CHAPTER I

INTRODUCTION

1.1 Background of the Study

It is very hard to collect the correct information of the origin of bank. The world "Bank" has
derived from the Italian word "Banco" which means accumulation of money of stock. It is
believed that its origin is from the French word "Banque" which means "beach" for keeping,
lending and exchanging of money or coin in the market place by money lenders or money
changers. It is believed that the ancestors of modern banking system were merchants, goldsmiths
and moneylenders. Modern banking sowed its seed in the medieval Italy despite strong Christian
prohibition against charging interest. The bank had started in Italy in 12th century as a public
bank. The bank of Venice that was established in 1158 A.D. was the first bank in the history of
banking. Following its establishment various bank such as Bank of Barcelona, which was
established in 1401 A.D. was the second bank of the world. Similarly, Bank of Geneva (1407),
Bank of Amsterdam (1609), and Bank of Hindustan (1770) were established. The first
commercial bank was the "Bank of England" which was established in 1844 A.D.
1.2 Profile of Janata Bank Nepal Limited
Janata Bank Nepal Limited is the 27th commercial bank established under the Bank & Financial
Institution Act, 2063. The bank's corporate office is located at Central Business Park, Thapathali,
Kathmandu. Currently, the bank is operating with 135 branches, 3 extension counters, 1 Limited
Branch Outlet (LBO), 103 ATM's and 50 Branchless Banking Outlets and will gradually expand
its branch network to provide its service all over the country. With large numbers of promoters,
the bank was the first licensed commercial bank with initial paid-up capital of NPR 2,000
Million and currently the Bank has paid up capital of NPR 8,000 Million. The bank profiles are:
Vision
To become the preferred bank for all stakeholders
Mission
Create greater financial outreach, contribute to nation's prosperity with highest level of risk
management and governance.
Goals
Phygital, Onboarding, Service Excellence, Vigilance, Granularity, Learning Organization,
Branding
Values
CRIPA as in customer Centricity, Reliability, Integrity, Passion, Accountability
Table 1
Capital Structure of Janata Bank Nepal Ltd
Authorized Capital 10,000 Millions
Issued Capital 8,000.78 Millions.
Paid Up Capital 8,000.78 Millions
Ownership Pattern of Janata bank
Janata Bank Nepal Limited with an authorized Capital NPR 10 billion and Issued and Paid up
Capital 8.07 billion. The Bank has over 70 thousand public shareholder of which 1300 are
promoter shareholders. The promoters represent different walks of life of the society, including
business personnel, society activists, intellectuals etc. The ownership structure of the bank is as
follows: 8,000.78
Table 2
Shareholding Structure of Janata bank
Promoter 51%
Public 49%
Total 100%
1.2.1. Meaning of Bank
Bank is a financial institution, which is engaged in monitory transaction. Bank has always been
the most importance and largest financial intermediates. Banks collect the scattered money from
the public providing those interests and services. This collection becomes the capital for the bank
to invest. "Banking means the accepting of money for the view of lending or investment of
deposit from the public repayable on demand or otherwise and withdraw able by cheque, draft or
otherwise", is according to Banking Regulation Act 1949 of India. World Bank says, "Bank or a
financial institution that accepts funds in the forms of deposit repayable on demand or at short
notice."Some important meaning of bank given by different scholars is as follows:
Leaf (2007) a bank is that institution or individual who is always ready to service money on
deposit to be returned against the cheque of their depositor.
White (1995) bank is a manufactures of credit and machine for facilitating exchanges.
Crowther (1941) a bank is a dealer in debt in his own and other people are the bankers business
is them to take the debt of the people to otter his own in exchange and thereby to credit money.
Therefore, the bank is a financial institution which accepts deposits from the general public and
provides loans to different sectors at different interest rates. Bank pays the vital role in the
economical condition.
1.2.2 History of Bank in Nepal
In the context of Nepal, like as in the other countries the goldsmith and landlords where the
ancient banker. The Nepalese people were highly exploited by 'Sahu Maharjan' by charging
higher interest rate, compound interest rate and even by manipulating the principle amount. The
introducing of 'Tajarath Adda' during the tenure of the Prime Minister Ranoddip Sing (1993B.S.)
was the first step towards the institutional development of banking in Nepal. The first
commercial bank 'Nepal Bank Limited' was established on 30th Kartik 1994 B.S. and started to
perform proper banking activities. With the realization of central bank to develop monetary
policy as well as to have proper control over commercial banks and banking sectors Nepal Rastra
Bank was established on 14th Baishak 2014 B.S. under Nepal Rastra Bank Act 2012 B.S.
Likewise, Rastra Banijye Bank under the full ownership of government was established on Magh
2022 as per 'Rastra Banijya Bank Act 2012 B.S.'. The growths of the bank accelerated only after
the adoption of liberal economic policy by Nepalese Government. This has attracted many new
investors and encourages opening many new modern banks with joint venture for foreign banks.
Nepal Arab Bank was established on 29th Adhad 2041 B.S.as the first bank modern bank with
the joint venture of Dubai Bank Ltd. U.A.E. subsequently following its established Nepal Indo
Suez Bank France, Nepal Grinlands Bnak England on16th Marg 2043 B.S. with its joint venture
of Grinlands Bank England, Himalayan Bank Ltd. on 5th Marg 2049 B.S. with the joint venture
of Habib Bank of Pakistan, Nepal SBI Bank Ltd. in 28th Ashad 2050 B.S. with joint venture of
State Bank of India, Nepal Bangladesh Bank Ltd. on 28th Jestha 2050 B.S. with the joint venture
of International Finance Investment and Commercial Bank, Everest Bank Ltd. on 1st Kartik
2051 B.S. with joint venture of Panjab National Bank, Bank of Kathmandu Ltd. on 28th Falgun
2051 B.S. with joint venture of the Siam Commercial Bank, Thailand. Now, there are 28
commercial bank, 33 Development bank, 25 finance companies, 39 Insurance companies, 65
Institution of small finance, 25 Merchants banks with 6651 branches.
1.2.3 Profile of Customer Satisfaction
Customer satisfaction is one of the most important concepts in the field of marketing studies
today. Customer satisfaction is a long-term strategy. Just as, it is difficult to radically alter
perceptions of product quality over a short time horizon, so it is difficult to quickly cultivate a
reputation for superior customer service. Consequently customer satisfactions as competitive
advantage that is sustainable over the long term. In the last few years, subject of satisfaction and
dissatisfaction has received a great deal of attention from academic researchers. Engel &
Blackwell (1982) defined satisfaction as an evaluation that the chosen alternative is consistent
with prior beliefs with respect to that alternative. Customer satisfaction in the banking industry
