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

FACULTY CERTIFICATE

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

PROF. RAJNEESH FACULTY, ABS AMITY UNIVERSITY LUCKNOW CAMPUS

ACKNOWLEGEMENT

Dissertation is the most vital part of management programme, both as a link between theory and actual practices. 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. I consider my proud privilege to express deep sense of gratitude to Mr. V.P. Sahi for his admirable and valuable guidance, keen interest, encouragement and constructive suggestions during the course of the project. 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.

Ameerah Fatima Syed BBA 6th Sem

PREFACE

BBA program is one of the most reputed professional course in the field of Management. There is a dissertation project as an integral part of BBA in Sixth Semester. As a complementary to that, everyone has to submit a report. This report is thus prepared for the study done on the given topic. 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.

Ameerah Fatima Syed BBA 6th Sem

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.

CONTENTS

Acknowledgment Declaration
1. INTRODUCTION.

1.1 History of banking sector 1.2 Emerging trends in banking sector 1.3 Customer satisfaction 1.4 Rural banking 1.5 Foreign banks in India 1.6 Nationalization of banking sector 1.7 Upcoming foreign banks in India 2.LITERATURE REVIEW. . 3.NEED FOR RESEARCH.. 3.1 Need for measuring Customer satisfaction 3.2 Expectations and customer satisfaction 3.3 Factors Affecting customers towards particular Banks 4.RESEARCH METHODOLOGY. . 4.1 Objectives of research 4.2 Research design 4.3 Sources of data 4.4 Research instrument. 5. PUBLIC SECTOR BANKS AND PRIVATE SECTOR BANKS . 5.1 Public sector banks 5.2 Private sector banks 5.3 Difference between public sector banks and private sector banks 5.4 Difference between public sector banks and private sector banks in terms of Customer satisfaction.

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

Chapter 1: INTRODUCTION

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. This study reports on the different satisfaction levels of customers of private and public sector banks with respect to the services provided.

1.1

HISTORY OF THE BANKING SECTOR

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in

1895, which has survived to the present and is now one of the largest banks in India. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

1.2

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. The financial sector like other sectors is also going through major changes as a consequence of economic reforms. The consumption-led boom in India has fuelled robust demand for financial products especially in the banking domain. Emerging competition has generated new expectations from existing and new customers. There is an urgent need to introduce new and more attractive customer-friendly products and services. The banking sector presently is at an inflexion point. Existing products need to be delivered in an innovative and cost-effective manner by taking full advantage of emerging technologies. Technology has swiftly become a business driver rather than a business enabler. This sector has seen phenomenal growth in terms of technology infusion and adoption in the recent past such as: Internet and Mobile Banking, CRM, etc. With increasing competition and tightening of prudential norms by the Reserve Bank, the players in the banking industry, both Indian and global are taking turns towards mergers and acquisitions. Only banks having adequate infrastructure, technology, 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. The book is divided into two sections. Section-I extensively covers the trends, issues and challenges related to the technology i.e. ATMs, e-banking, data warehousing and data mining, CRM solutions, etc. Section-II covers other contemporary issues in the banking sector such as Basel II, financial inclusion, service quality, risk management, banc assurance, retail

banking, universal banking etc. The book shall serve as a rich reference resource for decision makers in the banking industry, researchers, academicians and students.

1.3

CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard.

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. 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. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products.

Satisfaction with banking services is an area of growing interest to researchers and managers. The commercial banking industry like many other financial service industries is facing rapidly changing market. New technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate have presented an unprecedented set of challenges. Intangible assets, particularly brands and customers, are critical to any organization and in todays competitive environment relationship marketing is critical to banking corporate success. The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges .

1.4

RURAL BANKING

Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focused upon the agro sector. The Haryana State Cooperative Apex Bank Ltd. 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, rural artisans, agricultural laborers, entrepreneurs, etc. in the state and giving service to its depositors. National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts.

1.5

FOREIGN BANKS IN INDIA

Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accusative. New policies are introduced by RBI for themThe policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely, Main competitors for banking sector. Post offices, Mutual fund, Share market, Insurance, Money lenders, Family and friends, Present scenario banking industry has been undergoing a rapid transformation, Banks today are market driven and market responsive. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discerning and less "loyal" to banks. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction. They have been managing a world of information about customers - their profiles, location, needs, requirements, cash positions, etc. Furthermore, banks have very strong in-house research and market intelligence units in order to face the future challenges of competition, especially customer retention.

1.6

NATIONALIZATION OF BANKING SECTOR

The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalized 14 banks then. These banks were mostly owned by businessmen and even managed by them. Central Bank of India, Bank of Maharashtra, Dena Bank Punjab National Bank Syndicate Bank, Canara Bank Indian Bank Indian Overseas Bank, bank of Baroda, Union Bank, Allahabad Bank United Bank of India UCO Bank.

