Final Research ProjectOn

“Customer satisfaction between the Private &Nationalized banks on the basis of different

services ”

Submitted in partial fulfillment of therequirements of

Post Graduate Diploma in Business Management

Under The Guidance Of:Dr. Prithvi Yadav

(Professor - GHSIMR)

Presented By:Krishna Kumar Singh

Roll no: 1005

Batch-XIVYear-2008-10

Full Time

Dr. Gaur Hari Singhania Institute of Management &Research

Jaykaylon Colony,Kamla Nagar, Kanpur-208005

ACKNOWLEDGEMENT

I would like to extend my heartfelt gratitude to Dr. PrithviYadav for granting me this project. This project wouldn’thave been possible without the immense support and guidanceof Dr. Prithvi Yadav .He has been a pillar of strength to meand always stood by my side during the project tenure withhis innovative ideas and conversation full of force, zestand attitude.

Any piece of work is difficult to accomplish without the aidof others .A person needs the help of others in understanding a task successfully. The report bears the imprints of several helping hands to whom I owe my sense of gratitude. I am extremely grateful tomy project guide again, Dr. Prithvi Yadav (Professor, GHS-IMR), for his supreme guidance and invaluable suggestions from time to time during completion of this report.I also thanks to Mr Deepak Sharma for his valuable suggestions and supreme guidance.

My overriding debt to the library staff and Computer staff of my institute. My thanks to those company employees who spared their valuable time in fitting the questionnaire and providing useful information on the subject of the study.A report of this nature is a product of experience ofseveral persons whom I might be unable to mention.

“However I take the responsibility of all my short comings.”

KRISHNA KUMAR SINGH

TABLE OF CONTENT

Sr. No.

TOPIC PAGE NO.

1 Executive Summary iv

2 Introduction 1

3 History of Banking in INDIA

4 Private sector Bank

5 Current scenario of Banking

6 Banking in INDIA

7 Broad Classification of Banks in India

8 Customer Satisfaction & importance

9 Analysis of questionnaire and Findings and limitations

10 Conclusion

11 Bibliography

12 Annexure

Executive SummaryCustomer satisfaction is an important theoretical

as well as practical issue for most marketers and

consumer researchers Customer satisfaction can be

considered the essence of success in today’s highly

competitive world of business. Thus, the

significance of customer satisfaction and customer

retention in strategy development for a ``market

oriented’’ and ` customer focused’ firm cannot be

underestimated Consequently, customer satisfaction

is increasingly becoming a corporate goal as more

and more banks strive for quality in their products

and services .Understanding the antecedents to and

outcomes of customer satisfaction is a critical

issue for both academics and bank marketers.

Previous research has identified service quality,

expectations, disconfirmation, performance,

desires, affect and equity as important antecedents

of customer satisfaction.

Objective & Scope of research

In this study my objective is to measure &

understand customer satisfaction between the

Private & Nationalized banks on the basis of

different services.

By this study we can understand the performance of

private & nationalized bank on the basis of the

customer satisfaction, because both the types of

banks are catering nearly same products and

services to the customers but still there is some

difference between them from the customers behalf

on the basis of SERVQUAL model of Parsuraman. So

that banks can work more on their sevices in order

to satisfy the customers.

Methodology

In the research we use two models for measuring

the customer satisfactions by using SERVQUAL &

KANO model.

1.Within the domain of banking services, the

service process involves a multitude of

relationships between the performer and the

consumer. Especially, the product is the main

“instrument” for creating and offering a

quality service and, implicitly, for the

bank to prove its care for and interest

in the customer’s problems. The concept of

“care for and interest in the customer’s

problems” is tightly related to that of

providing satisfaction to the customer.

In order to establish and develop a long

term marketing relationship with customers,

banking establishments elaborate services, so

that customers benefit from effective and very

accessible services, complying at the same time

with the quality standards, as well. This

process involves the combination of the efforts

made by marketing specialists, by human

resources specialists and by the bank’s

management. The necessity to build such

relationships is given by the consumer,

staff and social-economic environment’s

desires, which are continuously changing.