plays a vital role to create a healthy business status being service based industry. In any service
based industry customer service is at highest priority. Customer service can be provided by well
trained person in planned systematic manner or can be provided by means of well planned self-
service. In banking industry customers are more directly linked with the banks' personnel for any
kind of services or products. Therefore, Banks should always focus on training its front desk
staffs to provide quality service knowing their expectations and wants. Customer satisfaction is
one of the important outcomes of marketing activity. It serves to link processes culminating
purchase and consumption with post purchase phenomena such as attitude change, repeat
purchase, and brand loyalty. This opinion has been supported by Jamal and Naser (2003) and
Mishra (2009). Customer satisfaction is generally described as fully meeting their expectation
and is the feeling or attitude of a customer towards a product or service after it has been used.
Likewise, many researchers conceptualize customer satisfaction as an individual's feeling of
pleasure or disappointment resulting from comparing a product's perceived performance (or
outcome) in relation to his or her expectations. Customer satisfaction has been considered the
essence of success in today's highly competitive banking industry. Prabhakaran and Satya (2003)
mentioned that the customer is the king. Heskett et al. (1997) argued that profit and growth are
stimulated primarily by customer loyalty. Ndubisi (2005) and Pfeifer (2005) pointed out that the
cost of serving a loyal customer is five or six times less than a new customer. Several researchers
including Tariq and Moussaoui (2009) and Ehigie (2006) found that loyalty is a direct outcome
of customer satisfaction.
1.3 Statement of the problem
Satisfying customers is the first major mission and purpose of any business organization. It is
when customers are satisfied the organizations achieves higher sales, profit and market share and
vice versa. Customer satisfaction also leads organizations to gain loyalty and achieve the desired
objectives. Therefore, it is essential for organizations to satisfy their customers promptly so that
they can achieve what they plan. Banks as a business organization should provide a great care for
its customers' to attract, retain and gain their loyalty. Nevertheless, banks found in our country
(Nepal) have little care about their customers. This leads them to use more obsolete and
traditional technologies that cause dissatisfaction and switching among customers. This means
the banks are not satisfying their customers enough due to many factors in which using
traditional technologies is among them. Simply customers of the bank have not being satisfying
by its services. This is due to poor service quality of the bank that results from absence of new
and improved technologies. Many studies indicate that there are links between customer
satisfaction, service quality & profitability. In order to meet customer demand, many companies
need to better serve their customers. Better quality of service can usually get a higher market
share and better returns. Because of high market competition service quality becomes an
increasingly important issue in the field of competitive market. Among the different problems
regarding customer satisfaction, following will be the major concern of the study.
 What are the factors that can lead to customers toward satisfaction?
 What are the most satisfactory factors that are provided by Janata bank to its customers?
 How satisfied customers are with service quality in New road branch?
1.4 Objective of Study
The general objective of this research project is to assess the impact of service quality on
Customer Satisfaction in Janata Bank of Newroad Branch. The main objective of this research
study will be to explore the customer satisfaction in Janata Bank.
Moreover, the specific objectives of the study are:
 To explore the factor affecting the customer satisfaction in Janata bank.
 To examine the most important factor motivating to remain with the bank.
 To identify the impact of service quality on customer satisfaction of the banks.
1.5 Rational of the study
This study has its importance to provide information about customers' satisfaction from different
products and services offered to customers by Janata Bank at Newroad Branch. Findings will be
helpful to identify those areas which should be focused more to provide better services. This will
help for banks for retaining their customers and attract new customers. This research is very
important for future researchers. It is quite a bold step to enquire into the customer satisfaction in
large banking sector. The study also fulfills some requirements of social audit of Janata bank in
terms of customer satisfaction. The management of the sampled banks may also benefit from this
study as the outcome of this study, though not very complete, raises many vital issues of the
Janata banks in terms of their customers' banking service desires.
1.6 Literature Review
Customer satisfaction is an important theoretical as well as practical issue for most marketers and
customer researchers. Customer satisfaction can be considered the essence of success in today's
highly competitive world of business.
Lopez, Hart, & Rampersad (2007) conducted a research on the topic, "Ethnicity and Customer
Satisfaction in The Financial Service Sector." For 230 respondents varied in demographics and
background. In this research, convenience random sampling method was used. The data are
collected through questionnaire. The objective of the study is to describe research carried out to
determine whether South Florida's heterogeneous retail banking customers have differing
perceptions of the importance of service quality dimensions; and to ascertain whether various
ethnic groups report different levels of customer satisfaction with their retail banks. This study
claimed that by using the one of the service quality tool in which customer satisfaction was
measured on the basis of ten dimensions. Results significantly show that out of ten five
dimensions namely reliability, responsiveness, tangibles, empathy & assurance shows the
positive impact on customer satisfaction. Thus, this study concluded that organizations must
focus on service quality and they did not need to give more attention in corporate image of
organization.
Husnain (2016) conducted a research on the topic, "The impact of e-banking on customer
satisfaction: evidance from banking sector of Pakistan." For 264 customers of different level of
income. The objective of this study was to test the satisfaction of customers with e-banking.
Decsiprtive statistical tools like mean, correlation, multiple regression analysis were used to
draw conclusion. From the statistical analysis, it has been observed that consumer are fairly
satisfied with the e-banking services in term of service quality. The major finding of the study
include there is a relationship of each independent variable (i.e realiability, responsiveness,
Access, tangible and Communication)with the dependent variable (i.e customer satisfaction)
when conclude that in Pakistan, people evaluate e-banking on three key dimentions out of five of
