A STUDY ON THE PERFORMANCE OF ICICI BANK

LIMITED AND CUSTOMER SATISFACTION TOWARDS

E-BANKING SERVICES IN CHENNAI METRO

Thesis submitted to the BHARATHIDASAN UNIVERSITY, TIRUCHIRAPPALLI

for the award of the degree of

DOCTOR OF PHILOSOPHY IN COMMERCE

Submitted by

M. MOHAMED SIDDIK

Reg. No: 8306/Ph.D./COMMERCE/PT/JULY 2007

ASST. PROFESSOR IN COMMERCE

S.C.P. JAIN COLLEGE

MINJUR, CHENNAI - 601203

Under the Guidance and Supervision of

Dr. M. SELVACHANDRA M.COM., M.B.A., M.PHIL., PH.D.,

(RESEARCH GUIDE)

ASSOCIATE PROFESSOR IN COMMERCE

A.D.M COLLEGE FOR WOMEN (AUTONOMOUS)

NAGAPPATINAM - 611001

BHARATHIDASAN UNIVERSITY

TIRUCHIRAPPALLI - 620024

TAMIL NADU, INDIA

JUNE - 2012

M. MOHAMED SIDDIK M.COM., M.B.A., M.PHIL.,

ASST. PROFESSOR IN COMMERCE

S.C.P. JAIN COLLEGE

MINJUR - 601203

Cell : +919942693002 E-Mail : mohsi25@gmail.com

DECLARATION I do hereby declare that the thesis, entitled “A STUDY ON THE PERFORMANCE OF

ICICI BANK LIMITED AND CUSTOMER SATISFACTION TOWARDS

E-BANKING SERVICES IN CHENNAI METRO”, is carried out by me originally under

the guidance and supervision of Dr. M. SELVACHANDRA M.COM., M.B.A., M.PHIL., PH.D.,

ASSOCIATE PROFESSOR IN COMMERCE A.D.M COLLEGE FOR WOMEN

(AUTONOMOUS) NAGAPPATINAM. I declare that this work or any part thereof has not

been submitted elsewhere for the award of any other degree, diploma or fellowship.

(M. MOHAMED SIDDIK)

Dr. M. SELVACHANDRA M.COM., M.B.A., M.PHIL., PH.D.,

ASSOCIATE PROFESSOR IN COMMERCE

A.D.M COLLEGE FOR WOMEN (AUTONOMOUS)

NAGAPPATINAM - 611001

CELL : +919842639030

E-Mail: mselvachandra@gmail.com

Date: __________

CERTIFICATE

This is to certify that the thesis entitled “A STUDY ON THE PERFORMANCE OF

ICICI BANK LIMITED AND CUSTOMER SATISFACTION

TOWARDS E-BANKING SERVICES IN CHENNAI METRO”, submitted to

the BHARATHIDASAN UNIVERSITY, TIRUCHIRAPPALLI in partial fulfilment of the

requirements for the award of the Degree of Doctor of Philosophy in Commerce is a record of original

research work done by M. MOHAMED SIDDIK ASST. PROFESSOR IN COMMERCE

S.C.P. JAIN COLLEGE MINJUR, CHENNAI, under my supervision and guidance and this

work or any part thereof has not been submitted elsewhere for any other purpose or degree.

(DR. M. SELVACHANDRA)

ACKNOWLEDGEMENT

First, I gratefully acknowledge my deep sense of gratitude to Almighty for his

spiritual guidance and blessings to complete the research work successfully.

It is my great pleasure to thank our honourable Vice Chancellor, Registrar, and

Controller of Examinations of Bharathdasan University, Tiruchirappalli for their support

provided to complete my research work successfully.

I thank Dr.A.SIVAKAMASUNDARI Principal, A.D.M College for women,

Nagapptinam, Dr.S.BABU, Principal S.C.P Jain College Minjur, Chennai,

Dr.ARUNACHALAM, Principal R.D.B College, Papanasam for their support and

encouragement.

The intellectual integrity and infinite patience of my research guide,

Dr. M. SELVACHANDRA, Associate professor in Commerce A.D.M College for women

(Autonomous) Nagappatinam, has always been the benchmark of my learning. I hope this thesis

proves of the many discussions we had conducted and the encouragement she has given me over the

years. But for her great help and cooperation, the research would not be completed successfully. I am

very much and always thankful to him for her scholarly guidance and kindness.

It is my bounden duty to express my deep sense of gratitude to Dr.A.Asick Iqbal,

Associate Professor of Commerce, Khadir Mohideen College, Adiramapattinam, Member of

the Doctoral Committee, for his valuable suggestions, support and encouragement in the

completion of my research work.

I would like to express my heartful appreciation and thanks to Mr.A.SURESH and

Mr.M.ANANTHAN, Ms.MAGESHWARI (avadi) ALPHA SYSTEMS Papanasam have

helped me in the accomplishment of my doctoral thesis.

I would like to extend my sincere and heartful thanks to my Family members,

Mr.K.MOHAMED IBRAHIM, M.MUMTHAJ BEGAM, M.MUNAR, MOHSINA

MUMTHA and THARA ABDUL KAEEM for their unconditional support and

encouragement.

I thank Mr M.SUNDARAKUMARAN and DR.MU.ARUMUGAM, Asst. Professor

,in economics ,SCP Jain college ,Chennai,

I extend my heartful thanks to all my colleagues, friends and relatives for their

unconditional support and encouragement.

M. MOHAMED SIDDIK

i

ABBREVIATION

ATM - Automated Teller Machine CDO - Collateralised Debt Obligations CRM - Customer Relationship Management DNA - Deoxyribo Nucleic Acid E-Commerce - Electronic Commerce EFT - Electronic Fund Transfer HDFC - Housing Development Finance Corporation IT - Information Technology ICDO - Indian Collateralised Debt Obligations IDBI - Industrial Development Bank of India NYSE - New York Stock Exchange RBI - Reserve Bank of India SWOT - Strength Weakness Opportunity and Threat UK - United Kingdom USA - United States of America USD - United States Dollar UTI - Unit Trust of India

CONTENTS

Chapter No.

Title Page No.

Abbreviation i

List of Tables ii

List of Figures v

1. Design and Execution of the Study 1

2. Review of Literature 21

3. Profile and performance of ICICI Bank Ltd., 55

4. Analysis of Customer Satisfaction Towards the

Services of ICICI Bank Ltd., 103

5. Summary of Findings, Suggestions and

Recommendation. 210

Bibliography i

Appendices :

Balance Sheet ix

Key Financial Ratio xi

Profit & Loss Statement xii

Interview Schedule xiv

ii

List of Tables

Table no.

Title

Page no.

3.1 Assets of ICICI Bank from 2006-07 to 2010-11 82

3.2 Projected Assets of ICICI Bank from 2010-11 to 2015-16 88

3.3 Liabilities of the Bank from 2006-07 to 2010-11 93

3.4 Projected Liabilities of the Bank from 2010-11 to 2015-16 98

4.1 Gender wise classification of Respondent 110

4.2 Age wise Distribution of Respondent 111

4.3 Education-wise classification of Respondent 113

4.4 Occupation-wise Classification of Respondent 115

4.5 Income-wise Classification of Respondent 117

4.6 Martial Status of Respondent 119

4.7 Who motivated to open the Account 120

4.8 Types of Account Maintained 121

4.9 Duration of Accounts Maintained 123

4.10 Reason for Selecting the Branch/Bank 124

4.11 Opinion about the banking Environment 126

4.12 Frequency of receiving Personalized service 127

4.13 Physical Facilities of the ICICI Bank Branch which deserved 129

iii

Appreciation of the Respondents

4.14 Frequency of Visit to Branches 131

4.15 Opinion of the respondents about the working hours of the Bank 133

4.16 Facilities provided during waiting time in the ICICI Bank ltd., 135

4.17 Opinion on the rate of interest charged 136

4.18 Opinion on various service charges of the ICICI Bank Ltd. 137

4.19 Common problem encountered in the bank 141

4.20 Opinion on the process to resolve the problem in ICICI bank Ltd. 145

4.21 Opinion about financial services of the respondents 148

4.22 Opinion about Non – financial services 152

4.23 Opinion about approach with Customer 156

4.24

Opinion about attitude of bank employees in rendering service to the customers

157

4.25

Opinion about awareness of staff members on various schemes of ICICI Bank Ltd.

158

4.26 Staff members reciprocation to the customer’s enquiry 160

4.27 Opinion about Active presence of bank staff during banking hours 162

4.28 Opinion about Timely opening and closing of branches 164

4.29 Opinion about Entries in the pass book 167

4.30 Opinion about Depository Services 169

4.31 Opinion about Cheque services 171

4.32 Opinion about Demand Draft Services 173

4.33

Perceptions of the customer on the availability of the physical infrastructure

175

4.34 Opinion about Other Services 177

v

List of Figures

Table no. Title Page no.

3.1 Assets of ICICI Bank from 2006-07 to 2010-11 83

3.2 Projected Assets of ICICI Bank from 2010-11 to 2015-16 89

3.3 Liabilities of the Bank from 2006-07 to 2010-11 94

3.4 Projected Liabilities of the Bank from 2010-11 to 2015-16 99

4.1 Gender wise classification of Respondent 110

4.2 Age wise Distribution of Respondent 111

4.3 Education-wise classification of Respondent 113

4.4 Occupation-wise Classification of Respondent 116

4.5 Income-wise Classification of Respondent 117

4.6 Martial Status of Respondent 119

4.7 Who motivated to open the Account 120

4.8 Types of Account Maintained 121

4.9 Duration of Accounts Maintained 123

4.10 Reason for Selecting the Branch/Bank 124

4.11 Opinion about the banking Environment 126

4.12 Frequency of receiving Personalized service 127

4.13Physical Facilities of the ICICI Bank Branch which deserved Appreciation of the Respondents

129

4.14 Frequency of Visit to Branches 131

4.15 Opinion of the respondents about the working hours of the Bank 133

4.16 Facilities provided during waiting time in the ICICI Bank ltd., 135

4.17 Opinion on the rate of interest charged 136

vi

4.18 Opinion on various service charges of the ICICI Bank Ltd. 138

4.19 Common problem encountered in the bank 142

4.20 Opinion on the process to resolve the problem in ICICI bank Ltd. 145

4.21 Opinion about financial services of the respondents 149

4.22 Opinion about Non – financial services 153

4.23 Opinion about approach with Customer 156

4.24

Opinion about attitude of bank employees in rendering service to the customers

157

4.25

Opinion about awareness of staff members on various schemes of ICICI Bank Ltd.

158

4.26 Staff members reciprocation to the customer’s enquiry 160

4.27 Opinion about Active presence of bank staff during banking hours 162

4.28 Opinion about Timely opening and closing of branches 164

4.29 Opinion about Entries in the pass book 167

4.30 Opinion about Depository Services 169

4.31 Opinion about Cheque services 171

4.32 Opinion about Demand Draft Services 173

4.33

Perceptions of the customer on the availability of the physical infrastructure

175

4.34 Opinion about Other Services 177

4.35 Descriptive statistics of the wealth of the respondent 179

4.36 Opinion about Frequency of the usage of ATM 181

4.37 Time taken to wait in queue for ATM transaction 182

4.38 Opinion about Time taken for process in ATM transaction 183

4.39 Opinion about the location of ATM 184

vii

4.40 Opinion about the denomination required 186

4.41 Opinion about Run out of cash in ATM 187

4.42 Opinion about Frequency of Out of Order of ATM 188

4.43

Opinion about notification displayed about the non-availability of the service

189

4.44 Opinion about Card get struck in the ATM machine 190

4.45 Opinion about Use of other bank card in the ICICI bank ATM 192

4.46

Opinion about Provision of transactions statement after every transaction

193

4.47

Opinion about Bank employees commitment to instant rectification of problem occurred in ATM

195

4.48 Opinion about Availability of cheque deposit box in the ATM 196

4.49 Opinion about the ATM operation 198

4.50 Opinion about Security for ATM 200

4.51 Expectation of customers on enhancement of ATM services 202

1

CHAPTER – I

DESIGN AND EXECUTION OF THE STUDY

Introduction

Indian banking scenario has underwent dramatic changes after the

implementation of the new economic policy which triggered out the economy in rapid

speed and as a result of that drastic changes have taken place in money transactions.

The growth in the number of banks has on the one hand increased competition and on

the other hand heightened the standards that need to be met in order to gain a

competitive advantage. In addition, the competition between banks is a premise of

customers’ ever growing expectations. Customers are now more informed and they

expect their banks to meet their needs when, how and where they want. Otherwise,

there is the risk that a bank loses the market share in favour of its competitors.

Considering these issues, one major concern of the banks is the customer retention. A

long-term relationship between a bank and its customers is a proof of the financial

institution’s efforts to offer high quality services that satisfy customers’ demands.

Moreover, the customer retention is a necessary input for improving business

performance. It is therefore necessary that the banks concentrate their efforts towards

improving the quality of their services and satisfying their customers’ needs. ‘High

service quality results in customer satisfaction; high service quality leads to

competitive advantage as customers feel satisfied and thus are more probable to

further buy the company’s services, to recommend them to others and to ignore the

competitors’ offer. It is therefore necessary to continuously measure the service

quality in order to establish those areas that need improvement.

2

Moreover, it is important to know whether customers are satisfied with the

offer and with the quality of the services in order to decide if improvements need to

be made. Nevertheless, it is important to find out which are the aspects that influence

customers’ satisfaction most. From a bank’s perspective, it is necessary to seek out

the ‘most influential determinants of customer satisfaction and to determine

customers’ perceptions regarding these determinants’ quality level. Thus, they

increase their chances to differentiate from their competitors and to retain their

customers. Services may be referred to as benefits or experiences and therefore, when

customers decide whether they are satisfied or not with a bank, they actually evaluate

their experiences with ATMs, Internet Banking etcetera, or the experiences they have

within a bank unit. Hence, we may say that service quality is an evaluation of the

bank’s delivery system and satisfaction refers to customers’ experiences with the

delivery system.

Innovative Role of Banks

Application of marketing techniques to banking business is a relatively new

development. Academically and professionally it forms a part of services marketing

and in more precise terms a division of marketing of financial services. While the role

of financial services offered by banks have grown continuously, there have been

mounting pressures on the economies of western countries for a more effective

marketing management of the financial services offered by the banks. Since the

banking sector represents the most important financial sector not only in terms of

turnover, profits and employment, but also on its paramount impact on the other

spheres of the economy, it has become inevitable to recognize marketing.

3

The financial services provided to-day is very different from what they were in

the past both for business and trade customers and in the personal financial services

field. In the personnel sector for instance the market has broadened immensely with

the introduction of new payment methods, investment methods, insurance methods

etc.; and have all changed in response to wider financial knowledge. The growth of

disposable income and cultural changes

In this background of growing markets for financial services, increasing

competition and improving the level of financial awareness and sophistication by the

end users, both personnel and corporate, the banks had to develop their marketing

skill at least to maintain their marketing share and profitability levels.

Thus it becomes apparent that, of all the challenges confronting to-days banker

none is more serious or demanding of action than the proliferation of aggressive new

competitors. Not only are there more of them, but they are generally more

strategically focused and marketing driven. They have identified specific market

segments to gain competitive advantage and are creative in positively differentiating

their product offerings and exploit the weakness of their bank competitors. The

consumer will buy the bank or service that provides the best service for him.

In that sense banks are not different from most other marketers of goods and

services to-day they face the same problems of communicating with and motivating

consumers who are better educated, financially savvy and deluged by all forms of

media, Obviously, owing to the very nature of banking it cannot be treated in exactly

the same way as that of a manufacturing firm. These are two fundamentally different

functions that bank marketing must perform It must attract deposits on one hand and

attract borrowers and users of services on the other.

4

This double-sided nature of banking business brings marketing problems that

are more complex than those that normally face commercial concerns. . Considering

the importance and role of banks in the society and the economic development of a

nation it will not be appropriate to adopt the marketing techniques in other business to

banking without modifications.

The marketing concept, as put forward by most-marketing practitioners, is a

business philosophy which says that the purpose of any business is to satisfy the

wants and needs of consumers at a profit. Successful firms have recognized that

customers are fast becoming more sophisticated and the industry's traditional product

orientation cannot respond to this change. No longer can the industry produce

whatever it is capable of producing, and offer the product unmodified to customers.

Within a regulated environment that practice may have worked well. But with the

relaxing of controls it was no longer viable. Innovative business firms found that

products and services had to be expressly designed to meet customer needs and their

line divisions have accepted marketing as a way of life.

Electronic banking and its various forms

Banking is done through electronic systems for customer’s transactions (front

office computerization) and /or internal accounting and book-keeping (back office

computerization), as against the traditional manual system. The new private sector

banks, which began operating in 1994 with front office and back office

computerization, spurred a trend towards complete-computerization and electronic

banking in public sector banks.

5

Today, most of the banks have computerized front offices in metros/cities and

their back office and information management systems are also fast getting

computerized. Recent advancements in information and communication technologies

have virtually replaced manual banking with electronic banking. Electronic banking

has enabled banks to improve their customer service quality by speeding up most of

the routine banking transactions and by providing ‘anywhere, anytime banking’. New

banking channels are opened up in the form of ATMs, Tele-Banking and Internet

Banking, although the conventional ‘brick and mortar’ banking is also available at all

branches.

Electronic Banking has also improved internal book-keeping and management

information systems of the banks. Inter-connectivity between the branches is also

done to achieve economy, centralizing the core banking operations on a common

electronic platform, enabling the banks to achieve economies of scale and to further

improvise ‘anywhere banking’. Electronic banking makes use of electronic currency.

Check cards or debit cards, smart cards or stored-value cards, digital cash and digital

checks are the different types of electronic currency. If you use a check card to make

purchases, the funds are transferred immediately from your account to the store’s

account. Smart cards have a specific amount of credit embedded in it. The chip in the

card contains both personal and financial information. Digital checks are used with

electronic bill paying services. Consumers could use personal finance software

packages or use software provided by a bank. On line banking or PC banking offers a

wider outreach for smaller institutions. Electronic banking offers consumers the

convenience of accessing and transferring funds between their accounts, paying their

bills and other purchase, twenty four hours a day, seven days a week.

6

Automated Teller Machine (ATMs) have become very popular for dispensing

cash to customers on-site and off-site, 24 hours a day, 365 days a year. However,

these have certain limitations as regards quantum of withdrawals and denomination of

notes disbursed. Further, these do not issue cheques books or drafts, like a

teller/assistant at the bank counter, does not can these respond to an un-programmed

query of a customer. These do not have a human face, nor do these show any empathy

to a customer who has run into some problem. Mobile Banking goes to the customers

for banking transactions, rather than the other way round (as in conventional

banking). Mobile banks have either computerized system or manual banking system.

In either case, it reaches the customers on designated days/hours on specified places.

It involves less capital investment, but has problems of security and safety, unlike a

conventional branch, which provides safety, security and comfort coupled with

complete banking facilities.

Tele banking provides ‘anywhere and anytime’ banking, but only to a limited

extent. It provides general information about the account to a customer, but it too does

not issue a cheques book or a draft instantly, which is possible in branch banking.

Internet banking enables customers to access and view their ledger accounts and make

limited transfer of funds from one account to another. However, Internet banking has

not yet gained momentum in India, as it requires certain infrastructure, which is not

yet possessed by most customers. There are certain issues that require to be tackled

before it gains popularity in cities and towns. Electronic Funds Transfer has made

fund-transfer from one center to another in the same country or to another country

faster and safer. Electronic Clearing System has enabled the banks abroad to handle

the clearing of cheques and interbank settlement faster and in large volumes.

7

In India the clearing system is not fully automated. This results in credit

clearance to customer’s accounts being done on the third day after the cheque is

deposited. Electronic credit/debit systems have saved the customers from the tedium

involved in receiving/making payments by cheques. The corporate and banks also

prefer to adopt this hassle-free, cheque-less system of payments and receipts, by

issuing mandates to the bankers for making periodic payments from accounts of the

specified company.

Forms of E-Banking

• Mobile Banking

• Tele Banking

• ATM

• Internet Banking

Mobile Banking

Technology has a major impact in helping banks service their customers with

the introduction of Internet banking. It helps to give the customer’s anytime access to

their banks. Customers could check out their account details, get their bank

statements, perform transactions like transferring money to other accounts and pay

their bills sitting in the comfort of their homes and offices. However the biggest

limitation of internet banking is the requirement of a PC with an internet connection.

Mobile banking address this fundamental limitation of internet banking, as it reduces

the customer requirement to just a mobile phone. The main advantage of mobile

Banking over internet banking is that it enables ‘Anywhere Banking’.

8

Customers now do not need access to a computer terminal to access their

banks, they could do so on the go – when they are waiting for their bus to the work

place, when they are traveling or when they are waiting for their orders to come

through in a restaurant.

Tele Banking

In the current fast and active pace of our society, most people have less or no

time to go through the hassles of going to the bank just to perform some simple

transactions / inquiries. As such, telebanking through the telephone is the perfect

solution for people on the go. Telebanking system is an Interactive Voice Response

(IVR) application, which uses a telephone to access information from a database. It is

an easy to use, cost effective and innovative solution designed to meet user needs for

electronic banking application. It provides communication between information in

IVRS system and off-site telephone caller I customer. This solution bridges the gap

between digital data and human modality of listening and speaking.

Telebanking eases the hassle of going to the Bank or any Automatic Teller

Machines to perform day-to-day banking transactions.

Internet Banking

The Internet banking indicates the technological development in the banking

industry. Financial institutions started "home banking" business via a touch- tone

telephone in the 1970s. Cable television was introduced in the 1970s. Cable television

was considered as a possible medium for home banking in the 1980s. This approach

solved the graphic limitations of the telephone.

9

However, it had drawback the absence of two-way communication. Later, the

PC provided both visual display and two - way communication. It has been

considered an ideal device for modern banking medium.

Internet Deployment

To carryout transactions that are internal to a bank, between the bank and its

branches and subsidiaries, intranet deployment in banking is required. Extranet

permits a bank to have full control over the users of intranet and information to be

transmitted. The integration of the internal and external communications of banking

related information through banking internet and intranet for the development of the

financial sector requires extensive working on the part of the bankers.

E-Banking in India

In banking industry, e-services are revolutionizing the way business is

conducted. Electronic based business models are replacing conventional banking

system and almost of banks are rethinking business process designs and customer

relationship management strategies. It is also known as e-banking, online banking

which provides various alternative e-channels to using banking services i.e. ATM,

credit card, debit card, internet banking, mobile banking, electronic fund transfer,

electronic clearing services etc. however, in the Indian e-banking scenario ATM is

more acknowledged than other e-channels.

10

The first bank to introduce the ATM concept in India was the Hong Kong and

Shanghai Banking Corporation (HSBC) in the year 1987 followed by Bank of India in

1988. According to the R.B.I. annual report (2010-11) almost commercial banks are

providing ATM facilities to its customers and to date there are 45,520 ATMs installed

by public sector banks and 32,480 ATMs installed by private sector banks in India.

ICICI Bank Ltd., is the first bank introduce the ATM transaction in India, therefore

this bank got the important place in the process of technological revolution

undergoing in our country moreover it is the largest private bank of the country.

Needs of the study

The philosophy of a Bank demands the satisfaction of customer’s (consumers)

needs as the prerequisite for the existence and survival of the bank. So, bank

marketing is so basic that it cannot be considered as a separate function. It is the

whole business seen from the point of view of its final result that is the customer’s

point of view. This means that the central focus of all the activities of a bank is the

customer. The marketing function in a bank is required to be integrated with customer

centric operations. In India, the customer is now becoming increasingly

sophisticated and choosy, like his counterparts in the Western World. The customer

expects to get service packages to suit his diverse needs. He also expects advice and

guidance to meet his needs from the bank. Banking is the people staff interaction. The

efficiency with the service is delivered to a customer and the customer’s satisfaction

depends on the attitude, traits, orientation and training of the staff. It also depends

upon the system and procedures followed by the bank and the level of technology

used in banking transactions.

11

The advent of Six Sigma practices, it has become imperative that banking

solutions can be adverted. This paved the way for the banking industry taking

advantage of the Technology and IT based enabled solutions to shift from historical

banking methods to e-banking solutions. The e- banking solution is more focused on

the total services of the banking industry as whole as e-banking services.

The draw backs of the historical and the Traditional Banking services like

opening an account, depositing and withdrawal of cash, and other connected

operational facilities are time consuming with lot of formalities. These can be

addressed and resolved through e - banking services. E-banking services also

enhances the customer relationship with promotes better Human Relations.

Apart from ‘Service time’ and interaction with the bank’s staff, ambience and

infrastructure facilities play an important role in the customer service quality

perception. The ‘ambience and infrastructure’ includes variables such as ‘pleasant

atmosphere in the Bank’, spacious and uncluttered layout’, ‘location of bank’,

‘parking facility’, branching network’, ‘technology used by the bank technology

updated, speedy services, and ‘accessible and visible display of information are some

of the required/ expected facilities from the customers point of views. Providing

banking services involves interaction between the customers and the bank staff.

Banking services by their very nature are human - intensive. Therefore, in spite of

introduction of modern technology, there may be situations where non- involvement

of bank staff in attending to customers in person may generate customer distrust.

The banking system plays a crucial role in the development the economy. It is

necessary to improve the efficiency and to offer better customer friendly services

through personal banking at a reasonable cost to the customers.

12

The new generation, Private Sector banks are emerging with better and

upgraded technology, ambience, innovative banking products and services coupled

with faster efficient service, have contributed to the growth. These Technology

initiatives like ATMs, Credit, Debit Cards, E-Commerce, and tele-banking services

have posed a serious challenge to the public sector banks.

It has become imperative to study the performance of the private bank in

fulfilling the requirement of the increasing customer, whether the private sector bank

could provide the service with the help of IT development, Generally the public

sector banks have been functioning in the conservative structure which might not

have adequately support the changing requirement in a smooth way in such situation

it is became essential to look into the performance of the private bank in providing

the services in more comfortable way to the consumers, how the private bank

marketing their services to the consumers.

Statement of the problem

The crux of the earlier studies has revealed that automated service quality has

been identified to have a significant importance in the financial performance of a

bank. The current study extends the previous study and investigates whether there is

any relationship between automated service quality and customer satisfaction with the

financial performance of a bank along with the satisfaction level of the customer on

the services provided by the ICICI Bank Ltd.,

13

ATM, telephone banking, internet banking, price, and core service, five

factors of automated service quality of a bank are the key components of the financial

performance of a bank. In the general literature, service quality and customer

satisfaction have often been identified as significant predictors of business

performance. Therefore, this study explores how perceived quality of automated

service and level of customer satisfaction are related to profitability of the bank.

Technology, however has had a remarkable influence on the growth of

service delivery options. There are several competitive advantages associated with the

adoption of technology in service organizations, including the creation of entry

barriers, enhancement of productivity, and increased revenue generation from new

services Service quality is one of the main factors that determines the success or

failure of electronic commerce. However, automated service quality has tended to lag

behind because practitioners have focused mainly on issues of usability and

measurement of use, with little consideration for the outcomes.

Bank’s customers come from different strata of the society. These

customers belong to different economic, cultural and social back grounds, with

heterogeneous attitudes, and expectations and influenced by the environmental

background of the customers. In a developing economy, people migrating from the

rural and semi-urban localities to the metropolitan cities in search of opportunities

cannot be ignored. They add to an overall development including service sector.

Moreover, economic liberalization has resulted in the growth of private sector

especially in the field of banking. In today’s market economy the customer is the king

and only the more focused customer oriented services will survive. The Customer

perceives a product of service from cost benefit analysis.

14

Satisfying the needs of heterogeneous customers is indeed a difficult task.

Development in the field of IT and ITES offer solution to this problem. Hence the role

of banking has expanded incredibly, banks are also have equipped immensely with

the help of IT development in unleashing the services in better way to their consumers

in such context number of studies have been carried out to find out the consumer

satisfaction of the bank customer in order to enhance the service, most of the studies

have revealed that the IT development has better impact on the service delivery but

the propose study would like to encompass all the spheres of the banking services in

assessing the service delivery and the satisfaction level of the customer, hence it is

very much imperative to explore the consumer satisfaction at multi dimensional level.

Therefore, this study aims to investigate whether significant relationship exist

among the automated service quality, the customer satisfaction and the financial

performance and the level of consumer satisfaction on the various services provided

by the ICICI bank Ltd extensively and holistically.

15

OBJECTIVES OF THE STUDY

The following are the major objectives of the study:

1 To Study the profile of ICICI Bank Ltd;

2 To analyze the performance of ICICI Bank Ltd from 2006 -11;

3 To asses the customer satisfaction towards the services provided by ICICI

Bank Ltd. and

4 To test the following hypothesis:

� Ho: There is no significant influence of determinants on customer

satisfaction of ICICI Bank Ltd. :

� Ho: There is no significance distinction between educated customers

and the less educated customers in accessing the benefits of ICICI

Bank Ltd. ; and

� Ho: There is no significant difference among the business group and

employees on the perception on the service charges levied by ICICI

Bank Ltd.

16

LIMITATIONS OF THE STUDY

1. The Study is restricted to ICICI Bank Ltd. situated in Chennai Metro

only.

2. The Study is confined to a period of five years from 2006 – 11 for

assessing the performance of ICICI Bank Ltd.

3. The survey for the study was undertaken during the period January to

March 2011.

4. This study focuses on the account holders of ICICI Bank Ltd. only.

AREA OF THE STUDY

This district is listed as the "most advanced" district in Tamil Nadu. It has a

resident population of 4,681,087 as of 2011, yielding an average density of 26,903

persons per km, excluding the huge commuter traffic from neighbouring districts.

This is against a density of 24,963 persons per km in 2001, making it the district with

the second highest density in the country. The sex ratio is 1000:951. The average

literacy rate is 80.14%, much higher than the national average of 64.5%. It is 100%

urbanised as per Census 2011. Chennai District has 13.39 per cent of the urban

population in the state of Tamil Nadu. The decadal growth of population in Chennai

District during 2001-2011 is 7.77 percent.

17

Locations of ICICI Bank Ltd. Branches in Chennai Metro

18

RESEARCH METHODOLOGY

Sources of the data

Survey method was used for the study. Both Primary and Secondary data were

used for the study. Primary data were collected from the customer respondents of

ICICI Bank Ltd., through interview schedule. Secondary data were collected from

books, journals and the Annual Report of ICICI Bank Ltd., from 2006-2011.

Sampling

Stratified random sampling method was followed for the study. Chennai

Metro was stratified into three parts namely Central Chennai, South Chennai and

North Chennai. It was learned that the number of ICICI Bank branches in the three

parts were 20, 15 and 15 respectively. Hence, 140, 105 and 105 sample respondent

were selected. In each branch 7 sample respondent were selected for the study.

In proportion to the number of ICICI Bank branches located in the Central

Chennai, South Chennai and North Chennai.

Central Chennai South Chennai North Chennai Total

No. Of. ICICI

Bank Branches

20 15 15 50

No. of Samples 140 105 105 350

19

Data collection

The study is an empirical one based on sample survey method. The study has

basically depended on primary data. The required primary data were collected by

means of an interview schedule administered to customers of ICICI Bank ltd., at

Chennai Metro. Secondary data were collected from books, magazine, journal and

Annual Reports of the ICICI bank Ltd.,

Tools for data collection

Interview schedule addressed to the customer respondents of ICICI Bank Ltd

was used to collect primary data. The interview schedule was developed mainly on

the basis of the studies of Lyman E.Ostuland ,John Croson and George Steiner and

Sandra L.Holmes. The interview schedule contained questions divided in to six

parts namely general profile, services study, ATM services, opinion survey (Financial

and Non Financial services) general operational opinion, and Customer satisfaction.

Questions were framed based on Likert five – point scale to obtain responses from

customers . A pilot study was conducted with a sample of 50 respondents to know the

feasibility of the study.

Tools for Analysis

Descriptive statistical tools such as frequency distribution, mean values,

quartile distribution and standard deviation have been used to describe the profiles of

respondents. Inferential analysis such as, ANOVA test, ‘t’ test, Multiple Regression

Test, other relevant tools ware used to the test the hypothesis. The data so collected

were tabulated analyzed and presented in this research report.

20

The interpretation of data has been used to draw inferences and findings of the

study. The hypotheses framed on the lines of the objective of the study, were tested

statistically for their significance.

Chapterization

The report of the research work is presented in five chapters as given below;

First Chapter deals with the design and execution of the study which includes the

introductory note, justification and selection of the study, statement of the research

problem, objectives, methodology and chapterisation.

Second Chapter deals with the review of literature of the related studies - the

literature review part divided into three categories namely studies pertaining to

customer satisfaction, E-banking Marketing strategies, and ATMs service delivery.

Third Chapter deals with the profile and performance of ICICI Bank Ltd.,

Fourth Chapter gives an extensive analysis of customer satisfaction of the services

of ICICI Bank Ltd., including ATM services.

Fifth Chapter brings out the summary of major findings, suggestions and conclusion

of the study.

21

CHAPTER - II

LITERATURE REVIEW

This systematic perusal of the literature on the selected domain has stemmed

in this chapter. The literature has been classified into three important categories like

literature pertaining to E-banking, studies pertaining to banking service and consumer

satisfaction and literature concerning to ATM of Banks.

