A

Summer Internship Project Report

On

“To Study Customer Awareness towards Services of SBI”

At
SBI
Duration: From 02nd June, 2015 to 16th July, 2015

Submitted To:

Gujarat Technological University, Ahmedabad.

In Partial Fulfillment of
Master of Business Administration

Submitted By:

Dhara J. Dudhat (147600592020)

Master of Business Administration
Batch 2014 – 2016

Guided By:

[Miss Nisha Rakholiya]

Assistant professor

Smt. S. H. Gajera MBA Mahila College, Amreli

1
2
 GUIDE’S CERTIFICATE

To,

The Registrar,
Gujarat Technological University,
Ahmadabad.

Subject: MBA Summer Internship Project Report

Dear Sir / Madam,

I am recommending that project report on “To study Customer Awareness towards

Services of SBI Bank Amreli” prepared by Ms. Dhara J. Dudhat from 02nd June,
2015 to 16thJuly, 2015 at SBI Bank Amreli as the partial fulfillment for the
M.B.A degree of Gujarat Technological University, Ahmadabad.

Thanking You.

Yours faithfully,

(Miss. Nisha Rakholiya)

3
 DECLARATION

I, Miss Dhara J. Dudhat a student of M.B.A. studying in Smt. S. H. Gajera MBA

Mahila College, Amreli. Declare that the project work in this report is done and
prepared by me under fully supervision of Miss Nisha Rakholiya & has not been
previously submitted to any other university for any other examination.

Place: Amreli

Date:

Signature: Dhara Dudhat

4
 PREFACE

I know that training is for the development and enhancement of the knowledge in
particular field. It can never be possible to make a mark today’s competitive era
only with theoretical knowledge when industries are developing at global level,
practical knowledge of administration and management of business is very
important. Training bridges the gap between the theoretical and practical aspect.

When a view to expand the boundaries, I have undergone 2nd sem. Training at SBI.
I have made a deliberate effort to collect the information and fulfill the training
objective

Place: Amreli

Date:

Signature: Dhara Dudhat

5
 ACKNOWLEDGEMENT

Individual effort alone can never lead to successful completion of any project.
Thus, I would not be able to do work alone if I do not state our gratitude and
appreciation to those who helped me in making my project valuable.

Through this acknowledgment I express my sincere gratitude toward all those

people who help me in preparation of this project report which has been a learning
experience.

I hereby acknowledge my sincere thanks and gratitude to SBI for allowing me

training of all departments.

I would like to thanks the director of our college Dr. Vijay H. Pithadia. I received
guidance from my Prof. Nisha Rakholiya. I would like to lot of thanks her also.

Place: Amreli

Date:

Signature: Dhara Dudhat

6
 CONTENT

Sr Particulars Page
No. No.

Executive Summery 1

1. INTRODUCTION 2

1.1 Introduction of Topic 3

1.2 Industry Overview 8

1.2.1 History of Banking 8

1.2.2 Banking in India 10

1.2.3 Development of Banking Industry 11

1.2.4 Market Players 12

1.3 Bank Overview 13

1.3.1 History of SBI 13

1.3.2 SBI Profile 14

1.3.3 Services Provided by SBI 15

1.3.4 Vision and Mission 16

1.3.5 Development of SBI 17

1.3.6 SWOT Analyses 18

1.3.7 BCG Matrix 19

2 Literature Review 21

3 Research Methodology 27

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 3.1 Research Problem Statement 28

3.2 Objectives of the Study 28

3.3 Hypothesis Testing 29

3.4 Research Design 29

3.5 Method of Data Collection 29

3.6 Scope of the Study 30

3.7 Significance of the Study 30

4 Analysis and Interpretation of Data 31

5 Finding 44

6 Suggestions and Conclusion 46

6.1 suggestions 47

6.2 Conclusion 48

Bibliography 49

Annexure 51

8
 LIST OF FIG., TABLES AND CHARTS

Sr Particulars Page
No. No.
1.1 Fig: BCG Matrix 19

4.1 Table and Chart: Occupation of the Customers 32

4.2 Table and Chart: period of deal with Bank 33

4.3 Table and Chart: Contact With SBI 34

4.4 Table and Chart: Types of A/c in Bank 35

4.5 Table and Chart: Selection of Bank 36

4.6 Table and Chart: Types of customers who knows services of SBI 37

4.7 Table: Customers Awareness 38

4.7 Chart: Customers Awareness 39

4.8 Table and Chart: Customers Satisfied with services 40

4.9 Table and Chart: Satisfaction of customers 41

4.10 Table and Chart: Preference of other Banks 42

9
 EXECUTIVE SUMMARY

Before 1989-90, when State Bank of India (SBI) was exercising exhaustive control
over the rate of interest. The SBI determined the rate of over deposits and order of
SBI in this regards was applicable to all banks and implementation was uniform
and there was no space for competition in this field.

Since 1990-91, the government has accepted policy of open financial management.
The banks are required to work and face through competition in this field and the
reasons for this are:

The effect of these developments in the banking field also affected the principal
aims and objectives of the banks, After nationalization, the bank had to be prepared
to accept the challenges of social responsibilities to achieve the goals of five year
plan.