After that Banks have introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and Net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

1.7

UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign banks in India. 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. Among them is the world's best private bank by Euro Money magazine, Switzerland's UBS. 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

Literature Review

Customer satisfaction is an important theoretical as well as practical issue for most marketers and consumer researchers . Customer satisfaction can be considered the essence of success in todays highly competitive world of business. Thus the significance of customer satisfaction and customer retention in strategy development for a market oriented and customer focused firm can not be overstated. Consequently, customer satisfaction is increasingly becoming a corporate goal as more and more companies strive for quality in their product and services. 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 ones expectations . Customer satisfaction is a major outcome of marketing activity whereby it serves as a link between the various stages of consumer buying behavior. For instance, if customers are satisfied with particular service offering after its use, then they are likely to engage in repeat purchase and try line extensions .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. This would in turn lead to an increase in the rate of switching by customers.

Work done by Parasuraman, 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. This provides the researcher with a satisfaction "gap" which is semiquantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation.

"Satisfaction" itself can refer to a number of different facts of the relationship with a customer. For example, 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

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. Customer satisfaction measurement variables will differ depending on what type of satisfaction is being researched. For example, manufacturers typically desire on-time delivery and adherence to specifications, so measures of satisfaction taken by suppliers should include these critical variables.

Chapter 3:NEED FOR RESEARCH

Importance of Research

While relationships have been extensively studied in marketing channels ,industrial settings, and some consumer setting in western cultural contexts such as Europe ,US, the UK ,and even Australia ,few studies have examined the paradigm in an eastern cultural context such as India. The maturing of services marketing, the increased recognition of potential benefits for customer and technological developments are the main factors driving the developments of relationship marketing33.the presence of these factors in the Indian banking sector motivated this research. With banks losing 8% of their clients every year 34.relationship marketing strategy to satisfy customers and improve their profitability has moved to the forefront. For centuries banks have played an important role in financial system of the country. The vital role continues even today although the form of banking has changed today with changing need of the economy and individuals. The Banking system in India has three tiers. There are scheduled commercial banks; the regional rural banks; and the cooperative banks. The scheduled commercial banks constitute those banks which are included in the second schedule of RBI Act 1934.In the organized segment; banking system occupies an important place in nations economy. 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 commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer. Its a well known fact that no business can exist without customers.

3.1 Need to Measure Customer Satisfaction:

Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. 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

customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. 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. 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.This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.

3.2 Expectations and Customer Satisfaction:

Expectations have a central role in influencing satisfaction with services, 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. This would seem sensible; for example, poor previous experience with the service or other similar services is likely to result in it being easier to pleasantly surprise customers. However, there are clearly circumstances where negative preconceptions of a service provider will lead to lower expectations, but will also make it harder to achieve high satisfaction ratings - and where positive preconceptions and high expectations make positive ratings more likely.

3.3 Factors affecting customers towards particular bank

Relationship marketing; financial performance; electronic commerce; e-commerce; online banking; electronic banking;; internet

banking; information technology; privacy; Business research; customer research; business innovation;

Chapter 4: RESEARCH METHODOLOGY

4.11 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. 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. various with

4.12 RESEARCH DESIGN:

Exploratory design This study is exploratory in nature. It provides a description of contemporary satisfaction parameter in the Indian banking sector. Exploratory research provides insights into and comprehension of an issue or situation. Exploratory research helps to determine the best research design, data collection method and selection of subjects.

4.13 SOURCES OF DATA

There are many sources of data collection, such as secondary data collection and Primary data collection. Primary data There are various ways to undertake the gathering of primary data, including conducting surveys to create market data or using other research instruments such as questionnaire. Sample size- 100 , Sample techniques- Convenience sampling

Secondary data This involves information that already exists somewhere, such as in studies already undertaken on this area as well as published books, articles in journals, articles on the internet and other sources. Relationship marketing dimensions were identified by conducting a customer satisfaction survey of five banks in India. The research process involved the following steps.

First, a literature review was undertaken to identify what parameters to consider in research. It outlines the previous research with respect to customer satisfaction in the banking industry.

Second, in-depth interview were held with customers to establish the evaluation criteria and factors which results in customer satisfaction.

Third, a questionnaire was constructed and piloted.

Last, the population and sampling procedure were established and methods of data collection and analysis determined.

Chapter 5: PUBLIC SECTOR AND PRIVATE SECTOR BANKS

5.1 PUBLIC SECTOR BANKS

Definition Nationalization is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, 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. The opposite of nationalization is privatization or de-nationalization, but may also be municipalization. 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, publicly listed corporation. The motives for nationalization are political as well as economic. It was a central theme of certain fascist, economic nationalist, 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. The goals of nationalization were to dispossess large capitalists and redirect the profits of industry to the public purse, as a precursor to the long-term goals of establishing workermanagement and reorganizing production toward use. Nationalized industries, charged with operating in the public interest, may be under strong political and social pressures to give much more attention to externalities. They may be obliged to operate some loss making activities where social benefits are clearly greater than social costs for example, rural postal and transport services. Since the nationalized industries are state owned, the government is responsible for meeting any debts incurred by these industries. The nationalized industries do not normally borrow from the domestic market other than for short-term borrowing. However, if they are profitable, the profit is often used as a means to finance other state services, such as social programs and government research which can help lower the tax burden.