E-Banking

1. Mookerji (1998) : Internet Banking is fast becoming popular in India. However, it

is still in its evolutionary stage. By the year 2005, large sophisticated and highly

competitive internet banking markets will develop. Almost all the banks operating in

India and having their websites but only a few banks provide transactional internet

banking.

2. Daniel (1999) :Customer’s value features in internet banking such as convenience,

increased choice of access to the bank, improved control over their banking activities

and finances, case of use, speed and security. From the banks prospective the main

benefits and electronic banking are cost savings, reaching new segments and the

population, efficiency, cross selling, Third –party integration, and customer

satisfaction.

22

3. Guru et al., (2000) : Examined the various electronic channels utilized by the

Malaysian banks and also assessed the consumers relations and reactions to these

delivery channels. It was found that either Internet banking was absent or it was not

successful in the local Malaysian banks due to lack and adequate legal frame work

and security purpose. However major percent of the respondents were having

internet access at home and this represented a positive indication for personal

computer based and e-banking in future.

4. Furst et al., (2000): Contributed data on the number & National banks in U.S

offering Internet banking and the product and services being offered. Only 30 percent

of National banks offered Internet banking in the Fourth quarter of 1999. However as

a groups these Internet banks accounted for almost 90 percent of National banking

systems assets, and 84 percent of small deposits banks in all size categories offering

Internet banking tend to accounts less on interest – yielding activities and core

deposits than do non internet banks, also institution with Internet banking out

performed non-Internet banks in Terms of Profitability.

5. Suganthi et, al., (2001): Conducted a review of Malaysian banking sites and

revealed that generally all banks are having a web access. Only Four banks out the ten

major banks were in the transactional sites. The rest of sites were at informal level.

There are various psychological and behavioral issues such as trust, security of

Internet Transaction, unwilling to change and preference for human interface which

appear to hinder and growth of Internet banking.

23

6. Janice et al., (2002): Based on the interviews with four banks in Hong Kong

reviewed that banks view the internet as being a supplementary distribution channel

for their products and services in addition to other forms of distribution channel such

as Automated Teller Machine (ATMs), Mobile Phone and Bank branches. Basic

transactions and Securities trading are the most popular types of operations that

customer’s carryout in internet banking.

7. Lustsik (2003): Based on the survey of experts of e-banking in Estonia banks

found that Estonia has achieved significant success in implementation of e-banking

and also on the top of the list in emerging countries. All the major banks are

developing e-business as one of the core strategies for future development.

8. Zeithmal and Bitner (2003): “Satisfaction is the consumer fulfillment response. It

is a Judgment that a product or service feature, or the product or service itself,

provides a pleasurable level of consumption related fulfillment.”

9. Hiltunen et al. (2004): Customers value features in internet banking such as

convenience increased choice of access to the bank, improved control over their

banking activities and finances, ease of use, speed and security. From the banks

prospective the main benefits of electronic banking are cost saving, reaching new

segments of the population, efficiency, cross selling, third party integration and

customer satisfaction

24

10. Chowdari Prasad (2004): Studied the performance of all private sector banks. As

per the criteria selected like efficiency, financial strength, profitability and size of

scale it is revealed that the private sector banks were in a better position to offer cost

effective, effective product and services to their customers using technology, best

utilization of human resources along with the professional management and the

corporate governance principles. -Chowdari Prasad (2004). "Private Sector Banks in

India-A SWOT ANALYSIS"

11. Sathye, Milind (2005): Sathye found that the performance of the public sector

banks was sounder as compared to the private sector banks.

12. Sanjay. J. Bhayani (2006): In his study analyzed the performance of new private

sector banks with the help of the CAMEL Model. The study covered 4 leading private

sector banks-ICICI, HDFC, UTI & IDBI for a period of 5 years from 2000-2004. It is

revealed that the aggregate performance of IDBI bank is the best among all the banks

followed by UTI. Sanjay J. Bhayani (2006). "Performance of the new Indian private

banks” -A Comparative Study.

13. Arabinda Saha (2008): States that the formal banking system can perhaps learn

something from the success of micro-credit. The steps to be taken to facilitate

increased earnings of the selected banks are more profitability, practical management,

follow-up of loans, Advisory services, customer information services, credit card

services, e-commerce technology and establishing of “Research cell” are in each of

the banks is important.

25

14. Ca. Lavanya Gupta (2009): The advent of the internet has provided great and

endless opportunities for the people all over the world and the importance of the

internet in the world of business and banking has grown astoundingly. This is why

most business today, from colossal corporations to petite family-owned enterprises,

has embraced the internet to avoid being edged out by their competitors. It is

inevitable to espouse the same and resort to the internet which opens the door to the

world.

15. Bernadette D.Silva et al., (2010): Conducted an Analysis for internet banking says

that the bank corporate to understand that there are certain Parameters in e-banking

which are affected by the demographic status like Gender, Income level and

Educational Qualification etc., for opening internet bank account. Bank operations

through internet can attract larger customer and it will enhance the brand image of

banks for usage of sophisticated technology.

16. MD. Mallya, (2010): Technology has changed the face of banking, more

particularly in the Last Five years. Banks have begun to provide virtual banking

services to customers. There is ‘anywhere banking’ through core banking systems,

‘Any time banking’ through new 24/7/365 delivery channels such as ATMs and Net

and Mobile banking facilities provided in some banks. Currently, 67% of bank

branches are on CBS mode, while around 35,000 ATMs are located off-site.

17. Manoranjan Mobapatra, et al., (2010): About Forty percent of the population in

India is un-banked. Since e-banking has evolved as a platform for future innovations

that can have long ranging socio-economic benefits for India and hence also be able to

capitalize on the Indian government’s dream of, one bank Account Per Indian;

established in the fact that e-banking is the need of the hour in India today.

26

It is a win-win situation for all concerned, operators banks and specialist companies

are gradually getting themselves organized to operate e-banking services. Banks are

able to reach remote areas without incurring the heavy expenses that opening a branch

entails and the ATM penetrating in rural areas is not that High with only forty ATM s

per million people in India.

18. KR. Kamath (2010): Banks may more towards universal banking driven by the

forces of deregulation, liberalizations, and technological advancement. The pressures

would emanate from super markets, utility service providers etc., Technology has

played and is playing a critical and arguably the most important role in redefining the

financial business. Banks are responding by offering alternative delivery channels like

ATMs, Tele banking, internet banking, mobile banking etc., Most of the banks have

already implemented core banking solution (CBS) across all offices to provide

“anytime anywhere” banking in true sense.

19. K.B.L Mathur (2010): Indian banks have shown a healthy growth rate as

improvement in performance as is evident from capital adequacy, asset quality,

earnings, efficiency indicators and new technological like E-Banking etc.,

20. Barna Maulick (2010) : Indian banks are hopeful of becoming global brands as

they are the major source of financial sector revenue and profit growth. The financial

services penetration in India continues to be healthy, thus the banking industry is also

not far behind. As a result of this, the profit for the Indian banking industry will

surely surge ahead.

27

21. Dr.Vijay M.Kumbhar (2011): This study evaluates that the major factors (i.e.

service quality, brand perception and perceived value) affecting on customers’

satisfaction in e-banking service settings. This study also evaluates influence of

service quality on brand perception, perceived value and satisfaction in e-banking.

Required data have been collected through customers’ survey. For conducting

customers’ survey likert scale based questionnaire has been developed. A result

indicates that, Perceived Value, Brand Perception, Cost Effectiveness, Easy to Use,

Convenience, Problem Handling, Security/Assurance and Responsiveness are

important factors in customers satisfaction in e-banking it explains 48.30 per cent of

variance. Contact Facilities, System Availability, Fulfillment, Efficiency and

Compensation are comparatively less important because these dimensions explain

21.70 per cent of variance in customers’ satisfaction. Security/Assurance,

Responsiveness, Easy to Use, Cost Effectiveness and Compensation are predictors of

brand perception in e-banking and Fulfillment, Efficiency, Security/Assurance,

Responsiveness, Convenience, Cost Effectiveness, Problem Handling and

Compensation are predictors of perceived value in e-banking.

22. Dr.Vijay Kumbhar (2011): This research is based on empirical evidences

collected through the customers’ survey regarding to the customers perception in

internet banking services provided by public and private sector banks. It is efforts to

examines that the relationship between the demographics and customers’ satisfaction

in internet banking, relationship between service quality and customers’ satisfaction

as well as satisfaction in internet banking service provided by the public sector banks

and private sector banks. Present research shows that the, demographics of the

customers’ are one of the most important factors which influence using internet

28

banking services. Overall results shows that the highly educated, a person who are

employees, businessmen and belongs to higher income group and younger group are

using this service, however, remaining customers are not using this services. Results

also shows that overall satisfaction of employees, businessmen and professionals are

higher in internet banking service quality. There is significant difference in the

customers’ perception in internet banking services provided by the public and private

sector banks. Private sector banks are providing better service quality of internet

banking than service provided by the public sector banks. Therefore, public sector

banks should improve their internet banking services according to the expectations of

their customers.

29

CUSTOMER SATISFACTION

1. Bearden, W.O. Teel., J.E. (1983): Used the data to examine the antecedents

and consequences of consumer satisfaction in an empirical consumer panel

based a two phase study of customer satisfaction. Their results supported

pervious findings that expectations and disconfirmation are plausible

determinants of satisfaction, and also suggested that complaint activity may be

included in satisfaction/dissatisfaction research. It highlights “A cognitive

model of the antecedents and consequences of satisfactions decisions”. The

study also concluded that there is a significant influence on customer

satisfaction.

2. Nessim Hanna and Wagle, J.S. (1989): Have provided an explanation on two

psychological theories on perceived expectation. Their work focuses on

“Effort Satisfaction Theory and Optimal Satisfaction theory”. They have

explained and provided evidence to show that effort/satisfaction is as much an

individualistic attribute as it is a universal trait of consumers. They have

studied these with the help of an experiment and have concluded that although

many personality traits have not proved to be related to marketing behavior, it

appears that optimal stimulation level may be one that they have suggested

that should be carefully studied.

3. Eugene W Anderson, Mary W Sullivan (1993): Claims that the firm’s future

profitability depends on satisfying customers in the present. If consistently

providing high satisfaction leads to higher repurchase intentions, then the

expected number of times a buyer will repurchase should rise accordingly, and

30

no satisfactory literal definition has yet been developed for consumer

satisfaction and dissatisfaction in the literature of marketing.

4. William L. Boyd, Myton Leonard and Cheries White (1994): In the paper

“Customer preferences for financial service An analysis” determined the

relative strengths of factors used in the selection process They also identified

the orientation of potential customers relative to those factors for financial

service The customers selected for the study were given a list of factor for

selecting a financial institution The weighting system was used to rank their

choices and it was concluded that many customer of financial institutions had

difficulty in determining the importance of one selection criterion over the

other.

5. Piercy, N.F. (1996): Observes that while customer satisfaction measurement is

currently one of the commonest prescriptions in both the marketing and the

management literatures, little attention has been paid to the effects of customer

satisfaction measurement, particularly in terms of the impact on the internal

market i.e. the employees and the manager inside the organization. A recent

study of the internal market effects of customer satisfaction measurement

identifies a number of ways in which the use of customer satisfaction

information may have negative effects within the organization, and may stand

in the way of the implementation of market strategies of service and quality.

This suggests a management agenda which extends far beyond the acquisition

of customer satisfaction data and reporting systems to consider the full impact

of such measurement systems.

31

6. Peter Kangis and Vassilis Voukelatos (1997): In their paper “Private and

Public banks A companion of customer expectations and perceptions”

reported the findings of a survey among customers of private and public sector

banks in Greece the study showed that service quality perceptions and

evaluation of services received were marginally higher in the private than in

the public sector in most of the dimensions measured. The dimensions were

the relative importance attached to each quality attributes. The perception of

the profile of the services received was different between the two sectors

Thus it suggested that they did deliver a different quality of service They

concluded that distinctiveness of the perceived service on offer was an

essential ingredient to competitive positioning in financial services.

7. Srinivasan, P.T. and Harish Kotadia; (1997): Have reviewed various theories

of customer satisfaction. They have stated that, “The theories are growing and

gaining more and more insight into the customer’s psyche”.

8. Sangeeta Aurora and Minakshi Maihotra (1997): In the paper entitled

“Customer Satisfaction A comparative analysis of public and private sector

banks”, analyzed the factors determining customer satisfaction They also

studied the level of satisfaction of customers and highlighted the marketing

strategies important for increasing the level of customer satisfaction The

sample of the study was selected from the cities of Amritsar, Ludhiana and

Chandigarh in India The sample consists of 100 public and 100 private sector

bank customers chosen randomly. The factor analytic technique was used to

determine factors representing satisfaction and dissatisfaction of public and

private sector bank customers The twenty variables with regard to different

32

aspects were employed for factor analysis The six factors identified for

determining satisfaction of public sector bank customers.They were routine

operations price situation, environment, technology and interactiveness In the

private sector bank customers the seven factors identified were staff, routine

operations, service, environment, interactiveness promotion and situation The

factor-wise average scores were calculated to measure the satisfaction level of

customers both in public and private banks The comparative result showed

that the public sector banks were lagging behind in all the areas The study

suggested that public sector bank has to adopt certain specific marketing

strategies to survive in the world of competition.

9. Thirumaran, R.M. (1998): Attempted to study the role of Co-operative

societies in mitigating the problem of housing in Chennai city A very brief

discussion on the Co-operative Society for housing like area of operation,

lending policy, growth in membership financial position, rate of interest

working results etc were studied The study suggested some ideas to improvise

the Co-operative societies in lending housing finance. The study has covered

the importance of housing, its components, housing shortage in urban and

rural areas, the role of Government, and the role of private and public sector in

housing He also discussed the problems of housing and housing finance in

India. The studies on housing finance covered the financial aspects like the

growth and financial performance of the housing finance companies in India.

In today’s housing finance market, due to severe competition, there is a need

for further research covering the marketing aspect of housing finance in India.

33

10. Nicholls, J.A.F. et.al, (1998): This paper develops a concise customer

satisfaction survey instrument to help organizations measure satisfaction with

their services. A seven – stage process was used to develop the instrument.

Following pilot studies, a preliminary instrument of 24 items was administered

to consumer of variety of business firms and government agencies providing

service to customers or clients. After further analysis, a revised instrument was

developed consisting of 18 statements. Additional analysis and further

purification led to an even more presise final version of the customer

satisfaction survey, employing nine statements in two factors; satisfaction with

the personal service (SatPers) and satisfaction with the service setting

(SatSett). Organizations could use the scale internally to identify their

strengths and weakness, as well as measuring their customer satisfaction.

11. Sidearm, N. (1998): Has argued that in an increasingly competitive world,

companies are finding that the recipe for success lies not in outmaneuvering

the customers and satisfying their every want.

12. “Customers familiarity and its effects on expectations, performance

perceptions and satisfaction A longitudinal study” is the title of the paper

where the authors Elisabeth Lundberg, Valerie Rzasnicki and Magnus

Soderlund (2000) examined the effects of customer familiarity on expectations

prior to the consumption of a service, performance perceptions after the

consumption and satisfaction of the customers Those who have traveled with

a particular tour operator from Sweden to Spain were selected as sample

respondents The customer familiarity was measured with regard to predictive

expectations and performance perceptions on personne’ The customer

34

satisfaction was measured with single question The correlation analysis used

in the study revealed that familiarity was associated with predictive

expectations The customer familiarity had a negative significant association

with performance perceptions as well as customer satisfaction The study

suggested that customer familiarity affected the post-purchase assessments of

the customers in terms of performance perceptions and their satisfaction.

13. Primal H. Vyas (2002): In his publication titled “Managing and measuring

consumers satisfaction” briefly conceptualized the review of consumer

satisfaction components of consumers satisfaction and dissatisfaction The

theories of consumers satisfaction process of consumers satisfaction and

dissatisfaction were highlighted He also gave suggestions about the

management of consumers satisfaction, methods of tracking and measuring

consumers satisfaction He has given valuable guidelines to use the

consumers’ satisfaction data and the effect of the price on consumers

satisfaction The study gave a brief idea about the models of consumers’

satisfaction The study finally gave some guidelines in measuring the

consumers’ satisfaction. This was evidenced by measuring the satisfaction of

consumers of housing finance, vehicle finance and in house consumer finance

in India.

The study was undertaken mainly to measure and evaluate consumers

current state of satisfaction or dissatisfaction from the conveniently drawn

sampling units The sample consists of consumers who have purchased

products like house. In home appliances and vehicles with the help of

consumer financing activities The study aimed at measuring the satisfaction

35

and dissatisfaction level of middle-income group consumers in Gujarat in

India The data was collected from 100 customers for housing finance and in-

home appliances each, and 120 for vehicle finance The hypotheses were

tested with the help of chi-square test The consumers of vehicle finance and

home appliances expected the detailed explanation about all the relevant

information But it not significant in housing finance The study also covered

the overall experience as a customer of consumer finance schemes consumers

satisfaction with the consumer finance agency product performance,

administrative facilities, and problems faced by consumers The post purchase

behavior of consumers was also studied.

14. “Satisfaction benchmarking and customer classification An application to the

branches of a banking organization” is the title of the paper in which

Grigoroudis. E, Politis. Y and Siskos. Y (2002) used the multi- criteria method

MUSA to measure and analyze customer satisfaction in different branches of a

banking organization The aim of this paper was to present a pilot customer-

satisfaction survey in the Cypriot private banking sector The customer

satisfaction survey consists of personnel image, service and access of the bank

The customer satisfaction evaluation was applied in different customer

segments in this particular application.

It has given that total banking customers did not appear homogenous

concerned to their preferences and expectations using cluster analysis The

results of the pilot survey indicated several extensions of the presented

application These extensions referred mostly to the installation of a

permanent customer-satisfaction barometer and the inclusion of competitors

36

performance in the customer satisfaction survey These results were also used

to benchmark these branches according to the provided services The

segmentation analysis was performed in order to identify the different groups

of customers The study also estimated the homogeneity of preferences in

distinct customer segments.

15. Ton Van der Wiele, Paul Boselie and Martijn Hesselink (2001): Focuses on

the analysis of empirical data on customer satisfaction and the relationship

with hard organizational performance data in the paper entitled “Empirical

evidence for the relation between customer satisfaction and business

performance?” The authors used a custome’ satisfaction database from Start

flex Company, one of major employment agencies in the Netherlands. Then it

related the customer satisfaction data gathered in 1998 with data on business

performance in 1998 and 1999. The customer satisfaction items used were the

satisfaction, complaints, overall satisfaction and the information about other

companies were collected. The measures of business performance were such

as sales volume, sales margin number of hours spent per customer and number

of placements per customer The data on customer satisfaction have been

analyzed through factor analysis in order to find the underlying concepts or

dimensions of customer satisfaction. The results showed a positive

relationship between customer satisfaction and organizational performance

indicators but the relationship was not strong.

37

16. Vidhyavadhi. K. (2002): In her paper entitled, “Role of urban housing finance

institution in Karnataka A Study of selected housing finance corporations in

Bangalore city” formulated the study in two different dimensions The first

dimension covered the evaluation of the performance of selected housing

finance corporations during 1989-99 This was evaluated in terms of various

business parameters as well as rations pertaining to profitability and efficiency

levels The second dimension attempted to measure the perception of the

borrowers about the housing loans provided by housing finance companies

The six housing finance institutions selected for the study were Housing

Development Finance Corporation Limited (HDFC). LIC Housing Finance

Corporation Limited, GIC Housing Finance Corporation Limited, Can Fin

Homes Limited, SBI Home Finance Limited and Dewan Housing Finance

Limited. The sample consists of 200 home loan borrowers through personal

interview method The annual reports and government reports were made used

for getting the financial ratios The statistical tools like chi-square test, ratios,

percentages rank correlation and averages were used for the study The study

concluded that the performance of HDFC was excellent and superior to other

housing finance companies The performance of Dewan Housing Finance Ltd

and Can Fin Homes was satisfactory But the performance of SBI was very

poor in terms of business parameters as well as profitability and efficiency

standards The second dimension concluded that the home loan borrowers

were influenced by the rate of interest speed of service, liquidity location,

advertisement, courtesy etc.

38

17. Vaishali DKK and Kumar, M.P. (2003): Studied five essential steps for

organizational transformation the first being leaders commitment, wherein,

change or cultural transformation begins with the personal transformation of

the leader. The next step was to scan the then culture, which would enable a

bank to analyze and evaluate the gap between the then and desired culture.

After this the employee personalities need to be profiled: therefore, the next

step proposed was personality profiling of the work force. It was then possible

to make the hiring decisions based on the quantitative assessment of the

compatibility between the candidate’s personality, values and behavior with

both the then and desired culture within the organization.

18. Sharma, R.D. and Gurjeet Kaur (2004 – 2005): Studied the nature and extent

of customer satisfaction in regional rural banks through customer opinion and

works out a strategic action plan. One regional rural bank from northern India,

viz., Shivali Kshetriya Gramin Bank, Hoshiarpur (Punjab) was selected to

work out the level of customer satisfaction in this bank measured with regard

to six Ps of bank marketing mix on 5-point Likert scale. Most commonly used

statistical tools viz., mean, factor analysis, multiple regression, multiple

correlation, coefficient of determination, were employed for analyzing the data

collected. Split – half reliability and convergent validity have also been

studied.

19. Parimal Vyas (2004): The empirical study based on descriptive research

design to measure customers’ satisfaction considering the prevalent state of IT

adoption among selected branches of sectoral banks. World over, the banking

sectors do face stiff competition not only among themselves, but also from a

39

host of other financial institutions. IT strategies therefore, need to be in proper

consonance with banks marketing strategies. Customers are now demanding,

individualistic and no longer willing to accept delay in transactions. A

customer centric view has replaced the earlier product centric view. IT is the

greatest equalizer. To the banks, it means changing the age-old style of

functioning and adopting innovative methods to serve their customers and

clients with utmost professionalism. The new age IT is bringing about

sweeping changes in the banking industry, forcing them to re-engineer many

of their basic processes and systems few of the technology driven electronic

banking services being offered are viz., ATM, ECS, EFT, Tele-banking,

Internet banking etc. the various sectoral banks are found as passing through

varying stages of IT adoption partly due to their different legacies and

strategic approaches towards computerization and technology adoption.

20. Chowdhary, (2004): This study is exploratory in nature, which was undertaken

to identify the constituent factors of service quality in banking industry. The

investigation is also focused at understanding the perceptual gaps amongst

stakeholders about service quality while comparing the employees and

customers of private and public sector banks respectively. Further he added

that bank’s customers’ service is followed by their demands for customization

and responses are to be shifted to their requirements by the frontline

personnel. Any service to be provided to the customer can be differentiated by

the service provider from the rest of the service providers, if it possesses some

unique selling proposition. In the banking services, the competition is

increasing every year with the dominance and popularity of foreign and

40

private banks. The present study is an attempt to identify the constituent

factors of service quality in private and public sector banks, in terms of the

perception of employees and customers separately. The inquiry will also

reveal gaps in the perceptions of employees and customers about the service

quality of private and public sector banks.

The multi-sampling approach was followed to collect data for the

study. In the first stage, a purposive sample of 40 judges was selected to

facilitate item selection for the measure developed for the measure developed

for the study. In the second stage, a sample of 30 respondents each was

selected on stratified random sampling basis to represent employees of private

and public sector banks respectively. Similarly, a sample of 45 respondents

each was selected on stratified random basis to represent the customers of

private and public sector banks respectively. Therefore, the study had a total

sample of 150 respondents in the second stage. The extraneous variables of

age, gender, education, marital status, occupation and area were controlled by

randomization and elimination.

21. Heryanto (2011): Discusses about the research are to know an influence of

service quality to customer satisfaction on Main Branch of Bank Nagari,

Padang. The population size amount 155.264 saving customer. The sample

size amount 100 saving customers. Collecting data through questionnaire with

using the accidental technique of random sampling. Data analysis techniques

have been used consisted of simple regression. The study shows that there was

an influence of service quality to customer satisfaction significantly. Service

quality are very important consisted easily in opening account, quick and on

41

the right time, to give the right service, commitment, staff available, polite,

campentency and capability, complaint solusion, customer attention, complete

facility, and staff performance. Meanwhile service quality are important

factors consisted of accurate, relax in taking compliance, customer need and

modern facility.

22. Uma Rani T.S (2011): States that change is the only constant factor in this

dynamic world and banking is not an exception. The changes staring in the

face of bankers relates to the fundamental way of banking-which is

undergoing rapid transformation in the world of today, in response to the

forces of completion productivity and efficiency of operations, reduced

operating margins better asset/liability management, risk management, any

time and any where banking. The major challenge faced by banks today is to

protect the falling margins due to the impact of competition. Another

significant impact of banks today is the technology issue. In this study

examines the business banking products of HDFC bank, that best suits the

needs of the borrower were analysed. The Customer feels that loans to be

obtained require a process that is highly complicating and time consuming.

This calls for an ombudsman setup separately for the domain. The observation

and findings of the study have developed to give useful recommendation to the

bank. The implementation of the suggestion can help to improve strategies and

build competencies over that of their competitors. This study has there by

helped me by giving exposure into new concepts in today’s banking scenario

as the interface shifts from service to products. There has also been some

insight into competency recognition.

42

23. Andrew Musiime and Malinga Ramadhan (2011): This study Despites that the

importance of Internet banking in many financial institutions, fewer studies

have focused on consumer adoption and customer satisfaction especially in the

African setting. With technology implementation, a new phenomenon in

Uganda’s banking sector and many customers have not yet embraced it, this

study is conducted to determine the factors that influence consumer adoption

of Internet banking service as well as examine the relationship between

Internet banking service, customer adoption and customer satisfaction. The

major instrument for the data collection was a questionnaire that is designed

on a 5-point Likert scale has been used to collect good quantitative data. The

study establishes that there is a significantly positive relationship between

Internet banking and customer satisfaction which is consistent with the

findings of Al-hawari and Ward (2005). The study recommended that more

emphasis and efforts be laid on targeting individual clients. In addition,

Internet banking service providers ought to look out for indicators of some

innovative ways of creating awareness about the service through participation

in trade organizations, exhibitions as well as adoption of new technologies of

Internet banking.

43

ATM

ATMs and consumer satisfaction have been analyzed in the literature, ever

since the introduction of the ATM technology. The earliest studies concentrate on

explaining the adoption of this new technology.

1. Mandell (1977): Discusses ATM adoption in the USA. The first ATM was

installed in the USA in 1969 and, according to Mandell, only 10% of all

national banks had adopted even one ATM after eight years. Mandell states

that a bank’s adoption of innovation depends, for example on its size,

branching status and competitive position. According to Mandell, in those

days adoption of new technology was related more closely to competition than

to cost savings.

2. Hannan and McDowell (1987): Examines how firms react to the rivals’

precedence in technology adoption process. The authors use data on the

adoption of ATMs by a large sample of US banking firms in 1971–

1979.According to the study, rivals’ adoption of ATMs increases the

conditional probability that the other firms will also adopt ATMs. Further they

stated that market concentration has positive effects on the adoption of ATMs.

3. Salop (1990): Discusses the pricing decisions of shared ATM networks. He

states that ATM networks should eliminate their pricing rules for interchange

fees and that there should be price competition between ATM owners in order

to increase the efficiency.

44

4. McAndrews and Kauffman (1993): Discusses network externalities and shared

ATM networks. According to this study, the number of bank’s own branches

is not related to early ATM adoption but the number of other banks’ branches

is. The author further clarified that ATM diffusion studies in their article on

empirical studies of financial innovation. They discuss initial adoption, or

diffusion, of ATM technology. However, the demand for ATMs after the first

phase of adoption has not been discussed very widely.

5. Matutes and Padilla (1994): Investigates shared ATM networks, banking

competition and fees. The authors use a three-bank model to study the manner

in which banks make their ATM networks compatible. They conclude that in

equilibrium either a subset of banks will share ATM networks or there will be

total incompatibility. This is a somewhat surprising result, since many national

ATM networks seem to be compatible (e.g. ECB 2001). According to Matutes

and Padilla, fully compatible networks are found in countries where the

banking system is highly collusive, dominated by public banks, or competing

in different geographical markets. Furthermore, Matutes and Padilla state that

network fees enhance the likelihood of compatibility.

6. Humphrey (1994): Studies possible cost savings and concludes that ATMs

have not reduced banks’ costs. This may be the case because consumers use

ATM services more intensively than services provided in bank branches...

They analyze cost savings from ATMs and electronic payments in 12

European countries in 1987–1999.According to the results, the ratio of

operating costs of providing banking services to total assets has decreased

considerably because of electronic payments and use of ATMs.

45

7. Saloner and Shepard (1995): Study empirically the adoption of ATMs in the

USA in 1972–1979. According to their results, ATM adoption delays are

reduced as network effects increase. The authors use the number of branches

as a proxy for network effects because, in the 1970s, most ATMs were located

in bank branches. However, today such a proxy would not be appropriate

because many ATMs are located outside of banking premises. Furthermore,

the author’s state that ATMs are adopted the sooner, the greater the production

scale economies.

8. Carlton and Frankel (1995): Discusses the merger of two ATM networks in

Chicago. These two networks, Cash Station and Money Network, were

competitors until 1987. After the merger decision and a transition period, all

ATM terminals of the new-combined network were available to all customers

in early 1988. Carlton and Frankel state, on the basis of the statistics, that the

growth in the number of ATMs in the new network has been faster than the

average growth in the number of ATMs in the USA. Furthermore, the volume

of transactions increased even though the interchange fee of the new network

was increased in 1991. Based on these arguments, the authors state that the

merger of these two ATM networks benefited consumers.

9. Horvitz (1996): Discusses the effects of ATM surcharges on competition and

efficiency. According to Horvitz, the Department of Justice and the Federal

Reserve failed to prevent the consolidation of ATM networks in the USA in

the 1980s. He presumes that high surcharges charged by large banks will

encourage small banks to provide ATM networks at lower costs or even

46

without surcharges, which may restore competition in the ATM network

market. Cost savings from ATMs and electronic payments have also been

discussed.

10. McAndrews and Rob (1996): Compare theoretically competition between two

solely owned switches (ATM networks) and between one solely owned and

one jointly owned switch. The authors study these two duopolies and

differences in supplied quantities and profits, assuming the existence of

network externalities in the ATM market. According to their results, the

equilibrium profits of banks in the solely owned network are the same in both

duopoly cases. On the other hand, the equilibrium profits of banks in the

jointly owned network are higher than the equilibrium profits of banks in the

solely owned network in the case of one solely owned and one jointly owned

network. In addition to the equilibrium profits from supplying ATM services

to customers, banks in the jointly owned network receive part of the profits of

the jointly owned network. Furthermore, the authors state that the network

jointly owned by all banks produces the monopoly output, and consumers pay

the monopoly price. They also discuss welfare implications and conclude that,

because of network externalities and economies of scale, the monopoly may

be a better structure in the end.

11. Hancock et. al. (1999): Discusses the consolidation of Fed wire and find that

consolidation reduced costs. They investigate the gains from electronic

payments with Norwegian data and conclude that electronic payments lead to

social benefits.

47

12. Hester et. al. (1999): Study decisions on ATMs in Italian banks. According to

their results, the number of ATMs is positively related to the bank’s number of

branches and deposit accounts. There are studies on ATM pricing and fees.

13. Prager (2001): Analyses the effects of ATM surcharges on small banks,

comparing states that allowed surcharging prior to 1995 and those that did not.

Contrary to the results finds that ATM surcharges do not affect banks’

profitability. The author further analyzes fees and surcharging in ATM

networks. They develop a theoretical model and conclude that surcharging

raises the customer’s price above the joint profit-maximizing level for a shared

network. Joint profits of the shared network are maximized by setting the

interchange fee at marginal cost and not surcharging. Furthermore, large banks

prefer lower interchange fees than do small banks.

14. Massoud and Bernhardt (2002): Investigates theoretically the pricing of ATM

services. According to their results, in equilibrium, banks charge nonmember

users high ATM fees but do not charge their own customers for ATM usage.

Own customers have to pay high bank account fees, and larger banks charge

higher bank account fees and higher surcharges than smaller banks. The

authors state that forcing banks to charge both members and non-members the

same ATM fees leads to higher ATM prices and bank profits, and possibly to

less consumer welfare.

48

15. Massoud et al (2003): Analyzes empirically the ATM surcharges and

customer relationships. They find that changes in the ATM surcharges have a

direct effect on the bank’s profitability and an indirect effect via customer

switching to use of other services provided by the bank.

16. Hannan et. al. (2003): Analyzes the pricing of ATM usage and surcharge

levels in the USA. This empirical paper studies depository institutions’

decisions on whether to have surcharges on no depositors using their ATMs.

The authors conclude that the probability of surcharging is positively related

to the institution’s share of ATMs and negatively related to local ATM

density.

17. Humphrey et. al. (2003) and Humphrey and Vale (2004): States that the shift

to electronic-based Payments leads to remarkable cost savings. In addition,

they discuss cost savings from bank mergers. They use Norwegian banking

sector data and state that bank mergers in Norway have on average reduced

costs.

