1.

1 INTRODUCTION

The banking sector has undergone significant changes in the last year.
Banks are now required to cope with stiff competition in business and also
the complex regulatory norms regarding capital adequacy and provisioning
banks are forced to adopt various marketing techniques and approaches.
Thus, marketing has become imperative for all banks including those in the
public sector. The increasing legislative deregulation of the banking market
and the decreasing the state intervention in banking affairs; the above have
led to the creation of a new market which is characterized by a slight in-
crease in primary demands and less legislative restrictions. The preserva-
tion and mainly the increase of market shares constitute the primary objec-
tive of all banking institutions and many strategies have been implemented
in order to maintain their clients. In this effort, bank managers have been
creating new products and services. Yet as such innovations involve signif-
icant expenses and banking costs, it has been supported that a better ap-
proach would be to focus on client trust, by offering better quality of ser-
vices and aiming at satisfying clients to the maximum extent. Cheese et al.
(1988) _ indicated the importance of effective bank communications strate-
gies.
In the current banking scenario, it is obvious that banks gain competitive
advantage by rendering efficient service and thereby enhancing customer
relationship. More emphasis on creating loyal customers is the need of the
hour. It is pivotal for all players in the financial service industry to under-
stand the needs of the customer and customize services based on their
needs. This in turn will pave way for achieving customer satisfaction to
a larger extent. The measurement of the same is an important factor in
banking sector.

1
1.2 STATEMENT OF THE PROBLEM

Banks are now giving importance to the marketing activities to create

awareness regarding their services to the public. The customers have more
choices in choosing their bank. With stiff competition and advance tech-
nology, the services provided by the bank have become easier and more
convenient. The differences in the services provide by the banks different
each other. The customers have more choices in choosing their bank. The
differences lead to have changes in the satisfaction level of the customer.
So, the presence study aims to know the changes in the customer satisfac-
tion of banking services.

2
1.3 OBJECTIVES OF THE STUDY
1. To study about the problems faced by south Indian bank in banking ser-
vices
2. To study the customer satisfaction in banking services of south Indian
bank.
3. To identify the measures to overcome the difficulties faced by south In-
dian bank in banking services

3
1.4 RESERCH METHODOLOGY

Research is an active, diligent, systematic process inquiry in order to dis-

cover interrupt or discover, interpret or revise facts, events and behaviors or
theories or to make practical application with the help of such facts, laws or
theories.

1.4.1 RESEARCH DESIGN

Research design is the framework of methods and techniques chosen by a

researcher to combine various components of research in a reasonable lo-
gical manner so that the research problem is efficiently handled.

1.4.2 DATA COLLECTION METHOD

All researchers can adopt two sources for investigation.

Two sources are:-

PRIMARY DATA

Primary data collected by investigator himself for the first time and thus
they are original in character. Here we are a using questionnaire method as a
tool for collecting data from online shopping customer.

SECONDARY DATA

The secondary data are those data which have already been collected. Tabu-
lated and presented in some other purpose. Secondary data can be obtained
from journals, reports, magazines, websites, newspaper etc…

1.4.3 SAMPLE SIZE

4
Sample size of the study is 50 respondents.

1.4.4 PERIOD OF THE STUDY

A period of study is 21 days.

1.4.5 SAMPLING METHOD

A simple convenient sampling technique is adopted in this study. Data has

been collected using questionnaire, by distributing among south Indian bank
customers in chavakkad locality.

1.4.6 TOOLS USED FOR DATA ANALYSIS

The data is analysed by using simple percentage.

Formula:-

Number of respondents
Percentage= × 100
Total number of respondent

5
1.5 SCOPE OF THE STUDY
The study confined to “customer satisfaction on service quality of South In-
dian bank” with special reference to chavakkad municipality.

6
1.6 LIMITATIONS OF THE STUDY
1. The area of study covers only the customers of the South Indian bank in
chavakkad locality.

2. The sample size which is not quite large so it does not provide accurate
result of the entire population.

3.Personal bias of the respondent could influence the authenticity of the

data.

