A SUMMER TRAINING PROJECT REPORT

ON

“A Study on Customer Relationship Management Practices in India Post

Payments Bank in Varanasi District”

Submitted for the partial fulfillment in third semester course of

MASTER OF BUSINESS ADMINISTRATION
(Session - 2023-2024)

SUBMITTED BY:-. Under the guidance of:-

Shraddha Singh Mr. Sublesh Singh
Roll no.- 2206410700045 Senior Manager of IPPB

Submitted to:-
DEPARTMENT OF BUSINESSADMINISTRATION
ASHOKA INSTITUTE OF TECHNOLOGY AND MANAGEMENT
Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Uttar Pradesh, Lucknow

[1]
 A SUMMER TRAINING PROJECT REPORT
ON

“A Study on Customer Relationship Management Practices in India Post

Payments Bank in Varanasi District”

Submitted for the partial fulfillment in third semester course of

MASTER OF BUSINESS ADMINISTRATION
(Session - 2023-2024)

SUBMITTED BY:-. Under the guidance of:-

Shraddha Singh Mr. Sublesh Singh
Roll no.- 2206410700045 Senior Manager of IPPB

Submitted to:-
DEPARTMENT OF BUSINESSADMINISTRATION
ASHOKA INSTITUTE OF TECHNOLOGY AND MANAGEMENT
Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Uttar Pradesh, Lucknow

Signature of Internal Examiner:- Signature of External Examiner:-

[2]
 2023-24

Project Certificate Forwarded By Supervisor

This is to certify that SHRADDHA SINGH, is a regular student of MBA 2nd year, and
Customer
had successfully completed his summer training project entitled
Relationship Management Practices in India Post Payments Bank for
partial fulfillment of the curriculum of the award of the degree of master of business
administration from Dr. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY,
LUCKNOW, is an original work done by him.

Guided by
Mr. Shublesh Kumar Singh
(Senior Manager, IPPB
Varanasi Branch)

[3]
 Declaration

I, Shraddha Singh, hereby declare that the report entitled "A study on

Customer Relationship Management Practices in India Post

Payments Bank" is a Training work carried out by me independently.

The information presented done is correct to the best of my knowledge

and the analysis is as per the norms and guidelines provided for the

report. I have utilized the requisite concepts and applied the required

methodologies to analyze the data collected to reach the conclusion

present in the report.

Date: Shraddha Singh

Place:- Varanasi MBA 3rd Semester

[4]
 Roll No. - 2206410700045

Acknowledgement

I consider it a privilege to express a few words of gratitude and respect to all who
guided and inspired me in successful completion of this project.

I am overwhelmed with pleasure to express my gratitude towards Mr. Sublesh

Singh (Senior Manager) in India Post Payments Bank for granting this project
to me and giving me an opportunity to work with such an esteemed organization.

It is my sincere duty to do my best so as to recognize as one amongst the most

successful professional, which I always strive to be .This bring along and frame to
my beloved institution, the ASHOKA INSTITUTE OF TECHNOLOGY &
MANAGEMENT.

I also extend particular thanks to our Project Guide Mr. Prashant Pandey for
guiding me in my project. I would also like to thank all the teaching and non
teaching staff member and all others who helped me directly or indirectly in the
successful completion of this project.

There is no love like parents. I pay my most sincere regards to my parents deserves
a very special word of appreciation for their invaluable support encouragement and
pains taking efforts without which this goal would have been a much difficult.

Date:- Shraddha Singh

[5]
Place:- Varanasi MBA 3rd Semester
Roll no. - 2206410700045

TABLE OF CONTENT

S. No. Particulars Page No.

1. Company Profile/ Industry Profile

2. Objective of the Study

3. Scope of the Study

4. Introduction to the Topic

5. Methodology on Data Collection

6. Data Analysis

7. Findings

8. Limitations

9. Suggestions

10. Conclusion

11. Appendices

12. Bibliography

[6]
 13. References

Abstract

Customers are the focal point in the development of successful marketing

strategy. Marketing strategies both influence and are influenced by consumer’s
affect and cognition, behavior and environment. In the banking field a unique
‘Relationship’ exists between the customers and the bank. But because of various
reasons and apprehensions like financial burdens, risk of failure, marketing inertia
etc., many banks are still following the traditional ways of marketing and only
few banks are making attempts to adapt CRM. It is with this background, the
researcher has made a modest attempt towards the idea that CRM can be adapted
uniformly in the banking industry for betterment of Banking Services. The lack of
understanding on Customer Relationship Management (CRM) is always a concern
among the service providers especially banks. Banks have their own way of
managing their relationships with the customers. However, the perception of
customers on CRM practices among banks should also be taken into
consideration. Here in this paper, effort is given to study the comparative
perception of IPPB customers and other nationalized banks customers’ in the
issue of CRM practices. It is observed that the approach of CRM by IPPB and
other nationalized are to some extent same and one but the reach is quiet
distinguishable. It is due to the profile, their capability and the strategy of CRM in
making it and reaching down to customers. On the contrary, it can also be
[7]
asserted that the background of both banks also found as a big cause for reaching
the top CRM. Hence, CRM is an inevitable tool of marketing that can be
considered as Critical Responsibility of Market with regard to Banks in present
context.

The banking industry in India has undergone radical changes due to the
liberalization and globalization measures undertaken since 1991.Today, Indian
banking industry is one of the largest in the world. India Post Payments Bank is
the largest public sector bank in India. There has been a great surge in efficient
customer service. A highly satisfied and delighted customer is a vital non-
financial asset for the banks in the emerging IT era. Customer Relationship
Management (CRM) provides interactive, personalized and relevant
communication with customers to develop and maintain relationships.CRM is a
tool to retain the 20% customers who give 80% of the revenue. This paper
explores the perception of Customer Relationship Management with respect
to the Customers of India Post Payments Bank in Varanasi district of Uttar
Pradesh. The study is based on the responses of 100 customers of India Post
Payments Bank branches in Varanasi district.

[8]
 Introduction to Indian Banking System

Banks and banking in India have been classified into various groups. In its
activities, each group has its own set of advantages and disadvantages. They have
their own distinct target audience. Some work exclusively in the rural sector, while
others work in both rural and urban settings. The majority of them only serve cities
and major towns.

The banking industry is one of the most essential financial pillars of the financial
sector, and it is critical to the economy’s functioning. It is critical for a country’s
economic development that its trade, industrial, and farm funding needs are
handled with greater commitment and responsibility. As a result, a country’s
progress is inextricably related to the development of banking. In today’s
economy, banks should be viewed as development leaders rather than money
merchants. They play a crucial role in deposit mobilization and credit disbursement
to many sectors of the economy.

The Reserve Bank of India (RBI), commercial banks, cooperative banks, and
development banks comprise India’s banking system (development finance
institutions). The core of India’s financial system is these institutions, which serve
as a meeting point for savers and investors. Banks play a vital role in the
development of poor countries by mobilizing resources and efficiently allocating
them.

[9]
 The features of the Indian banking system:

1. Deals with Money

A bank’s main characteristic is that it handles all financial transactions. You can
put your money in a bank account, for example, to store it safely, and you will be
interested in the money you save in the account.

2. Provides Loans
Banks gain additional money by providing loans for a variety of products. The
bank earns the additional funds by lending money to the qualifying person at
predetermined rates.

Banks now provide loans for a variety of purposes, including study loans, vehicle
loans, housing loans, personal loans, and so on.

3. Withdrawal and payment facilities

Customers can use a bank’s numerous payment and withdrawal services to receive
their money quickly and easily. Customers can use cheques and draughts to
withdraw money, as well as ATMs established by banks at various sites throughout
the city.