Consumers, both natural and juridical

persons, are in a permanent

process of searching for products and services,

for relationships with financial

establishments, which need to be more and more

satisfactory and for an increasing quality of

services. Companies realize that investing in

long term marketing relationships with their

customers is not an expenditure , but a long

term profit.

Generally, services consumers’ dissatisfactions are

caused by the following gaps:

The gap between the consumer’s expectations and the

management’s perception of such expectations.

There are cases when the management does not

understand what is that their customers want

(both the internal and the external ones). If

managers perceive consumers’ expectations at a

level lower than the real one, the result is

constituted by the lower level of the rendered

service. This lack may be remedied by

elaborating certain marketing researches

and by a better communication between the

bank’s management and personnel.

The gap between the consumer’s necessities and the

specification of the service’s quality.

Even if the consumer’s necessities are

known, it may arise that they are not

“translated” according to the customer’s

requirements and expectations, from various

reasons: lack of financial, material or human

resources, faulty management, organizational

constraints, etc. In this case, the manager

should engage into creating the conditions for

rendering high quality services.

The gap between the quality standards and the

rendering process (“service specification”).

This incongruity refers to cases in which

the actual service rendering differs

materially form the quality standards and it

is mostly due to the degree of variability in

service rendering. Rendering services at a

qualitative level which is lower than the

specification made by the bank’s norms is the

result of the personnel’s activity, who do not

know or do not wish to render the service at

the required level.

The gap between the service rendering process and the

external communications. There are cases when the

message sent via an inadequate external

communication differs from the service

rendered by the bank, which creates confusion

among consumers’ expectations and perceptions.

It is recommended that mentioning certain

promises which may not be fulfilled, or

presenting certain irrelevant information for

target consumers, be avoided. The most

notorious model for assessing the consumer’s.

2.Kano model for customer satisfaction

measurement

The Kano Model of Customer satisfaction divides

service attributes into three categories:

threshold, performance, and excitement. A

competitive service meets basic attributes,

maximizes performances attributes, and includes

as many “excitement” attributes as possible at

a cost the market can bear.

INTRODUCTIONThe liberalization, privatization and globalization

has ushered the customer relationship management

in banks. The process of globalization and our

move towards global standards changed the

perception of customer service and the banking

endeavor to serve the customer better, resulted in

innovative banking services & products. Banks are

looking for more and more interaction with

customers to build customer relationship banking.

But to deliver an improved and in-depth

understanding of customers needs, and fully

integrated customer management system is required

along with complete transparency. In the

emerging market scenario, for survival and

growth, it is critical for a bank to align its

vision, mission, goals and objectives with

customer’s satisfaction. The marketing techniques

of banks affect the performance of banks (Kotler,

P., 2005, p.93).

The excellent and managing customer

relationship is the future of any business or

everybody’s business. Customer focusing is not be

viewed as just a business strategy but should

become a corporate mission (Shankar, A.G, 2004,

p.5). Once good service is extended to a

customer, a loyal customer will work as an

Ambassador to the bank and facilitate growth of

business (Bhaskar,P.V., 2004, p.9). Customer

Relationship Management is the vital factor to

improve the performance of the banks

(Sugnadhi, R.K.,2003, p.23). For delivering

quality service, it is imperative to have

customer orientation as a culture in the

bank. The customer orientation builds long term

relationships resulting in customer satisfaction

and cash flows to the bank (Swaroop, K.S., 2004,

p.17).

Today, the rural customers don’t any idea as

to how much time is required for any type of

banking service. The rural customers are not aware

for what purpose the loans are available and how

they can be availed (Hasanbanu, S., 2004, p.21).