18. Raa and Shestalova (2004): Analyzes the payment media costs with Dutch

data and find that currency is cost-effective for small payments. Furthermore,

their results suggest that debit cards or money are likely to replace cash usage

for larger legal transactions.

19. Christopher R. Knittel and Victor Stango_ (2005): Examined the effects of

incompatibility using data from a classic market with indirect network effects:

Automated Teller Machines (ATMs). Our sample covers a period during

which higher ATM fees increased incompatibility between ATM cards (which

are bundled with deposit accounts) and other bank’s ATM machines. A series

49

of hedonic regressions suggests that incompatibility strengthens the

relationship between deposit account pricing and own ATMs, and weakens the

relationship between deposit account pricing and competitor’s ATMs. The

exact effects of incompatibility stronger in areas with high population density,

suggesting that high travel costs increase both the strength of network effects

and the importance of incompatibility in ATM markets.

20. Tobias Wenzely (2007): Studied ATM coalitions in retail banking. The author

inquired when it is portable for banks to make agreements which ban direct

ATM transaction fees. In the case of a coalition banks loose income from

ATM transactions but relax competition in the banking market. He found that

such agreements are portable when the interchange fee is sufficiently high.

When banks can collude on the interchange they always form a coalition.

Coalitions may harm consumers but lead to higher total welfare. Moreover, he

found that smaller banks have larger incentives to form ATM coalitions.

Investment in the ATM networks is typically higher with a coalition.

21. Gautam Gowrisankaran and John Krainer (2007): Estimated a structural

model of the market for automatic teller machines (ATMs) in order to evaluate

the implications of regulating ATM surcharges on ATM entry and consumer

and producer surplus. They estimate the model using data on firm and

consumer locations, and identify the parameters of the model by exploiting a

source of local quasi-experimental variation, that the state of Iowa banned

ATM surcharges during our sample period while the state of Minnesota did

not. They develop new econometric methods that allow us to estimate the

parameters of equilibrium models without computing equilibrium. Monte

50

Carlo evidence shows that the estimator performs well. The author found that

a ban on the ATM surcharges reduced ATM entry by about 12 percent,

increases consumer welfare by about 35 percent and lowers producer profits

by about 20 percent. Total welfare remains about the same under regimes that

permit or prohibit ATM surcharges and is about 17 percent lower than the

surplus maximizing level. This paper can help shed light on the theoretically

ambiguous implications of free entry on consumer and producer welfare for

differentiated products industries in general and ATMs in particular

22. Timothy H.Hananan (2007): Examined empirically the relationship between

incompatibility among networks and the extent to which firms invest in

improving their products. Focusing on ATM networks in the banking industry,

the measure of product quality in this case is the number of ATM locations

that banks offer to potential users, and the measure of incompatibility is the

charge incurred by depositors to use the ATMs of another bank. The so-called

surcharge, levied by the owner of the ATM in such transactions, is particularly

advantageous for such an analysis, since differences in state regulation allow

such an analysis to be more easily implemented. In most markets, issues of

compatibility and standards are determined by competitive outcomes or by

coordination within standard-setting bodies or other mechanisms. In the case

of ATM surcharging, the ability to introduce incompatibilities between banks’

products is an issue of public policy. In this instance, the results reinforce the

notion that the policy must consider not only the direct effects of

incompatibility on consumers, but also the induced effect on investment, or

more generally on product quality and innovation

51

23. Donze, Jocelyn and Dubec, Isabelle (2008): Compared the effects of the three

most common ATM pricing regimes on consumers’ welfare and banks’

profits. They consider cases where the ATM usage is free, where customers

pay a foreign fee to their bank and where they pay a foreign fee and a

surcharge. Paradoxically, when banks set an additional fee profits are

decreased. Besides, consumers’ welfare is higher when ATM usage is not free.

Surcharges enhance ATM deployment so that consumers prefer paying

surcharges when reaching cash is Costly. Our results also shed light on the

Australian reform that consists in removing the interchange fee. The model

also predicts that direct charging induces an intense competition to attract both

depositors and withdrawals. This leads banks to deploy a large number of

ATMs and their profits are adversely affected.

24. Stijn Ferrari (2009): Empirically examined the effects of discriminatory fees

on ATM investment and welfare, and considers the role of coordination in

ATM investment between banks. The main findings are that foreign fees tend

to reduce ATM availability and (consumer) welfare, whereas surcharges

positively affect ATM availability and the different welfare components when

the consumers’ price elasticity is not too large. Second, an organization of the

ATM market that contains some degree of coordination between the banks

may be desirable from a welfare perspective. Finally, ATM availability is

always higher when a social planner decides on discriminatory fees and ATM

investment to maximize total welfare. This implies that there is

underinvestment in ATMs, even in the presence of discriminatory fees.

52

25. V. Dheenadhayalan (2010): The ATM is one of the earliest electronic banking

products introduced in the mid 1970s. ATM is the most convenient way to

withdraw cash. The total number of ATMs installed by the banks was 43,651

at the end of March 2009 as compared with 34,789 at the end of March 2008,

27088 at end of March 2007 at end March 2006 respectively. The ATM to

Branch ratio was much lower for public sector 35.4 percent (32.9 percent in

2007) and old private sector banks 47.2 percent (34.9 percent in 2007). On the

whole ATMs to number of Branches was 47.5% at the end of March 2008, and

67% at the end of 2009.

26. Vijay M. Kumar (2011): Has provided a preliminary comparative

investigation of the customer satisfaction in ATM service of public and private

sector banks in India. For this investigation primary data was collected from

150 respondents of public and private sector banks through a structured

questionnaire. Collected data was analyzed according to the objectives of the

present research and result of the statistical analysis indicates that private

sector banks are providing more satisfactory ATM service as compared to

public sector banks. Empirical evidences indicates that customers perception

about Efficiency, Security and Responsiveness, Cost Effectiveness, Problem

Handling and Compensation and Contact service related to ATM service is

low in both public and privates sector banks (ranging between 3.00 to 3.50).

Therefore both types of banks should be aware of these aspects of ATM

service to enhance customers’ satisfaction.

53

The summary of the earlier ATM studies would deals the plethora of the

issues, recent discussion on ATMs has concentrated on the pricing structure and fees

for ATM services. Network externalities of ATMs, as well as cost savings, have also

been studied. The discussion has included technology adoption and used ATMs as an

example of diffusion. The ATM discussion indicates that outcome of the of the ATM

network market structure has not been widely analyzed. Furthermore, this section

briefly discusses the development of the theory of money demand, focusing on the

transactions demand for money. The reason for this focus is that ATMs may have

some influence on money demand, and one purpose of our study is to contribute to

this discussion. The effects of consumer satisfaction that are analyzed in the

industrial organization literature are also briefly discussed here, since we study the

effects of ATM network on the consumer satisfaction with in the realm of availability

of ATM services and cash in circulation. We also discuss compatibility and entry into

markets with network externalities because these may be important in ATM networks.

In addition, some papers on pricing and costs of payment instruments and

payment systems are presented, as pricing and fee structures have recently been

discussed widely in the payment systems literature.

Gap Analysis

Systematic perusal of the literature pertains to customer satisfaction, E-

banking and ATM service delivery consolidated the thematic assessment of the study.

The general inferences of the literature unleash the various components of banking

system, operation and its consequences on customer satisfaction. Next chapter would

deal the evolution, various forms and marketing strategies of banking system.

54

CHAPTER - III

PROFILE AND PERFORMANCE OF ICICI BANK LTD.

ICICI Bank is India's second-largest bank with total assets of Rs. 4062.33

billion (US$ 76 billion) at March 31, 2011 and profit after tax Rs.22.42 billion for the

year ended March 31, 2011. The Bank has a network of about 2758 branches and

7808 ATMs in India and in Chennai 50 bank branches and 158 ATMs, and it has a

presence in 19 countries. ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers through a variety of delivery

channels and through its specialized subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital and asset

management. The Bank currently has, subsidiaries in the United Kingdom, Russia and

Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar

and Dubai International Finance Centre and representative offices in United Arab

Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our

UK subsidiary has established branches in Belgium and Germany. ICICI Bank has

over 15 million customers accounts. ICICI Bank's equity shares are listed in India on

Bombay Stock Exchange and the National Stock Exchange of India Limited and its

American Depositary Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE).

55

HISTORY

lClCI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly-owned subsidiary. lCICl's shareholding in

ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal

1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,

ICICT Bank's acquisition 01~Bank of Madura Limited in an all-stock amalgamation

in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal

2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank,

the Government of India and the representatives of Indian industry. The principal

objective was to create a development financial institution for providing medium-term

and long-term project financing to Indian businesses. In the 1990s, ICICI transformed

its business from a development financial institution offering only project finance to a

diversified financial services group offering a wide variety of products and services,

both directly and through a number of subsidiaries and affiliates like the ICICI Bank.

In 1999, IClCl became the first Indian company and the first bank or financial

institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context

of the emerging competitive scenario in the Indian banking industry, and the move

towards universal banking, the managements of ICICI and ICICI Bank formed the

view that the merger of ICICI with ICICI Bank would be the optimal strategic

alternative for both entities, and would create the optimal legal structure for the ICICI

group's universal banking strategy.

56

The merger would enhance value for ICICI shareholders through the merged

entity's access to low-cost deposits, greater opportunities for earning fee-based

income and the ability to participate in the payments system and provide transaction-

banking services.

The merger would enhance value for ICICI Bank shareholders through a large

capital base and scale of operations, seamless access to ICICl's strong corporate

relationships built up over five decades, entry into new business segments, higher

market share in various business segments, particularly fee-based services, and access

to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of

Directors of the ICICI and the ICICI Bank approved the merger of the ICICI and two

of its wholly-owned retail finance subsidiaries, lCICI Personal Financial Services

Limited and ICICI Capital Services Limited, with the ICICI Bank. The merger was

approved by shareholders of the ICICI and the ICICI Bank in January 2002, by the

High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of

Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the

merger, the ICICI group's financing and banking operations, both wholesale and

retail, have been integrated in a single entity. The ICICI Bank has formulated a Code

of Business Conduct and Ethics for its directors and employees.

The ICICI Bank (BSE: ICICI) (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. The Bank has total assets of about USD 100

billion (at the end of March 2008), a network of over 2509 branches, 22 regional

offices and 49 regional processing centers, about 5808 ATMs (at the end of

September 2008), and 24 million customers (at the end of July 2007).

57

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. (These data are dynamic.) 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 the 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.

1955: The Industrial Credit and Investment Corporation of India Limited

(ICICI) was incorporated at the initiative of World Bank, the Government of India

and representatives of Indian industry, with the objective of creating a development

financial institution for providing medium-term and long-term project financing to

Indian businesses.

58

ICICI emerges as the major source of foreign currency loans to Indian

industry. Besides funding from World Bank and other multi-lateral agencies, ICICI

was also among the first Indian companies to raise funds from international markets.

In 1956 ICICI declared its first dividend, of 3.5%, The first West German loan of DM

5 million from Kredianstalt obtained in 1961, ICICI made its first debenture issue for

Rs.6 crore, which was oversubscribed in 1967. Two regional offices were set up in

Calcutta and Madras in 1969. ICICI becomes the second entity in India to set up

merchant banking services in 1972. Then the ICICI Sponsored the formation of

Housing Development Finance Corporation and manages its first equity public issue

in 1977, ICICI became the first ever Indian borrower to raise European Currency

Units. ICICI commenced leasing business 1982. Further the extensive growth of the

bank reached another mile stone, that is, ICICI became the first Indian institution to

receive ADB Loans. The ICICI along with the UTI, set up Credit Rating Information

Services of India Limited, India's first professional credit rating agency. The ICICI

promotes Shipping Credit and Investment Company of India Limited. The

Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first

public issue by any Indian entity in the swiss capital market.

In 1987 ICICI signed a loan agreement for Sterling Pound 10 million with

Commonwealth Development Corporation (CDC), the first loan by CDC for

financing projects in India. In 1988 Promoted TDICI - India's first venture capital

company. ICICI Securities and Finance Company Limited in joint venture with J. P.

Morgan set up ICICI Asset Management Company set up in 1993, ICICI Ltd became

the first company in the Indian financial sector to raise GDR. Than the SCICI

merged with ICICI Ltd. in 1996.

59

A Major Development taken place in 1997 when ICICI Ltd was the first

intermediary to move away from a single prime rate structure to a three-tier prime

rates structure and introduced yield-curve-based pricing in the same year The name

"The Industrial Credit and Investment Corporation of India Ltd" changed to "ICICI

Ltd." and the ICICI Ltd. announced the take over of ITC Classic Finance. In 1998 A

new logo symbolizing the common corporate identity for the ICICI Group was

introduced and the ICICI announced the takeover of Anagram Finance. In 1999 the

bank launched retail finance - car loans, home loans and loans for consumer

durables and the ICICI became the first Indian company to get listed on the NYSE

through an issue of American Depositary Shares. In 2000 ICICI Bank became the first

commercial bank from India to get its stock listed on the NYSE and in the same year

ICICI Bank announces merger with Bank of Madura in 2001 ICICI acquired Bank of

Madura. The ICICI Bank had acquired Chettinad mercantile Bank and Illanji Bank in

the 1960s.

The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI Ltd.

with ICICI Bank. In the year 2002 ICICI Ltd merged with ICICI Bank Ltd to create

India's second largest bank in terms of assets, ICICI Bank launched India's first CDO

(Collateralized Debt Obligation) Fund named Indian Corporate Collateralized Debt

Obligation Fund (ICCDO Fund),"E-Lobby", a self-service banking centre and a first

of its kind in India, is-inaugurated in Pune, ICICI Bank launched Private Banking, AI,

100-seat Call Centre for Customer Care by phone and e-mail was set up In

Hyderabad, ICICI Bank Home Shoppe, the first-ever permanent aggregation and

display of housing projects in the county, launched in Pune, ATM-on-Wheels, India's

first mobile ATM, launched in Mumbai, hence 2002 was considered as an important

year in the History of ICICI bank.

60

In 2003 the first Integrated Currency Management Centre was launched in

Pune. The ICICI Bank announced the setting up of its first-ever offshore branch in

Singapore, The first offshore banking unit (OBU) at SEZ Special Economic Zone,

Mumbai, was launched, ICICI Bank's representative office inaugurated in Dubai,

Representative office set up in China, ICICI Bank's UK subsidiary launched, India's

first ever "Visa Mini Credit Card", a credit card 43% smaller in dimensions was

launched, A subsidiary of ICICI Bank was set up in Canada, Temasek Holdings

acquired 5.2% stake in ICICI Bank in the same year ICICI Bank became the market

leader in retail credit in India. In 2004 Max Money, a home loan product that offers

the dual benefit of higher eligibility and affordability to a customer was introduced.

Mobile banking service in India was launched in association with Reliance Infocomm.

India's first multi-branded credit card with HPCL and Airtel was launched. Kisan

Loan Card and innovative, low-cost A TMs were launched in rural India. The lCICI

Bank and CNBC TV 18 announced India's first ever awards recognizing the

achievements of SMEs, a pioneering initiative to encourage the contribution of Small

and Medium Enterprises to the growth of the Indian economy. The ICICI Bank

opened its 500th branch in India. The ICICI Bank introduced partnership model

wherein ICICI Bank would forge an alliance with existing Micro Finance Institutions

(MFIs). The MFI would. undertake the promotional role of identifying, training and

promoting the micro-finance clients and ICICI Bank would finance the clients directly

on the recommendation of the MFI, ICICI Bank introduced 8 to 8 Banking wherein

all the branches of the Bank would remain open from 8 a.m. to 8 p.m. from Monday

to Saturday, ICICI Bank introduced the concept offloading rate for home loans in

India.

61

In 2005 First rural branch and ATM launched in Uttar Pradesh at

Delpandarwa, Hardoli," Free for Life" credit cards were launched wherein annual fees

of all ICICI Bank Credit Cards were waived off. The ICICI Bank and Visa jointly

launched mChq - a revolutionary credit card on the mobile phone,Private Banking

Masters 2005, a nationwide Golf tournament for high net worth clients of the Private

Banking division was launched. This event is the largest domestic invitation amateur

golf event conducted in India. The ICICI Became the first Indian company to make a

simultaneous equity offering of $1.8 billion in India, the United States and Japan. It

acquired Ivestitsionno Kreditny Bank of Russia. The ICICI Bank became the largest

bank in India in terms of its market capitalization. The ICICI Bank became the first

private entity in India to offer a discount to retail investors for its follow-up offer. In

2006 ICICI Bank became the first Indian bank to issue hybrid Tier-l perpetual debt in

the international markets, IClCI Bank subsidiary set up in Russia, introduced a new

product - 'NRI smart save Deposits' - a unique fixed deposit scheme for nonresident

Indians. Representative offices were opened in Thailand, Indonesia and Malaysia,

ICICI Bank became the largest retail player in the market to introduce a biometric

enabled smart card that allows banking transactions to be conducted on the field.

As a low- cost solution, this became an effective delivery option for ICICI

Bank's micro-finance institution Partners, Financial counseling centre Disha was

launched. Disha provides free credit counseling, financial planning and debt

management services, Bhoomi puja was conducted for a regional hub in Hyderabad,

Andhra Pradesh. In 2007 ICICI Bank made USD 2 billion three-tranche international

bond offering, which became the largest bond offering by an Indian bank, then Sangli

Bank came to the amalgamation with ICICI Bank.

62

ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic and

international markets through a follow-on public offer, ICICI Bank's GBP 350 million

international bond offering marked the inaugural deal in the sterling market from an

Indian issuer and also the largest deal in the sterling market from Asia,. The Bank

Launched India's first ever jewellery card in association with jewellery major

Gitanjali Group, ICICI Bank became the first bank in India to launch a premium

credit card -- The Visa Signature Credit Card, The foundation stone for a regional hub

in Gandhinagar, Gujarat was laid, ICICI Bank introduced SME Toolkit, an online

resource centre, to help small and medium enterprises start, finance and grow their

business,ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication

loan agreement in Singapore, ICICI Bank became the first private bank in India to

offer both floating and fixed rate on car loans, commercial vehicles loans,

construction equipment loans and professional equipment loans,In a first-of-its-kind,

nation wide initiative to attract bright graduate students to pursue a careers in banking,

IClCI Bank launched the "Probationary Officer Programme", Launched Bank @

Home services for all savings and current account customers residing in India,ICICI

Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.In 2008 ICICI

Bank enters USA, launches its first branch in New York, ICICI Bank enters Germany,

opens its first branch in Frankfurt, ICICI Bank launched iMobile, a breakthrough

innovation in banking where practically all Internet banking transactions can now be

done easily on the mobile phone, ICICI Bank concluded India's largest ever

securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96

billion (equivalent of USD l.21 billion) in a multi- tranche issue backed by four

different asset categories.

63

ICICI Bank launches ICICI ACTIVE-Banking Interactive Service - along

with DISH TV, which will allow viewers to see information about the Bank's products

and services and contact details on their DISH TV screens,ICICI Bank and British

Airways launch a co-branded credit card, designed to earn cardholders accelerated

reward points with every British Airways flight or by spending on everyday purchase.

In 2009, the ICICI made huge changes in it is organization like eliminate loss making

department and retrenching out sourced staff or reduced their charges in consequence

to the recession.

E- Banking Services

The E-Banking services have providing various services such as, Corporate

net banking, FX online, Online taxes, Internet Banking, Bill Pay, Smart Money order,

Prepaid Mobile Charge, Trade MIS, Top Online Schemes, Salary Book, On line

Payment, Speed money Transfer, Mobile Banking, Tele Banking etc.

Financial Services

The Bank has been engaging in number of financial services such as, ICICI

Lanbard General Insurance, ICICI Securities, ICICI Prudential life Insurance, ICICI

Prudential AMC, ICICI Venture, ICICI Direct, ICICI DISHA Financial Counseling,

ICICI Home Finance, ICICI Erstwhile The Bank of Rajastan.

64

Subsidiary Companies

At March 31, 2011, ICICI Bank had 17 Subsidiaries as listed in the following table :

Domestic Subsidiaries International Subsidiaries

• ICICI Prudential Life Insurance Company

Limited

• ICICI Lombard General Insurance Company

Limited

• ICICI Prudential Asset Management

Company Limited

• ICICI prudential Trust Limited

• ICICI Securities Limited

• ICICI Securities Primary Dealership Limited

• ICICI Venture Funds Management Company

Limited

• ICICI Home Finance Company Limited

• ICICI Investment Management Company

Limited

• ICICI Trusteeship Services Limited

• ICICI Prudential Pension Funds Management

Company Limited

ICICI Bank UK PLC

ICICI Bank Canada

ICICI Bank Eurasia Limited

Liability Company

ICICI Securities Holdings Inc

ICICI Securities Inc

ICICI International Limited

65

ICICI bank offers the following types of consumer’s services under four heads

general banking, wholesale banking, retail banking and intentional banking

GENERAL BANKING

� SMS & WAP mobile banking

� Any branch anywhere banking(Core banking,)

� Sunday banking

� Extended hours

� Savings account

� Current account

� Fixed deposit

� ATM cards, Debit cards & Credit cards

� Lockers

� Demat account

� Mutual funds

� Loans for Homes renovation, Car and Education

� Loans against residential prosperity, shares and securities, fixed deposit and

other terms deposits

� Corporate payroll account

� Business premium current account

� Investment cum insurance plan for retires

� Non-resident services

� Health insurance, General insurance

66

WHOLE SALE BANKING

� Working capital Finance

� Cash management services

� Trade Finance services

� Treasury products

� Structured Finance

� Infrastructure Finance

� Manufacturing project Finance

� Capital market services

� Rural banking

� Agricultural Finance

RETAIL BANKIG

� Home Loans

� Car and Two Wheeler loans

� Commercial Vehicle Financing

� Personal Loans

� Loans against security

� Saving & terms deposit

� Salary Account

� Investment Product

� Private banking

� Demat services

� Bill payments services

� Roaming current accounts

� SME Financing

67

INTERNATIONAL BANKING

� NRI Savings account

� Foreign Currency International Deposit

� Offshore Banking Unit Deposit

� Money transfer / Remittance

� Private Banking

� Online Savings Accounts

� Trade Finance

� Correspondent Banking

� Global Treasury

� External Commercial Borrowing

DNA of ICICI bank Ltd.

Like human body, organization too has DNA which forms the organization

foundation. It an be summaries in few points.

� Honesty & Integrity

� Customer first (Customer Relationship Management)

� Boundary less Communication

� Entrepreneurship mindset of the employee

ORGANISATION STRUCTURE

The ICICI bank has very effective Organization structure such as Retail

Banking Group, Wholesale Banking Group, International Banking Group,

Global Markets Group, Corporate Centre Group, Human Resources

Management Group, Global Operations and Middle Office Groups, Customer

Services Group, Information Technology Group,Global Infrastructure &

Administration Group.

68

During fiscal year 2011, given the significant expansion in its branch network

and its increased focus on the customer service, it reorganized its organisation

structure to provide greater empowerment to its branches with enhanced senior

management oversight of their operations. It expects branch network to serve as an

integrated channel for deposit mobilization, retail asset origination and distribution of

third party products. At the same time, it seeks to ensure effective control and

supervision and consistency in standards across the organization. The organization is

structured into the following principal groups:

� Retail Banking Group: The retail sales and service architecture has been

organized into four geographies. These have been further divided into zonal

and regional structures. The Retail Strategy, Product & Policy Group has been

formed to develop customer - segment specific strategies, including product

design and service propositions. The Retail Banking Group is also responsible

for inclusive and rural banking.

� Wholesale Banking Group: It Comprising the Corporate Banking Group,

Commercial Banking Group, Investment Banking Group, Project Finance

Group, Financial Institutions and Capital Markets Group, Government

Banking Group and Mid - corporate & Small Enterprises Group.

� International Banking Group: It comprises the Bank’s international

operations, including operations in various overseas markets as well as

products and services for non-resident Indians, international trade finance,

correspondent banking and wholesale resource mobilization.

69

� Global Markets Group: It comprising its global - centric treasury operations.

� Corporate Centre Group: It comprising financial reporting, planning and

strategy, asset liability management, investor relations, secretarial, corporate

branding, corporate communications, risk management, compliance, internal

audit, legal, financial crime prevention and reputation risk management,

accounts and taxation and the Bank’s proprietary trading operations across

various markets.

� Human Resources Management Group: It is responsible for the Bank’s

recruitment, training, leadership development and other personnel

management functions and initiatives.

� Global Operations and Middle Office Groups: This group is responsible

for back- office operations, controls and monitoring for our domestic and

overseas operations.

� Customer Services Group: It is responsible for initiatives towards building

and maintaining long - term customer relationships.

� Information Technology Group: It is responsible for enterprise - wide

technology initiatives, with dedicated teams serving individual business

groups and managing information security and shared infrastructure.

� Global Infrastructure & Administration Group: It is responsible for

management of corporate facilities and administrative support functions.

Over the past decade ICICI Bank has redefined the banking landscape.

Through a deep understanding of customer needs, it has leveraged technology to

introduce several innovations to make banking simple and convenient for the

customer.

70

Continuing with its commitment towards deepening its relationship with its

customers, it has undertaken many initiatives so strengthen the customer experience

internet banking, mobile banking and phone banking, in addition its continued to offer

products and services that have been thoughtfully designed, keeping the consumer in

mind. Khayaal Apka is a reflection of this commitment that it has towards its

customers. Khayaal Apka embodies its relationships with customers that go beyond

transactions - it is it’s commitment to treat it’s customers fairly, show empathy

towards the customer needs and create and deliver products and services that make a

difference to its customers’ lives.

ICICI Bank ATM Services

On most modern ATMs, the customer identifies him or herself by inserting a

plastic card with a magnetic stripe or a plastic smartcard with a chip that contains his

or her account number. The customer then verifies their identity by entering a pass

code, often referred to as a PIN (Personal Identification Number) of four or more

digits. Upon successful entry of the PIN, the customer might perform a transaction.

After the transaction is complete, a transaction record is printed, usually consisting of

the action taken, date and time, location, any applicable fees and available balance. If

the number is entered incorrectly several times in a row (usually three attempts per

card insertion), some ATMs attempt to retain the card as a security precaution to

prevent an unauthorized user from discovering the PIN by guesswork. Captured cards

are often destroyed if the ATM owner is not the card issuing bank, as non-customer’s

identities are not reliably confirmed. In some cases, a transaction is performed at the

ATM that allows the customer’s PIN to be changed securely.

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Types of ATMs

ATMs are classified into the following types,

1. Types by physical characteristics

2. Types by installation locations

1. Types by physical characteristics

There are two main types of ATMs that have developed over time:

a. Mono-function devices, wherein only one type of mechanism for financial

transaction is present (such as cash dispensing or statement printing)

b. Multi-function devices, which incorporates multiple mechanisms to perform

multiple services (such as accepting deposits, dispensing cash, printing

statements, etc.) all within a single footprint.

Mono-function and multi-function devices are both manufactured as regular

“interior grade” and weather-resistant “exterior, through-the-wall grade” variants.

Some ATMs are also built as fully self-contained exterior unit designed to sit alone

without the protection of a building and be completely exposed on all sides to the

elements. Reasons for selecting either mono-function or multi-function and “interior”

versus “exterior” ATMs include device cost, installation location, customer wait time,

desired reliability, and historical preference.

72

2. Types by installation locations

ATMs are placed not only near or inside the premises of banks, but also in

locations such as shopping centre/malls, grocery stores, gas stations and restaurants.

These represent two types of ATM installations, on and off the premise. One premise

ATMs are typically more advanced, multi-function machines that complement an

actual bank branch’s capabilities and thus are more expensive. Off premise machines

are deployed by financial institutions and also ISO’s (Independent Sales

Organizations) where there is usually just a straight need for cash, so they are

typically the cheaper mono-function device.

Functions of ICICI Bank ATMs

1. Cash dispensing

2. Generating statement of account

3. Account balance enquiry

4. Request for a cheque book

5. Deposit of cash/cheques

6. Issue of gift cheques/travelers cheques

7. Utility payments like telephone bills, electricity bills etc.

Advantages of ICICI Bank ATMs

1. Round the clock banking for 365 days a year, by the customer.

2. Quick and efficient service.

3. Response is uniform and fixed for all the customers as per the programme set, thus

Leaving no scope for discourteous or subjective behaviour as could happen with

human interaction at bank counters.

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Security

Security, as it relates ATMs, has several dimensions. ATMs also provide a

practical demonstration of a number of security systems and concepts operating

together and how various security concerns are dealt with.

Customer security while using ATMs

Security guards watch ATMs round the clock. In some areas, multiple security

cameras and security guards are a ubiquitous ATM feature. Critics of ATM operators

assert that the issue of customer security appears to have been abandoned by the

banking industry. It has been suggested that efforts are now more concentrated on

deterring legislation than on solving the problem of forged withdrawals. At least as far

back as July 30, 1986, critics of the industry had called for the adoption of an

emergency PIN system for ATMs, where the user is able to send a silent alarm in

response to a threat.

Alternative Uses of ICICI Bank ATMs

Although ATMs were originally developed as just cash dispensers, they have

evolved to include many other bank-related functions. In some countries, especially

those which benefit from a fully integrated cross-bank ATM network, ATMs include

many functions which are not directly related to the management of one’s own bank

account, such as:

74

• Deposit currency recognition, acceptance, and recycling

• Paying routine bills, fees and taxes (utilities, phone bills, social security, legal

fees, taxes, etc.)

• Printing bank statements

• Updating passbooks

• Loading monetary value into pre-paid cards (cell phones, tolls, multi purpose

stored value cards, etc.)

• Ticket purchases (train, concert, etc.)

• Purchasing postal stamps

• Lottery ticket purchases

• Games and promotional features

• Donations to charity

ICICI Bank ATMs also act as an advertising channel for companies to advertise

their own products or third-party products and services

Cards

There are several cards issued to customers by the ICICI bank to facilitate

banking activities. These cards are in plastic and usually about 8.5 cm by 5.5 cm in

size. The name of the holder is embossed as is the number of the card. It also has an

expiry date.

75

Charge Card

In these cards transactions are accumulated over a period of time (generally a

month) and then the total is debited to the account. The card-holder is given 25 to 50

days to pay. These are called charge cards as the transactions are accumulated and not

debited to the account immediately. The amount on a charge card is payable in full

and no credit is given. American Express and Diners Cards are the major charge cards

in circulation. These are also called T&E cards.

Credit Card

Credit cards are similar to charge cards. At the end of a month details of all

amounts purchased are sent to the card-holder who is required to pay a minimum

amount (if he does not wish to pay the entire amount). He is then given credit for the

balance not paid and charged interest on the balance (varying between 2 – 3% per

month).The major credit card issuers are MasterCard and Visa and most banks offer

either MasterCard or Visa linked cards. This is for acceptability at vendor

establishments.

Debit Card

Debit cards are dissimilar to charge and credit cards as the holder receives no

credit. As soon as a transaction is undertaken, the customer’s account is debited with

the amount of the purchase. If the customer does not have sufficient balance the

transaction is rejected. These are issued by banks and are linked to the account of the

holder. The great benefit is that individuals are not permitted to buy more than they

have funds for. Debit cards are similar to ATM cards and have a unique number.

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Bank customers use this to withdraw money from ATMs by punching in their

personal identification number or pay goods and services. When paying for

goods/services the vendor swipes the card through a point of sale terminal. The

customer’s account is checked and if there is adequate balance, the account is debited

and the vendor’s account is credited. The great benefit is that the customer would not,

by using these, create huge outstanding. The limitation is that customers do not avail

of credit (like that of a credit card).

Smart Card

A smart card is like any other credit card. It however has an Integrated Circuit

(IC) chip installed in it. The chip contains memory, contains a processor and

communicates through contacts on the surface of the card.

Electronic Purse

An electronic purse is a smart card that has transferred into it an amount of

money. Every time a transaction is entered into, the purse is depleted by the money

taken out. Once empty it is electronically replenished.

Status of ATM Industry in India

In India ATM is still a new technology. With the emergence of private sector

Banks like ICICI Bank Ltd.,, IDBI Bank, HDFC Bank etc. the number of ATM

centers has increased tremendously. There are presently all types of Banks offering

ATM services. For example ICICI Bank Ltd., (a Private Bank), State Bank of India (a

public Sector Bank), Citibank (A foreign Bank), Greater Bombay CO-OP Bank (a co-

op Bank).

77

The Banks are offering various services like Cash withdrawal, fund transfer,

Balance enquiry etc. The Banks have tie-ups in between them for sharing of their

services this may be bilateral or multilateral by way of consortium like SWADHAN.

Automatic Teller machines (ATMs) Shared by a

Consortium of Banks

ICICI bank provides its own computer to maintain its own accounts and

process transactions against it. Cashier stations are owned by ICICI bank and

communicate directly with its own bank’s computers. Human cashiers enter account

and transaction data. Automatic teller machines communicate with a central computer

that clears transactions with the bank. An automatic teller machine accepts a cash

card, interacts with the user, communicates with the central system to carry out the

transaction, dispenses cash, and prints receipts. The system requires appropriate

record - keeping and security provisions. The system must handle concurrent accesses

to the same account correctly. The bank provides its own software for its own

computers; you are to design the software for the ATMs and the network. The cost of

the shared system is normally apportioned to the banks according to the number of

customers with cash cards. In India a very good example of such consortium is

SWADHAN NETWORK. SWADHAN NETWORK is a net work of various public

sector Banks, Private Banks and Co- operative Banks with nationwide coverage.