4. Internet services
Modern banks now provide internet services, which is another element of a bank.
The growth of the internet and its integration into the banking industry has made it
even easier for customers to do numerous transactions. Through their apps, banks
are providing online services. You can pay your bills, buy groceries, and shop
without having cash on you.

[10]
5. Business
Banking sole purpose is not to supply consumers with banking services. To make
additional money, all banks are involved in subsidiary enterprises. Their only
responsibility is to deliver optimum customer satisfaction and maximum interest
rates in order to attract more clients to bank with them. To make a profit, money is
moved from one hand to the next.

Indian banking system meaning

“A banking system is a collection of institutions that provides us with financial

services. These organizations are in charge of running a payment system, making
loans, accepting deposits, and assisting with investments.”

Types of Bank in India

Banks can be classified into various types. Given below are the bank types in
India:-

 Central Bank
 Cooperative Banks
 Commercial Banks
 Regional Rural Banks (RRB)
 Local Area Banks (LAB)
 Specialized Banks
 Small Finance Banks
 Payments Banks

[11]
 1) Central Bank
The Reserve Bank of India is the central bank of our country. Each country has a
central bank that regulates all the other banks in that particular country.

The main function of the central bank is to act as the Government’s Bank and
guide and regulate the other banking institutions in the country. Given below are
the functions of the central bank of a country:

 Guiding other banks

 Issuing currency
 Implementing the monetary policies
 Supervisor of the financial system
In other words, the central bank of the country may also be known as the banker’s
bank as it provides assistance to the other banks of the country and manages the
financial system of the country, under the supervision of the Government.

2) Cooperative Banks
These banks are organised under the state government’s act. They give short term
loans to the agriculture sector and other allied activities.

The main goal of Cooperative Banks is to promote social welfare by providing

concessional loans. They are organised in the 3 tier structure:-

➢ Tier 1 (State Level) – State Cooperative Banks (regulated by RBI,

State Govt, NABARD)
 Funded by RBI, government, NABARD. Money is then
distributed to the public

[12]
  Concessional CRR, SLR applies to these banks. (CRR-
3%, SLR- 25%)
 Owned by the state government and top management is
elected by members

➢ Tier 2 (District Level) – Central/District Cooperative Banks

➢ Tier 3 (Village Level) – Primary Agriculture Cooperative Banks

3) Commercial Banks

 Organized under the Banking Companies Act, 1956

 They operate on a commercial basis and its main objective is profit.
 They have a unified structure and are owned by the government, state, or
any private entity.
 They tend to all sectors ranging from rural to urban
 These banks do not charge concessional interest rates unless instructed by
the RBI
 Public deposits are the main source of funds for these banks
The commercial banks can be further divided into three categories:

1. Public sector Banks – A bank where the majority stakes are owned by the
Government or the central bank of the country.
2. Private sector Banks – A bank where the majority stakes are owned by a
private organization or an individual or a group of people
3. Foreign Banks – The banks with their headquarters in foreign countries and
branches in our country, fall under this type of bank

[13]
 4) Regional Rural Banks (RRB)

 These are special types of commercial Banks that provide concessional

credit to agriculture and rural sector.
 RRBs were established in 1975 and are registered under a Regional Rural
Bank Act, 1976.
 RRBs are joint ventures between the Central government (50%), State
government (15%), and a Commercial Bank (35%).
 196 RRBs have been established from 1987 to 2005.
 From 2005 onwards government started merger of RRBs thus reducing the
number of RRBs to 82
 One RRB cannot open its branches in more than 3 geographically connected
districts.

5) Local Area Banks (LAB)

 Introduced in India in the year 1996

 These are organized by the private sector
 Earning profit is the main objective of Local Area Banks
 Local Area Banks are registered under Companies Act, 1956
 At present, there are only 4 Local Area Banks all which are located in South
India

6) Specialized Banks
Certain banks are introduced for specific purposes only. Such banks are called
specialized banks. These include:

[14]
  Small Industries Development Bank of India (SIDBI) – Loan for a small
scale industry or business can be taken from SIDBI. Financing small
industries with modern technology and equipments is done with the help of
this bank.
 EXIM Bank – EXIM Bank stands for Export and Import Bank. To get loans
or other financial assistance with exporting or importing goods by foreign
countries can be done through this type of bank
 National Bank for Agricultural & Rural Development (NABARD) – To
get any kind of financial assistance for rural, handicraft, village, and
agricultural development, people can turn to NABARD.
There are various other specialized banks and each possesses a different role in
helping develop the country financially.

7) Small Finance Banks

As the name suggests, this type of bank looks after the micro industries, small
farmers, and the unorganized sector of the society by providing them loans and
financial assistance. These banks are governed by the central bank of the country.

Given below is the list of the Small Finance Banks in our country:

 AU Small Finance Bank

 Equitas Small Finance Bank
 Jana Small Finance Bank
 Northeast Small Finance Bank
 Capital Small Finance Bank
 Fincare Small Finance Bank

[15]
  Suryoday Small Finance Bank
 Ujjivan Small Finance Bank
 Esaf Small Finance Bank
 Utkarsh Small Finance Bank

8) Payments Banks
A newly introduced form of banking, the payments bank have been conceptualized
by the Reserve Bank of India. People with an account in the payments bank can
only deposit an amount of up to Rs.1,00,000/- and cannot apply for loans or credit
cards under this account.

Options for online banking, mobile banking, the issue of ATM, and debit card can
be done through payments banks. Given below is a list of the few payments bank
in our country:

• Airtel Payments Bank

• India Post Payments Bank

• Fino Payments Bank

• Jio Payments Bank
• Paytm Payments Bank
• NSDL Payments Bank

[16]
 Functions of Banks

1. Acceptance of deposits from the public.

2. Provide demand withdrawal facility.

3. Lending facility.

4. Transfer of funds.

5. Issue of drafts.

6. Provide customers with locker facilities.

7. Dealing with foreign exchange.

[17]
 The importance of banking system in India

 Insufficient capital formation makes economic development difficult in a country.

Commercial banks are encouraging individuals to save their money and mobilize it
for beneficial uses at this time.
 Credit creation boosts output, boosting economic growth and, in turn, creating a
large number of job prospects.
 Commercial banks promote balanced regional development in India by providing
the required financial infrastructure and money to backward areas.
 By providing timely loans to agricultural farmers, commercial banks aid in the
promotion of the primary sector.
 They offer advanced loans to consumers for the purchase of assets such as
residences, consumer goods, and furniture, among other things, and they encourage
individuals to pursue a higher level of living.
 The banking sector plays a significant part in the Indian economy, as commercial
banks support the Indian government in achieving each aim of the country’s
planned economic development.
 For both internal and external trade, commercial banks offer the necessary
financial backing and infrastructure.

[18]
 Historical Overview of Indian Banking System

Banking in India forms the base for the economic development of the country.
Major changes in the banking system and management have been seen over the
years with the advancement in technology, considering the needs of people.
The History of Banking in India dates back to before India got independence in
1947 and is a key topic in terms of questions asked in various Government exams.
In this article, we shall discuss in detail the evolution of the banking sector in
India.

The banking sector development can be divided into three phases:

Phase I: The Early Phase which lasted from 1770 to 1969.

Phase II: The Nationalisation Phase which lasted from 1969 to 1991.

Phase III: The Liberalisation or the Banking Sector Reforms Phase

which began in 1991 and continues to flourish till date.

[19]
A pictorial representation of the evolution of the Indian
banking system over the years:

[20]
 Pre Independence Period (1786-1947)

The first bank of India was the “Bank of Hindustan”, established in 1770 and
located in the then Indian capital, Calcutta. However, this bank failed to work and
ceased operations in 1832.