The banking sector in India has undergone remarkable changes since the economic
reforms in the sector, which provided much needed impetus for the growth of
sector as of whole.

10
 CHAPTER – 1

INTRODUCTION

11
 1.1 INTRODUCTION OF TOPIC

The services offering is among the most crucial element in marketing of banking
and services. The service is an integral part of the banking. Services are the word
used interchangeably in banking parlance. Services are provided with focus, which
include the satisfaction of wants and needs of customers. Without such focus, no
service can exist for a long period of time. There are several other services of SBI
which are as follows:

 Demat
 Lockers
 Demand draft
 O.B.C. and I.B.C. services
 G.E.B. Bill collection
 Telephone Bill collection
 Tele-Banking
 Stamp franking facility
 General Insurance
 Life Insurance
 Sale of gold coin
 Merchant Banking
 E’booking

DEMAT POLICY

Demat facility is available in “SBI”. It converts the physical certificates of an

investor to an equivalent number of securities in electric form. The converted
securities are owned, traded and utilized like physical certificate. Physical form of
share is fraught with fake, forgery stolen and duplicate problem before the

12
introduction of depository system, the problem faced by the investors & corporate
in handling large volume of papers were as follows:

 Bad Deliveries
 Fake Certificate
 Loss of Certificate
 Mutilation of Certificate
 Delays in Transit
 Long Settlement cycle
 Mismatch of signature
 Delay in refund and remission of dividend, interest, etc.

Demat Account overcomes these constraints.

LOCKERS

Locker facility is also available with bank as per the requirement of user. For the
same user has to deposit some amount with bank and has to pay annual rent to
bank. User has one the keys of the locker and bank has other key of that locker.

DEMAND DRAFT SERVICES

Demand draft service is also available with bank. Bank has tie up with HDFC
Bank & AXIS Bank and gets some commission for the same.

G.E.B. BILL COLLECTION

G.E.B. bills are collected by bank on behalf and with permission of Gujarat
Electricity Board. Bank gets some commission for the same.

13
O.B.C & I.B.C

It is a service provided by bank where it collects the outstation cheques/bills of

particular location of Gujarat state only. It charges some fees for the same and also
some commission charge. Bank accepts cheques up to Rs. 1,00,000 only. Bank is
offering collection of outstation cheques/ Bills at following outstation location at
very reasonable charges.

Ahmadabad, Bhuj, Dhoraji, Jasdan, Jetpur, Morbi, Padadhari, Surat,

surendranagar, Upleta, Wankaner.

TELE – BANKING

Tele banking facility is provided by bank to its customers at fee of cost. Customers
of bank ask for any query related to their account or to nbank services. They can
ask for balance inquiry.

STAMP FRANKING FACILITY

Franking (or “Franks”) are any and all devices or markings such as postage
stamps (including printed and/or embossed on postal stationery, printed or stamped
impressions, codings, labels, manuscript writings (including “privilege”
signatures), and/or any other authorized form of markings affixed or applied to
mails to qualify them to be post ally serviced.

GENERAL INSURANCE

Reliance general insurance (ADA group) and SBI enter into banc assurance
partnership. Reliance general insurance company limited, the leading private sector
general insurer has announced a strategic and comprehensive partnership with SBI
to provide insurance products to its customer base. Under this arrangement, SBI
would make available a wide range of Reliance general insurance products and
services to its customers through its branch.

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LIFE INSURANCE

Reliance Life Insurance offers you products that fulfill your savings and
protection needs. Our aim is to emerge as a transnational Life Insurer of global
scale and standard. Reliance Life Insurance is an associate company of Reliance
Capital Ltd., a part of reliance group. Reliance Capital is one of India’s leading
private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance
capital has interests in asset management and mutual funds, stock broking, life and
general insurance, proprietary investments, private equity and other activities a
financial services.

SALE OF GOLD COIN

One of the most rewarding types of coin collecting is finding rare coins right in
normal circulating coinage. You simply can’t go wrong with searching bank
wrapped rolls of coins! You buy the coins at face value, search them for errors,
varieties, and rare coins, and then sell the rejects back to the bank to get more coins
to search! Sounds like a dream come true, right? Most Bank Wrapped Coins
Come From the Federal Reserve.

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MERCHANT BANKING

The merchant banker are those financial intermediary involved with the activity of
transferring capital funds to those borrowers who are interested in borrowing. The
activities of the merchant banking in India is very vast in nature of which includes
the following

a) The management of the customer’s securities

b) The management of the portfolio,
c) The management of projects and counseling as well as appraisal
d) The management of underwriting of shares and debentures
e) The circumvention of the syndication of loans
f) Management of the interest and dividend etc

E’BOOKING

The SBI is providing different online ticket booking of airlines, railway and ST. It
is very useful for every customer to solve their distance problem.

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 1.2 INDUSTRY OVERVIEW

1.2.1 HISTORY OF BANKING

Without a sound and effective banking system in India, it cannot have a healthy
economy the banking system of India should not only be hassle-free but it should
also be able to meet new challenges posed bt the technology and any other external
or internal factors.

For the past three decades, India’s banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the
main reasons of India’s growth process. The government’s regular policy for
Indian bank since 1969 has paid rich dividends with the nationalization of 14 major
private bank of India.