the SERVQUAL model: Responsiveness, Relaiability and Assurance. Thus, the study conclude
that service quality in e-banking leads to satisfied customers and thus bank can gain competative
advantage by offering better quality services to their customer in todays emulous world.
Dhariyal & Sharma (2019) conducted a research on the topic, "Analysis impact of brand image
on customer preferance: A compaartive study of public and private sector banks in Kamaun
region of Uttarakhand." For 20 customers of different banks. The objective of the study was to
identify the most influencing factor in selection of bank sector, to analyse the difference between
influencing factor of public and private bank sector and to examine the relationship between
barnd image and customer preferance. Descriptive statistical tools like mean, standard devaition
were used to draw conclusion. Ms-excel and IMB SPSS-16 are used to analyse the collected
data. The major finding of the study include there is a relationship of each independent variable
(i.e location, friendly behaviour, brand image, interest rate and quick service) with the dependent
variable (i.e customer preferance). They find, customer now a days are not only exposed of what
types of service is being provided banks in India but in the world as a whole. They expect much
more than what is actually being provided, so the new coming banking sector has to provided
and cater to all the needs of the customers otherwise, its difficult to survive in the competation
coming up. Bank need to have a better outlook towards to actually what customers are requiring.
Khan & Abdullah (2019) conducted a research on the topic, "The Effect of ATM Service Quality
on Customers Satisfaction and Loyalty: An Emphirical Analysis."
The objective of the study was to examine the ramification of ATM service qualities on overall
customer satisfaction. The data were collected through questionnaires. In this research,
convenience random sampling method was used. Information from 211 ATM users was
collected from different places of Kurdistan region using a structured questionnaire. A pilot
survey was conducted to ensure all dimensions meets to its objectives of research. SPSS-22 was
used for analyzing the data. To recognize the service quality components of ATM and their
association with overall customer satisfaction descriptive analysis, correlation and coefficient
and regression test and ANOVA test were used. The major finding of the study include there is a
relationship of each independent variable (i.e reliability, convenient, security, fulfillment and
responsiveness) with the dependent variable (i.e customer satisfaction). Results indicates that
majority of dimensions are significantly correlated with overall customer satisfaction. At the end,
few recommendations were made for improvement of ATM service quality.
Premraj & Sankaralingam (2012) conducted a research on the topic, "Customer Satisfaction in
Indian Retain Bankin- A study with reference to Chenni." The objective of the study was to
analyze the overall satisfaction level of customer regarding service rendered by bank in Chennai.
With the banking habits percolating down to the lower strata, increasing literacy, ever growing
customers' expectations, automation and competition, satisfying retail banking customers has
become a daunting task. The study analysis the service quality perception of 480 retail banking
customers in Chennai, chosen from SBI Group, Nationalized Banks, Private sector and Co-
operative Banks, to assess their satisfaction level regarding the services rendered by banks and
identify those service factors which have the maximum impact on customer satisfaction.
Descriptive statistical tools like mean, variance and regression analysis were used to draw
conclusion. The major finding of the study include there is a relationship of each independent
variable (i.e reliability, tangible, assurance empathy, competativeness, courtesy and
responsiveness) with the dependent variable (i.e customer satisfaction). It indicates that
reliability and competitiveness have the maximum impact on customer satisfaction. Hence,
banks need to be more innovative and endeavor to provide more value added services to boost
the satisfaction level of customers. Banks have to overhaul their services and fine tune their
service quality in order to satisfy the growing customer's expectations. They
have to be innovative and provide more value added services. This alone will enable banks to
sustain and grow in this contemporary highly automated, dynamic and
competitive environment.
Gupta & Dev (2012) conducted a research on the topic, "Client Satisfaction in Indian Bank: an
empherical study." The objective of this paper is to identify the factors impacting customer
satisfaction in Indian banks and analyze their effects the level of customer satisfaction through a
regression analysis. The primary contribution of this study is the analysis and resulting insights
on the critical factors impacting client satisfaction within the Indian retail banking sector. The
data were collected through questionnaires. In this research, convenience random sampling
method was used. The questionnaire was then sent out to current customers of 13 retail banks in
India. In total, 420 completed questionnaires were received, out of which 400 were found to have
been accurately and completely answered. A factor analysis suggests that there are five factors
driving customer satisfaction: "service quality", "ambience/hygiene", "client
participation/involvement", "accessibility" and "financial". Subsequent multiple regression
analysis revealed that "service quality", "ambience and hygiene", and "client participation and
involvement" in that order are the most important factors impacting client satisfaction. The
results from the current study are crucial because previous studies have produced scales that bear
a resemblance to SERVQUAL, a generic measure of service quality, which may not be solely
adequate to assess the perceived quality of service in the Indian banking sector.
Moranu & Duhnea (2018) conducted a research on the topic, "E-Banking and Customer
Satisfaction with Banking Service." The objective of the study was to test the relationship
between service quality and satisfaction. A descriptive quantitative analysis was conducted. The
data were collected using a questionnaire as a research tool. The questionnaires were randomly
distributed, and out of 750, 667 were returned filled in. After eliminating the ones that were
incomplete, the research was finally conducted on 643 questionnaires, using IBM SPSS Statistics
2. Descriptive statistical tools like mean, standard devaition were used to draw conclusion. The
research conducted revealed that overall customer satisfaction with banking services and
customer satisfaction with e-banking services are strongly correlated, thus pointing out the
importance of e-banking services. The research results also indicated that the
assessment of the satisfaction with e-banking services does not differ based either on gender, or
on residence environment (rural/urban). However, the level of satisfaction with e-banking
services is significantly lower for the age group over 65 years old compared to other age groups.
Worimegbe, Abosede, & Worimegbe (2018) conducted a research on the topic, "Efficiency
