A

COMPREHENSIVE PROJECT REPORT

ON
“Analysis of difference between Services Perceived and Service
Expectation of Sutex bank Account holder in Surat City”

Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide: Company Guide:

Mr. Pratiksinh S. Vaghela Mr. Ashok J Patel

Assistant Professor, Incharge Manager,

(sutex co-op. bank Ltd.)

Submitted by
Mr. BRIJESH V. MARAVIYA [Batch No. 2013-15, Enrollment No. 138050592047]
Ms. PAYAL R. SANGHANI [Batch No. 2013-15, Enrollment No. 138050592087]
MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805

MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
May, 2015

1
 Students’ Declaration

We, Brijesh V. Maraviya and Payal R. Sanghani, hereby declare that the report for
Comprehensive Project entitled “Analysis of difference between services
perceived and service expectation of sutex bank account holder in surat

city” is a result of our own work and our indebtedness to other work publications,
references, if any, have been duly acknowledged.

Place: Surat

Date: _____________
__________________
(Brijesh V. Maraviya)

__________________
(Payal R. Sanghani)

2
 Institute’s Certificate

Certified that this Comprehensive Project Report Titled “Analysis of difference

between Services perceived and service expectation of sutex bank account
holder in surat city” is the bonafide work of Brijesh V. Maraviya (Enrollment No.
138050592047) and Payal R. Sanghani (Enrollment No. 138050592087), who
carried out the research under my supervision. I also certify further, that to the best
of my knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate.

Place: Surat
Date: ________________

___________________
(Pratiksinh S. Vaghela)
Asst. Professor

___________________
(J.M. Kapadia)
I/C Director

3
 PREFACE

It is a great opportunity for management students of GTU to get exposure to the

insurance industry as a part of in Compressive Project (CP) academic curriculum of
MBA and get wide exposure to the real world during industrial project.

This Project Report has been prepared in partial fulfilment of the requirement for the
subject of Compressive Project Report (Sem. 3 & 4) in the academic year 2014-
2015. For preparing the Compressive Project Report, we have visited the different
official sites and report during the entire duration, to avail the necessary information.
The blend of learning and knowledge acquired during our report studies the Service
Quality Analysis of sutex co-op. bank Ltd. is presented in this Project Report.

This project has been real challenging for us. It realized during training that bank
industry is drastically different than what we learn in theories. Thus, practical
exposure to this industry is valuable for us as a management student. Our practical
knowledge has improved very well through meeting people and offers them a policy
of Bank industry.

The prime objective of this practical training is to student get some knowledge and
experience of management affairs. In that “Analysis of difference between
Services perceived and service expectation of sutex bank account holder in

surat city”. We have mentioned all the necessary information, which is true & we
have tried our best to cover all aspect while complete requirement for the MBA
course.

Project Report is to study the basics, history and development of sutex co-op. bank
Ltd, Different Services Provided by sutex co-op. bank Ltd. and there Quality. The
Project Report starts with Introduction of Banking sector. The information presented
in this Project Report is obtained from different sources.

4
 ACKNOWLEDGEMENT

We would like to take this opportunity to thanks our college S.R. Luthra institute of
management, Surat.

Without acknowledging the invaluable help of all directly or indirectly related persons
with our project, we will prove our thankless. It is always difficult to put it in words,
but following is our humble attempt.

We wish to express our thanks to the officers and all the staff members of the ‘Sutex
co-op. bank Ltd.’. For their valuable assistance and excellent co-operation in
preparation of this project report.

We wish to place on record the co-operation given us by Mr. Ashok J. Patel (In
charge Manager, sutex co-op. bank Ltd.) for making capable of teaching new things,
which are helpful in our practical life that is going on project at different places.

We are very grateful the Hon. I/C Director Dr. J.M. Kapadia of S.R.Luthra Institute of
Management for giving us the opportunity to come to this stage.

The project would have been possible throughout the experience, guidance and
supervision of Mr. Pratiksinh S. Vaghela has potentially and critically gone through
the subject matter. His constructive criticism helped us lot in presenting the project in
concrete form. Finally, we would like to thank to all these people who are directly or
indirectly contributed to our project work.

Last but definitely not least; we would like to record our thanks to our parents &
friends who help us directly or indirectly in preparation of project work.

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 EXECUTIVE SUMMARY

This training report has been made with the objective to analyze the difference
between service perceived and service expectation of sutex bank account holder in
surat city. This report contains the detail about Banking services and one of them
sutex co-op. bank ltd’s performance.

The first part of the project includes Banking industry profile, introduction of the sutex
co-op. bank Ltd., product profile of the company and introduction of banking industry,
Marketing Department, Department and Organogram.

Basically India is growing country and there is huge opportunity for growing Service
industry and high growth rate. The Financial environment, their history and growth
makes this project report distinguee. The performance of bank and the detail
information of bank’s services facilitate to identify how competitive itself to run in this
service market. Even it’s proved them self only by establishing goal of “creating
brand image of sutex co-op. bank Ltd. in financial era in Surat, Gujarat and their after
India in upcoming years”.

We have collected the different reports which somewhere related with the Banking
and Service sector which really gives good conclusions. This was very helpful to us
for the decision making and analysis of our research. The findings and their
conclusion has been included here for more reference and their source also been
included in the Bibliography in the part of literature review.

We have used the descriptive research design and Non-probability sampling

(convenient sampling) for the purpose of survey. In our research study we have
collected primary data through questionnaire and our sample size 400.

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Data analysis that is purely based on analysis the data that collect through primary
data. For the primary data analysis we used questionnaire method and concluded
that, gap analysis of service perceived and service expectation of sutex bank
account holder in surat city.

The findings and suggestion really helps where bank is lacking from their services in
Account Holder’s Mind. In this project report, it has tried the best to present the past
and present scenario of Banking industry and even Sutex co-operative Bank history
and Glimpse at the Glance.

Overall it is very helpful to Bank for their Analyses of Account Holders’ expectation
and their preference. Though this project report Management of Sutex co-operative
Bank can improve their performance and their service quality very effectively.

7
 TABLE OF CONTENTS

SR. NO. PARTICULARS PAGE NO.

1. Industry Profile 1
1.1) Global Banking Industry 2
1.2) Indian Banking Industry 6
1.3) Growth Of The Banking Industry 7
1.4) Pestle Analysis On The Banking Industry 12
1.5) Current Trends In Banking Industry 19
1.6) Major Players In The Indian Banking Industry 20

1.7) Major Offering In Banking Industry 23

2. Company Profile 28
2.1) Introduction To Sutex Co-Operative Bank 28
2.2) Organogram 32

2.3) Department 32
2.3.1) Marketing Department 32
2.3.2) Human Resource Department 33
2.3.3) Finance Department 34
2.3.4) Account Department 35
37
2.3.5) Loan Department
42
2.3.6) Recovery Department
44
2.3.7) Fixed Deposit Department
45
2.3.8) Clearing Department
48
2.4) Swot Analysis Of The Bank
3. Review Of Literature 51
4. Research Methodology 60
4.1) Problem Statement 60
4.2) Objective Of The Study 60

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 4.3) Research Design 61
4.4) Sampling 61
4.5) Data Collection 62
4.6) Tools For Analysis 63
4.7) Limitation 64

4.8) Significance of the Study 64

5. Data Collection and Analysis 66
5.1) Type of Account 66
5.2) Average Gap Score of Tangibles 67
5.3) Average Gap Score of Reliability 68
5.4) Average Gap Score of Responsiveness 69
5.5) Average Gap Score of Assurance 71
5.6) Average Gap Score of Empathy 72
5.7) Un-Weighted Score 73
5.8) Assigning Weights 74
5.9) Weighted Score 75
5.10) Average Means Score 76
5.11) Paired Samples Statistics 77
5.12) Paired Samples Test 80
5.13) Branch Facility 82
5.14) Marital Status 86
5.15) Income Level 87
5.16) Education 88
5.17) Age 89
5.18) Gender 90
5.19) Occupation 91
6. Finding 92
7. Conclusion 94
8. Recommendation 95
Bibliography
Appendix

9
 LIST OF TABLES
TABLE PAGE
SR. NO. PARTICULARS NO. NO.
1. Foreign Banks Are Ahead In Most Profitability And 1.1 10
Return Ratios
2. Foreign Banks Are Also Have More Free Income, 1.2 11
But Have Higher Employee Costs And Bad Loans
3. Major Players In The Indian Banking Industry 1.3 20
4. Deposits Of Sutex Bank 2.1 30
5. Vehicles Loan Rate 2.2 39
6. Branches Of Sutex Bank 2.3 49
7. 2.4 50
Board Of Directors
8. 2.5 50
Other Officer Of Bank
9. Type of Account 5.1 66
10. Average Gap Score of Tangibles 5.2 67
11. Average Gap Score of Reliability 5.3 68
12. Average Gap Score of Responsiveness 5.4 69
13. Average Gap Score of Assurance 5.5 71
14. Average Gap Score of Empathy 5.6 72
15. Un-Weighted Score 5.7 73
16. Assigning Weights 5.8 74
17. Weighted Score 5.9 75
18. Average Means Score 5.10 76
19. Paired Samples Statistics 5.11 77
20. Paired Samples Test 5.12 80
21. Branch Facility 5.13 82
22. Marital Status 5.14 86
23. Income Level 5.15 87
24. Education 5.16 88
25. Age 5.17 89
26. Gender 5.18 90
27. Occupation 5.19 91

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 LIST OF FIGURES

FIGURE PAGE
SR. NO. PARTICULARS
NO. NO.

1. Structure of Indian Banking Industry 1.1 7

2. Organogram 2.1 32

3. Current Account 2.2 37

4. Kinds of loan 2.3 38

5. Type of Account 5.1 66

6. Average Gap Score of Tangibles 67

5.2
7. Average Gap Score of Reliability 69
5.3
8. Average Gap Score of Responsiveness 70
5.4
9. Average Gap Score of Assurance 71
5.5
10. Average Gap Score of Empathy 73
5.6
11. Un-Weighted Score 74
5.7
12. Average Means Score 76
5.8
13. Branch Facility 83
5.9
14. Marital Status 86
5.10
15. Income Level 87
5.11
16. Education 88
5.12
17. Age 89
5.13
18. Gender 90
5.14
19. Occupation 91
5.15

11
CHAPTER 1

INDUSTRY
PROFILE

12
The Concept of a Bank

KINLEY’S definition, “Bank is an establishment which makes to individuals, such

advance of money as may be required and safely made to which individuals entrust
money when not needed by them for use.”

“A bank is institutions which collect money from those who have it to spare,
who are saving it out of their income and lend this money that require it.”

- G.CROWTHER

According to above definition these are three important characteristics:

i. Bank is doing money trading.

ii. Bank collects deposits and provides interest on the deposits to people.
iii. Bank provides money or loan to people and collects interest on that.

The Concept of Banking

The business of banking may be defined as dealing in money and instrument
of credit.

The oxford university dictionary defines a bank as “An establishment for the custody
of money, which it pays out on a customers order”.Crowter puts “The bankers
business is then, to take debts of other people, to offers his own in exchange and
their by to each other”.

KENNETH MACKENZI’s definition,

Banking means the accepting for the purpose or lending or investment of

deposits of money from the public, repayable on demand or otherwise, and
withdrawal by cheque, draft, order or otherwise.

- SECTION 5 (B)

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1.1GLOBAL BANKING INDUSTRY

The History of Banking begins with the first prototype banks of merchants of the
ancient world, which made grain loans to farmers and traders who carried goods
between cities. This began around 2000 BC in Assyria and Babylonia. Later, in
ancient Greece and during the Roman Empire, lenders based in temples made loans
and added two important innovations: they accepted deposits and changed money.
Archaeology from this period in ancient China and India also shows evidence of
money lending activity.

Banking, in the modern sense of the word, can be traced to medieval and early
Renaissance Italy, to the rich cities in the north such as Florence, Venice and
Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence,
establishing branches in many other parts of Europe. Perhaps the most famous
Italian bank was the Medici bank, established by Giovanni Medici in 1397.

The development of banking spread from northern Italy through Europe and a
number of important innovations took place in Amsterdam during the Dutch Republic
in the 16th century and in London in the 17th century. During the 20th century,
developments in telecommunications and computing caused major changes to
banks operations and let banks dramatically increase in size and geographic spread.
The Late-2000s financial crisis caused many bank failures, including of some of the
world's largest banks, and much debate about bank regulation.

Earliest forms of banking

Wealth is deposited and kept in temples; in thesaurus (treasure houses) and

treasuries, where safety is afforded by the will of the gods. The earliest banks were
used exclusively by rulers to fund the more important and larger festivals and for
building expenses. All secure knowledge of the origin of the abacus is lost. By the
time of the ancient Hindus, Greeks and Romans a form of counting calculation was
in use, initially the dust abacus and later the counting table. The term originally
referred to table, bench or board.

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India

In ancient India there is evidence of loans from the Vedic period (beginning 1750
BC). Later during the Maurya dynasty (321 to 185 BC), an instrument called adesha
was in use, which was an order on a banker desiring him to pay the money of the
note to a third person, which corresponds to the definition of a bill of exchange as we
understand it today. During the Buddhist period, there was considerable use of these
instruments. Merchants in large towns gave letters of credit to one another.

21st century

The early 2000s were marked by consolidation of existing banks and entrance into
the market of other financial intermediaries: non-bank financial institution. Large
corporate players were beginning to find their way into the financial service
community, offering competition to established banks. The main services offered
included insurances, pension, mutual, money market and hedge funds, loans and
credits and securities. Indeed, by the end of 2001 the market capitalization of the
world’s 15 largest financial services providers included four non-banks.

Such profitability priory restricted to the non-banking industry, has prompted the
Office of the Comptroller of the Currency (OCC) to encourage banks to explore other
financial instruments, diversifying banks' business as well as improving banking
economic health.

Restructuring the financial institution in global economy

During the 1980s, governments began to retreat from regulation of the financial
services industry. The retreat promises to be just as dramatic and enduring as
developments during the worldwide depression of the 1930s. Although pressures for
re-regulation have emerged, especially in the United States, international competitive
forces are accelerating the movement toward less governmental intrusion; The Great
Depression gave rise to the corporate state and an almost universal increase in the
size and scope of governmental involvement in economic affairs and in other
aspects of our lives. For much of the past 50 years, governments have either owned
or regulated all financial institutions that provided intermediary services.

15
Elaborate regulatory systems, based on permission and denial approaches to
administrative law, were expected to rule on which products or services could be
offered, where they could be offered, and what prices or interest rates could be paid
or charged to customers.

At least in the United States, there was little in the way of due process in the financial
regulatory system. Regulatory agencies have operated as executive authorities that
were largely immune from the discipline of the checks and balances inherent in a
political system built on a framework of separation of powers. The costs associated
with burden of proof were borne by the regulated, not the regulators. When a
financial institution wanted to offer a new product or service, expand its market area,
or combine with another institution, the regulators required it to bear the costs of
demonstrating that the benefits outweighed the costs. In other words, “If you have to
ask, the answer is no.”

Need of financial institution in the global economy

The process by which countries’ economies become increasingly interwoven and
affected by each other. This happens with the increased flow of goods (trade),
foreign direct investment, money (finance), and/or people (migration). Globalization
is not new, but the speed, depth, and scope of the changes, aided by technology, is
new, as is the enormous power of International Financial Institutions (IFIs) and global
trade groups such as the World Trade Organization (WTO) to set the rules of the
global economy. Collective name for World Bank Group and the International
Monetary Fund (IMF), institutions established in 1944 at Breton Woods, New
Hampshire, USA, to assist with reconstruction and revitalization after World War II.

Role of Banks and financial institution in the economy

Money lending in one form or the other has evolved along with the history of the
mankind. Even in the ancient times there are references to the moneylenders.
Shakespeare also referred to ‘Shylocks’ who made unreasonable demands in case
the loans were not repaid in time along with interest.

16
Indian history is also replete with the instances referring to indigenous money
lenders, Sahukars and Zamindars involved in the business of money lending by
mortgaging the landed property of the borrowers. Towards the beginning of the
twenty-first century, with the onset of modern industry in the country, the need for
government regulated banking system was felt. The British government began to pay
attention towards the need for an organized banking sector in the country and
Reserve Bank of India was set up to regulate the formal banking sector in the
country. But the growth of modern banking remained slow mainly due to lack of
surplus capital in the Indian economic system at that point of time. Modern banking
institutions came up only in big cities and industrial centres. The rural areas,
representing vast majority of Indian society, remained dependent on the indigenous
money lenders for their credit needs.