Not long ago, an account-holder had to wait for hours at the bank counters for
getting draft or for withdrawing his own money. Today, he has a choice. There
were days when the most efficient banks were taking two days to transfer money
from one branch to other. Now it is simple as instant messaging or dials a pizza.
Money has become the order of the day.

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The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian banking system can be segregated into four distinct
phases. They are mentioned as below:

1. Early phase from 1786 to 1969 of Indian banks (pre- nationalization)

2. Nationalization of Indian banks and up to 1991 prior to Indian banking
sector reforms.
3. New phase of Indian banking system with the advent of Indian financial
and banking sector reforms after 1991(liberalization)
4. Current scenario

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1.2.2 BANKING IN INDIA

The Reserve Bank of India (RBI) is India’s central bank. Through the banking,
industry dominated by public sectors. Numerous and foreign bank. India’s
government owned banks dominate the market. Their performance has been mixed
with a few being consistently profitable. Several public sector banks are being
restructured and in some the government either already has or will reduce its
ownership.

Banking can be described as the business of running an establishment where

money is deposited in accounts, withdraw and borrowed also by the customer.
Banks perform their function of attracting deposits and providing credit. However
banks are function for customer satisfaction rather than being just a more
intermediary.

Banking system in India consist of indigenous bank including money lenders,

shroff, mahajans, sheth etc. and the paganized sectors which include commercial
bank, exchange bank, co-operative bank, regional rural bank and non-schedule
private bank. The organized sector works under the guidance of RBI.

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1.2.3 DEVELOPMENT OF BANKING INDUSTRY

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 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 from the imperial Bank of India, which, upon India’s
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 type of banks, as well as the PSUs and the banks; they have been
joined since 1990s by new private commercial banks and a number of foreign
banks.

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1.2.4 MARKET PLAYERS

 BOB
 PNB
 Central Bank
 Dena Bank
 Union Bank
 BOI
 IDBI Bank
 Canara Bank
 Vijaya Bank
 Syndicate Bank
 Oriental Bank

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 1.3 BANK OVERVIEW

1.3.1 HISTORY OF SBI

The roots of the State Bank of India rest in the first decade of 19th century. When
the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal and two other presidency banks, namely, the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporate on
1 July 1843). All three presidency banks were incorporated as joint stock
companies, and were the result of the royal charters.

These three banks received the exclusive right to issue paper currency in 1861 with
the paper Currency Act, a right they retained until the formation of the Reserve
Bank of India. The presidency banks amalgamated on 27 January 1921, and the
reorganized banking entity took as its name Imperial Bank of India. The Imperial
Bank of India continued to remain a joint stock company. Pursuant to the
provisions of the State Bank of India Act (1955), the Reserve Bank of India, which
is India’s central bank, acquired a controlling interest in the Imperial Bank of
India. On 30 April 1955 Imperial Bank of India became the State bank of India.

The Govt. of India recently acquired the Reserve bank of India’s State in SBI so as
to remove any conflict of interest because the RBI is the country’s banking
regulatory authority. Offices of the Bank of Bengal in 1959 the Government passed
the state Bank of India (Subsidiary Banks) Act, enabling the State Bank of India to
take over eight former State-associated banks as its subsidiaries. On Sept 13, 2008,
State Bank of saurashtra, one of its Associate Banks, merged with State Bank of
India. SBI has acquired local banks in rescues. For instance, in 1985, it acquired
Bank of Cochin Kerala, which had 120 branches. SBI was the acquired as its
affiliate, State Bank of Travancore, already has an extensive network in Kerala.

22
1.3.2 SBI PROFILE

Type : Public

Industry : Banking, financial services

Founded : 1 July 1955

Headquarters : Mumbai, Maharashtra, India

Area served : Worldwide

Key people : Arundhati Bhattacharya

(Chairman)

Products : Credit cards, consumer banking,

Corporate banking, finance

insurance, investment banking,

Mortgage loans, private banking,

Wealth management

Owner(s) : Government of India

Employees : 70

Website : www.sbi.com

23
1.3.3 SERVICES PROVIDED BY SBI

DEPOSITS

The bank offers various attractive deposit schemes at higher interest rates than
other nationalized banks. To suit the needs and pocket of various segments of
society, the bank keeps modifying the terms, conditions and interest rates on the
deposits in order to encourage more and more people to open their accounts with
the bank.

SAVING ACCOUNTS

A saving bank account (SB account) is meant to promote the habit of saving
among the people. It also facilitates the money. In this scheme fund is allowed to
be withdrawn whenever required, without any condition. Hence, a saving account
is safe, convenient and affordable way to save your money. Bank deposits are
fairly safe because banks are subject to control of the Reserve bank of India with
regard to save policy and operational parameters. Bank also pays for you a
minimal interest for keeping your money with them.

CURRENT ACCOUNT

Current account is primarily meant for businessmen, firm, companies, public

enterprises, etc. That have numerous daily banking transactions. In a current
account a customer can deposit any amount of money any number of times. He can
also withdraw any amount as many times as he want, as long as he has funds to his
credit. Current accounts are meant neither for the purpose of earning interest nor
for the purpose of saving but only for convenience of the business.

