CUSTOMER SATISFACTION IN THE INDIAN BANKING INDUSTRY

SUBMITTED BY:AMEERAH FATIMA SYED BBA (2009 – 2012) A7006409058

UNDER GUIDANCE OF:Mr. Rajneesh ABS, LUCKNOW
(DISSERTATION REPORT IN PARTIAL FULLFILLMENT OF THE AWARD OF FULL TIME BACHELORS OF BUSINESS ADMINISTRATION (2009 -2012))

AMITY BUSINESS SCHOOL AMITY UNIVERSITY LUCKNOW UTTAR PRADESH

DECLARATION

I hereby certify that the work which is being presented in the project entitled ―CUSTOMER SATISFACTION IN THE INDIAN BANKING INDUSTRY‖. Fulfillment of the requirements for the award degree of Bachelor of Business Administration , AMITY University, Lucknow, is an authentic record if my own work. The matter presented in this dissertation report has not been submitted by me for the award of any other degree of this or any other university.

Ameerah Fatima Syed

BBA 6th SEM

STUDENT CERTIFICATE

Certified that this report is undertaken by me under the guidance of Professor Rajneesh in partial fulfillment of the requirement for award of Degree of Bachelors of Business Administration (BBA) from Amity University, Lucknow, Uttar Pradesh.

Date:-

Signature Ameerah Fatima Syed Student

Signature Prof. Rajneesh Faculty

Signature V.P. Sahi Director, ABS

RAJNEESH FACULTY. A7006409058 student of BBA 6th Semester ( 2009. This project work is partial fulfillment of the requirement for the degree of Bachelors of Business Administration from Amity University.FACULTY CERTIFICATE Forwarded here with the dissertation report on “ CUSTOMER SATISFACTION IN THE INDIAN BANKING INDUSTRY” submitted by Ameerah Fatima Syed enrollment no. ABS AMITY UNIVERSITY LUCKNOW CAMPUS . PROF.2012 ) . Lucknow campus. Uttar Pradesh.

I would like to thank the Internal guide for providing me the valuable advice and endless supply of new ideas and support for this project. keen interest.P.ACKNOWLEGEMENT Dissertation is the most vital part of management programme. I consider my proud privilege to express deep sense of gratitude to Mr. Ameerah Fatima Syed BBA 6th Sem . both as a link between theory and actual practices. V. encouragement and constructive suggestions during the course of the project. Sahi for his admirable and valuable guidance. However this opportunity could only be utilized with the support and guidance of my mentors and other individuals who indirectly helped me in completing my project.

Ameerah Fatima Syed BBA 6th Sem . everyone has to submit a report. The topic of the project is “ FDI in Retail Sector in India”. The organization shall make all possible efforts to have a secure and safe domain.PREFACE BBA program is one of the most reputed professional course in the field of Management. As a complementary to that. This report is thus prepared for the study done on the given topic. There is a dissertation project as an integral part of BBA in Sixth Semester.

OBJECTIVES OF REPORT The objectives of report are as follows –  The Purpose of this study is  To investigate relationship dimensions  To study the differences in perception of customers with respect to services provided by five Indian banks. .  To discover the relationship dimensions which lead to customer satisfaction have been identified.  To report on the different satisfaction levels of customers of private and public sector banks with respect to the services provided.

………… 1.LITERATURE REVIEW………………………………………………. PUBLIC SECTOR BANKS AND PRIVATE SECTOR BANKS…… …. INTRODUCTION……………………………………………………….3 Difference between public sector banks and private sector banks 5.1 Objectives of research 4.CONTENTS Acknowledgment Declaration 1.2 Private sector banks 5.4 Rural banking 1.5 Foreign banks in India 1. 5.2 Emerging trends in banking sector 1. 5.1 Public sector banks 5.1 History of banking sector 1.2 Expectations and customer satisfaction 3.4 Difference between public sector banks and private sector banks in terms of Customer satisfaction. . ….NEED FOR RESEARCH……………………………………………….1 Need for measuring Customer satisfaction 3.2 Research design 4.6 Nationalization of banking sector 1.3 Factors Affecting customers towards particular Banks 4.RESEARCH METHODOLOGY……………………………………. 4.3 Customer satisfaction 1. 3..3 Sources of data 4. ……. … 3.7 Upcoming foreign banks in India 2.4 Research instrument.

.6. RECOMMENDATION 8. Questionnaire .FINDINGS 7. STATISTICAL DATA……………………………………………………… 10. CONCLUSION & SUMMARY…………………………………………… . 9...

Chapter 1: INTRODUCTION .

became the State Bank of India. which originated in the Bank of Calcutta in June 1806. and which survived until 1913. when it failed. It was not the first though. both of which are now defunct. established in 1865 and still functioning today. Indian merchants in Calcutta established the Union Bank in 1839. the other two being the Bank of Bombay and the Bank of Madras. and another in Bombay in 1862. in the 1860s. HSBC established itself in Bengal in 1869. The first banks were The General Bank of India which started in 1786. is the oldest Joint Stock bank in India. The Allahabad Bank. Foreign banks too started to arrive. Calcutta was the most active trading port in India. which almost immediately became the Bank of Bengal. then a French colony. The three banks merged in 1921 to form the Imperial Bank of India. which. as did their successors. For many years the Presidency banks acted as quasi-central banks. It failed in 1958.1 HISTORY OF THE BANKING SECTOR Banking in India originated in the last decades of the 18th century. This study reports on the different satisfaction levels of customers of private and public sector banks with respect to the services provided. and so became a banking center. established in 1881 in Faizabad. This was one of the three presidency banks. which was established in 1863. particularly in Calcutta. The next was the Punjab National Bank. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860. but it failed in 1848 as a consequence of the economic crisis of 1848-49. and the Bank of Hindustan. followed. established in Lahore in . 1. branches in Madras and Pondichery. all three of which were established under charters from the British East India Company. The oldest bank in existence in India is the State Bank of India. mainly due to the trade of the British Empire. That honor belongs to the Bank of Upper India.The Purpose of this study is to investigate relationship dimensions and study the Differences in perception of customers with respect to services provided by five Indian banks. The relationship dimensions which lead to customer satisfaction have been identified. The first entirely Indian joint stock bank was the Oudh Commercial Bank. with some of its assets and liabilities being transferred to the Alliance Bank of Simla. upon India's independence.

The financial sector like other sectors is also going through major changes as a consequence of economic reforms. 1. issues and challenges related to the technology i. Bank of Baroda. Emerging competition has generated new expectations from existing and new customers. Corporation Bank. the players in the banking industry. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. etc. service quality. banc assurance. both Indian and global are taking turns towards mergers and acquisitions. ATMs. CRM. Section-I extensively covers the trends. technology. Existing products need to be delivered in an innovative and cost-effective manner by taking full advantage of emerging technologies. which has survived to the present and is now one of the largest banks in India. With increasing competition and tightening of prudential norms by the Reserve Bank. Canara Bank and Central Bank of India. The book is divided into two sections. This sector has seen phenomenal growth in terms of technology infusion and adoption in the recent past such as: Internet and Mobile Banking. There is an urgent need to introduce new and more attractive customer-friendly products and services. Technology has swiftly become a business driver rather than a business enabler. The banking sector presently is at an inflexion point. Only banks having adequate infrastructure.e.2 EMERGING TRENDS IN BANKING SECTOR The liberalization process initiated by the government about a decade ago has changed the landscape of several sectors of the Indian economy. data warehousing and data mining. The period between 1906 and 1911. saw the establishment of banks inspired by the Swadeshi movement. Indian Bank. e-banking.1895. economies of scale and well connected network of branches will be able to survive and meet the challenges of ever increasing competition and customer expectations. A number of banks established then have survived to the present such as Bank of India. risk management. CRM solutions. financial inclusion. The consumption-led boom in India has fuelled robust demand for financial products especially in the banking domain. etc. Section-II covers other contemporary issues in the banking sector such as Basel II. retail .