Independence of the country heralded a new era in the growth of modern banking.
Many new commercial banks came up in various parts of the country. As the modern
banking network grew, the government began to realize that the banking sector was
catering only to the needs of the well-to-do fund the national programmers, the rural
sector, the plan priorities and the priority sector at differential rate of interest. This
resulted in providing fillip the banking facilities to the rural areas, to the under-
privileged and the downtrodden. It also resulted in financial inclusion of all categories
of people in almost all the regions of the country.

However, after almost two decades of bank nationalization some new issues
became contextual. The service standards of the public sector banks began to
decline. Their profitability came down and the efficiency of the staff became suspect.
Non-performing assets of these banks began to rise. The wheel of time had turned a
full circle by early nineties and the government after the introduction of structural and
economic reforms in the financial sector, allowed the setting up of new banks in the
private sector.

The new generation private banks have now established themselves in the system
and have set new standards of service and efficiency. These banks have also given
tough but healthy competition to the public sector banks.

17
1.2 INDIAN BANKING INDUSTRY

Till the end of late 18th century, Banks in India, in the modern sense of the term,
weren’t there. During the time of the4American Civil War, the supply of cotton to
Lancashire (The textile hub of UK) stopped from the Americas. At that time some
banks were opened, which functioned as entities to finance industry, including
speculative trades in cotton. Most of the banks opened in India during that period
could not survive and failed because of the high risk which came with large exposure
to speculative ventures.

In the year 1786, The General Bank of India was the first bank to come into
existence in India. And then, almost a century later, in the year 1870, The Bank of
Hindustan became the 2nd bank in India. Unfortunately, both these banks are now
defunct.

The oldest bank to be still in existence, that too as the largest bank in India, is the
State Bank of India. Albeit, the name was not the same as today rather was "The
Bank of Bengal” which started its operations in Calcutta in June, 1806. Interestingly,
if people think that the entry of foreign banks in India is only a post-reform
phenomenon, they are absolutely incorrect. In fact, in as early as 1850s, foreign
banks like Credit Lyonnais started their Calcutta operations. At that point of time,
Calcutta was the most active trading port, thanks to the trade of the British Empire,
and due to which banking activity took roots there and prospered.

The first fully Indian owned bank was the Allahabad Bank, which was established in
1865.By the 1900s, the market expanded with the establishment of banks such as
Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai -
both of which were founded under private ownership. The Reserve Bank of India
formally took on the responsibility of regulating the Indian banking sector from 1935.

At least 94 banks in India failed during the years 1913 to 1918. This was really a
turbulent time for the world as a whole and the banking sector in India specially. This
was the period which witnessed the First World War (1914-1918). then through the
end of the Second World War (1939-1945), and two years thereafter until India
achieved independence, were very challenging period for Indian banking.

18
The years of the First World War were turbulent, and it took toll on many banks
which simply collapsed
llapsed despite the Indian economy gaining indirect boost due to
war-related
related economic activities. There were at least 106 numbers of banks which
downed shutters during that period.

1.3 Growth of the Banking Industry

Today, the Indian Banking System is known

known the world over for its robustness. The
Reserve Bank of India is the central/apex Bank which regulates the functioning of all
banks operating within the country.

Structure of Indian Banking Industry

The banking system, largely, comprises of scheduled banks

banks (banks that are listed
under the Second Schedule of the RBI Act, 1934). Unscheduled banks form a very
small component (function in the form of Local Area Bank). Scheduled banks are
further classified into commercial and cooperative banks, with the basic difference in
their holding pattern. Cooperative banks are cooperative credit institutions that are
registered under the Cooperative Societies Act and work according to the
cooperative principles of mutual assistance.
Structure of Indian Banking Industry

FIGURE-1.1

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Post-independence

The partition of India bought about a social unrest throughout India in 1947. Riot and
chaos ruled. The most adversely impacted provinces were the Punjab and West
Bengal. So did the economies of both these provinces. As a result, the banking
activities had remained paralyzed for months. Till then the banking sector was wide
open and there were almost no regulation.

Most of the promoters were private players. With Independence, things started
changing. Rather the independence marked the end of a regime of the Laissez-faire
for the Indian banking. The new government initiated a process of playing an active
role in the economy of the nation. The Industrial Policy Resolution adopted by the
government in 1948 was the first step towards it. The resolution opted for a mixed
economy.

The important banking regulatory steps were as follows:

• In 1948, India's central banking authority the Reserve Bank of India got
nationalized, and it became an institution owned by the Government of India.
• With the enactment of the Banking Regulation Act in 1949, the Reserve Bank of
India (RBI) got empowered "to regulate, control, and inspect the banks in India."
• The Banking Regulation Act also provided that no new bank or branch of an
existing bank may be opened without a license from the RBI, and no two banks
could have common directors.

Nationalization

From Independence, it took some years for the banking sector to mature. By 1960s,
the Indian banking industry did occupy an important position to facilitate the
development of the Indian economy. Moreover, it did employ a quantum volume
which could affect national economy. It resulted in a debate about the possibility to
nationalize the banking industry.

At that point, during the annual conference of the All India Congress Meeting, in a
paper entitled "Stray thoughts on Bank Nationalization", Indira Gandhi, the-then
Prime Minister of India expressed the intention of the GOI favoring nationalization.

20
The paper was received with positive enthusiasm. Thereafter, in a swift and sudden
move, the GOI issued an ordinance and nationalized the 14 largest commercial
banks with effect from the midnight of July 19, 1969. The decision was even termed
as a "masterstroke of political sagacity" by none other than a leader of the stature of
Jaypraksh Narayan. Then, within the next fortnight of issuing the ordinance, the
Parliament passed the Banking Companies (Acquisition and Transfer of
Undertaking) Bill. The bill finally received the presidential approval on 9th August,
1969.

In 1980, there came the second phase of nationalization of 6 more commercial

banks. The reason forwarded for this was to have more control of credit delivery by
the government. By the time, GOI effectively got hold of 91% control of the total
banking business of India.

Till 1990s, all nationalized banks grew at a pace of around 4%, similar to the average
growth rate of the Indian economy.

Post-liberalization

In the early 1990s, with the Narsimha Rao government embarking on a policy of
liberalization the situation started changing. Licenses were issued to a small number
of private banks, such as Global Trust Bank (the first of such new generation banks
to be set up)which later amalgamated with Oriental Bank of Commerce, UTI
Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank.

These banks also came to be known as New Generation tech-savvy banks because
of their improved service condition and their extensive use of IT in the operations.

This move instigated competition, resulting increased efficiency and performance

and did a lot of good to the banking sector. The rapid growth in the economy of India,
again as a result of liberalization, also did help transform the sector to this new look.

The new situation shifted many goal posts. Till then, the widely used method of 4-6-4
(Borrow at 4%; Lend at 6%; Go home at 4) of functioning by the banks become
redundant.

21
Government-Controlled Banks

As mentioned earlier, despite the rapid growth of the private banks, the government-
controlled banks continue to hold the dominant share in industry assets and branch
network. Except for some of the largest banks which have branches in most areas of
the country, most of them have their business concentrated in a state or region. As
they have been around for a while and their brands are well-recognized, these banks
are often among the popular choices for both depositors and borrowers.

At the same time, the government has steadfastly held on to its policy of retaining
majority shareholding in all banks under its control. This may .restrict the capital
raising options for some of the banks, as the government shareholding is already
close to the threshold. For instance, at the state Bank of India, which may require the
most capital as it is the largest, the government holding is already down to 59%.

Table-1.1

Private Banks

Apart from the new banks that started in the nineties, this group also includes the
older private banks, which escaped nationalization in 1969 and 1980. In performance
parameters and business style, these subgroups are distinct from each other. The
new private banks have aggressive business strategies and generate a relatively
higher percentage of their total income from fee-based services.

They have also utilized technology better and some of them have extensive financial
services businesses. The older private banks, on the other hand, are more

22
comparable to the government-controlled banks, but they are much smaller in size.
The largest private banks have enjoyed higher equity market valuations because of
their presence in financial services, besides the perception that they are better
placed to exploit the future opportunities in the banking sector.

Table-1.2

Foreign Banks

Though foreign banks have a long history in India, they have remained only a small
part of the banking industry. Among them, they had only 310 branches as of last
year and almost all of them are concentrated in major cities. Most foreign banks
focus on business banking in India, servicing the domestic operations of their global
clients. But the aggressive overseas expansion by some of the large Indian
businesses has opened up more opportunities for these lenders in recent years.
Foreign banks derive more than a quarter of their total revenues from fee-based
services, a far higher ratio than the domestic banks. Only a handful of the foreign
banks have made serious efforts to expand their retail business.

All foreign banks in India now operate as fully-owned branches of their parents,
though the RBI has encouraged them to open domestic subsidiaries. The foreign
banks have not opted for the subsidiary model as there is some skepticism about the
future policy requirements. The Committee on Financial Sector Assessment,
appointed by the RBI, recently opined that the 74% foreign investment limit should
be made applicable to subsidiaries of foreign banks as well.

23
1.4 PESTEL Analysis on the Banking Industry

PESTEL ANALYSIS:-

Political factors affecting banking industry

• To what degree a government intervenes in the economy. Ex-tax policy,

labour law, environmental law, trade restrictions, tariffs, and political stability

• Some of the major political factors affecting the Banking industry are :

Focus on regulation of government

• Indian banking sector is least affected as compared to other developed

countries- thanks to robust policy framework of RBI.
• Government affects the performance of banking sector most by legislature
and framing policy government through its budget affects the banking
activities securitization act has given more power to banking sector against
defaulting borrowers.
• Stricter prudential regulations with respect to capital and liquidity give India
an advantage in terms of credibility over other countries.
• To support capitalisation, the government has infused Rs 23,200 crore (US$
5.2 billion) into state-owned banks during the last three fiscals

Foreign direct investment limit

• The move to increase Foreign Direct Investment FDI limits to 49 percent

from 20 percent during the first quarter of this fiscal came as a welcome
announcement to foreign players wanting to get a foot hold in the Indian
Markets by investing in willing Indian partners who are starved of net worth
to meet CAR norms.

• Ceiling for FII investment in companies was also increased from 24.0
percent to 49.0 percent and have been included within the ambit of FDI
investment

24

Budget measures

• Increase Farm Credit

• Subvention of 1% to be paid as incentive to farmers

• Debt Waiver for Farmers

• Setting up of separate task force for those not covered under the debt
waiver scheme

Agricultural credit
• Agriculture has been the mainstay of our economy with 60% of our
population deriving their sustenance from it.
• In the recent past, the sector has recorded a growth of about 4% per annum
with substantial increase in plan allocations and capital formation in the
sector with help of banking assistance.
• The one-time bank loan waiver of nearly Rs 71,000 crore to cover an
estimated 40 million farmers was one of the major highlights

Economic factors

• Every year RBI declares its 6 monthly policies and accordingly the various
measures and rates are implemented which has an impact on the banking
sector.

• The Economic measures affect the banking sector to boost the economy by
giving certain concessions or facilities. If in the savings are encouraged,
then more deposits will be attracted towards the banks and in turn they can
lend more money to the agricultural sector and industrial sector, therefore,
booming the economy.

• If the FDI limits are relaxed, then more FDI are brought in India through
banking channels

25

Monetary policy

Key rates July 26th Sept 16th Oct 25th

CRR 6.00 6.00 6.00

Repo rate 8.00 8.25 8.50

Reverse Repo 7.00 7.25 7.50

rate

SLR 24 24 24

• Every year RBI declares its 6 monthly policies and accordingly the various
measures and rates are implemented which has an impact on the banking
sector
• In past 24 months RBI has changed its key monetary rates 13 times to curb
rate inflation and other economic risks.

GDP

• Indian economy has registered robust growth in past years and Banking
sector indirectly related to the growth of the economy.

• GOI is trying to push the economy by framing favourable FDI policies , NRI
Investment plans which directly affect the GDP.

• These plans directly affect banking industry as money comes through

banks and bank earns interest on that.

Interest Rates:

• RBI controls interest rates, which RBI monitors regularly Recently

• RBI reduced bank rate to stimulate growth of banking industry

26

Inflation Rate:

• India is facing huge troubles due to inflation as it is 10% now.

• To curb the inflation and slowdown of economy RBI has taken various steps
like lowering interest rates to increase the demand in banking sector

Savings and Investments:

• Gross domestic saving is 28% of total income in India

• Latest step taken by RBI to deregulate savings rates is a step to increase

Bank savings

Social-cultural factors

• It includes cultural aspects and health consciousness, population growth

rate, age distribution, career attitudes and emphasis on safety. This could
be classified into:

Traditional mahajan pratha

• Before the birth of the banks, people of India were used to borrow money
local moneylenders, shahukars, shroffs. They were used to charge higher
interest and also mortgage land and house. But after emergence of banks
attitude of people was changed and they have started lending from the
banks

Change in lifestyle

• Life style of India is changing rapidly. They are demanding high class
products. They have become more advanced. People needs and wants are
increasing day by day. And this has this has opened opportunities for
banking sector to tap this change. This has made things available easily to
everyone.

27

population

• Increase in population is one of the important factors, which affect the

private sector banks. Banks would open their branches after looking into the
population demographics of the area.

• Newer branches are coming to serve the increasing population. This

incentive to banks comes on the back of the continuing need to open more
branches in these States in order to ensure more uniform spatial distribution

Literacy rate

• Literacy rate in India is very low compared to developed countries. Illiterate

people hesitate to transact with banks. So, this impacts negatively on
banks. But there is positive side of this as well i.e. illiterate people trust
more on banks to deposit their money; they do not have market information.
Opportunities in stocks or mutual funds

Technological factors

• Technology plays a very important role in bank’s internal control

mechanisms as well as services offered by them. Through the use of
technology new products and service are introduced. It include
technological aspects such as R&D activity, automation, technology
incentives and the rate of technological change. Some of the technological
changes which brought radical changes in banking industry are described
below :

ATM (Automated teller machine)

• The latest developments in terms of technology in computer and

telecommunication have encouraged the bankers to change the concept of
branch banking to anywhere banking. The use of ATM and Internet banking
has allowed ‘anytime, anywhere banking’ facilities

28

Automatic voice recorder

• Automatic voice recorders now answer simple queries, currency accounting

machines makes the job easier and self-service counters are now
encouraged.

Credit card facility

• Credit card facility has encouraged an era of cashless society. The banks
have now started issuing smartcards or debit cards to be used for making
payments. These are also called as electronic purse

• Some of the banks have also started home banking through

telecommunication facilities and computer technology by using terminals
installed at customers home and they can make the balance inquiry, get the
statement of accounts, give instructions for fund transfers, etc

IT services & mobile banking

• Today banks are also using SMS and Internet as major tool of promotions
and giving great utility to its customers. For example SMS functions through
simple text messages sent from your mobile

• Technology advancement has changed the face of traditional banking

systems. Technology advancement has offer 24X7 banking even giving
faster and secured service

Environmental factors

• Indian economy has registered a high growth for last three years and is
expected to maintain robust growth rate as compare to other developed and
developing countries. Banking Industry is directly related to the growth of
the economy.

• The growth rate of different industries were:

 Agriculture: 18.5%

 Industry : 26.3%

29
 Services : 55.2%

• It is great news that today the service sector is contributing more than half
of the Indian GDP. It takes India one step closer to the developed
economies of the world. Earlier it was agriculture which mainly contributed
to the Indian GDP.

• This increases the avenues of investment by the industrial sector. This

would further increase the borrowings by the industry’s leading to the
banking Industry

• In regards with the service sector, as the income of the people will increase,
lending and savings will increase leading to increased business for the
banks.

Legal factors

• There are two major factors determining the legal aspects of the Banking
Industry :

Banking regulation act

• In 1949, the Banking Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in
India.

• The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two
banks could have common directors

Intervention by RBI

• The Reserve Bank of India (RBI) will intervene to smooth sharp movements
in the rupee and prevent a downward spiral in its value, but will balance this
with the need to retain reserves in the event of prolonged turbulence

30
1.5 CURRENT TRENDS IN BANKING INDUSTRY

Today, the banking sector in India is fairly mature in terms of supply, product range
and reach. As far as private sector and foreign banks are concerned, the reach in
rural India still remains a challenge. In terms of quality of assets and capital
adequacy, Indian banks are considered to have clean, strong and transparent
balance sheets relative to other banks in comparable economies in its region. The
Reserve Bank of India is an autonomous body, with minimal pressure from the
government. The stated policy of the Bank on the Indian Rupee is to manage
volatility but without any fixed exchange rate.

