDFC. 32% of employees face
trouble wile doing their work in SBI and 40% of employees in HDFC. 20% of employees in
SBI respont whether they feel disturbance or not while performing any task, as compared to
4% employees in HDFC.
2. This table and figure (no . 7.2) shows that 44% of employees in SBI spend time with their
family as compared to that of 48% employees in HDFC.56% of employees have not time
spend with their family in SBI and 52% of employees in HDFC. The above table and figure
also showtaht nobody respont in cant say.
3. The above table and figure ( no. 7.3) shows that 16% of employees get time for their
personal obligations in SBI as compared to 20% of employees in HDFC. 72% of employees
have not get a time for their personal obligations because of busy schedule of work in SBI
and 64% of employees in HDFC. 12% of employees in SBI respont whether they get time
for personal obligations or not while performing any task as compared to 16% of employees
in HDFC.
4. The above table and figure ( no. 7.4) shows that 32% of employees get angry becauseh of
interrupted at work in SBI as compared to 48% of employees in HDFC. 48% of employees
have not get a angry because of busy schedule of work in SBI and 28% of employees in
HDFC. 20% of employees in SBI respont whether they get angry because of intrupttion or
not while performing any task as compared to 24% of employees in HDFC.
5. he above table and figure ( no. 7.5) shows that 16% of employees respond angrily when
something unplanned in SBI as compared to 20% of employees in HDFC. 72% of
employees have not respond angrily when something unplanned in SBI and 64% of
employees in HDFC. 12% of employees in SBI respond whether they get somthing
unplanned or not while performing any task as compared to 16% of employees in HDFC.
6. The above table and figure ( no. 7.6 ) shows that 20% of employees get tensed because of
unexpectedly heavy work at SBI as compared to 16% of employees in HDFC. 56% of
employees have not get tensed because of unexpectedly heavy work in SBI 64% of
employees in HDFC. 24% of employees in SBI respond whether they get tensed or not while
performing any unexpectedly heavy task as compared to 20% of employees in HDFC.
7. The above table and figure ( no. 7.7) shows that 36% of employees was satisfied wth their
pay package in SBI as compared to 20% of employees in HDFC. 44% of employees has not
happy wth their pay package in SBI and 60% of employees in HDFC. But in both banks on a
same level ( say 20%) of employees respond whether they are happy or not with their pay
package.
8. The above table and figure ( no. 7.8) shows that 44% of employees lose their temper while
being stressed at work in SBI as compared to 24% of employees in HDFC. 40% of
employees have not lose their temper because of stress in SBI and 64% of employees in
HDFC. 16% of employees in SBI respond whether they lose their temper or not while
stressed at work as compared to 12% of employees in HDFC.
9. The above table and figure ( no. 7.9) shows that 52% of employees plan their life each day
and work out that place SBI as compared to 60% of employees in HDFC. 48% of employees
have not plan their life because of busy schedule at work in SBI and 16% of employees in
HDFC. Only 24% of employees in HDFC respond whether they plan their life each day or
not.
10. The above table and figure ( no. 7.10). I t has been found that the stress level among the
employees can be reduced in various ways. Among which 16% employees from SBI agree if
they get better salary, their stress level could be reduced and 28% employees from HDFC
agree for the same. 32% of employees from SBI and 24% from HDFC agree they get better
supportive staff their stress level could be reduced. 24% of employees from SBI and 20% of
employees from HDFC agree, if they get better training, support their stress level could be
relived, 24% of employees from SBI and 28% of employees from HDFC agree, if they wuld
be given less wrkload their stress level could be reduce.
11. The above table and figure ( no. 7.11) shows that 20% of employees think about their
colleagues are also stressed in SBI as compared to 32% of employees in HDFC. 28% of
employees has not think about their colleagues stress at work because of busy schedule of
work in SBI and 24% of employees in HDFC. 52% of employees in SBI respond whether
their colleagues stressed or not while performing any task as compared to 44% of employees
in HDFC.
12. The above table and figure ( no. 7.12) shows that 20% of employees face stress situation
mostly in SBI as compared to 24% of employees in HDFC. 20% of employees in both banks
 ( say SBI and HDFC) responds rarely they has been faced stress situation. 40% of
employees in SBI face stress situation sometime while during work as compared to 44% of
employees in HDFC. 20% of employees in SBI respond whether when they face stress
situaion or not while performing any task as compared to 112% of employees in HDFC.
13. The above table and figure ( no. 7.13) shows that 52% of employees stress was related to
work environment in SBI as compared to 48% of employees in HDFC. 20% of employees
respond their stress are related to supervision in SBI as compared to 28% od employees in
HDFC. 28% of employees respond Their stress was related to working group of an
organization as compared to 24% of employees in HDFC.
14. The above table and figure ( no. 7.14) shows that 84%of employees take a leave in last 12
months in SBI as compared to 24% of employees in HDFC. 20% of employees has not taken
a leave in last 12 months in SBI as compared to 72% employees in HDFC. None no of
employees in SBI and HDFC responds whether they taken leave in last 12 monther or not.
15. The above table and figure ( no. 7.15) shows that 64% of employees handle stress situation
Optimistically in SBI as compared to 40% employees in HDFC. 24% of employees respond
they handle stress situation wth the help of others in SBI and 28% of employees in HDFC.
12% employees respond they has been handle stress situation according to the level of stress
in SBI and 32% of employees handle stress situation in HDFC.s
 Chapter 9
Suggestions and Recommendations
1. Job roles need to be identified to eliminate role ambiguity.
2. Employees grievances must be handled carefully so that they can mingle up in the
working culture of the organization. It is important from the point of view of
organizational objectives as we all know that only a satisfied employee is capable of
satisfying the customer and customers satisfaction is the priority of any organizatin.
3. Psychiatrists should be employed so that stress audit can be conducted at all levels in the
organization and stress prone areas can be identified. Thus, improving conditions of job
and alleviating job stress.
4. Organization should manage people at work differently, treating them with respect and
valuing their contribution Thus, effective stress management and professional help can
improve the performance of employees.
5. Training specifically related to type of work in which an individual is involved and policy
implementation is a key priority at this stage when banking activities have become
complex. If an employee is well informed about his/her work, the less will be the stress
and the more efficient the employee will become.
6. Stress Management Programs focusing on different leave categories of Employees at all
hierarchical level should be introduced so that employees can get a time off from their
busy schedule.
7. Jobs which are hampering employees abilities and capacities should either be eliminated
or redesigned according to employees potential
8. Job oriented training programs should be introduced which improve employees skill and
their confidence to work effectively.
9. Pranayam and other meditation tools should be used as a holistic managerial strategy to
deal with workplace stress
Chapter 10
Conclusion
The efficiency of the workforce is the most decisive factor in the growth of any industry.
Efficiency of a workforce is interdependent with the health and inner peace of an employee.
Giving more importance to work and less importance to health and family is the main cause
behind this workplace stress. Stress, in the present scenario has become a deep rooted evil which
needs to be uprooted. Stress itself is a problem which in turn gives birth to a number of
problems. There is a dire need of stress management programmes to relief stress and to reduce its
harmful effects .This article is an effort to study the need of Stress Management Programmes due
to increasing dangers of stress under which it becomes difficult for an employee to work.
Through various studies, it has been found that those firms which have adopted stress
management strategies have gained a competitive edge over other firms as their employees work
more efficiently. These days Stress Management Programmes have proven to be an integral part
of any industry. This research project report would definitely be beneficial for the organizations
to understand the share they need to spend on stress management programmes so that they can
maximize their profit which would also help in generating satisfaction amongst employees and
creating an environment which is stress free.
Chapter 11
Bibliography
 Bibliography

