CHAPTER-1

INTRODUCTION

1
1.1 Introduction to Banking Industry:

People earn money to meet their day-to-day expenses on food, clothing, and education of children,
housing, etc. They also need money to meet future expenses on marriage, higher education of
children, house building and other social functions. These are heavy expenses, which can be met
if some money is saved out of the present income. Saving of money is also necessary for old age
and ill health when it may not be possible for people to work and earn their living.

The necessity of saving money was felt by people even in olden days. They used to hoard money
in their homes. With this practice, savings were available for use whenever needed, but it also
involved the risk of loss by theft, robbery and other accidents. Thus, people were in need of a
place where money could be saved safely and would be available when required. Banks are such
places where people can deposit their savings with the assurance that they will be able to withdraw
money from the deposits whenever required. People who wish to borrow money for business and
other purposes can also get loans from the banks at reasonable rate of interest.

History of Indian Banking System

2015 1786
History of Banking Ist bank in
Banking acts
in India india i.e
as a
backbone of General Bank
Indian of India
Economy

1993 1969 1913-1948

Private Sector Nationalizat (1100 small
banks came in ion of Banks banks opened
in India)

2
Types of Banks

Global Trends

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal
Bank.

The East India Company established:

1. Bank of Bengal (1809),

2. Bank of Bombay(1840) and

3. Bank of Madras (1843) as independent units and called it Presidency Banks.

3
These three banks were amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders. During the first phase the
growth was very slow and banks also experienced periodic failures between 1913 and 1948. There
were approximately 1100 banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act
No.23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority. During those day’s public has lesser
confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings
bank facility provided by the Postal department was comparatively safer. Moreover, funds were
largely given to the traders. Government took major steps in this Indian Banking Sector Reform
after independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of nationalization
Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought
80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions
in the Country:

1. 1949: Enactment of Banking Regulation Act.

2. 1955: Nationalization of State Bank of India.

3. 1959: Nationalization of SBI subsidiaries.

4. 1961: Insurance cover extended to deposits.

5. 1969: Nationalization of 14 major banks.

6. 1971: Creation of credit guarantee corporation.

7. 1975: Creation of regional rural banks.

8. 1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India raised to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the

4
sunshine of Government ownership gave the public implicit faith and immense confidence about
the sustainability of these institutions.

This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name
which worked for the liberalization of banking practices. The country is flooded with foreign
banks and their ATM stations. Efforts are being put to give a satisfactory service to customers.
Phone banking and net banking is introduced. The entire system became more convenient and
swift. The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.
This is all due to a flexible exchange rate regime, the Foreign Reserves are high, the capital
account is not yet fully convertible, and banks and their customers have limited foreign exchange
exposure.

BANKING CODES AND STANDARDS:

The Banking Codes and standards Board of India is an independent and autonomous banking
industry body that monitors banks in [Link] improve the quality of banking services in India S
S Tarapore (former deputy governor of RBI) had the idea to form this committee.

ADOPTION OF BANKING TECHNOLOGY:

The IT revolution has had a great impact on the Indian banking system. The use of computers
has led to the introduction of online banking in India. The use of computers in the banking sector
in India has increased many fold after the economic liberalisation of 1991 as the country's banking
sector has been exposed to the world's market. Indian banks were finding it difficult to compete
with the international banks in customer service, without the use of information technology.

Automatic teller machine growth:

The total number of automated teller machines (ATMs) installed in India by various banks as of
2018 was 2,38,000.[39] The new private sector banks in India have the most ATMs, followed by

off-site ATMs belonging to SBI and its subsidiaries and then by nationalised banks and foreign
banks, while on-site is highest for the nationalised banks of India

5
NATIONALIZED BANKS IN INDIA :

Banking System in India is dominated by nationalized banks. The nationalization of banks in India
took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind
nationalization was to spread banking infrastructure in rural areas and make available cheap
finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State of India
(SBI) was only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of
1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven
more banks were nationalized with deposits over 200 crores

CLASSIFICATION OF BANKS:

Banks are classified into classified into four categories –

1. Commercial Banks

2. Small Finance Banks

3. Payments Banks

4. Co-operative Banks

Commercial Banks can be further classified into public sector banks, private sector banks, foreign
banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into
urban and rural. Apart from these, a fairly new addition to the structure is payments bank.

6
7
PUBLIC SECTOR BANKS:

8
PRIVATE SECTOR BANKS:

These include banks in which major stake or equity is held by private shareholders. All the
banking rules and regulations laid down by the RBI will be applicable on private sector banks as
well. Given below is the list of private-sector banks in India.

9
FOREIGN BANK:

A foreign bank is one that has its headquarters in a foreign country but operates in India as a
private entity. These banks are under the obligation to follow the regulations of its home country
as well as the country in which they are operating. Given below is the list of foreign banks
operating in India –

10
1.2. Introduction to AXIS BANK.

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the • Unit Trust of India (UTI-I) •
Life Insurance Corporation of India (LIC) • General Insurance Corporation Ltd. Also with
associates viz. National Insurance Company Ltd., the New India Assurance Company, The
Oriental Insurance Corporation and United Insurance Company Ltd.

EVOLUTION: UTI was established in 1964 by an Act of Parliament; neither did the Government
of India own it nor contributes any capital. The RBI was asked to contribute one-half of its initial
capital of Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-holders.
The State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital
each, and the rest was contributed by scheduled commercial banks which were not nationalized
then. This kind of structure for a unit trust is not found anywhere else in the world. Again, unlike
other unit trusts and mutual funds, the UTI was not created to earn profits. In the course of nearly
four decades of its existence, it (the UTI) has succeeded phenomenally in achieving its objective
and has the largest share anywhere in the world of the domestic mutual fund industry. '' The
emergence of a "foreign expert" during the setting up of the UTI makes an interesting story. The
announcement by the then Finance Minister that the Government of India was contemplating the
establishment of a unit trust caught the eye of Mr. George Woods, the then President of the World
Bank. Mr. Woods took a great deal of interest in the Indian financial system, as he was one of the
principal architects of the ICICI, in which his bank, First Boston Corporation Bank, had a sizeable
shareholding. Mr. Woods offered, through Mr. B.K. Nehru, who was India's Executive Director
on the World Bank, the services of an expert. The Centre jumped at the offer, and asked the RBI
to hold up the finalization of the unit trust Proposals till the expert visited India. The only point
Mr. Sullivan made was that the provision to limit the ownership of units to individuals might
result in unnecessarily 11 restricting the market for units. While making this point, he had in mind
the practice in the US, where small pension funds are an important class of customers for the unit

11
trusts. The Centre accepted the foreign expert's suggestion, and the necessary amendments were
made in the draft Bill. Thus, began corporate investment in the UTI, which received a boost from
the tax concession given by the government in the 199091 Budget. According to this concession,
the dividends received by a company from investments in other companies, including the UTI,
were completely exempt from corporate income tax, and provided the dividends declared by the
investing company were higher than the dividends received.