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1.3.4 VISION AND MISSION

VISION……

A pioneering, Apolitical and Responsive officer’s Union movement with

Enlightened values, Committed Cadre, Inspiringly led, ever at the services of the
members, the Bank and the community at large.

MISSION……

To carry the torch of an exemplary SBI Officers Union Movement; Ever alive to
Uniting, Protecting, Securing and Satisfying the committed and enthused members;
Ever facilitating the growth and development of quality Bank professionals; Ever
offering trusteeship role in meeting the challenges of SBI in the face of changing
Economic Scenario; Ever trusting in continuous search, improvement and
education with a concern for all that is noble, just and praiseworthy in our
movement, Bank and Nation.

25
1.3.5 DEVELOPMENT OF SBI

State Bank of India (SBI) is a multinational banking and financial services

company based in India. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. As of December 2012, it had assets of
US$501 billion and 15,003 branches, including 157 foreign offices, making it the
largest banking and financial services company in India by assets.

The bank traces its ancestry to British India, through the Imperial Bank of India, to
the founding in 1806 of the Bank of Calcutta, making it the oldest commercial
bank in the Indian Subcontinent. Bank of Madras merged into the other two
presidencies banks-Bank of Calcutta and Bank of Bombay-to form the Imperial
Bank of India, which in turn became the State Bank of India. Government of India
nationalized the Imperial Bank of India in 1955, with Reserve Bank of India taking
a 60% stake, and renamed it the state Bank of India. In 2008, the government took
over the stake held by the Reserve bank of India. SBI was ranked 285th in the
fortune Global 500 rankings of the world’s biggest corporations for the year 2012.

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
the country.

The State Bank of India was named the 29th most reputed company in the world
according to Forbes 2009 rankings and was the only bank featured in the “top 10
brands of India” list in an annual survey conducted by Brand Finance and The
Economic Times in 2010.

26
1.3.6 SWOT ANALYSIS

STRENGTHS

 Strong domestic market position sustaining reach and customer confidence.

 Strong capital position helping growth initiatives.
 SBS merger further hastens SBI and its associate bank merger and helping
defend its leadership position.

WEAKNESS

 Reduction in assets quality increasing in non performing assets ratio.

 Suscepictable to political intervention.

OPPORTUNITIES

 SBI could be higher beneficiary from the increasing adoption of E-

traction.
 Investment in information technology will decrease traction cost of SBI.
 Growth in general insurance industry will help increasing market share.

THREATS

 Opening of Indian Banking sector in 2009 will intense competition.

 Global economic slow down could reduce demand for banking service in
India.

27
1.3.7 BCG MATRIX

The Boston Consulting Group’s

Growth-Share Matrix
Market Growth Rate

20%- Stars Question marks

?2
4
18%-
16%-
14%-
3 ? 1
12%- 5
10%-
8%- Cash cow Dogs
6%- 8
4%-
2%- 6 7
0
10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x
Relative Market Share

[ FIG. 1.1]

 Cash cows are units with high market share in a slow-growing industry.
These units typically generate cash in excess of the amount of cash needed
to maintain the business. They are regarded as staid and boring, in a
“mature” market, and every corporation would be thrilled to own as many
as possible. They are to be “milked” continuously with as little investment
as possible, since such investment would be wasted in an industry with low
growth.

28
  Dogs, more charitably called pets, are units with low market share in a
mature, slow-growing industry. These units typically “break even”,
generating barely enough cash to maintain the business’s market share.
Though owning a break-even unit provides the social benefit of providing
jobs and possible synergies that assist other business units, from an
accounting point of view such a unit is worthless, not generating cash for
the company. They depress a profitable company’s return on assets ratio,
used by many investors to judge how well a company is being managed.
Dogs, it is thought, should be sold off.

 Question marks (also known as problem children) are business operating

in a high market growth. But having a low market share. They are a starting
point for most businesses. Question marks have a potential to gain market
share and become stars, and eventually cash cows when market growth
slows. If question marks do not succeed in becoming a market leader, then
after perhaps years of cash consumption, they will degenerate into dogs
when market growth declines. Question marks must be analyzed carefully
in order to determine whether they are worth the investment required to
grow market share.

 Star are units with a high market share in a fast-growing industry. They are
successful question marks and become a market leader in a high growth
sector. The hope is that stars become next cash cows. Stars require high
funding to fight competitions and maintain a growth rate. When growth
slows, if they have been able to maintain their category leadership stars
become cash cows, else they become dogs due to low relative market share.

SBI is in STAR position it means SBI having HIGH market growth and HIGH
market share. Because from last five years it continuously profit making and also
having excellent market share.

29
 CHAPTER – 2

LITERATURE REVIEW

30
By Dr. Chilumuri Srinivasa Rao ( 1999), Consumer awareness is about making
the consumer aware of his/her rights. In terms of economic output, rural India
accounts for almost half (48%) of the country’s economy, and the rural markets
have the potential to reach $500 billion by 2020. E-banking was gradually
replacing the traditional branch banking system. Customer awareness is necessary
to identify the key success factors to survive in intense competition and increase
the market share. The objective of the research paper is to assess the customer
awareness about different services provided by the SBI particularly in rural India.
This research paper is based on secondary data which is to be collected from the
official website of Stare Bank Of India, Reserve Bank of India and from different
oral primary sources.