Customers Satisfaction and Deposit Money Banks Performance in Nigeria". The objective of the
study was to examine the effect of customer satisfaction on bank performance. In this research,
data used in achieving the research objectives were from both primary and secondary sources.
The Data Envelopment Analysis (DEA) and Structural Equation Model (SEM) were employed in
the analysis of data. 600 hundred questionnaires from 18 deposit money banks. The study reveals
that technical efficiency leads to customers' satisfaction. The findings also show that customers'
satisfaction affects bank performance. Further-more, efficiency influences banks' financial
performance and this indicates that banks that pursue improved financial performance using a
singular approach may be fundamentally misguided. This conclusion has important implications
because it suggests that deposit money banks should concentrate effort firstly on efficiency
before customers' satisfaction. Munari, Lelasi, & Bajetta (2013) conducted a research on the
topic, "Customer Satisfaction Management in Italian Banks". The objective of this study was to
present the results of a survey that aimed to analyze the state of organizational and operative
evolution of the functions and activities overseeing customer satisfaction in Italian banks. The
research was conducted by questionnaire, to which 92 banks responded, representative of 77 per
cent of the total assets of the Italian banking system. Descriptive statistical tools like bar diagram
are used to draw conclusion. The analysis of the results makes it possible to highlight the current
approaches aimed at managing customer satisfaction, as well as the extent of integration between
this and other management processes within the banks surveyed. The authors found that in these
banks customer satisfaction is no longer a staff activity but increasingly a line activity, it
involves the responsibility of top management and is a key indicator in staff incentive schemes.
The research aims to contribute to the literature on customer satisfaction on the one hand, by
verifying if and how banks measure and manage some of the customer satisfaction cause-effect
relationships investigated by studies on
the subject and, on the other hand, by focusing attention on organization and internal processes
aimed to support the assessment and improvement of customer satisfaction.
Lone, Aldawood, & Bhat (2017) conducted a research on the topic, "Customer satisfaction
towards Islamic banking in Saudi Arabia: an application of CARTER model." For 428 customers
of different level of income. The objective of this study was to view the satisfaction level of
customers of Islamic banks in Saudi Arabia through solicitation of the CARTER model
(compliance, assurance, reliability, tangibility, empathy & responsiveness). This study is
expected to help practitioners predict the future of Islamic finance in Saudi Arabia while taking
the overall response of customers into consideration. The paper presents primary data collected
through a self-designed questionnaire on a five-point Likert scale from four regions of Saudi
Arabia. ANOVA test was used to interpret the data collected on the basis of six dimensions of
CARTER model. The results reveal that customers are satisfied with the working of Islamic
finance as far as various dimensions of CARTER model are concerned. Of the six dimensions, a
relatively lower rating was found with respect to compliance (the only dimension that makes
Islamic banks different from conventional banks), indicating that Islamic banking institutions
should pay due attention towards compliance dimension. After analyzing data using different
statistical techniques, the results clearly show that there is no difference of opinion among the
customers of all the regions of Saudi Arabia in terms of compliance, assurance, reliability,
empathy, responsiveness and tangibility of Islamic finance. But mean score in all regions and in
all variables is more than the average score as far as the five-point Likert scale is concerned.
Therefore, it can be comprehended that people of Saudi Arabia are fully satisfied with the
Islamic finance, but range of opinion varies from region to region and across variables.
Conclusively, in terms of compliance, assurance, reliability, empathy, responsiveness and
tangibility; there is almost the same opinion about the Islamic finance in all the regions of Saudi
Arabia. The results indicate that customers of Saudi Arabia are satisfied with Islamic banking
working and therefore it can be predicted that the future of Islamic banking is shining in this
country. All the variables are towards agree scale when average is calculated, which is a good
indication that this banking has made good image among the society in general and customers in
particular.
Awan, Bukhari, & Iqbal (2016) conducted a research on the topic, "Service quality and customer
satisfaction in the banking sector A comparative study of conventional and Islamic banks in
Pakistan." The objective of this study was to investigate the service quality and its relationship to
customer satisfaction among the customers of conventional banks and Islamic banks. A modified
SERVQUAL scale is utilized to ascertain the functional dimensions of service quality specific to
the industry and service context under study. A field survey carried out with the help of a
questionnaire constructed by using a modified SERVQUAL scale. Data were collected from 200
walk-in customers conveniently drawn from three major conventional banks and three Islamic
banks located in urban areas of Pakistan. Data were analyzed using the analytical hierarchy
process to identify service quality and customer satisfaction-related factors for Islamic and
conventional banks. By using factor analysis, 52 measurement items with a factor loading greater
than (0.5) were identified to form five service quality dimensions namely empathy, service
architecture, convenience service encounter, employee service criteria, customer focus and five
customer satisfaction dimensions: responsiveness, competency, safe transaction, competitive
services, knowledge for the overall banking industry explained 56 percent of the variance.
Results from regression analysis of the relationship between multidimensional service quality
dimensions and unidimensional customer satisfaction factors also validated the importance of
service quality aspects for behavioral intentions (satisfaction, feelings) for customers from
conventional banks and Islamic banks. This study concluded that the SERVQUAL dimensions
would replicate in the banking industry but with certain modifications of structure that are based
on the priority of service quality and customer satisfaction elements from the perspective of
customers. Of equal importance, the research proposed that, in addition, functional quality is a
principal determinant of overall service quality and customer satisfaction for both types of
banking systems, i.e. conventional as well as Islamic banking system in Pakistan.
1.9 Theoretical Framework
The theoretical framework is the structure that can hold or support a theory of a research study.
The theoretical framework introduces and describes the theory that explains why the research
problem under study exists.

