A REPORT ON THE “CUSTOMER SATISFACTION” AT

“ORIENTAL BANK OF COMMERCE”, BHADRAK, ODISHA, PIN756100

A report Submitted in partial fulfillment of the requirement for the Award of the degree of Master of Business Administration Submitted by Mr. Chandrakanta Panigrahi MBA (BA), TRI- IV ROLL NO- 07 UNDER THE GUIDANCE OF Prof. Dr. kirti Gupta

INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT BHARATI VIDYAPEETH UNIVERSITY PUNE
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*2008-2010*

BHARTI VIDYAPEETH UNIVERSITY, PUNE

INSTITUTE OF MANAGEMENT AND ENTREPRENUERSHIP DEVELOPMENT, PAUD ROAD, ERANDWANE PUNE-38 CERTIFICATE OF COMPLETION

This is to certify that Mr. Chandrakanta Panigrahi is a bonafide student, Roll No. :-07 of MBA (BA) program of the university in this institute for the year 2008-10. As a part of the University curriculum, the student has completed the project report titled “CUSTOMER SATISFACTION” at “ORIENTAL BANK OF COMMERECE”. The project report is prepared by the student under the guidance of Dr. Kirti Gupta.

(Teacher Guide) Date: Place:

Program Co-ordinator

Director

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PREFACE

Summer training is a very important part of an MBA (BA) curriculum. It

provides an

optimistic iconography for ‘Future’ existence through which students are able to see the real industrial environment which gives an opportunity to relate theory with practice. I undertook two months training programme at Oriental Bank of Commerce (Bhadrak) and worked on the project “Customer Satisfaction at OBC “. This report is the knowledge acquired by me during this period of training.

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ACKNOWLEDGEMENT
Before I get into the depth of the thing, I would like to add a few heartfelt words for the people who at various stages of the project development helped me by their valuable guidance. First and foremost I would like to pay my sincere gratitude which I owe to Mrs. HEMA MIRZI (course coordinator), and Dr. KIRTI GUPTA (project guide), for their valued help and guidance which they gave me when I needed it the most. It was only due to their sincere help and efforts that I was able to end up with this project. I owe special thanks to Dr.NITIN NAIK, Director of “INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP DEVLOPMENT,” Pune and Mr. PRADEEP KUMAR PANDA (Branch Manager, Bhadrak) for his valuable co-operation and guidance in completing the project work. Last but not the least; I would like to pay our gratitude to my PARENTS, without their help and blessing I can’t take a single step in right direction.

C handrakanta Panigrahi
R oll No. :-07, MBA (BA)

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DECLARATION
I Chandrakanta Panigrahi, a student of “INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP DEVLOPMENT”, Pune, and session (2008-10) bearing Roll No.:-07of MBA (BA) and University PRN no.:800001258, hereby declare that the project report entitled “CUSTOMER SATISFACTION” (ORIENTAL BANK OF COMMERCE.) is the outcome of my own work and the same has not been submitted to any college for the award.

Date: Place: (Chandrakanta Panigrahi)

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INDEX
S.NO. 1. CHAPTERS Introduction of the subject Customer Satisfaction Benefits of Customer Satisfaction Customer Satisfaction Survey Customer Satisfaction Process Company Profile Introduction of the Company Management Profile Competitors Product and Services Future of Banking in India Achievements and Awards Company Mission, Vision and Value Research Methodology Statement of the problem Objective Sample Size ,Methods and Data Collection Limitation of the Study 4. 5. 6. 7. Analysis And Interpretation Findings and Conclusion Suggestions Appendices Bibliography Customer Feedback Form PAGE NO. 7-15 8 9 11 13 16-31 17 18 20 22 28 30 31 32-37 34 35 36 37 38-48 49 52 54-56 55 56

2.

3.

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CUSTOMERS SATISFACTION
Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires DEFINITIONS: Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions. Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business There are many factors which lead in high levels of customer satisfaction including. Products and services which are customer focused and hence provide high levels of value for money. What is clear about customer satisfaction is that customers are most likely to appreciate the goods and services that they buy if they are made to feel special. This occurs when they feel that the products and services that they buy have been specially produced for them or for people like them.

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BENEFITS OF CUSTOMER SATISFACTION
The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-focused business or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth.