During the Pre Independence period over 600 banks had been registered in the
country, but only a few managed to survive.

Following the path of Bank of Hindustan, various other banks were established in
India. They were:

 The General Bank of India (1786-1791)

 Oudh Commercial Bank (1881-1958)
 Bank of Bengal (1809)
 Bank of Bombay (1840)
 Bank of Madras (1843)
During the British rule in India, The East India Company had established three
banks: Bank of Bengal, Bank of Bombay and Bank of Madras and called them the
Presidential Banks. These three banks were later merged into one single bank in
1921, which was called the “Imperial Bank of India.”

The Imperial Bank of India was later nationalised in 1955 and was named The
State Bank of India, which is currently the largest Public sector Bank.

Given below is a list of other banks which were established during the Pre-
Independence period:

[21]
Pre-Independence Banks in India

Bank Name Year of Establishment

Allahabad Bank 1865

Punjab National Bank 1894

Bank of India 1906

Central Bank of India 1911

Canara Bank 1906

Bank of Baroda 1908

If we talk of the reasons as to why many major banks failed to survive during the
pre-independence period, the following conclusions can be drawn:

 Indian account holders had become fraud-prone

 Lack of machines and technology
 Human errors & time-consuming
 Fewer facilities
 Lack of proper management skills
Following the Pre-Independence period was the post-independence period, which
observed some significant changes in the banking industry scenario and has till
date developed a lot.

[22]
 Post Independence Period (1947-1991)

At the time when India got independence, all the major banks of the country were
led privately which was a cause of concern as the people belonging to rural areas
were still dependent on money lenders for financial assistance.

With an aim to solve this problem, the then Government decided to nationalise the
Banks. These banks were nationalised under the Banking Regulation Act, 1949.
Whereas, the Reserve Bank of India was nationalised in 1949.

Following it was the formation of State Bank of India in 1955 and the other 14
banks were nationalised between the time duration of 1969 to 1991. These were
the banks whose national deposits were more than 50 crores.

Given below is the list of these 14 Banks nationalised in 1969:

1. Allahabad Bank
2. Bank of India
3. Bank of Baroda
4. Bank of Maharashtra
5. Central Bank of India
6. Canara Bank
7. Dena Bank
8. Indian Overseas Bank
9. Indian Bank
10. Punjab National Bank

[23]
 11. Syndicate Bank
12. Union Bank of India
13. United Bank
14. UCO Bank
In the year 1980, another 6 banks were nationalised, taking the number to 20
banks. These banks included:

1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental Bank of Comm.
5. Punjab & Sind Bank
6. Vijaya Bank

Apart from the above mentioned 20 banks, there were seven subsidiaries of
SBI which were nationalised in 1959:

1. State Bank of Patiala

2. State Bank of Hyderabad
3. State Bank of Bikaner & Jaipur
4. State Bank of Mysore
5. State Bank of Travancore
6. State Bank of Saurashtra
7. State Bank of Indore

[24]
All these banks were later merged with the State Bank of India in 2017, except for
the State Bank of Saurashtra, which merged in 2008 and State Bank of Indore,
which merged in 2010.

Note: The Regional Rural Banks in India were established in the year 1975 for the
development of rural areas in India.

Impact of Nationalisation
There were various reasons why the Government chose to nationalise the banks.
Given below is the impact of Nationalising Banks in India:

 This lead to an increase in funds and thereby increasing the economic

condition of the country
 Increased efficiency
 Helped in boosting the rural and agricultural sector of the country
 It opened up a major employment opportunity for the people
 The Government used profit gained by Banks for the betterment of the
people
 The competition decreased, which resulted in increased work efficiency
This post Independence phase was the one that led to major developments in the
banking sector of India and also in the evolution of the banking sector.

[25]
 Liberalization Period (1991-Till Date)

Once the banks were established in the country, regular monitoring and regulations
need to be followed to continue the profits provided by the banking sector. The last
phase or the ongoing phase of the banking sector development plays a hugely
significant role.

To provide stability and profitability to the Nationalised Public sector Banks, the
Government decided to set up a committee under the leadership of Shri. M
Narasimham to manage the various reforms in the Indian banking industry.

The biggest development was the introduction of Private sector banks in India. RBI
gave license to 10 Private sector banks to establish themselves in the country.
These banks included:

1. Global Trust Bank

2. ICICI Bank
3. HDFC Bank
4. Axis Bank
5. Bank of Punjab
6. IndusInd Bank
7. Centurion Bank
8. IDBI Bank
9. Times Bank
10. Development Credit Bank

[26]
The other measures taken include:

• Setting up of branches of the various Foreign Banks in India.

 No more nationalisation of Banks could be done.

 The committee announced that RBI and Government would treat
both public and private sector banks equally.
 Any Foreign Bank could start joint ventures with Indian Banks.
 Payments banks were introduced with the development in the field
of banking and technology.
 Small Finance Banks were allowed to set their branches across
India.
 A major part of Indian banking moved online with internet banking
and apps available for fund transfer.

[27]
 Introduction to IPPB Bank

India Post Payments Bank, abbreviated as IPPB, is a division of India

Post which is under the ownership of the Department of Post, a department
under Ministry of Communications of the Government of India. Opened in 2018,
as of January 2022, the bank has more than 7 crore customers.
India Post Payments Bank (IPPB) was setup under the Department of Post,
Ministry of Communication with 100% equity owned by Government of India.
IPPB was launched as a pilot project on 30 January 2017 in Ranchi (Jharkhand)
and Raipur (Chhattisgarh), with the objective of being present across India by the
FY 2018-2019. IPPB has expanded its strength across India covering post offices,
through a network one Branch and 649 Banking outlets manned by
Business Correspondents, working on a hub and spoke model.

Accessibility:
IPPB will be leveraging the vast postal network of nearly 1.55 lakh post offices
and 3.0 lakh postal employees in every district, town and village of the country to
serve you. As we continue to expand our services to every doorstep, our postman
will become your trusted financial services advisor, working hard to ensure that
you get what you need - be it receiving your money in the fastest way possible,
using it at ease for essentials, saving for your loved ones, or even investing for a
bright future. For us, every customer is important, every transaction is
significant, and every deposit is valuable no matter what the value.

That is what we truly mean when we say – Aapka Bank, Aapke Dwaar.

[28]
Approachability:
Last mile delivery of services through the postman – a son of the soil and a friend,
philosopher and financial guide to the people.

Ease of Banking:
IPPB integrates easily with the existing bouquet of post office services, extends the
services though a frictionless shift.
The last mile delivery agent is empowered with financial knowledge and
intuitively designed digital tools to offer financial services and guidance with
relative ease.

Digital Ecosystem:

 Macro Level: IPPB’s 360-degree payments suite creates transparency,

removes corruption and leakages and contributes to a less-cash economy.

 Individual Level: Provides customers with the ability to transact without

cash through digital channels and enable small businesses to accept digital
payments, thus closing the loop.

[29]
 Our Aspiration: Your Financial Empowerment

 Wealth grows from wealth – even small savings can go a long way
towards ensuring a better future.
 Securing the unsecured – small investments and insurance to protect
you against unforeseen events.
 Ensuring financial freedom – money in your hands whenever you need
it.

India Post Payments Bank is gearing up to lead the next revolution of banking as
one of the largest financial inclusion networks in India, covering both urban and
rural areas. Our new model of banking aims to enable individuals, small
businesses, merchants and others to utilise full-fledged digital banking services.
We are paving the way for India's largest banking network to reach every corner of
the nation.

Vision & Mission

IPPB’s Vision: Building the most accessible, affordable and trusted

bank for the common man.