The result was a phenomenal increase in corporate investment which accounted for 57 per cent of
the total capital under US-64 scheme. Because of high liquidity the corporate sector used the UTI
to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby which
perhaps subtly opposed the establishment of the UTI in the public sector made use of it for its
own benefits later. The Government-RBI power game started with the finalization of the UTI
charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be nominated by
it, and one more nominee would be on the Board of Trustees. While finalizing the draft Bill, the
Centre changed this stipulation. The Chairman was to be nominated by the Government, albeit in
Consultation with RBI. Although the appointment was to be made in consultation with the
Reserve Bank, the Government could appoint a person of its choice as Chairman even if the Bank
did not approve of him.

Later on in 2002 the UTI was renamed to Axis Bank.

INTERNET BANKING

Since April 2000, the Internet Banking channel has grown fast to com pelmet the branch and ATM
network. As of March 2006, there are around 20 lakh users of internet banking, which amounts
to more than 50% of Axis Bank’s retail banking savings accounts customers. Apart from routine
functional like balance and transactions lookup, we also provide a number of value – added
services on the internet banking platform. A bride description of each product is given below:

Bill Payment The bill payment series on the internet can be classified into three categories: •
Presentment of EBPP (Electronic Bill Presentment and Payment).- Under this type of bill
payment, the customer needs to register for each bill. Once registered, the biller will sent an
electronic version of the bill for acceptance and payment.

12
• Direct Payment. - Under this type of bill payment, no bill presentment happens. The customer
is free to select the biller and pay accordingly to his convenience.

• Payee: This a variation of direct payment method with the customer creating his own biller for
example, payment of rent to landlord. The landlord’s account details would typically be entered
and payment made on a recurring basis.

Shopping A customer with Internet banking access can buy from merchants registered with us
and pay through the direct debit facility on Axis Bank’s website.

Axis bank offers Corporate services, like:

1. Exclusive Banking Redefined - Club50 Current Account At a half yearly average balance of
Rs. 50 lacs (Rs. 25 lacs at Semi - Urban / Rural branches), this premium current account smoothly
fulfills your daily banking requirement. Main Features:

1. Dedicate relationship manager

2. Lifestyle benefits/ privileges

3. Free doorstep banking

4. Free RTGS / NEFT Facility

5. Cash Management Services

6. Free International Business Gold Debit Card

2. Various types of Current Accounts to suit every business requirements like:

The Banks offers a range of current account products to meet the needs of the various customer
segments such as Small Enterprises, Trade, Exproers, Corporate and intuitions.

1. Normal Current Account

2. Business Advantage Account

3. Business Select Account

4. Business Classic Account

5. Business Privilege Account

6. Channel One Account

13
 7. Current Account for Govt Organisations

8. Current Account for Banks

9. Current Account for Builders & Real Estate

10. Capital Market Current Account

11. Krishi Current Account

12. Business Global Current Account

13. Club 50 Current Account

14. Inland Road Transport Current Account

15. Travel, Tourism and Hospitality Current Account

16. Local Current Account Current Account for Pharma

17. Current Account for Chartered Accountants

These products offer flexibility to customers to choose from the above option with varying
minimum average quarterly balance commitments and charges structure. In addition to
conventional banking facilities, these accounts offer Multi-City at Par payable cheque – book
facility and anywhere banking facility across offer Multi – city At Par payable cheque – book
facility and any where banking facility across braches. Customers can access their account Online
through Corporate iConnect, Axis Bank’s Internet banking platform as also through Tele-Banking
facility and can receive account balance information on mobile telephones and electronic mail.
Customers are subject to transaction charges including charges for non-maintenance of the
committed balances. Axis Bank brings different kinds of current accounts for different types of
businesses select the one that best suits an individual’s business requirements. Axis Bank’s
Current Account came equipped with the following features to give maximum value for an
individual’s money.

CORPORATE PROFILE

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum
of financial services to customer segments covering Large and Mid Corporates, SME, Agriculture
and Retail Businesses.

14
The Bank has a large footprint of 1787 domestic branches (including extension counters) and
10,363 ATMs spread across 1,139 centres in the country as on 31st December 2012. The Bank
also has 7 overseas branches / offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai,
DIFC - Dubai and Abu Dhabi.

Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India
(SUUTI) (then known as Unit Trust of India),Life Insurance Corporation of India (LIC), General
Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance
Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI,
an entity established in 2003.

With a balance sheet size of Rs.2,85,628 crores as on 31st March 2012, Axis Bank is ranked 9th
amongst all Indian scheduled banks. Axis Bank has achieved consistent growth and stable asset
quality with a 5 year CAGR (2007-12) of 31% in Total Assets, 30% in Total Deposits, 36% in
Total Advances and 45% in Net Profit. The Corporate Office of Axis Bank is located at Axis
House Mumbai. Axis House has received the ‘Platinum’ rating awarded by the US Green Building
Council for its environment friendly facilities and reduction of carbon emission.

SUBSIDIARIES The Bank has set up six wholly-owned subsidiaries: Axis Securities and Sales
Ltd. (Since renamed Axis Capital Ltd.) Axis Private Equity Ltd. Axis Trustee Services Ltd. Axis
Asset Management Company Ltd. Axis Mutual Fund Trustee Ltd. Axis U.K. Ltd.

PROMOTERS:

UTI Bank Ltd. has been promoted by the largest and the best Financial Institution of the
country,UTI. The Bank was set up IN 1993 with a capital of Rs. 115 crore, with • UTI contributing
Rs. 100 crore, • LIC - Rs. 7.5 crore • GIC and its four subsidiaries contributing Rs. 1.5 crore each.

Axis Bank is today one of the most competitive and profitable banking franchise in India. Which
can be clearly seen by an analysis of its comprehensive portfolio of banking services including
Corporate Credit, Retail Banking, and Business Banking,Capital Markets, Treasury and
International Banking.

15
CAPITAL STRUCTURE

The Bank has authorized share capital of Rs. 500 crores comprising 500,000,000 equity shares of
Rs.10/- each. As on 31st March, 2012 the Bank has issued, subscribed and paid-up equity capital
of Rs. 413.20 crores, constituting 413,203,952 shares of Rs. 10/- each. The Bank’s shares are
listed on the National Stock Exchange and the Bombay Stock Exchange. The GDRs issued by the
Bank are listed on the London Stock Exchange (LSE).

DISTRIBUTION NETWORK

The Bank has a network of 1787 domestic branches (including extension counters) and 10,363
ATMs across the country, as on 31st December 2012, the network of Axis Bank spreads across
1,139 cities and towns, enabling the Bank to reach out to a large cross-section of customers with
an array of products and services. The Bank’s overseas network consists of 4 branches in
Singapore, Hong Kong, DIFC – Dubai and Colombo and 3 Representative offices at Shanghai,
Dubai, and Abu Dhabi.

AGRICULTURE:

• The Bank continues to drive and expand the flow of credit to the agricultural sector. 401 branches
of the Bank have dedicated officers for providing farm loans. Products and solutions are created
specifically with simple features and offered at affordable rates to rural customers. The Bank has
also adopted a value-chain approach, wherein end-to-end solutions are being provided for various
stakeholders. It also offers various customized solutions to meet the regional requirements.