The level of customer service and satisfaction

is determined by branch location and design,

variety of services, rates and charges, systems

and procedures, delegation and decentralization,

mechanization and computerization competitive

efficiency, complaint redressal and very

importantly staff skills, attitudes and responses

(Singh, S., 2004, p.30). A good customer service

in banks should have three basic tenets –

courtesy,accuracy and speed (Ganesh, C & Varghese,

M.E., 2003, p.14). The quality of products and

services is the dynamic factor for customer

satisfaction in banks (Parimal, V., 2002, p.75).

The customer care has been enjoying the

attention of the govt., the RBI and the banks

themselves. Various committees have gone into the

problem in great detail & made

recommendations, many of which have been

implemented. Despite so many measures initiated

at various levels to improve the standard of

customer service, the level of satisfaction

perceived by various segments of customers has

been low. It is in this context that customer

service has to be analyzed and appropriate

strategies drawn up, not only to attract new

customers, but also to retain existing ones. This

study focuses on the‘speed’ aspect of customer

service by assessing customers experiences with

regard to the time taken to transact

business with the partially IT oriented banks and

fully e-banks.

HISTORY OF BANKING IN INDIA

There are three different phases in the history ofbanking in India.

1) Pre-Nationalization Era.2) Nationalization Stage.3) Post Liberalization Era.

1) Pre-Nationalization Era:

In India the business of banking and

credit was practices even in very early times. The

remittance of money through Hundies, an indigenous

credit instrument, was very popular. The hundies

were issued by bankers known as Shroffs, Sahukars,

Shahus or Mahajans in different parts of the

country.

The modern type of banking, however, was

developed by the Agency Houses of Calcutta and

Bombay after the establishment of Rule by the East

India Company in 18th and 19th centuries.

During the early part of the 19th Century,

ht volume of foreign trade was relatively small.

Later on as the trade expanded, the need for banks

of the European type was felt and the government of

the East India Company took interest in having its

own bank. The government of Bengal took the

initiative and the first presidency bank, the Bank

of Calcutta (Bank of Bengal) was established in

180. In 1840, the Bank of Bombay and IN 1843, the

Bank of Madras was also set up.

These three banks also known as “Presidency Bank”.

The Presidency Banks had their branches in

important trading centers but mostly lacked in

uniformity in their operational policies. In 1899,

the Government proposed to amalgamate these three

banks in to one so that it could also function as a

Central Bank, but the Presidency Banks did not

favor the idea. However, the conditions obtaining

during world war period (1914-1918) emphasized the

need for a unified banking institution, as a result

of which the Imperial Bank was set up in1921. The

Imperial Bank of India acted like a Central bank

and as a banker for other banks.

The RBI (Reserve Bank of India) was

established in 1935 as the Central Bank of the

Country. In 1949, the Banking Regulation act was

passed and the RBI was nationalized and acquired

extensive regulatory powers over the commercial

banks.

In 1950, the Indian Banking system

comprised of the RBI, the Imperial Bank of India,

Cooperative banks, Exchange banks and Indian Joint

Stock banks.

2) Nationalization Stages:

After Independence, in 1951, the All India

Rural Credit survey, committee of Direction with

Shri. A. D. Gorwala as Chairman recommended

amalgamation of the Imperial Bank of India and ten

others banks into a newly established bank called

the State Bank of India (SBI). The Government of

India accepted the recommendations of the committee

and introduced the State Bank of India bill in the

Lok Sabha on 16th April 1955 and it was passed by

Parliament and got the president’s assent on 8th May

1955. The Act came into force on 1st July 1955, and

the Imperial Bank of India was nationalized in 1955

as the State Bank of India.

The main objective of establishing SBI by

nationalizing the Imperial Bank of India was “to

extend banking facilities on a large scale more

particularly in the rural and semi-urban areas and

to diverse other public purposes.”

In 1959, the SBI (Subsidiary Bank) act was

proposed and the following eight state-associated

banks were taken over by the SBI as its

subsidiaries.

