1

1.1 INTRODUCTION
India has been a progressive nation ever since its origins 5000 years ago. Indians
intellect has always been so advanced that it has set the pace of progress for the world
to follow. It was India that gave the world many path-breaking inventions.
India contributed the numeral 0, innovated by Aryabhatta to the number system that is
the very basis of the decimal and the places value systems. The art of navigation was
born in India 6,000 years ago. Infact, the very word navigation has been derived from
the Sanskrit word (Enaugatih). The game of chess is an Indian invention. This sense
of intellectual adventure, exploration and experimentation has been our proud
heritage. A heritage called swadeshi (of the nation).
At the turn of the 20th century, the first rumblings of an organized freedom struggle
were heard and felt across the length and breath of undivided India. The British had
entered the country under the grab of the East India Trading Company, and it was
through their sharp trading skills that they came to subjugate the entire Indian subcontinent. It was thus appropriate that against the backdrop of the Indian freedom
struggle, there was an organization whose founder father had the clear objective of
achieving economic independence, the last bastion of British dominance in India.
The ancient banking system of India constituted of indigenous bankers. They have
been carrying on their old age banking operations in different parts of the country
under different names.
Then came commercial banking in 1770 with the establishment of the first joint stock
bank, named the Bank of Hindustan, by an English agency in Calcutta, but this bank
failed in 1832. Infact, real beginning of modern commercial banking in the country
was made with the establishment of the Bank Of Bengal 1806. Later on, the bank Of
Bombay and Bank of Madras were also set up in 1840 and 1843 respectively. All
these were called presidency Banks.
The aim of the project is to understand the core concept of parameters for loan
proposals, as this topic is related to finance. As banking is the nerve centre of todays
economy and with the help of the banking facilities, much other business works. It is

one which promotes economic developments. It deals with the financial services
which is the prime factor for any business kind.
Bank consist exchange of money, lending of money, depositing of money and
transmitting of money. It involves many functions like deposits, advances loans,
utility or agency function etc.
Making project Loans is one of the most important functions of the bank and test of
the banks strength depends considerable on the quality of its advances. The
proportion of loans and advances bear to the total deposits. It is the advances which
bring most of the earnings for the bank. Bank accepts deposits from those who have
surplus funds and grants loans and advances to those who need them.
The bank acts as a middleman mobilizing the saving of people and using them to
assist industry and trade and thereby promote economic development of the country.
Banks usually do not make loans and advances in hard cash but allow a right to draw
cheques to the limit fixed. Loans and advances are generally made by banks in the
following forms:

Loans

Cash credits

Overdrafts

Purchasing and discounting of bills

Globalization is growing faster than ever. In order to keep up with the

competition companies are thinking globally to expand their business across
border. National boundaries are falling and multinational companies are
increasing in number. The focus on internationalization efforts and development
of global strategies has tended to fall upon manufacturing companies. However
due to the growth of services sector and its important role for many countries in
compensating trade deficits, as well as its increasing internationalization,
services companies have become more and more important.
Today services are the fastest growing part of world and account for the fastest
growing part of world trade. One of the sectors within the services industry that
has been influenced the most by the changes in the globalization is banking
sector
3

1.1.1 Major Players in Private Banking Sector

ICICI Bank
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is India's
largest private sector bank in market capitalization and second largest overall in terms
of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a
network of over 1,399 branches, 22 regional offices and 49 regional processing
centres, about 4,485 ATMs (at the end of September 2008), and 24 million customers
(at the end of July 2007). ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery
channels and specialized subsidiaries and affiliates in the areas of investment banking,
life and non-life insurance, venture capital and asset management. ICICI Bank is also
the largest issuer of credit cards in India. ICICI Bank has got its equity shares listed
on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock
Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches
and representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking
units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium,
Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia,
Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the
Bank is targeting the NRI (Non-Resident Indian) population in particular. ICICI
reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total
income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.

AXIS Bank
Axis Bank, previously called UTI Bank, was the first of the new private banks to have
begun operations in 1994, after the Government of India allowed new private banks to
be established. The Bank was promoted jointly by the Administrator of the Specified

Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India
(LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The
New India Assurance Company, The Oriental Insurance Corporation and United
Insurance Company Ltd. UTI-I holds a special position in the Indian capital markets
and has promoted many leading financial institutions in the countrys J Nayak is its
Chairman and Managing Director. As on the year ended March 31, 2006 the Bank had
a net worth of Rs. 2872.19 crores with the public holding (other than promoters) at
56.65%. Net Profit for the year was up 44.98% to Rs 485.08 crores.
At the end of April 2008,the Bank has a very wide network of more than 729 branch
offices and Extension Counters. The Bank has a network of over 3802 ATMs. The
Bank's Registered Office is at Ahmedabad and its Central Office is located at
Mumbai.