With passing time, Indian economy is further expected to grow and be strong for
quite some time-especially in its services sector. The demand for banking services,
especially retail banking, mortgages and investment services are expected to grow
stronger. Therefore, it is not hard to forecast few M&as, takeovers, and asset sales
in the sector. Consolidation is going to be another order of the day.

The significant change in the policy and attitude that is currently being seen is
encouraging for the banking sector growth. In March 2010, the Reserve Bank of
India allowed Warburg Pincus, a private foreign investor, to increase its stake in
Kotak Mahindra Bank to 10%. Notably, this is the first time that a foreign individual
investor has been allowed to hold more than 5% in a private sector bank since 2010.
Earlier, The RBI in 2011 announced that any stake exceeding 5% by foreign
individual investors in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks
(that is with the Government of India holding a stake), 29 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges)
and 31 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public
sector banks hold over 75 percent of total assets of the banking industry, with the
private and foreign banks holding 18.2% and 6.5% respectively.”

31
Despite the current global slowdown, despite the fear of US economic recession,
despite the volatility of Indian stock markets, every informed observer is more or less
optimistic about the 8% to 10% growth per annum for the Indian economy till the next
few years. Therefore, it can safely be said that the banking industry in India will only
surge ahead in coming years. We can also expect to see many other sea changes in
terms
erms of their operations, funding and structures.

1.6 MAJOR PLAYERS IN THE INDIAN BANKING INDUSTRY

Table No. 1.3

In the banking sector, there are private sector banks and the public sector banks. In
the private sector banks HDFC Bank and ICICI Bank are the market leader while in
the public sector banks SBI Bank and Punjab national Bank are in the top position.

32
Private Sector Banks

1. HDFC Bank

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalization of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments, and
to achieve healthy growth in profitability, consistent with the bank's risk appetite. The
bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus,
Product Leadership and People.

2. ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion
(US$ 93 billion) at March 31, 2012 and profit after tax Rs. 64.65 billion (US$ 1,271
million) for the year ended March 31, 2012. The Bank has a network of 2,757
branches and 9,363 ATMs in India, and has a presence in 19 countries, including
India.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada,
branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and
Dubai International Finance Centre.

33
Public Sector Banks

1. State Bank of India

The Bank is actively involved since 1973 in non-profit activity called Community
Services Banking. All our branches and administrative offices throughout the country
sponsor and participate in large number of welfare activities and social causes. Our
business is more than banking because we touch the lives of people anywhere in
many ways. Our commitment to nation-building is complete & comprehensive.

The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits
and issuing and circulating cash notes. Loans were restricted to Rs.1 lakh and the
period of accommodation confined to three months only.

2. Punjab National Bank

With over 60 million satisfied customers and more than 5100 offices including 5
overseas branches, PNB has continued to retain its leadership position amongst the
nationalized banks. The bank enjoys strong fundamentals, large franchise value and
good brand image. Besides being ranked as one of India's top service brands, PNB
has remained fully committed to its guiding principles of sound and prudent banking.
Apart from offering banking products, the bank has also entered the credit card, debit
card; bullion business; life and non-life insurance; Gold coins & asset management
business, etc. PNB has earned many awards and accolades during the year in
appreciation of excellence in services, Corporate Social Responsibility (CSR)
practices, transparent governance structure, best use of technology and good
human resource management. PNB has achieved significant growth in business
which at the end of March 2011 amounted to Rs 5,55,005crore.

PNB is ranked as the 2nd largest bank in the country after SBI in terms of branch
network, business and many other parameters. During the FY 2010-11, with 39.16%
share of CASA to domestic deposits, the Bank achieved a net profit of Rs 4433
crore. Bank has a strong capital base with capital adequacy ratio of 12.42% as on
Mar’11 as per Basel II with Tier I and Tier II capital ratio at 8.44% and 3.98%
respectively.

34
As on March’11, the Bank has the Gross and Net NPA ratio of 1.79% and 0.85%
respectively. During the FY 2010-11, its ratio of Priority Sector Credit to Adjusted Net
Bank Credit at 40.67% & Agriculture Credit to Adjusted Net Bank Credit at 19.30%
was also higher than the stipulated requirement of 40% & 18% respectively.

1.7 Major Offering in banking industry

1. Any Branch Banking (ABB)

Customer can transact his/her account from any branches of the bank like cash
receipt, payment, transfer, balance enquiry, statement/passbook printing, deposit
outward clearing etc. If the customer wants to transfer amount from one branch to
another one, that will be transferred. Thus for example, one customer’s account is in
station road branch and he wants to transfers money to another customer whose
account is in katargam branch. If customer wants to transfer from one account to
another in same branch, it will not be transferred in another branch; the customers
have to go to that branch for transferring amount.

2. CCTV Monitoring

Bank’s all branches has CCTV Camera and all this connected and monitored at
Head Office. With the help of CCTV Bank is able to search any fraud with customer
or employee of the bank.

3. Token Payment service

If customer wants to take cash more than 30,000 in Current Account and 20,000 in
Saving Account, they have to take token and as per the token number, they get it.
For paying amount to the customer whose account is closed, the bank give token to
that customer.

4. E-Payment Facility

Bank has started E-payment facility for the customers of the Bank for the purpose of
payment of Income-Tax.

35
5. Personalized Cheque Book

Personalized Cheque Book is being issued to all the customers of the Bank as per
their need. If the customer is having current account then he get cheque book of 45
cheques, and if the customer is having saving account then he get cheque book of
15 cheques.

6. M.I.C.R. Cheque.

"Magnetic Ink Character Recognition" that is known as M.I.C.R. This crucial

technology is also adopted by The SUTEX Co-Operative Bank for rapidly work with
a view to speeding up the cheque clearing process both local as well as intercity,
under this system; the cheques are processed at high Speed on machines.

Bankissued cheque, draft and other payment instrument in M.I.C.R. Format using
thespecial quality paper and printing specifications.On M.I.C.R. instrument there is
code line at the bottom containing information printed in magnetic ink, which is
required for mechanical processing.

The code line contains the First six number indicate the cheque number, Next three
number indicate city code, Next three number indicate bank code, Next three
number indicate branch code, After some space there is the number for transaction
codeM. I. C. R. cheque should not be a folded. Pin, staples, etc. should not be used
on top left hand corner of the cheque.

Signature of the drawer, rubber stamp, etc. should be affixed above the code line.
Nothing should be written on the code line. In place of the counterfoils M.I. C. R.
cheque-books provide for Record Slip.

7. RTGS/NEFT Facility

Real Time Gross Settlement/ National Electronic Fund Transfer Facility available to
the customer of the bank. By this facility customer can transfer his balance
throughout India of any Banks, which is member of RTGS/NEFT.

8. Senior citizen

For senior citizen Bank gives one percent more interest in Fixed Deposit. The age of
senior citizen is above 60 years.

36
9. Full Day Banking Services:

Monday to Friday 10:30 a.m. to 5:30 p.m.

Saturday 10:30 a.m. to 2:300 p.m.

10. Mobile Banking System

Now you can get the information such as Balances, Transaction Details, Cheque
Status, Deposit rates and much more… sitting at your home or office.

Bank has a centralized mobile banking facility. Through this facility customer can
know his/ her balance via SMS for getting various details about their accounts like
Current Balance, Cheque Return Status,
Status, FD Rates, and Loan Rates etc.

Bank also send regularly SMS to the registered customer like cheque inward/
Outward return details, FD rates, any event etc.

11. VAT Machine

VAT machine is available to the all branches of the bank in the

bank’s customer passage.
ge. With the help of VAT machine
customer can view various details of his/her A/c. Like Balance,
Statement etc. For avail this facility customer should have
registered his account with bank and get 4 digit passwords from the bank’s Officials.

12. Demand Draft Facilities

Demand Draft Facility is available for DDs all over India. Bank has tie-up
tie
arrangement with Private and Subsidiaries of SBI Group Bank at nominal
commission.

13. Teller Payment System

Cash Payments upto Rs.20000/-

Rs.20000/ in Current Accounts and Rs.10000/-
Rs.10000/ in Saving
Accounts are available directly from teller payment cashier.

37
14. Franking of Adhesive Stamp

Bank has Franking Machine under license from Government for stamping of
Adhesive Stamp arranged with Revenue Dept. of Gujarat State at Gandhinagar.

15. Locker Facility

Locker Facility is also available at Bank’s Gopipura, katargam,

rander, udhnaMagdalla, Athwalines, ParvatPatia, City Light
Road, Salabatpura, and Pandesara GIDC Branches at nominal
rates of rent. There are various types of lockers in different
sizes.

16. Automatic Teller Machine (ATM):

The SUTEX Co-operative

operative Bank is the first Co-operative
Co
bank of all Co-operative
operative banks in Surat city. The bank is
providing high facility to the customer by automatic teller
machine, by using the automatic teller machine custom er
can receive banking services round the clock 24 hours and
whole year 365 days. ATM is also known with another
name for business development is “Any time money. At a
time of using ATM card customer has to press both the account numbers and
password
d numbers from ATM machine. For using government ATM card customer
has to press only password At the time of using the ATM card if the customer press
the wrong password at three time, customer cannot get card return because ATM
card gone into machine.

17. Bancassurance

It is insurance companies tying upwith banks to sell insurance products.

Bancassurance is an innovative concept distribution channel in India. Thus account
holder can be able to take insurance from bank rather than go to the insurance
company for buying insurance policy.

38
18. “Face-to-Face” Online Banking

“Video banking” service that allows customers to have a “face-to-face” conversation

with an adviser via their Smartphone, tablet or computer.

Wherever they are in the world, whatever the time of day. The bank said the move
was “a UK banking first”.

39
CHAPTER 2

COMPANY
PROFILE

40
 2.1 Introduction to Sutex Co-operative
Co bank

With the intention of providing banking services to the member of Surat Textile
market for establishing their business in the market “The SUTEX Co-operative
Co Bank
Ltd.” was established.

th
“The Surat Textile Traders Co. bank was started on 15 may, 1972 with 270

member and 1, 10,000 share capital and fund of 5, 23,315/- in the ground floor
of The Surat Textile Market. Today it works in bank block, Surat Textile Market.
Mar At
the time of establishment bank’s name was “The Surat Textile Traders Co. bank
Ltd.”. In year 2000 the bank wanted to provide banking facility to not only textile
businessmen but also general public, so bank changed its name to “The SUTEX
Co-operative Bank Ltd.” from “The Surat Textile Traders Co. bank Ltd.”.
Ltd.” It was
th
registered in Multi state Co-operative
Co Act-1984 on 8 February 1999. It was

established by the chairman Mr. Surajram H. Bachakaniwala and vice-chairman

vice late
Mr. Ashabhai R. Patel and late
late Mr. Bhupatlal R. Dhilabhai (regional Manager of
DENA Bank), late Mr. Bhagwandas Lekhadiya, late Mr. Manilal Chevali, Mr. Manilal
Kapadiya, Mr. chaturbhai Tanawala, Mr. Mohanlal Nayak etc.,

th
First branch of the bank was established on 27 July 1986 at station
tion road Meghani

tower. It was inaugurated by a great sage revered Ghanshyam Charan Swamiji of

Swaminarayan Temple.

In 1986, “The SUTEX Co-operative

Co operative Bank Ltd.”, got whole time membership in
“Gujarat Urban Co-operative
operative bankers Federation”.
Federation”

In 1992-93, bank purchased Hardware from “NALCO Company” and Software from
“Tryology Company” and started online computerization in main branch.

th
On 15 may, 1996, bank celebrated festival of silver jubilee. Mr. Surajram

Bachkaniwala - the chairman of the bank started this

thi festival.

st
On 31 march, 1996 bank’s deposit was 66 crore, loan of 38 crore, share capital

of 1.52 crore, reserve and other funds of 4.11 crore and investment of 32.37
crore.

41
In year 2010 the bank has 14 branches including main office and bank wants to also
establish one new branch in near future. In 1996 reserve bank of India gave
permission to bank to increase their function area from Surat to Bharuch and
Mumbai.

In the year 1996, occasion of bank’s silver jubilee The SUTEX Co-operative
Co Bank
Ltd.” Offer donation of 50 lacs to “Sarvajanic Education society” for textile
processing faculty. In this donation one cheque of 10 lacs was given by the
chairman of “The Surat
at Textile Traders Co. bank Ltd.”-
Ltd.” Mr. Surajram Bachkaniwala
to the chairman of ‘Sarvajanic Education Society’-
Society’ Mr. Dilip Marafatiya.

As mention above currently the bank has 14 branches, one administrative and one
data center in the Suart city. From these branches 3 branches having the facility of
ATM (Automatic Teller Machine). The ATM machines are available on Station road
branch, Rander Road Branch and City Light Road Branch. The bank provides 24
hour ATM service to its customer. The fast clearing service
service is also available at “The
SUTEX Co-operative
operative Bank Ltd.” All branches of banks are interrelated to each other.

The SUTEX bank is first fully computerized Co-operative

Co operative bank in Surat city. From 15
branches the bank provides SDV (Self Deposit Volt) facility in 9 branches.

The bank has received audit class “A” in last 21 years; it is great achievement of the
bank. The bank provide 15% dividend to shareholder as profit. The bank start with
272 shareholder &working capital of Rs. 5, 23,315.

In present time the bank

ank is thinking about wireless anywhere bank (satellite bank) so
customer can easily withdraw or deposit their money in bank.

"HELPS YOU LIVE BETTER"

SUTEX bank was established on 1st may 1972. The name of the bank at the time of
establishment was ‘The surat
sur textile theadrs co-oprative
oprative bank ’.The Registered office
bank block is being worked at surat textile market, Ring road, surat. In 1972, the
chairman surajrambachkaniwala and vice chairman of that time and the promoter of
sumul dairy-AshabhaiShankarbhai
AshabhaiShankarbhai Patel decided to shape a co--operative bank I
order to provide the best market to the textile industry of surat.

42
The shareholders of the entire surat textile market can start their shop in market and
to provide the banking facilities to them was the main motive of starting the bank.

The bank was started with only 270 shareholders and share capital of Rs.1.10 lacs.
On 31st march 2010, the bank had 22,452 share holders and share capital of
rs.1732.22 lacs. The number of the depositors was 2, 01,210 on the 31st march
2010. Now a day, there are 14 branches and administrative office is working. In a
short span of time, the bank is going to start a new branch at pal road, Surat.

After 1983, the growth rate of the bank was increasing at the increased rate because
bank had got direct membership of clearing house. Mr.Ashok chandulal bhatt was
appointed as a manager by board of directors in 1983.

The bank is aggressive among all the co-operative banks from south Gujarat in
starting all the branches by totally computerized system.The SUTEX bank is the first
bank that had started the ATM service for 24 hours on station road branch among all
the co-operative banks. In spite of inflation recession, high interest rate from post
office, and the deposits of SUTEX bank are increasing day by day.

Table-2.1

Date Amount in cores

31-03-2009 423.43
31-03-2010 520.98
31-03-2011 635.74
31-03-2012 756.30
31-02-2013 883.15

The main reason behind the continuous increase in the deposits at the increase rate
is that the highest level of customer service in the SUTEX bank.

43
 Particular (Rs. In Cores)
Share Capital 27.68
Deposits 883.15
Loans 584.07
Total Business 1467.22
Business Per Employee 6.66
Net Profit 11.26
Cross NPA 0.06%
Net NPA 0.00%

To get deposits, employees contact the customers, that means that the managers of
the bank go at the door of customers and small retailers get immediately loans in the
SUTEX bank. There is a facility of safe deposit volt locker in the bank. Bank pays the
interest of fixed deposit every month. Under the textile industries for technology of up
gradation fund plan of Indian Government, SUTEX bank was approved by ‘ministry
of textile’ for sanctioning direct loan

Vision, mission and value

Vision

Our vision is to be India’s most respected and admired urban co-operative bank by
influencing People’s lives through personalized banking services and partnering
them realizing their dreams.

Mission

Our mission is to be preferred financial services provided with a special focus on

innovative quality products, technical expertise and efficient services for customer
achieve their objectives and goals.Values

We have accepted social responsibility and accordingly we have tried to fulfill our
social obligations to be recognized as best bank in real services.

