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OBJECTIVE OF THE STUDY

 PRIMARY OBJECTIVE: To analyze the service quality and customer loyality with respect to the various service provided by the public and private banks.

 SECONDARY OBJECTIVE:
1. To identify customer satisfaction variables which lead to building relationship with customers . 2. To study the difference in perception of the customers of the bank towards various services provided by public and private banks. 3. To identify the strategies of banks to satisfy their customers.

In many place in the world business organisation have been elevating the role of the customer to that of a key stakeholder over the past 20 years. where they stand in comparison to their competition. Evidence is mounting that placing a high priority on customer satisfaction (CS) is critical to improved organisational performance in a global marketplace.SIGNIFICANCE OF THE STUDY Satisfied customers are central to optimal performance and financial returns. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. With better understanding of customer’s perception. chart out path future progress and improvements in the work practices and processes used within the company. They can identify their own strengths and weaknesses. banks can determine the actions required to meet the customer’s needs. . Forward looking banks are finding value in directly measuring and tracking customer satisfaction as an important strategic success indicator.

The study was conducted to find out the level of satisfaction about the services provided by both the banks among its customers. .FOCUS OF THE STUDY The focus of the study is confined in comparing private and public banks in terms of customer satisfaction. The study will be undertaken on the basis of sample survey. the bank can also frame certain competitive marketing strategies to outperform the market leader. The study will help the bank in analyzing the reasons as to why the customers are not using the services that are provided by the bank. With the help of the study. The basic requirement for conducting this study was to examine the customer feedback and their knowledge about various services provided by the public and private banks in Sonipat region. It will help the bank to finalize its marketing strategy by suggesting few marketing steps that would help the bank in obtaining larger market share.

tele-banking. Automated Teller Machines (ATM).CONCEPTUALISATION With years. Electronic Clearing Service (ECS). The customers have more choices in choosing their banks. New technological capabilities could be effectively used to create value and to better manage customer relationships. or a person who. A customer can be defined as a user or potential user of banking services. A competition has been established within the banks operating in India. Few of the technology-driven electronic banking services being offered are viz. In order to survive in this competitive environment and provide customer satisfaction. forcing them to re-engineer many of their basic processes and systems. . banks are adding services to their customers. as much as the differences in their strategic approaches to computerization and technology absorption.The efficiency of a banking sector depends upon how best it can deliver services to its target customers. Electronic Funds Transfer (EFT). A customer would include an account holder. on his own initiative. the providers of banking services are now required to continually improve the quality of services. internet banking etc. or a person carrying out casual business transactions with a bank. It is to know how much private and public banks improves their services to provide customer satisfaction. Banks are at different stages of technology adoption partly due to their different legacies. The Indian banking industry is passing through a phase of customers market. or his representative. may come within the banking . The new age IT (Information Technology) is bringing about changes in the banking industry.

The financial institution offers services in personal and corporate banking. autos.fixed and .com on july 28. with some 5.more than 50 years before the country was partitioned into India and Pakistan in 1947. Despite the global slowdown.2012 NEW DELHI: Punjab National Bank has revised housing loan rates on various maturities.36 lakh crore during the end of June 2012. HDFC has also decided to hike home loan rates by 50 basis points (100 basis points = 1%).news. The bank was established in Lahore in 1895 -.com on July 30. in lines with similar moves by the bigger player SBI and other PSU banks. HDFC said that it would increase interest rates for all types of loans . In regard to the overall business. Bank of India.  Source-3: www.000 locations. although the state-owned PNB witnessed lesser increase in profit.2011 Punjab National Bank (PNB) is one of India's largest nationalized banks. PNB saw Rs 6. and education.50 percentage point hike in housing loans. agricultural.79 lakh crore ahead of ICICI Bank with an overall business mix of Rs 5. including industrial. The city-based bank announced a 0.LITERATURE REVIEW  SOURCE 1: www. as well as international banking. Canara Bank. non-resident Indians. PNB's diverse client list includes Indian conglomerates.answers. There are many banks that posted rise in non-performing assets (NPAs) consisting PNB. Its personal lending services include loans for housing. both fixed and floating. effective Tuesday. and multinational companies.com ON 15 May. and export finance.indiamart.  SOURCE 2: http://www. small and midsized businesses. Union Bank of India registered double-digit growth in the profit. Central Bank of India and Union Bank of India.2012 Public sector lender Punjab National Bank (PNB) has beat private sector lender ICICI Bank in regard to overall business in the June quarter ended June 30.pnjabnewsline. various banks consisting HDFC Bank.

comonjuly29.68% during the period from 0. which include deposits and loans.Defying the impact of economic slowdown. HDFC sources said. the difference between these two banks in terms of total business. In terms of total business.29% in the same period of the previous fiscal. These include a wide range of customers and range from small & medium enterprises to large corporate borrowers. Net NPA also rose to 1. pre-payment options and any other matter which affects the interest of the borrower. With this. PNB clocked Rs 6. the bank has various segments to which credit facilities are provided for their business requirements. payable for processing.86% in the same period of previous year. The bank's gross NPA surged to 4. Bank of India .  Source 5 www. many others have also reported jump in non-performing assets. The .floating.  Source4:www.PNB overtook ICICI Bank as the second largest bank in the country in March 2010 and has constantly increased margin.hdfcbank. However.2012 Punjab National Bank (PNB ) marches ahead of the country's largest private sector lender ICICI Bank in terms of total business. As part of the wholesale banking business.36 lakh crore at the end of June 2012.2012 The bank would have loan application forms for retail advances and credit cards. These would include information about the fees/charges. all the leading players like SBI.87% against 2.com on may19. While the interest on fixed rate loans would start at 10. if any.75% per annum. Another public sector bank which recorded over 1% increase in gross NPA was Central Bank of India. The gross NPA of PNB as a proportion of advances went up significantly to 3. is about Rs 1.43 lakh crore at the end of first quarter.Thus.79 lakh crore much ahead of the its private sector peer ICICI Bank with a total business mix of Rs 5. so that a meaningful comparison with that of other banks can be made and an informed decision can be taken by the borrower. the amount of such fees refundable in the case of non acceptance of application. Central BankofIndia and UnionBankofIndia. Union Bank of India posted double-digit growth in profit. though it witnessed lesser increase in profit during the quarter ended June 30. Canara Bank.34% against 2% at the end of June last year. These include PNB. Oriental Bank of Commerce and Bank of Baroda have hiked home loan rates. the floating rate would start at 9%.timesofindia. several banks including HDFC Bank .