4. The study conducted for only 21 days.

7
 REVIEW OF LITERATURE

 Suresh Chandra G.S (2003) et al tried to identify the critical factors of

service quality and to develop an instrument to measure customer per-
ceived service quality based on identified factors, they viewed empirical
research on service quality and satisfaction has unearthed and criticized
the 22 items SERVQUAL instrument on the ground that it has no human
element. The study identified five critical factors of service quality and
framed a comprehensive instrument to measure and understands cus-
tomer perceptions of service of quality

 Chang, Tung-Zone (2004) pointed out in his study that superior service
quality has positive effect on business profitability. It proposed a model
for the positive relationship between market orientation and business
performance. i.e., market orientation service quality business perfor-
mance.

 Dhar, Upinder et al (2004) undertook an extra ordinary study to iden-

tify different service quality factors in the private and public banks. It
also focused on understanding the perceptual gap in service quality
while comparing the employees and customers of private and public sec-
tor banks.

 Sarvanan S (2004) conducted this study with an object to know the role
of ‘service marketing’ in the field of financial or banking sector and to
analyze the impact of modern technology in the concept of bank market-
ing. The study underlined the significance of adopting modern technolo-
gies in the financial sector. It expected some strategy in the new millen-
nium in the financial service marketing sector like, diversification, arm-

8
 chair banking, web system among banks and internationalization of
banking services.

 Krishnaveni R (2005) analyzed the existing Indian banking scenario in

the light of liberalization and globalization reforms in the country. They
also studied the perceptions of the corporate customers regarding the ser-
vice quality of their bankers. The study found that there is a wide gap be-
tween the strategies followed by the Indian banks when compare to the
foreign banks. The situation is same in the case of customer perceptions
of service quality.

 Kannabiram G (2005) conducted a case study by taking International

Hope Bank as a case to know the experience of a private sector bank in
deploying internet banking and e-commerce in the globalized and liber-
alized Indian business environment. A major reveal of the study was that
the IHB seems to be fore runner among Indian banks and is leading the
way in aligning IT with business strategy by which they could provide
enormous benefits to the customers and eventually economic develop-
ment.

 Laxman G (2005) analyzed the performance of ATM services of Andra bank

and ascertained the satisfaction level of ATM using customers of Andra bank,
the study identified numbers of motivational factors for avoiding ATM ser-
vices from Andra bank. It is also revealed that majority of respondents from
middle and higher income groups and above qualification holders expressed
good and very good opinion about the service while other expressed perfor-
mance as average.

9
 Sharma N (2012) research study used the 17 variables related to the
quantitative aspects of e-banking. Study on rural customer’s satisfaction
from e-banking was found to be significant. Research suggests that satis-
factions in rural customers are quite satisfied in e-banking services. So,
in order to improve the tendency to use e-banking channels in rural ar-
eas the use of local languages during dealings should be promoted as
well as publicized. Her research also suggest that ATM is one of the im-
portant channel out of all alternate banking channels for securing patron-
age of rural customers.

 Gupta A & Dev S (2012) opined satisfaction of customer is dependent

on variable then independent variable. These dependent variables largely
depend on service quality, ambience, involvement, accessibility and fi-
nancial factors of the bank. According to the findings of the research.
The impact of nearness of bank and financial factors on customer satis-
faction is not up to the mark.

10
 THEORETICAL FRAME WORK

MEANING OF BANK
The term bank has originated from the term ‘Banchi’ in olden days. The
traders of Italy who performed the job of exchanging money were known
as Banchi or Bancher, because the table which they used for making pay-
ment was called Bank.

Thus, bank is an institution, which accepts deposits from the public and in
turn advances loans by creating credit. It is different from other financial
institutions that they cannot create credit though they may be accepting de-
posits and making advances. However, with the passage of time the activi-
ties covered by banking business have widened and now various other ser-
vices are also offered by banks. The banking service these days include is-
suance of credit cards and debit cards, providing safe custody of valuable
items, lockers, ATM services and online transfer of funds across the coun-
try/world. It encourages the flow of money to productive use and invest-
ment. In the modern era there are different types of banks that are essential
to the smooth functioning of the economy.