78

ICICI Bank ATM project

In Chennai metro 25 new ATMs were set up during the year taking the total of

ICICI bank ATMs to 170 as on 31st march 2011. The ATM usage registered an

impressive increase during the year. As against a total number of Rs.110 crore

transactions and cash withdrawals aggregating to Rs.1032.45 crore made during the

year 2009-2010, the transactions recorded and cash withdrawals made during the year

2010-2011 were Rs.233.88 crore and Rs.3132.84 crore respectively, thereby recording

increases of 162% and 203% respectively during this period.

STAFF STRENGTH

ICICI bank had a total staff strength of 2055 in Chennai metro as on the 31st

march 2011. Of this 29.30% were officers, 45.65% clerical staff and the remaining

25.05% were sub-staff.

Credit Ratings

ICICI bank’s credit ratings by various credit ratings agencies are given below:

Agency Rating

Moody’s Investors Service(Moody’s) Baa3

Standard & Poor’s(S&P) BB+

Credit Analysis & Research Limited(CARE)

CARE AAA

Investment Information and Credit Rating Agency (ICRA)

AAA

79

Administrative Structure

Administrative Structure of ICICI bank could be classified into Board Directors and

Board Committee.

Board of Directors

Deputy Managing Director

Executive Director & CFO

Executive Director

Senior Management

Chairman

Board Committees

Board Governance, Remuneration &

Nomination Committee

Corporate Social Responsibility

CommitteeCredit Committee

Share Transfer & Shareholders /

Investors’ Grievance Committee

Customer Service Committee

Risk Committee

Audit Committee

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Organization Co-ordinance with various Department

The Organzation has very structured and effective mechanism in

commensuration with activities of different dept, Bank has Clear and transparent

system through which all the departments are connected,It has a common platform

for all the Employees,proper Utilization ICT development for banking

transactions,Customer requirement dealt through Intranet connection which enables

all the department share the information more quickly and accurately,hence such

mechanism is a pivotal instrument for better service provision.

Subsidiaries in Overseas

The Bank currently has subsidiaries in 19 countries namely, United Kingdom,

Russia, Qatar, Canada, Dubai, United States, UAE, Singapore, China, Bahrain, South

Africa, Honk Kong, Bangladesh, Srilanka, Thailand, Malaysia, Indonesian, Belgium,

Germany.

Awards & Recognition

Till 2011 ICICI bank received several prestigious awards in recognition of business strategy, customer service and technologies focus. They are,

• “Best Bank in India” by Euro money.

• “Best Retail Bank in India” by Asian Banker.

• “India’s Most Customer Friendly Bank” by Outlook Money.

• “Best Bank” by Business India.

• “Best Domestic Commercial Bank” in India by Asia Money.

• “Best Bank of the year in India” by Finance Asia.

• “Best Financial Institution” by NYSE.

81

PERFORMANCE ANALYSIS OF ICICI BANK LTD

THE BALANCE SHEET ASSESSMENT

This section deals with the assessment of the balance sheet of the bank for the

last five years in order to understand the fiscal wealth of the bank and also tried to

forecast the bank performance for the next five years. In order to predict the future

dynamics forecasting has been done, cumulative average of the last five year trend

was taken as the base for the forecast on the basis of the same prediction has been

done by simple arithmetic average method, the average arithmetic varied in

accordance with the element of risk incorporated, hence the simple arithmetic average

is being fluctuated, at the outset the researcher has not utilized any forecasting model

in stead of he utilized simple average subject to the inferences drawn from the past

trend.

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TABLE III: 1

Assets of ICICI bank from 2006-07 to 2010-11

(Rs.in crores)

2006-07 % 2007-08 % 2008-09 % 2009-10 % 2010-11 %

Cash & Balances with RBI

18,706.88

(Base year)

5.43 29,377.53 (57.04)

7.35 17,536.33 (-6.26)

4.62 27,514.29 (47.08)

7.57 20,906.97 (11.76)

5.15

Balance with Banks, Money at Call

18,414.45

(Base year)

5.34 8,663.60 (-52.96)

2.17 12,430.23 (-32.50)

3.28 11,359.40 (-38.32)

3.13 13,183.11 (-28.40)

3.25

Advances

195,865.60

(Base year)

55.10 225,616.08 (15.19)

56.52 218,310.85 (11.46)

55.54 181,205.60 (-7.50)

49.85 216,365.90 (10.46)

51.80

Investments

91,257.84

(Base year)

25.69 111,454.34 (22.13)

25.30 103,058.31 (12.93)

26.26 120,892.80 (32.47)

30.30 134,685.96 (47.59)

31.30

Gross Block

6,298.56

(Base year)

1.83 7,036.00 (11.71)

1.76 7,443.71 (18.18)

1.96 7,114.12 (12.95)

1.91 9,107.47 (44.60)

2.24

Accumulated Depreciation

2,375.14

(Base year)

0.69 2,927.11 (23.24)

0.73 3,642.09 (53.4)

0.96 3,901.43 (64.26)

1.07 4,363.21 (83.70)

1.07

Net Block

3,923.42

(Base year)

1.14 4,108.89 (4.72)

1.03 3,801.62 (-3.10)

1.00 3,212.69 (-18.12)

0.88 4,744.26 (20.92)

1.17

Capital Work In Progress

189.66 0.06 0 0.00 0 0.00 0 0.00 0 0.00

Other Assets

16,300.26

(Base year)

4.73 20,574.63 (26.22)

5.15 24,163.62 (48.24)

6.37 19,214.93 (17.88)

5.29 16,347.47 (0.28)

4.02

Total Assets

344,658.11

(Base year)

100.00 399,795.07 (15.99)

100.00 379,300.96 (10.05)

100.00

363,399.71 (05.43)

100.00 406,233.67 (17.86)

100.00

( ) indicates trend percentage

Source: Computed from Annual Report of ICICI Bank Ltd

83

Table III:1 excemplifies the assets of the componets of the ICICI bank for the

last five years, with regard to cash & balance with RBI Rs.18706.9 crores which 5.4

percent of the total assets of 2006-07, which is increased to Rs.20,907 crores with the

slight decline in the proportion of total assets with 5.1 percent of the total

assets,whreaas the overall incarese of the amount is 11.8 percent, Balance with

banks, Money at call was Rs.18,414.5 crores in 2006 with the percent of 5.3 percent

of the total assets, it has diminished to Rs.13,183.1 crores in 2010-11 with the 28.4

percent of increase over the period of time, with reagrd to the advances of the bank in

2006-07 the amonut was Rs.1,95,866 crores which constitutes 56.8 percent of the total

assets which has increased to Rs.2,16,366 crores which constitutes around 53.3

percent of the total assets for the year 2010-11 with the increase of 10.5 percent of the

increase over the years. With respect to investments the amount was Rs.91,257.8

crores constitutes 26.5 percent of the total assets on 2006-07, which is Rs.1,34,686

crores in 2010-11 which constitutes 33.2 percent of the overall assets of that

respective year with the increase of 47.6 percent over the years.

84

The gross block for the year 2006-07 was Rs.6298.56 crores which constitutes

around 1.8 percent of the total assets, which is Rs.9,107 crores in 2010-11 which

constitutes 2.2 percent of the overall assets of that respective year with the increase of

44.6 percent over the years, The accumulated depreciation for the year 2006-07 was

Rs.2375.14 crores constitutes 0.7 percent of the total assets which is Rs.4,363.21

crores in 2010-11 which constitutes 1.1percent of the overall assets of that respective

year with the increase of 83.7 percent over the years, other assets of the year 2006-07

was Rs.16,489 crores constitutes around 4.8 percent of the total assets.

Which is Rs.16,347.5 crores in 2010-11 which constitutes 4 percent of the

overall assets of that respective year with the decrease of 0.89 percent over the

years,Thus the assets of the ICICI bank shows positive developement over the period

of time and there has not been very negative fluctuations taking place during the last

five years. It clearly indicates the financial stability of the bank.

The table also indicates the trend of the various componets of the asset of the

ICICI bank during the period from 2006-07 to 2010-11, with regard to Cash &

Balances with RB there has been significant increase from 2006-07 to 2007-08 with

the increase amount 57.04 percent, but contrast to this trend during the financial 2008-

09 it records the negative trend with 6.26 percent decline from the pervious year,for

the year 2009-10 again the trend regain its positive trend to record the hike with 47.08

percent and for the year 2010-11 similar trend emerged but in bit slower pace from

the pervious year with the percentage increase around 11 percent,with respect to the

Balance with Banks, Money at Call domain it was found that the negative growth

with -52.96 percent more than half of the decline witnessed from the 2006-07 to

2007-08.

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The same trend found in the consecutive year with -32.50 percent decline from

the proceeded year, the same negative growth rate was registered with the percentage

-38.32 for the year 2009-10, for the year 2010-11 the decline bit slower than the

previous year registering -28.40 percent, the over all trend shows the negative during

the study period,

with regard to Advances there has been significant increase from 2006-07 to

2007-08 with the increase amount 15.19 percent, similarly during the financial 2008-

09 it records the percent 11.46 percent incraese from the pervious year,for the year

2009-10 again the trend regain its negative trend to record decline of -7.50 percent

and for the year 2010-11 positive trend emerged from the pervious year with the

percentage increase around 10.46 percent, the overall trend appears fluctuating during

the study period.

with respect to investment it was found that there has been significant

increase from 2006-07 to 2007-08 with the increase amount 22.13 percent, similarly

during the financial 2008-09 it records the percent 12.13 percent incraese from the

pervious year with bit slower pace,for the year 2009-10 trend record with 32.7 percent

and for the year 2010-11 positive trend emerged from the pervious year with the

percentage increase around 47.9 percent with the highest percentage during the study

period, the overall trend shows the study growth during the study period.with respect

to Gross Block there has been significant increase from 2006-07 to 2007-08 with the

increase amount 11.71 percent, similarly during the financial 2008-09 it records the

percent 18.18 percent increase from the previous year with bit higher pace.

86

For the year 2009-10 trend record with 12.95 percent and for the year 2010-11

positive trend emerged from the previous year with the percentage increase around

44.60 percent with the highest percentage during the study period, the overall trend

shows the study growth during the study period.with respect to Accumulated

Depreciation there has been significant increase from 2006-07 to 2007-08 with the

increase amount 23.24 percent, similarly during the financial 2008-09 it records the

percent 53.4 percent increase from the pervious year with bit higher pace, for the year

2009-10 trend record with 64.26 percent and for the year 2010-11 positive trend

emerged from the previous year with the percentage increase around 83.70 percent

with the highest percentage during the study period, the overall trend shows the study

growth during the study period.with respect to Net Block there has been significant

increase from 2006-07 to 2007-08 with the increase amount 4.72 percent, but contrast

to the previous year financial 2008-09 records the negative growth rate with -3.10

percent decline, for the year 2009-10similar trend record with -18.12 percent and for

the year 2010-11 positive trend emerged from the previous year with the percentage

increase around 20.92 percent with the highest percentage during the study period, the

overall trend shows fluctuating trend during the study period. with regards to Other

Assets to there has been significant increase from 2006-07 to 2007-08 with the

increase amount 26.22 percent, similarly during the financial 2008-09 it records the

percent 48.24 percent increase from the previous year with bit higher pace, for the

year 2009-10 trend record with 17.88 percent and for the year 2010-11 positive trend

emerged from the previous year with the percentage increase around 4.02 percent

with the lowest percentage during the study period, the overall trend shows the study

growth during the study period.

87

With regards to Total Assets trend there has been significant increase from

2006-07 to 2007-08 with the increase amount 15.99 percent, similarly during the

financial 2008-09 it records the percent 10.05 percent increase from the previous year

with bit higher pace, for the year 2009-10 trend record with 5.43 percent and for the

year 2010-11 positive trend emerged from the previous year with the percentage

increase around 17.82 percent with the highest percentage during the study period, the

overall trend shows the study growth during the study period.

88

TABLE III:2

Assets of ICICI bank from 2011-12 to 2015-16

(Rs.in crores)

2011-12 % 2012-13 % 2013-14 % 2014-15 % 2015-16 %

Cash & Balances with RBI

21638.71 (Base year)

5.12 22374.43

(3.40) 5.11

23247.03

(7.43) 5.15

24130.42

(11.51) 5.19

25095.64

(15.96) 5.24

Balance with Banks, Money at Call

13684.07 (Base year)

3.24 14204.06

(3.79) 3.24

14786.43

(8.06) 3.28

15407.46

(12.59) 3.31

16177.83

(18.22) 3.38

Advances 225020.5 (Base year)

53.21 232896.3

(3.50) 53.16

241746.3

(7.43) 53.57

253591.9

(12.69) 54.56

265764.3

(18.10) 55.51

Investments 138726.5 (Base year)

32.80 144969.2

(4.50) 33.09

151202.9

(8.99) 33.51

159972.7

(15.31) 34.42

166211.6

(19.81) 34.72

Gross Block 9453.554 (Base year)

2.24 9897.871

(4.70) 2.26

10184.91

(7.73) 2.26

10643.23

(12.58) 2.29

11154.11

(17.98) 2.33

Accumulated Depreciation

4494.106 (Base year)

1.06 4669.376

(3.90) 1.07

4893.507

(8.88) 1.08

5079.46

(13.02) 1.09

5313.115

(18.25) 1.11

Net Block 4929.286 (Base year)

1.17 5116.599

(3.80) 1.17

5316.146

(17.84) 1.18

5560.689

(12.81) 1.20

5838.724

(18.45) 1.22

Capital Work In Progress

0 0.00 0 0.00 0 0.00 0 0.00 0 0.00

Other Assets 16821.55 (Base year)

3.98 17427.12

(3.60) 3.98

18054.5

(7.32) 4.00

18939.17

(12.59) 4.07

19867.19

(18.10) 4.15

Total Assets 434768.3 (Base year)

100.00 451554.9

(3.86) 100.00

469431.7

(7.97) 100.00

493325

(13.46) 100.00

515422.5

(18.54) 100.00

( ) indicates trend percentage

Source: Computed based on Annual Report of ICICI Bank Ltd

89

Table III:2 excemplifies the assets of componets of the ICICI bank projected

for the next five years, the forecasted values are hypothetical and subjected to be

sensitive to the changes in the bank operation and tranaction but still it shows

reasonable clarity over the future trend of the bank financial position, with regards to

cash & balance with the RBI Rs.21,617.8 crores which 5 percent of the total assets of

2011-12, which would be increased to Rs.25094.2 crores with the increase in the

proportion of total assets with 5.24 percent of the total assets, whreaas the overall

increase of the amount is 54.3 percent, Blance with banks, Money at call would be

Rs.13,684 crores in 2011-12 with the percent of 3.24 percent of the total assets, it

would be increased to Rs.161777.83 crores in 2015-16 with the 28.9 percent of

increase over the period of time, with reagrd to the advances of the bank in 2011-12

the amonut would be Rs.225020.5 crores which constitutes 51.3 percent of the total

assets which would be increased to Rs.265724 crores which constitutes around 50.8

percent of the total assets for the year 2015-16, with respect to investments the

amount was Rs.138726.5 crores which would constitutes 32.8 percent of the total

assets on 2011-12.

90

Which would be Rs.166211.6 crores in 2015-16 which constitutes 34.7

percent of the overall assets of that respective year with the increase of 21.7 percent

over the years,The gross block for the year 2011-12 would be Rs.9453.554crores

which constitutes around 2.1 percent of the total assets, which is Rs.11154.11crores in

2015-16 which constitutes 2.33 percent of the overall assets of that respective year

with the increase of 10.2 percent over the years,The accumulated depeciation for the

year 2011-12 would be Rs.4494.10 crores constututes 1 percent of the total assets

which would be Rs.5313.11crores in 2015-16 which constitutes 1.1 percent of the

overall assets of that respective year with the increase of 12.7 percent over the

years,other assets of the year 2011-12 would be Rs.16821.55crores constitutes

around 3.98 percent of the total assets which would be Rs.19867.19crores in 2015-

16 which constitutes 4.15 percent of the overall assets of that respective year with

the increase of 15.8 percent over the years,Thus the assets of the ICICI bank would

shows poitive developemnt over the period of time and there would be no negative

fluctuations during the next five years, it could be inferred from the prediction that

the assets of the ICICI bank would grow subtantially and clearly indicates the

financial stability of the bank.

The table also indicates the forcasting trend of the various componets of the

asset of the ICICI bank during the period from 2011-12- 2015-16, with regard to Cash

& Balances with RB there would be significant increase from 2011-12 to 2012-13

with the increase amount 3.40 percent, same trend persists during the financial 2013-

14 it records the trend with 7.43 percent decline from the pervious year,for the year

2014-15 hike with percent 11.51, similar trend emerged but from the previous year

with the percentage increase around 15.96 percent.

91

With respect to the Balance with Banks, Money at Call domain it was found

that the growth with 3.79 percent hike witnessed from the 2011-12 to 2012-13,the

same trend found in the consecutive year with 8.06 percent escalation from the

proceeded year, the same growth rate was registered with the percentage 12.59 for the

year 2014-15, for the year 2015-16 the increase from the previous year registering

18.22 percent, the overall trend shows the positive trend during the study period,with

regard to Advances there would be significant increase from 2011-12 to 2012-13 with

the increase amount 3.50 percent, similarly during the financial 2013-14 it records the

percent 7.43 percent increase from the previous year, for the year 2014-15, again the

trend regain its trend to record increase of 12.69 percent and for the year 2015-16

positive trend emerged from the previous year with the percentage increase around

18.10 percent, the overall trend appears fluctuating during the study period.with

respect to investment it was found that there would be significant increase from

2011-12 to 2012-13 with the increase amount 4.5 percent, similarly during the

financial 2013-14 it records the percent 8.99 percent increase from the pervious

year,for the year 2014-15 trend record with 15.31 percent and for the year 2015-16

positive trend emerged from the previous year with the percentage increase around

19.81 percent during the study period, the overall trend shows the study growth

during the study period.with respect to Gross Block there would be significant

increase from 2011-12 to 2012-13 with the increase amount 4.70 percent, similarly

during the financial 2013-14 it records the percent 7.73 percent increase from the

previous year with bit higher pace, for the year 2014-15 trend record with 12.58

percent and for the year 2015-16 positive trend emerged from the previous year with

the percentage increase around 17.98 percent with the highest percentage during the

study period, the overall trend shows the study growth during the study period.

92

With respect to Accumulated Depreciation there would be significant increase

from 2011-12 to 2012-13 with the increase amount 3.90 percent, similarly during the

financial 2013-14 it records the percent 8.88 percent increase from the previous year

with bit higher pace, for the year 2014-15 trend record with 13.02 percent and for the

year 2015-16 positive trend emerged from the previous year with the percentage

increase around 18.25 percent with the highest percentage during the study period, the

overall trend shows the study growth during the study period.with respect to Net

Block there would be significant increase from 2011-12 to 2012-13 with the increase

amount 3.80 percent, but contrast to the previous year financial 2013-14 records the

negative growth rate with 17.84 percent increase, for the year 2014-15 similar trend

record with 12.81 percent and for the year 2010-11 positive trend emerged from the

previous year with the percentage increase around 18.45 percent during the study

period, the overall trend shows fluctuating trend during the study period. with regards

to Other Assets to there would be significant increase from 2011-12 to 2012-13 with

the increase amount 3.60 percent, similarly during the financial 2013-14 it records

the percent 7.32 percent increase from the previous year, for the year 2014-15 trend

record with 12.59 percent and for the year 2015-16 positive trend emerged from the

previous year with the percentage increase around 18.10 percent, the overall trend

shows the study growth during the study period. with regards to Total Assets trend

there would be significant increase from 2011-12 to 2012-13 with the increase amount

3.86 percent, similarly during the financial 2013-14 it records the percent 7.97 percent

increase from the previous year, for the year 2014-15 trend record with 13.46 percent

and for the year 2010-11 positive trend emerged from the previous year with the

percentage increase around 18.54 percent, the overall trend shows the study growth

during the study period.

93

TABLE III: 3

Liabilities of the ICICI bank from 2006-07 to 2010-11

(Rs.in crores)

2006-07 % 2007-08 % 2008-09 % 2009-10 % 2010-11 %

Share Capital 1,249.34

(Base year)0.36

1,462.68

(17.07) 0.37

1,463.29

(17.12) 0.39

1,114.89

(-10.77) 0.31

1,151.82

(-7.81) 0.28

Reserves & Surplus

899.34

(Base year)0.26

1,112.68

(23.72) 0.28

1,113.29

(23.78) 0.29

1,114.89

(23.96) 0.31

1,151.82

(28.07) 0.28

Shareholders’ Funds

23,413.92

(Base year)6.79

45,357.53

(93.72) 11.35

48,419.73

(106.79) 12.77

50,503.48

(115.69) 13.90

53,938.82

(130.37) 13.28

Loan Funds 24,663.26

(Base year)7.16

46,820.21

(89.83) 11.71

49,883.02

(102.25) 13.15

51,618.37

(109.29) 14.20

55,090.93

(123.37) 13.56

Deposits 230,510.19

(Base year)66.88

244,431.05

(6.04) 61.14

218,347.82

(-5.28) 57.57

202,016.60

(-12.37) 55.59

225,602.11

(-2.13) 55.54

Borrowings 51,256.03

(Base year)14.87

65,648.43

(28.08) 16.42

67,323.69

(31.34) 17.75

94,263.57

(83.90) 25.94

109,554.28

(113.74) 26.97

Total Debt 281,766.22

(Base year)81.75

310,079.48

(10.04) 77.56

285,671.51

(1.38) 75.32

296,280.17

(5.15) 81.53

335,156.39

(18.95) 82.50

Total Liabilities

344,658.12

(Base year)100.00

399,795.08

(15.99) 100.00

379,300.96

(10.05) 100.00

363,399.72

(5.43) 100.00

406,233.67

(17.86) 100.00

( ) indicates trend percentage

Source: Computed from Annual Report of ICICI Bank Ltd

94

Table III:3 excemplifies the liability componets of the ICICI bank for the last

five years, with regard to share capital Rs.1249.3 crores which 0.36 percent of the

total liability of 2006-07, which is increased to Rs.1151.2 crores with the proportion

of total liability with 0.28 percent of the total liability ,whreaas the overall decrease

of the amount is 7.8 percent,Reserves and surplus was Rs.899.34 crores in 2006 with

the percent of 0.26 percent of the total assets, it has increased to Rs.1151.82 crores in

2010-11 with the proprtion of 0.28 percent with respect to the laibility of the

respective year, with the increase of 130.4 percent over the period of time, with reagrd

to the shareholders fund of the bank in 2006-07 the amonut was Rs.23413.92 crores

which constitutes 6.79 percent of the total liability which has increased to

Rs.53938.82 crores which constitutes around 13 percent of the total liability for the

year 2010-11 with the increase of 230 percent of the increase over the years, with

respect to the deposits of the amount was Rs.230510 crores constitutes 66.88 percent

of the total liability on 2006-07, which is Rs.225602.1 crores in 2010-11 which

constitutes 55 percent of the overall liability of that respective year with the decrease

of 2.1 percent over the years.

95

The total debt for the year 2006-07 was Rs.281766 crores which constitutes

around 81.75 percent of the total liabilty , which is Rs.335156.4crores in 2010-11

which constitutes 82 percent of the overall liability of that respective year with the

increase of 18.9 percent over the years,The borrowings for the year 2006-07 was

Rs.51256crores constututes 14.87 percent of the total assets which is

Rs.109554.3crores in 2010-11 which constitutes 26 percent of the overall assets of

that respective year with the increase of 113.7 percent over the years, Loan funds of

the year 2006-07 was Rs.24663.26 crores constitutes around 7.16 percent of the total

assets which is Rs.55090.93 crores in 2010-11.

Which constitutes 13 percent of the overall liability of that respective year

with the increase of 23.37 percent over the years,Thus the liability of the ICICI bank

has shown poitive developemnt over the period of time and there has been very

substaianl reductions in total debt, and the loan funds which implies that the financial

performance are positive in the sameline the increase in the shareholders fund is the

postive sign even though it increases liability of the bank. That negative fluctuations

have not taken place during the last five years, it clearly indicates the financial

stability of the bank.

The table also indicates the trend of the various componets of the Liability of

the ICICI bank during the period from 2006-07 to 2010-11, with regard to Share Capital

there has been significant increase from 2006-07 to 2007-08 with the increase amount

17.07 percent, for the financial 2008-09 it records the trend with 17.12 percent from

the pervious year,for the year 2009-10 again the trend shows negative level record the

decline of -10.77 percent and for the year 2010-11 similar trend emerged.

96

But in bit slower pace from the previous year with the percentage decrease

around -7.81 percent,with respect to the Reserves & Surplus domain it was found

that the there has been significant increase from 2006-07 to 2007-08 with the increase

amount 23.72 percent, for the financial 2008-09 it records the trend with 23.78

percent from the pervious year,for the year 2009-10 again the trend shows 23.96

percent increase and for the year 2010-11 similar trend emerged but in bit slower

pace from the pervious year with the percentage increase around 28.07 percent.with

respect to the Shareholders’ Funds domain it was found that the there has been

significant increase from 2006-07 to 2007-08 with the increase amount 93.72 percent,

for the financial 2008-09 it records the trend with 106.79 percent from the pervious

year,for the year 2009-10 again the trend shows 115.69 percent increase and for the

year 2010-11 similar trend emerged but in bit slower pace from the previous year with

the percentage increase around 130.37 percent.with regard to the Loan Funds arena it

was found that the there has been significant increase from 2006-07 to 2007-08 with

the increase amount 89.83 percent, for the financial 2008-09 it records the trend with

102.25 percent from the pervious year,for the year 2009-10 again the trend shows

109.29 percent increase and for the year 2010-11 similar trend emerged but in bit

slower pace from the pervious year with the percentage increase around 123.37

percent.with regard to Deposits there has been significant increase from 2006-07 to

2007-08 with the increase amount 6.04 percent, for the financial 2008-09 it records

the neagtive trend with -5.28 percent decline from the pervious year,for the year

2009-10 again the trend shows negative level record the decline of -12.37 percent and

for the year 2010-11 similar trend emerged but in bit slower pace from the pervious

year with the percentage decrease around -2.13 percent.

97

With regard to the Borrowings it was found that the there has been significant

increase from 2006-07 to 2007-08 with the increase amount 28.08 percent, for the

financial 2008-09 it records the trend with 31.34 percent from the pervious year,for

the year 2009-10 again the trend shows 83.90 percent increase and for the year 2010-

11 similar trend emerged but in bit slower pace from the previous year with the

percentage increase around 113.74 percent.with regard to the Total Debt it was found

that the there has been significant increase from 2006-07 to 2007-08 with the increase

amount 10.04 percent, for the financial 2008-09 it records the trend with 1.38 percent

from the pervious year,for the year 2009-10 again the trend shows 5.15 percent

increase and for the year 2010-11 similar trend emerged but in bit slower pace from

the previous year with the percentage increase around 18.95 percent.with regard to the

Total Liabilities it was found that the there has been significant increase from 2006-07 to

2007-08 with the increase amount 15.99 percent, for the financial 2008-09 it records

the trend with 10.05 percent from the pervious year,for the year 2009-10 again the

trend shows 5.43 percent increase and for the year 2010-11 similar trend emerged but

in bit slower pace from the previous year with the percentage increase around 17.86

percent.

98

TABLE III: 4

Liabilities of the ICICI bank from 2011-12 to 2015-16

(Rs.in crores)

( ) indicates trend percentage

Source: Computed based on Annual Report of ICICI Bank Ltd

2011-12 % 2012-13 % 2013-14 % 2014-15 % 2015-16 %

Share Capital 1192.134

(Base year)0.28

1243.395

(4.29) 0.26

1280.697

(7.42) 0.21

1319.118

(10.65) 0.24

1358.692

(13.97) 0.28

Reserves & Surplus

1195.589

(Base year)0.28

1241.022

(3.80) 0.28

1278.252

(6.91) 0.29

1316.6

(10.12) 0.26

1356.098

(13.43) 0.23

Shareholders’ Funds

55988.5

(Base year)12.88

58284.02

(4.09) 12.90

60032.54

(7.22) 12.78

61833.52

(10.44) 12.53

63688.53

(13.75) 12.35

Loan Funds 57239.48

(Base year)13.16

59300.1

(3.60) 13.13

61079.1

(6.70) 13.01

62911.47

(9.90) 12.75

64798.82

(13.21) 12.57

Deposits 235077.4

(Base year)

54.06

242129.7

(2.99) 53.62

249393.6

(6.08) 53.13

256875.4

(9.27) 52.07

264581.7

(12.55) 51.33

Borrowings 84075.21

(Base year)19.33

89356.67

(6.28) 19.78

96367.52

(14.62) 20.53

109068.90

(29.72) 22.10

119638.67

(42.29) 23.21

Total Debt 319152.61

(Base year)73.40

330586.37

(3.58) 73.21

345737.12

(8.33) 73.65

365944.30

(14.66) 74.17

384220.37

(20.38) 74.54

Total Liabilities

434768.3

(Base year)100.00

451554.9

(3.86) 100.00

469431.7

(7.97) 100.00

493325

(13.46) 100.00

515422.5

(18.55) 100.00

99

Table III:4 excemplifies the liability components of the ICICI bank for the

next five years,the forecasted values are hypothetical and subjected to be sensitive to

the changes in the bank operation and tranaction but still it shows reasonable clarity

over the future trend of the bank financial position, with regard to Share Capital with

RBI Rs.1192.134 crores which 0.28 percent of the total liability of 2011-12, which

could be increased to Rs.1358.69 crores in 2015-16 with the increase in the

proportion of total liability with 0.28 percent of the total liability, whereas the overall

increase of the amount is 13.97 percent, Balance with banks, Reserves & Surplus

would be Rs.1195.58 crores in 2011-12 with the percent of 0.28 percent of the total

liability, it would be increased to Rs.1356.09 crores in 2015-16 with the 0.23

percent from the overall liabilities of the year,and 13.42 percent of increase over the

period of time, with reagrd to the Shareholders Funds of the bank in 2011-12 the

amonut would be Rs.55988.5 crores which constitutes 12.88 percent of the total

liability which would be increased to Rs.63688.53 crores which constututes around

12.35 percent of the total liability for the year 2015-16.

100

With respect to Deposits the amount was Rs.235077.4 crores which would

constitutes 54.06 percent of the total liability on 2011-12, which would be

Rs.264581.7 crores in 2015-16 which constitutes 51.33 percent of the overall liability

of that respective year with the increase of 12.5 percent over the years,The Total Debt

for the year 2011-12 would be Rs.348897.8 crores which constitutes around 73.40

percent of the total liabilities, which is Rs.395737.6 crores in 2015-16 which

constitutes 74.54 percent of the overall liabilities of that respective year with the

increase of 13.42 percent over the years,The Borrowings for the year 2011-12 would

be Rs.84075.21 crores constututes 19.33 percent of the total liabilities.

Which would be Rs.119638.67 crores in 2015-16 which constitutes 23.21

percent of the overall liabilities of that respective year with the increase of 42.29

percent over the years, Loan Funds of the year 2011-12 would be Rs.57239.48 crores

constitutes around 13.16 percent of the total liabilities which would be Rs.64798.82

crores in 2015-16 which constitutes 12.57 percent of the overall liabilities of that

respective year with the increase of 13.20 percent over the years. Thus the liabilities

of the ICICI bank shows positive developemnt over the period of time and there

would be no negative fluctuations during the next five years, it could be inferred

from the prediction that the liabilities of the ICICI bank would diminish subtantially

and clearly indicates the financial stability of the bank.

101

The table also indicates the forcasting trend of the various componets of the

Liability of the ICICI bank during the period from 2011-12- 2015-16, with regard to

Share Capital there would be significant increase from 2011-12 to 2012-13 with the

increase amount 4.29 percent, same trend persists during the financial 2013-14 it

records the trend with 7.42 percent increase from the pervious year,for the year 2014-

15 hike with percent 10.65, similar trend emerged but from the previous year with the

percentage increase around 13.97 percent, with regard to Reserves & Surplus there

would be significant increase from 2011-12 to 2012-13 with the increase amount 3.80

percent, same trend persists during the financial 2013-14 it records the trend with 6.91

percent increase from the pervious year,for the year 2014-15 hike with percent 10.12,

similar trend emerged but from the previous year with the percentage increase around

13.43 percent,with regard to Shareholders’ Funds there would be significant increase

from 2011-12 to 2012-13 with the increase amount 4.09 percent, same trend persists

during the financial 2013-14 it records the trend with 7.22 percent increase from the

pervious year,for the year 2014-15 hike with percent 10.44, similar trend emerged but

from the previous year with the percentage increase around 13.75 percent,with regard

to Loan Funds there would be significant increase from 2011-12 to 2012-13 with the

increase amount 3.60 percent, same trend persists during the financial 2013-14 it

records the trend with 6.70 percent increase from the pervious year,for the year 2014-

15 hike with percent 9.90, similar trend emerged but from the previous year with the

percentage increase around 13.21percent,with respect to Deposits there would be

significant increase from 2011-12 to 2012-13 with the increase amount 2.99 percent.