Name of the Bank Subsidiary with

effect from

1. State Bank of Hyderabad 1st

October 1959

2. State Bank of Bikaner 1st January

1960

3. State Bank of Jaipur 1st January

1960

4. State Bank of Saurashtra 1st May 1960

5. State Bank of Patiala 1st April

1960

6. State Bank of Mysore 1st March

1960

7. State Bank of Indore 1st January

1968

8. State Bank of Travancore 1st January

1960

With effect from 1st January 1963, the

State Bank of Bikaner and State Bank of Jaipur with

head office located at Jaipur. Thus, seven

subsidiary banks State Bank of India formed the SBI

Group.

The SBI Group under statutory obligations was

required to open new offices in rural and semi-

urban areas and modern banking was taken to these

unbanked remote areas.

On 19th July 1969, then the Prime Minister, Mrs.

Indira Gandhi announced the nationalization of 14

major scheduled Commercial Banks each having

deposits worth Rs. 50 crore and above. This was a

turning point in the history of commercial banking

in India.

Later the Government Nationalized six more

commercial private sector banks with deposit

liability of not less than Rs. 200 crores on 15th

April 1980, viz.

i) Andhra Bank.ii) Corporation Bank.iii) New Bank if India.iv) Oriental Bank of Commerce.v) Punjab and Sind Bank.

vi) Vijaya Bank.

In 1969, the Lead Bank Scheme was

introduced to extend banking facilities to every

corner of the country. Later in 1975, Regional

Rural Banks were set up to supplement the

activities of the commercial banks and to

especially meet the credit needs of the weaker

sections of the rural society.

Nationalization of banks paved way for

retail banking and as a result there has been an

alt round growth in the branch network, the deposit

mobilization, credit disposals and of course

employment.

The first year after nationalization

witnessed the total growth in the agricultural

loans and the loans made to SSI by 87% and 48%

respectively. The overall growth in the deposits

and the advances indicates the improvement that has

taken place in the banking habits of the people in

the rural and semi-urban areas where the branch

network has spread. Such credit expansion enabled

the banks to achieve the goals of nationalization,

it was however, achieved at the coast of

profitability of the banks.

Consequences of Nationalization:

The quality of credit assets fell because ofliberal credit extension policy.

Political interference has been as additionalmalady.

Poor appraisal involved during the loan mealsconducted for credit disbursals.

The credit facilities extended to the prioritysector at concessional rates.

The high level of low yielding SLR investmentsadversely affected the profitability of thebanks.

The rapid branch expansion has been the squeezeon profitability of banks emanating primarilydue to the increase in the fixed costs.

There was downward trend in the quality ofservices and efficiency of the banks.

3) Post-Liberalization Era---Thrust on Quality and

Profitability:

By the beginning of 1990, the social

banking goals set for the banking industry made

most of the public sector resulted in the

presumption that there was no need to look at the

fundamental financial strength of this bank.

Consequently they remained undercapitalized.

Revamping this structure of the banking industry

was of extreme importance, as the health of the

financial sector in particular and the economy was

a whole would be reflected by its performance.

The need for restructuring the banking

industry was felt greater with the initiation of

the real sector reform process in 1992. the reforms

have enhanced the opportunities and challenges for

the real sector making them operate in a borderless

global market place. However, to harness the

benefits of globalization, there should be an

efficient financial sector to support the

structural reforms taking place in the real

economy. Hence, along with the reforms of the real

sector, the banking sector reformation was also

addressed.

The route causes for the lackluster

performance of banks, formed the elements of the

banking sector reforms. Some of the factors that

led to the dismal performance of banks were.

1.Regulated interest rate structure.

2.Lack of focus on profitability.

3.Lack of transparency in the bank’s balance

sheet.

4.Lack of competition.

5.Excessive regulation on organization structure

and managerial resource.

6.Excessive support from government.

7.Against this background, the financial sector

reforms were initiated to bring about a

paradigm shift in the banking industry, by

addressing the factors for its dismal

performance.

