The banking industry has moved gradually from a regulated environment to a deregulated

market economy. The market developments kindled by liberalization and globalization have
resulted in changes in the intermediation role of banks. The pace of transformation has been
more significant in recent times with technology acting as a catalyst. While the banking system
has done fairly well in adjusting to the new market dynamics, greater challenges lie ahead.

The financial system is the lifeline of the economy. The changes in the economy get mirrored in
the performance of the financial system, more so of the banking industry. Liberalization and de-
regulation process started in 1991-92 has made a sea change in the banking system. From a
totally regulated environment, we have gradually moved into a market driven competitive
system. Our move towards global benchmarks has been, by and large, calibrated and
regulator driven. The pace of changes gained momentum in the last few years.

Structure and ownership pattern would undergo changes. There would be greater presence
of international players in the Indian financial system. Similarly, some of the Indian banks
would become global players. Government is taking steps to reduce its holdings in Public
sector banks to 33%. However the indications are that their PSB character may still be
retained.
Technology as an enabler is separately discussed in the report. It would not be out of
place, however, to state that most of the changes in the landscape of financial sector
discussed above would be technology driven. In the ultimate analysis, successful
institutions will be those, which continue to leverage the advancements in technology in re-
engineering processes and delivery modes and offering state-of-the-art products and
services providing complete financial solutions for different types of customers.
Banks will take on competition in the front end and seek co-operation in the back end, as
in the case of networking of ATMs. This type of competition will become the order of the
day as Banks seek to enlarge their customer base and at the same time to realize cost
reduction and greater efficiency.

Problem Statement
To determine the Attitude of Customers towards Public sector & private Sector banks

Research Objective
To profile the customers in terms of:
:::::} Their savings pattern
:::::} Their banking pattern (frequency of transactions)
:::::} Preferences while selecting a bank for transacting for the first time
Sampling Design
Since most of the country's population is now engaged in banking transactions, it would be
infeasible to interview all of them. Hence the method of sampling was used.

The basic idea of sampling is that by selecting a representative sample, it'll prove useful in
drawing valid conclusions and help in achieving a reliable result for this research. This
method is used mainly because of the large and the widely spread nature of the Banker's market.
To give reliable results by the sampling procedures 2 important factors should be taken care of:
Accuracy: The degree to which bias is absent from the sample.
Precision: It should fully represent its population in all respects.

Relevant Population
The relevant population in our case is all those transact with banks (Public or Private) on a
rather frequent basis and hold accounts in alteast one bank. The method of simple random
sampling is used.

Parameters of Interest
In our survey of estimating the attitudes of the bankers, the entire population is divided into
various parameters to enable us to diagnosis the perception the various categories of users.
These parameters are:

The income level The occupation Area of residence

Sampling Frame
Since only people who hold bank accounts and are engaged in frequent banking transactions
applicable for this research, there was a list prepared of selected people doing so. However, it
was prepared on random basis.

Type of sample
For the purpose of this research, the probability random sampling method was adopted.
With this sample design, care has been taken to avoid arbitrary or biased selection of
sample element. Also, it will help in predicting the behaviour of the total population.

Sample size
We intended to follow Normal Distribution curve while testing Hypothesis, a sample of 60
respondents was selected.
We have seen to it that our survey has equal participation from people of both sexes. In
addition, we have taken care that the survey has cut across various occupation barriers, so
that the results are not job or occupation specific.

Data source
The background information about public and private sector banks was collected by visiting
various sites and scanning various magazines.

However, the research analysis was based mainly on the primary data input received from
the customers themselves while conducting the fieldwork.

Research Design

Exploration
Purpose of the study:
The research design is of Descriptive type which aims to find out the Attitude of customers
towards public and private sector banks while selecting of transactions. It aims to find
answers to question like....

Is your bank at a convenient location for you?

Do you trust your bank?
Does the age of the bank matter when selecting them? Do you prefer to use Modern
technology in banking?
To what extent does the physical environment affect your decision about transacting with a
bank?
Does your bank's commitment towards social causes have any bearing your selection
decision?

Instrument
The instrument used for the research is the questionnaire, which was prepared after a
thorough knowledge of various aspects of factors that influence a particular consumer in the
bank-selection procedure.

Questionnaire Design
There were two main objectives while framing the questionnaire.
First it aimed to find out generally to find out the selecting pattern of a person for a bank.
For instance,
==} Is the bank at a convenient location?
==} To what extent does their friends' opinion matter?
==} To what extent does the physical environment affect your decision?
==} Is the age of the bank important?

And secondly, it aimed at the intricate details, which a customer takes into consideration
while selecting a bank like,
==} Transaction tracking system availability
==} Staff-friendliness with the customers
==} ATM coverage by the banks
==} Net Banking facility
==} 24-customer service