Reliability Assurance

Responsiveness Customer satisfaction

Empathy

Tangible Gender

Figure 1: Theoretical Framework

Operational definition of variable
Reliability
The appearance of physical facilities, equipment, personnel, and communication material
Assurance
The ability to perform the promised service dependable and accurately
Responsiveness
The willingness to help customers and provide prompt service
Assurance
The knowledge and courtesy of employees, and their ability to convey trust & confident. They
include:
• Competence
• Courtesy
• Security
• Credibility
Empathy
The caring individualized attention provided to the customer. They include:
· Understanding
•Communication
· Access
1.7 Research Methodology
1.7.1 Research Design
This study has conducted in the context of Janata bank. The research is descriptive type because
it investigates the satisfaction level of bank customers for services received from their banks. For
research purpose, researchers conducted a survey through questionnaires which defined the
method of data collection by primary data collection method. Sample unit will be an account
holder of Janata bank drawn as sample from random sampling method. In order to get better
response from customers about their satisfaction level, this research will mostly focused on
getting response from respondents who had frequent transaction with the banks, and the main
exit gate was used as data collection place.
1.7.2 Nature and sources of data
This study has used primary data to meet the objective of the study. Primary data will be
collected regarding depositor perception and opinion towards Janata bank.
1.7.3 Population and Sample
Non-probability convenience sampling technique will adopt where Janata bank at Newroad
branch will be selected as the sample for the study. The selected sample seemed to represent
generalize the total population. Generally, customers of Janata
bank are depositors, borrowers, and others who get banking services. However, this study will
not cover all the customers of Janata bank as per the limit time framework. It will only cover the
depositor, borrower of the Janata bank. The sample number was 107 consumers from Newroad
branch.
1.7.4 Data Collection
For purpose of collection of data, a researcher has conducted a survey through questionnaires
which defined the method of data collection by primary data collection method. A standard
structured questionnaire will design to collect the required information where five point Likert
scale, ranking scale, and other demographic nominal information will use.
1.7.5 Data Analysis
Here for analysis of data both, both descriptive and inferential statistics was used. SPSS ver.23
software was used for different statistical analysis to process the collected data. Similarly, ms
excel was used for various calculation, creating pie-chart and analysis of data.
1.8 Limitation of the study
 The sample size is small due to which generalizability may be low.
 Only limited statistical tools have been used.
 CHAPTER II
DATA PRESENTATION AND ANALYSIS

2.1 Data Analysis

This chapter will present a discussion of the final results and the process through which the
results were obtained. In addition to this, background information of respondents will be
presented. Finally, the statistical methods of analysis were discussed, which included a reliability
test, descriptive analysis, correlation analysis, independent sample t-test and regression analysis
through SPSS version 23.
2.2 Background Information from Respondents
One hundred seven questionnaires were distributed to the respondents. The demographic
characteristics include: gender, age and level of income of the respondent. The table below
shows the details of background information of the respondents.
Table 2.1
Background Information of Respondents
Characteristics Frequency Percent
Gender Male 59 55.1
Female 48 44.9
Total 107 107
Age 20-40 102 95.3
above 40 5 4.7
Total 107 107
Monthly Income below 15000 39 36.4
15000-30000 46 43
above 30000 22 20.6
Total 107 107

Table 2.1 presents the background information of the respondents of the study. The survey
showed that there were 59 males & 48 females. As far as age of respondents is concerned, 95.3
percent of the respondents are in the range of 20-40 years, 4.7 percent of the respondents are in
the range of above 40 years. With regard to monthly income level of respondents, below
Rs.15000 represents 36.4 percent of the customer, Rs.15000 to Rs.30000 represents 43 percent of
the customers and above Rs.30000 represents 20.6 percent.
2.3 Reliability Test
Table 2.2
Reliability test as a whole
Reliability Statistics
Cronbach's Alpha N of Items
0.854 22

In table 2.2 the Cronbach's Alpha is 0.854, which is greater than 0.7. So, there is not any
problem to use these instruments to continue with this study.
2.4 Descriptive Analysis
The descriptive analysis consists of the mean and standard deviation of each question that was
asked to the respondents. Likert scale questions were asked to find out the relationship between
dependent and independent variables. Five Likert scale was used for the analysis of the variable
in which 1 strongly disagree, 2 disagree, 3 neutral, 4 agree, 5 strongly agree. The descriptive
analysis presented in table and chart for easy understanding of the variables.
2.4.1 Descriptive Statistics of Reliability
Table 2.3
Descriptive Statistics of Reliability
Descriptive Statistics Mean Std. Deviation
Banks fulfill its promise at the time indicated 3.85 0.408
Banks perform the service exactly at the first time 3.76 0.612
Bank show a keen interest in solving your problems 3.96 0.433
Bank insist on error free record 3.13 0.515

The table 2.3 shows the descriptive analysis of reliability factor. The mean and S.D for the first
question "Banks fulfill its promise at the time indicated" is 3.85 and 0.408. respectively. For the
2nd question "Banks perform the service exactly at the first time" where the mean and S.D is
3.76 and 0.612. For the 3rd question "Bank show a keen interest in solving your problems"
where the mean and S.D is 3.96 and 0.433. For the 4th question "Bank insist on error free
record" where the mean and S.D is 3.13 and 0.525. It shows that the 3rd question is more
important where there is more mean (3.96) than other as compared by mean. Over the service
reliability, bank is found to be more interested on solving the customer's problem.
2.4.2 Descriptive Statistics of Assurance
Table 2.4
Descriptive Statistics of Assurance
Descriptive Statistics Mean Std. Deviation
Bank's staff behavior instills confidence in me 3.26 0.588
I feel safe in my transaction with the bank 4.12 0.428
Bank's staff are courteous with me 3.50 0.502
Bank's staff have the knowledge to answer all my 4.01 0.651
question