44
 2.2 Organogram

FIGURE- 2.1

2.3 Department

2.3.1 Marketing department:-

Introduction

“Marketing management is the art & science of choosing market targets and getting,
keeping & growing customers through creating, delivering and communicating
superior customer value.”

Marketing is an integrated communications-based process through which individuals

and communities are informed or persuaded that existing and newly-identified needs
and wants may be satisfied by the products and services of others.

Marketing department is just like heart for any organization. Marketing persons sale
what a company produce. But in a business like service sector like bank, marketing

45
person find the person whose business is in good condition and then provides them
loan to that person so the bank get can get more business from that person.

The officer of marketing department is Mr. Durgesh Patel. In this department inthis
department target of collecting some saving account, current accountetc is given to
the officer of the department.

2.3.2 Human resource department

Employees are the main persons of the company in the sense of management. They
are the parsons who make the business take breath. It is said that ‘Take care of only
your employees, they, will take care of your business.’ So it is essential to maintain
and take care of employees properly.

SUTEX bank is one of the banks which provide good facilities to its employees. Let’s
see the whole travel of an employee of SUTEX bank from which he passes.

1. Joining the SUTEX bank

1.1 Recruitment

Campus Recruitment

Off Campus Recruitment
1.2 Orientation

Induction program

Induction formalities

2. Growth and Development in SUTEX bank

2.1 Performance appraisal

2.3 Promotion Policy

2.4 Training

3 Assistance & benefits

3.1 Salary advance
3.1.1 Normal
3.1.2 Specific

46
4. Healthcare of SUTEX bank
4.1 Medic lame
4.2 Group/Personal Accident Insurance
4.3 Contribution at Employee’s death
4.4 Doctors at no fee
4.5 Medical check-up
5. Work life balance
5.1 Working hours
I. Official working hours
5.2 Recording attendance
5.3 Leave
5.3.1 Causal Leave
5.3.2 Medical Leave
5.3.3 Privilege Leave
5.3.4 Leave Without Pay
5.3.5 Paternity Leave
5.3.6 Special Leave

6. Parting ways
6.1 Retirement
6.2 Retainer ship

2.3.3 Finance Department

The importance of finance in the business is same as the importance of the spring in
the clock. Finance is required from the starting of the business until it terminates, as a
means of the business transaction. Finance is the blood of the business without which
any single task is not possible. Sometimes it acts as a motivator also.Finance is
regard as life blood of business organization and management of finance study about
procurement of funds from most advantage source and its effective disbursement with
a view to maximizing shareholder’s wealth. Account activity is also an important part
of finance management.

47
The finance manager is responsible for all aspects of the accounting and finance
administration of the SUTEX bank, the supervision of the implementation of the
financial policies, directives and procedures and the initiation of the financial plans
within the guidelines of SUTEX bank. The department contains several distinct
sections each of which is responsible for a proportion of the activities taking place
within the finance department.

Finance manager makes different types of budgets, which are as follows

• Profit And Loss Account

• Budgeted Balance Sheet
• Capital Expenditure Budget
• Cash Budget
• Master Budget

Functional Department of the Bank

The SUTEX bank consist many type of department like HR Department, Finance
Department, Marketing Department, Loan Department, Administrative Department,
Fixed Deposit Department, Account Department, Recovery Department, and Token
Department. The HR department of the organization consists of the people who
employ the persons who they think would be able to do justice with job handled.

2.3.4 Account Department

1. Saving Account

A saving account is meant for the

people who are of middle and lower
classes who wish to save a part of their
incomes to meet their future needs and
who want to earn some income from
such saving. There are three types of
saving account.

48
 Individual
Joint
Minor

A saving account can be opened in the name of individual or jointly, in the name of
minor, in the name of an institute or trust.

Restriction on Savings Bank Deposit

Any amount subject to a minimum of Rs. 100 may be deposited in the savings bank
account. Minimum opening amount for saving account is Rs. 1000/- for co-operative
bank.

Restriction on Withdrawals

Bank imposes restriction on the right of the depositor to withdraw money within
specified period of time.

In one year, the number of withdrawals is limited to 150. But bank may allow more
withdrawals in special cases according to their direction. Depositors are not allowed
to withdraw a sum, which is less than Rs. 100/- or a sum which not multiple of Rs..1/-
unless the account of depositor is closed.

Interest on Savings Bank Account

The rate of interest to be paid by the banks to depositors on savings bank deposit is
prescribed by the reserve bank of India. At present the rate of interest on saving
bank account is 4%.

Cooperative bank and regional rural bank have been allowed to give 0.5% more
interest than the normal interest rate prescribed by the reserve bank. Interest is
calculated at quarterly or half yearly rates, on the minimum balance to the credit of
the account during the period from the tenth day to the last day of the credit calendar
of each calendar month on every complete sum of Rs. 10/- and is credited to the
account.

3 Current Account
Businessmen usually open such a current in the bank looking to the convenience
of payment and receipt of the money in their trades or business.

49
 FIGURE 2.2
FIGURE-

Businessmen usually open such a current in

the bank looking to the convenience of
payment and receipt of the money in their
trades or business.

This current account is opened and operated

by big businessman, joint stock companies,
institutions, public bodies, public corporation,
industrialist etc.who are engaged in large
scale business activities.

I. Possess huge working capital

II. Have an interest in keeping money safe
III. Have a frequent transaction with the banker daily
da
IV. Receive and make payment s through cheques
2.3.5 Loan Department

Meaning of loan

Loan is a one types of promises under which bank get ready to lending money to a
borrower for a fixed period. Borrower needs it for specific purposes so bank is ready
for lending him a credit for a specified period. In this period borrower has to repay it
with interest and installments.

Loans and advances are classified in to secured and unsecured.

Secured Loan or Advance

Secured loan or advance means a "Loan or Advance made on the security of assets.
The market value of which is not at any time less than the amount of such loan or
advance."

50
Unsecured Loan or Advance

An unsecured loan or advances means a "Loan or advance not so secured. A partly

covered loan or advance is partly covered by the security of assets, the market value
of such securities being less than the amount that has been lend or outstanding at
any time."

Kinds of loan

Generally National and Co-operative bank grant loans for different period like shorts,
medium and long and for different purpose. Broadly, the loans granted by banks are
classified follows :- FIGURE-2.3

(1) Short-term Loans

Normally Short-term loans granted for short time period such as for less than one
year. Short-term loans are granted to meet the working capital needs of the
borrowers.These loans are granted against the securities of tangible assets mainly
the movable assets like goods and commodities, share debenture, etc.

(2) Term Loans

Medium and long-term loans are usually called term loans. These loans are granted
for more than a year and are meant for purchase of capital assets for the
establishment of new units and for expansion or diversification of an existing
unit.Such loans constitute a part of the project finance which industrial enterprises
are required to rise from different sources. These loans are usually secured by the
tangible assets like land, building, plant and machinery, etc.

51
(3) Composite Loans

When a loan is granted both for buying capital assets and for working capital
purpose, it is called a composite loan. Such loans are usually granted to small
borrowers, such as artisans, farmers, small industries, etc. Maximum time period for
this loan is 3 to 4 years.

(4) Consumption Loans

Normally banks provide loans for productive purpose only, but as an exception loans
are also granted on a limited scale to meet the medical needs or the educational
expenses or expenses relating to marriages and other social core monies etc. of the
needy persons such loans are called consumption loans.

1. Vehicle loan

The vehicle loan is provided to customer for purchased a two wheeler, three wheeler
vehicles or four wheeler vehicles. This loan is providing to individual, partnership and
private limited company. Bank provides vehicle loan at 75% of original price of
vehicle. The maximum time period of loan is 36 months. The bank collects the
document of borrower’s property for security.If the installment is paid within due date
so that loan holder can get 1% rebate.

Required document for vehicles loan

All basic documents

Evident of shareholder
Invoice of purchasing vehicle

Table-2.2

Particular margin Interest rate Rebate

Two wheeler loan 20% 12.25% 1%

Four wheeler loan 15% 12.25% 1%

52
2. Machinery loan

This loan is provided by bank to their customer for purchasing machinery. Machinery
loan is provided by bank to proprietorship, partnership and privet limited firm. Bank
provided different kind of machinery loan to their customer at different rate and
different margins. Borrower has to pay only interest of their loan amount not an
installment for first six months .

Required document for machinery loan

Income proof
Quotation of machinery
One surety up to 300,000 and two surety beyond 300,000
Pan card of owner (If proprietorship firm thenotherthan pan card of
firm)
Factory proof
Electronic bills

Particular Margin Interest Rate Rebate

up to 10 lakhs 13% 1%
Machinery loan 20% to 30%
Above 10 lakhs 13.50% 2%

2. Education Loan

Education loan is a vacillated to student of higher study in India or foreign. The bank
provided a loan according to student parent’s income. The rate of loan is different in
India and foreign. This loan is providing after standard 12th.. Now a day’s bank gives
education loan for higher study. If loan is of above 500,000 then interest rate is 11.50
%.(0.50% discount for women).

3. Consumer loan
This loan is providing to purchase daily used items in house. Banks provides loan for
different types of instrument like daily use in house Television, Refrigerator, Gas,
Telephone,
phone, Computer, Furniture, Video, Washing Machine, etc. the bank providing a
loan according to price.

53
Documents required for the loan

Income proof,
One surety who have properties,
Quotation,
All the documents or if previously any types of loans are taken,
4. Staff loan

This loan is provided to only the staff of bank. This loan is provided at low rate of
interest and also the margin of loan is favor of staff. This loan is provided as par the
salary of the employee. This loan is beneficial for the staff only and it is provided for
the self use.

Margin
For officer clerk 25,000/-
For sub-staff 20,000/-
Manager 30,000
Documents required for the loan

All basic documents

Income proof
One surety who have properties
Quotation

5. Housing loan
Housing loan is provided for a purchase of house, flats, shop, office or building. This
loan is provided to individual, partnership, proprietorship, private ltd. Company and
customer etc.

Documents required for the loan

Last two years income proof,

Residence proof,
All the details of taking previously any types of loan in the bank,
Business’s/Service’s proof,
Copy of surety’s city survey & text receipts etc,
Other required documents.

54
6. Clean loan

Personal individual loan is called clean loan. The rate of interest is @15.00% per
annum. This loan is providing only individual for personal work. The borrower can get
loan of maximum .50, 000 /-.
/

Producers of loans

• Bank’s for all types of loan’s necessary

necessary application forms are printed. In this
borrower or customer is required to fill out the loan application form printed by
the bank, which seeks comprehensive information about the loans. Especially
the loan application from concerns all the detail of borrower.
bor
• All the loan application from should be fully fill up and related are accepted in
branch office of the bank.
• In branch office all the application forms are scrutinize and know if it is
completed or not by loan department officer. If the application is not
completed then asked to borrower to give necessary information about the
loans and relevant.
• In branch level, “Investigation report” or “office report” can be prepared and for
its sanction purpose manager recommendation letter is written and after that
t
the loan file or office report and managers recommendation letters are
presented in administration’s office.
• In administration office it will be presented in “loan committee” of the SUTEX
co-operative
operative bank meet two-three
two three times in a month. In “loan committee”
comm it can
re-scrutinize
scrutinize or recheck and it will be presented in “board meeting” for its
sanction purpose.
• After that to call party and take share application form’s money, document’s
charges, and after to sign and stamp can be done to the loan application.
applicati
• After that if it essential, lawyer’s help and value’s report can be taken.
• After stamp and sign, it can be return to branch from where it comes. All the
paper’s and files are given to branch office.
• In branch office, payment of loan can be done who is sanctioned. In
administrative office and take entry in computer to open its account and field
all the detail related with the loans.

55
 2.3.6 Recovery Department

Recovery of any loan is necessary for all the banks. If the customer does not pay
back their loan amount to bank then it will become non-performing assets (NPA) for
the bank so recovery department is require in all bank.

In the SUTEX bank Mr. Jayesh S Shah had worked in this department. They get the
recovery of the defaulter loan. So, this way the recovery manager plays an important
role for collecting the amount from the borrower. After giving loan, it is repaid by the
borrower in fixed period, but some time the borrower become defaulter at that the
recovery department plays an important to get money back. So it is recovery
manager to collect loan from the borrower and the amount includes Interest and
principle amount also.

In the SUTEX bank banker follow one procedure of recovery of loan which is
as follow

7. Give letter remainder with details of its account.

 First remainder
 Second remainder (To give information to the director who signs
the loan application)
 Third and strong remainder
8. Through discussion.
9. It necessary then layer’s notice.
10. Recovery schemes.
11. Legal provision.

Administrative Department

The administrative department of the organization consists of the director and the
manager of the organization. They preside the organization and control all the
operation of the organization such that the organization could run in a smooth and
effective manner. The executive the department of the organization consists of the
various employees who execute the job undertaken by them. The employees consist
of the team leaders, the corporate financial consultants.

56
Token Department

The next department of the bank is the Token department. It is small but department
with only one employee. The working hours of this department is from 11:00 am to
3:00 pm. Token is issued after various strict verification of cheque such as signature
amount in figure as well as in words etc. This department is small but full of
responsibility. Bank has a special service for its customers that is up to Rs.10, 000
for saving account holders and no limit for current account holders can be withdrawn
directly from the cash counts without the procedure of Token.

2.3.7 Fixed Deposit Department

 Meaning Of Fixed Deposit Account

The account which is opened for a particular fixed period (time) by depositing
particular amount (money) is known as Fixed (Term) Deposit Account.

The term 'fixed deposit' means that the deposit is fixed and is repayable only after a
specific period is over.

Under fixed deposit account, money is deposited for a fixed period say six months,
one year, five years or even ten
years. The money deposited in this
account cannot be withdrawn before
the expiry of period.

The rate of interest paid for fixed

deposit vary (changes) according to
amount, period and from bank to
bank.

 Features of Fixed Deposit Account

The main features of fixed deposit account are as follows

• The main purpose of fixed deposit account is to enable the individuals to earn
a higher rate of interest on their surplus funds (extra money).
• The amount can be deposited only once. For further such deposits, separate
accounts need to be opened.

57
• The period of fixed deposits range between 15 days to 10 years.
• A high interest rate is paid on fixed deposits. The rate of interest may vary as
per amount, period and from bank to bank.
• Withdrawals are not allowed. However, in case of emergency, banks allow to
close the fixed account prior to maturity date. In such cases, the bank deducts
1% (deduction percentage many vary) from the interest payable as on that
date.

 Advantages of Fixed Deposit Account

The advantages of fixed deposit account are as follows:-
• Fixed deposit encourages savings habit for a longer period of time.
• Fixed deposit account enables the depositor to earn a high interest rate.
• The depositor can get loan facility from the bank.
• On maturity the amount can be used to make purchases of assets.
• The bank can get the funds for a longer period of time.
• The bank can lend such funds for short term loans to businesszmen.

2.3.8 Clearing Department

Clearing is the process related to the payment system in the Banking Industry.
Cheque and DD is the major instrument of the payment system. Clearing is the
process through which customer are able to pay/receive the money through cheque,
DD, Dividend warrant and others such instruments. Clearing involve the processing
of outward cheque and inward cheque.

Outward clearing

All the cheque sent to the “State Bank of India clearing House” is considered as
outward cheques. For these cheque entries are made using outward clearing
module. In this process, customers’ accounts are credited and head office account
is debited.

The customer is allowed to withdraw money only after a cheque gets cleared and
money is realized. If the outward cheque returns, the State Bank of India sends

58
advice to The SUTEX Co-operative Bank Ltd. In this case of Head office, account is
credited while on another hand customer account is debited.

Nowadays most of the cheques/ DD s are magnetic ink character Reorganization

(MICR) Encoding and they are cleared using MICR Technology for clearing. Non-
MICR cheques are cleared at The SUTEX Co-operative Bank Ltd. On every
Thursday, the basic Procedure remains the same for both types of cheques.

Inward Clearing

Inward clearing involve two operations:

• Handling of cheques Returns
• Process of Inward cheques and other instruments
Inward clearing entries are those cheques/Instruments that are drawn on The
SUTEX Co-operative Bank Ltd. All the cheques/Instruments are collected from the
State of India also give sprint report showing Cheque number, amount and detail.

Computerized entries of all the cheques/Instruments are then made using their
operation. The process will debit customer account and credit the Head Office
Account. Thus two ways are generated for each transaction.

Sometimes Customers Cheques returned, for returned cheques, Head Office’s

account is debited on the day it is return and once again it is credited on the next
day. This is performed so because. The SUTEX co-operative Bank Ltd. Account will
be debited at the state bank of India clearing house on the next day.