The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. are critical to any organization and in today’s competitive environment relationship marketing is critical to banking corporate success. . The level of satisfaction can also vary depending on other factors the customer. academicians and students. fierce competition and more demanding customers and the changing climate have presented an unprecedented set of challenges. 1. particularly brands and customers. researchers. The commercial banking industry like many other financial service industries is facing rapidly changing market. a business term. Satisfaction with banking services is an area of growing interest to researchers and managers.banking. Intangible assets.3 CUSTOMER SATISFACTION Customer satisfaction. economic uncertainties. fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges . universal banking etc. new technologies. economic uncertainties. The banking industry like many other financial service industries is facing a rapidly changing market. New technologies. such as other products against which the customer can compare the organization's products. The book shall serve as a rich reference resource for decision makers in the banking industry.

It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture.their profiles. Insurance. agricultural laborers. After the set up foreign banks in India. Share market. National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers. etc. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction.1. With the entry of new players and multiple channels. the banking sector in India also become competitive and accusative. Mutual fund. Banks today are market driven and market responsive. Family and friends. Main competitors for banking sector. banks have very strong in-house research and market intelligence units in order to face the future challenges of competition. They have been managing a world of information about customers . etc. 1. requirements. small scale industries. customers (both corporate and retail) have become more discerning and less "loyal" to banks. on its terms) and their Indian subsidiaries will not be able to open branches freely. Rural Banks in those days mainly focused upon the agro sector. location. Post offices. Money lenders.4 RURAL BANKING Rural banking in India started since the establishment of banking sector in India. New policies are introduced by RBI for them–The policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI. Present scenario banking industry has been undergoing a rapid transformation. Furthermore. entrepreneurs. cottage and village industries. handicrafts.5 FOREIGN BANKS IN INDIA Foreign Banks in India always brought an explanation about the prompt services to customers. needs. especially customer retention. . The Haryana State Cooperative Apex Bank Ltd. in the state and giving service to its depositors. cash positions. rural artisans.

Union Bank. bank of Baroda. under the chairmanship of M Narasimham. Switzerland's UBS. Canara Bank Indian Bank Indian Overseas Bank. The entire system became more convenient and swift. Central Bank of India. These banks were mostly owned by businessmen and even managed by them. Among them is the world's best private bank by Euro Money magazine. After that Banks have introduced many more products and facilities in the banking sector in its reforms measure.7 UPCOMING FOREIGN BANKS IN INDIA By 2009 few more names is going to be added in the list of foreign banks in India. Indira Gandhi the then prime minister. a committee was set up by his name which worked for the liberalization of banking practices. Phone banking and Net banking is introduced. The country is flooded with foreign banks and their ATM stations. Bank of Maharashtra.1.6 NATIONALIZATION OF BANKING SECTOR The nationalization of banks in India took place in 1969 by Mrs. 1. Efforts are being put to give a satisfactory service to customers. Allahabad Bank United Bank of India UCO Bank. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. It nationalized 14 banks then. Time is given more importance than money. In 1991. Dena Bank Punjab National Bank Syndicate Bank. The following are the list of foreign banks going to set up business in India:•Royal Bank of Scotland •Switzerland's UBS •US-based GE Capital •Credit Suisse Group •Industrial and Commercial Bank of China .

Chapter 2: LITERATURE REVIEW .

Thus the significance of customer satisfaction and customer retention in strategy development for a market oriented and customer focused firm can not be overstated. then they are likely to engage in repeat purchase and try line extensions . "Satisfaction" itself can refer to a number of different facts of the relationship with a customer.Literature Review Customer satisfaction is an important theoretical as well as practical issue for most marketers and consumer researchers . This provides the researcher with a satisfaction "gap" which is semiquantitative in nature. Consequently. For example. For instance. Work done by Parasuraman. Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation. Customer satisfaction is the feeling or attitude of a customer towards a product or services after it has been used and is generally described as a full meeting of one’s expectations . Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. it can refer to any or all of the following:    Satisfaction with the quality of a particular product or service Satisfaction with an ongoing business relationship Satisfaction with the price-performance ratio of a product or service . Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman. if customers are satisfied with particular service offering after its use.A study conducted by Levesque and McDougall confirmed and reinforced the idea that unsatisfactory customer service leads to a drop in customer satisfaction and willingness to recommend the service to a friend. Customer satisfaction is a major outcome of marketing activity whereby it serves as a link between the various stages of consumer buying behavior. This would in turn lead to an increase in the rate of switching by customers. customer satisfaction is increasingly becoming a corporate goal as more and more companies strive for quality in their product and services. Customer satisfaction can be considered the essence of success in today’s highly competitive world of business.

 Satisfaction because a product/service met or exceeded the customer's expectations Each industry could add to this list according to the nature of the business and the specific relationship with the customer. so measures of satisfaction taken by suppliers should include these critical variables. For example. . manufacturers typically desire on-time delivery and adherence to specifications. Customer satisfaction measurement variables will differ depending on what type of satisfaction is being researched.

Chapter 3:NEED FOR RESEARCH .

Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. and some consumer setting in western cultural contexts such as Europe .few studies have examined the paradigm in an eastern cultural context such as India. banking system occupies an important place in nation’s economy. The vital role continues even today although the form of banking has changed today with changing need of the economy and individuals. the regional rural banks.Importance of Research While relationships have been extensively studied in marketing channels . In many places in the world. Banks have to deal with many customers everyday and render various types of services to its customer. The scheduled commercial banks constitute those banks which are included in the second schedule of RBI Act 1934.US. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of . business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. There are total 28 Public sector and 27 private sector banks are functioning in the country presently.1 Need to Measure Customer Satisfaction: Satisfied customers are central to optimal performance and financial returns.and even Australia . There are scheduled commercial banks.industrial settings. The maturing of services marketing. For centuries banks have played an important role in financial system of the country. and the cooperative banks.the presence of these factors in the Indian banking sector motivated this research. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. the UK .relationship marketing strategy to satisfy customers and improve their profitability has moved to the forefront. The commercial banks in India comprise of both Public sector as well as private sector banks. The Banking system in India has three tiers.In the organized segment. It’s a well known fact that no business can exist without customers. With banks losing 8% of their clients every year 34. the increased recognition of potential benefits for customer and technological developments are the main factors driving the developments of relationship marketing33. 3.

This article is an attempt to review the necessary requirements. customer research. financial performance. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. This would seem sensible. business innovation. privacy.3 Factors affecting customers towards particular bank • Relationship marketing. e-commerce. for example. companies can determine the actions required to meet the customers' needs. 3.. internet banking.customers' perceptions. However. . electronic banking.and where positive preconceptions and high expectations make positive ratings more likely. information technology. They can identify their own strengths and weaknesses. • Business research. chart out path future progress and improvement. but will also make it harder to achieve high satisfaction ratings . online banking. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. where they stand in comparison to their competitors. 3. and discuss the steps that need to be taken in order to measure and track customer satisfaction. there are clearly circumstances where negative preconceptions of a service provider will lead to lower expectations. poor previous experience with the service or other similar services is likely to result in it being easier to pleasantly surprise customers. and these in turn are determined by a very wide range of factors lower expectations will result in higher satisfaction ratings for any given level of service quality. • electronic commerce.2 Expectations and Customer Satisfaction: Expectations have a central role in influencing satisfaction with services.

Chapter 4: RESEARCH METHODOLOGY .

Sample techniques. including conducting surveys to create market data or using other research instruments such as questionnaire. data collection method and selection of subjects.12 RESEARCH DESIGN: Exploratory design This study is exploratory in nature. such as secondary data collection and Primary data collection.13 SOURCES OF DATA There are many sources of data collection.4. Exploratory research helps to determine the best research design. various with 4. To analyze the satisfaction level of customers with respect to the various service provided by the banks To identify the strategies of banks to satisfy their customers.11 OBJECTIVE OF THE RESEARCH     To identify customer satisfaction variables which lead to building relationship customers in the Indian banking sector To study the difference in perception of the customers of the bank towards services provided by bank. Primary data— There are various ways to undertake the gathering of primary data. Exploratory research provides insights into and comprehension of an issue or situation. It provides a description of contemporary satisfaction parameter in the Indian banking sector.100 .Convenience sampling . Sample size. 4.