102

Same trend persists during the financial 2013-14 it records the trend with 6.08

percent increase from the previous year, for the year 2014-15 hike with percent 9.27,

similar trend emerged but from the previous year with the percentage increase around

12.55 percent,with respect to Borrowings there would be significant increase from

2011-12 to 2012-13 with the increase amount 6.28 percent, same trend persists during

the financial 2013-14 it records the trend with 14.62 percent decline from the pervious

year,for the year 2014-15 hike with percent 29.72, similar trend emerged but from the

previous year with the percentage increase around 42.29 percent,with respect to Total

Debt there would be significant increase from 2011-12 to 2012-13 with the increase

amount 3.58 percent, same trend persists during the financial 2013-14 it records the

trend with 8.33 percent decline from the pervious year,for the year 2014-15 hike with

percent 14.66, similar trend emerged but from the previous year with the percentage

increase around 20.32 percent,with regard to Total Liabilities there would be

significant increase from 2011-12 to 2012-13 with the increase amount 3.68 percent,

same trend persists during the financial 2013-14 it records the trend with 7.97 percent

decline from the pervious year,for the year 2014-15 hike with percent 13.46, similar

trend emerged but from the previous year with the percentage increase around 18.55

percent

103

CHAPTER - IV

ANALYSIS OF CUSTOMER SATISFACTION TOWARDS THE

SERVICES OF ICICI BANK LTD.

Financial services are produced and delivered and consumed instantaneously in

the bank. In this process the customer is treated as the focal point around which the whole

banking services are developed. Production and consumption of services thus becomes a

social event where the interactions of emotions, values, perceptions, attitudes

expectations and other human traits of both the customer and banker takes place. The

interactions between the customer and his banker can be many and varied and they can

last over several years or just a few days, till the customer receives the end product of the

desired service. In the entire process of such interaction, bow the bank treats the customer

and the means and methods to satisfy the customer form the core of customer service.

The difference between customer’s perception and expectation can be termed as

customer satisfaction. If the perception of the service received exceeds the level of

satisfaction, the customer rates the service as quality service. When there is equality of

perception and satisfaction, the customer rates the service as satisfactory. And if the

perception is lower than the level of expectations, he will be disappointed and therefore

becomes a dissatisfied customer.

In the area of customer service expectations and demands of the customers

generally rise at a much faster pace than banks are equipped to deal with. That is why

even in technologically advanced countries the issue of customer service receives wider

attention and criticism.

104

Caring for the customer is the sine qua non for operational efficiency in a service

industry like banking. Customer satisfaction is a subjective and dynamic issue, but in any

service organization, there is core as well as enhancing elements. The core elements relate

to courtesy, speed of delivery, accuracy and efficiency, while enhancing elements arc

innovation and ability to meet customer expectations fully. The core elements are critical

for the survival of the organization while the enhancing elements provide value - addition

and both are inter-dependent.

Thus the service quality is a multi-faceted concept and needs to be defined in its

entirety based on customer research. In the RATER model developed by Zenithal,

Parasurare and Berry, the parameters used by customers in defining quality of service was

given. They observed that reliability, assurance, tangibility, empathy and responsiveness

are the parameters of perception of customers.

As noted earlier quality service takes place in the personal interaction between

front - line employees who deliver the service and the customer who experiences the so

called “moments of truth”. These critical moments of truth determine whether a customer

stays with the bank and uses more of its services or (leaves it for a competitor).

Evaluation of quality of customer-employee rapport is important to maintain a

consistently high level of customer service.

The multifarious responsibilities thrust upon banks since the inception of the

privates banks in India , coupled with the entry of new types of clients who were hitherto

out of reach of banks, the subject of customer service has gained crucial importance in

Indian banks. With the shift from ‘class banking’ to ‘mass banking’, the much vaunted

objectives of social justice and balanced growth have been achieved but with a price in

the form of deteriorating customer service.

105

The Committee on the Functioning of Banks ‘ observed that delays in operation

and the general deterioration in efficiency in banks were the direct result of the dilution of

control resulting from the wide spread of branches and the communication gaps between

head office and branches.

Series of committees and commissions were appointed by the Reserve Bank of

India to examine the pros and cons of customer service and measures to improve the

quality of service. Despite all these efforts wide spread discontentment exists in this area

even after implementation of very many recommendations of the study groups.

Customer service is a derivative of a mix of human reactions influenced by a host

of .stimulus emanating from within and outside the organization. Any improvement in

customer service cannot be attained in isolation, unless the entire gamut of factors

affecting it is taken in to account and managed properly’. Quality of service does not

improve unless it is measured. In the present day context of intense competition it is

imperative that the banks continually measure the level of satisfaction of customers and

assess the quality of service being rendered by them.

In this chapter an attempt is made to assess the extent of customer satisfaction

towards the services of selected branches of three banks from different sectors. As stated

in the objectives the satisfaction of respondents were compared bank - wise, segment wise

and spatially.

The idea of customer satisfaction is to provide the customer, what he wants, when

he wants, where he wants and how he wants. In order to survive in the present day world

of competition, the banks will have to formulate marketing strategies in a way to woo the

customers towards them.

106

Level of customer satisfaction is becoming one of the major targets in the hands of

banks to increase their market share. The tremendous boom in the financial services'

sector which bas rocked the world since the last fifteen years or so, as had its impact upon

the Indian economy too. The deregulation in this sector has tended to reduce structural

barriers to competition in domestic markets by abolishing interest rate ceilings on

deposits and lending by financial intermediaries. Today, the concept of banking is not

merely, the function of accepting deposits, lending and money transmissions. The banks

have now diversified into insurance, broking, advisory services, merchant banking,

factoring and almost every other legitimate financial activity.

Reasons for Satisfaction / Dissatisfaction Considered

1. Services charges

2. Time taken for opening an account

3. Speed of withdrawals

4. Speed of depositing money

5. Decor of the Bank

6. Interest on Savings / longs.

7. Computerization in the Bank

8. Bank's innovativeness in introducing new services

9. Bank's parking place

10. Atmosphere in the Bank

11. Bank's publications regarding services and performance

12. Banker - Customer meets

13. Attitude of the staff towards the customer

14. Location of the Bank

15. Knowledge of the bank employees regarding bank services

16. Efficiency of the staff

17. Availability of the staff at their respective counters

107

18. Layout of the Bank

19. Sitting facility in the Bank

20. Bank's advertising regarding services.

The goal of effective management of supply and demand and enhanced

productivity can only be achieved by providing customers with a more consistent and

superior level of service quality. While saying so it is absolutely important for a bank

especially to go in for more and more latest channels to serve the customers effectively

and offer them convenience at their doorsteps by way of online banking, door services,

phone banking and more number of ATMs. Even though the cost of introducing these

innovative services in the initial stages is high the benefits accruing out of these will

offset the expenses in a short period of time. More than that, when bank today are fighting

with one another to lure the customers, it is becoming a 'necessity for a bank to go in for

these measures at the earliest rather than becoming "a me too player" after everybody else

offers them.

These newer channels will definitely offer the customer convenience and

increased productivity, thereby inducing the customer to stay with the bank forever. A

Bank may have gone in for very high level of customer relationship management program

but if the watchman at the bank is rude in his encounters with the customers then all the

money spent on the high end CRM packages is likely to be washed out completely. So it

is absolutely important that training is given to all the staff starting from the office boy to

the Managing Director on Customer Relationship In the case of a loyal customer,

otherwise referred to as the "true customer", the bank has got to identify him and ensure

that such persons are given preferential treatment. A software has come in banking

industry by which the employee or the manager will be intimated as soon as a loyal

customer enters either the ATM or the online channel or the phone banking by way of a

108

flash on the computer screen giving all the information about the customer and the

purpose or his visit so that the employee concerned can serve the customer even before

the customer put in this query.

For doing this the bank should educate its employees on the 20: 80: 30 rules,

which says that 80 percent of the profits come from 20 percent of the customers and the

80 percent profit which comes from 20 percent customers is spent on 30 percent of

unprofitable customers. If the bank is to make increased profits then it should give

priority to its 20 percent profitable customers and stop spending money or the 30 percent

unprofitable customers. This can be done by properly studying the customers financial

and family background, their purchase patterns over a' period of time and estimating their

future potential.

The study, "Customer Satisfaction in Online Banking : An Exercise in

Relationship Management" by "Gomez" found .that online bankers have an-average

satisfaction level of 5.1 on a scale of 1 to 7, with mature online banking consumers (over

age 55) and those who use the Internet as their primary means of banking reporting higher

levels of satisfaction. "Online bankers who perform the majority of their banking tasks'

via the Internet are realizing the time-savings and at-your-service availability of

information that the Internet deliver, “said Moriah Campbell - Holt, lead research analysis

for Gomez who co - authored the study.

The parameters of service quality such as banking habits, speed and efficiency of

transactions, behavioral aspects of employees, customer amenities, credit related services,

technical aspects, service charges and pricing were considered as major items of

observation.

109

In order to have an objective and scientific assessment of customer satisfaction,

the customer Satisfaction at the various dimension comprehensively analyzed from the

data collected.

Demographic, Social and Economic Profile of the Respondents

There are two sets of variables, which help an individual to occupy a particular

social position. The first set of variables is called ‘ascriptive’, which includes caste,

kinship relationships, family relationships, family occupation, income etc., The other set

is the ‘achieved’ which encompasses the individual attainment through the efforts like

education, occupational skills, economic returns etc.,

In addition to these two sets of variables, the ‘life experiences’ of an individual

also influence his or her attitude and behavior pattern. Coupled with the ‘life experience

factor’, the ‘ascriptive’ and ‘achieved’ variables would get transferred into socio-

economic variables and help to determine the social and economic status of the borrowers

in the community.

Gender

One significant universally accepted criterion of development is gender. There is a

clear distinction made in the development literature between sex and gender. Sex relates

to the biological differences between male and female, whereas gender relates to the roles

assigned to male and female in the society. Thus, gender is a socio-economic variable

involving roles, responsibilities, constraints, opportunities and needs of males and female

in an economy.

110

TABLE IV: 1

Gender wise classification of respondent

Gender No. of Respondent Percentage to Total

Male 241 68.90

Female 109 31.10

Total 350 100

Source: Computed from primary data

Table IV:1 gives the gender wise distribution of the respondents. It could be seen

from the table that 68.9 percent of the respondents were male and 31.1 percent were

woman. In short, majority of the respondents were men in the study area.

111

Age-wise classification

Age as an important demographic variable not only determines an individual’s

physical and mental maturity but also depicts his or her life experiences

TABLE IV: 2

Age wise Distribution of the Respondents

Age Group No. of Respondent Percentage to Total

21-30 132 37.70

31-40 100 28.60

41-50 76 21.70

50 and above 42 12.00

Total 350 100

Source: Computed from primary data

112

Table IV: 2 shows that 37.7 percent of the respondents fall between the age group

of 21-30 years, 28.6 percent of the respondents were in the age group of 31-40 years, 21.7

percent of the respondents were between 41-50 years, and the remaining 12 percent of the

respondents were above 50 years. The above analysis leads us to the inference that

younger generation are far away from the orbit of banks. In this part of the country

youths normally get employed at the age of 21-30. Their incomes during this period do

match with their expenses and many are interested to open bank accounts. The results

revealed that the passive role of banks in designing appropriate schemes to attract them is

reflected here. It is an accepted fact that the younger generation below 40 years constitute

more major chunk of the customer, the low percentage of senior citizens also needs

proper attention in the sense that banks cannot ignore them as their proportion to total

population. At the outset younger age people preferred to have account in ICICI bank.

Educational wise classification of the Respondents

Whether literacy is synonymous with education in the developing countries and

with reference to the weaker sections is a question confronts the social scientists. Viewed

as synonymous, education not only widens the knowledge but also helps a person to make

use of rational and scientific approach to solve problems. Education has positive impact

on social life and the quality of life; and vice versa with illiteracy; the educated borrowers

have a tendency to utilize their loans on productive and specified purpose

113

TABLE IV: 3

Education - wise classification of Respondent

Education No. of Respondent Percentage to Total

Illiterate 23 6.60

S.S.L.C 16 4.60

HSC 9 2.60

Degree 81 23.10

PG 129 36.90

Professional 92 26.30

Total 350 100

Source: Computed from primary data

114

Table IV: 3 depicted the education level of sample respondents. As a whole 6.6

percent of respondents were illiterate, 23.1 percent graduates, 36.9 percent post graduates

and 26.3 percent are professionals. ICICI had an edge in the number of post - graduates

and professionals. The percentage of S.S.L.C and H.S.C level educated respondents were

scanty with 4.6and 2.6 percent respectively. It is interesting to note that, when the

respondents from secondary level onwards put together had 80 percent respondents. The

Table clearly indicated that 83 percent of the respondents had secondary level education

and above. As far as bank marketing is concerned, the level of education has a direct

bearing on the efforts of banks of communicate and convince the customers about their

schemes and services. It is easier for them to create awareness among the target groups

of customers regarding their services in the same line consumers are also more aware

about the service delivery of the banks, it also interesting to note the higher level of

educated customers would actively involved in the process. In this respect the ICICI bank

have a distinct advantage over banks in the rest of the country.

115

Occupation

Occupation determines the social standing of a family. This is due to the fact that

the different occupations decide the status as also the varying privileges and economic

benefits. A study on the occupational pattern in rural areas throws light on the number of

people who depend on agriculture and those on non-agriculture and both. Agriculture is a

labor-intensive enterprise. Though agriculture provides work for most of the people, non-

agricultural activities are important supplementary sources of income for the rural

households. A shortage of remunerative work opportunities of the farm during the slack

season might increase the poverty of those whose holdings are too small or too

unproductive to provide an adequate livelihood.

TABLE IV: 4

Occupation - Wise Classification of Respondents

Occupation No. of

Respondent

Percentage to

Total

Government 12 3.40

Private 132 37.70

Self -employed 145 41.40

Independent professionals 31 8.90

Students 4 1.10

Housewives 26 7.40

Total 350 100

Source: Computed from primary data

116

Table IV: 4 shows the occupation - wise distribution of sample respondents. The

entire sample population was divided in to six occupational groups Govt, Private, Self

employed, Independent professional, Students, and Housewives. It can be observed that

Gove employee’s class formed 3.4 percent; Private employees constitute 37.7, business

group represented 41.4 percent, independent professionals constitute 8.9, Housewives

represented 7.4, students have got 1.1 percent representation. Occupation wise analysis

showed that on an average 79 percent of class came in the case of business and private

employees were of this category. It could be inferred that the business people and the

private employees are more inclined towards ICICI bank’s operation. Although,

customers were selected at random, their occupational distribution was found to be of a

representative nature considering the location of the branches and certain peculiarities of

its area of operation. It can be noted that southern region had comparatively higher

number of business groups than two other branches. This may be due to the high

concentration of business units in its operational area. Similarly middle region had the

highest percentage of salaried groups because of its proximity to the IT corridors and

other government offices.

117

TABLE IV: 5

Income wise classification of Respondent

Income Category No. of Respondent Percentage to Total

up to Rs.10,000 6 1.70

Rs.10,001 to Rs.20,000 71 20.30

Rs.20,001 to Rs.30,000 108 30.90

Rs.30,001- Rs.40,000 87 24.90

Rs.40,000 to Rs.50,000 51 14.60

Rs.50,001 and above 27 7.70

Total 350 100

Source: Computed from primary data

118

The distribution of respondents on the basis of their annual income is given in

Table IV: 5 It can be seen that 20.3 percent of the respondents were having monthly

income between Rs. 20,001 to Rs.30,000, 30.9 and 24.9 percent of the respondents were

having the monthly income between Rs.30,001 to Rs.40,000 and Rs.40,001 to Rs.50,000

respectively, 7.7 percent of the respondents having the monthly income of Rs.50,000 and

above per month. As expected the business groups and private employees dominated the

higher income category in all banks. The salaried groups were nearly half of the business

group in higher income class. But very few Govt. employees came under the high

income group. It could be inferred from the above table that the higher income group and

upper middle income group prefer to choose the ICICI Bank Ltd.

Marital Status

In Indian society, marriage is supposed to be a religious obligation. In the social

context, it is the prelude to the family formation, expansion or even bifurcation. After

marriage, there is a transition in the status of men and women with attendant rights and

obligations.

119

TABLE IV: 6

Marital Status of Respondent

Marital Status No. of Respondent Percentage to Total

Married 227 64.90

Unmarried 123 35.10

Total 350 100

Source: Computed from primary data

Table IV: 6 expressed the marital status wise distribution of the respondents. 64.9

percent of the respondents were married. 35.1 of the respondents were unmarried.

Therefore, it was found that majority of the respondents were married.

120

Banking Habits

Having seen the general information about sample respondents the study now

proceeds to examine their banking habits, covering the types of accounts maintained,

duration of these accounts, reasons for selecting the branch and the necessity of

somebody known in the branch for expending their transitions.

TABLE IV: 7

Who Motivated to Open the Account?

Motivator No. of Respondent Percentage to Total

Self 93 26.60

Family members 36 10.30

Friends 152 43.40

Advertisement 49 14.00

Office tie-up 20 5.70

Total 350 100

Source: Computed from primary data

121

Table IV:7 excemplifies the information about the person who motivated to open

Account in ICICI bank, 26.6 percent of the people opened the Account on their own

interest,43.4 percent of the people got influence from their friends to open the Account,

14 percent of the respondents taken the decision on the basis of the Advertisement, 10.3

percent and 5.7 percent of the respondents have opened the Account by the motivation of

the family members and the office tie –up respectively.It could be infered from the above

table that friend and the self motivation are the prominet factors influence to open the

Account nearly 71 percent of the people got influence from these sources.

TABLE IV: 8

Types of accounts maintained

Types of accounts No. of Respondent Percentage to Total

Savings Account 216 61.70

Current Account 62 17.70

Fixed Deposit 58 16.60

Recurring Deposit 14 4.00

Total 350 100

Source: Computed from primary data

122

It can be observed from Table IV: 8 that savings deposits accounts formed 61.7

percent of the accounts maintained by the sample respondents, current deposits

constituted 17.7 percent fixed deposits were around 16.6 percent whereas Recurring

deposit formed only less than 4 percent. The numbers of savings deposit accounts were

more among the respondents, the southern branches had a slight superiority in fixed

deposits and in rest of the branches savings and current Account constitute higher

numbers. When the salaried group dominated in fixed deposit and savings deposits

accounts, current account and loan account were operated mostly by business group. The

above analysis reveals a normal representation of the nature of accounts maintained by

sample respondents. Private employees group are more interested in Loan accounts and

savings Account and the current Account maintained by the commercialized occupation

in the study area. Another important feature is the poor demand for recurring deposit

accounts, which is generally preferred by salaried class. The increasing influence of chit

fund business and its popularity in the area may be a proper explanation of this situation.

123

TABLE IV: 9

Duration of Accounts Maintained

Duration No. of Respondent Percentage to Total

1-3 yrs 108 30.90

3-5 yrs 129 36.90

5-10 yrs 83 23.70

10 yrs and above 30 8.60

Total 350 100

Source: Computed from primary data

Table IV: 9 illustrates the duration of the accounts maintained in ICICI bank by

the respondents, 30.9 percent of the respondents maintaining the account between 1 year

to 3 years, 36.9 percent of the people maintaining for 3 to 5 years, 23.7 percent of the

respondents keeping the Account for 5 to 10 years and 8.6 percent of the respondents

maintaining more than 10 years. The salaried groups and business people are maintaining

more long duration accounts.

124

It can be observed those business groups were mostly operating shorter duration

accounts in five of the sample banks. Since the duration of the accounts have its

significance on the relationship between the banker and the customer, the table is more

relevant to the study. It is an accepted fact that retention of customer is easier and less

expensive than winning a new customer. As the number of customers of longer duration

exists, it is an indication of the loyalty and cordial relationship between the banker and

the customer

TABLE IV: 10

Reasons for selecting the branch/bank.

Reasons No. of

Respondent

Percentage to

Total

Near to the office 78 22.30

Quality of service 150 42.90

Popularity of the Bank 74 21.10

Friends and Relatives are working 48 13.70

Total 350 100

Source: Computed from primary data

125

Table IV: 10 depicted that 22.3 percent of the customers preferred their bank for

convenience i.e., proximity to their office or residence; 42.9 percent on quality of service,

21.1 percent on popularity of the branch and another 13.7 percent selected the branch

because of their relatives or friends working there. It could be observed that the highest

preference was given to Quality of service and the proximity as the second important

reason for selecting the branch. From the analysis it can be safely inferred that Quality of

the service is the most important factor influencing the selection of ICICI, followed by

proximity and convenience and popularity of the branches. It was observed that some

respondents of ICICI branches reported that they selected the branch either for receipt of

salary or for payment of housing loan. It may be recalled that the ICICI had more long

duration accounts and this may be one of the reasons for it.

126

TABLE IV: 11

Opinion about the banking Environment

Source: Computed from primary data

Table IV: 11 illustrates the respondents opinion on the environment of the bank

48.9 percent of the respondents revealed it is good, 35.4 percent of the respondents

viewed that it is very good, 8 percent considered it needs to be improved more,4.6 percent

of the respondents have not registered any opinion only 3.1 percent of the respondents

viewed that it is not up to the mark, It could inferred from the above empirical evidence

that people generally felt comfortable of the environment exists in ICICI branches which

could be observed from the empirical evidence that 85 percent of the people rated the

status of environment is good.

Opinion of Respondent No. of Respondent Percentage to Total

Very Good 124 35.40

Good 171 48.90

Undecided 16 4.60

Not up to the mark 11 3.10

Must be Improved 28 8.00

Total 350 100

127

TABLE IV: 12

Frequency of receiving personalized service

Opinion of Respondent No. of Respondent Percentage to Total

Always 136 38.90

Often 152 43.40

No opinion 14 4.00

Sometimes 14 4.00

Rarely 34 9.70

Total 350 100

Source: Computed from primary data

128

Table IV:12 excemplifies the respondents opinion on the frequency of

personalized service received during tranactions, 38.9 percent of the respondents revealed

that they always receive the personal attention in every tranactions, 43.4 percent of the

people statued that they often recive the personalized service from the bankers, 4 percent

and 9.7 percent are felt sometimes and rarely respectively, 4 percent of the people didn’t

register any opinion, it could be noted that the nearly 84 percent of the people receive the

personalised service from the bank employees, it is the good provision of the serive the

customers. It is a common practice among customers to seek the assistance of bank staff

in expediting their transactions since the clerks and subordinate staff has more interfaces

with customers, their popularity may be related to their role as immediate problem

solving authorities.

Physical facilities

Adequate physical amenities provided by the bank to its customers give a sense of

satisfaction. Physical facilities includes the layout of the bank providing sufficient space

for staff and customers, adequate seating arrangements, provision of fresh air, lighting ,

drinking water, supply of reading materials, toilet facilities, parking space for vehicles

etc. The Working Group on Customer Services strongly recommended that basic

amenities for customers should be provided at all offices. But there were complaints

voiced by customers in many parts of the country for tack of even ordinary and basic

amenities. Where customer transactions are delayed, the least should be done is to make

the waiting time comfortable. So the creation of good infrastructure pleasing to the eye of

the customer must be made available to him. In this respect the study tried to assess the

level of satisfaction of customers regarding the convenience of working time and

customer amenities available at their branches.

129

TABLE IV: 13

Physical facilities of ICICI bank branch which deserved appreciation of the

respondents

Physical facilities No. of Respondent Percentage to Total

Ambience 38 10.90

Parking 132 37.70

Music 18 5.10

Lounge 99 28.30

Water 17 4.90

Coffee shop 15 4.30

Air-conditioned 31 8.90

Total 350 100

Source: Computed from primary data

130

Table IV:13 exemplifies the appreciations of the respondents on the basic

amenities provided by the ICICI bank 10.9 percent of the respondents like the ambience

very much, 37.7 percent of the people appreciated the parking facility provided in the

thickly populated city, 28.3 percent of the people appreciated the lounge provided in the

branches, 4.9 percent appreciated the quality of water provision, 8.9 percent of the people

like the Air-conditioned space. In the same line almost 68 percent of the people like the

parking as well as ambience together, 89 percent of the people like water facility, Air-

conditioned, Reading materials provided together. 5.1 percent respondent for music and

4.3 percent respondent for coffee shop. It can be inferred from the above that while banks

were spending heavily on modifying branches to satisfy the requirement of the customers.

It is clear that banks are giving proper attention in supplying sufficient amenities to

different customer groups. Respondents also viewed that the significant work space for

free movement of staff and customers is the basic requirement of a good branch layout.

Banking industry is a service industry and the layout of the branch should serve its

purpose. The size of the banking hall, its ventilation and lighting arrangements are all

important in this regard as well.

131

TABLE IV: 14

Frequency of Visit to Branches

Duration No. of Respondent Percentage to Total

Once in a week 131 37.40

once in Fortnight 98 28.00

Once in two days 56 16.00

Daily 65 18.60

Total 350 100

Source: Computed from primary data

Usually a customer may visit the branch personally or he may do his banking

business through agents. Table IV: 14 exhibits the frequency of personal visit of sample

respondents to their branch. The Table clearly showed that 37.4 percent of respondents

visited their branches once in a week, 28 percent visits once in fortnight, 16 percent use to

visit once in two days, 18.6 percent of the respondents visit daily to the branches. Nearly

65 percent visited the branch less than once a week; the above analysis prompted us to

check the monthly visited of respondents.

132

It was revealed that 75 percent of respondents visit their banks less than 3 times a

month. The personal visit of customers to their branches has an important relationship

with customer satisfaction. It not only gives the banker an opportunity for direct

interaction but also a chance to expose the varied services to the customer. If there is a

breakdown in these interactions it may adversely affect the image of the banker but in the

changing context the innovative technology enable the customer to make transaction

without visiting the branches in person still the transaction have been taking place

through IT development. It can be inferred from the table that at least once a week the

sample banks are getting their customers in person which is sufficient for building up

good relationship. The introduction of home banking, tele- banking etc enhances the

customer relationship into another dimension.

133

TABLE IV: 15

Opinion of the respondents about the working Hours of the bank

Opinion of

Respondent

Satisfied with present

working Hrs Want Sunday banking Favour to 24*7 banking

No. of

Respondent

Percentage

to Total

No. of

Respondent

Percentage

to Total

No. of

Respondent

Percentage

to Total

Yes 343 98.00 298 85.10 304 86.90

No 7 2.00 52 14.90 46 13.10

Total 350 100 350 100 350 100

Source: Computed from primary data

134

Table IV:15 illustrates the opinion of the working hours of the bank, 98 percent of

the people have satisfied with the current working hours of the bank, merely 2 percent of

the respondents did not feel satisfied with the working hours, 85.1 percent of the

respondents needs Sunday banking, 14.9 percent felt that there is no need for Sunday

banking, 86.9 percent of the respondents opined that they are favour to 24* 7 banking,

and 13, 1 percent are not favour to 24* 7 banking. It could be inferred from the above

empirical evidence that respondents are very much satisfied with the working hours of the

bank and the aspiration to expect more from the bankers.

135

TABLE IV: 16

Facilities provided during waiting time in the ICICI bank ltd.

Facilities No. of

Respondent

Percentage to

Total

Reading Magazines 141 40.29

TV 34 9.71

Internet 50 14.29

Music 125 35.71

Total 350 100

Source: Computed from primary data

Table V:16 ilustrates the facilities provided by the bank during the leisure time in

the bank to the customer, 40.29 percent of the respondents feel that branches are

providing adequate reading magazines, 35.71 percent of the people appreciateted that

good music is being provided by the branches during the leisure time,14.29 percent of the

people stated internet is being given for the leisure time, 9.71 percent say T.V facility

avaiable to entertain during the leisure time in the branches.nearly 86 percent of the

people said both magazine and music, 90 percent said magazine, internet,T.V are the

entertaining element during the leisure time.

136

TABLE IV: 17

Opinion about the rate of interest charged

Opinion of Respondent No. of Respondent Percentage to Total

Yes 264 75.40

No 86 24.60

Total 350 100

Source: Computed from primary data

Table IV:17 excemplies the satisfcation level of the respodents on interest

rate,75.4 percent of the respondents satisfied with the interest rate, 24.6 percent of the

respondents are not satisfied with the interest rate, it could be inferred that 3/4 of the

respondents are satisfied with the interest rate levied by ICICI bank.

137

TABLE IV: 18

Opinion on various Service charges of the ICICI bank

Opinion of

Respondent

New Cheque

book

DD

commission

Telegraphic

transfer Mail transfer

Bill

discounting

Cheque /bill

collection charge

No. of

Respt.

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to Total

Very high 64 18.3 65 18.6 78 22.3 80 22.9 92 26.3 80 22.9

High 71 20.3 60 17.1 66 18.9 70 20.0 52 14.9 74 21.1

Moderate 68 19.4 91 26.0 75 21.4 69 19.7 97 27.7 87 24.9

Low 85 24.3 92 26.3 98 28.0 97 27.7 81 23.1 89 25.4

Very low 62 17.7 42 12.0 33 9.4 33 9.4 11 3.1 20 5.7

Total 350 100 350 100 350 100 350 100 350 100 350 100

Opinion of

Respondent

ATM charges Safety locker

charges

Demat

charges

Travelers cheque

charges

Minimum balance

in Account

Other transaction

charges

No. of

Respt.

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

Very high 70 20 99 28.3 98 28 48 13.7 51 14.6 95 27.1

High 95 27.1 61 17.4 69 19.7 116 33.1 97 27.7 73 20.9

Moderate 99 28.3 83 23.7 99 28.3 98 28.0 76 21.7 81 23.1

Low 59 16.9 71 20.3 51 14.6 55 15.7 75 21.4 71 20.3

Very low 27 7.7 36 10.3 33 9.4 33 9.4 51 14.6 30 8.6

Total 350 100 350 100 350 100 350 100 350 100 350 100

Source: Computed from primary data

138

Table IV:18 exemplifies the respondents opinion on the service charges levied by

the bank for the new cheque book 24.3 percent of the respondents considered as low,

17.7 percent opined it was very low, 20.3 percent of the respondents said it was high and

18.3 percent felt it was very high and 19.6 percent of the people considered it was

moderate, regarding DD 26.3 percent and 12 percent felt it was low and very low

respectively, 17.1 percent and 18.6 percent said high and very high respectively,26

percent felt it was moderate charge, regarding telegraphic transfer 28.0 percent and 9.4

percent stated that it was low and very low respectively, 18.9 percent and 22.3 percent

opined high and very high respectively, 21.4 percent felt it was a moderate charge, for

mail transfer 27.7 percent and 9.4 percent felt it was low and very low respectively, 22.9

percent and 20.0 percent opined high and very high respectively, 19.7 percent felt it was

moderate charge, the opinion of the respondents on the service charge levied by the ICICI

bank on bill discounting revealed that 23.1 percent and 3.1 percent felt it was low and

very low respectively, 14.9 percent and 26.3 percent said that it was high and very high

respectively, 27.7 percent felt it was moderate charge for cheque bill collection charge

25.4 percent and 5.7 percent felt it was low and very low respectively, 21.1 percent and

22.9 percent opined high and very high respectively, 24.9 percent felt.

139

It was moderate charge ,regarding ATM charges 16.9 percent and 7.7 percent felt

it was low and very low respectively, 27.1 percent and 20.0 percent opined high and very

high respectively, 28.3 percent felt it was moderate charge, for safety locker usage service

charge 20.3 percent and 10.3 percent felt it was low and very low respectively, 17.4

percent and 28.3 percent opined high and very high respectively, 23.7 percent felt it was

moderate charge, for demat charges 14.6 percent and 9.4 percent felt it was low and very

low respectively, 19.7 percent and 28 percent opined high and very high respectively,

28.3 percent felt it was moderate charge regarding the service charge to travelers cheque

15.7 percent and 9.4 percent felt it was low and very low respectively, 33.1 percent and

13.7 percent opined high and very high respectively, 28 percent felt it was moderate

charge and the opinion of the respondents on condition of maintaining minimum balance

is revealed that 21 percent and 14.6 percent felt it was low and very low respectively,

27.7 percent and 14.6 percent opined high and very high respectively,21.7 percent felt it

was moderate charge. The overall opinion of the people regarding service charges levied

by ICICI bank for various transactions are relatively higher still people felt comfortable

with the charge structure as long as the quality of service is very high.