Nationalization may occur with or without compensation to the former owners. If it takes place without compensation it is a case of expropriation. Nationalization is distinguished from property redistribution in that the government retains control of nationalized property. Some nationalizations take place when a government seizes property acquired illegally. For example, the French government seized the car-makers Renault because its owners had collaborated with the Nazi occupiers of France.

Introduction of Nationalization of Banks in India

After independence the Government of India (GOI) adopted planned economic development for the country. Accordingly, five year plans came into existence since 1951. This economic planning basically aimed at social ownership of the means of production. However, commercial banks were in the private sector those days. In 1950-51 there were 430 commercial banks. The Government of India had some social objectives of planning. These commercial banks failed helping the government in attaining these objectives. Thus, the government decided to nationalize 14 major commercial banks on 19th July, 1969. All commercial banks with a deposit base over Rs.50 crores were nationalized. 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, village industry, farmers, craft men, etc. The second dose of nationalization came in April 1980 when banks were nationalized.

A Closer Look

Nationalized banks dominate the banking system in India. The history of nationalized banks in India dates back to mid-20th century, 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. Then on 19th July 1960, its seven subsidiaries were also nationalized with deposits over 200 crores. These subsidiaries of SBI were State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIR), State Bank of Mysore (SBM), State Bank of Patiala (SBP),

State

Bank

of

Saurashtra

(SBS),

and

State

Bank

of

Travancore

(SBT).

However, the major nationalization of banks happened in 1969 by the then-Prime Minister Indira Gandhi. The major objective behind nationalization was to spread banking infrastructure in rural areas and make cheap finance available to Indian farmers. The nationalized 14 major commercial banks were 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 (OBC), Punjab and Sind Bank, Punjab National Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India (UBI), and Vijaya Bank.

In the year 1980, the second phase of nationalization of Indian banks took place, in which 7 more banks were nationalized with deposits over 200 crores. With this, the Government of India held a control over 91% of the banking industry in India. After the nationalization of banks there was a huge jump in the deposits and advances with the banks. The stated reason for the nationalization was to give the government more control of credit delivery. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. At present, the State Bank of India is the largest commercial bank of India and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches. After the nationalization of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1969: Nationalization of 14 major banks. 1980: Nationalization of seven banks with deposits over 200 crores.

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

Objectives behind Nationalization of Banks in India

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

Demerits, Limitations of Bank Nationalization in India

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

These are several limitations faced by the banks nationalization in India. Apart from this there are certain other limitations as well, such as weak infrastructure, poor competitiveness, etc. But after Economic Reform of 1991, the Indian banking industry has entered into the new horizons of competitiveness, efficiency and productivity. It has made Indian banks more vibrant and professional organizations, removing the bad days of bank nationalization.

5.2 PRIVATE SECTOR BANKS

The first Private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. 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.Co operative banks in India.

5.3 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. It also consist of all the private households in which people live..,whereas, public sector is an economy is owned and controlled by a government . It consist of government businesses and firms ,and goods and services provided by the government, such as the national health service, state education,jobs,roads,public parks and law and order.

5.4 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 scope of the study is confined in comparing the Public sector and private sector banks in terms of customer satisfaction. The study will be undertaken on the basis of sample survey.

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. Many public sector banks need to revive their infrastructure to have pace with the Competing environment. Many of the services needs improvement in public sector banks e.g. ATM facilities. Staff should be adequately trained to encourage face to face dealing. Staff should be friendly and approachable. Clearly defined customer policy should be adopted by the banks. Customers needs should be anticipated in advance so that they can be helped out in a better way. Honor your promises.

Strategies of banks to satisfy their customers

A main strategy of banks to satisfy their customer is CRM.

7.1 CRM in banking sector-CRM: A Competitive Tool for Indian Banking SectorIn todays competitive environment relationship marketing is critical to banking corporate success. 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. This is compelling them to improve customer service and build relationships with customers.

This study, conducted among five Indian banks, aimed at identifying customer satisfaction variables which lead to relationship building, 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. It also sought to identify whether demographics have a role to play in customer satisfaction. A questionnaire designed from a

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..

Reporting on the different satisfaction levels of the customers, the findings suggest that while private banks have been able to attract the younger customers with higher educational levels, who are comfortable with multi channel banking, the customers of the national bank are older and more satisfied with the traditional facilities. 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 .

CRM has developed into a major corporate strategy for many organizations. It is concerned with the creation, development and enhancement of individualized customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life time value.

7.2 Ten Ways to Help You Improve Your Customer Service-

1. Stay in contact with customers on a regular basis. Just as it is bad news to send out too many

emails to customers, it is just as bad to not stay in contact with them. Customers don't want to feel abandoned. So don't. Here are three things to help you stay in touch: Offer them your ezine subscription. Ask customers if they want to be updated by e-mail. Follow-up after each sale to see if they are satisfied with their purchase. Send an e-mail out a few days after their purchase, another in a week or two, and then another in a month. 2. Create a customer focus group by inviting 10 to 20 loyal customers to meet regularly. Alternatively, send out a monthly survey to this group asking for ideas and input on how to improve your customer service. Give them a reward. Pay them; give them a gift certificate, or send them free product.