The research process involved the following steps. articles on the internet and other sources.Secondary data This involves information that already exists somewhere. Second. a questionnaire was constructed and piloted. Last. . such as in studies already undertaken on this area as well as published books. It outlines the previous research with respect to customer satisfaction in the banking industry. First. the population and sampling procedure were established and methods of data collection and analysis determined. in-depth interview were held with customers to establish the evaluation criteria and factors which results in customer satisfaction. Relationship marketing dimensions were identified by conducting a customer satisfaction survey of five banks in India. articles in journals. Third. a literature review was undertaken to identify what parameters to consider in research.

Chapter 5: PUBLIC SECTOR AND PRIVATE SECTOR BANKS .

. publicly listed corporation. as a precursor to the long-term goals of establishing workermanagement and reorganizing production toward use. but may also be municipalization. charged with operating in the public interest. rural postal and transport services. economic nationalist. if they are profitable. The motives for nationalization are political as well as economic. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs — for example. Nationalized industries. Nationalization has been used to refer to either direct state-ownership or management of an enterprise or to a government acquiring a large controlling share of a nominally private. The goals of nationalization were to dispossess large capitalists and redirect the profits of industry to the public purse. However. the government is responsible for meeting any debts incurred by these industries. may be under strong political and social pressures to give much more attention to externalities. The opposite of nationalization is privatization or de-nationalization.5. such as social programs and government research — which can help lower the tax burden. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing. It was a central theme of certain fascist. populist and national liberation policies that industries should be owned by the state on behalf of the citizenry to allow for consolidation of resources and central planning for the purposes of economic development.1 PUBLIC SECTOR BANKS Definition Nationalization is the process of taking an industry or assets into government ownership by a national government or state. Since the nationalized industries are state owned. the profit is often used as a means to finance other state services. but may also mean assets owned by lower levels of government. such as municipalities. being transferred to the public sector to be operated and owned by the state. Nationalization usually refers to private assets.

craft men. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property. A Closer Look… Nationalized banks dominate the banking system in India. its seven subsidiaries were also nationalized with deposits over 200 crores. Introduction of Nationalization of Banks in India After independence the Government of India (GOI) adopted planned economic development for the country. farmers. Thus.Nationalization may occur with or without compensation to the former owners. the government decided to nationalize 14 major commercial banks on 19th July. five year plans came into existence since 1951. It was considered that banks were controlled by business houses and thus failed in catering to the credit needs of poor sections such as cottage industry. State Bank of Mysore (SBM). However. The history of nationalized banks in India dates back to mid-20th century. In 1950-51 there were 430 commercial banks. These commercial banks failed helping the government in attaining these objectives. Then on 19th July 1960. These subsidiaries of SBI were State Bank of Bikaner and Jaipur (SBBJ). If it takes place without compensation it is a case of expropriation. when Imperial Bank of India was nationalized (under the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955. etc. All commercial banks with a deposit base over Rs. 1969.50 crores were nationalized. commercial banks were in the private sector those days. The second dose of nationalization came in April 1980 when banks were nationalized. State Bank of Hyderabad (SBH). For example. Some nationalizations take place when a government seizes property acquired illegally. the French government seized the car-makers Renault because its owners had collaborated with the Nazi occupiers of France. village industry. State Bank of Patiala (SBP). The Government of India had some social objectives of planning. . This economic planning basically aimed at social ownership of the means of production. Accordingly. State Bank of Indore (SBIR).

the nationalized banks grew at a pace of around 4%. Dena Bank. Syndicate Bank. Oriental Bank of Commerce (OBC).000%. in the year 1993. The major objective behind nationalization was to spread banking infrastructure in rural areas and make cheap finance available to Indian farmers. UCO Bank. Later on. 1969: Nationalization of 14 major banks. With this. Punjab and Sind Bank. After this. and Vijaya Bank. the Government of India held a control over 91% of the banking industry in India. 1959: Nationalization of SBI subsidiaries. and State Bank of Travancore (SBT). Bank of Baroda.     1955: Nationalization of State Bank of India. the major nationalization of banks happened in 1969 by the then-Prime Minister Indira Gandhi. Corporation Bank. However. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. Indian Bank. Bank of Maharashtra. the second phase of nationalization of Indian banks took place. In the year 1980. . At present. closer to the average growth rate of the Indian economy. After the nationalization of banks there was a huge jump in the deposits and advances with the banks. United Bank of India (UBI). It serves 90 million customers through a network of 9.State Bank of Saurashtra (SBS).000 branches. the State Bank of India is the largest commercial bank of India and is ranked one of the top five banks worldwide. Indian Overseas Bank. until the 1990s. The stated reason for the nationalization was to give the government more control of credit delivery. the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11. 1980: Nationalization of seven banks with deposits over 200 crores. the government merged New Bank of India with Punjab National Bank. in which 7 more banks were nationalized with deposits over 200 crores. Union Bank of India. The nationalized 14 major commercial banks were Allahabad Bank. After the nationalization of banks in India. Punjab National Bank (PNB). Bank of India. Canara Bank. Central Bank of India. Andhra Bank.

List of Total Nationalized Banks in India:- Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank Punjab National Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India (SBI) State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank IDBI Bank .

Sector such as agriculture. Nationalization was urgently needed for catering funds to them. 2. it was necessary for banks to go in the rural areas where the banking facilities were not available. Reducing Regional Imbalance: In a country like India where we have an urban-rural divide. 6. Developing Banking Habits: In India more than 70% population used to stay in rural areas. 1. small and village industries were in need of funds for their expansion and further economic development. Controlling Private Monopolies: Prior to nationalization many banks were controlled by private business houses and corporate families. 3. Thus these were labeled as the priority sectors. Social Welfare: It was the need of the hour to direct the funds for the needy and required sectors of the Indian economy. Priority Sector Lending: In India. It was necessary to check these monopolies in order to ensure a smooth supply of credit to socially desirable sections. It could be done through expanding banking network (by opening new bank branches) in the un-banked areas. It was necessary to develop the banking habit among such a large population. In order to reduce this regional imbalance nationalization was justified: 5. 4.Objectives behind Nationalization of Banks in India The nationalization of commercial banks took place with an aim to achieve following major objectives. It was necessary to spread banking across the country. the agriculture sector and its allied activities were the largest contributor to the national income. Expansion of Banking: In a large country like India the numbers of banks existing those days were certainly inadequate. . But unfortunately they were deprived of their due share in the credit.

political interference. trade union struggle. lack of profit motive. the Indian banking industry has entered into the new horizons of competitiveness. efficiency and productivity. Inadequate banking facilities: Even though banks have spread across the country. It was seen in arranging loan meals. Especially in the backward states such as the Uttar Pradesh. Sometimes the deposits mobilized are enough but the resource allocation is not as per the expansions. 2. It ultimately resulted in huge nonperforming assets (NPA) of these banks and inefficiency. The reasons were obvious lethargic working. large staff administrative expenditure. removing the bad days of bank nationalization. Madhya Pradesh. In fact it converted many of the banking institutions into loss making entities. Apart from this there are certain other limitations as well. . Banking was not done on professional and ethical grounds. lack of accountability. such as weak infrastructure. 3. These are several limitations faced by the banks nationalization in India. etc. Limited resources mobilized and allocated: The resources mobilized after the nationalization is not sufficient if we consider the needs of the Indian economy. 4. etc. But after Economic Reform of 1991. The major limitations of the bank nationalization in India are:1. in many senses it failed in attaining them. poor competitiveness. Increased expenditure: Due to huge expansion in a branch network. etc. Lowered efficiency and profits: After nationalization banks went in the government sector. 5. Chhattisgarh and north-eastern states of India.Demerits. Many times political forces pressurized them. banks expenditure increased to a dangerous level. still many parts of the country are unbanked. Under this backdrop it is necessary to have a critical look to the whole process of nationalization in the period after bank nationalization. Limitations of Bank Nationalization in India Though the nationalization of commercial banks was undertaken with tall objectives. It has made Indian banks more vibrant and professional organizations. It resulted into lower efficiency and poor profitability of banks. Political and Administrative Inference: Many public sector banks badly suffered due to the political interference.

such as the national health service.jobs. public sector is an economy is owned and controlled by a government .3 Difference between private sector and public sector banks A private sector is an economy is made up of all businesses and firms owned by ordinary members of the general public.roads. It consist of government businesses and firms .5. It is one of the fastest growing Banks in India. to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry.Co operative banks in India. state education. 5.2 PRIVATE SECTOR BANKS The first Private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. ..public parks and law and order. The scope of the study is confined in comparing the Public sector and private sector banks in terms of customer satisfaction. It also consist of all the private households in which people live. The study will be undertaken on the basis of sample survey. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India.4 Comparison of private sector banks with public sector banks in terms of customer satisfaction The objective of this study is to compare the public sector banks and private sector banks in terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited. 5..whereas.and goods and services provided by the government.