 ECS:-(Electronic Clearing Service)

Electronic Clearing service (ECS) is increasingly being
used by various users like Govt. Departments, corporate
bodies, etc. for repetitive payments like salary, pension,
dividends, interest, etc.

The Electronic Clearing Service (ECS) from SUTEX co-

op.Bank entails automatic payment of utility and routine monthly bills installments
from your savings/current account subject to your prior one time approval. Similarly,

59
refunds of IPO, Interest Warrants, and Dividend etc. can also be credited to your
account automatically.

Here you do not have to go to anywhere to pay for the utility services or stand in long
queues for any kind of Bill Payment. Based on the standing instructions, payments
will be debited in your account and credited to the presenters account automatically
auto .

 RTGS Service

The SUTEX co-op.

op. Bank provide RTGS (Real
TimeGross Settlement) service through state
bank of travankar. The fund is transfer in other
bank very fast through this service. There is
minimum charge of this facility

RTGS facility in India

ndia and currently all our branches
are RTGS enabled. Under this system funds can
be transferred between two RTGS enabled bank
branches irrespective of the bank and the location
of the branch.

Reach your beneficiaries within 2 hours:Every branch of our bank

bank has a distinctive
RTGS Code and the same can be seen in the branch network under the details for
every branch. The SUTEX co-op.
co op. Bank implemented it’s ANY BRANCH BANKING
facility for their customer. Through this facility one can receive payment from any
other
ther banks' branches who are RTGS members having IFS code or make payment
to any other banks' branches who are RTGS members having IFS code located
across the country within two hours at cheaper cost and at the same time with high
safety.

 NEFT Service

The NEFT (National Electronic Fund Transfer) Service helps in the seamless
transfer of funds from one branch to another without any delays or procedural
hassles. Like RTGS, RBI has introduced another type of funds transfer system called
NEFT (National Electronic
tronic Funds Transfer). The operations and functions of the

60
system are similar to RTGS. We have become active member of NEFT system and
we propose to introduce a new product called e-Transfer (NEFT).

In order to encourage small value payments through NEFT, we have fixed nominal
charges only. Commission for Outward Payment is Rs. 5/- flat for amounts less than
Rs. 1, 00,000.00 and Rs. 25/- flat for transactions for Rs. 1, 00,000.00. There is no
minimum transfer amount limit. However, only up to Rs. 1, 00,000.00 can be
transferred per transaction. There is no inward payment charge under NEFT.

Our customers are advised to instruct their counterpart to quote correctly the full 15-
digit account number for inward payment to identify the branch and credit their
account immediately.

If the message received is without 15-digit account number it will be rejected and
returned automatically NEFT is the most suitable mode of payment for small value
payments as the charges are cheaper and settlements are faster when compared
with other modes of payment.

3.4 SWOT Analysis of the Bank

Strengths of bank

• Good qualified customer service & management.

• Quick and Efficient banking services.
• Branches are spread in all over city.
• Trained staff.
• Speedy loan process.
• The bank has implemented “Tele banking facility”.
• Presently all the branches are computerized.
• Bank has started its own “Training center” to provide training to the
employees of other co-operating bank.
• Customer satisfaction and security.
• Bank’s system is totally based on professional approach.
• Important strength of the bank is that, having only male employees. Likewise
bank is having the benefits of strong man power to work.

61
 Weakness of bank
• Relatively it should follow the rules of the co-operative society. So this type of
bank is appreciated up to the limited purposes.

Opportunities for bank

• As far as opportunity matters concerns, the SUTEX bank has to develop Net-
Banking because bank do not has its own website.
• Second point is that, bank should establish their branches out of Surat city
also.

Threats to bank

• Minor threats of this bank are the rules and regulation of the RBI.
• Another, competition regarding rate of Interest.

Branches of SUTEX bank

Table 2.3
1. Surat Textile Market Branch:- 2. ParvatPatia Branch:-
3. Station Road Branch:- 4. Sachin GIDC Branch:-
5. Gopipura Branch:- 6. City Light Road Branch:-
7. Katargam Branch:- 8. Salabatpura Branch:-
9. Rander Branch:- 10. Pandesara GIDC Branch:-
11. Varachaha Branch 12. Sahara Darwaja Branch:-
13. UdhnaMagdalla Branch:- 14. Udhana Main Road Branch
15. Udhna Main Road Branch 16. Data Center

62
Board of Directors
Table 2.4
Sr. no. Name Designation
1. Mr. Nirmal Kumar VrajlalVakhariya Chairman
2. Mr. NimeshSurajramBachkaniwala Vice - Chairman
3. Mr. KamalvijayTulshan Secretary
4. Mr. RavindrbhaiBhupatlalDholabhai Secretary
5. Mr. PrabhatbhaiFakirshinhSolanki Secretary
6. Mr. AruanbhaiBrijmohanKanodiya Director
7. Mr. JyotindrbhauBhagvandashLekhadiya Director
8. Mr. ManaharlalRatilalBachkaniwala Director
9. Mr. HasamukhlalBagvandasMistri Director
10. Mr. SharadChampaklalKapadiya Director
11. Mr. Raj ManilalKapadiya Director
12. Mr. KartikUpendraHathiwala Director
13. Mr. AshvinJayantilal Desai Director
14. Mr. JitendraMaganlalNayak Director
15. Mr. Bhikhubhaimohanlal Desai Director

Other officer of bank

Table 2.5
Sr. No. Name Designation
1. Mr. J. B. Shinde Chief Executive Officer
2. Mr. K. T. Vadiya I/C. CEO
3. Mr. G. A. Patel Credit Manager

63
CHAPTER 3

REVIEW OF
LITERATURE

64
Customer Satisfaction, Perceived Service Quality and Mediating Role of
Perceived Value: (2012) (worded by Saif Ullah Malik) Regression and correlations
analysis the results of testing mediating model using a stepwise regression. In this
model testing, independent variable in Step 1 was then followed by entering,
mediating variable in Step 2. An examination of multi co-linearity in the coefficients
table shows that the tolerance values for the relationship between the independent
variable (i.e. perceived service quality) and the dependent variable (i.e. customer
satisfaction) were 0.986., indicating the variables were not affected by multi co-
linearity problem. The outcomes of testing hypotheses in two Steps: Step 1 showed
that relationship between perceived value and perceived service quality are
significantly correlated with customer satisfaction (β=.306, p<0.001), therefore H1
supported.

Measuring Service Quality in Retail Banking Sector in Context of Gujarat:

(2012) (worded by Parmita Mehta): When compared with customers‘ expectations,
reliability dimension of service quality shows the highest shortfall considering all
banks together and the dimension of assurance shows the smallest gap. The type of
account is the demographic variable in the given context that could be used to profile
the two segments. Responsiveness is the most important dimension in influencing
overall quality perception, overall customer satisfaction, likelihood for
recommendation and loyalty intention. The tangible is the second most important
dimension in influencing the above constructs.

Determining the gap between customer Expectation and perception In retail

Banking: (2012) (worded by Ganesh P and Dr. R Nandagopal) The study
confirms that there is significant gap between the customers expected service and
perceived service level in retail banking across all service quality dimensions, which
leads to dissatisfaction and non-committal approach towards the service provider. A
customer is not just money in the cash register. He is a human being with feelings
and deserves to be treated with respect. Any business without a focus on customer
satisfaction is at the mercy of the market. Without loyal customers eventually a
competitor will satisfy those desires and your customer retention rate will decrease.

65
Customer perception on service quality in banking sector: with special
reference to Indian private banks in Moradabad region: (2012) (worded by
Vibhor Jain, Dr. Sonia Gupta, Smrita Jain) There is an urgent need for the
banking services to reaffirm themselves in view of the cutthroat competition, which is
close on the anvil. The banks shall have to reorient themselves in terms of the
customer service parameters to in still the concept of quality service in the mind of
the customer and therefore the growth. The reliability factor is a positive factor for
these banks. They should position themselves in the market on the basis of this
dimension and promote themselves aggressively. According to Reserve Bank of
India, the voluminous increase of 14,85,643 crores in the retail financing schemes of
the various banks indicates the varied needs of the customers, in which the private
sector banks have emerged as the significant players. The private sector banks like
HDFC & ICICI Bank have emerged as the leading bankers. It is more so due to the
fact that they have proven to be more responsive to the customers‘ needs. However,
in order to be more successful in the market, the private sector banks shall have to
be more innovative in terms of the product offers to the customers and compete
aggressively in the market. The other aspect however, which needs to be strategized
is the reliability. As indicated by the study, the private sector HDFC bank leads in
reliability when compared to the other private sector banks. Therefore, these banks
should make relevant strategies for gaining reliability.

Customer’s perception of service quality of State Bank of India-A Factor

Analysis: (2011) (Dr. Mrs. G. Santhiya valli) Service quality should be used as a
strategic tool to get a competitive advantage over the competitors. With the
increasing levels of globalization of the Indian banking industry, and adoption of
universal banks, the competition in the banking industry has intensified. Any where
‘and any time banking now become a reality .Recognition of service quality now acts
as a competitive weapon. Analysis of gap score reveals that in State Bank of India
Empathy ‘has maximum average score of 3.240 among other four dimensions. 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.
66
Service Quality Perception and Customers’ Satisfaction in Internet Banking
Service: Case Study of Public and Private Sector Banks: (2011) (Dr. Vijay M.
Kumbhar) In the modern banking service internet banking is one of the convenient
banking services. It provides wider benefits to the customers. All banks were not
providing quality internet banking services. Our study indicates that, overall service
quality and customer satisfaction in internet banking services is approximate same.
However, dimension wise service quality was differed by type of banks. The second
hypothesis of this study has been tested using correlation test. Here spearman‘s rho
non-parametric correlation test was performed to understand correlation between
each of service quality dimensions and overall customer satisfaction in Internet
banking. The present research evidence that most internet banking users were male
(81.2%), with an age group between 25 to 35 (34.7%), 36 to 50 years (34.8%),
graduates (49.5%), post graduates (41.1%), businessman (36.4%), employees
(31.6%). Income wise data shows that there most of users were belongs to middle
income group. About 56.45% users were from annual income group of Rs 3 to 8
lacks; 18.30% were from annual income group of more than 8 lacks and remaining
was from annual income of below than Rs.3 lacks. This data indicates that reject null
and accept alternative hypothesis -1 i.e. Alt: All type of customers are not using
internet banking services i.e. male and female; semiliterate and highly literate;
belongs to all professions; belongs to low and high income group.

Service Quality Attributes Affecting Customer Satisfaction in Banking Sector

of India: (2010) (worded by Uma Sankar Mishra, Jyoti Ranjan Das, Sanjib
Pattnaik, Ayasa Kanta Mohanty) Delivering superior service quality appears to be
a prerequisite for success of any service firms. As electronic banking becomes more
prevalent, now-a-days customers are evaluating banks based more on their high-tou
ch factors than on their ―high-tech‖ factors in most of the developing economy like
India. In this context, two proposed structural equation models (SEMs) show the
relationship between customer satisfaction on bank services and the attributes of the
perceived service quality. The proposed models identify service quality attributes to
improve, with the aim of offering bank services characterized by higher levels of
quality.

67
Analysis of service quality gap and customers ‘satisfaction in private banks:
(2010) (worded by Dr. S.P. Singh, Ms. Sunayna Khurana) The results of Gap 5
analyses showed that customers‘ perception for private banks in Hissar District was
lower than their expectations. In attributes like Bank staff giving customers best
interest at heart, Personal attention given , Friendliness and courtesy of Bank staff,
When My Bank promises to do something by a certain time, it will do so, Individual
attention given by Bank staff‖ ,the service quality gap were high (more than-1.00).
The bigger is the gap the greater the need to improve the level of service quality.
The study also found that male customers are dissatisfied with attributes like Bank
staff giving customers ‘best interest at heart, on the other side female share
dissatisfied with other attributes as Personal attention given by bank employees.
This means that banks have to give more importance to such attributes and must
take steps to reduce the service quality gap. The study noted that perception
&expectation of males & females related to 15 attributes of service quality are same.
The study also revealed that there is no significant difference between the
Satisfaction level of male & female customer related to Overall satisfaction, Personal
Contacts of bank employees and Quality of Banking Services. This means that bank
customers whether they are male or females are just satisfied with services of
private banks.

Service Quality Delivery and Its Impact on Customer Satisfaction in the

Banking Sector in Malaysia (2010) (worded by Jayaraman Munusamy, Shankar
Chelliah and Hor Wai Mun) undoubtedly, no business can exist without customers.
In the philosophical words of Peppers and Rogers the only value your company will
ever create is the value that comes from customers the ones you have now and the
ones you will have in the future. This is absolutely true. Customer value is an asset
to the organization. While quality service and merchandise are essential in today‘s
competitive market, it is equally important that a customer experiences the "Wow
Effect" that only superior customer service can deliver. A business that caters to their
customers need will inevitably gain the loyalty of their customers, thus resulting in
repeat business as well as potential referrals. Similarly, the other attributes, such as;
assurances, tangibles, empathy and responsiveness all have positive relationship
with customer satisfaction. Having a good recovery process for a dissatisfy customer
is a very important and necessary process for any service organization.
68
Banking Services and its barriee: (2007) worded by (Thorsten Beck, Asli
Demirguc-kunt and Maria Soleded Martinez Peria) This paper is the first effort to
systematically document the existence of barriers to banking services. Using surveys
of 193 banks in 58 countries, our data show significant variation in barriers to
banking across countries. Though not without limitations, we think this effort is
important in identifying and understanding the channels through which financial
exclusion works. Barriers like high minimum deposite valances, minimum loan
amounts and fees can lead to exclusion by making these products unaffordable for
large shares of the population. As a first attempt at capturing quantitative measures
of cross-country differences in barriers to banking along the dimensions of physical
access, affordability and eligibility, this paper is complementary to other efforts to
collect data on access to financial services at the aggregate, firm- and household
levels. We are still very much in the beginning of this work and richer data sources
and in-depth analysis are needed to improve our understanding of access and its
impact on economic outcomes.

Report for E-banking service and customer review: (2007) worded By

(Dr.Himani Sharma) Regarding bankers‘perspectives on e-banking activities of
customers, the study reveal that there is not much awareness in Indian customers
regarding use of e-banking services. But, the guidance and persuasion by bankers
does promote the use of such services amongst the customers. There is greater
incidence of e-banking usage amongst the middle age men (30 to 50 years of age);
and women customers use such service a much less frequently. Occupation-wise,
the professionals, followed by business class, make more use of e-banking services.
Bankers are satisfied regarding the retention rate and e-banking customers and they
are also satisfied with switch over rate of customer from traditional banking to e-
banking. Regarding impact of e-banking, the study indicates that e-banking helps in
improving the relationship between bankers and customer. The bankers expressed
confidence that such bonds would bring improvement in the overall performance of
banks. The willingness to use the e-banking is directly related to the frequency of
usage. There should be seminars/workshops/talks on the healthy usage of e-
banking, especially for those who are ATM or computer illiterates.

69
Measuring Service Quality: Study on private commercial Bank in India and
Bangladesh: (2002) worded By (Mohammad Mizenure Rahaman) The research
on measuring service quality has focused primarily on how to meet or exceed the
external customer‘s expectations, and has viewed service quality as a measure of
how the delivered service levels equalize consumer‘s expectations. This study
measuring service quality of SDCBs in Surat and even India mainly studied on client
expectation and perception about the
services on different five dimensions. There are several interesting conclusion and
research implications drawn from these results. One of the primary causes of service
quality design failure is the lack of understanding of the evolving need and
preferences of targeted customers.

Impact of Service Quality in Commercial Banks on the Customers

Satisfaction: An Empirical Study, (October 2011) worded By Dr. S. Fatima Holy
Ghost; Dr. M. Edwin Gnanadhas Service quality is important mainly in the
service business enterprises. Growth and development of the enterprise majorly
depends on the service quality. As service quality is the only way to satisfy
majority customers, enterprises concentrate more on the service quality today.
Quality in service is also interrelated to other behavioral outcomes of the customers.
The study understands the various customer perceptions about the service quality
factors like Assurance, Empathy, Responsiveness, Reliability and Tangibility in the
banking industry and the satisfaction level towards the banks. It also analyses the
impact of these service quality factors on the satisfaction level based on the
demographic differences. The study collects the perceptions about the various
service quality factors through purposive sampling method and analyses the
impact of the service quality factors. The data were collected on the basis of the
various demographics like, rural urban area, education standards, income level,
occupation difference, age groups etc. And finally, study concludes saying about
the existence of a close bond between the service quality factors and the
customer satisfaction level. And also it is found that the impact of the service
quality factors on customer satisfaction was varying with the demography of the
customers.