By J. U. Ahmed (2008), In the modern customer centric competitive arena,

satisfaction and quality prove to be key factors reciprocally interrelated in a causal,
cyclical relationship. The higher the service quality, the more satisfied are the
customers. With the current change in the functional orientation of banks, the main
driver of bank success and survival is fulfilling customer needs and expectations.
Thus, customer satisfaction is quite a complex issue.

7 Yuvrajdabhi , 2011 , An Empirical study on Consumer Awareness on

Internet Banking in Gujarat E-Banking refers to electronic banking. E-banking
is also pronounced as/ advocated as/ stated as virtual banking or online banking or
banking without wall. E-banking involves information based banking under the
Information Technology System.

Bank provides a variety of products & services to the customer, the various offered
by the banks can be utilized by the customers only when they are aware of the
services, Researcher in this paper has attempted to evaluate to Internet banking
literature by providing insights on the factors that affect Internet banking adoption.

31
It is submitted that in this qualitative exploratory research using questionnaire was
applied. 25 respondents were selected for study after initial screening. They were
all bank customers. The awareness of customers about the online services and their
expectations from online banking activities in Gujarat are evaluated through a
survey.

Consumer Awareness- The Role of Banks S. Gayathry (2013), Services and

facilities offered by the banks to their customers establish the connecting link
between the banker and the customers. They are the medium through which the
banks launch their relationship with their customers. The core of banking does not
merely lie in the acceptance of deposits from the public and advancement of loans
to the needy businessmen.

A competitive advantage provides customers with superior value compared with

competitive offerings. The present study concentrates on the effectiveness of banks
in creating awareness among the customers about various services/facilities offered
by them. The present study has also made an earnest attempt to suggest valuable
propositions to the banker to create awareness among the customers about the
various services.

By Agha Tahir Ijaz, Asghar Ali (2013), Service quality a reflection of

organizational performance is known as ultimate measure of customer’s
satisfaction especially in the services sector which retains customers for life. The
purpose of this study was to measure banks service attitude by assessing
employees and customer’s perceptions of Pakistani banks. A convenience
sampling technique was used in which spectrum of 200 customers and 100
employees of sampled banks participated in the survey. A five dimensional
instrument SERVQUAL adapted from relevant studies was used to measure
service attitude of Pakistani banks which was found reliable at 0.8213 Cranach’s
alpha, mean scores, alphas, and Independent samples t-test was used for
significance.

32
 By Dr. Mrs. G. Santhiyavali (2008), Customer service is an integral part of any
organization. It is necessary to identify the key success factors in term of customer
satisfaction so as to survive in intense competition and increase the market share.
Today, the concept of core banking has made ‘Any where and any time’ banking a
reality. Along with technology, banking services have also evolved and delivery of
various banking products are carried out through the medium of high technology at
a fraction of the customer. In this scenario the present study was conducted to
evaluate the service quality of State Bank of India by identifying the major factors
responsible for customer satisfaction. To support the objective of the study,
SERVQUAL technique based on the model developed by A. Parasuraman et al
(1988) was adopted. The factor analysis clearly indicates that among five
dimensions ‘Reliability’, ‘Responsiveness’, ‘Empathy and Tangibility’ are the
major factors responsible for customer satisfaction which stood at 90 percent
regarding the services provided by State Bank of India.

The relationship of customer awareness, customer loyalty, and profitability:

an empirical study As suggested by Zahorik and Rust (1992), these is clearly a
need for more quantitatively driven empirical research in the area of specific,
implemental recommendations for managers. As firms begin to measure both
customer awareness and customer loyalty more completely, specific actions can be
recommended that will optimize managers’ investment in improved service. The
relationship among customer awareness, customer loyalty, and profitability
warrant further research. Researchers may benefit from avoiding three of the
difficulties encountered in this paper.

33
First, to degree possible they should work with an organization to develop
exemplary measurement systems before measuring awareness, loyalty, and
profitability. This should benefit both organization and the research.

Second, they may want to focus on industries other than banking, both for the
purpose of extending external validity and to examine whether variance explained
will dramatically increase for data sets from industries in which profitability can be
expected to be more immediately tied to customer awareness.

These are the customers who are most likely to remain with that bank for long
periods, which will purchase multiple products and services, who will recommend
the bank to their friends and relations, and who may be the source of superior
returns to the bank’s shareholders.

Taken Research Proposals of Customer awareness in Banking Sector by

Muhammad Naveed ( 1990), It appears that what consumers are saying is that
they expect good products and services from their bank and that what is important
to them is to have courteous and professional employees whom they can trust to
explain them; and correct problems when they happen. In the product arena, by far
the most important issues surround the checking account.

While banks have had the checking product pretty much to themselves in the past,
the emergence of interest based banks, and the “creep” of large non-banks into the
checking business should be an alarm bell for banks who want to improve
customer awareness. Other “alarm bells” emerging from the study are such
attributes as: Rates on Savings/CDs; Fees and Service Charges; ATMs; and Hours
of Operation.