Chapter 6: Findings

FINDINGS
Customer satisfaction level is higher in Private sector banks as compared with the Public Sector Banks.

REASONS OF DISSATISFACTION IN PUBLIC SECTOR BANKS
Behavior and attitude of the staff in public sector banks is the first reason of Customer dissatisfaction.

Time taken to process the transaction is the second reason of customer dissatisfaction.

Many of the services are not provided by the Public sector banks when compared with the Private sector banks e.g. ATM Banking is not provided by Union Bank of India. Internet Banking and Mobile banking is also not provided by many of the Public sector banks. Customer satisfaction level is higher in Private sector banks as compared with the Public Sector Banks Reasons of Dissatisfaction in Public sector banks      Behavior and attitude of the staff in public sector banks is the first reason of dissatisfaction. Time taken to process the transaction is the second reason of customer dissatisfaction. with customer

Many of the services are not provided by the Public sector banks when compared the Private sector banks e.g. ATM Banking is not provided by Union Bank

of India. sector

Internet Banking and Mobile banking is also not provided by many of the Public banks. Continuous services are not provided by ATM machines installed by various Public sector banks.

ANALYSIS & INTERPRETATION
As markets shrink, companies are scrambling to boost customer satisfaction and keep their current customers rather than devoting additional resources to chase potential new customers. The claim that it costs five to eight times as much to get new customers than to hold on to old ones is key to understanding the drive toward benchmarking and tracking customer satisfaction.

Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change.

It's no surprise to find that market leaders differ from the rest of the industry in that they're designed to hear the voice of the customer and achieve customer satisfaction. In these companies:         Marketing and sales employees are primarily responsible for designing (with customer input) customer satisfaction surveying programs, questionnaires and focus groups. Top management and marketing divisions champion the programs. Corporate evaluations include not only their own customer satisfaction ratings but also those of their competitors. Satisfaction results are made available to all employees. Customers are informed about changes brought about as the direct result of listening to their needs. Internal and external quality measures are often tied together. Customer satisfaction is incorporated into the strategic focus of the company via the mission statement. Stakeholder compensation is tied directly to the customer satisfaction surveying program.

A concentrated effort is made to relate the customer satisfaction measurement results to internal process metrics. To be successful, companies need a customer satisfaction surveying system that meets the following criteria:

  

The system must be relatively easy to design and understand. It must be credible enough that employee performance and compensation can be attached to the final results. It must generate actionable reports for management.

Chapter 7: Recommendations

RECOMMENDATIONS          The staff should be adequately trained to deal with the customer on one to one basis. conducted among five Indian banks. Staff should be adequately trained to encourage face to face dealing. Banking is a customer oriented services industry and Indian banks have started realizing that business depends on client service and the satisfaction of the customer. and developing a conceptual framework of relationship marketing practices in Indian banks by capturing the perspectives of customers with respect to their satisfaction with various services.g. aimed at identifying customer satisfaction variables which lead to relationship building. It also sought to identify whether demographics have a role to play in customer satisfaction. 7. ATM facilities. Many public sector banks need to revive their infrastructure to have pace with the Competing environment. This study.1 CRM in banking sector-CRM: A Competitive Tool for Indian Banking SectorIn today’s competitive environment relationship marketing is critical to banking corporate success. Customer’s needs should be anticipated in advance so that they can be helped out in a better way. A questionnaire designed from a . Strategies of banks to satisfy their customers A main strategy of banks to satisfy their customer is CRM. Clearly defined customer policy should be adopted by the banks. This is compelling them to improve customer service and build relationships with customers. Staff should be friendly and approachable. Many of the services needs improvement in public sector banks e. Honor your promises.

literature review and in-depth interviews were utilized to arrive at the 16 variables which determined the satisfaction of 555 customers of the five banks. send out a monthly survey to this group asking for ideas and input on how to improve your customer service. Give them a reward. Send an e-mail out a few days after their purchase.2 Ten Ways to Help You Improve Your Customer Service- 1. 7. It is concerned with the creation. give them a gift certificate. Customers don't want to feel abandoned. 2. CRM has developed into a major corporate strategy for many organizations. the customers of the national bank are older and more satisfied with the traditional facilities. Here are three things to help you stay in touch: Offer them your ezine subscription.. . who are comfortable with multi channel banking. another in a week or two. Just as it is bad news to send out too many emails to customers. Pay them. Stay in contact with customers on a regular basis. or send them free product. So don't. Create a customer focus group by inviting 10 to 20 loyal customers to meet regularly. The results from this study could provide managerial lessons on assessment of strengths and improvement of services and in evolving a research strategy that will benefit the management of banks . development and enhancement of individualized customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life time value. Follow-up after each sale to see if they are satisfied with their purchase. Reporting on the different satisfaction levels of the customers. Ask customers if they want to be updated by e-mail. the findings suggest that while private banks have been able to attract the younger customers with higher educational levels. and then another in a month. Alternatively. it is just as bad to not stay in contact with them.

10. Follow. Make it easy for them to contact you. each one has different concerns.friendliness. .up with an electronic survey with questions on how to increase your site's user. Resolve customer complaints quickly and completely. Offer as many contact methods as possible. invite customers to your office for lunches. Email them greeting cards on holidays or birthdays if you have their address or online cards if you only have their e-mail address and name. If your business is local. barbecues. parties. This will show your customers you really care about them. Tell employees to be flexible with each individual customer. make sure they are familiar with your customer service policy. pleases. Reward in points -. E-mail the customer an update monthly. Admit and apologize for mistakes quickly and make it up to them in BIG ways if you want them to continue being a customer. Answer all e-mail and phone calls within a few hours. needs and wants. 6. Don't make your customers or visitors hunt for your contact information. dances. Send thank you gifts to long time customers. 8. Give bonuses to your customers who make a big purchase or multiple purchases. if they buy something add 10 more points. 5. Offer a toll free number. U-welcome. 4. Set up a points-earned sheet. seminars or other special events. If they send you a referral they get 10 points. Give your employees bonuses or incentives to practice excellent customer service. 9. Add a frequently asked question's "FAQ" page and explain anything that might confuse your customers or visitors. 7.give customers a point for every dollar they spend. Give your customers more than they expect. Have a web site that is easy to navigate. If you have strategic alliances or employees. Be polite no matter what. Hyperlink all your e-mail addresses so they don't have to find or type it. and thanks you and can never be over used.3.