Table 2.4 shows the descriptive analysis of assurance factor. The mean and S.D for the 1st
question "Bank's staff behavior instills confidence in me" is 3.26 and 0.588. For second question
"I feel safe in my transaction with the bank" where the mean and standard deviation is 4.12 and
0.428. For the third question "Bank's staff are courteous with me" where the mean and standard
deviation are 3.50 and 0.502. For the fourth question "Bank's staff have the knowledge to answer
my entire question" where the mean and S.D is 4.01 and 0.651. It shows that the second question
is more important where there is more mean (4.12) than others as compared by mean. Over the
service assurance, bank is found to be safer in customer's transaction with the bank.
2.4.3 Descriptive Statistics of Responsiveness
Table 2.5
Descriptive Statistics of Responsiveness
Descriptive Statistics Mean Std. Deviation
Banks staff give you prompt service 3.6 0.530
Banks staff always willing to assist you 3.83 0.541
Banks staff are not too busy to respond to my question 3.55 0.600
Bank's staff have the knowledge to answer all my 3.82 0.563
question
Table 2.5 shows the descriptive analysis of responsiveness factor. The mean and S.D for the 1st
question "Bank's staff give you prompt service" is 3.6 and 0.530. For second question "Banks
staff tell you exactly the time the service will be perform" where the mean and standard
deviation is 3.83 and 0.541. For the third question "Banks staff always willing to assist you"
where the mean and standard deviation are 3.35 and 0.600. For the fourth question "Banks staff
are not too busy to respond to my question" where the mean and S.D is 3.82 and 0.563. It shows
that the second question is more important where there is more mean (3.83) than others as
compared by mean. Over the service responsiveness, bank found to be the bank staff tells
customer's exactly the time the service will be performed.
2.4.4 Descriptive Statistics of Empathy
Table 2.6
Descriptive Statistics of Empathy
Descriptive Statistics Mean Std. Deviation
Banks give me individual attention. 3.17 0.651
Bank operating hours convenient to me 3.50 0.757
The bank has my interest at heart 3.17 0.466
Banks staff understand my specific needs 3.52 0.757
Customer care provide me sufficient information 3.30 0.662

Table 7 shows the descriptive analysis of empathy factor. The mean and S.D for the 1st question
"Banks give me individual attention" is 3.17 and 0.651. For second question "Bank operating
hours convenient to me" where the mean and standard deviation is 3.50 and 0.757. For the third
question “The bank has my interest at heart” where the mean and standard deviation are 3.17 and
0.466. For the fourth question "Banks staff understand my specific needs" where the mean and
S.D is 3.52 and 0.757. For the fifth question “Banks Customer care provide me sufficient
information" where the mean and S.D is 3.30 and 0.662. It shows that the fourth question is more
important where there is more mean (3.52) than others as compared by mean. Over the service
empathy, bank is found to be the bank staffs more understand customer's specific needs.
2.4.5 Descriptive Statistics of Tangible
Table 2.7
Descriptive Statistics of Tangible
Descriptive Statistics Mean Std. Deviation
The banks employees has a neat and professional appearance 4.01 0.376
Material associated with the service like pamphlets, 3.9 0.362
statement are visually appealing at the bank
Bank physical facilities visually nice 3.84 0.415
Bank has modern equipment and tools 3.86 0.444
There is no waiting lobby 1.61 0.844

Table 2.7 shows the descriptive analysis of tangible factor. The mean and S.D for the 1st
question "The banks employees has a neat and professional appearance" is 4.01 and 0.376. For
second question “Material associated with the service like pamphlets, statement are visually
appealing at the bank” where the mean and standard deviation is 3.90 and 0.362. For the third
question “Bank physical facilities visually nice" where the mean and standard deviation are 3.84
and 0.415. For the fourth question “Bank has modern equipment and tools” where the mean and
S.D is 3.86 and 0.444. For the fifth question “There is no waiting lobby” where the mean and
S.D is 1.61 and 0.844. It shows that the first question is more important where there is more
mean (4.01) than others as compared by mean. Over the service tangible, bank is found to be the
banks employees have more neat and professional appearance.
2.4.6 Descriptive Statistics of Customer Satisfaction
Table 2.8
Descriptive Statistics of Customer Satisfaction
Descriptive Statistics Mean Std. Deviation
I am satisfied with the banks complete range of service 3.38 0.577
I am satisfied with the performance of the employees of this 4.01 0.400
bank
I am satisfied of being a client of this bank 4.01 0.523
I am satisfied with the bank employees professional 4.02 0.363
competence
I am satisfied with the quick service of this bank 3.99 0.466
I am satisfied with the respectful behavior of employees 4.14 0.399
Table 9 shows the descriptive analysis of customer satisfaction factor. The mean and S.D for the
1st question "I am satisfied with the banks complete range of service" is 3.38 and 0.577. For
second question "I am satisfied with the performance of the employees of this bank" where the
mean and standard deviation is 4.01 and 0.400. For the third question "I am satisfied of being a
client of this bank" where the mean and standard deviation are 4.01 and 0.523. For the fourth
question "I am satisfied with the bank employees professional competence" where the mean and
S.D is 4.00and 0.348. For the fifth question "I am satisfied with the quick service of this bank"
where the mean and S.D is 3.99 and 0.466. For the sixth question "I am satisfied with the
respectful behavior of employees" where the mean and S.D is 4.14 and 0.399. It shows that the
sixth question is more important where there is more mean (4.14) than others as compared by
mean. Over the customer satisfaction, bank is found to be customer's more satisfied with the
respectful behavior of employees.
2.5 Correlation Analysis
Table 2.9
Correlation Analysis between customer satisfaction and its factors
AVG R AVG A AVG RP AVG E AVG T AVG CS
AVG R 1
AVG A .411** 1
AVG RP .267** .267** 1
AVG E .311** .650** .413** 1
AVG T .408** .299** .286** .306** 1
AVG CS .210* .592** .468** .606** .492** 1