CHARACTERISTICS OF BANK
1. It may be an individual/firm/company.
2. It is a profit and service-oriented institution.
3. It acts as a connecting link between borrowers and lenders.
4. It deals with money.

11
5. It accepts deposits from public.
6. It provides advances/loans/credit to customers.
7. It provides payment and withdrawal facilities.
8. It provides agency and utility services.
9. Financial intermediary.

SERVICES PROVIDED BY THE BANKS ADVANCING

OF LOANS.
1. Overdraft.
2. Discounting of Bills of Exchange.
3. Check/Cheque Payment
4. Collection and Payment Of Credit Instruments
5. Foreign Currency Exchange.
6. Consultancy.
7. Bank Guarantee.
8. emittance of Funds.
9. Credit cards.
10.ATMs Services.
11.Debit cards.
12.Home banking.
13.Online banking.
14.Mobile Banking.
15.Accepting Deposit.
16.Priority banking.
17.Private banking.

ADVANTAGES OF BANK
1. SAFETY OF PUBLIC WEALTH

12
2. AVAILABILITY OF CHEAP LOANS
3. PROPELLANT OF ECONOMY
4. ECONOMIES OF LARGE SCALE
5. DEVELOPMENT IN RURAL AREAS
6. GLOBAL REACH

DISADVANTAGES OF BANK
1. CHANCES OF BANK GOING BANKRUPT
2. RISK OF FRAUD AND ROBBERIES
3. RISK OF PUBLIC DEBT

CUSTOMER FACTORS
Customers derive satisfaction from a product or a service based on whether
their need is met effortlessly, in a convenient way that makes them loyal to
the firm. Hence, customer satisfaction is an important step to gain cus-
tomer loyalty. Organizations calculate the customer satisfaction score
(CSAT), which is the average rating of a customer’s responses, the net pro-
moter score (NPS), which indicates the probability that a customer refers a
brand to another person, and the customer effort score (CES), which indic-
ates how easy it is for a customer to do business with a firm. The customer
satisfaction metrics are then used to estimate consumer behaviour.

13
Table 4.1 Table Showing Classification Of Respondents Based On Type Of
Accounts

Particulars No. of respondents Percentage %

Saving Account 38 76
Current Account 12 24
Fixed Account 0 0
NRI 0 0
Total 50 100
Source Primary Data

Chart 4.1 Column Chart Showing Classification Of Respondents Based

On Type Of Accounts
80
70
60
50
40
30
20
10
0
SAVING ACCOUNT CURRENT ACCOUNT FIXED ACCOUNT NRI

INTERPRETATION:
The column chart 4.1 it is clear that 76% of the respondents have savings ac-
count. 24% of them have current account. And no one have chosen both fixed
account and NRI account

14
Table 4.2 Table Showing Preference Of Respondents While Selecting A
New Bank
Particulars No. of respondents Percentage %
Service fees 7 14
Bank name 2 4
Innovation 1 2
Quality 19 38
All of the above 21 42
Total 50 100
Source Primary Data

Chart 4.2 Pie Chart Showing Things Preference Of Respondents While

Selecting A New Bank

14
4
2

42

38

SERVICE FEES BANK NAME INNOVATION QUALITY ALL OF THE ABOVE

INTERPRETATION

From the pie chart 4.2 shows that 42% of the respondents are considering all
things selecting new bank and 38% consider quality of bank. 14% of the re-
spondents considering service fees for selecting new bank and 6% consider in-
novation and bank name for selecting new bank

15
Table 4.3 Table Showing Classification Of Respondents Based On Service
Quality Provided.

Particulars No. of respondents Percentage %

Excellent 6 12
Very good 19 38
Good 23 46
Average 2 4
Poor 0 0
Total 50 100
Source Primary Data

Chart 4.3 Bar Chart Showing Classification Of Respondents Based On Ser-

vice Quality Provided.