In this paper. immediacy. Juran (1974) defined quality as "suitable use". Hypothesis. Cornell (1984) considered that the service industry required a broader definition of quality than that used by the manufacturing industry. Section. and proceeding to establish a higher level of perceived service quality. and assumed the existence of correspondence between quality and operational standards.2: covers Research Methodology comprising objectives. consumers see the process of service quality formation as employing both interior and exterior attributes of low-level production quality or service quality. the main contention of the author is to highlight the customer satisfaction through service quality provided by the banks-SBI from the public sector banking and ICICI from the private sector banking. Another contention is to demonstrate the performance of the two banks SBI & ICICI in terms of customer satisfaction. replication of manufacturing ability. passing through an internal united comparison. . ultimate user satisfaction.1: starts with a brief profile of the banking industry. Based on the concept of PZB (1985) and Zeithaml (1988). Moreover.3 Service Quality Development Before 1983. including: practicality. Section-5: deals with Analysis and Interpretation in line with the objective of the study. The paper is organized in to six sections: Section. Zimmerman (1985) took the quality control concept of the manufacturing industry and applied it to service quality. Crosby (1979) defined quality as "consistent with needs". Section6: briefly summarizes the conclusion and policy implementation of the study. Section-3: lays out the measurement of customer satisfaction with service quality and review of literature. research design and scope of the study including nature of data collection. the definition of quality was defined primarily based on the concept of quality control with corresponding standards focused completely on achieving quality.7. Section-4: puts forward the core strategies to address service quality gaps. especially the SBI and ICICI. and corresponding standards. Zimmerman considered the components of service quality.

The freedom of choice which bank customers did not have earlier because of standardized products and regimented interest rates has been given to the customers as a result of the changes taking place (Subramanian &Velayudham. the oligopolistic nature of Indian banking is fast changing and giving way to a relatively freer market place. TICSS focuses an organization’s attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model.7. Processes. structural and technological factors are significantly changing the banking environment throughout the world.Policy. as well as performance measurement. Premises. . whilst at the same time providing recognition of success through a 3rd Party registration scheme. 1997). which in turn influences customer retention and customer loyalty. With the lowering of entry barriers and blurring product lines of banks and nonbanks. that is.5 The Dimensions of Service Quality: A Study of the Indian Retail Banking Environment Regulatory. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). Product/Services. TICSS enables organizations to focus their attention on delivering excellence in the management of customer service. the branch network. TICSS Service Quality Model uses the 5 P's . One factor that is spurring the growth of the service economy in India is the liberalization that has been ushered in by the government in the banking sector. 7. The end result is that market power is getting shifted from banks to their customers.4 Improving Customer Satisfaction Published standards exist to help organizations develop their current levels of customer satisfaction. People. Banking has also become more competitive in respect of the location of points of sale. The implementation of a customer service standard should lead to higher levels of customer satisfaction.

Convergence to a single solution provider–With pressures on the spreads and the competition in the urban markets increasing rapidly. the Indian companies are looking to build up capacity to meet future demand. customer service. Technological innovations & challenges–Banks are aggressively adopting the latest technology in order to improve product offerings. financial liberalization has led to intense competitive pressures and retail banks are consequently directing their strategies towards increasing customer satisfaction and loyalty through improved service quality. and operational efficiency and risk management systems. Retail banks are pursuing this strategy. .6 Marketing Strategies Financing rapid industrial growth–With the Indian economy growing at a blistering pace on the back of strong industrial and services growth. Typically. because of the difficulty in differentiating based on the service offering. Financial inclusion & Rural – Microfinance–In the quest for new markets and customer segments. in part.–Banks play a pivotal role in financing this industrial growth. banks need to develop new ways to sustain profitability. hence becoming a one stop shop for all financial solutions. 7.In other words. These are of interest to and significant for users of SERVQUAL and for all those who wish to understand better the concept of service quality.– Banks led to a plethora of new products. customers perceive very little difference in the banking products offered by retail banks as any new offering is quickly matched by competitors. banks are looking at the rural and unbanked segments in a new light as a huge business opportunity. as well as with the RBI directives in this area.

a challenging task. along with acting as a signal to the domestic players to pull up their socks to face the new competitors. 7.–The all-inclusive nature of this growth in terms of sectors covers all consumer segments as well as product segments. Banc assurance and other forms of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the process of consolidation for increased scope of business and revenue. Growth in retail lending–The under banked Indian population as well as the high margin on retail products makes this a very attractive market for the banks. health sector and services offers several investment linkages.7 Measuring Customer Satisfaction Banking operations are becoming increasingly customer dictated. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking. Convergence in the industry to cater to the changing demographic expectations is now more than evident.Roadmap by RBI for foreign banks–The RBI has laid out a two phased roadmap for giving greater freedom to the foreign banks in India. The demand for banking super malls' offering one-stop integrated financial services is well on the rise. With the phenomenal increase in the country's population and the increased demand for key differentiators for each bank's future success. which in turn will help them take positive steps to maintain a competitive edge. In short. the domestic economy is an increasing pie which offers extensive economies of scale that only large banks will be in a position to tap. The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is. The thrust on farm sector.–This has spurred the entry of several other foreign banks in India. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and .

and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. after implemented. This provides an easy way to monitor improvements.Lord William Thomson Kelvin (1824-1907)." .customer loyalty in the long run which is an integral part of any business. "If you cannot measure it. have led to increased customer satisfaction. The customer's requirements must be translated and quantified into measurable targets. you cannot improve it. We can recognize where we need to make changes to create improvements and determine if these changes. .

Chapter 8: Conclusion .

This study derives its basic findings and is also in line with empirical findings with respect to customer satisfaction by other researchers. are graduates and their satisfaction is highest with traditional facilities. and thus aid decision makers in banks to identify the major factors that determine satisfaction.    Sample size is small so there may be possible that the desired level of accuracy not exist.64 percent customers of IDBI . has given competition to the private banks and has retained its older customers by satisfying them with the traditional facilities. The customer is looking for better quality and services which can provide him/her with satisfaction. .ICICI and HDFC are in age group of 25-35 years . These findings propose that the private banks namely ICICI. including retail banks have been measuring customer satisfaction and quality to determine how well they are meeting customer needs.are post graduates and their satisfaction is highest with multi channel banking. and HDFC have been able to attract the younger customers. In selecting the Sample. This study is conducted only in small area so there may be chance of Inaccuracy of the result. LIMITATIONS There are certain limitations of this study. Many service firms. with higher educational levels. On the other hand the customer of national bank. This would help in enhancing the relationship between the two. Looking at the demographics of the customer and satisfaction with the services. who are comfortable with the usage of multi channel banking.CONCLUSION & SUMMARY The Banking sector in India is undergoing major changes due to competition and the advent of technology. This study reveals the different levels of satisfaction that customer had with their banks and helps identify the factors (or relationship dimensions) responsible for satisfying the customer.SBI with the largest network of branches in India. there are chances of sampling errors.71 percent of the customers of SBI are above 35 years. SBI are older in age and are satisfied with the traditional facilities. IDBI.

com ..scribd. ISBN 9780029030790. This study is applicable in Lucknow only not in whole India.org/wiki/Customer_satisfaction Categories: Business terms| Consumer behavior.wikipedia. Parasuraman (1991).google.com http://en. REFERENCES C R Kothari – Research methodology P N Varshney – Banking law and Practice Berry. New York: Free Press. that’s why variations may be possible.  Sometimes some respondent do not give right answers. Leonard L. A. Internet websites: www. Marketing Services: Competing Through Quality. www.

Chapter 9: Results .

00% 36.00% female respondent in my study. Male Female 64.Table 9(a)-Ranking score sheet of customer perception Demographic profile of the customers Gender 1.00% Gender Female 36% Male 64% INTERPRETATION-There are 64. .00% male and 36.

Marital status Married Unmarried 35.00% Marital status Married 35% Unmarried 65% INTERPRETATION.00% unmarried respondent in my study.There are 35.00% married and 65. .00% 65.

00%.00% 25. 10000/Rs10000-20000 Rs20000-30000 Rs30000-40000 More than 40000 07.00%.00% respondent whose monthly family income is less than Rs10000.more than 40000 respectively in my study.20.Monthly Family income Less than Rs.There are 07. 10000/7% More than 40000 22% Rs 30000-40000 20% Rs 10000-20000 25% Rs 20000-30000 26% INTERPRETATION.Rs20000-30000.00%.26.Rs10000-20000.00% 20.Rs3000040000.00% 22.00% 26. .00% .00% Monthly income Less than Rs.22.25.