70
Effect of Service Quality On customer Satisfaction with Bank Nagari Main
Branch Padang, (November 2011) worded By Heryanto, Lecturer of the
University of Putra Indonesia, West Sumatra The objective of the study was
to understand the influence of service quality on customer satisfaction on the main
branch of Bank Nagari. The study focuses on how the influence of service quality
affects the satisfaction of the banking customers of the Bank Nagari, Padang.
The sample size taken for the study is 100 savings customers of the bank.
Data was collected from the population by accidental random sampling technique.
A simple Regression model is fitted to the data. The paper defines the various
dimensions of the service quality like Responsiveness, Reliability, Tangibility,
Assurance and Empathy. And the Customer satisfaction factors like Speed,
Accuracy, Safe, Suave, and Comfort. Service quality has 17 indicators and
Customer satisfaction has 12 indicators. The various indicators of both the service
quality and customer satisfaction are measured using the scores from the
questionnaire given to the sample population on a 5- Level Likert Scale. And
then the regression model was estimated using SPSS tool. From the analysis, the
study concludes that there is a significant relation between the service quality and
the customer satisfaction. And service quality is very important and consists of
actions like quick response, commitment, staff availability, right service fat right
time, complaint solution, competency and capability of the staff in the bank.

Measuring Service Quality in Retail Banking Sector in Context of Gujarat,

January (2012) worded By Parmita Mehta, Marwadi Education Foundation
Group of Institutions, Rajkot The main objective of the study is the measurement
the service quality in the banking sector. Segmentation of the customers based on
their perception about the high and low service quality factors and identifying the
relation between both, find the importance of various dimensions of service quality
and its influence on customer satisfaction. To understand the relationship between
the two segments of the customers, chi square was used. The study also defines
the various dimensions of service quality and uses regression analysis to
understand the relative importance between the dimensions. The report found that
the type of account held by the customer has more influence on the service
quality segments. Hence the study suggests that the type of account is a
significant demographic variable in measuring the service quality perception.

71
Multiple regression analysis was carried out to analyze the relative importance of
the various dimensions influencing the 1. Overall service quality 2. Overall
customer satisfaction 3. Loyalty intention 4. Likelihood of recommendation The
study concludes saying that reliability dimension has the highest shortfall and
assurance shows the lowest, when compared with customer expectations. And
also suggests that type of account is a significant variable in profiling the two
segments.

How do service quality perceptions contribute in satisfying Banking

Customers?, December (2011) worded By Prof. Dr. Muhammad Ehsan Malik,
Dean IBA, University of Punjab, Lahore (Pakistan). Basharat Naeem, Lecturer
at IBA, University of Punjab, Lahore (Pakistan). Zouna Arif, Student of MBA,
University of Punjab, Lahore (Pakistan). The title of the study itself defines the
objective, service quality perception s contribution in customer satisfaction. The
research hypothesis is that clients using retail banking services with favorable
perceptions of service quality dimensions will experience higher satisfaction. Data
collection was done from the banking customers from government, international and
privately held banks in Lahore, Pakistan. Service quality was assessed in both ways
based on Wang et al s and Parasuraman etal. The overall satisfaction was
measured using a 1-5 Likert Scale. Multiple regression analysis was carried out to
assess the survey responses. Descriptive statistics like mean mediation was
calculated for all dependent and independent variables. From the findings, the
study concludes that not all SERVQUAL dimensions have the role in boosting the
satisfaction level of the banking customers in context with Pakistan. Also says
assurance has higher contribution than reliability. The study has more
implications on the banking practioners in Pakistan. The study findings also support
the positive relationship of service quality with satisfaction as found by Dagger etal.
The study concludes that the relationship between service quality and satisfaction
varies because of the variability of the service quality dimensions.

72
The Key Determinants of Internet Banking service quality: A content Analysis,
July (2011) worded By Minjoon Jun, Associate Professor, New Mexico
State University, USA.ShaohanCai, Doctoral Candidate, New Mexico State
University, USA. The objective of the study is to understand the customer
perceptions on the internet service quality, the various dimensions associated with
the satisfaction. The study focuses on the various issues associated with the
internet banking service quality. The study identified 17 dimensions of service
quality, which are classified as Customer service quality, banking service product
quality, online systems quality. The various incidents happened with the customers
were content analyzed. The study discusses about the main four dimensions for
customer service quality as Access, Courtesy, Responsiveness and Reliability.
Critical Incident Technique (CIT) was used in the study to identify the key
indicators of the Internet banking Service Quality. Incidents were collected from
various organizations that access internet banking services for the day to day
process. The study identified the attributes for Customer service quality like
reliability, responsiveness, credibility, competence, courtesy, access,
communication, understanding the customer, collaboration & continuous
improvement based on focus group discussions. The last two attributes
collaboration and continuous improvement has been identified uniquely by the
authors of this paper. It briefly discusses about the attributes collaboration and
continuous improvement with case studies from the customer experiences. The
study concludes saying that; any initiative for quality should begin with
defining the customers. Identification and measurement of the customer
expectations will help banks in assessing their service quality.

73
 CHAPTER 4

RESEARCH
METHODOLOGY

74
4.1) Problem Statement

It is very first and most important step in the applied research process because
poorly defined problem will not generate useful results. Poorly defined problem
cause confusion and do not allow to develop a good Research Design. The selected
basic problem is to study, Analysis the difference between Services perceived and
service expectation of sutex bank account holder in surat city.

Many banks are far from the advantageous position because of scrawny ability to
identify the gaps between the Services perception and expectation of bank. If they are
not able to identify those gaps effectively any banks will not sustain in the stiff
competition.

It is very fact and practical that if Account Holders are not satisfied with what they
received from their bank representatives, grievance will increases and even negative
outcome will arise. So, this problem should deeply checked by doing research work
on it. If it has done so, than it will very beneficial to the account holders and even
management of the sutex bank. Hence, it should be very clear that the problem is to
analyze the gap between the service perception and account holders’ expectations.
A result of this analysis gives very clear idea to management of sutex bank regarding
the correct way and significance of the Bank services.

4.2) Objective of the study

Objective is divided in two parts, primary and secondary. It suggests the clear
objective of this project report.

1. Primary Objective
 To analyze the difference between service perceived and service expectation
of sutex bank account holder in surat city.

75
 2. Secondary Objective
 To study the customer satisfaction level of sutex bank.
 To analyze the impact of service quality and customer satisfaction of sutex
bank.
 To find the most important dimensions of service quality that affect
customer satisfaction of sutex bank.

4.3) Research Design

Descriptive Research:

Descriptive Research includes surveys and fact - finding enquiries of different kinds
of the major purpose of descriptive research is description of the state of affairs as it
exists at present. In social science and business research we quite often use the term
ex post facto research for description research studies.

We have used the descriptive research design for the purpose of survey.

4.4) Sampling
• Population

The population chosen for this study is sutex bank account holders who stay in surat
city as the research revolve around the service perception and service expectation of
sutex bank.

• Sample size

Using Yamane (1967) formula, a sample size of four hundred respondents were selected
from the population shown on the page that follows.

This sample size is supported by Amin (2005) that population size beyond a certain point
(about N=15,000), the population size is almost irrelevant and the sample size of 400 is
adequate.

Population Confidence level Sampling error

15000 95 0.05

76
 N
n=
1 + N(e)2

Where N = Population, e = expected error

ଵହ଴଴଴
n= ଵାଵହ଴଴଴(଴.଴ହ )ଶ
= 389.61 ≠ 400

For the purpose of this study 400 sample sizes has been taken of account Holders.

• Sampling techniques

For the purpose of this study, non probability sampling has been used. In non
probabilistic sampling technique, on the basis of the researcher’s convenience,
sample is selected which is consider as representative of the population. So in the
case on the basis of my convenient sample has been selected.

• Instrumentation technique

Most of the questions are close ended question in the questionnaire administered to
the respondents. The simple category likert scale and multiple response scale have
been used. Ranking scale has been wherever appropriate.

• Sample unit

In this research is conducting only for account holders Sutex bank.

4.5) Data collection

1. Primary Data
All the people from different profession were personally visited and interviewed. They
were being the main source of the primary data for this research. The method of
collection of primary data was direct personal interview through structured
questionnaire.

77
2. Secondary Data
It was collected from internal sources. The secondary data was collected on the
basis of sutex bank’s office file, official records, and newspapers. Also from
reference book of research and business statistic, magazine and last management
preserved information.

4.6) Tools for analysis

SERVQUAL Analysis
SERVQUAL is an instrument for measuring how customers perceive the quality of a
service. In the mid-1980s Berry and his colleagues Parasuraman and Zeithaml
began to investigate what determines service quality and how it is evaluated by
customers. As a result of their study they developed the SERVQUAL instrument for
measuring service quality, which initially included 10 service quality dimensions,
which were later reduced to the following five: tangibles, reliability, responsiveness,
assurance and empathy.

The instrument is based on the idea of the disconfirmation model, in other words on
the comparison of customers ‘expectations with their experiences from the service.
Usually, the five dimensions of the instrument ar e described through the use of 22
attributes a respondents are asked to state (on a seven- point scale from strongly
disagree to strongly agree) what they expected from the service and how they
perceived the service.

This instrument has been widely used by researchers, but still, there are some
controversies in its applicability across different service industries. In some studies
the five dimensions of the instrument (determinants) have been found to be unstable
across different types of services. Therefore, the SERVQUAL tool should be applied
very carefully and the set of determinants and attributes used should be adapted to
the specific situation.

In addition to this tool paired t-test, frequency charts, graphs will be used for data
analysis.

78
4.7) Limitation

• This is an academic effort and it is limited to cost, time and geographical area.

• An interpretation of this study is based on the assumption that respondents have

given correct information.

• The study is confined only to a small segment of the entire population due to
monetary and time constraints and hence the results are applicable only to the
city of surat city.

• Respondents may give biased answers for the required data. Some of the
respondents did not like to respond.

4.8) Significance of the Study:-

1. To the Reader:

Better Understand the quality of any bank’s services:

This report is very help full to the entire individual including the sutex’s account
holders is judge the any bank’s services though important criteria pot rat in this
report. Any individual can easily clears their opinions and dilemma of any bank’s
services.

2. To the Management of sutex:

Study will enable sutex to better understand their Account Holders:

A thorough survey and interpretation will provide deep insights into every account
holders’ expectations and the sutex will understand them in a much better way. sutex
can identify the grievance of their account holders and can improve sutex’s
drawbacks very easily to remove the prevailing grievance easily.

79
Study will allow sutex to design service method according to Account Holders’
requirements:
To study this report, sutex can do better management which favours to their account
Holders. The Study will helps to the management of sutex to improve the Service
standard as per all kind of account holders’ expectation. The Gap of Management
perception and account holders’ expectation will become low by implementing this
study.

3. To the researcher:

This project will clear the knowledge of various Bank services:

At the end of this project, my knowledge regarding bank services will increases and
even clear the banking service and methods.

It gives sufficient experience for conducting research methodology:

By completing the research on the mention dilemma, I as a fresh researcher can get
idea regarding how to do research. The methodology and important criterion been
known to me. This gives me better experience regarding the research and
implementation. In this way it helps me to upgrading the skills of research in myself.

80
 CHAPTER 5

DATA
COLLECTION
AND ANALYSIS

81
5.1) Type of Account :-
Table-5.1

Particular Frequency Percentage

saving account 270 67.5
current account 84 21
deposit account 27 6.75
loan account 19 4.75
total 400 100

FIGURE-5.1
300

250
FREQUENCY

200

150

100 Frequency

50

0
saving account current account deposit account loan account

TYPE OF ACCOUNT

Interpretation:

The above chart and table shows that,

Most of account holders are in the saving account and 21 % account

holder’s respondents are current account.
• 67.5% majority account holder’s respondents are saving account.
• 6.75% and 4.75% account holders respondents are deposit and loan.

82
5.2) Average Gap Score of Tangibles:-

Table-5.2

GAP
EXPECTATIONS PERCEPTIONS
SCORE
TANGIBLES E TANGIBLES P P-E
They should have up-to- Sutex Bank has up-to-
3.85 3.67 -0.18
date equipment. date equipment.
Their physical facilities Sutex Bank’s physical
should be visually 4.445 facilities are visually 3.8875 -0.5575
appealing. appealing.
Their employees should be Sutex Bank’s employees
well dressed and appear 4.92 are well dressed and 4.145 -0.775
neat. appear neat.
The appearance of the The appearance of the
physical facilities of these physical facilities of
firms should be in keeping 5.05 Sutex Bank is in keeping 3.765 -1.285
with the type of services with the type of services
provided. provided.
TOTAL 18.265 TOTAL 15.4675 -2.7975
AVERAGE GAP SCORE (TOTAL OF E-P/4) -0.69938

FIGURE-5.2

Tangibles
6
5
4
3
2
1
0
1 2 3 4

EXPECTATIONS PERCEPTIONS

83
Interpretation:

The above chart and table shows that,

Questions one to four refer to the tangibles dimension of service quality. The
dimension obtained an overall score of -0.699375. The expectations of the customers
are high in case of tangibles but the perceptions are low. The result indicates that
there should be requirement of improvements in the infrastructure and equipment.
Better working environment and better infrastructure are a need of the time.

5.3) Average Gap Score of Reliability:-

Table-5.3

GAP
EXPECTATIONS PERCEPTIONS
SCORE
RELIABILITY E RELIABILITY P P-E
When Sutex Bank
When these firms promise to
promises to do something
do something by a certain 3.81 4.18 0.37
by a certain time, it does
time, they should do so.
so.
When customers have When you have
problems, these firms should problems, Sutex Bank is
4.9025 4.385 -0.5175
be sympathetic and sympathetic and
reassuring. reassuring.
These firms should be Sutex Bank is
4.7175 4.78 0.0625
dependable. dependable.
They should provide their Sutex Bank provides its
services at the time they 3.715 services at the time it 4.7525 1.0375
promise to do so. promises to do so.
They should keep their Sutex Bank keeps its
3.6 4.5475 0.9475
records accurately. records accurately.
TOTAL 20.745 TOTAL 22.645 1.9
AVERAGE GAP SCORE (TOTAL OF E-P/4) 0.38

84
 FIGURE-5.3

Reliability
6
5
4
3
2
1
0
1 2 3 4 5

EXPECTATIONS PERCEPTIONS

Interpretation:

The above chart and table shows that,

Questions five to nine discuss about the reliability dimension. It has received an
average score of 0.38 is positive. There is no gap score among all the dimensions
related to reliability. That means no improvement in services related to reliability. In
question six gap score of -0.5175 that indicates a scope for improvement in related
problems sympathetic and reassuring.

5.4) Average Gap Score of Responsiveness:-

Table-5.4

GAP
EXPECTATIONS PERCEPTIONS
SCORE
RESPONSIVENESS E RESPONSIVENESS P P-E
They shouldn't be expected Sutex Bank does not tell
to tell customers exactly customers exactly when
4.8975 4.16 -0.7375
when services will be services will be
performed. performed.
It is not realistic for You do not receive
customers to expect prompt prompt service from
3.7 4.855 1.155
service from employees of Sutex Bank’s
these firms. employees.

85
Their employees don’t Employees of Sutex
always have to be willing to 3.88 Bank are not always 4.15 0.27
help customers. willing to help customers.
It is okay if they are too Employees of Sutex
busy to respond to Bank are too busy to
4.08 4.09 0.01
customer requests respond to customer
promptly. requests promptly.
TOTAL 16.5575 TOTAL 17.255 0.6975
AVERAGE GAP SCORE (TOTAL OF E-P/4) 0.17438

FIGURE-5.4

Responsiveness
6
5
4
3
2
1
0
1 2 3 4

EXPECTATIONS PERCEPTIONS

Interpretation:

The above chart and table shows that,

Questions 10 to 13 discuss about the responsiveness dimension. It has received an

average score of 0.17438 is positive. There is no gap score among all the
dimensions related to responsiveness. That means no improvement in services
related to responsiveness. In question 10 gap score of -0.7375 that indicates a
scope for improvement in related Bank does not tell customers exactly when
services will be performed.