http://www.allonmoney.com/banking/history-of-banks-in-india-public-private-banks-
establishment-year/
http://aiboc.org/vision-mission-values/
https://www.ibef.org/industry/banking-presentation
http://myimsv2.imsindia.com/2016/05/28/banking-structure-in-india/
http://www.marketing91.com/swot-analysis-of-banking-industry/
http://www.goodreturns.in/classroom/2015/04/difference-between-public-sector-private-
sector-banks/examples-of-private-and-public-sector-banks-pf7455-347748.html
http://www.sbiantwerp.com/home.php
http://kalyan-city.blogspot.in/2011/04/functions-of-banks-important-banking
.html
https://www.slideshare.net/DeepanjanDas1/a-comparative-study-between-private-sector-
banks-and-public-sector-banks-with-respect-to-cachar-district-34488316
http://www.hdfcbank.com/aboutus/awards/default.htm
http://shodhganga.inflibnet.ac.in/bitstream/10603/11203/9/09_chapter3.pdf
http://www.ijirst.org/articles/IJIRSTV2I12133.pdf
https://www.ijstm.com/images/short_pdf/162a.pdf
http://iosrjournals.org/iosr-jbm/papers/Vol16-issue5/Version-2/O01652115125.pdf
http://www.voiceofresearch.org/doc/Dec-2013/Dec-2013_20.pdf
https://www.rbi.org.in/Scripts/AboutusDisplay.aspx
http://www.onlinejournal.in/IJIRV2I3/019.pdf
Chapter 12
Annexure
 Questionnaire

I am Janpreet kaur, student of 4th semester M.B.A studying at Kc college of engineering and
information technology, karyam in nawanshahr. As a part of academic curriculum. I am carrying
a project work in Comparative study on stress management of employees at private sector
bank and public sector bank.

In this regard a questionnaire has been provided to you. Please express your fair view for the
questions asked in questionnaire. I therefore invite your frank opinion on the below mentioned
questions. The outcome of the project will serve academic interest only.

Name:.
Age Group:
Gender: Male( ) Female ( )
Designation:..
Contact:.

1. Do you have enough time to perform your work without any disturbance?

Yes ( ) No ( ) Cant say ( )

1. Do you have enough time to spend with your family?

Yes ( ) No ( ) Cant say ( )

1. Do you get time to attend your personal obligation everyday?

Yes ( ) No ( ) Cant say ( )

 1. Do you tend to get angry when you get interrupted at work?

Yes ( ) No ( ) Cant say ( )

1. When you asked to do something unplanned, do you respond angrily?

Yes ( ) No ( ) Cant say( )

1. When you are given unexpectedly heavy work at bank, do you get tensed?

Yes ( ) No ( ) Cant say ( )

1. Are you happy with your pay-package?

Yes ( ) No ( ) Cant say ( )

1. Do you lose your temper while being stressed at work?

Yes ( ) No ( ) Cant say ( )

1. Do you plan your life each day and work out that place?

Yes ( ) No ( ) Cant say ( )

1. What could be done by the management of bank to relieve employees from getting
stressed?

High salary ( )
Recruit supportive staff ( )
Training ( )
Reduce workload ( )
 1. Do you think your colleagues are also stressed?
Yes ( ) No ( ) Cant say ( )

1. How often you face stress situation in your bank?

Mostly ( )
Rarely ( )
Sometimes ( )
Not at all ( )

1. Most of your stress are related to:

Work Environment ( )
Supervision ( )
Work group ( )

1. Have you taken leave in the past 12 months due to work related stress?

Yes ( ) No ( ) Cant say ( )

1. How do you handle stress situations?

Optimistically ( )
With the help of other ( )
Depends upon level ( )