Correlation is significant at the 0.01 level (2-tailed). *Correlation is significant at the 0.05 level
(2-tailed).
Where,
Avg R= Average Reliability
Avg A = Average Assurance
Avg RP Average Responsiveness
Avg E = Average Empathy
Avg T = Average Tangible
Avg CS = Average Customer Satisfaction
In the table 2.9 the overall result shows that there is a significant relationship between customer
satisfaction and its factor affecting (i.e. reliability, assurance, responsiveness, tangible and
empathy) because all the factors have significant relationship customer satisfaction of Janata
bank of Newroad branch. This indicates that if the Janata bank can improve the factors affecting
customer satisfaction than customer satisfaction will also increase. The Janata bank should focus
to increase their service quality than, they can easily increase the satisfaction level of customers.
The correlation between customer satisfaction and assurance is 0.592 at the 0.01 significance
level. This result indicates that there is highly positive and significance relationship between
assurance and customer satisfaction. That means, if the banks provide high assurance to their
customers than they can easily increase customer satisfaction. The correlation between customer
satisfaction and responsiveness is 0.468 at the 0.01 significance level. This result indicates that
there is highly positive and significance relationship between responsiveness and customer
satisfaction. That means, if the banks provide high responsiveness to their customers than they
can easily increase customer satisfaction. The correlation between customer satisfaction and
empathy is 0.606 at the 0.01 significance level. This result indicates that there is highly positive
and significance relationship between empathy and customer satisfaction. That means, if the
banks focus on empathy to their customers than they can easily increase customer satisfaction.
The correlation between customer satisfaction and tangible is 0.492 at the 0.01 significance level.
This result indicates that there is highly positive and significance relationship between tangible
and customer satisfaction. That means, if the banks focus on tangible to their customers than they
can easily increase customer satisfaction.
2.7 Regression Analysis
Table 2.10
Model Summary and ANOVAS
Model Summary
Model R R square Adjusted R Std. Error of the F change Durbin- Watson
Square Estimate
1 0.743 0.522 0.53 0.22275 24.863 2.162
a Predictors: (Constant), AVG T, AVG RP, AVG R, AVG E, AVG A
 Model ANOVA

Model Sum of Squares DF Mean Square F Sig

1 Regression 6.168 5 1.234 24.86 0.000
Residual 5.011 101 0.05
Total 11.18 106
a Dependent Variable: AVG CS

Table 2.10 clearly indicates that the relationship between tangible, assurance, reliability,
responsiveness and empathy and consumer satisfaction has been established. It has obtained
using regression model summary and ANOVA.
ANOVA table is for deciding whether independent variables are able to predict dependent
variables with the model selected. Here sig or p value is 0.000< 0.05, this indicates that the
model is significant or model fits the data well. Thus we can conclude the independent variables
can predict dependent variables in this study. Now, the coefficients table is interpretable because
the ANOVA table shows the model is significant.
The Adjusted R Square indicates 0.53 or about 53% of variance on dependent variables can be
explained by service quality dimension (i.e. reliability, assurance, responsiveness, empathy and
tangible) and the remaining 47% of variance may be due to some other independent variables not
included in model. The Durbin-Watson value is 2.162 which are very near to the 2. Thus, it
indicates that the model is perfectly fits the data.
2.9 Major Findings
 In the descriptive analysis, Assurance has higher mean (i.e. 4.12) in comparison to other
service quality dimensions.
 In the correlation analysis there is positive and significant difference between customer
satisfaction and service quality dimensions (Reliability, Assurance, Responsiveness,
Empathy and Tangible). That is the correlation value is greater than p value (0.05 and
0.01 level of significances)
 In the independent sample t-test, there is no significance different between male and
female respondents between the five service quality dimensions. (i.e. p value>0.05).
 In the regression analysis, The Adjusted R Square indicates 0.53 or about 53% of
variance on dependent variables can be explained by service quality dimension (i.e.
reliability, assurance, responsiveness, empathy and tangible) and the remaining 47% of
variance may be due to some other independent variables not included in model. The
Durbin-Watson value is 2.162 which are very near to the 2. Thus, it indicates that the
model is perfectly fits the data.
 In overall, the highest relationship was found between empathy and customer
satisfaction, while the lowest relationship was found between reliability and customer
satisfaction.
 CHAPTER 3
SUMMARY, CONCLUSION & RECOMMENDATION

3.1 Summary
There were 107 opinion statements for this study and four opinions were developed to measure
the consumer satisfaction towards Janata bank. Except for demographic information, all items
were measured using five-point scales. The lesser score would indicate a favorable of consumer
satisfaction towards Janata bank. The five-point Likert scale was used as below:
1= Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree
The responses were collected and the data was arranged and analyzed using Microsoft word and
SPSS software packages. Under SPSS software, the collected data were analyzed through
various approaches such as, reliability analysis, analysis of demographic profile, descriptive
analysis, independent sample t-test, correlation analysis and regression analysis.
The study was planned at investigating the impacts of core banking and service quality on
customer satisfaction in Janata bank Newroad branch. The data were obtained through
questionnaire from customers of the bank. The results of background information of respondents
indicated that majority of the total respondents (55.1 percent) are male, (95.3 percent) aged in the
range of 20-40 years, and (43 percent) of the respondents income are Rs. 15000-30000 in a
month. The results of the descriptive statistical analysis indicated that, customers were most
satisfied with the assurance dimensions of service quality. Furthermore, customers were less
satisfied with responsiveness dimensions of service quality. The correlation result shows that
there is significance relationship between customer satisfaction and its factor affecting (i.e.
assurance, responsiveness, empathy and tangible). Reliability and customer satisfaction (r =
0.210, p > 0.05), assurance and customer satisfaction (r = 0.592, P >0.01), responsiveness and
customer satisfaction (r = 0.468, P >0.01), empathy and customer satisfaction (r=0.606, p>0.01)
and tangible and customer satisfaction (r= 0.492, P >0.01). This indicates that if the bank can
improve the factors affecting customer satisfaction than customer satisfaction will also increase.
The banks should focus to increase their reliability, to improve empathy, to provide
responsiveness, increase their assurance as per their service quality than, they can easily increase
satisfaction level of customers.
The finding also indicates that the highest relationship was found between empathy and customer
satisfaction, while the lowest relationship was found between reliability and customer
satisfaction.
3.2 Conclusion
This study is conducted in order to find the consumer satisfaction towards the bank service at
Newroad branch. Reliability, assurance, responsiveness, empathy and tangible were the
independent variable of the study whereas Consumer Satisfaction was the dependent variable.
The study was conducted to examine the impacts of the application of service quality on
customer satisfaction Janata bank Newroad branch. The finding of the study indicates that
customers of bank were satisfied by the five service quality dimensions (tangibility, reliability,
responsiveness, assurance and empathy). The finding of the study also indicates that, customers
were most satisfied with the assurance dimensions of service quality. However, customers were
less satisfied responsiveness dimensions of service quality. The correlation result shows that all
service quality dimensions (tangibility, assurance, empathy, responsiveness and reliability) are
positively and significantly related with customer satisfaction. According to the t-test results for
difference in the level of satisfaction based on respondent characteristics, there is a no significant
difference in satisfaction between male and female respondents. In conclusion, the Adjusted R
Square indicates 0.53 or about 53% of variance on dependent variables can be explained by
service quality dimension (i.e. reliability, assurance, responsiveness, empathy and tangible) and
the remaining 47% of variance may be due to some other independent variables not included in
model. The Durbin- Watson value is 2.162 which are very near to the 2. Thus, it indicates that
the model is perfectly fits the data.
Thus, the study conclude that service quality in bank leads to satisfied customers and thus bank
can gain competitive advantage by offering better quality services to their customer in today's
emulous world.
3.3 Recommendation
Under this chapter, after the completion of summary and conclusion, recommendations are
given, recommendation are suggestion, advices or feedbacks of customer that have been given to
the bank. Following recommendations can be drawn on the basis of the study:
As per the research, to increase customer satisfaction bank should incorporate the traditional
lobby facility into modern digitalized coupon system in the bank.
 REFERENCES

