REPORT

PREPARED BY:
PATEL VIPUL (097520592058)

PATEL NISIT (097520592054)
PRESENTED TO:
GUJARAT TECHNOLOGICAL UNIVERSITY
1
 We have taken 6 Banks which represent the
Nationalized, Private and Co-Operative Banks of the
Banking Industry in India.
 SBI
 Bank of Baroda
 HDFC Bank
 Kotak Mahindra Bank
 Mehsana Urban co operative bank ltd
 Unjha Nagarik sahkari Bank ltd
 The criteria for selecting these banks were their

deposit base. We have limited our Service Category to
the core services in Retail Banking and a few
specialized services. 2
 Major topics we have attempted to cover in this project
are to: -
 Explore the services and products offered by the banks to

individual customers.
 Understand the perception of the management with respect to
services offered by banks.
 Understand the perception of the customers with respect to
services offered by banks.
 Analyze whether there is a gap between the customer and
management perceptions about the services offered by the
banks.
 Conclude and enumerate the recommendations that might help
to reduce the gaps that exist and foster the relationship of the
customer more with the bank. 3
 Retail banking is typical mass-market banking where
individual customers use local branches of larger
commercial banks. Services offered include: savings
and checking accounts, mortgages, personal loans,
debit cards, credit cards, and so forth. This is very
different from wholesale banking.
 Reasons for the change over from corporate banking to
retail banking
 The financial sector reforms undertaken by the Government
 The risks involved in corporate loans are very high as
corporate have to keep all their eggs in one basket.
 Interest rate sensitive
 Retail Banking gives a lot of stability and public image to banks
as compared to corporate banking.
4
 Through product innovations and competitive pricing
strategies Banks can foster business relationship with
customers to retain the existing clients and attract new ones.
 Retail Banking offers opportunities to banks to cross sell

other retail products like credit card, insurance, mutual fund
products and demate facilities etc.
 Retail Banking clients are generally loyal and tend not to

change from one Bank to another very often.
 The Indian mindset is also changing and consumers prefer

to improve their quality of life even if it means borrowing for
facilities like housing, consumer goods vehicles and
vacationing etc. 5
 PRODUCTS:-
 Fixed Deposit:
 Savings A/c:
 Current A/c:
 Demate Account:
 Loans and Advances:
 SERVICES :-
 Credit Cards:
 Debit Cards
 Net Banking
 Mobile Banking
 Phone Banking
 Anywhere Banking
 Automated Teller Machines ( ATM)
 Smart Card 6
 Stafford (1996) conducted research to identify the core
elements of BSQ and identified seven attributes in
assessing BSQ. They are as follows:
 Bank atmosphere - environment of the bank including the attitude
of the staffs.
 Relationship - it indicates the personal relationship with the bank
employees.
 Rates and charges - an individual’s perception of BSQ is affected
by the low cost and high interest rates.
 Available and convenient services - it indicates the full range of
available services, convenient and easily accessible.
 ATMs - it indicates the availability of the automatic teller machines.
 Reliability/honesty - it emphasizes on the solid bank ratings and
reliable, honest staff.
 Tellers - enough and accessible tellers.
7
 Research Methodology
 Research questions
 What are the specific service qualities attributes that influence
customer satisfaction in the retail banking sector in Bangladesh?
 What are the specific predictors that affect the customer loyalty in the
retail banking sector in Bangladesh?
 How the proposed models contribute in the retail banking sector in
Bangladesh?
 Selecting Samples
 the sample for this study was selected from the retail bank
customers in Bangladesh. Anderson et al (1998) suggested that
the sample size of 100-200 is adequate for the structural
equation modeling.
8
 Data collection procedures
 They administered the survey in Dhaka, Comilla and Feni during two weeks
period in July and August, 2010
 The first part of the questionnaire consists of the general information of the
respondent
 Service quality attributes were used in the second part The third part of the
questionnaire explains the customer satisfaction and this is the
independent/dependent variable of this research. The final part consists of
customer loyalty and this is the dependent variable of this research
 Analysis and Presentation of Findings
 Based on the 100 sample bank customers, the percentage of male and female
respondents are 77 and 23 respectively, which shows the male dominancy of
bank customers.
 53% of respondents fell in the age range of 21-30, and 32% fell in the range of
31-40. In terms of qualification, the respondents are almost equal and that is,
Undergraduate (31%), Graduate (33%), and Post Graduate (35%). 63% of
respondents are service holder and 43% of respondents earn more than
20000 Taka per month.
9
 Sample size :- 100 customers & 6 Managers
 Area of study: Unjha
 Research Design :
 Primary Data collection method
 Primary data will be collected through survey method
 Structured questionnaire
 Secondary Data collection method
 Reference books
 Internets
 magazines
10
 Explore the services offered by the banks to
individual customers.
 Identify strategies Adopted by individual banks to
increase their market share in retail banking.
 Understand the perception of the customers and
the Bank management with respect to offered
services
 To analyze the gap between the customer and
management perceptions about the services
offered by banks.
 To find out the innovations required to reduce the
gap and increase the customer base of banks.
11
H0: There is no Gap between Management and customer Perception with regarding
courtesy level of employee
H1: There is Gap between Management and customer Perception with regarding
courtesy level of employee
The calculate value of χ2 is 17.755. The tabulate value of χ2 at 5% level of significance