IPPB’s Mission: Spearheading financial inclusion by removing barriers

and reducing costs for accessing banking services.

[30]
 Our Network
IPPB provides simple and efficient banking solutions by providing access to all its
customers through its digital and mobile platforms. We leverage a nation-wide
distribution network of the Department of Posts – one of the largest postal services
in the world – to bring assisted banking services within the reach of every Indian,
both rural and urban.

Current Operational Strength

 One controlling branch and 649 Banking outlets (~one banking outlet in
every district).
 1,36,078 Post Offices across urban and rural India, activated as banking
access points.
 22,251 Head Post Offices and Sub Post Offices across urban and rural India
to deliver banking services.
 2 Lacs+ Postmen/GDS to provide Doorstep banking services.

[31]
Organizational Structure of IPPB

[32]
 History of IPPB Bank

On 19 August 2015, the India Post received licence to run a payments bank from

the Reserve Bank of India. On 17 August 2016, it was registered as a public

limited government company for setting up a payments bank. IPPB is operating

with the Department of Posts under Ministry of Communications.

The pilot project of IPPB was inaugurated on 30 January 2017

at Raipur and Ranchi. In August 2018, the Union Cabinet approved a cost

of ₹1,435 crore (US$180 million) for setting up the bank. The first phase of the

bank with 650 branches and 3,250 post offices as access points was inaugurated on

1 September 2018. Over ten thousand postmen have been roped into the first

phase. By September 2020, the bank had acquired about 3.5 crore customers. The

bank had acquired about 4 crore customers by December 2020. In January 2022,

India Post Payments Bank has crossed 8 crore customers mark.

[33]
 Introduction to the Topic

Concept of CRM

Customer Relationship Management is a strategic orientation that identifies the

most important long-term customers and develops and understanding of how

these customers can be retained. CRM can be defined as “the strategies,

processes, people and technologies used by companies to successfully attract and

retain customers for maximum corporate growth and profit”.

Parvatiyar and Sheth (2000) defined CRM as “a comprehensive strategy and

process of acquiring and partnering with selective customers to create superior

value for the company and the customer”.

[34]
 What is Customer Relationship Management?

Customer relationship management is one of the strategies to manage customer

as it focuses on understanding customers as individuals instead of as part of a
group (Lambert, 2010). Managing customer relationships is important and
valuable to the business. The effective relationship between customers and banks
depends on the understanding of the different needs of customers at different
stages. The ability of banks to respond towards the customers’ needs make the
customers feel like a valuable individual rather than just part of a large number
of customers.
CRM manages the relationships between a firm and its customers. Managing
customer relationships requires managing customer knowledge. CRM and
knowledge management are Pinnacle Research Journals 69directed towards
improving and continuously delivering good services to customers. To
understand more in customer relationship management, we first need to
understand three components which are customer, relationship and their
management (Peppers and Rogers, 2004).More often, managers always make
mistakes by seeing customers’ satisfaction from their eye not from customers’
eye (Peppers and Rogers, 2004). Banking sector is a customer-oriented service
where the customer is the KEY focus. Research is needed in such sector to
understand customers’ need and attitude so as to build a long relationship with
them. Customer Relationship Management includes all the marketing activities,
which are designed to establish, develop, maintain, and sustain a successful
relationship with the target customers. CRM identifies the present and future
markets, selects the markets to serve and identifies the progress of existing and
new services. Thus, CRM is a managerial philosophy that seeks to build long
[35]
term relationships with customers. CRM can be defined as the development and
maintenance of mutually beneficial long-term relationships with strategically
significant customers (Buttle, 2002). It is the establishment, development,
maintenance and optimization of long term mutually valuable relationships
between consumers and the organizations. Successful customer relationship
management focuses on understanding the needs and desires of the customers
and is achieved by placing these needs at the heart of the business by integrating
them with the organization’s strategy, people, technology and business
processes.
Customer Relationship Management has emerged as a popular business strategy
in today’s competitive environment. It is a discipline which enables the
companies to identify and target their most profitable customers. Customer
Relationship Management has been in India for over two decades but its
penetration into the industry in general and financial service sector in particular
has not been very impressive. With the entry of many foreign banks and setting
up of many private sector banks, there is an increased competition in the banking
sector to attain a competitive advantage. Banks have slowly but surely realized
the importance of building and maintaining customer relationships.
CRM is a holistic strategy which can help the banks to become customer
oriented and implement customer-focused strategies, which in turn will help
them build long lasting relationships with the customers and hence increase their
profits.

[36]
 Aims of CRM

The CRM is a new technique in marketing where the marketer tries to develop
long term relationship with the customers to develop them as life time customers.
CRM aims to make the customer climb up the ladder of loyalty.

The company first tries to determine who are likely prospects i.e. the people
who have a strong potential interest in the product and ability to pay for it. The
company hopes to convert many of its qualified prospect into first time
customers and then to convert those first time customers into repeat customers.
Then the company tries to convert these repeat customers into clients – they are
those people who buy only from the company in the relevant product categories.
The next challenge for the company is to convert this client into advocates.
Advocates are those clients who praise the company and encourage others to buy
from it.

The ultimate challenge is to convert these advocates into partners where the
customers and the clients work actively together to discover ways of getting
mutual benefit.

Thus in CRM the key performance figure is not just current market share but
share of life time value by converting customers into partners.

In CRM the company tries to identify that small percentage (20%) of key
account holders whose contribution to the company revenues is high (80%). So
from this point of view, CRM is also known as KEY ACCOUNT
MANAGEMENT.

[37]
Why Customer Relationship Management?

 A satisfied customer in 10 years will bring100 more customers to

the company.

 It costs 7 times more to attract a new customer than to serve an old

one.

 20% of the company’s loyal customers account for 80% of its

revenues. (Pareto’s principle).

 The chances of selling to an existing customer are 1in2, the chances

of selling to a new customer are 1 in 16.

[38]
Eight ways to keep customers for life:-

1) Every part of the company’s marketing effort should be geared towards

building lifetime relationships.

2) People want to do business with friendly people. To have effective relations, a

friendly attitude must permeate in the organization.

3) Information Technology developments should be positively used to serve the

customers.

4) The company should always be flexible to bend its rules and procedures in the
client’s favor.

5) The company should communicate with its customers even when it is not
trying to sell something.

6) The company can communicate and develop stronger customer bonding by

providing financial and social benefits.

7) The company should try to know all its customers including their lifestyles,
hobbies, likes and dislikes etc.

8) The company should make it appoint to deliver more than what is promised.

[39]
 CRM in Banking Sector

Over the last few decades, technical evolution has highly affected the banking
industry. For more than 200 years, banks were using branch based operations.
Since the 1980s, things have been really changing with the advent of multiple
technologies and applications. Different organizations got affected from this
revolution; the banking industry is one of it (Sherif, 2002).

In this technology revolution, technology based remote access delivery channels

and payment systems surfaced. ATM displaced cashier tellers, telephone
represented by call centers replaced the bank branch, internet replaced the mail,
credit cards and electronic cash replaced traditional cash transactions, and
interactive television will replace face-to-face transactions (Sherif, 2002). In
recent years, banks have moved towards marketing orientation and the adoption
of relationship banking principles. The key motivators for embracing marketing
principles were the competitive pressure that arose from the deregulation of the
financial services market particularly in India. This essentially exposed clearing
banks and the retail banking market to increased competition and led to a
blurring of boundaries in many traditional product markets (Durkin, 2004). The
bank would need a complete view of its customers across the various systems
that contain their data. If the bank could track customer behavior, executives can
have a better understanding, a predicative future behavior and customer
preferences. The data and applications can help the bank to manage its customer
relationship to continue to grow and evolve (Dyche, 2001).