These are among the attributes where banks score the lowest or where the gap
between “importance” and “awareness” is the highest. Additional charts tables
showing this detail may be seen on the site…cliensatisfaction.com “Loyalty”
measures the strength of a customer’s awareness, But it goes beyond, and also
indicates the “action ability” of that loyalty. The ABA Financial Client awareness
Index measures loyalty in three areas…. Deposit Services…Loans and Investment.

34
Customer awareness can also be high even with mediocre performance quality if
the customer’s expectations are low, or if the performance provides value.
Likewise, a customer can be dissatisfied with the service encounter and still
perceive the overall quality to be good.

This occurs when a quality service is priced very high and the transaction provides
little value. The final link in the model is the effect of customer loyalty on
profitability. The fundamental assumption of all the loyalty models is that keeping
existing customers is less expensive than acquiring new ones. It is claimed by

Reichheld and Sasser (1990) that a 5% improvement in customer retention can

cause an increase in profitability between 25% and 85% depending upon the
industry. However, Carrol and Reichheld (1992) dispute these calculations,
claiming that they result from faulty cross-sectional analysius. Schlesinger and
Heskett, 1991.

35
 CHAPTER – 3

RESEARCH

METHODOLOGY

36
3.1 RESEARCH PROBLEM STATEMENT

“Customer Awareness towards Services of SBI”

To know the Awareness level of customer on banking services At SBI. If they

awarded or not, than what are the reasons for that.

3.2 OBJECTIVES OF THE STUDY

Main objective of study is to know company fundamentals and practical

knowledge of market, equally important as theoretical knowledge. Field work,
research, collecting data, etc along with the day-to-day services of the company,
creates value addition for the both. This will help to again a deeper understanding
of the work, culture, and deadline pressure etc. Of an organization. It provides an
opportunity to apply the concept learnt in real-life situations. It provides the
platform to work in a practical environment and help to improve further.

Primary objective:

 Awareness of customers towards services provided by bank.

Secondary objectives:

 To survey of satisfaction level of the clients.

 To know about the position of company in the mind of the customers.

37
 3.3 HYPOTHESIS TESTING

H0 : Customers are aware toward services of SBI

Ha : Customers are not aware toward services of SBI

3.4 RESEARCH DESIGN

 The study is about customer awareness about other services of SBI.

 The study is carried out at SBI.
 Primary and secondary data required and collected there by questionnaire,
personal interview, report & publication.
 The same has been accomplished through experiment.

3.5 METHOD OF DATA COLLECTION

Data type Primary data, Secondary data

Data collection method Questionnaire, Brochures, Annual reports

Research design Descriptive

Sample size 50

38
3.6 SCOPE OF THE STUDY

 As my project is “Customer Awareness towards Services of SBI”, my main

focus is to found the awareness of banking services among customer and
for that my scope is Amreli City of Gujarat region.

 Research helps to know the satisfaction level of the SBI’s customer from
Bank’s services.

 I have taken 50 sample size and doing the survey of the customer who have
account in the SBI and I have fill up questionnaires from the only Amreli
City.

 Market Research also tries to find out the identification of acceptance of

new brand extension or line extension.

3.7 SIGNIFICANCE OF THE STUDY

 To be aware of the core banking system.

 To become familiar with the bank regular works.
 Desire to face the challenges of corporate world.
 This study will be helpful to the bank to know the customer behavior.

39
 CHAPTER – 4

ANALYSIS AND

INTERPRITATION OF

DATA

40
Q) Occupation of the customer

Criteria No. %

Business 20 40%

Employed 10 20%

Retired 12 24%

Student 3 6%

Other 5 10%

Total 50 100%

[TABLE 4.1]

20

Business
Employed
Retired
50 10
Student
Other
Total
12

3
5

[CHART 4.1]

Interpretation:

From the above content I can see that the research that contain the data of
businessmen, employed people, retired person and we also include student for
knowing actual data.

41
 Q) Since how long you deal with the bank ?

Criteria Less than 1 yr. 1 to 5 yr. 5 & above

No. Of customer 10 15 25

% 20% 30% 50%

[TABLE 4.2]

No. of customer

10

less than 1 yr.

25 1 to 5 yr.
5 & above

15

[CHART 4.2]

INTERPRETATION:

From the given data I can analyze that near about 50% of customer who deals in
bank since more than 5 year and 30% of customer who are with 1 to 5 year and
20% of customer who deals with less than 1 year and they are very much satisfied
with the services of bank

42
Q) How often you have been in contact with SBI ?

Criteria No. %

Daily 13 26%

Weekly 10 20%

Monthly 7 14%

Not fix 20 40%

Total 50 100%

[TABLE 4.3]

No.

13

Daily
10
Weekly
50 Month
7
Not fix
Total

20

[CHART 4.3]

INTERPRETATION:

From the above research I can analyzed that 26% customer visit bank daily, 20%
are visit bank weekly, 14% in monthly and 20% are not fixed.

43
Q) Which type of accounts do you have in bank ?

Types of A/C No %

Saving A/c 12 25%

Current A/c 10 20%

Recurring A/c 10 20%

Fixed deposit A/C 10 20%

Other 8 15%

Total 50 100%

[TABLE 4.4]

No.