What Do Customers Want? Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer expectations have two types –  Expressed  Implied

Expressed Customer Expectations are those requirements that are written down n the contract and agreed upon by both parties for example, product specifications and delivery requirements. Supplier’s performance against these requirements is most of the items directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the customer would ‘expect’ the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot.

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There are many reasons why customer expectations are likely to change overtime. Process improvements, advent of new technology, changes in customer’s priorities, improved quality of service provided by competitors are just a few examples. The customer is always right. Supplier’s job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customer’s perception that a supplier has met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION? We cannot create customer satisfaction just by meeting customer’s requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as:  Product quality  Premium Outflow  Return on Investment  Services  Responsiveness and ability to resolve complaints and reject reports.  Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS? Customer expectations can be identified using various methods such as:  Periodic contract reviews  Market research  Telephonic interviews  Personal visits  Warranty records  Informal discussions

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 Satisfaction surveys Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customer’s perceptions. The purpose of the exercise is to identify priorities for improvements. We must develop a method or combination of methods that helps to continually improve service.

CUSTOMER SATISFACTION SURVEYS
Formal survey has emerged as by far the best method of periodically the customer satisfaction. The survey are not marketing tools but an information—gaining tool. Enough homework needs to be before embarking on the actual survey. This includes:  Defining Objectives of the Survey  Design Survey approach  Develop questionnaires and forms  Administer Survey (Email, Telephone or Post)  Method of compiling data and analyzing the findings  Format of the report to present the findings There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong. Where is the scope for improvement, where do we stand vis-à-vis other suppliers. How we can serve the customer better?

A customer satisfaction measurement survey should at least identify the following objectives:  Importance to customers (Customers priorities)  Customer’s perception of supplier’s performance  Your performance relative to customer’s priorities.  Priorities for improvement
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Survey forms should be easy to fill out with minimum amount of time and efforts on customer’s part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data should also be sufficiently reliable for management decision making. This can be achieved by incorporating objective type questions where customer has to “rate” on scale of say 1 to 10. For repeated surveys, you could provide the rating that was previously accorded by the customer. This works like a reference point for the customer. Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Normally, we deal various personnel at various levels in the customer’s organization—the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. It may be necessary to device a different questionnaire for each of them. Respondents must be provided a way to express the importance they attach to various survey parameters. Respondents should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the performance rating (scores) with importance rating (weighing). `CONSUMER RESEARCH IN DIFFERENT DISCIPLINES A considerable body of literature exists on consumption, consumer behavior and consumer decision making process. Most of the consumer research focused on adopter categories, habits, attitudes and intentions rather that on actually measuring the satisfaction level with the service.

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CONSUMER SATISFACTION PROCESS
The paramount goal of marketing is to understand the customer and to influence buying behaviour. The process can be depicted as follows: Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process.  Search for information.  Pre purchase alternative evaluation.  Consumption(utilization of the procured option)  Post purchase alternative re-evaluation.  Divestment(disposal of the unconsumed product and it’s remnants)

WAYS FOR MAINTAINING RELATIONS WITH THE CUSTOMERS ADOPTED BY OBC The ability of the banking industry to achieve the socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. We have a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by us at Oriental Bank of Commerce that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. Citizens' Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. This document was made in consultation with the users and highlights our Bank's commitments towards the customer satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships.

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This is not a legal document creating rights and obligations. The Code has been prepared to promote fair banking practices and to give information in respect of various activities relating to customer service. We wish to acknowledge the initiative taken by the Ministry of Finance, Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. We maintain constant consultations with our clientele through various Seminars, Customer Meets, etc. to evaluate improve and widen the range of service to customer. However, all our customers are requested to keep us informed of their experiences about the various services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in many Regional Languages in subsequent years. COMMON PRACTICES FOLLOWED BY OBC BRANCHES Display business hours. Render courteous services. Attend to all customers present in the banking hall at the close of business hours. Provide separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers). Display interest rates for various deposit schemes from time to time. Notify change in interest rates on advances. Provide details of various deposit schemes/services of the Bank. Issue Demand Drafts, Pay Orders, etc. Display Time-Norms for various banking transactions. Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time.

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Accord immediate credit in respect of outstation and local cheques upto a specified limit subject to certain conditions, as advised by RBI from time to time. Provide complaint/suggestion box in the branch premises. Display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints.