Standard Chartered Bank

Standard Chartered Bank (LSE: STAN, SEHK: 2888,OTCBB: SCBFF) is a British
bank headquartered in London with operations in more than seventy countries. It
operates a network of over 1,700 branches and outlets (including subsidiaries,
associates and joint ventures) and employs 73,000 people.
Despite its British base, it has few customers in the United Kingdom and 90% of its
profits come from Asia, Africa, and the Middle East. Because the bank's history is
entwined with the development of the British Empire its operations lie predominantly
in former British colonies, though over the past two decades it has expanded into
countries that have historically had little British influence. It aims to provide a safe
regulatory bridge between these developing economies. It now focuses on consumer,
corporate, and institutional banking, and on the provision of treasury servicesareas
in which the Group had particular strength and expertise.
Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock
Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is
Temasek Holdings. The name Standard Chartered comes from the two original banks

from which it was founded and which merged in 1969 The Chartered Bank of
India, Australia and China, and The Standard Bank of British South Africa.
The Chartered Bank was founded by Scotsman James Wilson following the grant of a
Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in
the Cape Province of South Africa in 1862 by another Scotsman John Paterson. Both
companies were keen to capitalize on the huge expansion of trade and to earn the
handsome profits to be made from financing the movement of goods from Europe to
the East and to Africa.
In those early years, both banks prospered. Chartered opened its first branches in
Bombay, Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in
1859. With the opening of the Suez Canal in 1869 and the extension of the telegraph
to China in 1871, Chartered was well placed to expand and develop its business.

HDFC Bank
HDFC Bank Ltd. (NYSE: HDB) is a commercial bank of India, incorporated in
August 1994, after the Reserve Bank of India allowed establishing private sector
banks. The Bank was promoted by the Housing Development Finance Corporation, a
premier housing finance company (set up in 1977) of India. HDFC Bank has 1,500
branches and over 2,890 ATMs, in 528 cities in India, and all branches of the bank are
linked on an online real-time basis.
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to
more than 1,000. Though, the official license was given to Centurion Bank of Punjab
branches, to continue working as HDFC Bank branches, on May 23, 2008.
On 15th January 2009, HDFC bank launched a Merits Scholarship Program for the
students studying from the 4th to 9th standard. Students will be judged on parameters
like academics, extra-curricular activities and written tests. Free registrations can be
made online by the parents, guardians or the elder brother or sister. The last date of
registration for the program is 15th Feb 09.

Promotion of Financial Services

Promotion is a direct way an organization tries to reach its publics. This is
performed through the five element of the promotion mix i.e. Advertising, Sale
Promotion, Personal Selling, Public Relations and Direct Marketing. With
growing importance of financial sector, pressures are escalating for more
effective marketing management of the financial services. Despite the recent
recessions, the financial services sector has continued to grow in term of
turnover and profits and thus has a supreme impact on the other sphere of
economy. Consequently, there are currently growing interest applying marketing
techniques and tools in financial services.
In banks the role of promotion has been redefined into managing long term
relationship with carefully selected customers, including construction of a
learning relationship with where the marketer maintain a dialogue with an
individual customer. Due to this fact, the personal are one of the most important
resources of bank. Their competence will determine the quality of bank and
how well it operates.

1.2 INTRODUCTION TO SERVICE QUALITY

1.2.1 Dimensions of Service Quality
Tangibility: This dimension deal with modern looking equipments and visual
appealing part of banks.
Reliability: This dimension has a direct positive effect on perceived service quality
and customer satisfaction in banking institutions. Banks must provide error free
service and secure online transactions to make customers feel comfortable.
Responsiveness: Customers expect that the banks must respond their inquiry
promptly. Responsiveness describes how often a bank voluntarily provides services
that are important to its customers. Researchers examining the responsiveness of
banking services have highlighted the importance of perceived service quality and
customer satisfaction.
7