86
5.5) Average Gap Score of Assurance:-

Table-5.5

GAP
EXPECTATIONS PERCEPTIONS
SCORE
ASSURANCE E ASSURANCE P P- E
Customers should be able You can trust
to trust employees of these 4.9175 employees of Sutex 4.1175 -0.8
firms. Bank.
Customers should be able
You feel safe in your
to feel safe in their
3.16 transactions with Sutex 4.1525 0.9925
transactions with these
Bank’s employees.
firms' employees.
Their employees should be Employees of Sutex
4.02 4.2425 0.2225
polite. Bank arc polite.
Their employees should Employees get
get adequate support from adequate support from
3.61 4.74 1.13
these firms to do their jobs Sutex Bank to do their
well. jobs well.
TOTAL 15.7075 TOTAL 17.2525 1.545
AVERAGE GAP SCORE (TOTAL OF E-P/4) 0.38625

FIGURE-5.5

Assurance
6
5
4
3
2
1
0
1 2 3 4

EXPECTATIONS PERCEPTIONS

87
Interpretation:

The above chart and table shows that,

Questions 14 to 17 discuss about the assurance dimension. It has received an

average score of 0.38625 is positive. There is no gap score among all the
dimensions related to assurance. That means no improvement in services related to
assurance. In question 14 gap score of -0.8 that indicates a scope for improvement
in related trust employees of Bank.

5.6) Average Gap Score of Empathy:-

Table-5.6

GAP
EXPECTATIONS PERCEPTIONS
SCORE
EMPATHY E EMPATHY P P-E
These firms should not be
Sutex Bank does not give
expected to give customers 4.76 4.26 -0.5
you individual attention.
individual attention.
Employees of these firms cannot Employees of Sutex Bank
3.182
be expected to give customers do not give you personal 4.08 0.8975
5
personal attention. attention.
It is unrealistic to expect Employees of Sutex Bank
employees to know what the 4.14 do not know what your 4.17 0.03
needs of their customers are. needs are.
It is unrealistic to expect these Sutex Bank does not have
firms to have their customers' best 3.565 your best interests at 4.285 0.72
interests at heart. heart.
They shouldn't be expected to Sutex Bank does not have
3.977
have operating hours convenient operating hours convenient 4.01 0.0325
5
to all their customers. to all their customers.
19.62 20.80
TOTAL TOTAL 1.18
5 5
AVERAGE GAP SCORE (TOTAL OF E-P/4) 0.236

88
 FIGURE-5.6

Empathy
5

0
1 2 3 4 5

EXPECTATIONS PERCEPTIONS

Interpretation:

The above chart and table shows that,

Questions 18 to 22 discuss about the empathy dimension. It has received an

average score of 0.236 is positive. There is no gap score among all the dimensions
related to empathy. That means no improvement in services related to empathy. In
question 15 gap score of -0.8 that indicates a scope for improvement in related does
not be expected to give customers individual attention.

5.7) Un-Weighted Score:-

Table-5.7

No. CATEGORIES GAP SCORE

1. Average gap score for Tangible -0.699375
2. Average gap score for Reliability 0.38
3. Average gap score for Responsiveness 0.17438
4. Average gap score for Assurance 0.38625
5. Average gap score for Empathy 0.236
TOTAL 0.47726
UN-WEIGHTED SCORE [AVERAGE (TOTAL/5)] 0.09545

89
 FIGURE-5.7

Average gap score

0.6
RESPONDENTS SCORE

0.4
0.2
0
-0.2 Tangible Reliability Responsiveness Assurance Empathy
-0.4
-0.6
-0.8
DIMENSIONS

Interpretation:

The above chart and table shows that,

The average gap for tangible dimensions is negative (-0.699375) that indicates a
scope for improvement, and for the other four (Reliability, Responsiveness,
Assurance and Empathy) is positive that indicates not improvement it means that
services provide better. The UNWEIGHTED Average SERVQUAL SCORE (0.09545)
is positive. This means the services offered by the bank were up to expectations
respondents in terms of Reliability, responsiveness, assurance and empathy.

5.8) Assigning Weights:-

Table-5.8

No. DIMENSIONS WEIGHTS

The appearance of the banks physical facilities, equipment,
1. 19.4875
personnel, and communication materials.
The bank’s ability to perform the promised service dependably
2. 20.0125
and accurately.
The bank's willingness to help customers and provide prompt
3. 20.9
service.
The knowledge and courtesy of the bank's employees and their
4. 19.75
ability to convey trust and confidence.
5. The caring, individual attention the bank provides its customers. 19.85
TOTAL 100

90
Interpretation:

The above chart and table shows that,

As regarding the results data bank features you appreciate most respondents, we
observe a very high close rates recorded. However of the 5 features that stand out
on the bank's willingness to help customers and provide prompt service, while the
appearance of utilities, equipment, staff and the bank's promotional materials do not
reach a level of 19.4875% than the prospect of surveyed.

5.9) Weighted Score:-

Table-5.9

WEIGHTS SCORE
UN-WEIGHTED = (UN-WEIGHTED
DIMENSIONS WEIGHTS
SCORE SCORE *
WEIGHTS)
Tangible -0.699375 0.194875 -0.13629
Reliability 0.38 0.200125 0.076048
Responsiveness 0.17438 0.209 0.036445
Assurance 0.38625 0.1975 0.076284
Empathy 0.236 0.1985 0.046846
TOTAL WEIGHTS SCORE 0.099333

Interpretation:

The above chart and table shows that,

The weighted score value which took into account the weights attached to the five
dimensions indicates that there is shortfall in tangibility dimension (-0.13629) that
indicates a scope for improvement and there is no short fall in other reliability,
responsive, assurance, empathy. Overall weights score 0.093326 is positive that that
indicate that good services provided in sutex bank.

91
5.10) AVERAGE MEANS SCORE:-
Table-5.10

Dimensions Expectation Perception

Tangibles 4.56625 3.866875
Reliability 4.149 4.529
Responsiveness 4.139375 4.31375
Assurance 3.926875 4.313125
Empathy 3.925 4.161

FIGURE-5.8

AVERAGE MEAN SCORE

4.8
RESPONDENTS SCORE

4.6
4.4
4.2
4
3.8
3.6 Expectation
3.4
Perception

DIMENSIONS

Interpretation:

The above chart and table shows that there is a negative gap between expectation
and perception score of tangibility and positive gap between expectation and
perception score of reliability, responsiveness, assurance, empathy.

92
 5.11) Paired Samples Statistics:-
Table-5.11

Std.
Std.
No. Dimensions Mean N Error
Deviation
Mean
E1. They should have up-to-date equipment. 3.85 400 1.79738 0.08987
Pair 1
P1. Sutex Bank has up-to-date equipment. 3.67 400 1.84652 0.09233
E2. Their physical facilities should be
4.445 400 1.71737 0.08587
visually appealing.
Pair 2
P2. Sutex Bank’s physical facilities are
3.8875 400 1.78264 0.08913
visually appealing.
E3. Their employees should be well dressed
4.92 400 1.48968 0.07448
Pair 3 and appear neat.
P3. Sutex Bank’s employees are well
4.145 400 1.68852 0.08443
dressed and appear neat.
E4. The appearance of the physical facilities
of these firms should be in keeping with the 5.05 400 1.45699 0.07285
Pair 4 type of services provided.
P4. The appearance of the physical facilities
of Sutex Bank is in keeping with the type of 3.765 400 1.70501 0.08525
services provided.
E5. When these firms promise to do
something by a certain time, they should do 3.81 400 1.81166 0.09058
Pair 5
so.
P5. When Sutex Bank promises to do
4.18 400 1.6747 0.08373
something by a certain time, it does so.
E6. When customers have problems, these
4.9025 400 1.49452 0.07473
Pair 6 firms should be sympathetic and reassuring.
P6. When you have problems, Sutex Bank
4.385 400 1.40239 0.07012
is sympathetic and reassuring.

Pair 7 E7. These firms should be dependable. 4.7175 400 1.6122 0.08061

P7. Sutex Bank is dependable. 4.78 400 1.24719 0.06236

93
 E8. They should provide their services at the
3.715 400 1.80885 0.09044
Pair 8 time they promise to do so.
P8. Sutex Bank provides its services at the
4.7525 400 1.50229 0.07511
time it promises to do so.
E9. They should keep their records
3.6 400 1.88916 0.09446
Pair 9 accurately.
P9. Sutex Bank keeps its records
4.5475 400 1.50279 0.07514
accurately.
E10. They shouldn't be expected to tell
Pair customers exactly when services will be 4.8975 400 1.4992 0.07496
10 performed.
P10. Sutex Bank does not tell customers
4.16 400 1.50335 0.07517
exactly when services will be performed.
E11. It is not realistic for customers to
Pair expect prompt service from employees of 3.7 400 1.82024 0.09101
11 these firms.
P11. You do not receive prompt service
4.855 400 1.1948 0.05974
from Sutex Bank’s employees.
E12. It is okay if they are too busy to
Pair 3.88 400 1.82041 0.09102
respond to customer requests promptly.
12
P12. Employees of Sutex Bank are not
4.15 400 1.63529 0.08176
always willing to help customers.
E13. It is okay if they are too busy to
Pair 4.08 400 1.7439 0.0872
respond to customer requests promptly.
13
P13. Employees of Sutex Bank are too busy
4.09 400 1.74485 0.08724
to respond to customer requests promptly.
E14. Customers should be able to trust
Pair 4.9175 400 1.49038 0.07452
employees of these firms.
14
P14. You can trust employees of Sutex
4.1175 400 1.46938 0.07347
Bank.
Pair E15. Customers should be able to feel safe
15 in their transactions with these firms' 3.16 400 1.66774 0.08339
employees.

94
 P15. You feel safe in your transactions with
4.1525 400 1.49326 0.07466
Sutex Bank’s employees.
Pair E16. Their employees should be polite. 4.02 400 1.79657 0.08983
16
P16. Employees of Sutex Bank arc polite. 4.2425 400 1.50977 0.07549

E17. Their employees should get adequate

Pair support from these firms to do their jobs 3.61 400 1.89919 0.09496
17 well.
P17. Employees get adequate support from
4.74 400 1.52256 0.07613
Sutex Bank to do their jobs well.
E18. These firms should not be expected to
Pair 4.76 400 1.65809 0.0829
give customers individual attention.
18
P18. Sutex Bank does not give you
4.26 400 1.59334 0.07967
individual attention.
E19. Employees of these firms cannot be
Pair expected to give customers personal 3.1825 400 1.67517 0.08376
19 attention.
P19. Employees of Sutex Bank do not give
4.08 400 1.59686 0.07984
you personal attention.
E20. It is unrealistic to expect employees to
Pair 4.14 400 1.72274 0.08614
know what the needs of their customers are.
20
P20. Employees of Sutex Bank do not know
4.17 400 1.57712 0.07886
what your needs are.
E21. It is unrealistic to expect these firms to
Pair 3.565 400 1.87605 0.0938
have their customers' best interests at heart.
21
P21. Sutex Bank does not have your best
4.285 400 1.59378 0.07969
interests at heart.
E22. They shouldn't be expected to have
Pair operating hours convenient to all their 3.9775 400 1.80836 0.09042
22 customers.
P22. Sutex Bank does not have operating
4.01 400 1.7313 0.08656
hours convenient to all their customers.

95
 5.12) Paired Samples Test:-
Table-5.12

Paired Differences

95% Confidence Sig.

Pair no. Std. Std. Interval of the t df (2-
Mean Deviati Error Difference tailed)
on Mean
Lower Upper

Pair T1 E1-P1 0.18 2.42017 0.12101 -0.05789 0.41789 1.487 399 0.138

Pair 2 E2-P2 0.5575 2.54615 0.12731 0.30722 0.80778 4.379 399 0.000

Pair 3 E3-P3 0.775 2.29402 0.1147 0.54951 1.00049 6.757 399 0.000

Pair 4 E4-P4 1.285 2.12014 0.10601 1.0766 1.4934 12.122 399 0.000

Pair 5 E5-P5 -0.37 2.56409 0.1282 -0.62204 -0.11796 -2.886 399 0.004

Pair 6 E6-P6 0.5175 2.05676 0.10284 0.31533 0.71967 5.032 399 0.000

Pair 7 E7-P7 -0.0625 1.95657 0.09783 -0.25482 0.12982 -0.639 399 0.523

Pair 8 E8-P8 -1.0375 2.28345 0.11417 -1.26195 -0.81305 -9.087 399 0.000

Pair 9 E9-P9 -0.9475 2.54577 0.12729 -1.19774 -0.69726 -7.444 399 0.000

Pair 10 E10-P10 0.7375 2.05527 0.10276 0.53547 0.93953 7.177 399 0.000

Pair 11 E11-P11 -1.155 2.22223 0.11111 -1.37344 -0.93656 -10.395 399 0.000

Pair 12 E12-P12 -0.27 2.12801 0.1064 -0.47918 -0.06082 -2.538 399 0.012

Pair 13 E13-P13 -0.01 2.51709 0.12585 -0.25742 0.23742 -0.079 399 0.937

Pair 14 E14-P14 0.8 2.06049 0.10302 0.59746 1.00254 7.765 399 0.000

Pair 15 E15-P15 -0.9925 2.27164 0.11358 -1.21579 -0.76921 -8.738 399 0.000

Pair 16 E16-P16 -0.2225 2.29481 0.11474 -0.44807 0.00307 -1.939 399 0.053

Pair 17 E17-P17 -1.13 2.36264 0.11813 -1.36224 -0.89776 -9.566 399 0.000

Pair 18 E18-P18 0.5 2.35028 0.11751 0.26898 0.73102 4.255 399 0.000

Pair 19 E19-P19 -0.8975 2.29459 0.11473 -1.12305 -0.67195 -7.823 399 0.000

Pair 20 E20-P20 -0.03 2.32866 0.11643 -0.2589 0.1989 -0.258 399 0.797

Pair 21 E21-P21 -0.72 2.60837 0.13042 -0.97639 -0.46361 -5.521 399 0.000

Pair 22 E22-P22 -0.0325 2.43953 0.12198 -0.2723 0.2073 -0.266 399 0.79

96
• Null Hypothesis (Ho) = There is no significant difference between mean score
of account holder’s expectation and account holder’s perception.
• Alternative Hypothesis (Ha) = There is significant difference between mean
score of account holder’s expectation and account holder’s perception
• Significant Level: 95%

Interpretation:

• The above chart and table shows that,

• It has been founded by the study Paired 1, Paired 7, Paired 13, Paired 20,
Paired 22 that value of t-statistic with associated significant value, which is
more than 0.05. Therefore, we reject alternative hypothesis and can say that
there is no significant difference between mean score of account holder’s
expectation and account holder’s perception.

• And other remain paired are founded by the study that value of t-statistic with
associated significant value, which is less than 0.05. Therefore, we reject null
hypothesis and can say that there is significant difference between mean
score of account holder’s expectation and account holder’s perception.

97
5.13) Branch Facility:-

Table-5.13

PERCENTAGE
PARTICULAR Total
Very Satisfied Neutral Dis- Very Dis-
Satisfied satisfied satisfied
Clean & well cared 168 120 56 40 16 400
facilities
Efficient, no wait 69 92 41 125 73 400
service

No long line ups at 68 92 40 124 76 400

counter

Availability of 140 148 52 32 28 400

information
brochures

Pleasant & attractive 208 124 24 24 20 400

decor

Automatic bank 32 72 56 132 108 400

machines in
convenient locations

Friendly and 180 96 36 64 24 400

courteous manner

Knowledge of bank's 68 92 40 124 76 400

products & Services

Willingness to listen 200 120 24 32 24 400

and respond to your
need

Recognition of you 132 105 45 38 80 400

as valued customer
Professional and 78 45 107 122 48 400
attractive
appearance

98
 FIGURE-5.9

Professional and attractive appearance

Recognition of you as valued customer

Willingness to listen and respond to

your need

Knowledge of bank's products &

Services

Friendly and courteous manner

branch facility

Very Dissatisfied
Automatic bank machines in convenient
locations Dissatisfied
Neutral
Satisfied
Pleasant & attractive decor
Very Satisfied

Availability of information brochures

No long line ups at counter

Efficient, no wait service

Clean & well cared facilities

0 50 100 150 200 250

RESPONDENTS

99
Interpretation:

The above chart and table shows that,

• Clean & well cared facilities :

42% of majority account holder’s respondents are very satisfied in Clean &
well cared facilities. And 4% of account holder’s respondents are very
dissatisfied in Clean & well cared facilities.