FINANCIAL INCLUSION

• The Bank perceives financial inclusion (FI) not as a corporate social responsibility or a regulator
driven initiative but as a large business opportunity that lies untapped in the rural and unexplored
section of the urban market. Till March 2012, the Bank has opened over 4.4 million No-Frills
accounts in over 7,607 villages through a network of 15 Business Correspondents and nearly
6,000 customer service points. The Bank has a strong presence in the Electronic Benefit Transfer
(EBT) space and has covered around 6,800 villages across 19 districts and 9 states till date with
over 3.7 million beneficiaries.

• In the urban space, the Bank has launched financial inclusion initiatives in Bangalore, Chennai
and Indri targeting migrant labourers, slum dwellers and other under-banked sector of the urban
population and has opened over 3.5 lac No Frill accounts. The Bank’s financial inclusion efforts

16
are not merely restricted to launching of financial inclusion initiatives and sourcing basic No Frill
accounts, but to also promote the savings habits and enable the customers to obtain customized
solutions for their financial needs.

• The Bank also has a range of other customised products for this customer segment like different
variants of Axis Uday No Frills Savings Accounts, Chhota RD, Chhota FD, and Chhota SIP. The
Bank has been one of the first few banks to have tied-up with telecom companies to offer
remittance led financial inclusion services on the mobile platform.

HUMAN RESOURCES

• The Bank aims in creating and developing human capital to realise its vision of nurturing a
mutually beneficial relationship with its employees. Employee engagement and learning,
leadership development, enhancing productivity and building multiple communication platforms
thus occupied centre stage in the Bank’s HR objective. The Bank continues to maintain a strong
employer brand in the financial services sector especially on the campuses of the premier business
schools of the country. In a major initiative, the Bank launched Axis Academic Interface Program
(AAIP) with Institutions to offer youngsters an understanding about the financial services
industry, and creating ‘Axis Bankers’. So far, the Bank has tied up with Manipal University, NIIT,
IFBI and Guwahati University.

• Axis Bank has a young workforce with an average age of 29 years. The equal opportunity
employer policy of the Bank contributes strongly to the Axis Bank brand

Mission :

1. Customer service and product innovation tuned to diverse needs of individual and
corporate clientele.

2. Continuous technology up gradating while maintaining human values.

3. Progressive globalization and achieving international standards.

4. Efficiency and effectiveness built on ethical practices.

5. Customer Satisfaction through providing quality service effectively and efficiently.

17
VISION AND VALUES

Vision 2015 , To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology

Core Values

1. Customer Centricity

2. Ethics

3. Transparency

4. Teamwork

5. Ownership

Loans Offered by Axis :

1. Home Loan

2. Car loan

3. Personal Loan

4. Loan against Shares

5. Loan Against Property

6. Loan Against Securities

7. Loan against Gold

8. Education Loan

Cards Offered By Axis bank

Credit Cards

1. Platinum Advantage Credit Card

2. Platinum Credit Card

3. Gold credit card

4. Silver credit card

18
 5. Corporate Credit Card

6. Trust chemists credit card

7. Shriram credit card

8. eShop card

9. Easy credit card

Debit Cards

1. Priority Platinum Chip Debit Card

2. Priority Debit Card

3. Classic Debit Card

4. Gold Debit Card

5. Gold Plus Debit Card

6. Business Gold Debit Card

Prepaid Cards

1. Travel Currency Card

2. Payroll Card

3. Corporate Gift Card

4. Gift Card

5. Rewards Card

6. Remittance Card

7. Meal Card

8. Annuity Card

19
General Details of AXIS BANK :

CIN U72200HR2014PTC053329

Company Name AXIS BANK LTD.

Company Status Active

RoC RoC- Matak Majri

Registration Number 53329

Company Category Company limited by Shares

Company Sub Category Non-govt company

Class of Company Private

Date of Incorporation 11 September 2014

Age of Company 4 years, 11 month, 6 days

Activity Software publishing, consultancy and supply [Software

publishing includes production, supply and documentation
of ready-made (non-customized) software, operating
systems software, business & other applications software,
computer games software for all platforms.

20
1.3 Introduction to Topic

Definition of Customer Satisfaction

Customer Satisfaction can be defined as

“An emotional response to the experiences provided by associated with particular products or
services purchased, retail outlets or even molar patterns of behavior such as shopping and buyer
behavior as well as over marketplace”[ Westbrook & Reilly]

“An outcome of purchase and use resulting from the buyers comparison of the rewards and the
costs of the purchase in relation to the anticipated consequences.”[Churchill & Superman]

The customer’s response to the evaluation of the perceived discrepancy between prior
expectations and the actual performance of the product as perceived after its consumption.

“The result achieved when product features respond to customer needs.”by Juran on Quality
By Design

Cortada and Woods define customer satisfaction in two ways:

The delivery of a product or service that meets or exceeds customer expectations or

requirements.

CUSTOMERS SATISFACTION & LOYALTY

The project is titled “Service and Customer Satisfaction process in AXIS Bank offered by
Axis Bank ” - A tool for measuring satisfaction level among current customers and the services
that are to be included. The purpose is to:

• To measure the customer satisfaction level regarding the various products and services
offered by Axis.

• To determine services add-ons, which the customers feel, must be there.

• To determine the most popular and widely used services by the Savings bank and

Premium account holders.

• To locate the lacking area and suggest some improvements in the existing services for
mutual benefits of the bank and its customers.

21
The level of customer satisfaction with services is an important factor in developing a system
of service provision which is responsive to clients’ needs while minimizing costs and time
requirements and maximizing the impact of the services on target populations.

In order to develop a service delivery mechanism that addresses its customers’ needs, desires
and expectations, it is necessary to know what customers are thinking about you and your
service,

To improve satisfaction and loyalty ratings and differentiate from the competition, banks need
to understand what drives satisfaction and loyalty, and where there is greatest opportunity for
improvement. There is little point in investing resources in areas that are already performing
well, Colgate says or in areas not important to satisfaction and loyalty.

Whether there’s room for improvement to satisfaction and loyalty, whether there’s room for
improvement there or not.

It becomes increasingly important to identify and enumerate changing customer needs. The
customers' satisfaction should be the central element of the bank mission and one of the priority
objectives of long-term customer-oriented strategy. Especially important is to study customers'
satisfaction and bank services quality in emerging market economies where banks are behaving
as growth-oriented firms in the tight struggle for obtaining a bigger market share.
Understanding of client's desire, needs and demands is an important input to the elaboration of
an efficient marketing strategy both in banks and other firms

Measure to improve performance for higher customer satisfaction:

• Turn your strongest areas into market differentiation.

• Turn weaknesses into opportunities for improvement.

• Develop internal communication tools to let everyone know how they are doing.

• Demonstrate your commitment to quality and your customers.

• Feedback and information form important elements in effective service delivery systems
and should include:

There are a variety of ways to measure customer’s satisfaction, but in this study a simple
method – Importance-Performance Matrix developed by Fort Sanders.

22
 (1) Level of importance of services provided, and

(2) Service provider’s performance in giving services.

Based on these factors, the customers themselves make an appraisal of the level of satisfaction
they receive from specific goods and services and of their confidence in the capabilities of the
service providers.