Assurance: Customer expects that the bank must be secured and the behavior of the
employees must be encouraging.
Empathy: individual attention, customized service and convenient banking hours are
very much important in todays service.
In order to achieve better understanding of service quality in banking sector, the
proposed five service quality dimensions are conceptualized to illustrate the overall
service quality of the banking in relation to customers and providers perspective.
Banking was in the sector featuring medium goods and higher customer producer
interactions, since in banking, consumers and service providers interact personally
and the use of goods is at a medium level. Hence, in banking, where there are high
customer-producer interactions, the quality of service is determined to a large extent
by the skills and attitudes of people producing the service.
In the case of services, because customers are often either direct observers of the
production process or active participants, how the process is performed also has a
strong influence on the overall impression of the quality of service. A well-performed
service encounter may even overcome the negative impression caused by poor
technical quality as well as generate positive word-of-mouth, particularly if customers
can see that employees have worked very hard to satisfy them in the face of problems
outside their control. Employees are part of the process, which connects with the
customer at the point of sale, and hence employees remain the key to success at these
service encounters or moments of truth. It is these encounters with customers
during a service that are the most important determinants of overall customer
satisfaction, and a customers experience with the service will be defined by the brief
experience with the firms personnel and the firms systems. The rudeness of the
banks customer service representative, the abruptness of the employee at the teller
counter, or the lack of interest of the person at the check deposit counter can alter
ones overall attitude towards the service, perhaps even reversing the impression
caused by high technical quality.
Another important service quality factor, competence, is defined by whether the bank
performs the service right the first time, whether the employees of the bank tell
8

customers exactly when services will be performed, whether the bank lives up to its
promises, whether customers feel safe in their transactions with the bank and whether
the employees show a sincere interest in solving the customers problems. In short,
this dimension is related to the banks ability to perform the promised service
accurately and dependably. Performing the service dependably and accurately is the
heart of service marketing excellence. When a company performs a service carelessly,
when it makes avoidable mistakes, and when it fails to deliver on promises made to
attract customers, it shakes customers confidence in its capabilities and undermines
its chances of earning a reputation for service excellence.
It is very important to do the service right the first time. In case a service problem
does crop up, by resolving the problem to the customers satisfaction, the company
can significantly improve customer retention. However, companies fare best when
they prevent service problems altogether and fare worst when service problems occur
and the company either ignores them or does not resolve them to the customers
satisfaction.
Performing the service accurately is perhaps the most important factor in service
quality excellence. The cost of performing the service inaccurately includes not only
the cost of redoing the service but also the cost associated with negative word-ofmouth generated by displeased customers. In case of services, the factory is the field.
Again, services are intangible and hence the criteria for flawless services are more
subjective than the criteria for defect-free tangible goods. Hence for most services,
customers perceptions of whether the service has been performed correctly, and not
provider-established criteria, are the major determinants of reliability.
The service quality factor tangible is defined by whether the physical facilities and
materials associated with the service are visually appealing at the bank. These are all
factors that customers notice before or upon entering the bank. Such visual factors
help consumers form their initial impressions. A crucial challenge in service
marketing is that customers cannot see a service but can see the various tangibles
associated with it - all these tangibles, the service facilities, equipment and
communication materials are clues about the intangible service. If unmanaged, these
clues can send to the customers wrong messages about the service and render
ineffective the marketing strategy of the company. On the other hand, improving
9

quality through tangibles means attention to the smallest details that competitors
might consider trivial. Yet, these visible details can add up for customers and signal a
message of caring and competence.
Customers may reveal new aspects of service quality in banking that are important to
them, and these would have to be incorporated in the scale so as to further explore the
concept of service quality in the banking arena.

10

CHAPTER : 2

11

REVIEW OF LITERATURE
Reviews are the guidelines to understand the problem. Depending on the various
products and services offered, the following review has been discussed in brief as
follows:
Crystal and Mary (2010) studied that service quality is the customers judgment of
overall excellence of the service or the difference between customers expectation and
the actual service performed or perceived. Gronroos (1984) defines perceived service
quality as a consumption process in which the customer is part of the service process
that leads to an outcome or result. The way the customer perceives the service process
at the time of the service is more important than the outcome of the service. The
customers
expectation and perception of the service becomes important when the customer
thinks back to see if the perception exceeded the expectations (Siu& Cheung
2001,Kang& James, 2004).
Kamnath (2011) developed a service quality model and termed it as gap model . The
gap model is about giving managers the tools to improve service quality. The
consumer gap is the difference between the customers expectations of the services
and the perception of the services. To measure it a 22 item scale called
SERVQUAL(Service Quality) was used. SERVPERF(Service performance) is similar
to SERVQUAL, in that it uses the same 22 item scale to measure service quality, but
differs in the number of times the service quality is measured. SERVPERF(Cronin
and Taylor 1992) uses the 22 item scale once to measure the perception of service
quality; whereas the SERVQUAL uses the scale twice once to measure the expected
service quality and once to measure the perceived service quality.
Kamnath (2011) concluded when all we had was an 8-bit machine with 20MB of
storage running on an 8086 processor. Despite this, we ran the entire leasing
department of HDFC and ICICI. It taught us that we could effectively run an almost
paperless office and that technology can be applied in an easy-to-understand and costeffective way across the organization. Kamath believes that the Indian economy can