POOR

AVERAGE

VERY GOOD

EXCELLENT

0 5 10 15 20 25 30 35 40 45 50

INTERPRETATION:
From b a r c h a r t 4.3 it is clear that 12% of the respondents chosen excellent
service and 38% of the respondents chosen very good. 46% of the respondents
chosen good and 4% of the respondents chosen average. No respondents have
chosen poor. Thus, the most respondents chosen good.

16
Table 4.4 Table Showing Classification Of Respondents Thoughts About
The Bank.

Particulars No. of respondents Percentage %

Personalized service 7 14
Wide branch network 9 18
Customer service 20 40
Computerized banking 12 24
Core banking 2 4
Total 50 100
Source Primary Data

Chart 4.4 Column Chart Showing Classification Of Respondents Thoughts

About The Bank.
45
40
35
30
25
20
15
10
5
0
PERSONALIZED WIDE BRANCH CUSTOMER COMPUTERIZED CORE BANKING
SERVICE NETWORK SERVICE BANKING

INTERPRETATION:

From column chart 4.4 It is clear that 14 % of the respondents prefer personal-
ized service and 18% of the respondents prefers the wide branch network. 40%
respondents prefer customer service and 24% prefer computerized banking.
Only 4% prefer core banking service.

17
Table 4.5 Table Showing Classification Of Respondents Based On
Whether Bank Provides Convenient Operating Hours.

Particulars No. of respondents Percentage %

Strongly Agree 3 6
Agree 12 24
Neutral 19 38
Disagree 11 22
Strongly Disagree 5 10
Total 50 100
Source primary data

Chart 4.5 Pie Chart Showing Classification Of Respondents Based On

Whether Bank Provides Convenient Operating Hours.

10 6

24
22

38

STRONGLY AGREE AGREE NEUTRAL

DISAGREE STRONGLY DISAGREE

INTERPRETATION :

From the pie chart 4.5 It is clear that 6% of the respondents strongly
agree. 24% of the respondents agree. 38% of the respondents chosen neu-
tral. 22% of the respondents disagree and 10% of the respondents disagree.

18
Table 4.6 Table Showing Classification of Respondents based on
safety in banking services.

Particulars No. of respondents Percentage %

Strongly Agree 9 18
Agree 32 64
Neutral 7 14
Disagree 2 4
Strongly Disagree 0 0
Total 50 100
Source primary data

Chart 4.6 Bar Chart Showing Classification Of Respondents Based On

Safety In Banking Services.

STRONGLY DISAGREE

DISAGREE

NEUTRAL

AGREE

STRONGLY AGREE

0 10 20 30 40 50 60 70

INTERPRETATION :
From the bar chart 4.6 It is clear that 18% of the respondents strongly
agree. 64% of the respondents agree. 14% of the respondents chosen neu-
tral. 4% of the respondents disagree and no respondents disagree.

19
Table 4.7 Table Showing Classification of Respondents based on
bank fulfilling customer needs.

Particulars No. of respondents Percentage %

Strongly Agree 16 32
Agree 23 46
Neutral 8 16
Disagree 2 4
Strongly Disagree 1 2
Total 50 100
Source primary data

Chart 4.7 Column Chart Showing Classification Of Respondents Based

On Bank Fulfilling Customer Needs.
50
45
40
35
30
25
20
15
10
5
0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY
DISAGREE

INTERPRETATION :
From the column chart 4.7 It is clear that 6% of the respondents strongly
agree. 24% of the respondents agree. 38% of the respondents chosen neu-
tral. 22% of the respondents disagree and 10% of the respondents disagree.

20
Table 4.8 Table Showing Classification Of Respondents Based On
Bank Updating Information Via Electronic Devices.

Particulars No. of respondents Percentage %

Strongly Agree 4 8
Agree 30 60
Neutral 3 6
Disagree 10 20
Strongly Disagree 3 6
Total 50 100
Source primary data

Chart 4.8 Pie Chart Showing Classification Of Respondents Based On

Bank Updating Information Via Electronic Devices.