140

Common problem encountered in the bank

Essentially, good customer service in banks should have three basic tenants viz,

courtesy, accuracy and speed. Courtesy combined with accuracy and speed ensures

quality customer service at the bar’s counters. Accuracy and speed together connote

efficiency. In today’s competitive scenario, speed and sophistication are the essence of

banking and key to customer service. Well designed customer service must be

accompanied by good delivery. Speed, efficiency, timeliness, accuracy etc. are also

elements of good delivery. Since all these elements are subjective and relative terms and

their interpretation may vary from person to person the criterion for efficiency can be

reasonableness. Customers expect these days reasonably high standards of service

comparable globally. As against this expectation if the banks fail to perform, the customer

dissatisfaction arises. Uninterrupted and speedy counter service during business hours is

what a customer expects from a branch for carrying out his expectations waiting for an

inordinately long period to carry out a simple transaction is a vexing problem in a bank

branch which generates deep resentment amongst a vast majority of customers. The

single most important customer complaint generally concerns the “delay” in the day-to-

day transactions. Avoidable delay characterize customer service in respect of updating

pass book, encashing cheques, is taking demand drafts, issue of cheque books, even

receipt of cash / deposits, collection of local or outstation cheques etc. Having analyzed

the service charges, it is desirable to assess the satisfaction of customers regarding

efficiency and speed of transactions. Towards this end it common transactions were listed

out and respondents were asked to give the average time taken for completion of each

transaction in their branches

141

TABLE IV: 19

Common problem encountered in the bank

Opinion of

Respondent

Delay in

service

No proper reply to

customer

Late intimation

regarding the

maturity of the

fixed deposit

Wrong entry in

pass book

Cancellation of demand

draft

No. of

Respt.

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

Always 21 6 21 6.0 14 4 3 0.9 9 2.6

often 32 9.1 35 10.0 22 6.3 36 10.3 11 3.1

sometimes 76 21.7 63 18.0 82 23.4 75 21.4 49 14.0

rarely 54 15.4 112 32.0 118 33.7 112 32.0 152 43.4

never 167 47.7 140 40.0 128 36.6 124 35.4 129 36.9

Total 350 100 350 100 350 100 350 100 350 100

Cont…….

Opinion of

Respondent

Dissatisfaction of staff

behavior Statement of accounts

Discontinuity of serving of the

personal who begun the

process

No. of

Respondent

%

to Total No. of

Respondent

%

to Total No. of Respondent

%

to

Total

Always 11 3.1 11 3.1 5 1.4

often 17 4.9 19 5.4 13 3.7

sometimes 68 19.4 66 18.9 45 12.9

rarely 112 32.0 134 38.3 132 37.7

never 142 40.6 120 34.3 155 44.3

Total 350 100 350 100 350 100

Source: Computed from primary data

142

Table IV: 19 illustrate the common problem encountered in the respondents and

the frequency of the problem occurred during the transaction in the bank, regarding the

delay in service. 6 percent of the respondents felt that it had been occurring always, 9.1

percent of the respondents opined it taking place quite often, 21.7 percent of the people

stated that sometimes it happened, 15.4 percent of the people said that it happened rarely,

47.7 percent of the respondents revealed that this problem never happened to them during

the transaction, regarding the improper reply to customer quarries 6 percent of the

respondents felt that it had been occurring always, 10 percent of the respondents opined it

taking place quite often,18 percent of the people stated that sometimes it happened, 32

percent of the people said that it happened rarely, 40 percent of the respondents revealed

that this problem never happened to them during the transaction. Regarding late

intimation to the maturity of the fixed deposit 4 percent of the respondents felt that it has

been occurring always, 6.3 percent of the respondents opined it taking place quite often,

23.4 percent of the people stated that sometimes it happened, 33.7 percent of the people

said that it happened rarely, 36.6 percent of the respondents revealed that this problem

never happened to them during the transaction.

143

Regarding wrong entry in the pass book, 0.9 percent of the respondents felt that it

has been occurring always, 10.3 percent of the respondents opined it taking place quite

often, 21.4 percent of the people stated that sometimes it happened, 32 percent of the

people said that it happened rarely, 35.4 percent of the respondents revealed that this

problem never happened to them during the transaction. On the subject of cancellation of

DD, 2.6 percent of the respondents felt that it had been occurring always, 3.1 percent of

the respondents opined it taking place quite often, 14 percent of the people stated that

sometimes it happened, 43.4 percent of the people said that it happened rarely,36.9

percent of the respondents revealed that this problem never happened to them during the

transaction, regarding dissatisfaction of the staff behavior, 3.1 percent of the respondents

felt that it had been occurring always, 4.9 percent of the respondents opined it taking

place quite often,19.4 percent of the people stated that sometimes it happened, 32 percent

of the people said that it happened rarely,40.6 percent of the respondents revealed that

this problem never happened to them during the transaction, regarding statement of

accounts, 3.1 percent of the respondents felt that it had been occurring always, 5.4 percent

of the respondents opined it taking place quite often,18.9 percent of the people stated that

sometimes it happened, 38.3 percent of the people said that it happened rarely, 34.3

percent of the respondents revealed that this problem never happened to them during the

transaction, regarding discontinuity of the service of the people who begun the service,

1.4 percent of the respondents felt that it had been occurring always, 3.7 percent of the

respondents opined it taking place quite often, 12.9 percent of the people stated that

sometimes it happened, 37.7 percent of the people said that it happened rarely, 44.3

percent of the respondents revealed that this problem never happened to them during the

transaction. At the outset respondents have not faced any problem during their

transactions.

144

Customer Complaints

The market oriented bank is differentiated from others on the basis of the attention

given to the customer complaints. Successful banks are those that have identified that the

key to a long lasting customer relationship lies in the speedy redressal of customer

complaints. It is to be understood that complaints are opportunities for the bankers to

improve up on the defects and deficiencies and to ultimately serve the customer better.

Banks must address the underlying issues rather than the complaint itself so that the focus

gets shifted from mere complaint redressal to up gradation of the quality of customer

services.

In an environment where the customer has come to the centre-stage, listening to

the customer for the redressal of his grievance is an organizational necessity and

imperative. The Working Group on customer service recommended that banks should

maintain complaint and suggestion boxes and complaint registers in each bank office for

receiving and recording customer complaints/suggestions. Branch managers have also

been instructed to record all complaints received in the branch and senior officers visiting

branches should take proper attention of these records.

It is observed that only a small portion of dissatisfied customers do complain. The

reasons are that the customers do not know where to complain, whom to complain and

fear of hassles due to complaints. However there exists a group of silent customers who

may not complain but change the bank when a competitor comes in. Generally most of

the customer complaints fall under three headings.

• Indifferent attitude and behaviour of staff

• Undue delay in day-to-day transactions

• Unreasonable service charges and interest rates.

145

As part of the behavioural aspects the sample respondent’s opinion about complaint

redressal in their branches were examined here by analysing the frequency and nature of

complaints lodged, the authority to whom it is given and the manner in which it is dealt

with etc.

TABLE IV: 20

Opinion on the process to resolve the problem in ICICI bank

Opinion

of

Respondent

Fac

ed a

ny

pro

ble

m i

n

ICIC

I b

ank

%

Was

it

rep

rese

nte

d

%

Th

e au

thori

ty i

nst

antl

y

avai

lable

to

rec

eiv

e th

e

com

pla

int

%

Was

th

e p

rob

lem

dev

elo

ped

%

Was

yo

u f

ou

nd

the

rem

edy

%

Whet

her

th

e p

roble

m

solv

ed

wit

hin

the

expec

ted t

ime

%

No

. o

f

Resp

t.

%

to T

ota

l

No

. o

f

Res

pt

%

to T

ota

l

No

. o

f

Res

pt

%

to T

ota

l

No

. o

f

Res

pt

%

to T

ota

l

No

. o

f

Res

pt

%

to T

ota

l

No

. o

f

Resp

t.

%

to T

ota

l

Yes 150 42.90 128 85.00 118 92.00 111 94.00 108 97.00 94 87.00

No 200 57.10 22 15.00 10 8.00 07 6.00 03 3.00 14 13.00

Total 350 100 150 100 128 100 118 100 111 100 108 100

Source: Computed from primary data

146

Table IV: 20 exemplifies the opinion of the respondents about the problem

encountered in the bank and the process to resolve the problem, 42.9 percent of the

respondents have faced the problem in the bank transaction while 57.1 percent of the

respondents have not faced any problem during transaction. Regarding the scope to

launch complaint 92.1 percent people said that the authorities were instantly available to

receive the compliant from the customer, only 8 percent of the respondents stated the

non-availability of the authorities to receive the complaint quickly, 6 percent of the

people accepted that the problem was magnified while 94 percent of the respondents

denied the statement that the problem was magnified, 97 percent of the respondents stated

that they got the remedy for the problem addressed, only 3 percent of the people didn’t

get the remedy, 87 percent of the respondents stated that the got the remedy within the

expected time while 13 percent of the people revealed that they didn’t get the remedy

within the expected time. The overall picture of the problem and the process of finding

the solution are in very cordial and favourable to the customer to a large extent. Thus it

can be inferred that the majority of customer complaints can be settled at branch manager

and accountant’s level. Here the diplomacy, patience and approach of the senior officials

of the branch are important factors in making a dissatisfied customer a satisfied one. It is

also found that a perceptible change in the attitude of customers in launching complaints

as result of awareness and also the bankers’ ability to reciprocate to the complaints are

also sounds good. As far as possible a bank should find solution to the complaint in a

short period and in the most satisfactory manner to the customer or else it will affect the

image of the bank.

147

Financial services

Bank’s financial services include loans and advances, bill counting, travelers

cheque, import export finance, issue of DD, Issue of cheque book etc. Naturally the study

on customer satisfaction should also cover the perceptions of borrowers and their level of

satisfaction. For a long time the policies of Indian banks were characterized by the

‘rationing approach’. The increased ratio of non- performing assets caused much concern

and after the financial sector liberalization the banks were gradually reducing its level.

The financial marketing is increasingly turnings in to a buyer’s market’ from a ‘sellers

market’ as reasonably better credit-rated clients have several options and demanding

funds on much softer terms. Gradually the banks were facing the after effects of

disintermediation. The most profitable segments of banks traditional borrowers are now

directly approaching the market and banks have to diversify their lending to the retail

market in a far more aggressive manner than before.

148

TABLE IV: 21

Opinion about financial services of the respondents

Opinion of

Respondent

Loans and

advances Bill discounting

Travelers

cheque charges

Export import

finance

Encashment of

cheque

No. of

Respt.

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

Highly satisfied 153 43.7 165 47.1 139 39.7 180 51.4 172 49.1

satisfied 113 32.3 97 27.7 110 31.4 102 29.1 81 23.1

Neutral 50 14.3 22 6.3 45 12.9 32 9.1 29 8.3

Dissatisfied 21 6.0 34 9.7 36 10.3 21 6.0 45 12.9

Highly dissatisfied 13 3.7 32 9.1 20 5.7 15 4.3 23 6.6

Total 350 100 350 100 350 100 350 100 350 100

Cont…….

Opinion of

Respondent

Issue of

DD

Issue of

cheque

book

Pass book

entries

Dishounoured

cheques

current/sav

ings bank

Instant credit

cheques

Forex

transactions

No. of

Respt.

%

to Total

No. of

Respt

%

to Total

No. of

Respt

%

to Total

No. of

Respt

Highly

satisfied 156 44.6 155 44.3 165 47.1 117 33.4 175 50.0 134 38.3 147 42.0

satisfied 98 28.0 70 20.0 96 27.4 56 16.0 90 25.7 80 22.9 76 21.7

Neutral 31 8.9 43 12.3 25 7.1 42 12.0 45 12.9 26 7.4 54 15.4

Dissatisfied 34 9.7 40 11.4 30 8.6 70 20.0 23 6.6 64 18.3 38 10.9

Highly

dissatisfied 31 8.9 42 12.0 34 9.7 65 18.6 17 4.9 46 13.1 35 10.0

Total 350 100 350 100 350 100 350 100 350 100 350 100 350 100

Source: Computed from primary data

149

Table IV:21 exemplifies the opinion of the respondents on the financial services

provided by the ICICI bank, regarding loans and advances provision, procedure and

service 43.7 percent of the respondents were highly satisfied with the bank activities, 32.3

percent of the respondents were satisfied, 14.3 percent of the respondents were neutral 6

percent of the respondents were dissatisfied and 3.7 percent of the people were highly

dissatisfied about the service, with respect to the bill discounting procedure, 47.1 percent

of the respondents were highly satisfied with the bank activities, 27.7 percent of the

respondents were satisfied, 6.3 percent of the respondents were neutral 9.7 percent of the

respondents were dissatisfied and 9.1 percent of the people were highly dissatisfied about

the service, regarding the travelling cheque provision, 39.7 percent of the respondents

were highly satisfied with the bank activities, 31.4 percent of the respondents were

satisfied, 12.9 percent of the respondents were neutral 10.3 percent of the respondents.

150

Were dissatisfied and 5.7 percent of the people were highly dissatisfied about the

service, regarding the provision of export import finance, 51.4 percent of the respondents

were highly satisfied with the bank activities, 29.1 percent of the respondents were

satisfied, 9.1 percent of the respondents were neutral 6.0 percent of the respondents were

dissatisfied and 4.3 percent of the people were highly dissatisfied about the service, with

respect to the procedure and time taken for the encashment of cheque, 49.1 percent of the

respondents were highly satisfied with the bank activities, 23.1 percent of the respondents

were satisfied, 8.3 percent of the respondents were neutral 12.9 percent of the respondents

were dissatisfied and 6.6 percent of the people were highly dissatisfied about the service,

regarding issue of DD, 44.6 percent of the respondents were highly satisfied with the

bank activities, 28.0 percent of the respondents were satisfied, 8.9 percent of the

respondents were neutral 9.7 percent of the respondents were dissatisfied and 8.9 percent

of the people were highly dissatisfied about the service, with respect to the prompt entry

in the pass book, 47.1 percent of the respondents were highly satisfied with the bank

activities, 27.4 percent of the respondents were satisfied, 7.1 percent of the respondents

were neutral 8.6 percent of the respondents were dissatisfied and 9.7 percent of the people

were highly dissatisfied about the service, regarding the maintenance of current and

savings account in the bank, 50.0 percent of the respondents were highly satisfied with

the bank activities, 25.7 percent of the respondents were satisfied, 12.9 percent of the

respondents were neutral 6.6 percent of the respondents were dissatisfied and 4.9 percent

of the people were highly dissatisfied about the service, regarding the issue of instant

credit cheque, 38.3 percent of the respondents were highly satisfied with the bank

activities, 22.9 percent of the respondents were satisfied, 7.4 percent of the respondents

were neutral 18.3 percent of the respondents were dissatisfied and 13.1 percent of the

people were highly dissatisfied about the service.

151

With respect to the forex transaction, 42.0 percent of the respondents were highly

satisfied with the bank activities, 21.7 percent of the respondents were satisfied, 15.4

percent of the respondents were neutral 10.9 percent of the respondents were dissatisfied

and 10 percent of the people were highly dissatisfied about the service. The overall

perception of the respondents on the financial services provided by the ICICI bank is

good, it is also found that the charges are relatively higher still people are very much

satisfied over the services rendered by the bank.

152

TABLE IV: 22

Opinion about non Financial Services

Opinion of

Respondent

Locker

service

Sending of

statement of

Account

Reply to

quires

Service

charges

Friendly

approach to

staff

Friendly

approach of the

officers

No. of

Respt.

%

to

Total

No. of

Respt

%

to Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt.

%

to Total

Highly

satisfied 167 47.71 189 54 200 57.14 176 50.29 186 53.14 166 47.429

satisfied 86 24.57 70 20 75 21.43 65 18.57 80 22.86 90 25.714

Neutral 44 12.57 52 14.857 25 7.143 36 10.29 34 9.714 41 11.714

Dissatisfied 32 9.143 21 6 29 8.286 41 11.71 30 8.571 23 6.5714

Highly

dissatisfied 21 6 18 5.1429 21 6 32 9.143 20 5.714 30 8.5714

Total 350 100 350 100 350 100 350 100 350 100 350 100

Cont…..

Opinion of

Respondent

Guidance consultancy Merchant

banking

Acceptance of govt.

taxes/ fees

Portfolio

management

Trustee and

Administration

No. of

Respt.

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt

%

to

Total

No. of

Respt.

%

to Total

Highly

satisfied 190 54.3 187 53.4 190 54.3 154 44 122 34.9 141 40.3

satisfied 70 20.0 78 22.3 97 27.7 76 21.7 98 28.0 75 21.4

Neutral 27 7.7 36 10.3 30 8.6 65 18.6 43 12.3 76 21.7

Dissatisfied 32 9.1 23 6.6 12 3.4 27 7.7 53 15.1 37 10.6

Highly

dissatisfied 31 8.9 26 7.4 21 6 28 8 34 9.7 21 6

Total 350 100 350 100 350 100 350 100 350 100 350 100

Source: Computed from primary data

153

Table IV:22 exemplifies the opinion of the respondents on the Non- financial

services provided by the ICICI bank Ltd. Regarding locker service 47.1 percent of the

respondents were highly satisfied with the bank activities, 24.5 percent of the respondents

were satisfied, 12.7 percent of the respondents were neutral 9.1 percent of the respondents

were dissatisfied and 6 percent of the people were highly dissatisfied about the service,

with respect to the sending of statement, 54 percent of the respondents were highly

satisfied with the bank activities, 20 percent of the respondents were satisfied, 14.8

percent of the respondents were neutral 6 percent of the respondents were dissatisfied and

5.1 percent of the people were highly dissatisfied about the service, regarding the staff

commitment of reply to the queries of the customer, 57.4 percent of the respondents were

highly satisfied with the bank activities, 21.3 percent of the respondents were satisfied,

7.1 percent of the respondents were neutral 8.2 percent of the respondents were

dissatisfied and 6 percent of the people were highly dissatisfied about the service, with

respect to the friendly approach of the subordinates of the banks towards consumers, 53.1

percent of the respondents were highly satisfied with the bank activities, 22.8 percent of

the respondents were satisfied.

154

9.7 percent of the respondents were neutral 8.5 percent of the respondents were

dissatisfied and 5.7 percent of the people were highly dissatisfied about the service, with

respect to the friendly approach of the officers of the banks towards consumers, 47.4

percent of the respondents were highly satisfied with the bank activities, 25.7 percent of

the respondents were satisfied, 11.7 percent of the respondents were neutral 6.5 percent of

the respondents were dissatisfied and 8.5 percent of the people were highly dissatisfied

about the service, regarding the staff commitment of providing guidance to the customer,

54.3 percent of the respondents were highly satisfied with the bank activities, 20.0 percent

of the respondents were satisfied, 7.7 percent of the respondents were neutral 9.1 percent

of the respondents were dissatisfied and 8.9 percent of the people were highly dissatisfied

about the service, with respect to the prospective of accepting Govt. taxes/fees , 44.0

percent of the respondents were highly satisfied with the bank activities, 21.7 percent of

the respondents were satisfied, 18.6 percent of the respondents were neutral 7.7 percent of

the respondents were dissatisfied and 8 percent of the people were highly dissatisfied

about the service, regarding the staff commitment towards portfolio management, 34.9

percent of the respondents were highly satisfied with the bank activities, 28 percent of the

respondents were satisfied, 12.3 percent of the respondents were neutral 15.1 percent of

the respondents were dissatisfied and 9.7 percent of the people were highly dissatisfied

about the service, with respect to the confidence on trustee and management, 40.3 percent

of the respondents were highly satisfied with the bank activities, 21.4 percent of the

respondents were satisfied, 21.7 percent of the respondents were neutral 10.6 percent of

the respondents were dissatisfied and 6 percent of the people were highly dissatisfied over

the confidence on the trustee and the management, it is found that the overall satisfaction

level customers on non-financial services are quite positive and good.

155

Bank Staff approach in Transaction

Essentially, good customer service in banks should have three basic tenants’ viz.,

courtesy, accuracy and speed. Courtesy combined with accuracy and speed ensures

quality customer service at the bar’s counters. Accuracy and speed together connote

efficiency. In today’s competitive scenario, speed and sophistication are the essence of

banking and key to customer service. Well designed customer service use is accompanied

by good delivery. Speed, efficiency, timeliness, accuracy etc. are also elements of good

delivery. Since all these elements are subjective and relative terms and their interpretation

may vary from person to person the criterion for judgment for the efficiency can be

reasonableness’. Customers expect these days’ reasonably high standards of service

comparable globally. As against this expectation if the banks fail to perform, the customer

dissatisfaction arises. Uninterrupted and speedy counter service during business hours is

what a customer expects from a branch for carrying out his nations Waiting for an

inordinately long period to carry out a simple transaction is a vexing problem in a bank

branch which generates deep resentment amongst a vast majority of customers. The

single most important customer complaint generally concerns the “delay” in the day-to-

day transactions. Avoidable delay characterizes customer service in respect of updating

pass book, encashing cheques, is use of demand drafts, issue of cheque books, even

receipt of cash / deposits, collection of local or outstation cheques etc. Having analyzed

the banking habits, it is desirable to assess the satisfaction of customers regarding

efficiency and speed of transactions. Towards this end it common transactions were listed

out and respondents were asked to give the average time taken for completion of each

transaction in their branches.

156

TABLE IV: 23

Opinion about approach with customers

Opinion of Respondent No. of Respondent Percentage to Total

Highly satisfied 146 41.70

satisfied 130 37.10

Neutral 41 11.70

Dissatisfied 22 6.30

Highly dissatisfied 11 3.10

Total 350 100

Source: Computed from primary data

Table IV:23 exemplifies the respondent’s opinion on customer friendly approach

of the bankers towards the customer 41.7 percent of the respondents were highly satisfied

with the approach, 37.1 percent of the respondents were satisfied, 11.7 percent of the

respondents were neutral, 6.3 percent of the respondents were dissatisfied and 3.1 percent

of the people were highly dissatisfied, It can be inferred from the above that bank officials

were more popular among customer groups. Especially the subordinates are more popular

among the customers since the clerks and subordinate staffs have more interfaces with

customers than these officers, their popularity may be related to their role as immediate

problem solving authorities.

157

TABLE IV: 24

Opinion about attitudes of bank employees in rendering service to the customers

Opinion of Respondent No. of Respondent Percentage to Total

Highly satisfied 161 46.00

satisfied 103 29.40

Neutral 43 12.30

Dissatisfied 21 6.00

Highly dissatisfied 22 6.30

Total 350 100

Source: Computed from primary data

Table IV:.24 exemplifies the respondent’s opinion on the attitudes of the bankers

in rendering service to the customers, 46 percent of the respondents were highly satisfied

with the approach, 29.4 percent of the respondents were satisfied, 12.3 percent of the

respondents were neutral, 6 percent of the respondents were dissatisfied and 6.3 percent

of the people were highly dissatisfied, it could be inferred from the empirical evidence

that the bankers are keen to serve for the customer at the optimum level.

158

TABLE IV: 25

Opinion about Staff members awareness on various schemes of ICICI Bank Ltd.

Opinion of Respondent No. of Respondent Percentage to Total

Highly satisfied 125 35.70

Satisfied 112 32.00

Neutral 34 9.70

Dissatisfied 48 13.70

Highly dissatisfied 31 8.90

Total 350 100

Source: Computed from primary data

Table IV: 25 illustrates the opinon of the respondents on the awarness of the staff

members on various schemes of ICICI bank pertains to bank sector, 35.7 percent of the

respondets were very much satisfied with the awarness got by the staff, 32 percent of the

respondents were satisfied over the same, 9.7 percent of the respodents remained neutral,

13.7 percnt of the respondents were dissatisfied and 8.9 percent of the people were highly

dissatisfied about the awarness of the staff on various schemes, it could be inferred from

the above empirical evidence that the bank employees were systematically updated to

encounter the querries raised by the customers.

159

Behavioural Aspects

Banking is essentially a person-to-person business. In the sense that, services

offered by a bank are delivered through people working in the bank. In a competitive

environment characterized by absence of product differential and price competition, the

knowledge, attitude and approach of the people in banks differentiate one bank from the

other. The frontline staff at the branch are the real ambassadors of the banks. They are the

masters of the job and should have thorough knowledge of the subject they are handling.

Besides, the skill, experience, expertise etc. matters much in providing prompt and

efficient service.

Apart from the skill, the employees should have the right attitude, positive behaviour,

humility and motivation arid should possess an inspired personality. The Working Group

recommended that training Programmes of banks should lay special emphasis on customer service

and other related issues like importance of courtesy, promptitude, public relation skills, telephone

manners, functionally effective correspondence, management of complaints etc in addition to

imparting knowledge. Each and every employee of bank should have a market oriented approach.

Greater resources and efforts are required for making employees customer oriented or marketing

oriented. It has been established that service excellence of an organization can be achieved only

through its employees. The service personnel’s commitment to the job and superior

service provided will result in lasting relationship with the customer. Indifferent

employee attitude leads to indifferent service. In India there were wide spread feeling that

the attitude of the bank employees is not customer friendly. Dominant cause of the

indifferent attitude of employees towards the customers is the militant trade unionism

followed by majority of employee’s organizations and lack of accountability. In order to

assess the satisfaction of respondents towards the behavioral aspects of employees, this

part of the study deals with their promptness.

160

TABLE No. IV: 26

Opinion about Staff members reciprocation to the customer’s enquiry

Opinion of Respondent No. of Respondent Percentage to Total

Highly satisfied 187 53.40

Satisfied 100 28.60

Neutral 20 5.70

Dissatisfied 21 6.00

Highly dissatisfied 22 6.30

Total 350 100

Source: Computed from primary data

161

Table No.IV:26 exemplifies the opinion of the bank staff members reciprocation

to the enquiry made by the customer, 53.4 percent of the respondents were highly

satisfied, 28.6 percent of the respondents satisfied, 5.7 percent of the respondents did not

reveal any opinion, 6 percent of the respondents were dissatisfied, 6.3 percent of the

respondents were highly dissatisfied. The analysis revealed that the least favourable

indicator, politeness, had reasonably high response in all the branches. These inferences

suggest for a more helpful approach from the part of the bankers. This is quite relevant in

this competitive environment of the bank. It is also found that the staff is not only polite

towards the customer and also very informative and efficient to cater the requirement of

the customers in all the spheres of the transactions.

162

TABLE No. IV: 27

Opinion about Active Presence of Bank Staff during Banking Hours

Opinion of Respondent No. of Respondent Percentage to Total

Highly satisfied 157 44.90

Satisfied 119 34.00

Neutral 33 9.40

Dissatisfied 28 8.00

Highly dissatisfied 13 3.70

Total 350 100

Source: Computed from primary data

163

Table No.IV:27 illustrates the opinion of the respondents on the active presence of

the bank staff during the working hours, 44.9 percent of the respondents were highly

satisfied with the active presence of the bank staffs during the working hours, 34 percent

of the were satisfied, 9.4 percent of the respondents remained neutral, 8.0 percent of the

respondents dissatisfied and 3.7 percent of the respondent were highly dissatisfied over

the inactive presence of the bank staffs in the bank. The best way to assess the satisfaction

level of the customer depends on the quality of services rendered to the customer at the

counter. Whatever may be the level of public relation, a single unsatisfied customer can

create a lot of adverse effect on the image of the bank. Unattended counters usually create

dissatisfaction to the customers. So the presence of bank staff during working hours is a

must for ensuring customer satisfaction. Some important customers prefer to deal only

with the manager or senior officials. They do not mind waiting for their transaction to

take place, but prefer to do so in the manager’s chamber only. Therefore the presence of

the managers during business hours will help in providing exclusive treatment to such

customers. Moreover his presence ensures customer service at the branch in general and

quick solution to the customer’s problems. The nature of opinion expressed by the

respondents revealed that very high satisfaction existed regarding the presence of bank

staff during business hours. It is also an indication of the discipline of the bank staff in the

study area.

164

TABLE No. IV: 28

Opinion about Timely Opening and Closing of Branches

Opinion of Respondent No. of Respondent Percentage to Total

Highly satisfied 139 39.70

Satisfied 104 29.70

Neutral 65 18.60

Dissatisfied 23 6.60

Highly dissatisfied 19 5.40

Total 350 100

Source: Computed from primary data

165

Table No.IV:28 illustrates the respondents opinion on the timely opening of the

branches, 39.7 percent of the respondents were highly satisfied with the time, 29.7

percent of the respondents were satisfied, 18.6 percent of the respondents remained

neutral, 6.6 percent of the respondents were dissatisfied, 5.4 percent of the respondents

were highly dissatisfied, it could be inferred from the empirical evidence that the

punctuality of the banker with regards its opening time is good. It is also found that

important aspect connected with the working hours of branches is the timely opening and

closing. Keeping time schedule is an indication of the image of the bank in the eyes of

the customer. It is also stressed that commencement of banking business in time and

rendering uninterrupted service during business hours are important aspects of customer

service. There was divergence observed by the committee among different states in the

matter of providing service right from the commencement of business hours. They

strongly viewed that every customer who enters the banking hail prior to the close of

business hours needs to be attended to and non - cash transactions should be extended up

to one hour before closing. All groups of the respondents expressed uniform pattern of

positive opinion regarding opening and closing of branches.

166

Technical Aspects

Another critical aspect of the customer service is the technical aspect every

banking product or service must measure up to the test of accepted technical standards.

The measure of technical perfection in the case of bank’s service is its arithmetical

accuracy and prompts delivery of transactions. As financial institutions the customer

expects maximum accuracy in the accounts and related transactions from banks. This has

all along been an enduring value in banks but of late Indian banks have shown a declining

trend.

Reliable customer service is customer expectation which means that the service is

accomplished on time, in the same manner and without errors every time. Service failures

of different varieties are common in Indian Banks. Recently, an average customer in

Indian banking system did not have much choice and had to put up with service failures

and suffer resultant losses. Since the introduction of liberalization of the economy the

customers are given some choice to react to his bank and this has brought in a change in

the attitude of bankers. In the light of the above situation this section would examine the

level of satisfaction of customers regarding technical aspects. Timely updating of pass

book, correctness of entries made, clarity of the passbook entries, intimation of fixed

deposit on maturity, prompt and timely execution of standing instructions, advice on

nomination facility etc. are matters taken in to consideration under technical aspects.

167

TABLE No IV: 29

Opinion about Entries in the pass book

Source: Computed from primary data

Opinion of

Respondent

Updating of pass book Understandability of entries

No.of

Respondent

Percentage to

Total

No.of

Respondent Percentage to Total

Highly satisfied 145 41.40 157 44.90

Satisfied 116 33.10 104 29.70

Neutral 47 13.40 39 11.10

Dissatisfied 23 6.60 28 8.00

Highly dissatisfied 19 5.40 22 6.30

Total 350 100 350 100

168

Table No.IV:29 exemplifies the respondents opinion on the entries of the

passbook. The habit of the respondents taking the pass book to the branch for each

transaction involving deposit and withdrawal. Regarding updating the pass book 44.9

percent of the highly satisfied with the updating process of the passbook entry, 29.7

percent of the respondents were satisfied for the same, 11.1 percent of the respondents

remained neutral, 8.0 percent of the respondents were dissatisfied, 6.3 percent of the

respondents were highly dissatisfied, with respect to the understandability of the entries

in the pass book, 44.9 percent of the highly satisfied with the updating process of the

passbook entry, 29.7 percent of the respondents satisfied for the same, 11.1 percent of the

respondents remained neutral, 8 percent of the respondents were dissatisfied, 6.3 percent

of the respondents were highly dissatisfied. From the above analysis it can be inferred

that majority of the customers take the pass book to the branches during their visit to

bank. The positive side of this trend is that the question of updating pass book does not

arise much and the errors can be minimized by frequent checking. Banks can encourage

this practice still since the volume and frequency of transactions among business groups

are higher, the statement of accounts were frequently for reconciliation. For small traders

and businessmen the passbook entries will serve the purpose and hence the updating

required frequently, it is also found that the computerized entries limited the error in the

pass books of ICICI Bank Ltd., branches unlike the abbreviation used and poor

handwriting are the major reasons for non clarity of entries in the pass book of the other

banks, hence the entries in ICICI branches pass book are registered accurately, legibly

and neatly. Statement of accounts and pass book are amongst the important contact points

between a bank and its customers and care should be taken in making entries in it.

169

TABLE No. IV: 30

Opinion about Depository Service

Opinion of

Respondent

Information on Maturity

of Fixed Deposit Nomination Facility

Execution of Standing

Instructions

No.of

Respondent

Percentage

to Total

No.of

Respondent

Percentage

to Total

No.of

Respondent

Percentage

to Total

Highly satisfied 148 42.30 130 37.10 140 40.00

Satisfied 111 31.70 108 30.90 112 32.00

Neutral 42 12.00 51 14.60 43 12.30

Dissatisfied 31 8.90 40 11.40 32 9.10

Highly dissatisfied 18 5.10 21 6.00 23 6.60

Total 350 100 350 100 350 100

Source: Computed from primary data

170

Table No.IV:30 excemplifies the respondents opinion on service rendered in

depositary services by the ICICI Bank Ltd. Regarding issue of providing the information

on maturity to FD, 42.3 percent of the respondents were highly satisfied, 31.7 percent of

the respondents were satisfied,12 percent of the person remained neutral, 8.9 percent of

the respondents were dissatisfied and 5.1 percent of respondents were highly

didsatisfied,with respect to the nomination facility, 37.1 percent of the respondents were

highly satisfied, 30.9 percent of the respondents were satisfied, 14.6 percent of the person

remained neutral, 11.4 percent of the respondents were dissatisfied and 6 percent of

respondents were highly didsatisfied, regarding executing the standard instructions, 40

percent of the respondents were highly satisfied, 32 percent of the respondents were

satisfied, 12.3 percent of the person were remained neutral, 9.1 percent of the

respondents were dissatisfied and 6.6 percent of respondents highly didsatisfied, it could

be inferred from the empirical verification that Banks were directed to accept stand

instructions even on non-cheque operated savings bank account especially for payments

like insurance premium, taxes, rentals etc as against the former practice of accepting

standing instructions only on current accounts and cheque operated savings bank

accounts. They were also instructed to send intimation of compliance of standing

instructions immediately to the customers, it is also found that facility of standing

instructions which is a convenient method of making regular payments was effectively

used by the sample respondents, increasing awareness may be the most important reason

for this good usage level in this present day busy schedule of the people the standing

instruction for collection and payment of customer’s claims and dues have much

relevance hence the ICICI facilitated the customer, The above analysis brings to our

attention that regularity of executing standing instructions was comparatively high.