11.45-55 years and above 55 years respectively. .00% 04.00%.00% 32.00% 06.00% 11.04.25-35 years.35-45 years.00% Age Above 55 years 6% 45-55 tears 4% 35-45 years 11% Below 25 years 47% 25-35 years 32% INTERPRETATION.00% respondent whose age are below 25 years. 32.06.00%.00%.There is 47.Age Below 25 years 25-35 years 35-45 years 45-55 years Above 55 years 47.00%.

higher secondary. .10.00% and 39.00% 12.There is 01.00% 10.00%.Graduate.12.00%. Post graduate respectively in my study.00% 39.00.00% Education Higher secondary 12% Post Graduate 39% Secondary 1% Undergraduate 10% Graduate 38% INTERPRETATION. Undergraduate .38.00%.Education Secondary Higher secondary Undergraduate Graduate Post Graduate 01.00% respondent whose education are secondary.00% 38.

31.00% Occupation Home Maker 6% students 31% Service 39% Retired 6% Self Employed 18% INTERPRETATION.00% 06.Occupation Home maker Service Self Employed Retired Students 06.00% respondent whose occupation is Home maker. 18. 06. 39.00% 31. service self employed.00% 39. .00%.There are 06.00%.00%.00%. retired and student respectively in my study.00% 18.

00% 01. 01. 01.00% Banks five bank 1% two bank 28% one bank 62% INTERPRETATION.00% 08.00%.Banks One bank Two bank Three bank Four bank Five bank four bank 1% three bank 8% 62. . 28.00% 01.four bank.00% 28.There are 62.five bank respectively in my study.00%.00%.three bank.00%.two bank. 8.00% respondent who availing the bank is one bank.

.00% Satisfied with bank No 4% Yes 96% INTERPRETATION.00% respondent whose satisfied with their bank or not respectively in my study.00% 06.Satisfied with bank Yes No 94.00%. 04.There are 96.

00% 28.There are 68.00% Three service 4% Four service 0% Avaling Service Five service 0% Two service 28% One service 68% INTERPRETATION.00% 04. 00. four service. five service respectively in my study.00%.00% respondent who availing services like one service. 28.00% 00.Availing service One Service Two Service Three Service Four Service Five Service 68.00% 00. two service.00%.00%. . 00. 04.00%. three service.

00%.There are 61.00% Availing telephone service No 39% Yes 61% INTERPRETATION.00%.00% 39.Avail telephone service Yes No 61. .00%. 39. 72. 00.00%.00% respondent who availing services of telephone respectively in my study. 00.

satisfied.5. 17.Describe your views about Mobile Customer Service Representatives (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied).4.51. dissatisfied. Call answering time Flaweless/correct operations Understanding and replying queries correctly Communication skills/positive approach General assessment about the service 1 4 3 8 12 14 2 5 19 24 25 22 3 51 47 43 42 44 4 17 21 11 13 8 5 23 10 14 8 12 Call answering time very satisfied 5% highly satisfied 4% very dissatisfied 23% satisfied 51% dissatisfied 17% INTERPRETATION.00%.00%.00%. .There are 23. very satisfied and highly satisfied respectively by the service of the bank.00% customers who is very Dissatisfied.00%.

47.There are 14%.correct operation highly satisfied 3% Very dissatisfied 10% very satisfied 19% dissatisfied 21% satisfied 47% INTERPRETATION.00%19.03. understanding and replying quries correctly highly satisfied 8% very dissatisfied 14% very satisfied 24% dissatisfied 11% satisfied 43% INTERPRETATION.21.43%.11%.There are 10. dissatisfied.24%. . very satisfied and highly satisfied respectively by the service of the bank. satisfied.00%.00%.00%. satisfied.8% customers who is very Dissatisfied. dissatisfied. very satisfied and highly satisfied respectively by the service of the bank.00% customers who is very Dissatisfied.

There are 8%. very satisfied and highly satisfied respectively by the service of the bank. satisfied.42%.14% customers who is very Dissatisfied. satisfied.12% customers who is very Dissatisfied. . General assessment about the service very dissatisfied highly satisfied 13% 16% very satisfied 13% dissatisfied 9% satisfied 49% INTERPRETATION. dissatisfied. very satisfied and highly satisfied respectively by the service of the bank.8%.25%. dissatisfied.44%12%.13%.communication skills very dissatisfied 8% highly satisfied 12% dissatisfied 13% very satisfied 25% satisfied 42% INTERPRETATION.There are 12%.

14% customers who is very Dissatisfied.Describe your views about Branch Banking (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied). . satisfied. very satisfied and highly satisfied respectively by the service of the bank. 1 9 5 9 9 2 10 25 22 24 3 45 34 39 42 4 10 19 18 12 5 26 17 11 13 Behaviour of the staff Time taken to process the transaction Working Hours General assessment about the services provided by the branch Behaviour of the staff very highly dissatisfied satisfied 12% 14% dissatisfied 8% very satisfied 22% satisfied 44% INTERPRETATION.8%.There are 12%.22%.44%. dissatisfied.

25%.There are 17%.22%. dissatisfied. very satisfied and highly satisfied respectively by the service of the bank.34%. . Working hours highly satisfied Very dissatisfied 9% 11% very satisfied 22% dissatisfied 18% satisfied 40% INTERPRETATION. satisfied.39%.9% customers who is very Dissatisfied.19%.5% customers who is very Dissatisfied.Time taken to process the transaction highly satisfied 5% very dissatisfied 17% very satisfied 25% dissatisfied 19% satisfied 34% INTERPRETATION. dissatisfied.18%.There are 11%. satisfied. very satisfied and highly satisfied respectively by the service of the bank.

very satisfied and highly satisfied respectively by the service of the bank.24%.There are 13%.12%. dissatisfied.9% customers who is very Dissatisfied. satisfied.42%. .General assessment about the service provided by the branch highly satisfied 9% Very dissatisfied 13% dissatisfied 12% very satisfied 24% satisfied 42% INTERPRETATION.

1 4 3 5 10 11 2 9 24 20 18 23 3 49 36 45 44 40 4 16 19 16 18 10 5 22 18 14 10 16 Page setup/Menu flow Ease of use/navigation Speed of page loading Variety of transactipons General assessment about the service highly satisfied 4% very satisfied 9% Page setup very dissatisfied 22% dissatisfied 16% satisfied 49% INTERPRETATION. dissatisfied.There are 22%.4% customers who is very Dissatisfied.Describe your views about Internet Banking services (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied).16%. .9%. satisfied. very satisfied and highly satisfied respectively by the service of the bank.49%.

dissatisfied.19%.24%.highly satisfied 3% Ease of use very satisfied 24% very dissatisfied 18% dissatisfied 19% satisfied 36% INTERPRETATION. very satisfied and highly satisfied respectively by the service of the bank.3% customers who is very Dissatisfied. satisfied.5% customers who is very Dissatisfied. dissatisfied.36%. satisfied.There are 18%. highly satisfied 5% Speed of page loading very dissatisfied 14% very satisfied 20% dissatisfied 16% satisfied 45% INTERPRETATION.There are 14%.16%. .45%. very satisfied and highly satisfied respectively by the service of the bank.20%.

10%. dissatisfied. very satisfied and highly satisfied respectively by the service of the bank.18%.40%.23%. satisfied.10%customers who is very Dissatisfied.44%. satisfied.18%. very satisfied and highly satisfied respectively by the service of the bank General assessment about the internet service highly satisfied 11% very dissatisfied 16% very satisfied 23% dissatisfied 10% satisfied 40% INTERPRETATION. dissatisfied.There are 10%. .Variety of transactions very dissatisfied 10% highly satisfied 10% very satisfied 18% dissatisfied 18% satisfied 44% INTERPRETATION.There are 16%.11% customers who is very Dissatisfied.

7% customers who is very Dissatisfied. satisfied. dissatisfied.Describe your views about ATM Banking services (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied).42%. .There are 27%. 1 7 9 5 16 16 2 17 20 25 23 19 3 42 37 46 35 41 4 7 21 15 20 15 5 27 13 9 6 9 Atm network distribution Continuous service Variety of transactions Easy of screen use General assessment about the service highly satisfied 7% Atm network distribution very satisfied 17% very dissatisfied 27% satisfied 42% dissatisfied 7% INTERPRETATION.17%. very satisfied and highly satisfied respectively by the service of the bank.7%.