HIGH CUSTOMER MEDIUM LOW CUSTOMER

SATISFACTION: CUSTOMER SATISFACTION:

The percentage of SATISFACTION:

respondents who report an The percentage of The percentage of respondents

importance rating of greater who report an importance
respondents who report
than 3 (4) and a performance
an importance rating of rating of average to very high (3
rating of greater than 3 (4). In
average (3) and also a or 4) but a poor or very poor
this situation clients find
performance rating of performance rating (2 or 1).
that the performance of
average (3).
service providers is good for
services that they consider
important to their production
decisions.

INEFFICIENT SERVICES:

Another key area of the client satisfaction matrix percentage of respondents who consider the
services unimportant (importance rating 2 or 1) but the performance of the service provider in
giving services is rated average to very good (performance rating 3 or 4). This category
represents two possible scenarios: either a waste of banks resources (because unimportant
services are being performed well) or programs for which there are very positive externalities
that are not recognized by customers.

23
This help’s the service provider in identifying the factors or areas where more resources are to
be invested, and the priority in which the investment is to be made and the factors or areas
where changes will have little impact on satisfaction and loyalty.

It's a well-known fact that no business can exist without customers. Steps to increase
satisfaction among Customers are:

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If you're not
used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it
does get easier over time. It's important to meet your customers face to face at least once or
even twice during the course of a project.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a response to
an email or phone call. It might not always be practical to deal with all customers' queries
within the space of a few hours, but at least email or call them back and let them know you've
received there message and you'll contact them about it as soon as possible. Even if you're not
able to solve a problem right away, let the customer know you're working on it.

3. Be Friendly and Approachable

It's very important to be friendly, courteous and to make your clients feel like you're their friend
and you're there to help them out. There will be times when you want to beat your clients over
the head repeatedly with a blunt object. It's vital that you keep a clear head, respond to your
clients' wishes, as best you can, and at all times remain polite and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when just starting out, but a clearly defined customer service
policy is going to save a lot of time and effort in the long run. If a customer has a problem,
what should they do? If the first option doesn't work, then what? Should they contact different
people for billing and technical enquiries? If they're not satisfied with any aspect of your
customer service, whom should they tell?

There's nothing more annoying for a client than being passed from person to person or not
knowing who to turn to. Making sure they know exactly what to do at each stage of their

24
enquiry should be of utmost importance. So make sure your customer service policy is present
on your site -- and anywhere else it may be useful.

5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a client of?
Have you ever had a personalized sign-up confirmation email for a service that you could tell
was typed from scratch? These little niceties can be time consuming and aren't always cost
effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It
shows you care; it shows there are real people on the other end of that screen or telephone; and
most importantly, it makes the customer feel welcomed, wanted and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for working relationship.

7. Honour Your Promises

This is the most important point in this article. The simple message: when you promise
something, deliver. The most common example here is work delivery dates.

Clients don't like to be disappointed. Sometimes, something may not get done, or you might
miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-
contractors don't always deliver on time. In this case a quick apology and assurance it'll be
ready ASAP wouldn't go amiss.

25
 CHAPTER –2

REVIEW OF LITERATURE

26
REVIEW OF LITERATURE

A number of studies have been conducted in India and abroad on various aspects of banking
especially retail banking. Some worthwhile studies relating to the present topic are reviewed here.

Birla Institute of Scientific Research (1981) in its study makes a comparative assessment of the
performance of public sector banks and major private sector banks since nationalization. They
find that the performance of public sector banks is not satisfactory in rural development activities
when compared to the private sector banks.

Jain, Pinson and Malhotra (1987) in their study “Customer loyalty as a construct in the marketing
of bank services” feel that customer loyalty is a very useful construct. Their contention is that the
human aspect of banking should be given utmost importance by the loyal segment for the
marketing of bank services.

R Jayakumar (1993) in his study of “Performance of private sector banks in Kerala” makes a
comparative examination of performance of public sector banks and private sector banks in
Kerala. He finds that in Kerala private sector banks perform better than their public sector
counterparts.

Delvin James (1995) makes a case study of the retail banking services in UK using First Direct, a
subsidiary of Midland Bank. He concludes that banks can increase their market share through
proper communication and prompt delivery of their products.

Govindarajalu (1996) in his article “Satisfaction and dissatisfaction with bank services” views that
the Indian banks have lost the quality of customer service. The dissatisfaction of customers with
bank services is an important issue to be considered by banks and policy makers for the
development of banking sector.

Sarkar and Das (1997) make a comparison of the performance of the three bank sectors - public,
private and foreign - for the year 1995-1996. These banks are compared in terms of profitability,
productivity and financial management. They find that the public sector banks are very poor in
performance on the basis of these variables than the other two sectors.

D Mishra (1997) makes a study on the performance of commercial banks in India choosing
relevant parameters like quality of service, risk management, profitability etc. His conclusion is
that the banks should try to increase quality, balance risk management, and optimise profitability

27
in order to survive and succeed. He identifies four challenges for the bank namely competition,
credit, customer and control.

Gaganjot Singh (1998) in his study “New innovations in banking industry – a study of new private
sector banks” views that the new private sector banks in India are using better technology and
are offering better services to the customers. The new private banks have emerged as a model to
the banking industry in terms of service levels, ambience, technology etc. As the public sector
banks have already established a huge customer base, they become complacent and are slow to
become customer friendly. They are also less innovative in the use of technology-assisted
customer service. Because of their huge customer base they feel that they can withstand
competitions from new generation banks.

N. S. Varghese (2000) is of the opinion that new generation private sector banks with their latest
technology are able to implement e-banking and are highly preferred by investors in the stock
market. He also points out that prominent new generation private sector banks like AXIS and
ICICI have entered into internet banking through which greater convenience is offered with lower
transaction cost.

The study carried out by P Verma (2000) is in tune with the findings of Varghese. Analysing the
impact of information technology on new generation banks Verma feels that new generation banks
are far ahead of traditional public sector banks. He finds that information technology is posing a
threat to the public sector banks. He observes that the business per employee of major public
sector banks in India is a mere fraction of the business per employee of new generation banks. So
the public sector banks have to improve their productivity and efficiency to compete with the new
generation banks which are fully computerized. But Eapen Varghese (2001)11 finds no such
difference between the services rendered by public sector and private sector banks.

Mini Joseph’s (2001) view is that new generation banks have created a spirit of competition in the
banking industry by fully utilizing the facilities and amenities available from technology and
computerization, and by accepting customer satisfaction as the core aspect. For preventing the
erosion in the market share of old private sector banks and public sector banks, they are also
providing quality service now in a competitive spirit.

Anantha Swamy (2001) makes an appraisal of the performance of different bank groups in India
in the backdrop of competition, deregulation and changes in the field of banking. He classifies
banks into public sector, old private sector, new private sector and foreign banks. His focus has

28
been on profitability, NPA, contingent liabilities, spread etc. for the last five years and arrives at
the conclusion that the new private sector banks are performing better than the banks in other
sectors.