171

TABLE No. IV: 31

Opinion about Cheque services

Opinion of

Respondent

Clearing of local

cheque

collection of

outstanding cheque

charges for new

cheque book

Issue of new cheque

book

No.of

Respondent

Percentage

to Total

No.of

Respondent

Percentage

to Total

No.of

Respondent

Percentage

to Total

No.of

Respondent

Percentage

to Total

Highly

satisfied 155 44.30 142 40.60 158 45.10 149 42.60

satisfied 95 27.10 102 29.10 97 27.70 106 30.30

Neutral 46 13.10 44 12.60 54 15.40 46 13.10

Dissatisfied 33 9.40 33 9.40 23 6.60 34 9.70

Highly

dissatisfied 21 6.00 29 8.30 18 5.10 15 4.30

Total 350 100 350 100 350 100 350 100

Source: Computed from primary data

172

Table No.IV:31 excemplifies the respondents opinion on cheque service rendered

by the ICICI Bank Ltd. Regarding issue of process and time consuming for clearing local

cheques, 44.3 percent of the respondents were highly satisfied, 27.1 percent of the

respondents were satisfied,13.1 percent of the person remained neutral, 9.4 percent of the

respondents were dissatisfied and 6 percent of respondents were highly

didsatisfied,regarding issue of process and time consuming for collection of outstanding

cheques, 40.6 percent of the respondents were highly satisfied, 29.1 percent of the

respondents were satisfied, 12.6 percent of the person remained neutral, 9.4 percent of

the respondents were dissatisfied and 8.3 percent of respondents were highly

didsatisfied,with respect to the charges leVed for issue of new cheque books, 45.1 percent

of the respondents were highly satisfied, 27.7 percent of the respondents were satisfied,

15.4 percent of the person remained neutral, 6.6 percent of the respondents were

dissatisfied and 5.1percent of respondents were highly didsatisfied,regarding the time

consuming for the issue of new cheque books, 42.6 percent of the respondents were

highly satisfied, 30.3 percent of the respondents were satisfied, 13.1 percent of the person

remained neutral, 9.7 percent of the respondents were dissatisfied and 4.3 percent of

respondents were highly didsatisfied, it could be infered from the empirical verification

that the cheque service rendered by the ICICI Bank Ltd. is good.

173

TABLE No. IV: 32

Opinion about Demand Draft services

Opinion of

Respondent

Purchase of DD Encashment of DD Issue of duplicate

DD cancellation of DD

No.of

Responden

t

% to Total No.of

Responden

t

% to

Total

No.of

Respondent

% to

Total

No.of

Respondent

% to

Total

Highly

satisfied 135 38.60 153 43.70 127 36.30 165 47.10

satisfied 116 33.10 97 27.70 107 30.60 90 25.70

Neutral 45 12.90 38 10.90 65 18.60 36 10.30

Dissatisfied 33 9.40 33 9.40 28 8.00 38 10.90

Highly

dissatisfied 21 6.00 29 8.30 23 6.60 21 6.00

Total 350 100 350 100 350 100 350 100

Source: Computed from primary data

174

Table No.IV: 32 excemplifies the respondents opinion on DD service rendered by

the ICICI Bank Ltd. Regarding the time consumed and the service charge levied on the

purchase of DD, 38.6 percent of the respondents were highly satisfied,33.1 percent of the

respondents were satisfied,12.9 percent of the person remained neutral, 9.4 percent of the

respondents were dissatisfied and 6 percent of respondents were highly didsatisfied,with

respect of the time consumed for the encashment of DD, 43.7 percent of the respondents

were highly satisfied,27.7 percent of the respondents were satisfied,10.9 percent of the

person remained neutral,9.4 percent of the respondents were dissatisfied and 8.3 percent

of respondents were highly didsatisfied,regarding the issue of duplicate DD,36.3 percent

of the respondents were highly satisfied,30.6 percent of the respondents were

satisfied,18.6 percent of the person remained neutral,8 percent of the respondents were

dissatisfied and 6.6 percent of respondents were highly didsatisfied, with respect to the

procedure for cancelation of DD,47.1 percent of the respondents were highly

satisfied,25.7 percent of the respondents were satisfied,10.3 percent of the person

remained neutral,10.9 percent of the respondents were dissatisfied and 6 percent of

respondents were highly didsatisfied, it could be inferred from the empirical investigation

that customers were satisfied with the DD service rendered by the ICICI Bank Ltd.,.

175

TABLE No. IV: 33

Perceptions of the customer on the availability of the physical infrastructure

Opinion of

Respondent

Up-keep branch

premises Well furnished place to sit Queuing space parking space locker space

No.of

Respon

dent

Percent

age to

Total

No.of

Respond

ent

Perce

ntage

to

Total

No.of

Respo

ndent

Percen

tage to

Total

No.of

Respo

ndent

Percent

age to

Total

No.of

Resp

onde

nt

Percent

age to

Total

No.of

Respo

ndent

Percen

tage to

Total

Highly

Satisfied 144 41.10 166 47.40 131 37.40 170 48.60 138 39.40 158 45.10

Satisfied 104 29.70 102 29.10 102 29.10 76 21.70 88 25.10 65 18.60

Neutral 41 11.70 30 8.60 59 16.90 37 10.60 45 12.90 40 11.40

Dissatisfied 35 10.00 29 8.30 30 8.60 45 12.90 40 11.40 51 14.60

Highly

dissatisfied 26 7.40 23 6.60 28 8.00 32 9.10 39 11.10 36 10.30

Total 350 100 350 100 350 100 360 100 350 100 350 100

Source: Computed from primary data

176

Table No.IV: 33 excemplifies the respondents opinion on the avaiability of the

physical infrastucure in the ICICI Bank Ltd., branches in the study area,regarding the up-

keep of the premises, 41.1 percent of the respondents were highly satisfied,29.7 percent

of the respondents were satisfied,11.7 percent of the person remained neutral,10 percent

of the respondents were dissatisfied and 7.4 percent of respondents were highly

didsatisfied,with respect to the avaiability of the furnitures to accommodate the customers

in the branches, 47.4 percent of the respondents were highly satisfied,29.1 percent of the

respondents were satisfied,8.6 percent of the person remained neutral, 8.3 percent of the

respondents were dissatisfied and 6.6 percent of respondents were highly didsatisfied,

regarding the avaiability of the space for the customers to stand in the queue for the

tranaction, 48.6 percent of the respondents were highly satisfied,21.7 percent of the

respondents were satisfied,10.6 percent of the person remained neutral, 12.9 percent of

the respondents were dissatisfied and 9.1 percent of respondents were highly

didsatisfied,regarding the avaiability of the parking space for the customers, 39.4 percent

of the respondents were highly satisfied, 25.1 percent of the respondents were

satisfied,12.9 percent of the person were remained neutral, 11.4 percent of the

respondents were dissatisfied and 11.1 percent of respondents were highly

didsatisfied,with respect to the avaiability of the locker space , 45.1 percent of the

respondents were highly satisfied,18.6 percent of the respondents were satisfied,11.4

percent of the person were remained neutral, 14.6 percent of the respondents were

dissatisfied and 10.3 percent of respondents were highly didsatisfied,it could be inferred

from the above analysis that the customer was satisfied with the physical infrastucure of

the branches of ICICI Bank Ltd., however respondets have opined that the avaiability for

the parking space need to be enhanced for the better service.

177

TABLE No. IV: 34

Opinion about Other services

Opinion of

Respondent

Receipt of

money

Confidentia

lity of the

information

Operation of

lockers

Carrying

outstanding

instruction

Suggestion

box

implementa

tion

Informatio

n regarding

changes of

interest

Personal

banking

No.of

Resp

onde

nt

Percent

age to

Total

No.

of

Res

pon

dent

Percen

tage to

Total

No.of

Resp

onde

nt

Percen

tage to

Total

No.o

f

Resp

onde

nt

Perce

ntage

to

Total

No.o

f

Resp

onde

nt

Perce

ntage

to

Total

No.

of

Res

pon

dent

Perce

ntage

to

Total

No.o

f

Res

pon

dent

Percen

tage to

Total

Highly

Satisfied 137 39.10 190 54.30 145 41.40 143 40.90 160 45.70 147 42.00 174 49.70

Satisfied 113 32.30 78 22.30 94 26.90 98 28.00 80 22.90 83 23.70 78 22.30

Neutral 36 10.30 34 9.70 45 12.90 46 13.10 38 10.90 55 15.70 45 12.90

Dissatisfied 40 11.40 26 7.40 36 10.30 31 8.90 36 10.30 34 9.70 32 9.10

Highly

dissatisfied 24 6.90 22 6.30 31 8.90 32 9.10 36 10.30 31 8.90 21 6.00

Total 350 100 350 100 350 100 350 100 350 100 350 100 350 100

Source: Computed from primary data

178

Table No.IV: 34 excemplifies the respondents opinion on the other services

rendered by the ICICI Bank Ltd., branches in the study area,regarding the receipt of

money, 39.1 percent of the respondents were highly satisfied, 32.3 percent of the

respondents were satisfied,10.3 percent of the person remained neutral, 11.4 percent of

the respondents were dissatisfied and 6.9 percent of respondents were highly

didsatisfied,with regard to the confidentiality of the information rendered by banks, 54.3

percent of the respondents were highly satisfied,22.3 percent of the respondents were

satisfied,9.7 percent of the person remained neutral,7.4 percent of the respondents were

dissatisfied and 6.3 percent of respondents were highly dissatisfied,with respect to the

operation of the lockers, 41.3 percent of the respondents were highly satisfied, 26.9

percent of the respondents were satisfied, 12.9 percent of the person remained neutral,

10.3 percent of the respondents were dissatisfied and 8.9 percent of respondents were

highly didsatisfied, regarding carrying outstanding instrution 40.9 percent of the

respondents were highly satisfied, 28.0 percent of the respondents were satisfied, 13.1

percent of the person were remained neutral,8.9 percent of the respondents were

dissatisfied and 9.1 percent of respondents were highly dissatisfied,regarding

implemetaion of the suggestion putforth in the suggestion box, 45.7 percent of the

respondents were highly satisfied, 22.9 percent of the respondents were satisfied, 10.9

percent of the person were remained neutral,10.3 percent of the respondents were

dissatisfied and 10.3 percent of respondents were highly dissatisfied,with respect to the

notification of the information regarding interest rates, 42 percent of the respondents were

highly satisfied, 23.7 percent of the respondents were satisfied, 15.7 percent of the person

remained neutral, 9.7 percent of the respondents were dissatisfied and 8.9 percent of

respondents were highly didsatisfied. With regard personal banking 49.7 percent of the

respondents were highly satisfied.

179

22.3 percent of the respondents were satisfied, 12.9 percent of the person

remained neutral, 9.1 percent of the respondents were dissatisfied and 6.0 percent of

respondents were highly dissatisfied, it is clear from the above analysis that trust is not a

major criterion for preference to bank choice. Safety and liquidity are important factors. It

is worth noting that banks still have the image as a safe agency for keeping the savings of

the people. This brings in more responsibility to the bankers to keep it up and using this

image for gaming competitive advantage. A change is noticed in the attitude of business

group as they prefer liquidity than safety. As the awareness level of customers improves

the preference may change to liquidity and convenience rather than safety. Here the need

for building up of good relationship with the customers is highlighted.

TABLE No. IV: 35

Descriptive statistics of the wealth of the respondents

Assets N Minimum Maximum Mean Std.

Deviation

Car 45 18000 18000 18000 -.

Own House 52 2500 32000 14644.23 8975.094

Washing Machine 86 500 3000 1601.163 610.9769

Fridge 18 100 800 519.611 264.8618

Television 191 3500 20000 10319.37 4035.382

Computer 120 600 1600 845.00 215.4144

Jewels 140 1500 2000 1680.714 86.8277

Motorcycle 43 15000 35000 26906.98 6140.474

Source: Computed from primary data

180

Table No.IV: 35 showed the descriptive statistics for the asset holding of

respondents. The mean of motor cycle and car was high registering Rs.26906.97 and

18000 respectively. The minimum range of asset holding varied between 100 and 18000

whereas the maximum range of assets varied between 800 and 35000. Standard deviation

of own house was high showing 8975.09 and the bicycle was very low indicating 86.277.

In the study area, the business group, private employees, and rest of the customers

showed keen interest on increasing the assets such as own house, car, motor cycle, cow

etc. which were the essential assets for which ICICI Bank Ltd., have been providing

loans. They did commit themselves to purchase other consumable and luxurious items

which indicated their background of living and their socio economic status in the city.

181

TABLE No. IV: 36

Opinion about Frequency of the Usage of ATM

Frequency No.of

Respondent

Percentage to

Total

Less than 3 times per month 32 9.10

3 to 5 times per month 62 17.70

5to 8 times per month 89 25.40

more than 8 times per month 167 47.70

Total 350 100

Source: Computed from the primary survey.

Table No.IV: 36 illustrates the respondents opinion on the frequency of the usage

of the ATM services by the customers, 9.1 percent of the respondents opined that they use

the ATM services less than 3 times in a month, 17.7 percent of the respondents were use

the service for 3 to 5 times, 25.4 percent of the respondents were 5 to 8 times, 47.7

percent of the respondents were using the ATM more than 8 times per month, it could be

inferred from the empirical evidence that the usage of ATM is high among the respondent

in the study area, it is also found that the respondents were quite comfortable to utilize the

electronic device for the transactions frequently.

182

TABLE No. IV: 37

Time taken to wait in queue for ATM transaction

Time No.of

Respondent

Percentage to

Total

Less Than 5 minutes 151 43.10

5 to 10 minutes 121 34.60

More than 10 minutes 78 22.30

Total 350 100

Source: Computed from the primary survey.

Table No.IV: 37 illustrates the respondents opinion of the time consumed to wait

in the queue for ATM transaction, 43.1 percent of the respondents opined that less than 5

minutes time taken, 34.6 percent of the respondents stated 5 to 10 minutes time taken,

22.3 percent of the respondents stated it took more than 10 minutes. It could inferred from

the above analysis that time taken to wait in queue for the ATM transaction is less, it

making people comfortable to spend less time for any form transaction, hence the less

consumption of the time would give satisfaction to the respondents in the study area.

183

TABLE No. IV: 38

Opinion about Time taken for process in ATM transaction

Time No.of

Respondent Percentage to Total

Less than 5 minutes 241 68.90

5 to 10 minutes 95 27.10

More than 10 minutes 14 4.00

Total 350 100

Source: Computed from the primary survey.

Table No.IV: 38 illustartes the time consumed for the ATM tranaction in the

study area, 68.9 percent of the respondents revealed that less than 5 minutes time was

taken for the tranaction, 27.1 percent of the respondents stated that 5 to 10 minutes time

was taken for the tranacation, whereas only 4 percent of respondets said that more than 10

minutes was taken for the tranactions, it could be inferred from the empirical evidence

that the very less time taken for the tranaction when compared to personal tranaction in

the bank and people were very much satisfied with the time spent for the tranaction.

184

TABLE No. IV: 39

Opinion about the location of ATM

Opinion of Respondent No.of

Respondent Percentage to Total

Highly Satisfied 234 66.90

Satisfied 56 16.00

No opinion 21 6.00

Dissatisfied 30 8.57

Highly Dissatisfied 9 2.57

Total 350 100

Source: Computed from the primary survey.

185

Table No.IV: 39 exemplifies the opinion of the respondents on the satisfaction

level of the respondents with the location of ATM provided by the ICICI Bank Ltd. 66.9

percent of the respondents were highly satisfied with the bank activities, 16 percent of the

respondents were satisfied, 6 percent of the respondents were neutral 8.57 percent of the

respondents were dissatisfied and 2.57 percent of the people were highly dissatisfied

about the location of the ATM, it could be inferred from the above analysis that the

respondents were highly satisfied with the location of ATM and in the same line the

location itself is important determinants of the satisfaction level if it is located near to

shopping complex the usage would be more hence ICICI Bank Ltd., erected the ATM

bank in such a place where the people prefer to utilize more. At the outset location of

ATM bank is highly appreciated by the respondents.

186

TABLE No. IV: 40

Opinion about the denomination required

Opinion of

Respondent No.of Respondent Percentage to Total

Always 176 50.30

Often 99 28.30

Some times 41 11.70

Rarely 21 6.00

Never 13 3.71

Total 350 100

Source: Computed from the primary survey.

Table No.IV: 40 illustrates the frequency availing the required denomination in

ATM machine, 50.3 percent of the respondents felt that it has been occurring always, 28.3

percent of the respondents opined it taking place quite often, 11.7 percent of the people

stated that sometimes it happened, 6 percent of the people said that it happened rarely,

3.71 percent of the respondents revealed that this problem never happened to them during

the transaction. It could be inferred from the empirical evidence that respondents always

have the privilege to get the required denomination from the ATM machine of ICICI

187

Bank Ltd. it is also found that people are very keen to avail the various denominations to

ease their transaction.

TABLE No. IV: 41

Opinion about Run out of cash in ATM

Opinion of

Respondent No.of Respondent Percentage to Total

Always 15 4.29

Often 23 6.57

Some times 65 18.60

Rarely 46 13.10

Never 201 57.40

Total 350 100

Source: Computed from the primary survey.

Table No.IV: 41 illustrates the frequency occurrence of run out of cash in ATM

machine, 4.29 percent of the respondents felt that it has been occurring always, 6.57

percent of the respondents opined it taking place quite often, 18.6 percent of the people

stated that sometimes it happens, 13.1 percent of the people said that it happens rarely,

57.4 percent of the respondents revealed that this problem never happened to them during

the transaction. It could be inferred from the empirical evidence that respondents have not

188

encountered the problem of run out of cash in ICICI Bank Ltd., transaction; it is also

found that banker’s commitment and periodical surveillance of the system enable them to

keep the ATM with cash which eventually triggers the satisfaction to the people at large.

TABLE No. IV: 42

Opinion about Frequency of out of order of ATM

Opinion of Respondent No.of Respondent Percentage to Total

Always 11 3.10

Often 17 4.90

Some times 39 11.10

Rarely 105 30.00

Never 178 50.90

Total 350 100

Source: Computed from the primary survey.

Table No. IV : 42 illustrates the frequency occurrence of out of order of ATM

machine, 3.1 percent of the respondents felt that it had been occurring always, 4.9 percent

of the respondents opined it taking place quite often, 11.1 percent of the people stated that

sometimes it happened, 30.0 percent of the people said that it happened rarely, 50.9

percent of the respondents revealed that this problem never happened. It could be inferred

189

from the empirical evidence that respondents have not encountered the problem of out of

order occurred to ATM of ICICI Bank Ltd., in the study area, it is also found that bankers

commitment and periodical surveillance keep the ATM machine working without any

default.

TABLE No.IV: 43

Opinion about notification displayed about the non-availability of the service

Opinion of

Respondent No. of Respondent Percentage to Total

Always 14 4.00

Often 32 9.10

Sometimes 60 17.10

Rarely 98 28.00

Never 146 41.70

Total 350 100

Source: Computed from the primary survey.

Table No. IV: .43 exemplifies the frequency occurrence of Notification about the

non-availability of the service, 4 percent of the respondents felt that it had been occurring

always, 9.1 percent of the respondents opined it taking place quite often, 17.1 percent of

the people stated that sometimes it happened, 28 percent of the people said that it

190

happened rarely, 41.7 percent of the respondents revealed that this problem never

happened. It could be inferred from the empirical evidence that respondents have received

the appropriate notification from the authorities regarding the non-availability of the

service in ATM; it also found the commitment of the bankers for displaying the

notification regarding the non-availability in the ATM.

TABLE No. IV: 44

Opinion about Card get struck in the ATM machine

Opinion of Respondent No.of Respondent Percentage to Total

Always 10 2.90

Often 43 12.30

Sometimes 29 8.30

Rarely 116 33.10

Never 152 43.40

Total 350 100

Source: Computed from the primary survey.

191

Table No. IV: 44 exemplifies the frequency occurrence of card get struck in the

ATM machine while the transaction, 2.9 percent of the respondents felt that it had been

occurring always, 12.3 percent of the respondents opined it taking place quite often, 8.3

percent of the people stated that sometimes it happened, 33.1 percent of the people said

that it happened rarely, 43.4 percent of the respondents revealed that this problem never

happened. It could be inferred from the empirical evidence that card did not get struck of

the respondents in the ATM machine, however significant portion of the respondents

revealed that their card got stuck in the ATM rarely which prompts the authorities to look

into the matter more seriously, despite of the smaller short comings generally the there

has been smooth transaction with the card through ATM.

192

TABLE No. IV: 45

Opinion about Use of other bank card in the ICICI Bank Ltd., ATM

Opinion of Respondent No.of Respondent Percentage to Total

Always 10 2.90

Often 46 13.10

Sometimes 158 45.10

Rarely 29 8.30

Never 107 30.60

Total 350 100

Source: Computed from the primary survey.

Table No. IV: 45 illustrates the frequency occurrence of use of other bank’s card

in ICICI Bank Ltd., ATM, , 2.9 percent of the respondents felt that it had been occurring

always, 13.1 percent of the respondents opined it taking place quite often, 45.1 percent of

the people stated that sometimes it happened, 8.3percent of the people said that it happens

rarely, 30.6 percent of the respondents revealed that they never used the other bank card

in ICICI ATM, it could be inferred that the respondents sometimes use other bank’s card.

193

TABLE No. IV: 46

Opinion about Provision of Transactions statement after every transaction

Opinion of Respondent No.of Respondent Percentage to Total

Highly satisfied 167 47.70

satisfied 89 25.40

Neutral 53 15.10

Dissatisfied 26 7.40

Highly dissatisfied 15 4.30

Total 350 100

Source: Computed from the primary survey.

194

Table No. IV: 46 exemplifies the opinion of the respondents on the provision of

the statement after every transaction at ATM by the ICICI Bank Ltd.,, 47.7 percent of the

respondents were highly satisfied with the bank activities, 25.4 percent of the respondents

were satisfied,15.1 percent of the respondents were neutral 7.4 percent of the respondents

were dissatisfied and 4.3 percent of the people were highly dissatisfied about the service,

it was evident from the empirical investigation that the nearly 70 percent of the

respondents were satisfied with the provision of statement in each transaction of ATM

machine, it is also found that the respondents were able to check their amount in their

respective accounts after the transactions, most of the respondents were satisfied with that

privilege offered by the ICICI Bank Ltd., in ATM transaction.

195

TABLE No. IV: 47

Opinion about Banker’s commitment to Instant rectification of problem

occurred in ATM

Opinion of Respondent No.of Respondent Percentage to Total

Highly satisfied 189 54.00

satisfied 121 34.60

Neutral 21 6.00

Dissatisfied 10 2.90

Highly dissatisfied 9 2.60

Total 350 100

Source: Computed from the primary survey.

Table No. IV: 47 exemplifies the opinion of the respondents on the bank’s

commitment to rectify the problem occurred in ATM centers, 54 percent of the

respondents were highly satisfied with the bank activities, 34.6 percent of the respondents

were satisfied,6 percent of the respondents were neutral 2.9 percent of the respondents

were dissatisfied and 2.6 percent of the people were highly dissatisfied about the service,

it could be inferred from the empirical investigation that the nearly 88 percent of the

respondents were satisfied with the approach of the bank in rectifying the problem at the

earliest, it is also found that the respondents could manage to resume their transaction

196

soon which enable them to carry out their work with more comfortably, most of the

respondents were satisfied with that privilege offered by the ICICI Bank Ltd.,

TABLE No. IV: 48

Opinion about Availability of Cheque deposit box in the ATM

Opinion of Respondent No.of Respondent Percentage to Total

Highly satisfied 201 57.40

Satisfied 94 26.90

Neutral 32 9.10

Dissatisfied 12 3.40

Highly dissatisfied 11 3.10

Total 350 100

Source: Computed from the primary survey.

197

Table No. IV: 48 illustrates the opinion of the respondents on the availability of

the cheque receiving box in ATM centers, 57.4 percent of the respondents were highly

satisfied, 26.9 percent of the respondents were satisfied, 9.1 percent of the respondents

were neutral 3.4 percent of the respondents were dissatisfied and 3.1 percent of the

people were highly dissatisfied about the service, it could be inferred from the empirical

investigation that the nearly 83 percent of the respondents were satisfied with the

availability of the cheque box in ATM, it is also found that the respondents could save

their time to deposit the cheque in the bank, since the time consumption is low for the

transactions respondents were prefer to opt the ICICI Bank Ltd., service rather than other

bank, most of the respondents were satisfied with that privilege offered by the ICICI

Bank Ltd., in ATM transaction.

198

TABLE No. IV: 49

Opinion about ATM operation

Opinion of Respondent No.of Respondent Percentage to

Total

Strongly Agree 176 50.30

Agree 101 28.90

Neither agree nor Disagree 36 10.30

Disagree 21 6.00

Strongly Disagree 16 4.60

Total 350 100

Source: Computed from the primary survey.

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Table No. IV: 49 exemplifies the opinion on the statement that the process of

ATM operation for transaction is simple and easier, 50.3 percent of the respondents

strongly agree the statement, 28.9 percent of the respondents agree the statement, 10.3

percent of the respondents neither agree nor disagree the statement, 6 percent disagree

while merely 4.6 percent strongly disagree the statement, it could be inferred from the

above empirical evidence that the respondents were highly satisfied with the simple and

easier procedure of ATM transaction, it is also found that the most of the respondents are

educated persons hence it would be easier for them furthermore respondents also opined

that even the uneducated people could afford to carry out the transaction if they taught

once, hence the overall the perception implies the ATM transaction can be carry out

without any complications.

200

TABLE No. IV: 50

Opinion about Security for ATM

Opinion of Respondent No.of

Respondent

Percentage to

Total

Strongly Agree 190 54.30

Agree 97 27.70

Neither agree nor Disagree 41 11.70

Disagree 12 3.40

Strongly Disagree 10 2.90

Total 350 100

Source: Computed from the primary survey.

201

Table No. IV: 50 demonstrates the opinion on the statement that the security is

good in ATM centers, 54.3 percent of the respondents strongly agree the statement, 27.7

percent of the respondents agree the satetment,11.7 percent of the respondents neither

agree nor disagree the statement,3.4 percent disagree while merely 2.9 percent strongly

disagree the statement, it could be inferred from the above empirical evidence that the

respondents were highly satisfied with the security arrangement made in ATM centers of

ICICI Bank Ltd.,,it is also found that the most of the respondents, generally people were

skeptical about the safety of the ATM bank during night time but the respondents opined

that they need not to bother too much since the security arrangements in the ICICI Bank

Ltd., ATM were quite good, hence the overall the perception implies the ATM transaction

can be carried out without any complications.

202

TABLE No. IV: 51

Expectation of customers on enhancement of ATM services

Source: Computed from the primary survey.

Opinion of

Respondent

Strongly

Agree % Agree %

Neither

agree

nor

Disagre

e

% Disagree % Strongly

Disagree % Total %

Increase the

withdrawal

Amount

190 54.30 97 27.7 41 11.7 12 3.4 10 2.9 350 100

Increase

Number of 167 47.70 89 25.4 53 15.1 26 7.4 15 4.3 350 100

Increase the

security 189 54.00 121 34.6 21 6.0 10 2.9 9 2.6 350 100

Increase the

ATM centers

at semi-urban

176 50.30 98 28.0 49 14.0 12 3.4 15 4.3 350 100

Mobile alert

about ATM

transactions

155 44.30 101 28.9 50 14.3 28 8.0 16 4.6 350 100

Decrease the

service charge

for other

ATM card

usage

150 42.90 89 25.4 44 12.6 44 12.6 23 6.6 350 100

Mobile alert

on the cheque

deposited in

ATM

170 48.60 96 27.4 34 9.7 30 8.6 20 5.7 350 100

203

Table No. IV: 51 exemplifies the respondents opinion on the statements regarding

the improvement of the service, with respect to the statement regarding the increase the

withdrawal amount limitation, 54.3 percent of the respondents strongly agree the

statement,27.7 percent of the respondents agree the statement, 11.7 percent neither agree

nor disagree the statement, 3.4 percent of the respondents disagree and 2.9 percent of the

respondents strongly disagree the statement, with respect to the statement regarding the

increase the ATM centers, 47.7 percent of the respondents strongly agree the

statement,25.4 percent of the respondents agree the statement, 15.1 percent neither agree

nor disagree the statement, 7.4 percent of the respondents disagree and 4.3 percent of the

respondents strongly disagree the statement, regarding the statement of increase the

security in ATM, 54 percent of the respondents strongly agree the statement,34.6 percent

of the respondents agree the statement, 6 percent neither agree nor disagree the statement,

2.9 percent of the respondents disagree and 2.6 percent of the respondents strongly

disagree the statement, regarding the statement of increase the ATM centers in peri-

urban areas, 50.3 percent of the respondents strongly agree the statement,28 percent of the

respondents agree the statement, 14.0 percent neither agree nor disagree the statement, 3.4

percent of the respondents disagree and 4.3 percent of the respondents strongly disagree

the statement, with respect to the statement regarding the mobile alert about ATM

transactions, 44.3 percent of the respondents strongly agree the statement, 28.9 percent of

the respondents agree the statement, 14.3 percent neither agree nor disagree the statement,

8.0 percent of the respondents disagree and 4.6 percent of the respondents strongly

disagree the statement, with respect to the statement regarding the decrease the service

charge to the usage other bank’s Card in ICICI ATM centers ,42.9 percent of the

204

respondents strongly agree the statement, 25.4 percent of the respondents agree the

statement, 12.6 percent neither agree nor disagree the statement.

12.6 percent of the respondents disagree and 6.6 percent of the respondents

strongly disagree the statement, with respect to the statement regarding the mobile alert

on the cheque deposited,48.6 percent of the respondents strongly agree the statement,

27.4 percent of the respondents agree the statement, 9.7 percent neither agree nor disagree

the statement,8.6 percent of the respondents disagree and 5.7 percent of the respondents

strongly disagree the statement, it could be inferred from the above empirical

investigation that the users perception on the requirement of the respondents revealed the

bankers need to enhance and expand the overall service of the ATM into larger extend. It

is also found that the respondents highly satisfied with the existing facilities provided by

the ICICI Bank Ltd., ATMs.

205

HYPOTHESES TESTING

Ho: There is no significant influence of determinants on customer satisfaction of

ICICI Bank Ltd.,.

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of

the Estimate

Durbin-Watson

1 .991(a) .982 .968 10283.786 2.081

A. Predictors: (Constant), Physical facilities, Interest rate, working Hours, service

charges, Redressal of Complaints, Bank staff Attitude, on-financial services,

B. Dependent Variable: Customer satisfaction

ANOVA (b)

Mode

l

Sum of

Squares do

Mean

Square F Sig.

1

Regression 58020786

975.632 8

7252598371

.954 68.578 .000(a)

Residual 10575625

48.895 10

105756254.

889

Total 59078349

524.526 18

A. Predictors: (Constant), Physical facilities, Interest rate, working Hours, service

charges, Redressal of Complaints, Bank staff Attitude, Non-financial services,

B. Dependent Variable: Customer satisfaction

206

Coefficients (a)

Unstandardized

Coefficients

Standardized

Coefficients t Sig.

B Std. Error Beta B Std. Error

Customer satisfaction 1209.900 2475.000 1.578 0.073

Physical facilities 0.057 0.032 -1.565 0.870 0.015

Interest rate -647.111 336.461 -1.121 0.118 0.014

working Hours 1.836 0.682 0.873 -0.172 0.023

service charges -63.058 458.260 -0.094 0.020 0.071

Redressal of Complaints -70.707 60.020 -0.176 -1.380 0.026

Bank staff Attitude -0.091 0.184 -0.271 -0.234 0.034

Non-financial services 5173.290 2505.900 0.073 -0.123 0.045

Y=α +β x1+βx2+…………..βxn

Customer satisfaction = 1209+ (-1.565- Physical facilities) + (-1.121- Interest

rate)+- (0.172-working )

(0.015) (0.014)

hours)+(0.02- service charges)+(-1.38- Redressal of Complaints)+(-0.234-

Bank staff Attitude

(0.230) (0.071) (0.026)

+(-0.123- Non-financial services)

(0.450)

207

The Multivariate Regression was applied to find how the institutional factors

attributed to customer satisfaction level of the clients of ICICI Bank Ltd.,, The

Regression result shows that the calculated F value is 1.209 which is greater than the

table value of 1.578 at 1 % level of significance.