12

be put on a firm footing only if the benefits of economic growth percolate down to
rural India. His vision is to provide the whole range of financial services to people in
rural areas, so that they can be brought within the ambit of mainstream economic
activity.
Crystal and Mary (2012) described discussion on bank marketing suggests more
direct interaction with customers by direct mail or personal contact. Doing it proactively and by alternative methods: call centers, PC-banking, internet banking and
supermarket banking. Using branding and other retail marketing skills. Bankers have
tried to cut down on personal contact and may have alienated their customers.
Mukerjee (2013) contributed by kaushik mukerjee, is an account of the innovations
on CRM front as implemented in HDFC and ICICI Bank. HDFC and ICICI Bank,
the largest bank in private sector has realized that the key differentiator in a
competitive banking environment is the customer focus and the bank, therefore,
decided to implement CRM solution since 1999, which is called the Terra Data CRM
Solution. CRM in banking has been used to target customers, sales, consistent
interfacing with customers, etc. in HDFC and ICICI Bank. The article gives an
account of the benefits of CRM Initiatives that include: Customer Usage Patterns of
CRM Integrated Warehouse Data; New Product Development and Central Data
Management. It focuses on benefits of the initiatives such as Mobile ATMs, Bulk
Deposit Facility in ATMs, ATMs for Visually Challenged, other services through
ATMs and Mobile Phone as a Virtual Vale.
Johnston, Jarrod and Madura (2014) examined motives for combining bank and
other financial services. Diversification benefits and product complementarities (i.e.
mortgage and mortgage insurance, auto financing and auto insurance) seem to be the
prime motives. However, some earlier research also suggested that there are few
linkages between bank services ands underwritten services in terms of customers,
outlets, or other characteristics that generate efficiencies. Given the sources of
potential gains, it was appeared that life insurance companies with their limited
underwriting risk and wide variety of other products offered to individual customers
would be more attractive targets for banks than other types of insurance companies.

13

Kochhar (2015) founded that HDFC Bank had launched its private banking to cater
the entire banking and financial advisory needs of high net worth customers.
Announcing the launch simultaneously in 20 cities from Chennai, the executive
director of the bank Chanda Kochhar told presspersons with this launch HDFC Bank
was uniquely positioned to offer its customers the most comprehensive range of
private banking products and services. Under this the bank would offer professional
financial planning and investment advisory services to assist its private banking
customers in their investment and savings plans. For this purpose the bank had
deployed a trained team of 70 relationship managers to address the needs of high net
worth individuals, she said. Depending upon the business growth the service would be
expanded to more cities.
Corrocher (2015) examined the drivers of the adoption of the Internet banking, in
order to understand its role with respect to the traditional banking activity andto offer
a comprehensive picture of the diffusion of such a technology within the sector. In
doing so, it analyses the role of firm-specific and non firm-specific (technology,
market, environment) characteristics in influencing the decision to adopt the new
technological platforms to perform on-line banking transactions within the retail
segment of the financial sector. The main purpose of this paper is to investigate the
relationship between the Internet banking and the traditional banking activity, in order
to understand if these two systems of financial services delivery are perceived as
substitutes or complements by the banks.
Leary (2016) examined how Internet or electronic banking is slowly but surely
reviving itself after numerous attempts by various financial institutions and financial
intermediaries in the 1970 and 1980s. The standardization in technologies and the
public's familiarity with the use of personal computers and the Internet have made the
Internet bank or Internet banking site easier, cheaper and more cost effective than ever
before. This paper discusses the coming of age of Internet banking, the opportunity
for Internet banking and some of the obstacles and procedures that must be followed
in order to develop a sound Internet banking presence.
From the above literature it is concluded that

14

It is concluded that it is relevant to refer briefly to the previous studies and research in
the related areas of the subject to find out and to fill up the research gaps, if any.
Literature on financial services can generally be found; a number of books are
available on banking related aspects as merchant banking, loan syndication,
securitization, profitability and productivity etc. but, few studies are undertaken on the
role of Quality Services in the banking sector.