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INTRODUCTION Oriental Bank of Commerce India was established in the year 1943 on 19th February in Lahore. After partition, Oriental Bank of Commerce shifted its Registered Office from Lahore to Amritsar paying every rupee to its departing customers. Oriental Bank of Commerce was nationalized on 15th April in 1980. Then OBC bank had 307 branches with Rs. 282.61 crores as deposits and as advance Rs. 152.69. The National Institute of Bank Management (NIBM), rated OBC Bank as "Customer Friendly" Bank. Oriental Commercial Bank Limited is licensed by the Central Bank of Kenya as a commercial Bank to carry out banking activities under Banking Act Chapter 488 of the Kenyan laws. The Bank started its’ operations in the year 2002, with new investments and Board of Directors, by taking over the assets and liabilities of the erstwhile Delphis Bank, from Central Bank of Kenya. It is a middle sized Bank and one of the financially robust Banks in, Kenya in terms of shareholders fund and liquidity. Oriental Commercial Bank Ltd has its’ Head Office at Finance House, Koinange StreetNairobi. Presently the Bank has a branch network of four branches in major towns namely 1 Nairobi. 2. Nakuru. 3 Eldoret, and 4 Kitale.

The Bank is managed by a professional team of management who are ably supervised by a Board of Directors consisting of eminent personalities of society having high level of integrity and professional skills in their respective areas of operations. We are committed to provide quality banking Service to our customers, however by strictly adhering to the Regulatory Guidelines as applicable within Kenya and, internationally. Our emphasis always remains on carefully following ‘Know your Customers’ and ‘Anti Money Laundering’ Guidelines.

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Corporate banking,Personal banking, Industrial finance, Agricultural finance,Financing of trade, International banking Oriental Bank Commerce has been ranked 38th amongst top 500 companies by The Economic Times. OBC has earned 9th position among top 50 trusted brands in India.

Oriental Bank Commerce India maintains relationship with more than 200 leading international banks worldwide. OBC India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

MANAGEMENT PROFILE

Name

Designation

Sh.T.Y. Prabhu Sh. H Ratnakara Hegde Sh. S.C Sinha V Vijay Sai Reddy R S Maharishi U K Khaitan K B R Naidu Sumita Dawra Sh. S.K Newley Vijay Jagirdar T Valliappan C K Sabharwal

Chairman and Managing director Executive Director Executive Director Director Director Director Director Director Director Director Director Director

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SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors) The commercial banking structure in India consists of:
• •

Scheduled Commercial Banks in India Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), cooperative banks and regional rural banks. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank". The following are the Scheduled Banks in India (Public Sector):
• • • • • • • • • • • • •

State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank

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• • • • • • • • • • • • •

Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):
• • • • • • • • • •

ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd YES BANK

The following are the Scheduled Foreign Banks in India:
• • • • • • • • • • • •

American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hongkong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG.

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PRODUCTS AND SERVICES

Saving Accounts
How to Open an Account?

Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3. Introduction about you from a person known to the bank preferably by an . Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.

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4. Furnish PAN or declaration of Form No. 60 / 61as the case may be. The minimum balance will be:-

Types

In Rural / Semi Urban branches Rs. 100 Rs. 500

In Urban / Metropolitan branches Rs. 500 Rs. 1000

Without Cheque Book Facility With Cheque Book Facility

FOR SENIORS CITIZENS AND PENSIONERS Without Cheque Book Facility With Cheque Book Facility Rs. 20 Rs. 250 Rs. 20 Rs. 250

Current Account –
How to Open an Account?

Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any

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reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.

4. Furnish undertakings/ documents/ declarations as applicable. Please refer Current Account opening form for details.

5. Furnish PAN or declaration of Form No.60 / 61 as the case may be.

6. Minimum deposits.

In Rural / Semi Urban branches Rs. 500 Pragati Deposit Scheme

In Urban / Metropolitan branches Rs. 5000

LAUNCH OF “ORIENTAL BANK PRAGATI ACCOUNT SCHEME”

Name of the scheme Date of Commencement Eligibility

ORIENTAL BANK PRAGATI ACCOUNT SCHEME 14.08.2007 ALL NEW CURRENT ACCOUNTS

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Minimum Amount of Deposit and balance to be maintained Validity of Scheme Add on Facilities

Urban & Metropolitan Rs.5000/Rural & Semi-urban Rs.1000/For a limited period only 1. One Free ATM/ Debit Card for every Account. The ATM/Debit Card may also be permitted to the partners of the firm/Directors of the Company who are authorized to operate the Account. 2. Free Personal Accident (Death) insurance cover of Rs. 1 Lac (1st year) 3. Waiver of 100% ABB Charges during the 1st year. 4. Free internet / Tele banking 5. Waiver of Demat Account Maintenance Charges (for One Year)

For Accounts maintaining Average daily Additional Benefits Current Account Balance of Rs. 5 Lacs or more 1. Free Draft issuance Facility 2. Free RTGS Facility upto Rs.5 Lacs. (However, mandatory RBI charges plus applicable service tax shall be recovered.