8.In this context, the recommendations made by a

high level committee on financial sector,

chaired by M. Narasimham, laid the foundation

for the banking sector reforms. These reforms

tried to enhance the viability and efficiency

of the banking sector. The Narasimham Committee

suggested that there should be functional

autonomy, flexibility in operations, dilution

of banking strangulations, reduction in reserve

requirements and adequate financial

infrastructure in terms of supervision, audit

and technology. The committee further advocated

introduction of prudential forms, transparency

in operations and improvement in productivity,

only aimed at liberalizing the regulatory

framework, but also to keep them in time with

international standards. The emphasis shifted

to efficient and prudential banking linked to

better customer care and customer services.

Private Sector Banks

Private banking in India was practiced since

the begining of banking system in India. The

first private bank in India to be set up in

Private Sector Banks in India was Indus Ind

Bank. It is one of the fastest growing Bank

Private Sector Banks in India. IDBI ranks the

tenth largest development bank in the world as

Private Banks in India and has promoted a

world class institutions in India.

The first Private Bank in India to receive an

in principle approval from the Reserve Bank of

India was Housing Development Finance

Corporation Limited, to set up a bank in the

private sector banks in India as part of the

RBI's liberalization of the Indian Banking

Industry. It was incorporated in August 1994 as

HDFC Bank Limited with registered office in

Mumbai and commenced operations as Scheduled

Commercial Bank in January 1995.

ING Vaysya, yet another Private Bank of India

was incorporated in the year 1930. Bangalore

has a pride of place for having the first

branch inception in the year 1934. With

successive years of patronage and constantly

setting new standards in banking, ING Vaysya

Bank has many credits to its account.

Entry of Private Sector Banks:

There has been a paradigm shift in

mindsets both at the Government level in the

banking industry over the years since

Nationalization of Banks in 1969, particularly

during the last decade (1990-2000). Having

achieved the objectives of Nationalization, the

most important issue before the industry at

present is survival and growth in the

environment generated by the economic

liberalization greater competition with a view

to achieving higher productivity and efficiency

in January 1993 for the entry of Private Sector

banks based on the Nationalization Committee

report of 1991, which envisaged a larger role

for Private Sector Banks.

The RBI prescribed a minimum paid up capital of

Rs. 100 crores for the new bank and the shares

are to be listed at stock exchange. Also the

new bank after being granted license under the

Banking Regulation Act shall be registered as a

public limited company under the companies Act,

1956.

Subsequently 9 new commercial banks have

been granted license to start banking

operations. The new private sector banks have

been very aggressive in business expansion and

is also reporting higher profile levels taking

the advantage of technology and skilled

manpower. In certain areas, these banks have

even our crossed the other group of banks

including foreign banks.

Current scenario

Currently (2007), overall, banking in

India is considered as fairly mature in terms of

supply, product range and reach-even though reach

in rural India still remains a challenge for the

private sector and foreign banks. Even in terms of

quality of assets and capital adequacy, Indian

banks are considered to have clean, strong and

transparent balance sheets-as compared to other

banks in comparable economies in its region. The

Reserve Bank of India is an autonomous body, with

minimal pressure from the government. The stated

policy of the Bank on the Indian Rupee is to manage

volatility-without any stated exchange rate-and

this has mostly been true. With the growth in the

Indian economy expected to be strong for quite some

time-especially in its services sector, the demand

for banking services-especially retail banking,

mortgages and investment services are expected to

be strong. M&As, takeovers, asset sales and much

more action (as it is unraveling in China) will

happen on this front in India.

In March 2006, the Reserve Bank of India

allowed Warburg Pincus to increase its stake in

Kotak Mahindra Bank (a private sector bank) to 10%.

This is the first time an investor has been allowed

to hold more than 5% in a private sector bank since

the RBI announced norms in 2005 that any stake

exceeding 5% in the private sector banks would need

to be vetted by them. Currently, India has 88

scheduled commercial banks (SCBs) - 28 public

sector banks (that is with the Government of India

holding a stake), 29 private banks (these do not

have government stake; they may be publicly listed

and traded on stock exchanges) and 31 foreign

banks.