and 3 degree of freedom is 7.8147. So chi-square value, χ2 = 17.755, is greater than the
critical chi-square table value, χ2 = 7.8147, the decision is to reject the null hypothesis.
Means there is Gap between management perception and customer perception with
regarding courtesy level of employee
12
H0: There is No Gap between Management and customer Perception with regarding
Knowledge of Bank staff
Knowledge of Bank staff
The calculate value of χ2 is 3.481. The tabulate value of χ2 at 5% level of significance and
3 degree of freedom is 7.8147. So chi-square value, χ2 = 3.481, is less than the critical chi-
square table value, χ2 = 7.8147, the decision is to Accept the null hypothesis. Means there
is no Gap between management perception and customer perception with regarding
Knowledge of bank staff
13
Transaction time taken for cash withdrawal/deposits.
3 degree of freedom is 7.8147. So chi-square value, χ2 = 65.072, is Greater than the critical
chi-square table value, χ2 = 7.8147, the decision is to Reject the null hypothesis. Means
there is Gap between management perception and customer perception with regarding
14
Product or service innovation.
H1:There is Gap between Management and customer Perception with regarding Product
or service innovation.
The calculate value of χ2 is 25.012. The tabulate value of χ2 at 5% level of significance and 3
degree of freedom is 7.8147. So chi-square value, χ2 = 25.012, is greater than the critical
chi-square table value, χ2 = 7.8147, the decision is to reject the null hypothesis. Means
Product or service innovation.
15
informed of deposit rates /service charges.
4 degree of freedom is 9.488. So chi-square value, χ2 = 44.372, is greater than the critical
chi-square table value, χ2 = 9.488, the decision is to reject the null hypothesis. Means
16
comfort Branch Facility.
H1: There is Gap between Management and customer Perception with regarding comfort
Branch Facility.
The calculate value of χ2 is 29.042. The tabulate value of χ2 at 5% level of significance and 4
degree of freedom is 9.488. So chi-square value, χ2 = 29.042, is greater than the critical chi-
square table value, χ2 = 9.488, the decision is to reject the null hypothesis. Means there is
Gap between management perception and customer perception with regarding comfort
branch facility.
17
Quality of ATM services.
Quality of ATM services.

and 4 degree of freedom is 9.488. So chi-square value, χ2 = 2.455, is less than the
critical chi-square table value, χ2 = 9.488, the decision is to accept the null hypothesis.
Means there is no Gap between management perception and customer perception with
regarding quality of ATM services.
18
processing and disbursing loans.
processing and disbursing loans.

regarding processing and disbursing loans. 19
phone/net banking facility.
phone/net banking facility.

regarding phone/net banking facility offered.
20
 Except HDFC bank in all other banks there is a Gap existing in the
employee’s courtesy level. This is type 1 Gap : ( Not knowing what
customers expect.)
 The staff’s level of being informed and knowledgeable is seen to be high

in private sector banks as compare to the public sector bank., but still
there seems to be a huge gap of Type 4 ( Not matching performance to
promises) & Type 1 (Not knowing what customers expect)
 Due to introduction of new core banking technology transaction time has

reduced significantly, still some of the customers during the survey
complained of long transaction time. This is because of Type 3 Gap (Not
delivering to the service standards)
 Management perceives that they have introduced enough innovating

services and products in past 2 years but customer are not entirely
satisfied. Hence it is seen that there is Type1 Gap (Not knowing what
customers expect)
21
 Contradicting the managements promise the customers feels that banks are not
keeping the customers well informed about the changing deposit & service charge
rates .Such a gap is result of Type 4 Gap where in inadequate horizontal
communications & ineffective management of customer expectations is
experienced.
 The management and the customer’s perceptions are matching to some extents in
the case of comfort facility provided by the banks. It is observed that public sector
banks tend to ignore these services where as private banks think that providing
such facilities will make a positive impact on customers.
 In the case of ATM service there is no gap because of technological advancements,

today most of the ATM centers can be shared by customers of all banks. But were
debit /credit card service is concerned there is huge gap due to the hidden costs
that are imposed on customers by some of the banks.
 In disbursing and processing loans banks have to follow very strict steps hence
time taken is more due to which a huge Gap is observed by customers.
 Phone/net banking are new facilities hence little gap is observed in perceptions
22
Thank You
23

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PREPARED BY:

PATEL VIPUL (097520592058)

 The criteria for selecting these banks were their

 Explore the services and products offered by the banks to

 Retail Banking offers opportunities to banks to cross sell

 Retail Banking clients are generally loyal and tend not to

 The Indian mindset is also changing and consumers prefer

The calculate value of χ2 is 17.755. The tabulate value of χ2 at 5% level of significance

The calculate value of χ2 is 2.455. The tabulate value of χ2 at 5% level of significance

The calculate value of χ2 is 9.716. The tabulate value of χ2 at 5% level of significance

The calculate value of χ2 is 6.176. The tabulate value of χ2 at 5% level of significance

 The staff’s level of being informed and knowledgeable is seen to be high

 Due to introduction of new core banking technology transaction time has

 Management perceives that they have introduced enough innovating

 In the case of ATM service there is no gap because of technological advancements,

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