3. Have a web site that is easy to navigate. Add a frequently asked question's "FAQ" page and explain anything that might confuse your customers or visitors. Follow- up with an electronic survey with questions on how to increase your site's user- friendliness.

4. Resolve customer complaints quickly and completely. Answer all e-mail and phone calls within a few hours. This will show your customers you really care about them.

5. Don't make your customers or visitors hunt for your contact information. Make it easy for them to contact you. Offer as many contact methods as possible. Hyperlink all your e-mail addresses so they don't have to find or type it. Offer a toll free number.

6. If you have strategic alliances or employees, make sure they are familiar with your customer service policy. Give your employees bonuses or incentives to practice excellent customer service. Tell employees to be flexible with each individual customer, each one has different concerns, needs and wants.

7. Give your customers more than they expect. Send thank you gifts to long time customers. 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. Give bonuses to your customers who make a big purchase or multiple purchases.

8. U-welcome, pleases, and thanks you and can never be over used. Be polite no matter what. Admit and apologize for mistakes quickly and make it up to them in BIG ways if you want them to continue being a customer.

9. Reward in points -- give customers a point for every dollar they spend. Set up a points-earned sheet. E-mail the customer an update monthly. If they send you a referral they get 10 points, if they buy something add 10 more points.

10. If your business is local, invite customers to your office for lunches, parties, barbecues, dances, seminars or other special events.

7.3 Service Quality Development

Before 1983, the definition of quality was defined primarily based on the concept of quality control with corresponding standards focused completely on achieving quality.

Juran (1974) defined quality as "suitable use". Moreover, Crosby (1979) defined quality as "consistent with needs", and assumed the existence of correspondence between quality and operational standards. Cornell (1984) considered that the service industry required a broader definition of quality than that used by the manufacturing industry; Zimmerman (1985) took the quality control concept of the manufacturing industry and applied it to service quality. Zimmerman considered the components of service quality, including: practicality, replication of manufacturing ability, immediacy, ultimate user satisfaction, and corresponding standards. Based on the concept of PZB (1985) and Zeithaml (1988), consumers see the process of service quality formation as employing both interior and exterior attributes of low-level production quality or service quality, passing through an internal united comparison, and proceeding to establish a higher level of perceived service quality.

In this paper, 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.

The paper is organized in to six sections: Section- 1: starts with a brief profile of the banking industry, especially the SBI and ICICI. Section- 2: covers Research Methodology comprising objectives, Hypothesis, research design and scope of the study including nature of data collection. Section-3: lays out the measurement of customer satisfaction with service quality and review of literature. Section-4: puts forward the core strategies to address service quality gaps. Section-5: deals with Analysis and Interpretation in line with the objective of the study. Section6: briefly summarizes the conclusion and policy implementation of the study.

7.4 Improving Customer Satisfaction

Published standards exist to help organizations develop their current levels of customer satisfaction. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organizations attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty.

7.5 The Dimensions of Service Quality: A Study of the Indian Retail Banking Environment

Regulatory, structural and technological factors are significantly changing the banking environment throughout the world. 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.

Banking has also become more competitive in respect of the location of points of sale, that is, the branch network. The end result is that market power is getting shifted from banks to their customers. With the lowering of entry barriers and blurring product lines of banks and nonbanks, the oligopolistic nature of Indian banking is fast changing and giving way to a relatively freer market place. 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, 1997).

In other words, 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. Retail banks are pursuing this strategy, in part, because of the difficulty in differentiating based on the service offering. Typically, customers perceive very little difference in the banking products offered by retail banks as any new offering is quickly matched by competitors.

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.

7.6 Marketing Strategies

Financing rapid industrial growthWith the Indian economy growing at a blistering pace on the back of strong industrial and services growth, the Indian companies are looking to build up capacity to meet future demand.Banks play a pivotal role in financing this industrial growth. Technological innovations & challengesBanks are aggressively adopting the latest technology in order to improve product offerings, customer service, and operational efficiency and risk management systems. Financial inclusion & Rural MicrofinanceIn the quest for new markets and customer segments, as well as with the RBI directives in this area, banks are looking at the rural and unbanked segments in a new light as a huge business opportunity.

Convergence to a single solution providerWith pressures on the spreads and the competition in the urban markets increasing rapidly, banks need to develop new ways to sustain profitability. Banks led to a plethora of new products, hence becoming a one stop shop for all financial solutions.

Roadmap by RBI for foreign banksThe RBI has laid out a two phased roadmap for giving greater freedom to the foreign banks in India.This has spurred the entry of several other foreign banks in India, along with acting as a signal to the domestic players to pull up their socks to face the new competitors.

Growth in retail lendingThe under banked Indian population as well as the high margin on retail products makes this a very attractive market for the banks.The all-inclusive nature of this growth in terms of sectors covers all consumer segments as well as product segments.