. satisfied. very satisfied and highly satisfied respectively by the service of the bank.Continious service highly satisfied 9% very dissatisfied 13% very satisfied 20% dissatisfied 21% satisfied 37% INTERPRETATION.20%.5% customers who is very Dissatisfied.There are 9%.9% customers who is very Dissatisfied. satisfied. Variety of transaction highly satisfied 5% very dissatisfied 9% very satisfied 25% dissatisfied 15% satisfied 46% INTERPRETATION.46%.15%. dissatisfied. very satisfied and highly satisfied respectively by the service of the bank. dissatisfied.There are 13%.21%.37%.25%.

dissatisfied.23%.There are 9%. very satisfied and highly satisfied respectively by the service of the bank.16% customers who is very Dissatisfied.19%. dissatisfied.Easy of screen use Very dissatisfied 6% highly satisfied 16% dissatisfied 20% very satisfied 23% satisfied 35% INTERPRETATION.15%. very satisfied and highly satisfied respectively by the service of the bank.There are 6%.35%.16% customers who is very Dissatisfied.41%.20%. satisfied. satisfied. General assessment about Atm service very dissatisfied 9% highly satisfied 16% dissatisfied 15% very satisfied 19% satisfied 41% INTERPRETATION. .

94 1.118 1.17 1.03 Std.224 1.950 1.115 1.140 1.00 3.9.386 .149 1.66 2.25 1.51 .422 1.250 1. Deviation .057 1.772 .86 3.035 1.193 .20 3.36 .57 2. STATISTICAL DATA Descriptives Descriptive Statistics N Gender Marital status Monthly Faimly income Age Education Occupation Name of the bank Satisfied with bank Availing services avail telephone banking Call answering time Correct operation Understanding correctly communication skills General assessment of service Behaviour of staff Time taken of transaction Working hours General assessment of branch Page setup Ease of use Speed of page loading Varioety of transaction General assessment of internet 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Minimum 1 1 1 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Maximum 2 2 5 5 5 5 5 1 3 1 5 5 5 5 5 5 5 12 5 5 5 5 5 5 Mean 1.490 1.04 2.560 .61 2.054 1.104 1.36 1.02 3.073 1.030 .82 3.65 3.082 1.84 3.75 2.90 4.479 1.01 3.09 3.50 2.482 .18 2.133 1.239 .

397 df 99 Sig.193 1.23 3. (2-tailed) .91 3.115 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet 25.149 Std.27 . Error Mean .127 1.02 3.70 2.18 1.030 Lower 2.985 1.235 1.149 T-Test One-Sample Statistics N General assessment of internet General assessment of atm 100 100 Mean 3.79 Upper 3.138 .000 Mean Difference 3.03 3. Deviation 1.Atm network distribution Continuous service Variety of transaction Easy of screen use General assessment of atm Valid N (listwise) 100 100 100 100 100 100 1 1 1 1 1 5 5 5 5 5 2.119 .18 Std.

79 2. Deviation 1.One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet general assessment of atm 25.27 .000 .397 27.27 3.95 Upper 3.030 Lower 2.107 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet 25.073 Std.000 Mean Difference 3. (2-tailed) .397 df 99 Sig.79 Upper 3.41 From this table we can get that there is no significant difference between the general assessment of internet & general assessment of atm. Error Mean .103 .030 3. (2-tailed) . T-Test One-Sample Statistics N General assessment of internet General assessment of atm Call answering time communication skills 100 100 100 100 Mean 3.115 .193 1.000 Mean Difference 3.20 Std.149 1.180 Lower 2.030 1.18 2.03 3.50 3.670 df 99 99 Sig.119 .

180 2.114 One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet general assessment of atm call answering time communication skills Atm network distribution 25.397 27.000 .41 2. T-Test One-Sample Statistics N General assessment of internet General assessment of atm Call answering time communication skills Atm network distribution Continuous service 100 100 100 100 100 100 Mean 3.41 2.18 2.275 29. Deviation 1.107 .235 1.000 .821 99 99 99 .200 2.30 2.27 3.30 2.119 .670 24.20 2.073 1.95 .000 3.500 3.70 3.70 2.45 Upper 3. b/w the general assessment of internet & general assessment of atm.275 29.670 24.000 . Error Mean .700 Lower 2.99 2.000 .103 .149 1. (2-tailed) .180 2.200 2.115 .70 3.95 2.000 .862 df 99 99 99 99 99 Sig.95 2.500 3.138 Std.91 Std. call answering time.193 1.000 .41 From this table we can get that there is no significant diff.41 2.000 Mean Difference 3.03 3.79 2. communication skills.general assessment of atm call answering time communication skills 27.821 21.030 3.50 3.124 .99 3.030 1.

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet general assessment of atm call answering time communication skills Atm network distribution continuous service 25.79 2.275 29.056 Paired Samples Correlations N Pair 1 Name of the bank & Availing services 100 Correlation .150 Std.910 Lower 2.670 24. (2-tailed) .Availing services .397 27.030 3.292 .36 N 100 100 Std. Deviation .14 Paired Samples Statistics Mean Pair 1 Name of the bank Availing services 1.95 2.008 Upper . Deviation .70 3.45 2.95 3.99 2.180 2.772 .000 .500 3. Error Mean .30 2.077 .200 2.716 Std.41 2.000 Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean Pair 1 Name of the bank .573 df 99 99 99 99 99 99 Sig.700 2.27 3.41 2.560 Std.000 .000 .51 1.459 Sig.072 Lower . .000 Mean Difference 3.68 Upper 3. Error Mean .862 25.000 .821 21.000 .

94 1.Availing services Education .18 3.056 .36 4. Error Mean .560 1. Error Mean . Deviation .103 . Error Mean .139 Paired Samples Correlations N Pair 1 Name of the bank & Availing services Pair 2 Education & Occupation 100 -.02 3.017 Std.118 Std.150 .17 .850 Std.035 1.149 1.772 .02 3. .250 Paired Samples Statistics Mean Pair 1 Name of the bank Availing services Pair 2 Education Occupation Pair 3 Satisfied with bank Availing services Pair 4 General assessment of service General assessment of branch 1.202 Lower .000 100 Correlation .008 .51 1. Deviation .459 Sig.077 .560 1.716 2.292 1.Paired Samples Statistics Mean Pair 1 Name of the bank Availing services Pair 2 Education Occupation 1.103 .035 1.386 .17 N 100 100 100 100 Std.056 .36 4.772 .Occupation .072 .239 .056 .04 N 100 100 100 100 100 100 100 100 Std.386 Std.36 3.115 .000 Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean Pair 1 Pair 2 Name of the bank .112 .51 1.450 Upper .560 1. Deviation .139 .024 .077 .376 .

000 .150 Std.Pair 5 General assessment of internet General assessment of atm 3. (2-tailed) .231 99 .095 df 99 Sig.03 3.376 .386 100 Correlation . Error Mean .017 .850 -.149 1.008 Upper .000 .129 99 99 .000 100 100 -.03 100 100 100 100 1.292 t 2.000 100 .Availing services Pair 2 Pair 3 Education .086 .000 .137 .001 100 .589 . Deviation .420 2.459 Sig.119 .394 .059 .140 1.18 3.221 .088 .716 Std.072 Lower .214 -7.119 Pair 6 General assessment of service General assessment of internet Paired Samples Correlations N Pair 1 Name of the bank & Availing services Pair 2 Pair 3 Education & Occupation Satisfied with bank & Availing services Pair 4 General assessment of service & General assessment of branch Pair 5 General assessment of internet & General assessment of atm Pair 6 General assessment of service & General assessment of internet 100 .General assessment of branch .114 -.537 1.450 -.497 . .18 3.115 .303 4.115 .193 1.000 Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean Pair 1 Name of the bank .193 .366 1.202 .328 .250 -.149 1.039 .Occupation Satisfied with bank Availing services Pair 4 General assessment of service .