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Pakistan. Journal of Business Administration Research, 5 (2), 27-40.
 APPINDIX
Survey Questionnaire on Customer Satisfaction in Janata Bank

Dear Respondent,
I am pleased to inform you that I am undertaking a research work on Customer Satisfaction in
Janata Bank. For your kind information, it is purely an academic work and your response will be
kept confidential and anonymous. Information provided by you will be analyzed at aggregate
level.
Thank you
……………………….
Please put a tick mark in the appropriate box
General information of the Respondent
1. Gender
i. Male ii. Female iii. Other
2. Age
i. Below 20 ii. 20-40 iii. Above 40
3. Monthly Income
i. Below 15000 ii. 15000-30000 iii. Above 30000
Customer Satisfaction with Relation to Service Quality Dimensions
Please mark a tick in an appropriate response that best describe your perception towards the role
of service quality dimension in customer satisfaction. It is a humble request to realize each
statement as me is used for you i.e. respondent.
[1- Strongly Disagree, 2- Disagree, 3- Neutral, 4- Agree, 5- Strongly Agree]
Measurement Items / Service Attributes 1 2 3 4 5
Reliability
Banks fulfill its promise at the time indicated
Bank's perform the service exactly at the first time
Bank show a keen interest in solving your problems
Bank insist on error free record

Measurement Items / Service Attributes 1 2 3 4 5

Assurance
Bank's staff behavior instills confidence in me
I feel safe in my transaction with the bank
Bank's staff are courteous with me
Bank's staff have the knowledge to answer all my question

Measurement Items / Service Attributes 1 2 3 4 5

Responsiveness
Bank's staff give you prompt service
Bank's staff tell you exactly the time the service will be
performed
Bank's staff always willing to assist you
Banks staff are not too busy to respond to my question

Measurement Items / Service Attributes 1 2 3 4 5

Empathy
Banks give me individual attention
Bank operating hours convenient to me
The bank has my interest at heart
Bank's staff understand my specific needs
 ABBREVIATIONS

ATM : Automatic Teller Machine

BBS : Bachelor of Business Studies
B.S : Bikram Sambat
LTD : Limited
 ACKNOWLEDGEMENT

The success and outcome of this report required a lot of guidance and assistance from many
people. I am extremely fortunate to have got this all along with the completion of my project
report with the supervision of Kamal Prasad Sharma . Whatever I have done is only due to such
supervision and I would not forget to him.
I would like to express my special thanks of gratitude to Prof. Dr. Yam Bahadur Thapa Chhetri ,
Chairman of Resunga Multiple Campus; Er. Bishnu Dhoj GC, Principal of Resunga Mutiple
Campus, Mr. Hari Bahadur Khatri Academic Director of Resunga Mutiple Campus and all the
faculty members of Resunga Mutiple Campus for providing me with all the facility that was
required.
I thank Tribhuwan University and Resunga Mutiple Campus for allowing me to study on the
topic "Customer Satisfaction of Janata Bank at Butwal Branch", and providing for all support
and guidance which helped me to complete the project on time. This also helped me to know
about so many new things.
I am extremely grateful to all the respondents who participated in the research and provide me
with the required information based on which the project report is based upon. I would also
thank all the respondents for providing time to fill up the questionnaire despite their busy
schedule.
Lastly, I would also like to thank all my classmates and friends who helped me during research
and while preparing the report in a various way. I would also like to thank them for all the
encouragement and their constant motivation.
Sincerely,
Rajanish Simkhada
 CERTICICATE

This is to certify that the Project Work titled "Customer Satisfaction of Janata Bank at Butwal
Branch" submitted by Sujan Pokhrel; Exam Roll No. 17032310 for the partial fulfillment of the
requirements of BBS embodies the bonafide work done by him under my supervision.

Kamal Prasad Sharma

Feb 2023
 DECLARATION

I hereby declare that the project work report entitled "Customer Satisfaction of Janata Bank at
Butwal Branch" submitted for the BBS is my original work and the project work report has not
formed the basis for the award of any degree, diploma or other similar titles.

Sujan Pokhrel
Gulmi, 2023
CUSTOMER SATISFACTION OF JANATA BANK
at Butwal Branch

A Project Report

Submitted By
Rajanish Simkhada
Symbol No: ………..
T.U Registration No: …………….
Atlantic International College

Submitted To
Faculty of Management
Tribhuwan University
Kathmandu, Nepal

In Partial Fulfillment of the Requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Resunga Municipality, Gulmi

March 2023