[40]
According to Stone et al. (2002) most sectors of the financial services industry
are trying to use CRM techniques to achieve a variety of outcomes. In the area of
strategy, they are trying to:

a. Create consumer-centric culture and organization;

b. Secure customer relationships;
c. Maximize customer profitability;
d. Integrate communications and supplier–customer interactions
across channels;
e. Identify sales prospects and opportunities;
f. Support cross and up-selling initiatives;
g. Manage customer value by developing propositions
aimed at different Customer segments;
h. Support channel management, pricing and migration.

CRM is a sound business strategy to identify the bank’s most profitable customers
and prospects, and devotes time and attention to expanding account relationship
with those customers through individualized marketing, reprising, discretionary
decision making, and customized service through the various sales channels that
the bank uses. Any financial institution seeking to adopt a customer relationship
model should consider six key business requirements (Chary & Ramesh, 2012),
they are:

[41]
 1. Create a customer-focused organization and infrastructure.
2. Gaining accurate picture of customer categories.
3. Assess the lifetime value of customers.
4. Maximize the profitability of each customer relationship.
5. Understand how to attract and keep the best customers.
6. Maximize rate of return on marketing campaigns.

CRM is developing into a major element of corporate strategy for many

organizations (Rangarajan, 2010; Shibu, 2011). A greater focus on CRM is the
only way the banking industry can protect its market share and boost growth.
With intensifying competition, declining market share, deregulations, smarter
and more demanding customers, there is competition between the banks to attain
a competitive advantage over one another or for sustaining the survival in
competition. In India, the banking sector has been operating in a very stable
environment from last thirty-forty years. In current scenario of banking sector,
the falling of interest rates and tough competition between these players had
made Indian bankers to realize that the purpose of their business is to create and
retain a customer and to see that the entire business process is consistent with an
integrated effort to discover, retain and satisfy customer needs. But the success
of' CRM Strategy depends upon its ability to understand the needs of the
customer and to integrate them with the organization's strategy, people,
technology and business process. Financial services are in a structural change
whereby competition and customer demands are increasing with the
organization's strategy, people, and technology and business process. Financial
services are an a structural change whereby competition and customer demands
are increasing.
[42]
 The CRM at IPPB Bank

The need for system automation became critical at IPPB. The challenge was to
meet the demanding service and fulfillment levels of the growing. IPPB was on
the lookout for a technology solution that was easy to implement, cost-effective
and robust to expand its presence in the insurance sector and achieve a higher
degree of service differentiation. Although the organization had a centralized
system, most of the work was done manually. They had client/server architecture
in place. But it was not integrated with the legacy systems. Early on, the top
management realized that technology was a crucial driver for product and service
delivery. Although using the extensive IPPB group platform for cross-selling
products and services was a viable option, reaching and engaging the customer
cost effectively required a technology backbone. Earlier, they had little enterprise
software to support its business and the processes were carried out in an ad hoc
manner.

[43]
Benefits of CRM in IPPB Bank :-

• CRM in IPPB bank Focuses on the Customer:- CRM manages to places

the customer at the focal point of the organization in order to cater to his
needs, satisfy him and thus maximize the profits of the organization.
Banking CRM understands the needs of the customer and integrates it with
people, technology, resources and business processes. It focuses on the
existing data available in the organization and uses it to improve its
relationship with customers. Banking CRM uses information and analytical
tools to secure customer focus. Thus it is completely essential that banks
implement CRM in order to secure this.

• Satisfied Customers:- It is important to make a customer feel as if he / she

is the only one - this will go a long way in satisfying and retaining them.
Bankers need a return on investment and it has been proved that increase in
customer satisfaction more than contributes a fair share to ROI. The main
value of CRM banking lies in satisfaction and increased retention of
customers.

• Centralized Information:- CRM banking solutions manage to clearly

integrate people, processes and technology. CRM in IPPB bank provides
banks with a holistic view of all bank transactions and customer
information as well and stores it in a single data warehouse where it can be
studied later.
[44]
• CRM Boosts IPPB Banks:- Banking CRM software meets the needs of
banks of all sizes in terms of attaining the required accuracy and
understanding of customers. Merely assuming that banks that are
considerably smaller in size have a better customer approach and are able
to deal with their customers in a better manner is wrong.

• Customer Segregation:- CRM enables a bank to see which customers are

costing them and which are bringing benefits. CRM provides them with the
required analytical tools that will help them focus on the importance of
segregating these two and doing what is required to avail of the maximum
returns.

• Increased Operational Efficiencies and Collaboration:- CRM solution

supports business automation for processes and business activities,
eliminating manual tasks and reducing process time. Straight through
processing abilities enhance reduction in turnaround and processing time,
increasing output and enabling speedy completion of tasks. The
multilingual Web-based single repository of information enables remotely
located bankers to collaborate and transact seamlessly.

• Customer Information Consolidation:- Instead of customer information

being stored in product centric silos, (for e.g. separate databases of savings
account & credit card customers), with CRM the information is stored in a
customer centric manner covering all the products of the bank. CRM
integrates various channels to deliver a host of services to customers, while
aiding the functioning of the bank.
[45]
• 360-degree view of company:- This means whoever the bank speaks to,
irrespective of whether the communication is from sales, finance or
support, the bank is aware of the interaction. Removal of inconsistencies of
data makes the client interaction processes smooth and efficient, thus
leading to enhanced customer satisfaction.

• Personalized sales home page:- CRM can provide a single view where
Sales Mangers and agents can get all the most up-to-date information in
one place, including opportunity, account, news, and expense report
information. This would make sales decision fast and consistent.

• Operational Inefficiency Removal:- CRM can help in Strategy

Formulation to eliminate current operational inefficiencies. An effective
CRM solution supports all channels of customer interaction including
telephone, fax, e-mail, the online portals, wireless devices, ATMs, and
face-to-face contacts with bank personnel. It also links these customer
touch points to an operations center and connects the operations center with
the relevant internal and external business partners.

[46]
CHALLENGES AND IMPLEMENTATION OF CRM

 The difficulty of obtaining a complete view of customers.

 The need to move away from disjointed, standalone, and inconsistent

channels to provide a cohesive, multichannel offering.

 The burden of disconnected legacy systems and disparate databases that

store client financial data.

 The cost and complexity of meeting stringent government regulatory and

client security and privacy requirements.

 The pressure on margins and growth prospects from increased

competition.

 The costs associated with retaining customers and developing customer

loyalty.

Although CRM can help banking institutions efficiently manage their

customers, many banks fail to meld the concept into the prevailing work
culture. But the high incidence of CRM failure has very little to do with
the CRM concept itself. Usually it's a case of the banks failing to pay
attention to customer data they already have. A lot of banks
underestimate the magnitude of CRM. They tend to treat it just like any
other application technology, without realizing that CRM, if done
properly, is a strategic initiative that touches all areas of an organization.

[47]
 Banks and Respective CRM

Functions like cash management, proposal details and issuing policies all happen
on the portal. Having deployed WebLogic, IPPB is able to run its cycle-all its
processes right from claims processing to CRM-on the portal. Some features of
the system are load balancing, effective code deployment and clustering support
(24x7). Plans are afoot to use the portal for providing self service to customers,
partners and employees. One can just come in, log on to the portal, and access
any kind of information. SBI implemented the system in a different manner.
With this initiative, IPPB has derived quite a few benefits. For instance, it has
been able to reduce the Turnaround Time (TAT). “Because of this initiative they
could spot a few processes that would otherwise never be realized. they have
outsourced some routine work which was done centrally and was manual. Now,
irrespective of the location of the work, it’s done through the portal and they are
able to manage it better.