272 Pair 6 General assessment of service .359 .120 -1.406 1.129 -.136 -.070 .104 99 .150 1.070 .290 . (2-tailed) N Marital status Pearson Correlation Sig.163 99 .106 .150 1.420 .General assessment of internet .490 100 1 Correlations .General assessment of atm -.248 Correlations Gender Gender Pearson Correlation Sig.490 100 100 1 Marital status .Pair 5 General assessment of internet . (2-tailed) N 100 .

458 ** .175 Sig.098 .079 Time taken of .000 100 . (2-tailed) Sig.490 .175 -.137 .141 .Correlations Behaviour of Gender Gender Pearson Correlation Sig.005 100 100 ** . (2-tailed) 1 Marital status .487 ** .137 N N 100 Behaviour of staff Pearson Correlation Time taken of transaction Pearson Correlation -.163 100 100 -. (2-tailed) Gender Marital status N 100 Pearson Correlation Pearson Correlation .150 Sig.01 level (2-tailed).956 100 100 -.000 100 1 100 1 .276 ** .067 .000 100 .490 N N 100 Marital status Pearson Correlation Behaviour of staff Pearson Correlation -.455 ** Time taken of transaction -.956 100 .163 100 .956 100 .175 -. (2-tailed) .070 Sig.622 .471 ** N 100 **. (2-tailed) .471 ** -.005 100 .137 Marital status 100 .150 .150 Sig.000 100 .000 100 100 .276 . (2-tailed) N -.000 100 1 Pearson Correlation 100 -.082 100 100 1 100 -.000 100 .437 transaction 100 -.455 ** 100 .082 Behaviour of staff 100 -. Speed of page loading Pearson Correlation Sig.006 .067 .458 .507 100 100 -. (2-tailed) N N Time taken of transaction Page setup .332 100 100 -.000 100 100 .098 .070 -.000 100 .141 100 -.079 .507 .708 ** Speed of page Page setup -. (2-tailed) Sig.067 ** .067 .708 ** .006 .050 .000 . (2-tailed) Sig.050 loading -.006 .437 100 100 1 .070 .332 100 staff -.000 100 100 .000 100 100 1 .708 ** .006 ** .956 .507 100 1 100 100 -. (2-tailed) N -.708 .507 .082 .137 . Correlation is significant at the 0.150 -.622 .490 .070 -.487 ** Pearson Correlation Sig.490 Gender 100 1 1 100 100 .082 .175 .

Predictors: (Constant).999 a. .Variables Entered/Removed Variables Model 1 Age Entered a b Variables Removed Method .278 a Std. b. Age ANOVA Model Sum of Squares Df b Mean Square F Sig. Error of the Estimate R Square . Dependent Variable: Education Model Summary Adjusted R Model 1 R .077 Square . Enter a.068 . All requested variables entered.

b. Age b.1 Regression Residual Total 8.181 .860 Sig.000 .960 1 98 99 8.278 Coefficients Beta t 18.796 105. Error of the Estimate . Dependent Variable: Availing services Model Summary Adjusted R Model R R Square Square Std.164 97.089 .069 2. Enter a.196 . Dependent Variable: Education B 3. Predictors: (Constant). .005 a a.005 Variables Entered/Removed Variables Model 1 Entered Satisfied with bank a b Variables Removed Method .254 Std. Dependent Variable: Education Coefficients a Standardized Unstandardized Coefficients Model 1 (Constant) Age a.998 8.164 . Error .538 . All requested variables entered.

759 Sig. .386 a a.1 .206 Std. Dependent Variable: Availing services Coefficients a Standardized Unstandardized Coefficients Model 1 (Constant) Satisfied with bank a.088 Coefficients Beta t 5. Satisfied with bank ANOVA Model 1 Regression Residual Total Sum of Squares .002 . Dependent Variable: Availing services B 1. .239 30. Error . .386 Variables Entered/Removed Variables Model 1 Entered communication skills a b Variables Removed Method .561 a.040 Df b Mean Square 1 98 99 . Enter a.000 .801 31.871 Sig. Predictors: (Constant). All requested variables entered.088 a .239 .314 F .236 .008 -.097 . Predictors: (Constant).229 . Satisfied with bank b.167 .

088 . Error .176 . Dependent Variable: Call answering time Coefficients a Standardized Unstandardized Coefficients Model 1 (Constant) communication skills a.185 Square .377 85. communication skills b. Predictors: (Constant).Variables Entered/Removed Variables Model 1 Entered communication skills a b Variables Removed Method .430 Coefficients Beta t 3.430 a Std. Dependent Variable: Call answering time B 1.412 Std. b. .000 .874 F 22. Dependent Variable: Call answering time Model Summary Adjusted R Model 1 R .178 Sig.935 a. .998 4.709 Sig. Enter a. communication skills ANOVA Model 1 Regression Residual Total Sum of Squares 19.295 .000 . All requested variables entered.181 . Predictors: (Constant).377 .623 105.000 a a. Error of the Estimate R Square .000 Df b Mean Square 1 98 99 19.

257 R Square .016 154. Enter a.000 Square -.010 a Std.734 154.920 a a. Occupation ANOVA Model 1 Regression Residual Total Sum of Squares . Error of the Estimate 1. All requested variables entered. Occupation b. Predictors: (Constant).010 Sig.Variables Entered/Removed Variables Model 1 Entered Occupation a b Variables Removed Method . Predictors: (Constant).750 Df b Mean Square 1 98 99 .010 a. . . Dependent Variable: Monthly Faimly income Coefficients a Standardized Unstandardized Coefficients Model B Std.016 1. Error Coefficients Beta t Sig. b. Dependent Variable: Monthly Faimly income Model Summary Adjusted R Model 1 R .579 F .

009 .221 .224 .315 .010 10.000 .1 (Constant) Occupation 3.920 a.101 .091 . Dependent Variable: Monthly Faimly income .

Chapter 10: QUESTIONNAIRE .

Age Below 25 years 45-55 years 5. . I am a student of Amity Business School. Name of the banks in which you are having account? ……………… ……………… 8. Lucknow. Marital status Married 3. I have undertaken a project for which we intend to pose a questionnaire aimed at comparing the customer satisfaction in the Indian banking sector. Monthly Family income Less than Rs10000 Rs30000-40000 4. Gender Male 2.Dear Respondent. Are you satisfied with your bank? YES NO …………………. ………………… . Name of Customer________________________________ Mobile No.______________________ Please answer the questions and tick at the place that matches your opinion. Occupation Home maker Retired Female Unmarried Rs10000-20000 More than 40000 Rs20000-30000 25-35 years Above 55 years 35-45 years Higher secondary Post Graduate Undergraduate Service Students Self employed 7.……………….. Demographic profile of the customers 1.. Education Secondary Graduate 6.

(1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied). 10. specify the reason if not using the service. What are the services that you avail from your bank? ……………… …………….. 1 Page setup/Menu flow Ease of use/navigation Speed of page loading 2 3 4 5 2 3 4 5 2 3 4 5 . 1. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied). Do you avail telephone banking service? YES NO Mobile/Tele Banking.9. …………………. ………………….... ………………….How would you describe your views about Customer Service Representatives? Please tick in The appropriate column. specify the Reason if not using the service 1 Call answering time Flaweless/correct operations Understanding and replying quires correctly Communication skills/positive approach General assessment about the service Branch Banking How would you describe your views about Branch Banking? Please tick in the appropriate column. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied) 1 Behaviour of the staff Time taken to process the transaction Working Hours General assessment about the services provided by the branch Internet Banking How would you describe your views about Internet Banking services? Please tick in the appropriate column..

Reason if not using the service 1 Atm network distribution Continuous service Variety of transactions Easy of screen use General assessment about the service 2 3 4 5 . 1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied.Variety of transactipons General assessment about the service ATM Banking How would you describe your views about ATM Banking services? Please tick in the appropriate column.

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