25
Saving A/C
20 Current A/C
Recurring A/C
100
20 Fixed deposite A/C
Other

20 Total

15

[CHART 4.4]

INTERPRETATION:

From the above analysis 25% customer are invest in saving a/c, 20% are in current
a/c, recurring a/c, and fixed deposit a/c and 15% are in other a/c.

44
Q) Your selection of bank based on……

Selection No. %

Safety 10 20%

Service 15 30%

Reputation 7 14%

Rates 12 24%

Proximity 6 12%

Total 50 100%

[TABLE 4.5]

No.

10
Safety
15 Service
Reputation
50
Rates
7
Proximity
Total
12
6

[CHART 4.5]

INTERPRETATION:

From the above research 30% customer are using this bank for their services and
remaining for other criteria.

45
Q) Which types of customers are knows about the other services
of SBI ?

Criteria No. %

Business 15 30%

Employed 15 30%

Retired 10 20%

Student 5 10%

Other 5 10%

Total 50 100%

[TABLE 4.6]

No.

15
Business
Employe
15 Retired
50
Student
Other
10 Total
5
5

[CHART 4.6]

INTERPRETATION:
From the above research mostly 15% customer who are business man and
employed are know about the other services of bank, 20% are retired, 10% are
student and are mostly know about the services of bank.

46
Q) Is customer are aware towards the services of SBI ?

Services Aware Not Aware

Demat 29 21

Lockers 37 13

Demand draft 41 9

O.B.C. and I.B.C. services 20 30

G.E.B. Bill collection 40 10

Telephone bill collection 25 25

Tele-banking 27 23

Stamp franking facility 13 37

General insurance 33 17

Life insurance 28 22

Sale of gold coin 12 38

Merchant banking 11 39

E’ booking 32 18

[TABLE 4.7]

47
 45
40
35
30
25
20
15
10
5 Aware
0 Not Aware

[CHART 4.7]

INTERPRETATION:

From the above analysis of 50 customers I will see that from that customer how
many customers are aware about the services of SBI and they use these services or
not.

48
Q) Is customer satisfied with the services of bank ?

Criteria No. %

Yes 33 66%

No 17 34%

Total 50 100%

[TABLE 4.8]

No.

33
Yes
50 No
Total

17

[CHART 4.8]

INTERPRETATION:

From the above research I analyzed that 66% are satisfied with the services of bank
and remaining 34% are not satisfied.

49
Q) What is the level of satisfaction of customer ?

Option No. %

Highly satisfied 11 22%

Satisfied 25 50%

Indifferent 13 26%

Dissatisfied 1 2%

Highly dissatisfied 0 0%

Total 50 100%

[TABLE 4.9]

No.

11
Highly satisfied
Satisfied

25 Indifferent
50
Dissatisfied
Highly dissatisfied
Total
13

01

[CHART 4.9]

INTERPRETATION:

From this research question, I can analyze satisfaction level of the customer is near
about 50% of the customers are satisfied with the service of the bank and near
about 22% of customer are highly satisfied with the other services given by co-
operative bank.
50
Q) Do you prefer another branch for your transaction?

Banks Respondents %

ICICI 8 16%

SBI 18 36%

HDFC 15 30%

IDBI 09 18%

Total 50 100%

[TABLE 4.10]

Respondents

ICICI
18
SBI

50 HDFC
IDBI
15 Total

[CHART 4.10]

INTERPRETATION:

I have done survey and by this survey I come to know that out of 50 many
customers are preferred HDFC bank & also SBI bank.

51
 HYPOTHESIS TESTING

H0: Customers are aware towards services of SBI

Ha: Customers are not aware towards services of SBI

Criteria Fo fe (fo-fe)2

Fe

Aware 27 25 0.16

Not aware 23 25 0.16

Total 0.32

X2 = ∑ ( fo-fe)2

Fe

Chi-Square Test:-

Calculated value = 0.32

Tabulated value = 3.8415

5% level of significance

0.32 < 3.8415

x2c < x2t

So that test is insignificance. And H0 is accepted.

From the above calculation, I can say those customers are aware towards
services of SBI.

52
CHAPTER – 5

FINDINGS

53
 FINDINGS

 The strong points of the SBI, its financial strength, amount of depositors
and good services.

 In some of the area like service, firm is very fine & flexible.

 One of the important point is that new client comes through the
recommendations of the existing customers.

 The main thing is that the SBI is lacking the marketing in the area.

 The new client must be member of the SBI. (Share holder)

 In the area of other services of Bank customer are not aware more.

 The tendency to donate generously to institutions by the Board of

Directors of the Bank is commendable.

 Practice of easy availability of office bearers of the bank for the members,
a customer is well adopted. This also serves as the intelligent agency to
keep a watch on the way and means how the Bank advances are utilized.

54
 CHAPTER – 6

SUGGESTIONS ,
CONCLUSION &
LEARNING FROM THE
PROJECT

55
 6.1 SUGGESTIONS

 Many people want the on-line Demat facility from the bank.

 It is also required to increase working hours not like private bank but more
than the other banks because it creates very good image in the mind of the
people.

 The SBI must have to adopt new and advances technology, by this
adoption bank can provide better quality service and process and savings of
time.