7.7 Measuring Customer Satisfaction

Banking operations are becoming increasingly customer dictated. The demand for banking super malls' offering one-stop integrated financial services is well on the rise. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Convergence in the industry to cater to the changing demographic expectations is now more than evident. 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. The thrust on farm sector, health sector and services offers several investment linkages. 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. With the phenomenal increase in the country's population and the increased demand for key differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge.

The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. 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

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

Chapter 8: Conclusion

CONCLUSION & SUMMARY

The Banking sector in India is undergoing major changes due to competition and the advent of technology. The customer is looking for better quality and services which can provide him/her with satisfaction. 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. This would help in enhancing the relationship between the two, and thus aid decision makers in banks to identify the major factors that determine satisfaction. Many service firms, including retail banks have been measuring customer satisfaction and quality to determine how well they are meeting customer needs. This study derives its basic findings and is also in line with empirical findings with respect to customer satisfaction by other researchers.

Looking at the demographics of the customer and satisfaction with the services,64 percent customers of IDBI ,ICICI and HDFC are in age group of 25-35 years ,are post graduates and their satisfaction is highest with multi channel banking.71 percent of the customers of SBI are above 35 years, are graduates and their satisfaction is highest with traditional facilities. These findings propose that the private banks namely ICICI, IDBI, and HDFC have been able to attract the younger customers, with higher educational levels, who are comfortable with the usage of multi channel banking. On the other hand the customer of national bank, SBI are older in age and are satisfied with the traditional facilities.SBI with the largest network of branches in India, has given competition to the private banks and has retained its older customers by satisfying them with the traditional facilities.

LIMITATIONS
There are certain limitations of this study. Sample size is small so there may be possible that the desired level of accuracy not exist. This study is conducted only in small area so there may be chance of Inaccuracy of the result. In selecting the Sample, there are chances of sampling errors.

Sometimes some respondent do not give right answers, thats why variations may be possible. This study is applicable in Lucknow only not in whole India.

REFERENCES
C R Kothari Research methodology P N Varshney Banking law and Practice Berry, Leonard L.; A. Parasuraman (1991). Marketing Services: Competing Through Quality. New York: Free Press. ISBN 9780029030790. Internet websites: www.google.com http://en.wikipedia.org/wiki/Customer_satisfaction Categories: Business terms| Consumer behavior. www.scribd.com

Chapter 9: Results

Table 9(a)-Ranking score sheet of customer perception

Demographic profile of the customers Gender 1. Male Female 64.00% 36.00%

Gender

Female 36%

Male 64%

INTERPRETATION-There are 64.00% male and 36.00% female respondent in my study.

Marital status Married Unmarried 35.00% 65.00%

Marital status

Married 35%

Unmarried 65%

INTERPRETATION- There are 35.00% married and 65.00% unmarried respondent in my study.

Monthly Family income Less than Rs. 10000/Rs10000-20000 Rs20000-30000 Rs30000-40000 More than 40000 07.00%

25.00% 26.00% 20.00% 22.00%

Monthly income

Less than Rs. 10000/7%

More than 40000 22% Rs 30000-40000 20%

Rs 10000-20000 25%

Rs 20000-30000 26%

INTERPRETATION- There are 07.00% ,25.00%,26.00%,20.00%,22.00% respondent whose

monthly family income is less than Rs10000,Rs10000-20000,Rs20000-30000,Rs3000040000,more than 40000 respectively in my study.

Age
Below 25 years 25-35 years 35-45 years 45-55 years Above 55 years

47.00% 32.00% 11.00% 04.00% 06.00%

Age
Above 55 years 6% 45-55 tears 4% 35-45 years 11% Below 25 years 47% 25-35 years 32%

INTERPRETATION- There is 47.00%, 32.00%, 11.00%,04.00%,06.00% respondent whose age

are below 25 years,25-35 years,35-45 years,45-55 years and above 55 years respectively.

Education
Secondary Higher secondary Undergraduate

Graduate Post Graduate

01.00% 12.00% 10.00% 38.00% 39.00%

Education
Higher secondary 12% Post Graduate 39%

Secondary 1%

Undergraduate 10%

Graduate 38%

INTERPRETATION- There is 01.00.00%,12.00%,10.00%,38.00% and 39.00% respondent whose education are secondary, higher secondary, Undergraduate ,Graduate, Post graduate respectively in my study.

Occupation Home maker Service Self Employed Retired Students 06.00% 39.00% 18.00% 06.00% 31.00%

Occupation

Home Maker 6%

students 31% Service 39%

Retired 6%

Self Employed 18%

INTERPRETATION- There are 06.00%, 39.00%, 18.00%, 06.00%, 31.00% respondent whose occupation is Home maker, service self employed, retired and student respectively in my study.

Banks One bank Two bank Three bank Four bank Five bank
four bank 1% three bank 8%

62.00% 28.00% 08.00% 01.00% 01.00%

Banks

five bank 1%

two bank 28% one bank 62%

INTERPRETATION- There are 62.00%, 28.00%, 8.00%, 01.00%, 01.00% respondent who availing the bank is one bank,two bank,three bank,four bank,five bank respectively in my study.

Satisfied with bank Yes No 94.00% 06.00%

Satisfied with bank

No 4%

Yes 96%

INTERPRETATION- There are 96.00%, 04.00% respondent whose satisfied with their bank or not respectively in my study.