Jamal and Naser (2002) makes a study on “The factors influencing customer satisfaction in the
retail banking sector of Abu Dhabi”. He collected the necessary data using structured
questionnaire. Customer response to questionnaire shows that the customer expectations from the
bank and service quality provided by the banks are the major determinants of customer
satisfaction. Their investigation on factors influencing customer satisfaction in the Pakistan retail
banking sector15 also reveals that service quality is the important determinant of customer
satisfaction.

P. D. Jeromi (20026 who studied “The trends and issues of bank credit in Kerala” finds that the
absolute rate of growth of credit is reasonably good. But in relation to deposits, per capita credit,
credit per account, disbursement by all India Financial Institutions the level of credit is lower. He
also observes that more attention should be given to mobilization of deposits than to expansion of
credit.

Pushpangadharan’s (2002) study on “The quality of customer service in public sector banks” also
shows that public sector banks lag behind private sector banks in customer service. The parameters
he used in the study are facilities and amenities, speed in completing transactions and providing
deposit related and credit related services. The customers of public sector banks are not much
satisfied with branch managers’ and employees’ attitudes. The public sector banks are very poor
in respect of customer feedback system and redress of grievances.

Bharathi Pathak (2003) makes a study of “The financial operations of new generation private
sector banks in India”. Five banks (Indusind bank, Centurion bank, AXIS bank, ICICI bank and
UTI bank) are taken up for financial analysis for a period of five years from 1996-97 to 2000-
01. Their financial performance is studied under four different parameters – financial, operating,
profitability and productivity. His conclusion is that the working of all banks is satisfactory but
AXIS bank comes at the top closely followed by ICICI bank.

Bikram De (2003) makes a study on the effects of ownership on bank performance. He compared
old private sector banks and new generation banks in terms of profitability, efficiency, liquidity
etc.

29
Gilotra (2003), in his study on retail lending, views that the success of retail lending of a bank
depends on factors like marketing efficiency, proper appraisal and follow-up. He also finds that
AXIS has become very excellent in housing finance solely due to the long term strategies adopted
by them.

V.S. Murthy (2003) in his study views that in India the banking industry has very high competition
particularly in the retail sector. In this competition only the fittest will survive. It is expected that
the banks are well equipped to succeed in the retail journey.

Qamar (2003) has done a comparative study on the “Profitability and resource use efficiency in
scheduled commercial banks in India”. He finds that efficiency of new private banks and foreign
banks is better though marginally than the old private sector banks and public sector banks.

Velayudham (2003) in his article “Banking for corporate new directions” reminds banks to
ensure that for a balanced asset portfolio retail banking has to go along with wholesale
banking. Besides, for better management of customer’s needs and consultative selling of products,
commercial banks should have customer relationship management department.

Filomina’s (2004) survey on expectations of customer from retail banks shows that none of the
banks are able to meet the diverse needs of customers. As a result the customers are not so loyal
to a particular bank and go for multiple banking. Customers are aware of the variety of products
and services that are available in the banking sector and demand them from their banks. The
aggressive banking of new generation banks make customers dislike them.

Groeneveld and Wagemakers (2004) in their article “Retail banking strategies in Europe” analyse
retail banking strategy with special emphasis on retail banking in the broadest sense of the word.
He finds that many banks rediscovered retail banking after the collapse of investment and
corporate banking activities and the fall in the stock prices in the last few years. The retail banking
strategies in general and the strategic positioning of Rabobank group in particular are described
in the study.

Gurumurthy (2004) has made an analysis of income, expenditure, operating profit and NPA of
public sector banks, foreign banks, old private sector banks and new private sector banks. He
contends that the reforms in banking sector positively influence the financial health of the banks.
He observes that the financial performances of the banks are improving as a result of the prudential

30
norms of RBI and other committees. Besides, these reforms have helped to increase competition
in the banking industry.

Subrat Mohapatra (2004 in his article states that the non-food credit of the banks has increased
several times. Banks have to increase the lending even though the interest rates are decreasing due
to the of bulk deposits received by them. Retail credit and SME advances are the growth areas of
banks.

Velouston and Cleopatra (2004) in their study have analysed the relative role of certain drivers of
bank loyalty. Their study shows the links between image, perceived quality satisfaction,
commitment and loyalty in Greek retail banking. The result of the study is that the image has a
positive impact on perceived quality and satisfaction. The key factor that leads to loyalty is the
personalisation in providing services to customers which help to increase customer satisfaction.

Yeole (2004) in her article “Problems of NPA” deals with the NPA problems of commercial banks.
She feels that the public sector banks are facing the NPA problem more often than the private and
foreign banks. The NPA of public sector banks is growing due to external and internal factors and
affects the profitability and liquidity of the banks adversely.

Zhou’s (2004) study is on “The dimensions of customer satisfaction in the Chinese retail banking”.
The factors contributing to customer satisfaction are determined using the model of SERVPERF.
Her study points that empathy or responsiveness of the employees, reliability or assurance from
the bank and tangibility of services are the important factors affecting customer satisfaction.

Bhayani (2005) conducted a study among 200 customers on the retail banking awareness of private
banks, nationalized and co-operative banks in the Rajkot city of Gujarat. The conclusion she
arrives at is because of the low literacy among the customers, they are not aware of technology
assisted banking services. So the banks should try to create awareness among customers on
technology and technology driven products for better retail banking operations.

Chakraborty (2005) in the article, “Customer relationship management, a new mantra in Indian
banking” views that CRM has an important role for banks in the marketing of products and
services in an era of technology. By practicing CRM, the customer base and customer loyalty in
banks can be increased.

31
CHAPTER –3
RESEARCH
METHODOLGY

32
3.1 General Methodology

The methodology adopted for preparing this report was based on both primary as well as
secondary information. The locale of the study was restricted to Matak Majri , Indri.

The first stage included gathering information about the bank’s profile, various products and
services being offered by the bank and getting acquainted with the working of the bank.

The second stage involved determining the objective of the study and drafting a
questionnaire. The questionnaire was designed keeping in mind the objectives of the study. It
is disguised in nature included a mix of open-ended and close-ended questions.

In the third stage, visits were made to branch of Indusind bank for collection of data. 60
respondents were surveyed.

3.2 Data Sources

The research can call for gathering primary data, secondary data or both. The data has mainly
been collected via primary sources.

However a good amount of secondary data was also used to have a general understanding of
the subject.

Primary Sources

The primary data is gathered for specific purpose and is collected by the researcher himself. It
includes direct communication and feedback from customers, sales & marketing executives of
Axis bank and any other related person. For the purpose of collecting information from
customers structured questionnaires was formulated and are contacted directly.

Secondary Sources

The secondary sources are data was collected for another purpose and already exists some
where. The secondary source of information here includes library resources at Axis bank,
articles in various newspapers and magazines, product catalogs and online resources like
company website, online reports and articles.

33
3.3 Research Design

The research conducted was descriptive in nature and the goal was to gather preliminary data
to shed light on the real nature of problems and to suggest possible solutions. For the purpose
of this project, we went for a questionnaire-based survey of customers

Research Instrument

For the purpose of this project, a questionnaire was designed to collect data, which includes
mix of open-ended and close-ended questions. A survey technique is being used to collect the
data. During the project a survey of bank customers using personal interview was done at
random at different Axis bank branch in Matak Majri, Indri and a predetermined structured
questionnaire was administered to them. Only those individuals which had knowledge of
English language and about the Bank were surveyed.

