An Assessment of Potential Financial Inclusion of Slum Dwellers Through Business Correspondent Model

--Shrikrishna S Mahajan and Natha Kalel

Financial inclusion may be considered as a key instrument for inclusive growth and inclusive development. Access to safe, easy and affordable credit, and other financial services by the poor and vulnerable groups, disadvantaged areas and lagging sector is recognized as a precondition for accelerating growth and reducing income disparities and poverty. This paper aims at identifying the status of financial exclusion of selected slum dwellers and assessing their probable financial inclusion through business facilitator/ business correspondent model. As most of the slum dwellers are self-employed or employed in the unorganized sector, they require credit on a daily basis for their livelihood. On the other hand, some of the slum dwellers are paying the principal amount of the borrowed funds regularly to the moneylenders. Therefore, here is an opportunity for any bank branch to go for financial inclusion through business facilitator model (Briefcase Banking).

© 2013 IUP. All Rights Reserved.

Automated Teller Machines (ATMs): The Changing Face of Banking in India

--Lakshminarayana Bhat A and B Jayarama Bhat

Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

© 2013 IUP. All Rights Reserved.

Customer Satisfaction with e-Banking: A Comparative Study of Public and Private Sector Banks

--Poonam Sawant, R V Kulkarni and S D Mundhe

Customer satisfaction is one of the major factors to measure the performance of banks. This paper presents the impact of e-services on customer satisfaction. A comparative study of customer satisfaction level in three major public sector banks (State Bank of India, Bank of Maharashtra and Bank of Baroda) and three major private sector banks (ICICI Bank, HDFC Bank and Federal Bank) is done, with special reference to the problems faced by customers using online services. The paper also examines the relationship between various online facilities, factors affecting the choice of Internet banking and its interplay with customer satisfaction.

© 2013 IUP. All Rights Reserved.

Awareness of Banking Professionals About Performance Appraisal Methods: An Empirical Study

--Somiya Mehrotra and Shalika G Phillips

Performance management includes activities which ensure that goals are consistently met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Professionals are often found discussing about performance management practices in organization even when they themselves are not aware of the proper meaning, evaluation criteria and applicability of various performance management practices. Performance management system is ensured in every organization irrespective of the size, nature and purpose of the organization. This study was conducted in tier III cities like Bareilly, Moradabad, and Rampur of Uttar Pradesh, where a large number of banks providing financial and other banking services are present. The focus of the study was on assessing the level of awareness of banking professionals regarding various performance appraisal methods.

© 2013 IUP. All Rights Reserved.

Interest Rate Risk of Selected Indian Commercial Banks: An Application of GAP Analysis Model

--Anita Makkar and Shveta Singh

The present paper addresses the problem of interest rate risk in Indian commercial banks. GAP analysis model is used to measure the interest rate risk for the period 2008- 09 to 2010-11. The interest rate risk arises from timing differences in the repricing of banks’ assets and liabilities and off-balance sheet instruments. The GAP analysis helps to forecast the bank’s financial standing for different risk-taking strategies under various economic scenarios. The findings of the study reveal that rate-sensitive assets and ratesensitive liabilities are increasing for all the selected banks. The study concludes that HDFC Bank is the best bank on the basis of positive gap of residual maturity of its assets and liabilities. State Bank of India (SBI), Punjab National Bank (PNB) and ICICI Bank have negative balance in all these time buckets. On the basis of these results, the study finds that SBI, PNB and ICICI Bank are exposed to interest rate risk. On comparing the combined performance of all public and private sector banks, private sector banks are in a better position compared to the public sector banks. Public sector banks have to be careful about the rate-sensitive assets and liabilities to avoid interest rate risk.

© 2013 IUP. All Rights Reserved.

An Analysis of the Gap Between Customers’ Expectation and Perception Regarding Selected CRM Practices in Public and Private Sector Banks

--Anamica Chopra and Usha Arora

Customer Relationship Management (CRM) is the core business strategy that integrates internal process and functions and external networks to identify, cultivate and maintain long-term profitable relationships so as to provide those very customers with services quality exceeding their expectations. Thus, the present paper focuses on the gap between customers’ expectation and customers’ perception regarding selected CRM practices in public and private sector banks. The paper identifies four major dimensions, viz., pre-transaction services, during-transaction services, post-transaction services and behavioral factors, constituting overall CRM practices in banks. The paper also lays emphasis on comparing the customers’ expectation and perception levels in public and private sector banks.

© 2013 IUP. All Rights Reserved.