15

CHAPTER: 3

NEED SCOPE AND OBJECTIVE OF THE STUDY

16

NEED SCOPE AND OBJECTIVES

3.1 NEED OF THE STUDY
The brief study on review of literature revealed the fact that number of studies have
been carried out in the area of the service quality but in Indian context, still a wide
gap exist in the research field with particular stress on the same aspect. In order to fill
the research gap the need aroused to study the service quality in private sector banks.

3.2 SCOPE OF THE STUDY

The scope of the study was limited to HDFC and ICICI Bank, Rama Mandi, Jalandhar
only.

3.3 OBJECTIVE OF THE STUDY

The objective of the project is to carry out a market research for the HDFC and ICICI
Bank Ltd. to evaluate the market for service quality and to study the various
parameters.
The main objectives are discussed below.
1. To study the service quality of the banks.
2. To get a better understanding of the customers wants, needs and desires.
3. To understand the various stages that goes into the making of a loyal customer.

17

CHAPTER: 4

18

RESEARCH METHODOLOGY
Every project requires genuine research. Successes of any project any getting genuine
result from that depend upon the research method used by the researcher. Research in
common parlance refers to search for knowledge. One can also define research as
scientific and systematic search for pertinent information on a specific topic.

4.1 RESEARCH DESIGN

Research design for the current study was descriptive research. Descriptive research
which includes surveys and fact finding inquiries of different kinds. The major
purpose is description of the state of affairs as it exists at present

4.2 SAMPLING DESIGN

It refers to the technique or procedure the researcher would adopt in selecting items
for the sample. All the items under consider in any field of inquiry constitute a
universe or population.
4.2.1 Universe
The universe of the study covers the services offered by HDFC and ICICI Bank Rama
Mandi, Jalandhar city.
4.2.2 Sampling Unit
Sampling unit of the study was customers of HDFC and ICICI Bank who use their
services.
4.2.3 Sampling Size
In this study the sample size was of 50 respondents.
4.2.4 Sampling Technique
In this the sampling technique is Non- Probability Convenience sampling, where
population elements are selected for inclusion in sample based on ease of access.

4.3 DATA COLLECTION AND ANALYSIS

Secondary Data Sources
The secondary data was collected through internet, various official sites of the
companies, pamphlets, brochures of the companies. Journals & Magazine

19

Primary Data Sources

The primary data was collected through interaction with customers and questionnaires
filled from the customers who avails the banking services.
4.3.1 Tools of Presentation and Analysis
Tables, Figures and Percentages were used as the Tools of Presentation and Analysis
in the study.

4.4 LIMITATIONS OF THE STUDY

The study which is explicit in its form suffered from few limitations which were
unavoidable. A few of these are:

Due to time and financial constraint the study was limited only to interview of 50
respondents.

The study was confined to city of Jalandhar only and hence the result obtained
cannot be generalized.

The customers were chosen at liberty and according to convenience, they may not
be representative of all the customers.

In some cases, the questionnaire had to be translated into local language for the
convenience of the respondents. This might have led to some bias.

20

21

DATA ANALYSIS AND INTERPRETATION

The data has been processed and analyzed by tabulation interpretation so that findings
can be communicated and can be easily understood. The findings are presented in the
best possible way. Tables and graphs had been used for illustration of findings of the
research.
Table 5.1: Demographic Profile of Customers
Demographics

No. of Respondents

Percentage of Respondents

Age
25-35 years
35-45 years
45-55 years

10
15
10

20
30
20

Above 55 years

10

20

Total
Gender
Male
Female

50

100

30
20

60
40

Total
Occupation
Govt. Employees
Private Employees

50

100

30
15

60
30

Businessman

10

Others please specify

Total
Income (Rs.)/month
Below10,000

50

100

15

30

10,000-30,000
30,000-50,000
Above 50,000
Total

20
10
5
50

40
20
10
100

Ques.1- HDFC and ICICI Bank has modern looking equipment?

Table 5.2 Modern Looking Equipment
22

Response

No. of Respondents

Percentage

Strongly Agree

10

Disagree

25

50

Uncertain

16

32

Agree

Total

50

100

Figure 5.1 Modern Looking Equipment

Analysis and Interpretation

HDFC and ICICI bank has modern-looking and hi-tech equipments. Here analysis
show that most of the respondents disagreed with this statement. Among the total
respondents 50% disagreed, 32% were neutral and 8% agreed. After analysis I found
that majority of the respondents think that HDFC and ICICI Bank do not have
modern looking equipments or no hi-tech equipment.

23

Ques.2- The bank's physical features are visually appealing.