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Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, OBC Farmers Welfare Trust Corporate Banking - Gold Card scheme for exporters, EXIM finance Business Sector - OBC Karigar credit card, OBC Kushal Udhami, OBC Pragati Udhami, OBC Vikas Udhami Flexi Fixed Deposit Scheme:We are pleased to inform that Flexi Deposit Scheme for the benefit of our depositor customers has been approved by the Board on 18th October 2006. This scheme shall come into operation w.e.f. 1st November 2006. The features of the scheme are as under: PRODUCT & BENEFIT: Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method. However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance.

LOANS

Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country:
• • • • •

Personal Loan Car Loan or Auto Loan Loan against Shares Home Loan Education Loan or Student Loan

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In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000 depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee. Loan against shares is very easy to get because liquid guarantee is involved in it. Home loan is the latest craze in the banking sector with the development of the infrastructure. Now people are moving to township outside the city. More number of townships is coming up to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading. The educational loan, rather to be termed as student loan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER

Beside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders. It has been only a couple of years that banks have jumped into the money transfer businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through 2009.

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FUTURE OF BANKING IN INDIA A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake in PSBs, and increased participation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created new competitive threats as well as new opportunities. This paper aims to foresee major future banking trends, based on these past and current movements in the market. Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future of banking would be in terms of integration. This is already becoming a reality with new-age banks such as YES Bank, and others too adopting a single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management.

OVERVIEW If one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers (you and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours (maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any macro-environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the
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government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. ‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system.

RISK MANAGEMENT The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes. With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure. ‘The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.’

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ACHIEVEMENTS

Oriental bank of commerce announced its Q1FY2010 results on 29 July 2009, delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of expectations on account of large treasury gains, apart from healthy operating performance.

While the bank’s deposit growth was reasonably robust at 4.4% sequentially and 26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% yo-y.

In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y.

Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends, even as Fee income was also robust at 45% y-o-y, on the back of strong balance sheet growth.

Operating expenses were higher than expected on account of Rs150 crore of provisions for imminent wage hikes.

Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the bank not adopting the guidelines of treating floating provisions as part of tier 2 capital instead of adjusting against NPAs on express permission from the RBI.

AWARDS AND DISTINCTIONS
• • •

Ranked among top 50 companies by the leading financial daily, Economic Times. Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London. Earned 9th place among India's Most Trusted top 50 service brands in Economic TimesA.C Nielson Survey. Included in the top 1000 banks in the world according to The Banker, London.

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Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of Directors.

FICCI's Rural Development Award for Excellence in Rural Development – 2005

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COMPANY’S MISSION AND VISION
Vision & Mission Statement

Our Vision
To be a sound all India, customer centric, efficient retail bank with contemporary size, technology and human capital; endeavouring to enrich lives across all sections of society; and committed to upholding the highest standards of corporate governance.

Our Mission

To provide the finest banking services by upgrading human capital and infusing advanced technology, thereby achieving total customer satisfaction; and being reckoned as the “Best Bank” in the Industry on all efficiency parameters.

To enhance shareholders’ wealth by ensuring sound growth of business and make valuable contributions to national economic growth.

VALUES AND ETHICS
• • • • • Bonding and Integrity Ethical conduct Periodic disclosure Confidentiality and fair dealing Compliance with rules and regulations

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STATEMENT OF THE PROBLEM This Study will help us to understand the consumer’s satisfaction about banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and Oriental Bank of Commerce in particular.

NEED FOR THE STUDY

The deeper the company understands of consumer’s needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important.

This study will help companies to customize the service and product, according to the consumer’s need.

This study will also help the companies to understand the experience and expectations of the existing customers.

SCOPE OF THE STUDY
This study is limited to the consumers with in New Delhi city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services, It also help banks to know whether the existing products or services the are offering are really satisfying the customers needs.