Sales

6 8

20

6
60

strongly agree agree neutral disagree strongly disagree

INTERPRETATION :
From the pie chart 4.8 It is clear that 8% of the respondents strongly
agree. 60% of the respondents agree. 6% of the respondents chosen neu-
tral. 20% of the respondents disagree and 6% of the respondents disagree.

21
Table 4.9 Table Showing Classification Of Respondents Based On
The Statement ‘Bank Is Equipped With An Overall Environment To
Satisfy The Customers’

Particulars No. of respondents Percentage %

Strongly Agree 7 14
Agree 23 63
Neutral 16 32
Disagree 3 6
Strongly Disagree 1 2
Total 50 100
Source primary data

Chart 4.9 Bar Chart Showing Classification Of Respondents Based On

The Statement ‘Bank Is Equipped With An Overall Environment To Sat-
isfy The Customers’

STRONGLY DISAGREE

DISAGREE

NEUTRAL

AGREE

STRONGLY AGREE

0 10 20 30 40 50 60 70

INTERPRETATION :
From the bar 4.9 It is clear that 14% of the respondents strongly agree.
63% of the respondents agree. 32% of the respondents chosen neutral. 6%
of the respondents disagree and 2% of the respondents disagree.

22
Table 4.10 Table Showing Classification Of Respondents Based On
E-Banking Services Provided By The Bank

Particulars No. of respondents Percentage %

Yes 47 94
No 3 6
Total 50 100
Source primary data

Chart 4.10 Pie Chart Showing Classification Of Respondents Based On

E-Banking Services Provided By The Bank

94

yes no

INTERPRETATION :
From the pie chart 4.10 It is clear that 94% of the respondents are getting
e-banking services and 6% of the respondents didn’t get any e-banking
services.

23
Table 4.11 Table Showing Mostly Used E-Banking Services Of Respon-
dents
Particulars No. of respondents Percentage %
Online Fund Transfer 22 44
Open FD 1 2
Activate debit cards 2 4
Shopping 9 18
Balance check 4 8
All of the above 12 24
Total 50 100
Source primary data

Chart 4.11 Column Chart Showing Mostly Used E-Banking Services Of

Respondents
50
45
40
35
30
25
20
15
10
5
0
online fund open FD active debit shopping balance check all of the above
transfer cards

INTERPRETATION :
From the column chart 4.11, it is clear that 44% of them are using online
fund Transfer services and 24% are using all of the services of e-banking.
The 18% of them are using e-banking for Shopping and 14% for other ser-
vices.

24
Table 4.12 Table Showing banking service Usage Wise Classification of Re-
spondents

Particulars No. of respondents Percentage %

Extremely 11 22
Very often 31 62
Not so 8 16
Not at all 0 0
Total 50 100
Source primary data

Chart 4.12 Pie Chart Showing Banking Service Usage Wise Classification
Of Respondents

STRONGLY DISAGREE

DISAGREE

NEUTRAL

AGREE

STRONGLY AGREE

0 10 20 30 40 50 60 70

Column1

INTERPRETATION :
From bar chart 4.12 it is clear that 22% of the respondents are ex-
tremely using the banking services and usage of 62% are very often
and usage of 16% is not so.

25
Table 4.13 Table Showing Classification of Respondents based on problems
faced by them.

Particulars No. of respondents Percentage %

Low quality service 11 22
Inadequate promotional 12 24
activities
Inadequate channel of 8 16
service
Excessive fees for basic 19 38
services
Total 50 100
Source primary data

Chart 4.13 Showing Classification of Respondents based on problems faced

by them.

14

22

38

24

16

low quality service inadequate promotional activities

inadequate channel of service excessive fees for basic service

INTERPRETATION :
From pie chart 4.13 it is clear that 38% of the respondents face exces-

26
sive fees for basic services.