Table 5.3 Bank's Physical Features Are Visually Appealing
Response
Disagree
Uncertain
Agree
Total

No. of Respondents
4
29
17
50

Percentage
8
58
34
100

Figure 5.2 Bank's Physical Features Are Visually Appealing

Analysis and Interpretation

From the above chart it is clear that physical facilities are visually appealing. This
means 58% people were uncertain about this statement. Out of the total respondents
only 4% disagreed and no one strongly agreed or disagreed with the statement. 17%
people agreed that banks physical facilities are visually appealing.

24

Ques 3- Materials associated with the service (such as pamphlets or statements)

are visually appealing at the bank.
Table 5.4 Materials Associated With The Service
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
7
22
28
3
50

Percentage
14
44
36
6
100

Figure 5.3 Materials Associated With The Service

Analysis and Interpretation

Materials associated with the service are visually appealing at bank. Here 36%
respondents agreed with this statement and 6% strongly agreed with this statement.
44% were neutral that is most and 14% disagreed. There was no respondent who
strongly disagreed. Hence, in general it can be concluded that materials associated
with the services such as pamphlets or statements are visually appealing.

25

Ques.4- When the bank promises to do something by a certain time, it does so.
Table 5.5 Bank Promises To Do Something By A Certain Time
Response
Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
2
26
5
14
3
50

Percentage
4
52
10
28
6
100

Figure 5.4 Bank Promises To Do Something By A Certain Time

Analysis and Interpretation

Here analysis shows that among the total respondents 26 respondents disagreed and
14 respondents agreed with this question. Also I found that 5 people were neutral and
2 people strongly disagreed. Hence it is concluded that majority of them disagreed
that the bank when promises to do something by certain time, it does so.

Ques. 5- When you have a problem, the bank shows a sincere interest in solving
it
Table 5.6 Have a Problem, The Bank Shows A Sincere Interest In Solving It

26

Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
3
14
26
7
50

Percentage
6
28
52
14
100

Figure 5.5 Have a Problem, The Bank Shows A Sincere Interest In Solving It

Analysis and Interpretation

It was found that most of the respondents agreed i.e. 52% respondents agreed. Also I
found that 28% were neutral with this statement and 6% were committed with
disagree. There was no one who strongly disagreed. Hence HDFC and ICICI Bank
can be said to be reliable.

27

Ques.6- The bank performs the service right the first time.
Table 5.7 The Bank Performs The Service Right The First Time
Response
Strongly Disagree
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
2
8
17
17
6
50

Percentage
4
16
34
34
12
100

Figure 5.6 The Bank Performs The Service Right The First Time

Analysis and Interpretation

Total sample size was 50. Here analysis shows that among the total respondents 17
people agreed with this statement. They think that HDFC and ICICI Bank perform the
services right the first time. 6 people strongly agreed with this statement. Also 17
people were neutral and the rest of the respondents disagreed and strongly disagreed.

28

Ques. 7- Employees in the bank give you prompt service.

Table 5.8 Employees In The Bank Give You Prompt Service
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
5
16
27
2

Percentage
10
32
54
4

50

100

Figure 5.7 Employees In The Bank Give You Prompt Service

Analysis and Interpretation

Most of the respondents agreed with this statement. According to my analysis,
employees in HDFC and ICICI Bank give prompt service. Among the total
respondents agreed respondents were 27 and strongly agreed were 2. 16 people were
neutral and 5 disagreed. There was no respondent who strongly disagreed with this
statement.

29

Ques.8- Employees in the bank are always willing to help you

Table 5.9 Employees in the Bank are Always Willing to Help You
Response
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
12
29
9
50

Percentage
24
58
18
100

Figure 5.8 Employees in the Bank are Always Willing to Help You

Analysis and Interpretation

Employees in the bank are willing to help you. With this statement no one disagreed
or strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly
agreed, 29 people agreed i.e. 58% respondents agreed and 24% respondents were
neutral.

30

Ques.9- Employees in the bank are never too busy to respond to your request.
Table 5.10 Employees in the Bank are never too Busy to Respond to Your
Request
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
1
11
27
11
50

Percentage
2
22
54
22
100

Table 5.9 Employees in the Bank are never too Busy to Respond to Your Request

Analysis and Interpretation

Employees in bank are never too busy to respond to your request. After analyzing this
statement I found that most of the respondents agreed with this statement. Among the
total respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral
and 1 respondent disagreed. No one strongly disagreed.

31

Ques.10 The employees of the bank are trustworthy.