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OBJECTIVE OF THE STUDY
 To have an insight into the attitudes and behaviors of customers.  To find out the differences among perceived service and expected service.  To produce an executive service report to upgrade service characteristics.  To understand consumer’s preferences.  To access the degree of satisfaction of the consumers

REASERCH METHODOLOGY
A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might provide.This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-forprofit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

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SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of different branches of Oriental Bank of Commerce.

SAMPLING METHOD
A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A convenience sampling technique was used to collect data from the respondents.

METHOD OF DATA COLLECTION
To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis was done for each question’s response to reach into findings, suggestions and finally to the conclusion about the topic.

TYPES OF DATA
Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem

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Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible. PRIMARY DATA Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.

LIMITATIONS OF THE STUDY
Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz, 1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed. 2. Sample size:

Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents.
3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information. 4. It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

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TABLE:- 1 PERCENTAGE OF PEOPLE HAVING BANK ACCOUNT Bank Account Yes No Total Percentage 93% 7% 100%

GRAPH Graphical representation of the people having bank account

Analysis: - From the above table and graph it can be seen that only 7% of the people having
no bank account while the other 93% have theirs in different banks. This data is presented in both the table and graphical presentation.

Interpretation: So we can conclude most of the people have accounts in various banks for
having different reasons like , to have safety of money, to transact easily with others etc.

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TABLE-2 Transaction of different banks in the market
p Banks SBI OBC PNB AXIS ICICI Other ercentage 22% 24% 20% 11% 13% 10%

Graph

Analysis: - From the former table and graphs we can see people have accounts like in SBI
22% , in OBC 24%,in PNB20%, in AXIS 11%,inICICI 13% and in other banks there are only 10% accounts among all the respondents.

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Interpretation: It is concluded here that OBC have its popularity of having alarge no. of
accounts in the studied area for its best service in all sectors. TABLE : 3 SHARE OF DIFFERENT TYPES OF ACCOUNTS SL. No. NATURE OF ACCOUNTS NUMBER OF RESPONDEN TS 78 9 4 3 6 100 PERCENTAG E OF RESPONDEN TS 78% 9% 4% 3% 6% 100%

1. 2. 3. 4. 5. Total

Saving A/Cs Current A/Cs Fixed Deposits Loans Others

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products)

Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most.

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TABLE :4 TABLE SHOWING MOTIVE BEHIND THE SELECTING OBC SL.NO 1. 2. 3. 4. ATTRIBUTE Brand name Customer service Interest Others SCORE 56 30 12 2 RANK 1 2 3 4

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for ‘Brand name’, secondly they prefer ‘satisfaction’, and then ‘returns on investment’. Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting.

TABLE- 5

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THE CUSTOMERS SATISFACTION WITH INTEREST RATE OF OBC

Satisfied Yes No Total

Percentage 82 18 100 Classification Based on level of customer

satisfaction with the interest provided by OBC

Analysis: - The customers are satisfied largely on the interest rate of OBC compare to any
other banks i.e. 82% which is elaborated in the above table and graphs.

Interpretation:
of OBC.

so we can concluded that the customers are satisfied with the interest rate

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TABLE- 6 HOW THE CUSTOMERS SATISFIED WITH INTEREST RATES OF BANKS SL NO. NAME OF BANKS 1 SBI 2 3 4 5 TOTAL PNB OBC ICICI OTHERS NO. OF RESPONDENTS 26 15 36 9 14 100 PERCENTAGE OF RESPONDENTS 26% 15% 36% 9% 14% 100%

GRAPH Classification Based on level of customer satisfaction with the interest rate of banks.

Analysis: The above table shows that 36% of the respondents prefer OBC firstly. Thereafter
they prefer other banks like SBI,PNB etc. Likewise SBI-26%, PNB-15%, ICICI-9% and other banks 14%.

Interpretation: From these all it can be concluded that a major part of the customers are
satisfied with the interest rate of OBC .

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TABLE:7 CONSUMERS WILLINGNESS TO SHIFT THEIR A/C s TO OTHER BANKS

SL. No.

RESPONSES

NUMBER OF RESPONDENTS 8 92 100

PERCENTAGE OF RESPONDENTS 8% 92% 100 %

1. 2. TOTAL

Shift Doesn’t shift

Analysis: From this table it can be noted that the majority of consumers (92%) doesn’t like to shift their A/Cs to other banks. Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.

