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 : [email protected]
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: [email protected]
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.
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.
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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
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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
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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
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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.
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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.
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� 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.
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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:
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• 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.
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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).
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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.
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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
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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.
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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
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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.
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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.
199
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
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