Table 5.11 Employees Of The Bank Are Trustworthy
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
4
13
28
5
50

Percentage
8
26
56
10
100

Figure 5.10 Employees Of The Bank Are Trustworthy

Analysis and Interpretation

The employees of the bank are trustworthy. According to my findings, 54%
respondents agreed that employees at bank are trustworthy. 13% respondents were
neutral and 4% respondents disagreed with this statement.

32

Ques.11- The behaviour of employees in the bank instils confidence in you.

Table 5.12 Behaviour of Employees in the Bank Instils Confidence in You
Response
Disagree
Uncertain
Strongly Agree
Agree
Total

No. of Respondents
28
5
13
5
50

Percentage
56
8
26
10
100

Figure 5.11 Behaviour of Employees in the Bank Instils Confidence in You

Analysis and Interpretation

The behaviour of employees in HDFC and ICICI bank instils confidence in you. Here
analysis shows that most of the people disagreed. Among the total respondents 28
respondents disagreed, 13 agreed and 5 strongly agreed. There was no respondent
who strongly disagreed. This means 56% respondent disagreed with this statement.

33

Ques.12- You feel safe in your transactions with the bank.

Table 5.13 You Feel Safe in Your Transactions with the Bank
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
5
16
23
6
50

Percentage
10
32
46
12
100

Table 5.12 You Feel Safe in Your Transactions with the Bank

Analysis and Interpretation

With this statement most of the respondents agreed. Among the total respondents 23
agreed with this statement and 6 strongly agreed. 32% respondents were neutral and
10% respondents disagreed. But there no one who strongly disagreed.

34

Ques.13- The bank gives you individual attention.

Table 5.14 Bank Gives You Individual Attention
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
26
12
10
2
50

Percentage
52
24
20
4
100

Figure 5.13 Bank Gives You Individual Attention

Analysis and Interpretation

HDFC and ICICI bank is not able to give individual attention to its customers as out
of the total respondents 54% disagreed with this statement. 12% of the respondents
were neutral and only 12% agreed and 2% strongly agreed. From this finding it can be
concluded that it is unable to give individual attention to its customers.

35

Ques.14- The employees of the bank understand your specific needs.

Table 5.15 Employees of the bank understand your specific needs
Response
Disagree
Uncertain
Agree
Strongly Agree
Total

No. of Respondents
5
21
20
4
50

Percentage
10
42
40
8
100

Table 5.14 Employees of the bank understand your specific needs

Analysis and Interpretation

Employees of HDFC and ICICI bank understand specific needs. With this statement
most of the respondents were neutral. Among the total respondents 20 respondents
agreed and 4 respondents strongly agreed. 5 respondents disagreed with this
statement.

36

FINDINGS OF THE STUDY

Majority of the respondents think that HDFC and ICICI Bank do not have modern
looking equipments or no hi-tech equipment.
It is clear that physical facilities are visually appealing.
Materials associated with the service are visually appealing at bank. It can be
concluded that materials associated with the services such as pamphlets or
statements are visually appealing.
Majority of them disagreed that the bank when promises to do something by
certain time, it does so.
It was found that most of the respondents agreed i.e. 52% respondents agreed.
Also I found that 28% were neutral with this statement and 6% were committed
with disagree. There was no one who strongly disagreed. Hence HDFC and ICICI
Bank can be said to be reliable.
Among the total respondents 17 people agreed with this statement. They think that
HDFC and ICICI Bank perform the services right the first time. 6 people strongly
agreed with this statement. Also 17 people were neutral and the rest of the
respondents disagreed and strongly disagreed.
Most of the respondents agreed with this statement that employees in HDFC and

ICICI Bank give prompt service.

Employees in the bank are willing to help customers.
Employees in bank are never too busy to respond to your request
The employees of the bank are trustworthy.
The behaviour of employees in HDFC and ICICI bank instils confidence in you.
HDFC and ICICI bank is not able to give individual attention to its customers as
out of the total respondents 54% disagreed with this statement. 12% of the
respondents were neutral and only 12% agreed and 2% strongly agreed. From this
finding it can be concluded that it is unable to give individual attention to its

customers.
Employees of HDFC and ICICI bank understand specific needs.