3.4 Sampling Design

Sampling Unit

The study was restricted to Indri region only. Keeping in mind convenience to sample because
of accessibility, lack of abundance of time and cost and because of the fact that the population
of this city is composed of people of diverse background, income level, lifestyles etc. The
samples were chosen on the basis of simple random sampling. The sampling unit comprised of
the people holding Savings account, Current account holders present in the Matak Majri branch
of the Axis Bank.

Sampling size

The sample size taken for the purpose of study was 80 customers of the Axis bank at the Matak
Majri branch in Indri.

Sampling Procedure

Research was restricted to single branch of Axis bank and prescribed number i.e. 80 customers
are to be surveyed. The surveyed respondents belonged to the age of 18 years & above and
having a fair knowledge of English language.

34
Contact Method

Customers are to be directly contacted after intercepting them within the branch premises.

The samples were chosen on the basis of simple random sampling.

3.5 Limitations:

 The survey was restricted to only one branch because of time and resources constraints.
Therefore the generality of the findings cannot be claimed until further research has been
carried out.

 The locale of the study was selected keeping the convenience factor in mind which in
present research is Indri in Matak Majri Branch.

 The sample size is 80, in which 20 did not responded which may not reflect a true picture
of the consumer’s mind.

 The situation in which person is questioned about routine actions is an artificial one at best.
Due to the influence of questioning process, respondents may furnish quite different
information from facts.

 The respondents are chosen through simple random sampling and only the persons who
have knowledge of English language are surveyed.

It is also pretty hard to pursue a customer to share his feelings as they are in a hurry so
possibility of biases of the respondents may not be precluded.

35
 CHAPTER –4
DATA ANALYSIS AND
INTERPRETATION

36
4.1 DATA ANALYSIS AND INTERPRETATION

The data, which was collected, was summarized and tabulated for further analysis. The analysis
performed was mainly comparative analysis using statistical analytical tools. The tools that
have been used are as follows:

1. Questionnaire
2. Bar Chart
3. Pie Chart

4.2 Demographic and other information:

Among the 60 customers surveyed:

37
Ques.1 AXIS bank has modern looking equipment.

SCALE FREQUENCY PERCENTAGE

STRONGLY 5 10
DISAGREE

DISAGREE 25 50

UNCERTAIN 16 32

AGREE 4 8

TOTAL 50 100

Sales

8 % 10 %
STRONGLY DISAGREE
32 % DISAGREE

50 % UNCERTAIN
AGREE

INTERPRETATION

AXIS bank has modern-looking and hi-tech equipment. Here analysis show that most of the
respondents disagreed with this statement. Among the total respondents 50% disagreed, 32% were
neutral and 8% agreed. After analysis I found that majority of the respondents think that AXIS
Bank do not have modern looking equipment or no hi-tech equipment.

38
Ques.2 The bank's physical features are visually appealing.

SCALE FREQUENCY PERCENTAGE

DISAGREE 4 8

UNCERTAIN 29 58

AGREE 17 34

TOTAL 50 100

Sales

8%
34 %
DISAGREE
UNCERTAIN
58 % AGREE

INTERPRETATION
AXIS bank‟s physical facilities are visually appealing. From this statement I found that 17 persons
agreed. 29 persons were uncertain and 4 persons disagreed. This means 58% people were
uncertain about this statement. Out of the total respondents only 4% disagreed and no one strongly
agreed or disagreed with the statement. 17% people agreed that AXIS bank‟s physical facilities
are visually appealing.

39
Ques.3 The bank's reception desk employees are neat appearing.

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10

UNCERTAIN 21 42

AGREE 18 36

STRONGLY AGREE 6 12

TOTAL 50 100

Sales

12 % 10 %
DISAGREE

36 % 42 %
UNCERTAIN
AGREE
STRONGY AGREE

INTERPRETATION
AXIS bank‟s employees appear neat. Here analysis shows that majority were neutral. Among the
total respondent 21 respondents were neutral, 18 people agreed and 6 respondents strongly agreed.
The rest disagreed. From analysis I found that some respondents agreed with this statement but
most of the respondents think the employees of the AXIS bank appear neat.

40
Ques.4 Materials associated with the service (such as pamphlets or statements) are visually
appealing at the bank.

SCALE FREQUENCY PERCENTAGE

DISAGREE 7 14

UNCERTAIN 22 44

AGREE 18 36

STRONGLY 3 6
AGREE

TOTAL 50 100

Sales

6%
14 %
DISAGREE
36 % UNCERTAIN
AGREE
44 % STRONGLY

INTERPRETATION
Materials associated with the service are visually appealing at AXIS bank. Here 36% respondents
agreed with this statement and 6% strongly agreed with this statement. 44% were neutral that is
most and 14% disagreed. There was no respondent who strongly disagreed. Hence, in general it
can be concluded that materials associated with the services such as pamphlets or statements are
visually appealing.

41
Ques.5 When the bank promises to do something by a certain time, it does so.

SCALE FREQUENCY PERCENTAGE

STRONGLY 2 4
DISAGREE

DISAGREE 26 52

UNCERTAIN 5 10

AGREE 14 28

STRONGLY AGREE 3 6

TOTAL 50 100

Sales

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were neutral
and 2 people strongly disagreed. Hence I concluded that majority of them disagreed that the bank
when promises to do something by certain time, it does so.

42
Ques. 6 When you have a problem, the bank shows a sincere interest in solving it.

SCALE FREQUENCY PERCENTAGE

DISAGREE 3 6

UNCERTAIN 14 28

AGREE 26 52

STRONGLY AGREE 7 14

TOTAL 50 100

Sales
6%
14 %
28 % DISAGREE
UNCERTAIN
AGREE
52 %
STRONGLY AGREE

INTERPRETATION
When you have a problem, AXIS bank shows sincere interest in solving it. After analysing this
statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also I found
that 28% were neutral with this statement and 6% were committed with disagree. There was no
one who strongly disagreed. Hence AXIS bank can be said to be reliable.

43
Ques.7 The bank performs the service right the first time.

SCALE FREQUENCY PERCENTAGE

STRONGLY 2 4
DISAGREE

DISAGREE 8 16

UNCERTAIN 17 34

AGREE 17 34

STRONGLY AGREE 6 12

TOTAL 50 100

Sales
4%
16% STRONGLY DISAGREE
34%
DISAGREE
AGREE
34%
12% STRONGLY AGREE
UNCERTAIN

INTERPRETATION
Total sample size was 50. Here analysis shows that among the total respondents 17 people agreed
with this statement. They think that AXIS bank performs the services right the first time. 6 people
strongly agreed with this statement. Also 17 people were neutral and the rest of the respondents
disagreed and strongly disagreed.