They have a combined network of over 53,000

branches and 17,000 ATMs. According to a report by

ICRA Limited, a rating agency, the public sector

banks hold over 75 percent of total assets of the

banking industry, with the private and foreign

banks holding 18.2% and 6.5% respectively.

BANKING IN INDIA

Overview of Banking:

Banking Regulation Act of India, 1949

defines Banking as “accepting, for the purpose of

lending or of investment of deposits of money from

the public, repayable on demand or otherwise or

withdrawable by cheque, draft order or otherwise.”

The Reserve Bank of India Act, 1934 and the Banking

Regulation Act, 1949, govern the banking operations

in India.

Organizational Structure of Banks in India:

In India banks are classified in various categories

according to differ rent criteria. The following

charts indicate the banking structure:

Broad Classification of Banks in India:

1)The RBI: The RBI is the supreme monetary and

banking authority in the country and has the

responsibility to control the banking system in

the country. It keeps the reserves of all

Reserve Bank of India

Commercial Banks

Co-operative Banks

Development Banks

Nationalized

Private

Short-term credit

Long-term credit

Agricultural Credit

Urban Credit

EXIM Industrial

Agricultural

scheduled banks and hence is known as the

“Reserve Bank”.

2)Public Sector Banks:

State Bank of India and its Associates (8)

Nationalized Banks (19)

Regional Rural Banks Sponsored by Public Sector

Banks (196)

(3) Private Sector Banks:

Old Generation Private Banks (22)

Foreign New Generation Private Banks (8)

Banks in India (40)

(4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks

Primary Agricultural Credit Societies

Land Development Banks

State Land Development Banks

(5) Development Banks: Development Banks mostly

provide long term finance for setting up

industries. They also provide short-term finance

(for export and import activities)

Industrial Finance Co-operation of India (IFCI)

Industrial Development of India (IDBI)

Industrial Investment Bank of India (IIBI)

Small Industries Development Bank of India

(SIDBI)

National Bank for Agriculture and Rural

Development (NABARD)

Export-Import Bank of India

Role of Banks:

Banks play a positive role in economic

development of a country as repositories of

community’s savings and as purveyors of credit.

Indian Banking has aided the economic development

during the last fifty years in an effective way.

The banking sector has shown a remarkable

responsiveness to the needs of planned economy. It

has brought about a considerable progress in its

efforts at deposit mobilization and has taken a

number of measures in the recent past for

accelerating the rate of growth of deposits. As

recourse to this, the commercial banks opened

branches in urban, semi-urban and rural areas and

have introduced a number of attractive schemes to

foster economic development.

The activities of commercial banking have

growth in multi-directional ways as well as multi-

dimensional manner. Banks have been playing a

catalytic role in area development, backward area

development, extended assistance to rural

development all along helping agriculture,

industry, international trade in a significant

manner. In a way, commercial banks have emerged as

key financial agencies for rapid economic

development.

By pooling the savings together, banks can

make available funds to specialized institutions

which finance different sectors of the economy,

needing capital for various purposes, risks and

durations. By contributing to government

securities, bonds and debentures of term-lending

institutions in the fields of agriculture,

industries and now housing, banks are also

providing these institutions with an access to the

common pool of savings mobilized by them, to that

extent relieving them of the responsibility of

directly approaching the saver. This intermediation

role of banks is particularly important in the

early stages of economic development and financial

specification. A country like India, with different

regions at different stages of development,

presents an interesting spectrum of the evolving

role of banks, in the matter of inter-mediation and

beyond.

Mobilization of resources forms an

integral part of the development process in India.

In this process of mobilization, banks are at a

great advantage, chiefly because of their network

of branches in the country. And banks have to place

considerable reliance on the mobilization of

deposits from the public to finance development

programmes. Further, deposit mobalization by banks

in India acquired greater significance in their new

role in economic development.