37

38

7.1 CONCLUSION OF THE STUDY

Based on the study conducted it can be concluded that responsiveness, assurance and
reliability are the critical dimensions of service quality of HDFC and ICICI bank and
they are directly related to overall service quality. The factors that may delight
customers tend to be concerned more with the intangible nature of the service,
commitment, attentiveness, friendliness, care, and courtesy.
The employees give prompt services, always are ready to answer the questions and
are trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to
date technology modern equipments, and neatly dressed up employees. The
Tangibility dimension of service quality of HDFC and ICICI bank is highly
disappointing and serious steps are needed to be taken to enhance this dimension.
Customers of the bank are dissatisfied with the empathy dimension. To satisfy these
customers,

the

management

can

take

some

attempts,

noted

earlieras

recommendations.
The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which
customers are hugely dissatisfied with the services of the banks against their
expectation. This high degree of dissatisfaction resulting from the services received
clearly questions the design of services or subsequent response of the bank
employees. These limitations are too serious to be avoided as these question the frontline people dealing with the customers and the approach of the management in taking
customers seriously.
In the days of intense competition, superior service is the only differentiator left
before the banks to attract, retain and partner with the customers. Superior service
quality enables a firm to differentiate itself from its competition, gain a sustainable
competitive advantage, and enhance efficiency. Thus, improving service quality leads
to the customer satisfaction and, ultimately, to customer loyalty.

39

7.2 RECOMMENDATIONS OF THE STUDY

After conducting the research on service quality in private sector banks, the main
recommendation of the study are as follows:
The management should understand the benefits of service quality. It include
increased customer satisfaction, improved customer retention, positive word of
mouth, reduced staff turnover, decreased operating costs, enlarged market share,
increased profitability, and improved financial performance.
An individual attention should be given to customers by the bank employees.

40

41

REFERENCES
Cystal, J. and Mary, T. (2010). Banking Marketing Strategies; Retrieved on 13-062010 from http://www.essays.se/essay/ad375225c0/

Cystal, J. and Mary, T. (2012). Customer's perception on usage of internet

banking; Retrieved on 23-06-2012 from http://www.businessperspectives.org /
journels_free/2007 /im_en_2007_04_Srivastava .pdf

Corrocher F. (2015). Relation of Banking with Financial Institutions; Retrieved

on

17-06-2011

from

http://www.eindia.net.in

/communityradio

/abstract

/Saima_Full_paper.pdf
Johnston P., Jarrod M. and Madura T. (2014). An empirical study of employee
loyalty, service quality and firm performance in the service industry. International
Journal

of

Production

Economics,

124(1),

109-120.

http://dx.doi.org/10.1016/j.ijpe.2009.10.015
Kamnath A. (2011). Modernization in Financial Services; Retrieved on 14-062011 from

http://www.highbeam.com/publications/studies-in-american-fiction-

p2366
Kamnath, T. (2011). Impact of Stock Prices on Financial and Insurance
Companies; Retrieved on 15-06-2011 from

http://www.highbeam.com

/publications /studies-in-american-fiction-p2366/
Kochhar C. (2015). Financial Planning and Investment Advisory Services;
Retrieved on 17-06-2011 from http://www.icicibank.com/investments/forexservice/product-services.html/direc_kochhar/
Mukerjee et al. (2013). Ensuring IT consulting SERVQUAL and user satisfaction:
A modified measurement tool. Information Systems Frontiers, 6 (4), 341-351.

http://dx.doi.org/10.1023/B:ISFI.0000046376.10364.16
Leary et al. (2016). The behavioral consequences of service quality. Journal of
Marketing Research, 60(2), 31-46. http://dx.doi.org/10.2307/1251929

42

43

QUESTIONNAIRE
Ques. 1- Educational Qualification
Under graduate
Graduate post
Graduate
Ques.2- HDFC and ICICI Bank has modern looking equipment?
Agree
Uncertain
Disagree
Strongly Agree
Ques.3- The bank's physical features are visually appealing.
Agree
Uncertain
Disagree
Ques 4- Materials associated with the service (such as pamphlets or statements) are
visually appealing at the bank.
Strongly Agree
Agree
Uncertain
Disagree
Ques.5- When the bank promises to do something by a certain time, it does so.
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree

44

Ques. 6- When you have a problem, the bank shows a sincere interest in solving it
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
Ques.7- The bank performs the service right the first time.
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
Ques. 8- Employees in the bank give you prompt service.
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
Ques.9- Employees in the bank are always willing to help you
Agree
Uncertain
Disagree
Ques.10- Employees in the bank are never too busy to respond to your request.
Agree
Uncertain
Disagree
Strongly Disagree

45

Ques.11 The employees of the bank are trustworthy.

Agree
Uncertain
Disagree
Strongly Disagree
Ques.12- The behaviour of employees in the bank instils confidence in you.
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
Ques.13- The bank gives you individual attention.
Strongly Agree
Agree
Uncertain
Disagree
Ques.14- The bank has operating hours convenient to all its customers.
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
Ques.15- The employees of the bank understand your specific needs.
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree

46