44
Ques.8 The bank insists on error free records.

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10

UNCERTAIN 10 20

AGREE 23 46

STRONGLY AGREE 12 24

TOTAL 50 100

Sales

10%
24 %
20%
DISAGREE
UNCERTAIN
46% AGREE
STRONGLY AGREE

INTERPRETATION
Bank insists on error free records. AXIS bank has proved from my analysis that it surely insist on
error free records as 46% respondents agreed with this statement and 24% strongly agreed. Only
10% respondents disagreed and no one strongly disagreed.

45
Ques. 9 Employees in the bank tell you exactly when the services will be performed.

SCALE FREQUENCY PERCENTAGE

STRONGLY 6 12
DISAGREE

DISAGREE 8 16

UNCERTAIN 13 26

AGREE 18 36

STRONGLY AGREE 5 10

TOTAL 50 100

Sales

12%
STRONGLY DISAGREE
36% DISAGREE
UNCERTAIN
26% STRONGLY AGREE
10%
AGREE

INTERPRETATION
Employees in the bank tell you exactly when the services will be performed. Majority of the
respondents agreed with this statement. 26% respondents were uncertain. At the same time 16%
disagreed and 12% Strongly disagreed with this statement.

46
Ques. 10 Employees in the bank give you prompt service.

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10

UNCERTAIN 16 32

AGREE 27 54

STRONGLY AGREE 2 4

TOTAL 50 100

Sales

4% 10%
54% 32%
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
Most of the respondents agreed with this statement. According to my analysis, employees in AXIS
Bank give prompt service. Among the total respondents agreed respondents were 27 and strongly
agreed were 2. 16 people were neutral and 5 disagreed. There was no respondent who strongly
disagreed with this statement.

47
Ques.11 Employees in the bank are always willing to help you

SCALE FREQUENCY PERCENTAGE

UNCERTAIN 12 24

AGREE 29 58

STRONGLY AGREE 9 18

TOTAL 50 100

Sales

18% 24%
UNCERTAIN
AGREE

58% STRONGLY AGREE

INTERPRETATION

Employees in AXIS bank are willing to help you. With this statement no one disagreed or strongly
disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed, 29 people agreed
i.e. 58% respondents agreed and 24% respondents were neutral.

48
Ques.12 Employees in the bank are never too busy to respond to your request.

SCALE FREQUENCY PERCENTAGE

DISAGREE 1 2

UNCERTAIN 11 22

AGREE 27 54

STRONGLY AGREE 11 22

TOTAL 50 100

Sales

22% 22%
DISAGREE
UNCERTAIN
AGREE
54%
STRONGLY AGREE

INTERPRETATION
Employees in AXIS Bank ltd are never too busy to respond to your request. After analyzing this
statement I found that most of the respondents agreed with this statement. Among the total
respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1 respondent
disagreed. No one strongly disagreed.

49
Ques.13 The employees of the bank are trustworthy.

SCALE FREQUENCY PERCENTAGE

DISAGREE 4 8

UNCERTAIN 13 26

AGREE 28 56

STRONGLY AGREE 5 10

TOTAL 50 100

Sales

10% 8%
26% DISAGREE
56%
UNCERTAIN
AGREE
STRONGLY AGREE

INTERPRETATION
The employees of the bank are trustworthy. According to my findings, 54% respondents agreed
that employees at AXIS bank are trustworthy. 13% respondents were neutral and 4% respondents
disagreed with this statement.

50
Ques.14 The behavior of employees in the bank instills confidence in you.

SCALE FREQUENCY PERCENTAGE

DISAGREE 28 56

UNCERTAIN 4 8

AGREE 13 26

STRONGLY AGREE 5 10

TOTAL 50 100

Sales

10%
26% 56%
DISAGREE
UNCERTAIN
AGREE

8% STRONGLY AGREE

S
INTERPRETATION
The behavior of employees in AXIS bank instills confidence in you. Here analysis shows that
most of the people disagreed. Among the total respondents 28 respondents disagreed, 13 agreed
and 5 strongly agreed. There was no respondent who strongly disagreed. This means 56%
respondent disagreed with this statement.

51
Ques.15 You feel safe in your transactions with the bank.

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10

UNCERTAIN 16 32

AGREE 23 46

STRONGLY AGREE 6 12

TOTAL 50 100

Sales

12% 10%
46%
32% 1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

INTERPRETATION
With this statement most of the respondents agreed. Among the total respondents 23 agreed with
this statement and 6 strongly agreed. 32% respondents were neutral and 10% respondents
disagreed. But there no one who strongly disagreed.

52
 CHAPTER –5

FINDINGS, CONCLUSION

AND
RECOMMENDATIONS

53
Major findings:

1. AXIS bank has modern-looking and hi-tech equipment. Here analysis show that most of the
respondents disagreed with this statement. Among the total respondents 50% disagreed,
32% were neutral and 8% agreed. After analysis I found that majority of the respondents
think that AXIS Bank do not have modern looking equipment or no hi-tech equipment.

2. AXIS bank‟s physical facilities are visually appealing. From this statement I found that 17
persons agreed. 29 persons were uncertain and 4 persons disagreed. This means 58%
people were uncertain about this statement. Out of the total respondents only 4% disagreed
and no one strongly agreed or disagreed with the statement. 17% people agreed that AXIS
bank‟s physical facilities are visually appealing.

3. AXIS bank‟s employees appear neat. Here analysis shows that majority were neutral.
Among the total respondent 21 respondents were neutral, 18 people agreed and 6
respondents strongly agreed. The rest disagreed. From analysis I found that some
respondents agreed with this statement but most of the respondents think the employees
of the AXIS bank appear neat.

4. Materials associated with the service are visually appealing at AXIS bank. Here 36%
respondents agreed with this statement and 6% strongly agreed with this statement. 44%
were neutral that is most and 14% disagreed. There was no respondent who strongly
disagreed. Hence, in general it can be concluded that materials associated with the services
such as pamphlets or statements are visually appealing.

5. sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were
neutral and 2 people strongly disagreed. Hence I concluded that majority of them disagreed
that the bank when promises to do something by certain time, it does so.

6. AXIS bank shows sincere interest in solving it. After analysing this statement I found that
most of the respondents agreed i.e. 52% respondents agreed. Also I found that 28% were
neutral with this statement and 6% were committed with disagree. There was no one who
strongly disagreed. Hence AXIS bank can be said to be reliable.

7. Total sample size was 50. Here analysis shows that among the total respondents 17 people
agreed with this statement. They think that AXIS bank performs the services right the first

54
 time. 6 people strongly agreed with this statement. Also 17 people were neutral and the
rest of the respondents disagreed and strongly disagreed.

8. Bank insists on error free records. AXIS bank has proved from my analysis that it surely
insist on error free records as 46% respondents agreed with this statement and 24%
strongly agreed. Only 10% respondents disagreed and no one strongly disagreed.

9. Employees in the bank tell you exactly when the services will be performed. Majority of
the respondents agreed with this statement. 26% respondents were uncertain. At the same
time 16% disagreed and 12% Strongly disagreed with this statement.

10. Most of the respondents agreed with this statement. According to my analysis, employees
in AXIS Bank give prompt service. Among the total respondents agreed respondents were
27 and strongly agreed were 2. 16 people were neutral and 5 disagreed. There was no
respondent who strongly disagreed with this statement.