[48]
 Saving time and money

Process improvements are evident. All of this happened with minimal system
changes without adding to the existing infrastructure The solution has also
brought down by 50 percent the time taken for specific processes like cash
management. With a view to understanding the data quality gaps and to develop
a road map to closing them, IPPB engaged Spectrum Business Support Ltd.’s
Data fix Solutions team (now Data fix Technologies Pvt. Ltd.) to undertake a
Data Quality Study and Audit (DQ Audit). There were requirements of time and
funds to obtain a true foundation of customer-oriented information, by running a
De-duplication pilot on a significant portion of the migrated Phase I data,
numbering 3.3 million records.

Data Quality Consulting and Audit:

➢ Define Data Quality Audit Project Scope identifying DQ dimensions, gaps

and parameters to be studied.

➢ Data Quality Study including defining Business Rules and Domain Rules
for conducting the DQ Audit.

➢ DQ Audit Process and presentation of results including listing of DQ

problems that would likely hamper IPPB's information management and
Customer Relationship Management strategy.

[49]
 Objectives of CRM

The main objective of the study is to examine the importance of CRM practices
in banking sector, with a special reference to India Post Payments Bank in
varanasi district.

The other specific objectives of the study are:

➢ To study the perception of the customers as to CRM of the banks with respect
to service quality management,

➢ To study the perception of the customers as to CRM of the banks with respect to
customer interaction management,

➢ To study the concept and use of CRM in banking sector.

➢ To find out the impact of CRM on the profitability of the organization.
➢ To study the role of information technology in CRM.
➢ To diagnose the customer relationship management in banking sector for
relationship between the customers and banks.

➢ To analyze the CRM strategies adopted.

➢ To study the CRM Practices in Banking Sector.
➢ To study the Benefits of CRM context in Banking Sector.

[50]
 Scope of the study
As we know that customers is regarded as the king customers are the life lines of
the business. No business can be done without them. But in the competitive
market you can get the customer but the more difficult is to retain the customers
and this can be done if we satisfy customers from head to toe. If we will not
satisfy the customers then they will leave our organization and join other, today
if the organization has the largest customer then it may be possible it cannot
provide the best services to all these customers.

So I am working on the project of Customer Relationship Management practices

in IPPB bank. The main objective of the project is to determine how this bank
has the largest customer base and how it is providing the best services to
customers. How it is providing the services individual to each customer
irrespective of whole customer. In last to find that the customer is satisfy from
these various products and services of bank from their dealings, their facilities
provided, their behavior with the customers etc.

As to survive and to make profits, the bank has to strengthen its customer’s base
and it can be done only through the customer’s satisfaction and maintaining long
term relation. And for this customer’s behavior and customer’s demand should
analyzed and that is what I try to do in this report.
The main Scope of the study is–
1. To find out the customer satisfaction level.
2. To find out why customers have an accounting more than one bank.
3. To find the pitfall in the services of the bank.
4. To throw light on how banks are meeting the needs of customers
separately in order to maintain long relation.
[51]
 NEED FOR THE STUDY

The banking industry was selected for CRM research because, in general banks are

more advanced in terms of technology adoption than many other organizations.

The reasons is that other organizations do not usually require the level of

information from their customers which banks do; banks keeps a lot of in depth

information about their customers. Therefore, the CRM system currently used in

banks need to be more robust to be able to handle such sensitive information about

different types of customers.

[52]
 PRINCIPLES OF CRM

 Customer focus:- A customer is a person or group of persons who receives

the product or service—the final output of a process or group of processes.
A customer is the final arbiter of quality, value and price of a product or
service. A satisfied customer only assigns value to a service, on the contrary,
to a dissatisfied customer a product or service has no value, even if the
concerned service or product has been designed with lot of effort, energy
and cost after a thorough planning.

 Leadership:- Persuasion, judgment and decision-making abilities are the

main attributes of quality leadership. When there is a slight chance of getting
a business but the client is hesitating or in a fix, or not in a position to decide
properly, it should be followed up by the relationship manager by patient
hearing, mild counseling and to stand by the side of the prospective client to
help clear his doubts and to make him feel happy by realizing that he is
going in the right direction and he is very right in choosing his requirements.

 Process approach:- A process transforms an input into desired output by the

use of resources, energies and time. In producing an output there may one
single process or a group of inter-related processes. In case of inter-related
processes, often the output from one process directly forms the input to the
next.

[53]
 System approach:- CRM denotes the management of the entire system and
is not confined to only one or the other sub-systems or functional
departments. CRM is based on a system approach to management. Its
primary objective is to increase value to customers on a continuous basis by
designing and improving organizational processes and systems on a ongoing
basis. Meeting each sub-system may have its own goal but the goal and
objectives of all sub-systems are to be integrated to achieve the overall goal.

 Involvement of people:- The fundamentals of CRM bear the genes of

customer relationship through involvement of people, i.e., the work-force at
the disposal of the organization. The whole gamut of CRM is for the people,
of the people and by the people. People involvement at all levels is essential
for the success of a CRM program. The bank managers and staff must be in
a position to exploit the concept of customer relationship completely.

 Mutually beneficial customer relationship:-The relationship with the

customer should be based on a mutually beneficial relation-ship. A bank
should not concentrate its attention towards earning of profits only, but focus
should be directed to the customers’ wealth creation or value enhancement
with the motto of earning through service. The expenses in terms of time,
effort, recognizing individual needs and offering a customized investment
solution are high. Retention of customers and building a long lasting
relationship is the main criteria under this concept.

[54]
 Methodology on Data Collection
Research Design:- A research design is simply a plan for study in collecting and
analyzing the data. It helps the researcher to conduct the study in an economical
method and relevant to the problem.

Research methodology is a systematic way to solve a research problem. The

methodology should combine economy with efficiency.

Research Design
 The study conducted here is exploratory cum descriptive.
Scope of the study
 The scope of the study is confined to Company India Post Payments
Bank.

Collection of the data

This research work will depend on both primary and secondary data.
• Primary data will be collected by ways of well structured questionnaire that
will be administered by the researcher on banks in Varanasi District.
• Secondary data will be collected from published records of RBI and other
Bank authorities, standard text book and published research papers and
through online portals.
Sample size

The sample size is defined as the number of observations used for determining the
estimations of a given population. The size of the sample has been drawn from the
population. In this project report, I take 100 samples of people from the
population in varanasi district who uses IPPB bank.
[55]
 RESEARCH PROBLEM

Modern Marketing philosophy advocates the concept of CRM that creates

customer delight. This applies to all sectors of Sales and Marketing includes the

banking. In the banking field a unique ‘Relationship’ exists between the

customers and the bank. But because of various reasons and apprehensions like

financial burdens, risk of failure, marketing inertia etc., many banks are still

following the traditional ways of marketing and only few banks are making

attempts to adapt CRM. It is with this background, the researcher has made a

modest attempt towards the idea that CRM can be adapted uniformly in the

banking industry for betterment of Banking Services. The role of CRM is quite

different and distinguishable to traditional type of Marketing CRM participate

not only in Marketing but also in implementing the business as a strategy to

acquire, grow and retain profitable customers with a goal of creating a

sustainable competitive advantage.

[56]
There are four key steps for putting one to one marketing program to work –

Step1: Identify your customers

To launch a one to one initiative the company must be able to locate and contact
a fair number of customers or at least a substantial portion of its valuable
customers. It is crucial to know the customer details as much as possible, not just
their names or address, but their habits, preferences and so forth.

Step2: Differentiating your customers

Customers are different in two principal ways; they represent different levels of
value and have different needs. Once the company identifies its customers
differentiating them will help the company to focus its efforts to gain the most
advantage with the most valuable customers.