Thus. Thus. . the focus is on contacting prospective customers and encouraging them to avail of banking services from HDFC Bank based on the incremental value we can add to a customer's business. we do not have any standardized application forms to be submitted by prospective customers. rather than customers making applications to the Bank for facilities / services. for the wholesale banking segment.bank has a process for identification of target customers to whom facilities can be provided based on customer selection and risk assessment for that segment.

The three main acts of doing research are searching for. It may be described as the conceptual structure with in which the research is conducted. research requires organization. nor is surfing the Internet. which determines the course of action towards the collection and analysis of required data. In this descriptive as well as exploratory research design has been used. and reaching new conclusions. Research methodology has many dimensions. Learning what research is not may help you fully grasp the concept. It is a framework. reflection. and above all. reviewing. scholarly resources. resourcefulness. Randomly selecting books from the library is not research. synthesis.RESEARCH METHODOLOGY Research Research is the investigation of a particular topic using a variety of reliable. and evaluating information. . analyzing information. The three major goals of research are establishing facts.  RESEARCH DESIGN: A research design is the arrangement of conditions for collection and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. Thus in a way it is a written game plan for concluding research. On the contrary. A research design is the specification of methods & procedure for acquiring the information needed. time. Therefore in order to solve our research problem it is necessary to design a research methodology for the problem as the same may differ from problem to problem. This is overall operation pattern or frame work that stipulates information is to be collected from which sources and by what procedure. it includes not only the research methods but also considers the logic behind the methods used in the context of the study and explains why only a particular method or technique had been used so that search lend themselves to proper evaluation.

Secondary data can be collected from: o Books o Annual reports of the company o Journals and Magazines o Websites  METHOD OF COLLECTING DATA:The method used in collecting the information are:. PRIMARY DATA Primary data are those which are collected afresh and for the first time. . There are several methods for collecting primary data but some important methods are: o Observation method o Interview method o Through questionnaire II.DATA COLLECTION Data collection can be broadly classified into two categories: I.   Questionnaire (Schedule). SECONDARY DATA Secondary data are those which have already been collected by someone else and which have already been passed through statistical process. Survey and manuals of various departments.

Newspaper Survey Structured Questionnaire. Sampling in simply the process of learning about the population on the basis of a sample drawn from it. Journals. Primary Secondary ::Through Questionnaires Through Internet. Thus. SAMPLE DESIGN:Sampling is defined as the selection of some part of an aggregate. in sampling instead of every unit of universe only part of universe is studied and the conclusion is drawn for the entire universe.  ANALYSIS PATTERN  Tables  Pie Charts  Bar Diagram. 50 Work had done in Sonipat Random sampling. Exploratory and Descriptive Data Collection Procedure: Research Instrument: Sample Size: Sample Area: Sample procedure: Research design used- .

David Garvin identifies five perspectives on quality: 1.Value based define “affordable excellence”. 4. User based definition says that quality lies in the eyes of the beholder which define quality with maximum satisfaction and demand oriented perspective recognizes that different customers have different wants and needs.SERVICE QUALITY AND ITS MODEL  SERVICE QUALITY: Company personnel need a common understanding in order to be able to address such issues as the measurement of service quality. The transcendent view of quality is applied to the performing and visual arts. CONTRASTING QUALITY COMPONENTS IN MANUFACTURING AND SERVICES Manufacturing. 2. the identification of causes of service quality shortfalls. 3. It argues that people learn to recognize quality only through the experience gained from repeated exposure.Based Components of Quality:      Performance (primary operating characteristics) Features (bells and whistles) Reliability (probability of malfunction or failure) Conformance (ability to meet specifications) Durability (how long the product continues to provide value to the customer) .  PERSPECTIVES ON SERVICE QUALITY The word quality means different things to people. and the design and implementation of corrective actions. The product based approach creates differences in the amount of an ingredient or attribute possessed by the product.

The knowledge gap is the difference between what service providers believe customers expect and customers’ actual needs and expectations. 1. 3. 2.Service. credibility and security) Empathy (easy access.Based Components:      Tangibles (appearance of physical elements) Reliability (dependable. . good communication and customer understanding) THE GAP MODEL: A CONCEPTUAL TOOL TO IDENTIFY AND CORRECT SERVICE QUALITY PROBLEMS Balance customer expectations and perceptions and to close any gaps between the two: GAPS IN SERVICE DESIGN AND DELIVERY Their are four potential gaps within the service organisation that lead to a final and most serious gap : the difference between what customers expected and what they perceived was delivered. The standards gap is the difference between management’s perceptions of customer exceptation and customers’ actual needs and expectations. courtesy. accurate performance) Responsiveness (promptness and helpfulness) Assurance (competence.