• Efficient, no wait service :

31.25 % of majority account holder’s respondents are dissatisfied in Efficient,
no wait service. And 10.25 % of account holder’s respondents are Neutral in
Efficient, no wait service.

• No long line ups at counter :

31 % of majority account holder’s respondents are dissatisfied in No long line
ups at counter. And 10 % of account holder’s respondents are Neutral in No
long line ups at counter

• Availability of information brochures :

37% of majority account holder’s respondents are satisfied in Availability of
information brochures. And 13% of account holder’s respondents are very
dissatisfied in Availability of information brochures.

• Pleasant & attractive décor :

52% of majority account holders respondents are very satisfy in Pleasant &
attractive décor. And 5% of account holders respondents are very dissatisfied
in Pleasant & attractive décor.

• Automatic bank machines in convenient locations :

27% of majority account holder’s respondents are very dissatisfied in
Automatic bank machines in convenient locations. And 8% of account holder’s
respondents are very satisfied in Automatic bank machines in convenient
locations.

100
• Friendly and courteous manner :
45% of majority account holder’s respondents are very satisfy in Friendly and
courteous manner. And 6% of account holder’s respondents are very
dissatisfied in Friendly and courteous manner.

• Knowledge of bank's products & Services :

31% of majority account holder’s respondents are dissatisfied in Knowledge of
bank's products & Services. And 10% of account holder’s respondents are
Neutral in Knowledge of bank's products & Services.

• Willingness to listen and respond to your need :

50% of majority account holders respondents are very satisfy in Willingness to
listen and respond to your need. And 6% of account holder’s respondents are
dissatisfied in Willingness to listen and respond to your need.

• Recognition of you as valued customer :

33% of majority account holders respondents are very satisfy in Recognition
of you as valued customer. And 9.5% of account holder’s respondents are
dissatisfied in Recognition of you as valued customer.

• Professional and attractive appearance :

30.5% of majority account holder’s respondents are dissatisfied in
Professional and attractive appearance. And 11.25% of account holder’s
respondents are satisfied in Professional and attractive appearance.

101
5.14) MARITAL STATUS :-
Table-5.14

Particular Frequency Percentage

Unmarried 244 61
married 156 39
Total 400 100

FIGURE-5.10

MARITAL STATUS

39%
Unmarried
married
61%

Interpretation:

The above chart and table shows that,

Most of account holders are unmarried. And the least percentage of the
respondents is married.
• 61% majority account holder’s respondents are unmarried.
• 39% least account holder’s respondents are married.

102
5.15) INCOME LEVEL :-
Table-5.15

Particular Frequency Percentage

<2 227 56.75
2 to 5 100 25
6 to 10 49 12.25
>10 24 6
Total 400 100

FIGURE-5.11
60

50

40
PERCENTAGE

30

20

10

0
<2 2 to 5 6 to 10 >10
INCOME LEVEL

Interpretation:

The above chart and table shows that,

Most of account holders income level less than 2 lacks. And the least
percentage of the respondent’s income level more than 10 lacks. 25% and 12.25%
account holders respondents income level 2 to5 lacks and 6 to10 lacks.

• 56.75% majority account holder’s respondents income level less than 2 lacks.
• 6% least account holder’s respondents income level more than 10 lacks.

103
5.16) EDUCATION :-
Table-5.16

Particular Frequency Percentage

Undergraduate 244 61
Graduate 116 29
Post Graduate 40 10

Total 400 100

FIGURE-5.12
70

60

50
PERCENTAGE

40

30

20

10

0
Undergraduate Graduate Post Graduate
EDUCATION

Interpretation:

The above chart and table shows that,

Most of account holders are Undergraduate. And the least percentage of

the respondents is Post Graduate. 29% account holders respondents are Graduate.

• 61% majority account holders’ respondents are Undergraduate.

• 10% least account holders respondents are Post Graduate.

104
5.17) AGE :-
Table-5.17

Particular Frequency Percentage

21 to 30 165 41.25
31 to 40 67 16.75
41 to 50 64 16

Above 50 104 26
Total 400 100

FIGURE-5.13

AGE

26% 21 to 30
41.25%
31 to 40
41 to 50
16% Above 50

16.75%

Interpretation:

The above chart and table shows that,

Most of account holder’s age is 21 to 30. And the least percentage of the
respondent’s age is 31 to 40 and 41 to 50. 26% account holders respondents are
Above 50 age.
• 41.25% majority account holder’s respondent’s age is 21 to 30.
• 16.75% and 16% least account holder’s respondent’s age is 31 to 40 and 41 to
50.

105
5.18) GENDER :-
Table-5.18

Particular Frequency Percentage

MALE 362 90.5
FEMALE 38 9.5
Total 400 100

FIGURE-5.14

GENDER

MALE
FEMALE

Interpretation:

The above chart and table shows that,

Most of account holders are Male. And the least percentage of the
respondents is Female.

• 90.5% majority account holders respondents are Male.

• 9.5% least account holders respondents are Female.

106
5.19) OCCUPATION :-
Table-5.19

Particular Frequency Percentage

Professional 115 28.75

Employed 115 28.75

Businessmen 94 23.5

Student 47 11.75
Retired 19 4.75
Homemaker 10 2.5

Total 400 100

FIGURE-5.15
140
120
100
FREQUENCY

80
60
40
20
0

OCCUPATION

Interpretation:

The above chart and table shows that,

Most of account holders are working in the Professional and Employed.

And the least percentage of the respondents is working in Homemaker. 23.5%
account holders respondents are Businessmen and 11.75% and 4.75% account
holders respondents are Student and Retired.
• 28.75% majority account holder’s respondents are working in Professional
and Employed.
• 2.5% least account holders respondents are working in Homemaker.

107
CHAPTER 6

FINDINGS

108
 FINDING

• The study found that 61% account holder’s are Undergraduate and 10% least
account holders are Post Graduate.

• 61% majority account holder’s are unmarried and 39% least account holder’s
are married.

• 56.75% majority account holder’s income level less than 2 lacks and 6% least
account holder’s income level more than 10 lacks.

• 41.25% majority account holder’s age is 21 to 30 and 16.75% and 16% least
account holder’s age is 31 to 40 and 41 to 50.

• 90.5% majority account holder’s are Male and 9.5% least account holders are
Female.

• 28.75% majority account holder’s are working in Professional and Employed

and 2.5% least account holders are working in Homemaker.

• 67.5% majority account holder’s are saving account and 6.75% and 4.75%
least account holders are deposit and loan.

• Tangible dimensions overall score is -0.699375. It is suggested that

expectations of the customers are high in case of tangible dimension but the
perceptions are very low.

• Reliability dimensions overall score is 0.38 is positive; there is no gap score

among all the dimensions.

109
• Responsiveness dimensions has received an average score is 0.17438 is
positive. There is no gap score among all the dimensions related to
responsiveness.

• Assurance dimensions has received an average score is 0.38625 is positive.

There is no gap score among all the dimensions related to assurance.

• Empathy dimension has received an average score is 0.236 is positive. There

is no gap score among all the dimensions related to empathy.

• Un-weighted Average Servqual Score (0.09545) is positive. This means the

services offered by the bank were up to expectation.

• Overall weights score 0.093326 is positive that indicate good services

provided in sutex bank.

• Branch Facility in that Clean & well cared facilities, Availability of information
brochures, Pleasant & attractive decor, Friendly and courteous manner,
Willingness to listen and respond to your need, Recognition of you as valued
customer; all factors in respondents are very satisfied.

• Branch Facility in that Efficient, no wait service, Automatic bank machines in

convenient locations, No long line ups at counter, Knowledge of bank's
products & Services, Professional and attractive appearance; all factors in
respondents are dissatisfied.

110
 CHAPTER 7

CONCLUSION

111
 CONCLUSION

The study conducted to compare the perceptions and expectations of Sutex Bank
Account holders in Surat City, in that hypothesis analysis indicate that there is no
significant difference between mean score of account holder’s expectation and
account holder’s perception score except tangibility. Determination of the gaps
between perceptions and expectations shows that the services have been met their
expectations. The biggest gap between the service quality dimensions belongs to
Tangible dimension, which means that; there is scope of improvement and there is
no gap in Reliability dimension, Responsiveness dimension, Assurance dimension
and Empathy dimension. Analysis of gap score reveals that ‘Assurance’ has
maximum average score for Sutex Bank Account holders in Surat City.

112
 CHAPTER 8

RECOMMENDATION

113
 RECOMMENDATION

The following recommendations are based on the customer’s response which may
be considered by sutex bank.

• The sutex Cooperative Bank should develop those tools that will facilitate
service quality of the bank and result in more satisfaction of customers.
• The bank should increasing ATM machines in every branch and provides
Knowledge of bank's products & Services.

• The bank should improve in tangibility aspect that is up-to-date equipment,

physical aspects in visually appealing and well dressed and appear neat.

• Reliability is the main concern to improvement while customers have

problems at that time bank should be sympathetic and reassuring.

• The bank should focus on increasing its responsiveness towards customers in

bank shouldn't be expected to tell customers exactly when services will be
performed.

• The bank Assurance aspects needs to improvement that is Customers should

be able to trust employees of this bank.

• The bank should imply Empathic view towards Customers individual attention.

114
BIBLIOGRAPHY

115
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<http://www.dss.dpem.tuc.gr/pdf/Customer%20satisfaction%20measurement%>.

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<http://www.theglobaljournals.com/ijar/file.php?val=July_2013_1372685389_7f787_109.pdf>
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116
• kotler, philip. marketing management. pearson, 2011.

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238, 246.

• Rubin, Richard L Levin / David. "Business for Management." Rubin, Richard L Levin /
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2010. 162 to 219.

117
ANNEXURE

118
 QUESTIONNAIRE
1. Which type of account do you have in the bank?

□ Savings account □ Current account

□ Deposit account □ Loan account

2. This survey deals with your opinions of Sutex Banks. Please show the extent to which you
think Sutex Banks should posses the following features. Do this by picking one of the
seven numbers next to each statement. If you strongly agree that these firms should
possess a feature, circle the number 7. If you strongly disagree that these firms should
possess a feature, circle 1. If your feelings are not strong, circle one of the numbers in the
middle. What we are interested in here is a number that best shows your expectations and
perception about institutions offering Sutex Bank services:
NO. FEATURES EXPECTATIONS
1 They should have up-to-date equipment. 1 2 3 4 5 6 7
2 Their physical facilities should be visually appealing. 1 2 3 4 5 6 7
3 Their employees should be well dressed and appear neat. 1 2 3 4 5 6 7
4 The appearance of the physical facilities of these firms should be in keeping
1 2 3 4 5 6 7
with the type of services provided.
5 When these firms promise to do something by a certain time, they should do
1 2 3 4 5 6 7
so.
6 When customers have problems, these firms should be sympathetic and
1 2 3 4 5 6 7
reassuring.
7 These firms should be dependable. 1 2 3 4 5 6 7
8 They should provide their services at the time they promise to do so. 1 2 3 4 5 6 7
9 They should keep their records accurately. 1 2 3 4 5 6 7
10 They shouldn't be expected to tell customers exactly when services will be
1 2 3 4 5 6 7
performed..
11 It is not realistic for customers to expect prompt service from employees of
1 2 3 4 5 6 7
these firms.
12 It is okay if they are too busy to respond to customer requests promptly. 1 2 3 4 5 6 7
13 It is okay if they are too busy to respond to customer requests promptly. 1 2 3 4 5 6 7
14 Customers should be able to trust employees of these firms. 1 2 3 4 5 6 7
15 Customers should be able to feel safe in their transactions with these firms'
1 2 3 4 5 6 7
employees.
16 Their employees should be polite. 1 2 3 4 5 6 7
17 Their employees should get adequate support from these firms to do their
1 2 3 4 5 6 7
jobs well.
18 These firms should not be expected to give customers individual attention. 1 2 3 4 5 6 7
19 Employees of these firms cannot be expected to give customers personal
1 2 3 4 5 6 7
attention.
20 It is unrealistic to expect employees to know what the needs of their
1 2 3 4 5 6 7
customers are.
21 It is unrealistic to expect these firms to have their customers' best interests at
1 2 3 4 5 6 7
heart.
They shoudn't
22 be expected to have operating hours convenient to all their customers. 1 2 3 4 5 6 7

119
 3. The following statements relate to your feelings about the particular Sutex bank you
chose. Please show the extent to which you believe Sutex bank has the feature
described in the statement. Do this by picking one of the seven numbers next to
each statement. If you strongly agree that these firms should possess a feature,
circle the number 7. If you strongly disagree that these firms should possess a
feature, circle 1. If your feelings are not strong, circle one of the numbers in the
middle. Here, we are interested in a number that shows your perceptions about
Sutex bank:

NO. FEATURES PERCEPTIONS

1 Sutex Bank has up-to-date equipment. 1 2 3 4 5 6 7
2 Sutex Bank’s physical facilities are visually appealing. 1 2 3 4 5 6 7
3 Sutex Bank’s employees are well dressed and appear neat. 1 2 3 4 5 6 7
4 The appearance of the physical facilities of Sutex Bank is in keeping with
1 2 3 4 5 6 7
the type of services provided.
5 When Sutex Bank promises to do something by a certain time, it does so. 1 2 3 4 5 6 7
6 When you have problems, Sutex Bank is sympathetic and reassuring. 1 2 3 4 5 6 7
7 Sutex Bank is dependable. 1 2 3 4 5 6 7
8 Sutex Bank provides its services at the time it promises to do so. 1 2 3 4 5 6 7
9 Sutex Bank keeps its records accurately. 1 2 3 4 5 6 7
10 Sutex Bank does not tell customers exactly when services will be
1 2 3 4 5 6 7
performed.
11 You do not receive prompt service from Sutex Bank’s employees. 1 2 3 4 5 6 7
12 Employees of Sutex Bank are not always willing to help customers. 1 2 3 4 5 6 7
13 Employees of Sutex Bank are too busy to respond to customer requests
1 2 3 4 5 6 7
promptly.
14 You can trust employees of Sutex Bank. 1 2 3 4 5 6 7
15 You feel safe in your transactions with Sutex Bank’s employees. 1 2 3 4 5 6 7
16 Employees of Sutex Bank arc polite. 1 2 3 4 5 6 7
17 Employees get adequate support from Sutex Bank to do their jobs well. 1 2 3 4 5 6 7
18 Sutex Bank does not give you individual attention. 1 2 3 4 5 6 7
19 Employees of Sutex Bank do not give you personal attention. 1 2 3 4 5 6 7
20 Employees of Sutex Bank do not know what your needs are. 1 2 3 4 5 6 7
21 Sutex Bank does not have your best interests at heart. 1 2 3 4 5 6 7
22 Sutex Bank does not have operating hours convenient to all their
1 2 3 4 5 6 7
customers.

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 4. Listed below are five features pertaining to Sutex banks and the services they offer.
We would like to know how much each of these features is important to the
customer. Please allocate 100 points among the five features according to how
important it is to you. Make sure the points add up to 100.

FEATURES POINT
1. The appearance of the Sutex banks physical facilities, equipment, personnel, and communication materials.
2. The Sutex bank’s ability to perform the promised service dependably and accurately.
3. The Sutex bank's willingness to help customers and provide prompt service.
4. The knowledge and courtesy of the Sutex bank's employees and their ability to convey trust and confidence.
5. The caring, individual attention the Sutex bank provides its customers.
TOTAL 100

5. How satisfied are you with the following aspects of the branch facility?
Particular Very Satisfied Neutral Dissatisfied Very
Satisfied Dissatisfied
Clean & well cared facilities
Efficient, no wait service
No long line ups at counter
Availability of information brochures
Pleasant & attractive decor
Automatic bank machines in convenient locations
Friendly and courteous manner
Knowledge of bank's products & Services
Willingness to listen and respond to your need
Recognition of you as valued customer
Professional and attractive appearance

PERSONAL INFORMATION

NAME: -

AGE: - □ 21 to 30 □ 41 to 50
□ 31 to 40 □ Above 50
OCCUPATION: - □ Professional □ Employed
□ Businessmen □ Student
□ Retired □ Homemaker

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GENDER: - □ Male
□ Female

INCOME LEVEL (LACS):- □ <2 □ 6 to 10

□ 2 to 5 □ >10

MARITAL STATUS: - □ Unmarried

□ Married

EDUCATION: - □ Undergraduate
□ Graduate
□ Post Graduate

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