Inference:

Since the calculated value is greater than the table value, it is inferred that

the independent variables have strong influence on determining the customer

satisfaction level of the customers in the study area, hence the null hypotheses

rejected.

Ho There is no significance Distinction between Educated member and the less

educated members in accessing the benefits of ICICI Bank Ltd.,

Benefit derived Mean S.D No.

Quick transactions 2.26 1 133

Immediate redressal of the problems 1.80 1.96 88

Availability of Loans 1.23 1.28 74

Easily Understand the new schemes 0.23 0.10 55

Total 1.66 1.64 350

Source: computed from primary data

208

ANOVA for benefit received by the educated members

Sum of Squares df Mean Square F

Sig.

Between Groups 40.591 3 13.530 5.398 **

Within Groups 446.164 178 2.507

Total 486.755 181

Source computed from primary data

The one way ANOVA was applied to find whether there is significant difference

among the educationally qualified members and educationally less qualified members in

customer satisfaction level. The ANOVA result shows that the calculated F value is 5.398

which is greater than the table value of 3.875 at 1 % level of significance. Since the

calculated value is greater than the table value, it is inferred that there is significant

difference educationally qualified members and educationally less qualified members in

the study area.

Ho. There is no significant difference among the business group and employees on

the perception on the service charges levied by ICICI Bank Ltd.,

Sum of Squares df Mean Square F-value Sig.

Between Groups 2170.316 5 434.063 3.209 Ns

Within Groups 11492.000 32 359.125

Total 13662.316 37

Source: Computed from primary data

209

One way ANOVA was applied to find whether there is significant difference among

the business group and the employees on the perception of service charges levied. The

ANOVA result shows that the calculated F value is 3.209 which are greater than the table

value of 2.512. Since the calculated value is greater than the table value, it is inferred that

there is a significant difference among the business group and the employees regarding

the service charge levied by ICICI Bank Ltd.,, hence the hypothesis rejected.

CONCLUSION

The above analysis empirically verified the various dimensions of the services

rendered by the ICICI Bank Ltd., and customer perceptions on the services have been

exhibited in the above analysis.

210

CHAPTER - V

SUMMARY OF FINDINGS, SUGGESTIONS AND CONLUSION

The survival and growth of Indian banking sector depends upon their ability to

adjust themselves to customer orientation and bring about an improvement in the

service standard which will match to global standards. Having made an in depth study

on the topic “A study on the performance of ICICI bank limited and customer

satisfaction towards e-banking services in Chennai metro” the following were the

major findings of the study.

The findings of the study can be summarized as under

1. PERFORMANCE of ICICI bank (2006-2011)

� There has been steady increase of asset holding during the study period

especially with regard to cash balance, Investment and Accumulation of

depreciation have been witnessed the considerable escalation identified.

� Total asset has shown considerable increase from 2006-07 to 2007-08 later it

has been growing with lower pace.

� Cash balance was heightened into considerable level from 2006-07 to 2007-08

but later it has been fluctuated but during 2009-10 it regained with more

positive trend, as the cash balance level subject to the Monetary policy of the

state it get fluctuated accordingly.

� Accumulation and Depreciation of the bank has been escalating with higher

level during the study period.

211

� Over all liabilities of the bank has been fluctuating during the study period as

it has been increasing initially later decreasing substantially during 2008-09

and thereafter trend tend to increase, hence the overall picture is fluctuating.

� The share capital of the bank in 2006-07 and 2007-08 were positive trend

thereafter it shows the negative trend which implies that the financial position

of the bank appears sound.

� Shareholders fund has been increasing significantly as the liability increase it

also indicates that the Good will and performance of the bank escalating as a

result of only there share holding has been increasing.

� Deposits of the bank has been shown positive trend in the early period and

tend to decrease from 2008-09.

� Loan funds shows steady growth trend during the study period,wich indicate

that the lending potentiality of the bank escalating it is also shows the financial

sound of the bank during the study period.

2. Financial services.

� The ICICI bank recorded significant growth in deposit mobilization and credit

deployment. The credit deposit ratio was found increasing over the years.

� The primary survey showed that the private company’s employees and the

business people group were the highest among the customers of ICICI bank

branches in Chennai. In Chennai 37.70 percent of their respondents were

private sector employees, 41.40 percent respondents from business group and

8.90 percent respondent from independent professional and the rest of 11.90

percent from government sector employees, students and house wives

respectively.

212

� Female respondents are scarcely found in business category. This was in

contradiction to their achievements in other spheres of life. Sample banks were

not able to attract more of them as customers through suitable deposit and

credit schemes.

� Comparatively good distribution of respondents below 30 years category

showed that the younger generations were taken care of by banking sector.

Similarly the senior citizens were also given adequate attention as customers.

Because the people working in the private sector are generally from the

younger age groups in the study area.

� The business group was found dominating the high income category and their

number was more in 78 percent of the business group people came under the

higher income group category. More than 63 percent of the sample

respondents had higher level of education and above. The salaried group had

more qualified respondents.

� It was found that 67 percent of the accounts maintained by sample banks were

less than 5 years duration. But some of the branches had more long duration

accounts. The salaried groups and the business people were maintaining the

highest number of long duration accounts.

� Majority of the respondents preferred their branch because of the Quality of

service. Convenience and popularity of branch were given subsequent

preference. While 13.70 percent customers ranked friends and relatives, 22.30

percent of the respondents opined in favour of proximity.

213

� Nearly 30 percent each of respondents only agreed the necessity of someone

known in the branch to expedite their transactions. It implies that the there are

impartial transactions taking place in the ICICI branches. It is good sign of

service provision, Familiarity of the respondents to the bank staff were

checked and found that middle level officers were more popular than other

categories.

� Regarding the speed of transactions almost all the branches across the regions

of Chennai were found more efficient. The satisfaction of southern region

respondents was higher than that of their northern region counterparts in the

matter of efficiency of transactions. The business people and the private

employees had better satisfaction than other categories. There are no Negative

values seen in withdrawal of cash, issue of demand draft and updating pass

book. Efficiency was noticed in renewal of fixed deposits.

� 37.70 percent of the respondents are very concerned about the parking space

provided by the banks, in the context of increasing population in the city, it is

very difficult to find the parking space more conveniently hence the customers

urged the bank authorities to provide the amicable parking space near to the

branches.62.30 percent of the respondents are satisfied with the good

ambience, Air-conditioned office premises, water and other facilities provided

by the bank branches.

� More than 98 percent of the respondents are satisfied with the working hours

of the bank and 87 percent of the respondents were in favour of 24 hours

service of the branches.

214

� More than 97 percent of the customers could find the time norms displayed-in

the banks. The bankers were interested in the proper display of time norms.

The awareness of the norms was also very good among all customer groups

and banks. Customers were getting an opportunity to compare the standard

fixed by IBA with the actual performance of their bankers.

� Interest rates for deposit and loans were noticed by 61 percent of respondents.

While 76 percent customers opined favourably.

� Regarding the behavioral aspects, all the branches had higher ratings in the

character of politeness, corollary to that the members of the staff were found

more enthusiastic in delivering the service to the customers in accordance with

their requirement.

� With regard to the service charges provided by the ICICI bank for various

services 65 percent of the respondents are satisfied over the charges levied and

also some customers were also concerned about the high charges, but at the

same time some respondents have said that high service charges is acceptable

when compare with the quality of service rendered by the branches.

� There has been quite positive opinion registered with regard to the common

problem encountered by the customers in the banks, 15 percent of the

respondents were opined that there is delay in service in the branches, 12.9

percent of the respondents were dissatisfied with the various service rendered

by the staff.

215

� Majority of the customers expressed satisfaction with the space available in

the branches. But poor response regarding the availability of space was

recorded among all the branches. Regarding availability of other basic

amenities like drinking water, seating facility and air condition facility, highest

satisfaction was recorded among banks and customer groups but toilet facility

and availability of reading materials were not found satisfactory.

� Although 75 percent of the respondents expressed satisfaction regarding the

number of bank offices available, the north Madras region respondents had

only 52 percent satisfaction.

� More than 37 percent of the customers visited their branches personally once

in a week. Much difference was not found in the behaviour of customer groups

and all the regions of the city respondents in this regard. The same trend was

reported in the case of visiting the branches through others or agents. A good

number of respondents take their passbook to the branches for depositing and

withdrawal of money. Majority of business people customers followed this

practice. Most of the respondents update their passbooks in less than four

times a year.

� Good clarity of passbook entries was reported by most of the customers.

Computerized entries were cited as the major reasons for clarity; Errors in the

passbook were reported by 2.7 percent respondents. The business group

reported the highest number of errors.

� More than 89 percent respondents were found giving standing instructions to

their banks. But most of them reported timely execution of such instructions

216

with maximum accuracy. Poor usage of this facility may be an indication of

the lack of proper awareness.

� About 70 percent of the sample respondents were having fixed deposits with

their branches. Almost 74 percent received intimation before maturity of their

term deposit. Nomination facility was availed by majority of the respondents.

68 percent of the respondents had the highest positive response. Among

customer groups business group, were found availing nomination facility more

than other groups.

� It was found that the availability of nomination facilities was properly

displayed by the bankers. Good response was reported from customer groups.

Nearly 72 percent respondents received advice from bank stair to use

nomination facility.

� Regarding credit related services, 67 percent of respondents were found

borrowing from their branches. Among business groups more than 8l percent

were-borrowers.74 percent of the private sector employees are borrowers.

� It was revealed that 69 percent borrowings were in the form of loans. Over

draft and cash credits were comparatively as equal as loans. About 78 percent

respondents opined for there is no need of influence of some sort to get credit

facility. 84 percent of business group were of this opinion and the need not to

have the influence of bank staff.

� The application format was found cumbersome by 43 percent customers. The

business groups were mostly dissatisfied with the application format asking of

unavailable information by bankers.

217

� A good number of respondents were still depending on money lenders for their

emergent needs and quick availability and simple formalities were quoted as

the reasons for such borrowing.

� On an aggregate 63 percent respondents were satisfied with the interest rates

on deposits. Much difference was not found in the opinion of customer groups.

Almost similar views were held in the matter of interest rate on loans.

� Interest rate was not found as a major influencing factor in the preference of

bank deposits. Safety and liquidity were ranked important but business group

gave first preference to liquidity.

� Excepting the traditional loan schemes knowledge about new credit schemes

were also sound.

� In the case of remittance services better awareness was found in all the

customers. Among the occupational and business groups, the salaried groups

had better awareness than others. Likewise the southern region of the city

respondents have more awareness in this regard when compare to the rest of

their counterparts.

� As regards financial services, out of the 14 services, listed 8 were known to

more than 89 percent of respondents. Here almost all the respondents had

better awareness. Similarly among occupational and business groups the

salaried had more awareness. But in general it can be seen that the awareness

level of the sample respondents were poor in relation to their educational back

ground.

218

3. Non- Financial services.

� The attitude of managerial category towards the customers was good in all

branches. With regard to the clerical staff of the bank respondents opined that

the almost all the staff were giving comfortable space to the customers to

accesses the good service from the banks, and no variation existed in the

discriminate values among customer groups in the rating of different cadres of

bank staff. Very high satisfaction existed regarding the presence of bank staff

during business hours. For all branches positive value was obtained.

� 6 percent were dissatisfied with the delay in loan sanctions, at the outset

proportion of the problems are relatively meager, hence it was illustrated that

the there had been very meager problems in the transactions.

� The availability of complaint box was reported by 68 percent respondents.

Good response was given by respondents in this regard. A sizable number of

customers lodged complaints to their banks and the business group had given

more complaints than others. The frequency of complaints indicated the poor

performance of the banks in certain respects. Analyzing the nature of

complaints it was found that more than 60 percent were concerning non-

availability of the parking space and followed by the Demand Draft

encashment. The Southern region had the highest number of complaints

received perhaps the awareness of the region is the primary cause for more

complaints. All customer groups were concerned with parking space; about 94

percent of the complaints were given at the branch level itself.

219

� Nearly 70 percent of respondents reported favourable treatment of their

complaints. The business group was of the opinion that their complaints were

taken sympathetically and the problem also resolved. The present working

time of the branches were found suitable to 81 percent of the respondents.

While the respondents expressed 66 percent satisfaction it was 75 percent

among customers. The business group had the highest satisfaction in this

regard. Maximum positive response was recorded regarding timely opening

and closing of branches.

� The awareness level of sample respondents with regard to deposit schemes of

the banks showed that new schemes are known to many of the customers.

� The analysis of the sources of awareness revealed that the bank staff was the

most important source for majority of customers. The media preference of the

respondents revealed that government employee customers preferred news

paper advertisement while the private employee and the business respondents

gave maximum preference to information through email and other mode of

electronic communication. It was found that banks were effectively using the

nice strategy of sending greeting cards on important Occasions to build up

customer friendship.

� As a whole 75 percent customers reported receipt of intimation to customer

meets and the participation level was also found poor. The active attitude of

bankers towards customer meets was reflected in the responses of customers.

� Banks were so keen in intimating their new schemes to their customers in

time. The response from customers was not encouraging in this respect.

Similar views were also expressed by the different occupation groups.

220

� More respondents received investment advice from banks and those received

the same found it useful. Hence banks are taking advantage of their ability to

guide the customers in their investment decisions.

� The active usage of E-Banking is very high among the customers since large

portion of the customers are using ATM services for their transactions, nearly

48 percent of the respondents were using ATM transactions more than 8 times

in a month, which implies the frequent use of this mode.

� Nearly 95 percent of the respondents were quite comfortable with the time

taken for the transactions in which 69 percent of the respondents have opined

that less than 5 minutes time taken for each transaction which enables them to

concentrate more productively in some other activities.

� Nearly 83 percent of the respondents were satisfied with the location of the

ATM centers in the city, they also stated that the availability of the ATM

centers in shopping malls and the railway stations really helpful to the

respondents to larger extent...

� 78 percent of the respondents were satisfied with the denomination provided

by the ATMs in the same line 57 percent of the respondents were highly

satisfied with the cash availability of ATMs at most of the time.

� 89 percent of the respondents were opined that they were highly satisfied with

the service rendered by the ICICI bank employees in rectifying the mistakes in

the ATMs very quickly; the instant help of the bankers really satisfied to the

customers

221

� 77 percent of the respondents were stated that their card didn’t get stuck in the

machine during the transaction.

� The people’s perception on the service delivery of the ICICI bank is very

good, the usage of the electronic devices in providing the delivery in much

enhanced manner is the key factor for the higher level of the satisfaction of the

customers, the study extensively explored the various dimensions of the

service delivery and the customer satisfaction of ICICI bank, it was found that

the respondents are satisfied with many services, in the same line the usage of

ATMs in is also studied to understand the utilization and customer satisfaction

of the E-banking system, ATM is taken as important mode to understand the

big phenomenon of E-Banking since ATM is widely used and ICICI bank is

the first ever bank which erected ATMs in Chennai city.

� It was found that the respondents are highly satisfied with the ATM service

provision of ICICI bank in larger extent in all the spheres of transactions.

222

SUGGESTIONS & RECOMMENDATIONS

Based on the findings of the study the following suggestions are put forward

for the consideration of the sample banks.

� Banks should tailor both deposit and credit schemes to attract the younger

generations. Regular contact with the students community and helping them to

solve their financial problems will bring in loyal customers in future.

� Entrepreneurial talents of women should be encouraged through proper

financial consultancy and assisting in the project formulation the bank-shy

female section should be brought in to the orbit of banks.

� The branch managers must be given adequate freedom to formulate location

specific strategies and their fear of risk should be minimized through proper

management support and motivation.

� Branch level marketing strategies should be formulated giving opportunity for

all sections of the staff to contribute their intelligence towards framing of

strategies.

� Display of time norms, interest rates and availability of nomination facilities

should be done not as a matter of compliance of R.B.l. direction is but as a felt

need.

� Employers must be given proper motivation and training in dealing with all

categories of customers.

223

� Banks should effectively introduce awareness programs in its operational area.

This will to a certain extent eliminate misunderstanding in the customers and

they will co-operate with the bankers in genuine system factors.

� Introduction of core banking is a must for survival and efficiency. This will to

a great extent reduce the customer complaints regarding delay in routine

transactions and clerical errors.

� Physical facilities of the branches, especially in the northern and western

region branches should be improved and this will create a good image in the

minds of the customers.

� Extension of business hours should be done at the earliest to suit the

convenience of different customer groups and keeping the branches open on

Sundays and public holidays will add customer satisfaction.

� Customer meetings be made more informal and the promises of previous

meetings should be given proper attention in subsequent meeting.

� Non-fund based services must be publicized and customers be encouraged to

practice using them.

� .Customers standing instructions should be promoted to the maximum as it has

wider scope in recent years.

� Collection of local and outstation cheques is handled at least possible time and

undue delay in this respect will lead to customer defection it future.

� The concept of relationship banking is practiced as the retention of an existing

customer is easier than getting a new one.

224

� Further simplification of procedures and unnecessary paper work will enhance

customer satisfaction in future.

� Simple promotion techniques like sending of greeting cards on important

festivals should not be ignored.

� Environmental scanning should be done frequently to get in touch with the

changing life style of customers.

� Market research at branch level is more realistic and should be encouraged to

the maximum.

� Personal selling is preferred by the majority of the customers surveyed and

banks should equip their sales staff to meet all such challenges.

� Two important aspects reliability and timeliness are identified to be the most

influencing factors in net banking services. These two factors may be

concentrated by service providers to remove any fundamental flaws.

� The security system in e-banking services can be improved by exploiting the

latest discoveries in theoretical computer science to convert them in to

practical implications. This process would increase the reliability and

credibility of customers.

� The operating system of e-banking and innovative technologies with new user

friendly software in regional language must be installed to remove the

stumbling blocks to the e-banking customers.

225

� In Chennai metro the closing time of bank may be extended upto 11.00 p.m,

so as to facilitate the traders and business people to deposit their daily

collections.

� Adequate ATM centers may be opened in business hub areas such as,

T.Nagar, Tambaram, Broadway, Thruvottiyur, Triplicane and the places where

the people gather such as central railway station, Marina Beach, Egmore

Railway station, Coambede bus terminal, Airport, Harbor, and Mount Road

etc.

� The bank may install no. of ATM centers in software companies situated

places of Chennai metro, particularly in south Chennai.

� The bank may concentrate on opening bank branches and ATM centers in

extended parts of Chennai metro such as Minjur, Ennore, of North Chennai,

and WestTambaram, Perungudi and Velachery of South Chennai. Where the

absence of ATM and Bank branches, is felt very much.

� Even though people have computer and internet facilities many of them do not

know how to do net banking. The ICICI Bank can plan to explain and

demonstrate how to operate net banking through programmes and

advertisement on the TV channels repeatedly. So it can reach all the people .

226

CONCLUSION

The people’s perception on the service delivery of the ICICI Bank Ltd. is very

good. The usage of the electronic devices in providing the delivery in much enhanced

manner is the key factor for the higher level of the satisfaction of the customers. The

study extensively explored the various dimensions of the service delivery and the

customer satisfaction of ICICI Bank Ltd., It was found that the respondents are

satisfied with many services, in the same line the usage of ATMs is also studied to

understand the utilization and customer satisfaction of the E-banking system. The

ATM is taken as important mode to understand the big phenomenon of E-Banking

since ATM is widely used and ICICI Bank Ltd. is the first ever bank which erected

ATMs in Chennai Metro.

SCOPE FOR FURTHER RESEARCH

Since a lion share of deposits of banks in the state is from Non-Resident

Indians, the satisfaction of these customers is of paramount importance. Further

research should concentrate on the needs and expectations of these customers.

Moreover extensive research on low level of Credit Deposit Ratio in the state is also

an area of importance.

i

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ix

APPENDICES

APPENDIX - I

BALANCE SHEET OF ICICI BANK

CAPITAL AND

LIABILITIES Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Total Share Capital 1,151.82 1,114.89 1,463.29 1,462.68 1,249.34

Equity Share Capital 1,151.82 1,114.89 1,113.29 1,112.68 899.34

Share Application Money 0.29 0 0 0 0

Preference Share Capital 0 0 350 350 350

Reserves 53,938.82 50,503.48 48,419.73 45,357.53 23,413.92

Revaluation Reserves 0 0 0 0 0

Net Worth 55,090.93 51,618.37 49,883.02 46,820.21 24,663.26

Deposits 225,602.11 202,016.60 218,347.82 244,431.05 230,510.19

Borrowings 109,554.28 94,263.57 67,323.69 65,648.43 51,256.03

Total Debt 335,156.39 296,280.17 285,671.51 310,079.48 281,766.22

Other Liabilities & Provisions 15,986.35 15,501.18 43,746.43 42,895.39 38,228.64

Total Liabilities 406,233.67 363,399.72 379,300.96 399,795.08 344,658.12

x

ASSETS Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Cash & Balances with RBI 20,906.97 27,514.29 17,536.33 29,377.53 18,706.88

Balance with Banks, Money at Call 13,183.11 11,359.40 12,430.23 8,663.60 18,414.45

Advances 216,365.90 181,205.60 218,310.85 225,616.08 195,865.60

Investments 134,685.96 120,892.80 103,058.31 111,454.34 91,257.84

Gross Block 9,107.47 7,114.12 7,443.71 7,036.00 6,298.56

Accumulated Depreciation 4,363.21 3,901.43 3,642.09 2,927.11 2,375.14

Net Block 4,744.26 3,212.69 3,801.62 4,108.89 3,923.42

Capital Work In Progress 0 0 0 0 189.66

Other Assets 16,347.47 19,214.93 24,163.62 20,574.63 16,300.26

Total Assets 406,233.67 363,399.71 379,300.96 399,795.07 344,658.11

Contingent Liabilities 883,774.77 694,948.84 803,991.92 371,737.36 177,054.18

Bills for collection

47,864.06 38,597.36 36,678.71 29,377.55 22,717.23

Book Value (Rs) 478.31 463.01 444.94 417.64 270.37

http://img1.moneycontrol.com/images/blank.gif

Source : Dion Global Solutions Limited

xi

APPENDIX - II

ICICI Bank Key Financial Ratios

Particular 201103 201003 200903 200803 200703

Deposit Ratios

Advance/Deposit Ratio 92.97 95.04 95.93 88.74 86.46

Investment/Deposit Ratio 59.77 53.28 46.35 42.68 41.15

Cash/Deposit Ratio 11.32 10.72 10.14 10.12 6.99

Income Ratios (in %)

Interest Expended/Interest Ratio 65.29 68.44 73.09 76.28 74.37

Other Income/Total Income 21.49 22.54 20.82 22.38 24.04

Interest Expended/Total Funds 4.4 4.73 5.83 6.3 5.48

Net Interest Income/Total Funds 2.34 2.18 2.14 1.96 1.89

Non-Interest Income/Total Funds 1.85 2.01 2.1 2.38 2.33

Net Profit/Total Funds 1.34 1.08 0.96 1.12 1.04

Return on Net Worth 9.66 7.96 7.83 11.75 13.37

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Source : Dion Global Solutions Limited

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APPENDIX - III

Profit and loss statement

Particular 201103 201003 200903 200803 200703

Interest Earned 25974.05 25706.93 31092.55 30788.34 21995.59

Other Income 7108.91 7480.3 8176.26 8878.85 6962.95

Total Income 33082.96 33187.23 39268.81 39667.19 28958.53

Expenditure

Total Expenditure 8805.67 9632.84 10750.31 10551.5 8407.21

Operating Profit 24277.29 23554.4 28518.5 29115.69 20551.32

Interest Expended 16957.15 17592.57 22725.93 23484.24 16358.5

Gross Profit 7320.14 5961.82 5792.57 5631.45 4192.82

Depreciation 562.44 619.5 678.6 578.35 544.78

Profit Before Tax 6757.71 5342.32 5113.97 5053.1 3648.04

Provision for Tax 2138.11 1597.78 1793.31 1569.53 947.32

Deferred Tax -531.78 -280.44 -471.67 -713.36 -446.43

Fringe Benefit Tax 0 0 34.2 39.2 36.93

Net Profit 5151.38 4024.98 3758.13 4157.73 3110.22

Adjustments Below Net Profit 0 0 0 0 0

Profit & Loss Brought Forward 3464.38 2809.65 2436.32 998.27 293.44

Appropriations 3597.57 3370.25 3384.8 2719.69 2405.39

Profit & Loss Carried Forward 5018.18 3464.38 2809.65 2436.32 998.27

EPS (in Rs) 44.72 36.1 33.76 37.37 34.58

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Book Value (in Rs) 478.29 462.99 444.92 417.64 270.34

Preference Dividend (in Rs) 0 0 0 0 0

Equity Dividend in % 140 120 110 110 100

Equity Dividend in (Rs.) 1612.58 1337.86 1224.58 1227.7 901.17

Corporate Dividend Tax 202.28 164.04 151.21 149.67 153.1

Contingent Liability 931651.6 733559 840683.4 1215361 567006.5

Extra-Ordinary Items 41.17 134.52 17.51 65.61 115.22

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Source : Dion Global Solutions Limited

xiv

APPENDIX - IV

INTERVIEW SCHEDULE

GENERAL PROFILE – I

1. Name and address :

(optional)

(Please tick the appropriate alternative)

2. Age group : up to 20 years 21-30 years

31- 40 years 41–50 years

51-60 years 61 years and above

3. Sex : Male Female

4. Education : Illiterate HSC and below

Diploma Post/Graduate

Professional degree Others

5. Employment Details : 1. Govt /Private

2. Self Employed/ Industrialist /

Agriculturist/Professional/

3. Student/Housewife/ Unemployed.

6. Martial Status : Married Single Others

7. Monthly Income : Upto Rs. 10,000 10,001 to 20,000

20,001 to 30,000 30,001 to 40,000

40,001 to 50,000 above Rs. 50,000

8. Who motivated to open account in ICICI bank and type of account?

a) Self / Parents/ Friends and relatives / Advertisements

Personal contact of bank employees/ Organizational Tie up

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others, (Please specify) ………………..

b) SB- Saving Bank /CD- Current Deposit/ FD – Fixed Deposit / RD – Recurring Deposit/ OD –

Over Draft/ Term Loan/ Home Loan/Other Facility - (Please specify)…………………………

9. What do you feel about the banking environment

Very Good Good Undecided

Not up to the mark Must improve

10. Do you get the personalized service?

Always Sometimes At random

Rarely Never

11. How long have you been the customer of the bank?

Less than 1 year

1 to 3

3 to 5

5 to 10

Above 10

12. What are the physical facilities available at the bank?

Ambience/ Parking/ Lounge / Air condition / Water /Music / Magazines /

Rest Room / Canteen / Coffee Shop / All None / other Specify………………..

13. Time of your visit to the bank:

Between …………. A.M / P.M to ………………. A.M / P.M

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14. Are you satisfied with the present working hours of your Bank?

Yes No

15. Do you want “SUNDAY BANKING”

Yes No

16. Do you favour 24 x 7 Banking?

Yes No

17. How does the bank help during your waiting period / time in the Bank?

Provides reading materials Channel music TV

Computer / Net facilities Free Phone None any other

18. Are you satisfied with the interest rates offered and charged?

Yes / No

19. What is your opinion on the service charges?

Very High/ High/ Moderate/ Low/ Very Low

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20. What is your opinion on Bank Service Charges as to the following?

(Please tick your answer in the respective boxes)

S.NO Particulars Very High High Moderate Low Very

Low

a New Cheque Book

b DD Commission

c Telegraphic Transfer

d Mail Transfer

e Bill Discounting

f Cheque / Bill Collection charge

g ATM charges

h Safety Locker charges

i Demat Charges

j Travelers Cheque charges

k Minimum Balance in a/c

l Other Transaction charges

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SERVICE STUDY - II

1. Below are given some statements about the common problems encountered in your bank branch.

Please circle the alternative that describes your reaction to them.

Always = 5; Often = 4;

Sometimes = 3; Rarely = 2; Never= 1;

Problems Always Often Sometimes Rarely Never

a. Delay in service 5 4 3 2 1

b. No proper reply to customer query 5 4 3 2 1

c. Late intimation regarding maturity of

fixed deposit receipt

5 4 3 2 1

d. Wrong entry in the pass book 5 4 3 2 1

e. cancellation of demand draft 5 4 3 2 1

f. Delay in Loans sanctions 5 4 3 2 1

g. Dissatisfaction of staff behavior 5 4 3 2 1

h. Statement of accounts 5 4 3 2 1

i. Discontinuity of serving of the personnel

who has initiated processing

5 4 3 2 1

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2. A. Have you faced any problem with your ICICI Bank? Yes/ No / If yes

B. Was it represented? Yes/No / If yes

C. To whom the problem was represented

at Branch level

at Regional office level

at Head office level

at Grievance cell

Through consumer redressal forum

D. Was the problem resolved Yes/ No / If yes

E. What was the remedy?

Tender of apology Compensation

Set right the action (e.g.: Mistake corrected in the passbook)

F. Time taken to resolve the problem

Immediately Within a week Within a fortnight

Within a month remains unattended

G. Problems so far you have faced in your ICICI Bank?

Too many Many Some Few None

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ATM SERVICES - III

1. Do you have ATM Services with your account

a) Yes b) No

2. How frequently you use ATM

a) Less than 3 times b) 3-5 times

c) 5-8 times d) More than 8 times

3. How much time do you spend waiting in queue at ATM ?

Less than 5 mins / 5 mins to 10 mins/ More than 10 mins

4. How long does it take to process your transaction at the ATM centre?

a) Less than 5 mins b) 5 mins to 10 mins

c) 10mins or more

5. Are you satisfied with the locations of ATM centres provided by your bank ?

Highly Satisfied Very Satisfied Satisfied

Less Satisfied Not Satisfied

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6. Do the ATM centres provide the denominations of currency you require ?

a) Always b) sometimes c) Never

7. Do they run out of cash?

a) Always b) Sometimes c) Never

8. How often the ATM services are out of order?

a) Always b) Sometimes c) Never

9. Are the ATM’s Inform about non – availability of service?

a) Always b) Sometimes c) Never

10. Have you experienced card getting Struck inside the

machine ?

a) Always b) Sometimes c) Never

11. Do you hold any other ATM Card of Other Bank?

Yes / No

12. Do you use other bank’s ATM Card in your branch bank ATM ?

a) Always b) Sometimes c) Never

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OPENION SURVEY - IV

Highly Satisfied = 5; Satisfied= 4;

Neutral = 3; Dissatisfied = 2; Highly dissatified= 1;

ON FINANCIAL SERVICE Highly

Satisfied

Satisfied Neutral Dissatisfied Highly

dissatisfied

a. Loans & advances

b. Bill discounting

c. Travelers Cheque

d. Export –Import Finance

e. Encashment of Cheque

f. Issue of DD

g. Issue of Cheque Book

h. Pass Book Entries

i. Dishonoured cheques

j. FDR-issue

k. Current / Saving Bank

l. Reminder as to FDR maturity

m Instant credit of cheques

N Forex Transaction

NON-FINANCIAL SERVICE

a. Locker Service

b. Payment of Bills

c. Collection of Bills

d. Sending of statement of Accounts

e. Reply to Quires

f. Service charges

g. Friendly approach of staff

h. Friendly approach of officers

i. Guidance

j. Consultancy

k. Merchant Banking

l. Acceptance of Govt. Taxes/Fees

m Portfolio Management

n. Trustee and Administration

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GENERAL OPERATIONAL OPENION - V

Below given are some statements, regarding the attitude of ICICI bank employees while

rendering services.

Please tick (�) the appropriate alternative box that best describes your experience.

Very True = 5; True = 4;

No Opinion = 3; Untrue= 2; Very Untrue= 1;

STATEMENTS Very True True No Opinion Untrue Very Untrue

Customer Friendly

Polite and Courtesy

Prompt in Customer service

Highly Informative and Helpful

Mostly available in their service

Always willing to serve service

Sound in their work

Have Good knowledge of all

schemes

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CUSTOMER SATISFACTION - VI

Please tick (√) your level of satisfaction based on your personal experience with regard to the various

types of services provided by your bank branch.

Highly Satisfied = 5; Satisfied= 4; Neutral = 3; Dissatisfied = 2; Highly dissatified= 1;

No. Services

facilities

Statement Highly

Satisfied

Satisfied Neutral Dissatisfied Highly

dissatisfied

I

Counter

Query clarification

Withdrawal of cash

Deposit of cash

Availability of denomination of

currencies

Exchange of cut notes and soil

notes

II Pass book

services

Updation of pass book

Understandability of entries in

pass book / statement of

accounts

III Cheque services

Clearing of local cheque

Collection of outstation cheque

Charges for New Cheque book

Issue of new cheque book

IV

Demand Draft

services Mail

Transfer

Telegraphic

Transfer Traveler

Cheques

Purchase of demand draft

Encashment of demand draft

Issue of duplicate demand draft

Cancellation of demand draft

V Depository

service

Issue of fixed deposit receipt

Information about date of

maturity of fixed deposit

Renewal of fixed deposit

receipt

VI Physcial structure

Up-keep of branch premises

Well furnished

Place to sit

Queuing space

Parking space

Locker space/service

VII Miscellaneous

service

Receipt of money through for in

currency

Confidentiality of information

Operation of Lockers

Carrying out standing

instruction

Suggestion box-Implementation

Information regarding changes

in interest rate

Personal Banking Services