Commercial banks provide short-term and

medium-term financial assistance. The short-term

credit facilities are granted for working capital

requirements. The medium-term loans are for the

acquisition of land, construction of factory

premises and purchase of machinery and equipment.

These loans are generally granted for periods

ranging from five to seven years. They also

establish letters of credit on behalf of their

clients favouring suppliers of raw

materials/machinery (both Indian and foreign) which

extend the banker’s assurance for payment and thus

help their delivery. Certain transaction,

particularly those in contracts of sale of

Government Departments, may require guarantees

being issued in lieu of security earnest money

deposits for release of advance money, supply of

raw materials for processing, full payment of bills

on the assurance of the performance etc. Commercial

banks issue such guarantees also.

Customer Services in Commercial Banks:

Customer service is the service provided

in support of a bank’s core products. Customer

service often includes answering questions;

handling complaints. Customer service can occur on

site (as when an onstage employee helps a customer

or answers a question) or it can occur over the

phone or the Internet. Quality customer service is

essential to building cordial customer

relationship.

Banking being a service industry, a lot

depends on efficient and prompt customer service.

Customer service is the most important duty of the

banking operations. Prompt and efficient service

with smile will develop good public relations

reduce complaints and increase business.

Why is Customer Service Important?

1.Changing customer expectations: Today the

customer is more demanding and more

sophisticated than he or she was thirty years

ago.

2.The increased importance of customer service:

With changing customer expectations,

competitors are seeing customer service as a

competitive weapon with which they

differentiate their products and services.

3.The need for a relationship strategy: To ensure

that a customer service strategy that will

create a value preposition for customers should

be formulated implemented and controlled. It is

necessary to give it a central role and not one

that is subsumed in the various elements of the

marketing mix.

The customer is the kingpim in growth

organizations like commercial banks. Only those

institutions which work according to his dictates

will flourish. Quality, Consistency and Durability

at low price are the final expectations of a

customer. Quality will have to be unambiguous, of

world class quality. Quality cannot be of minimum

acceptable standards. Customer responsiveness must

be quick and also competent. Speed, performance and

cost will be the new values “mantra” for success.

The ten key areas of customer’s services to be

attended timely and regularly are:

i. Submission of statement of A/Cs to customers

ii. Updating of savings pass books.

iii. Teller system efficiency.

iv. Cleanliness and Upkeep of premises.

v. Intermediate Credit for institution

cheques/land bills.

vi. Advance intimation to customers for rewards of

Term Deposits Receipts on maturity.

vii. Advance for Debit/credit to accounts.

viii. Punctuality of staff.

Customer Satisfaction

Customer satisfaction refers to how satisfied

customers are with the products

or services they receive from a particular agency.

The level of satisfaction is

determined not only by the quality and type of

customer experience but also

by the customer’s expectations.

A customer may be defined as someone who:

1. has a direct relationship with, or is

directly affected by your bank

2. receives or relies on one or

more of your bank’s services or

products. Customers in human services

are commonly referred to as service

users,consumers or clients. They can be

individuals or groups.An organisation

with a strong customer service culture

places the customer at the centre

of service design, planning and

service delivery. Customer centric

organisations will:

1.determine the customers expectations when they

plan

2.listen to the customer as they design

3.focus on the delivery of customer service

activities

4.Value customer feedback when they measure

performance.

Importance of customer satisfaction

There are a number of reasons why customer

satisfaction is important in

banking Sector:

1. Meeting the needs of the customer is the

underlying rationale for the existence of

community service organizations. Customers

have a right to quality services that

deliver outcomes.

2. Organizations that strive beyond minimum

standards and exceed the expectations

of their customers are likely to be

leaders in their sector.

3. Customers are recognized as key

partners in shaping service

development and assessing quality of

service delivery.