Availing service One Service Two Service Three Service Four Service Five Service 68.00% 28.00% 04.00% 00.00% 00.00%

Three service 4%

Four service 0%

Avaling Service
Five service 0%

Two service 28% One service 68%

INTERPRETATION- There are 68.00%, 28.00%, 04.00%, 00.00%, 00.00% respondent who availing services like one service, two service, three service, four service, five service respectively in my study.

Avail telephone service Yes No 61.00% 39.00%

Availing telephone service

No 39%

Yes 61%

INTERPRETATION- There are 61.00%, 39.00%, 72.00%, 00.00%, 00.00% respondent who availing services of telephone respectively in my study.

Describe your views about Mobile Customer Service Representatives (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied), 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- There are 23.00%, 17.00%,51.00%,5.00%,4.00% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

correct operation
highly satisfied 3% Very dissatisfied 10%

very satisfied 19%

dissatisfied 21%

satisfied 47%

INTERPRETATION- There are 10.00%,21.00%,47.00%19.00%,03.00% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

understanding and replying quries correctly

highly satisfied 8% very dissatisfied 14% very satisfied 24% dissatisfied 11%

satisfied 43%

INTERPRETATION- There are 14%,11%,43%,24%,8% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

communication skills
very dissatisfied 8% highly satisfied 12%

dissatisfied 13%

very satisfied 25%

satisfied 42%

INTERPRETATION- There are 8%,13%,42%,25%,12% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

General assessment about the service

very dissatisfied highly satisfied 13% 16% very satisfied 13%

dissatisfied 9%

satisfied 49%

INTERPRETATION- There are 12%,8%,44%12%,14% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Describe your views about Branch Banking (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied), 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- There are 12%,8%,44%,22%,14% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Time taken to process the transaction

highly satisfied 5%

very dissatisfied 17% very satisfied 25% dissatisfied 19%

satisfied 34%

INTERPRETATION- There are 17%,19%,34%,25%,5% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Working hours
highly satisfied Very dissatisfied 9% 11%

very satisfied 22%

dissatisfied 18%

satisfied 40%

INTERPRETATION- There are 11%,18%,39%,22%,9% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

General assessment about the service provided by the branch

highly satisfied 9% Very dissatisfied 13%

dissatisfied 12% very satisfied 24%

satisfied 42%

INTERPRETATION- There are 13%,12%,42%,24%,9% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Describe your views about Internet Banking services (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied), 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- There are 22%,16%,49%,9%,4% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

highly satisfied 3%

Ease of use

very satisfied 24%

very dissatisfied 18% dissatisfied 19%

satisfied 36%

INTERPRETATION- There are 18%,19%,36%,24%,3% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

highly satisfied 5%

Speed of page loading

very dissatisfied 14% very satisfied 20% dissatisfied 16%

satisfied 45%

INTERPRETATION- There are 14%,16%,45%,20%,5% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Variety of transactions
very dissatisfied 10% highly satisfied 10% very satisfied 18% dissatisfied 18%

satisfied 44%

INTERPRETATION- There are 10%,18%,44%,18%,10%customers who is very Dissatisfied, dissatisfied, satisfied, 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- There are 16%,10%,40%,23%,11% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Describe your views about ATM Banking services (5: Very Dissatisfied/4: Dissatisfied/3: Satisfied/2: Very satisfied/1: Highly Satisfied), 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- There are 27%,7%,42%,17%,7% customers who is very Dissatisfied, dissatisfied, 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- There are 13%,21%,37%,20%,9% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Variety of transaction
highly satisfied 5% very dissatisfied 9%

very satisfied 25%

dissatisfied 15%

satisfied 46%

INTERPRETATION- There are 9%,15%,46%,25%,5% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

Easy of screen use

Very dissatisfied 6%

highly satisfied 16%

dissatisfied 20%

very satisfied 23% satisfied 35%

INTERPRETATION- There are 6%,20%,35%,23%,16% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

General assessment about Atm service

very dissatisfied 9%

highly satisfied 16%

dissatisfied 15%

very satisfied 19%

satisfied 41%

INTERPRETATION- There are 9%,15%,41%,19%,16% customers who is very Dissatisfied, dissatisfied, satisfied, very satisfied and highly satisfied respectively by the service of the bank.

9. 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 1.36 1.65 3.25 1.90 4.02 3.17 1.51 .94 1.36 .61 2.50 2.84 3.01 3.20 3.18 2.66 2.82 3.09 3.04 2.57 2.75 2.86 3.00 3.03 Std. Deviation .482 .479 1.250 1.133 1.035 1.386 .772 .239 .560 .490 1.030 .950 1.115 1.073 1.149 1.224 1.140 1.422 1.118 1.057 1.104 1.054 1.082 1.193

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

2.70 2.91 3.02 3.23 3.18

1.235 1.138 .985 1.127 1.149

T-Test

One-Sample Statistics N General assessment of internet General assessment of atm 100 100 Mean 3.03 3.18 Std. Deviation 1.193 1.149 Std. Error Mean .119 .115

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet 25.397 df 99 Sig. (2-tailed) .000 Mean Difference 3.030 Lower 2.79 Upper 3.27

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet general assessment of atm 25.397 27.670 df 99 99 Sig. (2-tailed) .000 .000 Mean Difference 3.030 3.180 Lower 2.79 2.95 Upper 3.27 3.41

From this table we can get that there is no significant difference between the general assessment of internet & general assessment of atm.