11. Employees in AXIS bank are willing to help you. With this statement no one disagreed or
strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed,
29 people agreed i.e. 58% respondents agreed and 24% respondents were neutral.

12. Employees in AXIS Bank ltd are never too busy to respond to your request. After
analyzing this statement I found that most of the respondents agreed with this statement.
Among the total respondents 22% strongly agreed and 54% agreed. 11 respondents were
neutral and 1 respondent disagreed. No one strongly disagreed.

13. The employees of the bank are trustworthy. According to my findings, 54% respondents
agreed that employees at AXIS bank are trustworthy. 13% respondents were neutral and
4% respondents disagreed with this statement.

14. The behavior of employees in AXIS bank instills confidence in you. Here analysis shows
that most of the people disagreed. Among the total respondents 28 respondents disagreed,
13 agreed and 5 strongly agreed. There was no respondent who strongly disagreed. This
means 56% respondent disagreed with this statement.

15. With this statement most of the respondents agreed. Among the total respondents 23
agreed with this statement and 6 strongly agreed. 32% respondents were neutral and 10%
respondents disagreed. But there no one who strongly disagreed.

55
CONCLUSION

A lack of customer satisfaction modelling and the nonexistence of a well-defined questionnaire

could have a negative effect on the development of sustainable and recurring business. For that
reason, organizations could definitively take advantage of a proven systematic customer
satisfaction process. The challenge for banks is to implement and secure a standardized customer
satisfaction process across their class of markets and geographic markets (countries). Customer
satisfaction is addressed as a strategic business development tool. Ultimately it will lead to more
loyal customers and more profitable business.

My literature study has delivered an extensive source of customer satisfaction knowledge. I have
chosen for a qualitative empirical research study taken from a singular desk research angle which
incorporates a study of academic papers, thesis and dissertations in customer satisfaction and
customer satisfaction models.

My literature research exposed four general characteristics of customer satisfaction involving

features or qualities related to customer satisfaction serving to identify this phenomenon among
other customer relationship management propositions;

1. Customer satisfaction is a highly variable personal assessment that is greatly influenced

by individual expectations based on his/her own information, expectations, direct contact
and interaction, and circumstances (time, location and environment).
2. Customer satisfaction involves the sum of personal (product and service) experiences
driven by its antecedents.
3. Customer satisfaction is most often related to purchase, loyalty and retention behavior
with an effect on organizations profitability.
4. Customer satisfaction characterizes itself by a high degree of word-of-mouth where
satisfied customers are most likely to share their experiences with other people to the order
of perhaps five or six people. Equally well, dissatisfied customers are more likely to tell
another ten people of their unfortunate experience.

56
Suggestions on Add-on services as proposed by respondents

➢ Small amount DD can be made through cash.

➢ F.D. extension or renewal through phone banking.
➢ Proximity should be increased through more branches or extension counters.
➢ Internet banking only enlists the last 10 transactions made, it should be increased.
➢ Frequent mailers should be sent on new product and services introduced from time to time.
➢ Free monthly statement of account in place of quarterly.
➢ ATMs daily withdrawal limit must be increased which is presently Rs 15,000.
➢ Cash teller must have adequate currency notes of Rs500 and Rs1, 000.
➢ Number of customer’s do complained of the less operating days or the no. Of days it is open.
The bank can remain open on Sundays also to overcome that.
➢ Provision of taking out the bank statement of the user specified period from the ATM itself.

Recommendations:
➢ The non-users cited unawareness regarding the banks product and services to be the major
reason behind not availing the bank’s services. So bank should launch awareness campaign
for making customers aware of the different services like personalized service, Lockers, Phone
banking and Investment advisory services and products like bank at campus.

➢ Majority of respondents do complained of the working of ATMs, ATMs out cash and
disconnection of network were the major fault areas, even though they were satisfied with the
bank’s a wide network of ATMs.

➢ There were number of respondents especially Senior citizens who have ATM card but does
not make use of it because number of people does not know how to use it. So bank can
organize an awareness week where ATMs usage can be taught.

➢ Number of customer’s do complained of the less operating days or the number of days it is
open. The bank can remain open on Sundays also to overcome that.

➢ Banks average quarterly low balance requirement of Rs 10,000 is both pros and a con for the
bank. It is quite reasonable in comparison with the foreign banks but high when compared to
other nationalized banks .

57
LIMITATIONS

58
Limitations:

➢ The present research was restricted to only savings and current account holders of the bank.

➢ The survey was restricted Matak Majri, Indri branch because of time and resources constraints.
Therefore, the generality of the findings cannot be claimed until further research has been
carried out.

➢ The sample size is 80, which may not reflect a true picture of the consumer’s mind.

➢ The respondents are chosen through simple random sampling and only the persons who have
knowledge of English language were surveyed.

➢ It is also pretty hard to pursue a customer to share his feelings as they are in a hurry so
possibility of biases of the respondents may not be precluded.

59
 CHAPTER-6

BIBLIOGRAPHY

60
BIBLIOGRAPHY

The following sources have been sought for the preparation of this report.

Books

The Total Money Makeover: A Proven Plan for Financial Fitness, Dave Ramsey, DATED
18/07/2013 Pg No- 44

The Millionaire Next Door, Thomas Stanley and William Danko, DATED 30/10/2013, Pg No-88

Magazine

Money life, DATED 18/10/2013, Pg No -51

Business world, DATED 07/09/2013, Pg No -172

Newspaper

Economic times, DATED 11/06/2013, Pg No -56

Hindustan times, DATED 07/08/2013, Pg No -90

Websites

•[Link]
•[Link]
•[Link]
•[Link]
•[Link]
•[Link]
•[Link]
•[Link]
•[Link] _an_organis
ation

61
CHAPTER-7

ANNEXURE

62
Thank you for agreeing to participate in this survey. I am a student of a MAIMS
conducting a market research to know the usage pattern of Credit card of AXIS
BANK and its services. Take a few moments of your time and answer a few
questions. Your answers will be confidential and used only in combination with the
responses of other people.

Ques.1 AXIS bank has modern looking equipment.

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.2 The bank's physical features are visually appealing.

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.3 The bank's reception desk employees are neat appearing.

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.4 Materials associated with the service (such as pamphlets or statements) are visually
appealing at the bank.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

63
Ques.5 When the bank promises to do something by a certain time, it does so.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques. 6 When you have a problem, the bank shows a sincere interest in solving it.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.7 The bank performs the service right the first time.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.8 The bank insists on error free records.

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques. 9 Employees in the bank tell you exactly when the services will be performed.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

64
Ques. 10 Employees in the bank give you prompt service.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.11 Employees in the bank are always willing to help you

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.12 Employees in the bank are never too busy to respond to your request.
a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.13 The employees of the bank are trustworthy.

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

Ques.14 The behavior of employees in the bank instills confidence in you.

a) Disagree
b) Uncertain
c) Agree
d) Strongly Agree

65
Ques.15 You feel safe in your transactions with the bank.
e) Disagree
f) Uncertain
g) Agree
h) Strongly Agree

66