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TABLE: 8 SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY OBC BRANCH SL. No. RESPONSE NUMBER OF RESPONDENTS 89 11 100 PERCENTAGE OF RESPONDENTS 89% 11% 100 %

1. 2. TOTAL

Satisfied Not satisfied

Analysis: From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are not satisfied. Interpretation: Most of the respondents are satisfied with the service offered by Oriental Bank
of Commerce. Presently the bank offers varieties of services and the customers are getting a

good rate of return from their deposits. Customers are getting good service from the bank.

TABLE:9

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RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE INSURANCE COMPANY SL. No. 1. 2. 3. 4. 5. TOTAL RATINGS EXCELLENT VERY GOOD GOOD AVERAGE POOR NUMBER OF RESPONDENTS 05 09 76 06 04 100 PERCENTAGE OF RESPONDENTS 5% 9% 76% 6% 4% 100 %

Analysis: From this table it could be inferred that 76% of the consumers have rated service offered as ‘good’, 9% of them have rated them as ‘very good’, and 05% of them have rated as excellent and average’ while only 4% have rated as ‘poor’, .Interpretation: Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing a good service to the customers due to increased competition in the market. This may be the reason for more satisfaction. TABLE- 10

Which product of OBC is beneficiary to Customer?

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Product Saving A/c (SA) Current A/C (CA) Fixed Deposit (FD) Loan A/C (LA) Insurance (INS) Total

Percentage 47% 23% 17% 05% 08% 100%
GRAPH

Classification Based on level of various types of account provided by banks.

Analysis: - It is seen that more customer have savings account like 47% in OBC. Likewise
there are 23% current account , 17% fixed deposit ,5% loan and only 8% insurance.

Interpretation: So it is clear that there are more savings account in OBC as compare to other
accounts and services.

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Findings

1..Most of the respondents are having Saving A/Cs . 2. Most of the respondents are satisfied with the service offered by Oriental Bank of Commerce .
3. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank . 4. people are now looking forward for better customer service in addition to the brand name in

which they are investing and the returns they are getting.
5. The reason can be increasing customer satisfaction and quality services offered by the bank.

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CONCLUSIONS
The project entitled “A STUDY TO UNDERSTAND THE CUSTOMER SATISFACTION AT OBC” has helped me in studying satisfaction about services and products offered to consumers.

Since the opening up of the banking sector, private banks are in the fray each one trying to cover more market share than the other. Yet, OBC is far behind SBI, PNB. OBC must also be alert what with Private Banks (ICICI, HDFC) breathing down its neck. I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition. In short, I would like to say that the very act of the concerned management at OBC in giving me the job of critically examining consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress. I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right.

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SUGGESTIONS
With regard to banking products and services, consumers respond at different rates, depending on the consumer’s characteristics. Hence I OBC should try to bring their new product and services to the attention of potential early adopters.  Due to the intense competition in the financial market, OBC should adopt better strategies to attract more customers.  Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes.  OBC should adopt effective promotional strategies to increase the awareness level among the consumers.  OBC should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future.  The OBC brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, OBC should work hard to maintain its position and offer better service and products to consumers.  The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied.  Majority of the people find banking important in their life, so OBC should employ the strategies to convert the want in to need which will enrich their business.

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Bibliography:
Books

• •

Research Methodology by C.R. KOTHARI, 2nd edition. Marketing Management by PHILIP KOTLER, 11th edition.

1. WEBSITE

www.obcindia.co.in www.google.com

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Customer Feedback Form
Name of Customer ……………………………………………………………….....................................

Address…………………………………………………………………………………………………….. A/C No………………………......Age………….Sex……………Contact no……………………………..

1. Do you have any bank account? Yes No

2. If yes, than in which bank you have done your transaction? SBI OBC PNB AXIS ICICI

Others ____________ 3. Which type of account you have? SAVING A/C 4. Why you choose OBC? Customer service Brand name interest others CURRENT A/C FIXED DEPOSIT A/C

5. Do you satisfied with the interest provided by your bank? Yes No

6. Which bank provided better interest rate? SBI PNB OBC ICICI Other

7. Are you interested to sift the account to other bank? Shift 8. Doesn’t shift

Are you satisfied with the service provided by OBC?

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Satisfied 9.

Not satisfied

How you rate the insurance product of OBC? Excellent Very good Good Average Poor

10. Which product of OBC would you like? SA Other CA LA Insurance

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