Step3: Interacting with the customer

Interaction is also a crucial component of a successful CRM initiative. It is
important to remember that interaction just not occur through marketing and
sales channels, customer interact in many different ways with many different
areas of the organization so to foster relationship all the areas of the organization
must be accessible to the customer.

Step4: Customize your enterprise’s behavior

Ultimately to lock a customer into a relationship a company must adapt some
aspect of its behavior to meet customer’s individually expressed needs this might
mean mass customizing a manufactured product or it might involve tailoring
some aspect of the service surrounding the product.
[57]
 Data Analysis & Interpretation
The data is analyzed thorough various diagrams like pie charts, column chart,
bar graphs, line graphs.
To examine the above objectives a survey method was conducted using a well
structured questionnaire. In a total of 60 questionnaires distributed through social
media, out of which only 43 questionnaire were received back.

Gender-wise classification
Particulars No. of Respondents

Male 51

Female 49

Total 100

No. of Respondents
Male Female

49%
51%

Figure 1

Interpretation:- Pie chart shows that 51% of the respondents were male and 49%
of were female.
[58]
 Age- wise Classification
Particulars No. of Respondents

Below 25 60

Between 26-35 12

Between 36-45 7

Between 46-55 12

Above 55 9

Total 100

60
60
50
40
30
20 12 12
7 9
10
0
Below 25 Between Between Between Above 55
26-35 36-45 46-55

No. of Respondents

Figure 2

Interpretation:- This figure shows the percentage of all respondents’ age. It

shows that it covers all the ages of groups for survey.

[59]
 Classification on the basis of Educational Qualification

Particulars No. of Respondents

School 21

Graduate 39

Post Graduate 28

Professional Qualification 12

No. of Respondents
No. of Respondents

Professional Qualification 12

Post Graduate 28

Graduate 39

School 21

Figure 3

Interpretation:- India’s literacy rate is increasing day by day. The overall literacy
rate in India is 69.1 percent. This figure shows that how much the respondents are
literate according to their educational qualification.

[60]
 Classification on the basis of Occupation

Particulars No. of Respondents

Business 17

Profession 15

Pensioner 6

Home Maker 18

Student 29

Others 15

Total 100

No. of Respondents
35
30
25
20
15
10
5
0
Home
Business Profession Pensioner Student Others
Maker
No. of Respondents 17 15 6 18 29 15

Figure 4

Interpretation:- The above figure describes the percentage about the occupation
of respondents.
[61]
 Classification on the basis of Banking Experience

Particulars No. of Respondents

5 years 35
5-10 years 37
11-15 years 12
16-20 years 9
20 years or more 7
Total 100

No. of Respondents
5 years 5-10 years 11-15 years 16-20 years 20 years or more

7%
9%
35%
12%

37%

Figure 5

Interpretation:- The above figure shows that how many years people are dealing
with banks for their service facilities.

[62]
Classification based on People who has using Private Sector
Bank and Public Sector Bank

Particulars No. of Respondents

Public sector bank 63
Private sector bank 37
Total 100

No. of Respondents
having bank account

80
60
40
20
0
Public sector Private
bank sector bank
No. of Respondents 63 37

Figure 6

Interpretation:- This figure indicates that people are using both private and public
sector bank for their banking facilities.

[63]
Classification based on no. of respondents who have saving account
with IPPB bank

Particulars No. of Respondents

Saving Account 75

Fixed deposit Account 9

Current Account 12

Recurring deposit Account 4

Total 100

No. of Respondents
12% 4%

9%
Saving Account
Fixed deposit Account
75% Current Account
Recurring deposit Account

Figure 7

Interpretation:- This figure indicates that most of the respondents have saving
account with their banks.

[64]
 Classification on the basis of Frequency of Transaction

Particulars No. of Respondents

1-2 times 40

3-5 times 30

6-8 times 17

More than 10 times 13

Total 100

No. of Respondents
No. of Respondents

More than 10 times 13

6-8 times 17

3-5 times 30

1-2 times 40

Figure 8

Interpretation:- The above figure shows that how many times in a month people
are contacting with bank in a month.

[65]
 Classification is based on mode of Contacting Bank

Particulars No. of Respondents

Going to Branch 52

Mobile 20

ATM 17

Internet 11

Total 100

Preferred mode of contacting bank

Going to Branch Mobile ATM Internet

11%
17%
52%

20%

Figure 9

Interpretation :- The above pie –chart shows that most of the people are still
preferring to going to bank physically instead of internet facilities.

[66]
 Classification on the basis of reasons for contacting bank

Particulars No. of Respondents

Balance Enquiry 20
Loan Enquiry 11
Complaints 17
Deposits/Withdraw 52
Total 100

No. of Respondents
Reasons for contacting bank

60

40

20

0
Balanc Loan Compl Depos
e Enquir aints its/Wi
Enquir y thdra
y w
No. of Respondents 20 11 17 52

Figure 10

Interpretation:- This figure indicates that most of the respondents are contacting
bank either deposit or withdraw.

[67]
 Services offered by IPPB banks

Figure 11

Interpretation :- The above graph shows that banks are giving all the facilities to
their customers.

[68]
 Respondents opinion about service charges of IPPB
bank

Particulars No. of Respondents

Very high 15

High 20

Moderate 25

Low 40

Services Charged
Very high High Moderate Low

15%
40%
20%

25%

Figure 12

Interpretation:- The above pie chart shows that banks are charging their
customers a nominal rate for their service .

[69]
 Opinion regarding customer satisfaction

Figure 13

Interpretation:- The above graph indicates that respondents are highly satisfied
with the banking services.

[70]
 Opinion regarding customer loyalty

Figure 14

Interpretation:- The above bar graph shows that customers are very loyal to their
banks as they recommend to others ,they trust with their banks blindly etc.

[71]
 Opinion regarding internet services

Figure 15

Interpretation:- The above bar graph shows that respondents are highly satisfied
with the internet services provided by their banks.

[72]
 Findings

Following are some of the most important findings obtained of this study:-

 On the basis of gender, the pie chart that I using, it shows that 51% of the
respondents were male and 49% of were female that uses IPPB bank
services.
 On the basis of age, the majority of people belongs to the age group below
the 25years which is 60% and minority of people belongs to the age group
in between 36-45 years i.e., 7% who uses IPPB bank services.

 India’s literacy rate is increasing day by day. The overall literacy rate in
India is 69.1 percent. The above figure shows that how much the
respondents are literate according to their educational qualification.

 On the basis of occupation, The majority of respondents belongs to the

students i.e., 29% who are more satisfied with the IPPB bank services
according to my survey.
 On the basis of banking experience, The majority of respondents belongs to
the 5 years of banking experience, i.e., 35% and minority of respondents
belongs to the 20 or more years of banking experience, i.e., 7% ,these are
the people who are dealing with banks for their service facilities.
 The majority of people i.e., 63% respondents out of 100, who are using
public sector bank for their banking facilities.

 Most of the respondents have saving account with their banks.

[73]
 The above figure shows that how many times in a month people are
contacting with bank in a month.
 The above figure shows that most of the people are still preferring to going
to bank physically instead of internet facilities.
 Most of the respondents are contacting bank either deposit or withdraw.
 The above figure shows that banks are giving all the facilities to their
customers.
 The above figure shows that banks are charging their customers a nominal
rate for their service.

 The above figure indicates that respondents are highly satisfied with the
banking services.
 The above figure shows that customers are very loyal to their banks as they
recommend to others, they trust with their banks blindly etc.
 The above figure shows that respondents are highly satisfied with the
internet services provided by their banks.

[74]
 Limitations

 The Sample Size chosen for the questionnaires was only 100
people in varanasi district and that may not present the true picture
of customer relationship management practices about India Post
Payments Bank.