T-Test
One-Sample Statistics N General assessment of internet General assessment of atm Call answering time communication skills 100 100 100 100 Mean 3.03 3.18 2.50 3.20 Std. Deviation 1.193 1.149 1.030 1.073 Std. Error Mean .119 .115 .103 .107

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t general assessment of internet 25.397 df 99 Sig. (2-tailed) .000 Mean Difference 3.030 Lower 2.79 Upper

3.27

general assessment of atm call answering time communication skills

27.670 24.275 29.821

99 99 99

.000 .000 .000

3.180 2.500 3.200

2.95 2.30 2.99

3.41

2.70

3.41

From this table we can get that there is no significant diff. b/w the general assessment of internet & general assessment of atm, call answering time, communication skills.

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 3.03 3.18 2.50 3.20 2.70 2.91 Std. Deviation 1.193 1.149 1.030 1.073 1.235 1.138 Std. Error Mean .119 .115 .103 .107 .124 .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 27.670 24.275 29.821 21.862 df 99 99 99 99 99 Sig. (2-tailed) .000 .000 .000 .000 .000 Mean Difference 3.030 3.180 2.500 3.200 2.700 Lower 2.79 2.95 2.30 2.99 2.45 Upper 3.27 3.41 2.70 3.41 2.95

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 25.397 27.670 24.275 29.821 21.862 25.573 df 99 99 99 99 99 99 Sig. (2-tailed) .000 .000 .000 .000 .000 .000 Mean Difference 3.030 3.180 2.500 3.200 2.700 2.910 Lower 2.79 2.95 2.30 2.99 2.45 2.68 Upper 3.27 3.41 2.70 3.41 2.95 3.14

Paired Samples Statistics Mean Pair 1 Name of the bank Availing services 1.51 1.36 N 100 100 Std. Deviation .772 .560 Std. Error Mean .077 .056

Paired Samples Correlations N Pair 1 Name of the bank & Availing services 100 Correlation .459 Sig. .000

Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean Pair 1 Name of the bank - Availing services .150 Std. Deviation .716 Std. Error Mean .072 Lower .008 Upper

.292

Paired Samples Statistics Mean Pair 1 Name of the bank Availing services Pair 2 Education Occupation 1.51 1.36 4.02 3.17 N 100 100 100 100 Std. Deviation .772 .560 1.035 1.386 Std. Error Mean .077 .056 .103 .139

Paired Samples Correlations N Pair 1 Name of the bank & Availing services Pair 2 Education & Occupation 100 -.376 .000 100 Correlation .459 Sig. .000

Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean Pair 1 Pair 2 Name of the bank - Availing services Education - Occupation .150 .850 Std. Deviation .716 2.017 Std. Error Mean .072 .202 Lower .008 .450 Upper

.292

1.250

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 1.51 1.36 4.02 3.17 .94 1.36 3.18 3.04 N 100 100 100 100 100 100 100 100 Std. Deviation .772 .560 1.035 1.386 .239 .560 1.149 1.118 Std. Error Mean .077 .056 .103 .139 .024 .056 .115 .112

Pair 5

General assessment of internet General assessment of atm

3.03 3.18 3.18 3.03

100 100 100 100

1.193 1.149 1.149 1.193

.119 .115 .115 .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 .394 .000 100 .328 .001 100 .497 .000 100 100 -.376 .088 .000 .386 100 Correlation .459 Sig. .000

Paired Samples Test Paired Differences 95% Confidence Interval of the Difference Mean 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 .140 1.137 .114 -.086 .366 1.231 99 .221 .850 -.420 2.017 .589 .202 .059 .450 -.537 1.250 -.303 4.214 -7.129 99 99 .000 .000 .150 Std. Deviation .716 Std. Error Mean .072 Lower .008 Upper .292 t 2.095 df 99 Sig. (2-tailed) .039

Pair 5

General assessment of internet - General assessment of atm

-.150

1.359

.136

-.420

.120

-1.104

99

.272

Pair 6

General assessment of service - General assessment of internet

.150

1.290

.129

-.106

.406

1.163

99

.248

Correlations Gender Gender Pearson Correlation Sig. (2-tailed) N Marital status Pearson Correlation Sig. (2-tailed) N 100 .070 .490 100 100 1 Marital status .070 .490 100 1

Correlations

Correlations Behaviour of Gender Gender Pearson Correlation Sig. (2-tailed) Gender Marital status N 100 Pearson Correlation Pearson Correlation .070 Sig. (2-tailed) 1 Marital status .070 .490 Gender 100 1 1 100 100 .070 -.067 .490 .507 100 100 -.150 -.006 .137 .956 100 100 -.175 -.141 .082 .163 100 100 -.098 .332 100 staff -.150 .137 Marital status 100 .070 -.067 .490 .507 100 1 100 100 -.067 ** .708 .507 .000 100 100 .455
**