The process for measuring customer satisfaction and

obtaining feedback on organizational performance

are valuable tools for quality and continuous

service improvement.

Statement of Problem:

The research is carried on in a proper planned and

systematic manner. Private Banks provide more

satisfaction to their customers in comparison to

the nationalized banks in terms of services &

helpfulness.

Research Design:

The research design of this project is exploratory.

Though each research

study has its own specific purpose but the research

design of this project on

customer satisfaction is exploratory in nature as the

objective is the development of the hypothesis and

testing of it.

METHODOLOGY

Every project work is based on certain methodology,

which is a way to

systematically solve the problem or attain

its objectives. It is a very

important guideline and lead to completion of any

project work through

observation, data collection and data analysis.

According to Clifford Woody,

“Research Methodology comprises of defining

& redefining problems, collecting, organizing

&evaluating data, making deductions &researching to

conclusions.”

Accordingly, the methodology used in the project is

as follows: -

Defining the objectives of the study. Framing of

questionnaire keeping objectives in mind

(considering the objectives)

1.Feedback from the customer

2.Analysis of customer

3.Conclusion, findings and suggestions.

Sampling Technique Used:

This research has used convenience random sampling

technique.

Convenience sampling technique: Convenience random

sampling is

used in exploratory research where the researcher

is interested in getting an

inexpensive approximation of the truth. As the name

implies, the sample is

selected because they are convenient.

Selection of Sample Size:

For the survey, a sample size of 50 has been taken

into consideration.

Sources of Data Collection:

Research will be based on only one source Primary

data

PRIMARY DATA:

Questionnaire

Primary data was collected by preparing

questionnaire for customers. The questionnaire was

filled through hard copy questionnaire.

Statistical Tools Used

The main statistical tools used for the collection

and analyses of data in this

project are:

Questionnaire is based on servqual model of

Parshuramn.

Discriminate analysis.

Limitations of study

Due to the following unavoidable and uncontrollable

factors the factors, the

result might not be accurate. Some of the problems

faced while conducting

the survey are as follows:-

1.Time and cost constraints were also there.

2.Chances of some biasness could not be

eliminated.

3.A Samples size of fifty has been use due to

time limitations.

4.A majority of respondents show lack of

cooperation and are biased towards their own

opinions.

Annexure

Bank customer Survey QuestionnaireQ1 In which bank you have your account?

a. SBIb. Punjabc. ICICId. HDFCe. Others

Q2 Do you have different account into different banksa. Yes b. No

If yes than which one is preferable in above banks or any others (Please mention the name) ……………………………………………………………….Q3 How long you have banking with your current bank?

a. Less than 6 monthsb. More than 6months but less than 1 yearc. 1-5 Yeard. Over 5 years

Q4 How often you visit the bank ?a. 1-2 times per weekb. 3 or more times per weekc. Once per monthd. Every day

Q5 What transaction you completed in past three days in bank?

a. Withdrawing/depositing moneyb. Opening accountc. Closing an accountd. Applying for a loane. Applying for a creditf. Online banking

Q6 What is the main reason for banking with your bank?

a. Customer serviceb. Rate of interest for the loans or depositc. Products & servicesd. Others(…………………………………..)

Q7 Please rate your bank on the basis of Excellent Good Average Poora. Cleanliness b. Locationc. Banking Hrsd. Parking facilitye. Building

Q8 Overall, how satisfied are you with your bank Strongly Satisfied Satisfied Dissatified StronglyDissatisfied a. Service 1

2 3 4b. Helpfulness 1

2 3 4c. Efficiency 1

2 3 4d. Accuracy 1

2 3 4e. Transaction time 1

2 3 4f. Grooming 1

2 3 4g. Knowledge 1

2 3 4h. Confidentiality 1

2 3 4i. Range of product & 1 2

3 4

Services

Name - ……………………………………………………..Age - …………………………………………………………Occupation -………………………………………………Mobile No (if any) -…………………………………....