 Bank has to take customer satisfaction review periodically like some

private banks.

 To improve efficiency of employees of Banks, provide a full fledged

training centre for the benefits of the employees. It should be established
and regularly run by the bank.

 Installation of more number of ATMs with proper functioning.

56
 6.2 CONCLUSION

It is felt that offering good banking facilities in the rural areas is a vital for success
of any banks especially SBI. Still SBI should increase the customer’s satisfaction
by rendering various social services. On the basis of the findings of the present
study some constructive, practicable and viable suggestions have been made. If the
administrative policy makers of the SBI seriously consider all the suggestive
measures, no doubt that even in the competitive trend SBI shine and it will
continue to be a leading bank in Indi

57
 BIBLIOGRAPHY

 C.R.Kothari,1995,Research Methodology ,New Age International ltd.,2nd

Edition ,Chapter 2 ,pg no. 2 & 3

 Colin A Carter, “The Reaction of live hog futures prices to USDA hogs
and pigs reports” , Australian journal of agriculture and resource
economics, vol.43(2), pg. 209-247, 1971.

 Kamara, “commodity future trading” Issues in future market: A survey,

journal of future market, vol.2, pp. 261-294, 1982.

 Raymond M. Leuthold, “commodity future and option,” review of

agriculture economics, vol.32 (2), pg. 235-272, 2004.

 Roger Hallowel “empirical study on relationship of customer satisfaction,

loyalty & profitability” – hardware business school Boston MA, USA.

 Mahammad Naveed, Research proposals, “Customer satisfaction in

banking sector” – MBA 3rd (morning), business research method.

 Dr. Chilumuri Srinivasa Rao “Consumer Awareness in Rural India with

special reference to E-Banking services of State Bank of India”
http://theglobaljournals.com/paripex/file.php?val=NzUx:
( 10th july 2015. 1:30 p.m)

 J. U. Ahmed “Services rendered by Commercial Bank: A Customer

Oriented Empirical Evidence from Sate Bank of India.

58
 S. Gayathry “Consumer Awareness- The Role of Banks”
http://www.ijird.com/index.php/ijied/article/view/526:
( 12th july 2015. 10:30 p.m)

 Agha Tahir Ijaz, Asghar Ali “Measuring Service Attitude: An approach to

employee and customer activities”
http://iosrjournals.org/iosr-jbm/papers/Vo17-issue2/H0726066.pdf:
( 9th july 2015. 9:00 p.m)

 Dr. Mrs. G. santhiyavalli “Customer’s perception of service quality of state

Bank of India – A Factor Analysis
http://www.ijmbs.com/13/gsanthivalli.pdf: ( 10th july 2015. 12:30 p.m)

Banking Frontiers, Vol. 10, July 2011, Page no. 15

Banking Frontiers, Vol. 10, July 2011, Page no. 34
Banking Frontiers, Vol. 10, July 2011, Page no. 50
Banking Frontiers, Vol. 10, No. 2 June 2011, Page no. 30
Banking Frontiers, Vol. X No. 2, May 2011, Page no. 9

59
 ANNEXURE

Dear Sir/Madam,

I am Dhara Perusing MBA Mahila College. I am preparing a project report

on CUSTOMER AWARENESS TOWARDS SERVICES OF SBI .As a part of
my report I have prepared this questionnaire to know the reasons why most of the
people prefer customer awareness towards services of SBI .Please fill the given
questionnaire as per your thinking and experiences. And your personal details will
be not disclosed to anyone. I will be thankful to you for this.

1) Since how long you deal with the SBI?

A.) Less than 1 year [ ]

B.) 1 to 5 year [ ]
C.) More than 5 year [ ]

2) How often you been in contact with the SBI?

A.) Daily [ ]
B.) Weekly [ ]
C.) Monthly [ ]
D.) Not fix [ ]

60
3) Which type of accounts do you have in bank?

A.) Saving A/C [ ]

B.) Current A/C [ ]
C.) Recurring A/C [ ]
D.) Fixed deposit A/C [ ]
E.) Other [ ]

4) Your selection of bank based on………

A.) Safety [ ]
B.) Services [ ]
C.) Reputation [ ]
D.) Rates [ ]
E.) Proximity [ ]

5) Is customer satisfied with the services of bank?

Yes [ ]

No [ ]

61
6) Are you aware towards services of SBI bank?

Services Aware Not Aware

Demat

Lockers

Demand draft

O.B.C. and I.B.C. services

G.E.B. Bill collection

Telephone bill collection

Tele-banking

Stamp franking facility

General insurance

Life insurance

Sale of gold coin

Merchant banking

E’ booking

62
7) What is the level of satisfaction of customer?

A.) Highly satisfied [ ]

B.) Satisfied [ ]
C.) Indifferent [ ]
D.) Dissatisfied [ ]
E.) Highly dissatisfied [ ]

8) Do you prefer another branch for your transaction?

A.) ICICI [ ]
B.) SBI [ ]
C.) HDFC [ ]
D.) IDBI [ ]

9) General information of customers:-

A.) Name:-
B.) Address:-
C.) Occupation: - Business[ ] Employed[ ] Students[ ]
retired[ ] Other[ ]

10) Any suggestions from you?

63
64