 Nearly 60% of the respondents belongs to below 25 years of age

and 9% were above the 55 years of age.

 The selection of people for the Questionnaire was done by on the

basis of convenience random sampling in varanasi district.

 The study is based on only the selected respondents in varanasi

district and results are based on their information.

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 Suggestions

Customer support is directly connected to CRM. If a company fails to provide

quality customer support, they have also failed with their CRM system. When a
customer makes complaints, they must be handled quickly and efficiently. The
company should also seek to make sure those mistakes are not repeated. When
sales are made, they should be tracked so that the company can analyze them from
various aspects. It is also important to understand the architecture of Customer
relationship management. The architecture of CRM can be broken down into three
categories, and these are collaborative, operational, and analytical. The
collaborative aspect of CRM deals with communication between companies and
their clients. The operational aspect of the architecture deals with the concept of
making certain processes automated. The analytical aspect of CRM architecture
deals with analyzing customer information and using if for business intelligence
purposes. Each one of these elements is critical for the success of a CRM system.
A company must learn how to use all three properly, and when they do this
proficiently, they will be able to build strong customer relationships and ensure
their profits for a long period of time. As more businesses continue to compete on
a global level, it will become more important for them to use successful Customer
relationship management techniques.

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 Conclusion

With the research conducted, it has been found that CRM is one of the greatest
approach and tool for gaining customer base and thereby surviving in this
competitive environment. Now a day CRM with customer by banking sector used
to get customer database, customer satisfaction level, customer loyalty, long time
service, customer retention, to identify profitable customer for their banks.

There are a number of reasons why CRM has become so important. The
competition in the global market has become highly competitive, and it has
become easier for customers to switch one bank to another if they are not happy
with the services they receive. One of the primary goals of CRM is to maintain
clients/customers relationships in IPPB Bank. When it is used effectively, IPPB
bank will be able to build a relationship with their customers that can last a
lifetime.

Customer relationship management tools will generally come in the form of

software. Each software program may vary in the way it approaches CRM. It is
important to realize that CRM is more than just a technology. Customer
relationship management could be better defined as being a methodology, an
approach that a company will use to achieve their goals. It must guide all of its
policies, and it must be an important part of customer service and marketing. If this
is not done, the CRM system will become a failure. There are a number of things
the ideal CRM system should have. It should allow the IPPB bank to find the
factors that interest their customers the most. IPPB bank must realize that it is
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impossible for them to succeed if they do not cater to the desires and needs of their
customers. Customer relationship management is a powerful system that will allow
them to do this.

It is also important for the any bank or companies to use measures that are
dependent on their customers. This will greatly tip the odds of success in their
favor. While CRM should not be viewed as a technology, it is important to realize
that there are end to end processes that must be created so that customers can be
properly served. In many cases, these processes will use computers and software.

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 Appendices

PERSONAL DATA

1. Name: ______________________

2. Age :

a) below 25 ( ) b) 26 to 35 ( ) c)36 to 45 ( )

d) 46 to 55 ( ) e) Above 55 ( )

3. Gender :

a) male ( ) b) female ( )

4. Marital status :

a) married ( ) b) unmarried ( )

5. Educational Qualification:

a) school ( ) b) graduate ( ) c) Post graduate ( )

d) Professional qualification ( ) e) others (specify )___________

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6. Your present occupation:

a) Agriculture ( ) b) business ( ) c) Profession ( )

d) employed in private ( ) e)employed in govt. ( )

f) pensioner ( ) g)house wife ( )

h)student ( ) i) others (specify )_____________

7. State your part-time job:

a) business ( ) b) agriculture ( ) c) tutorials ( )

d) others (specify )___________

8. Monthly income : Rs.___________

9. Family size: ______________

10. Mention the name of your favourite bank:__________

11. Banking experience:

a) <5years ( ) b) 5-10 years ( ) c) 11- 15 years ( )

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d) 16-20 years ( ) e) > 20 years ( )
12. Having bank account with

a) India Post Payments bank ( ) b)Other bank ( )

13.Nature of your account

NATURE OF ACCOUNT YES NO

Savings bank a/c

Fixed deposit a/c

Recurring deposit a/c

Current a/c

14. Experience with your bank:

a)Below 5 years ( ) b)5 to 10 years ( ) c)11 to 15 years ( )

d)16 to 20 years ( ) e) Above 20 years ( )

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15. Average amount of bank transactions per month:

NATURE OF ACCOUNT AMOUNT(Rs.)

Savings bank a/c

Recurring deposit a/c

Current a/c

16. State your frequency of transaction in the bank in

a month:

a) 1-2 times ( ) b) 3-5 times ( )

c) 6-8 times ( ) d) > 10 times ( )

17. What is your preferred mode of contacting your branch?

a) Telephone/mobile ( ) b) Internet ( )

c) Going to branch physically ( ) d) ATM ( )

e) others (specify)___________
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18. State the reason for contacting your bank often:

a) Account balance ( ) b) Loan enquiry ( )

c) Complaints ( ) d) Confirming fund transfers ( )

e) Credit card enquiry ( ) f) Other reason (specify)______________

19. In how many banks do you have account?

a) 1 ( ) b) 2 ( ) c) 3 ( )

d) 4 ( ) e) >4 ( )

20. Opinion about the service charges:

a) Very high ( ) b) High ( ) c) moderate ( )

d) Low ( ) e) very low ( )

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21. Services offered by your bank and availed by you
Please Tick [√ ] the appropriate answer.

S. no. SERVICES OFFERED AVAILED

1. Information and customer enquiry
2. ATM withdrawal
3. Cashier withdrawal
4. Credit card
5. Demand draft /Mail transfer
6. Bill of payment
7. loan services
8. complaints desk
9. Internet banking
10. Safety locker system
11. mobile banking
12. various account

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 Bibliography

 Anderson, H. A & Kyprianou. (1994) ‗Effective Organisational

Behaviour , Oxford:Black Well Publisher.

 Anderson, K. and Kerr, C. (2002) Customer relationship management.

New York:Published by McGraw-Hill

 Antonides, G. and Raaij, W.F.V (1998), Consumer Behaviours England:

John Wileyand Sons

 Arnould, E., Price, L., Zinkhan, G. (2002),Consumers, USA: McGraw

Hill

 Bennett, R. (1997) Organisational Behaviour. Third Edition.

Edinburgh: PearsonPublishing

 Blankenshi. A, Breen. G and Dutka. A. (1998) ―A State Of The Art

MarketingResearch‖, 2nd Edition, New York, Contemporary Publishing
Services.

 Buttle, F. (2004) Customer relationship management: concepts and

tools. Oxford:Published by Butterworth-Heinemann

[85]
 References

 https://taxguru.in/finance/overview-indian-banking-system-
evolution.html

 https://byjus.com/bank-exam/history-banking-india/

 https://byjus.com/free-ias-prep/types-banks-india/

 https://www.vedantu.com/commerce/types-of-banking

 https://en.wikipedia.org/wiki/India_Post_Payments_Bank

 https://online-mobilesearch.com/search?q=crm+at+ippb+bank

 https://www.researchgate.net/publication/281411054_CUSTOMER_RE
LATIONSHIP_MANAGEMENT_IN_BANKING_SECTOR_An_Empi
rical_Study_with_reference_to_Banks_in_Thiruvannamalai_District_T
amil_Nadu

 https://ijcrt.org/papers/IJCRT2006427.pdf

 https://basponccollege.org/Downloads/BHB/MRP%20Report.PDF

 https://www.drnishikantjha.com/papersCollection/CRM%20IN%20BA
NKING%20SECTOR.pdf

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