Table 4.14 Table Classification of Respondents based on measures to be

taken.

Particulars No. of respondents Percentage %

Customer orientation 17 34
Branch network 9 18
Time stipulation 11 22
Resolving queries in- 13 26
stantly
Total 50 100
Source primary data

Chart 4.14 showing Classification of Respondents based on measures to be

taken.
40

35

30

25

20

15

10

0
Customer orienta- Branch network Time stipulation Resolving queries
tion instantly

INTERPRETATION :
From column chart 4.14 it is clear that 34% of the respondents con-
sider customer orientation as the measure.

27
Table 4.15 Table Showing Classification of Respondents based on recom-
mending the bank to others.

Particulars No. of respondents Percentage %

Yes 43 86
No 7 14
Total 50 100
Source primary data

Chart 4.15 Showing Classification of Respondents based on recommending

the bank to others.

14

86

yes no

INTERPRETATION :
From bar chart 4.15 it is clear that 86% of the respondents recommend
south Indian bank to others and 14% of the respondents won’t recom-
mend

28
5.1 FINDINGS

1. It is clear that majority of the respondents have savings account and no re-
spondents have NRI and fixed account.

2. It is clear that majority of the respondents prefer service fee, bank name,
innovation and quality while selecting the bank.

3. It is clear that majority of the respondents are provided with good service
quality.

4. It is clear that majority of the respondents thinks the banks is good at cus-
tomer service.

5. It is clear that majority of the respondents Have neutral response towards

convenient operating hours.

6. It is clear that majority of the respondents agree with safety of banking ser-
vices in the bank.

7. It is clear that majority of the respondents are fulfilled their customer

needs.

8. It is clear that majority of the respondents agree that the bank updates in-
formation via e-devices.

9. It is clear that majority of the respondents agree that bank have environ-
ment to satisfy customers.

10.It is clear that majority of the respondents have been provided with e-
banking services.

11.It is clear that majority of the respondents mostly used e-banking service is

29
 online fund transfer.

12.It is clear that majority of the respondents use banking service very often.

13.It is clear that majority of the respondents face problem with excessive
fees for basic services.

14.It is clear that majority of the respondents consider customer orientation as

the measure.

15.It is clear that majority of the respondents recommend the bank to others.

5.2 SUGGESSIONS
1. Marketing should be done in a very polite manner so that customer
should attract with it.

2. Banks need to promote and encourage people to use internet banking,

mobile banking etc.

3. Bank is a service industry, so service plays an important role in the

growth of banking. Banks should offer quick service to their customers.

4. Banks should update their website on a regularly basis so that customers

may view new scheme or product launch by particular bank.

5. Marketing person of a bank should know their product very clearly so

that, they explained the customer very confidently.
6. Banks need to arrange meeting with customers, should be convened and
proposed process or any changes in the process should be disclosed and in-
formed to the customers.

30
 5.2 SUGGESSIONS

1. Marketing should be done in a very polite manner so that customer

should attract with it.

2. Banks need to promote and encourage people to use internet banking,

mobile banking etc.

3. Bank is a service industry, so service plays an important role in the

growth of banking. Banks should offer quick service to their customers.

4. Banks should update their website on a regularly basis so that customers

may view new scheme or product launch by particular bank.

5. Marketing person of a bank should know their product very clearly so

that, they explained the customer very confidently.

6. Banks need to arrange meeting with customers, should be convened and

proposed process or any changes in the process should be disclosed and
informed to the customers.

31
5.3 CONCLUTION
Customers for financial services are changing in terms of their wants, needs,
de- sires, expectations and problems and financial service providers have to
under- stand who their customers are, what they prefer, why they buy, who
makes the decision and how the customer uses the products and service.
In conformity with these changes, there should be changes in the bank's ser-
vices, training, attitudes and images, marketing strategies and patterns of or-
ganization and control. New technology driven products blended with the
traditional ones and personalized service will enable banks to extend a vari-
ety of financial service under one roof.

32