Time taken of transaction -.175 .082 Behaviour of staff 100 -.006 .137 .956 100 .708
**

Speed of page Page setup -.050 loading -.079

Time taken of .622 .437 transaction 100 -.141 100 -.175 -.098 .082 .332 100 100 -.006 ** .276 .956 .005 100 100 ** .708 ** .458 .000 .000 100 100 1 .471
**

-.150

Sig. (2-tailed) .490 N N 100 Marital status Pearson Correlation Behaviour of staff Pearson Correlation -.150 Sig. (2-tailed) Sig. (2-tailed) .137 N N 100 Behaviour of staff Pearson Correlation Time taken of transaction Pearson Correlation -.175 Sig. (2-tailed) Sig. (2-tailed) N N Time taken of transaction Page setup .082 100

100 1

100 -.067 .507

.163 100 .487

**

.000 100 1

100 1

.000 100 .455

**

100 .708
**

.000 100 1

Pearson Correlation

100 -.006 .487

**

Pearson Correlation Sig. (2-tailed) Sig. (2-tailed) N

-.050 .622

.956 100

.000 100

.000 100 .276

**

.000 100 .458

**

.000 100 100 .471

**

N 100 **. Correlation is significant at the 0.01 level (2-tailed). Speed of page loading Pearson Correlation Sig. (2-tailed) N -.079 .437 100

100 1

.005 100

.000 100

.000 100 100

Variables Entered/Removed Variables Model 1 Age Entered

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: Education

Model Summary Adjusted R Model 1 R .278

a

Std. Error of the Estimate

R Square .077

Square .068

.999

a. Predictors: (Constant), Age

ANOVA Model Sum of Squares Df

Mean Square

Sig.

Regression Residual Total

8.164 97.796 105.960

1 98 99

8.164 .998

8.181

.005

a. Predictors: (Constant), Age b. Dependent Variable: Education

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) Age a. Dependent Variable: Education B 3.538 .254 Std. Error .196 .089 .278 Coefficients Beta t 18.069 2.860 Sig. .000 .005

Variables Entered/Removed Variables Model 1 Entered Satisfied with bank

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: Availing services

Model Summary Adjusted R Model R R Square Square Std. Error of the Estimate

.088

.008

-.002

.561

a. Predictors: (Constant), Satisfied with bank

ANOVA Model 1 Regression Residual Total Sum of Squares .239 30.801 31.040 Df

Mean Square 1 98 99 .239 .314

F .759

Sig. .386
a

a. Predictors: (Constant), Satisfied with bank b. Dependent Variable: Availing services

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) Satisfied with bank a. Dependent Variable: Availing services B 1.167 .206 Std. Error .229 .236 .088 Coefficients Beta t 5.097 .871 Sig. .000 .386

Variables Entered/Removed Variables Model 1 Entered communication skills

a

Variables Removed Method . Enter

a. All requested variables entered.

Variables Entered/Removed Variables Model 1 Entered communication skills

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: Call answering time

Model Summary Adjusted R Model 1 R .430

a

Std. Error of the Estimate

R Square .185

Square .176

.935

a. Predictors: (Constant), communication skills

ANOVA Model 1 Regression Residual Total Sum of Squares 19.377 85.623 105.000 Df

Mean Square 1 98 99 19.377 .874

F 22.178

Sig. .000
a

a. Predictors: (Constant), communication skills b. Dependent Variable: Call answering time

Coefficients

Standardized Unstandardized Coefficients Model 1 (Constant) communication skills a. Dependent Variable: Call answering time B 1.181 .412 Std. Error .295 .088 .430 Coefficients Beta t 3.998 4.709 Sig. .000 .000

Variables Entered/Removed Variables Model 1 Entered Occupation

a

Variables Removed Method . Enter

a. All requested variables entered. b. Dependent Variable: Monthly Faimly income

Model Summary Adjusted R Model 1 R .010

a

Std. Error of the Estimate 1.257

R Square .000

Square -.010

a. Predictors: (Constant), Occupation

ANOVA Model 1 Regression Residual Total Sum of Squares .016 154.734 154.750 Df

Mean Square 1 98 99 .016 1.579

F .010

Sig. .920
a

a. Predictors: (Constant), Occupation b. Dependent Variable: Monthly Faimly income

Coefficients

Standardized Unstandardized Coefficients Model B Std. Error Coefficients Beta t Sig.

(Constant) Occupation

3.221 .009

.315 .091 .010

10.224 .101

.000 .920

a. Dependent Variable: Monthly Faimly income

Chapter 10: QUESTIONNAIRE

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

9. What are the services that you avail from your bank? ... .. .. ..

10. Do you avail telephone banking service? YES NO

Mobile/Tele Banking. 1.How would you describe your views about Customer Service Representatives? Please tick in The appropriate column. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied), 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. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied), specify the reason if not using the service. 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

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. 1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied. 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