Customer Satisfaction in the Banking Industry India

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ACKNOWLEDGEMENT

Apart from the efforts of me, the success of project

depends largely on the encouragement and guidelines of

many others. I take this opportunity to express my

gratitude to the people who have been instrumental in the

successful completion of this project.

I would like to show my greatest appreciation to Prof.

______________ . I cant say thank you enough for her

tremendous support and help. I feel motivated and

encouraged every time under her guidance. Without her

encouragement and guidance this project would not have

materialized.

The guidance and support received from all the members

who contributed and who are contributing to this project,

was vital for the success of the project. I am grateful for

their constant support and help.

XYZ


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ROLL NO.

1852

Table of contents

S.No

Topics PageNo.

1 ABSTRACT 1

2 EXECUTIVE SUMMARY 2-3

3 INTRODUCTION

Background Banking in India

Major private banks in India

Case Studies - Navision - Private

Bank (ERP Implementation)

Research Questions

4-15

4

6

9

11

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4 MEASURING CUSTOMER SATISFACTION

IN THE BANKING INDUSTRY

18-23

5 BANKING INDUSTRY : AN OVERVIEW 24-36

6 RESEARCH METHODOLOGY 37

7 DATA ANALYSIS AND FINDING 38

8 RECOMMENDATIONS 62

9 LIMITATIONS OF THE STUDY 63

10 BIBLIOGRAPHY 64


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ABSTRACT

As in so many other industries, banks are striving hard tobecome increasinglycustomer- centric in order to survive and grow. Achievingthis customer focus requires retaining of existingcustomers by providing quality services. In thecompetitive market, every individual is in need of betterservices. If you fail to provide required service, they willswitch over to another bank which provides better qualityservices. The present paper discusses issues relating tocustomer services in both the private sector and publicsector banks . In order to understand the customer

perception towards services rendered by both the banks,many attributes such as cooperation & Behavior of staff,ATM services, Basic facilities, CHEQUE collection time etc.were considered. The study reveals that PRIVATE bank ismuch ahead of PUBLIC bank in providing quality servicesto their customers.

Keywords : ATMs facilities , internet banking, mobile

banking ,Bank Statement of Account, Token System, DropBoxes, Fake Notes, ,Customer Perception

OBJECTIVES OF THE STUDY:

The main objective of the study is to know the customer

perception towards the services rendered by public sectorbanks and private sector banks. A comparative analysis ofservices rendered by the public and private sector banksis undertaken under the present study.

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COMPARATIVE STUDY OF CUSTOMER

SATISFACTION IN PUBLIC SECTOR AND

PRIVATE SECTOR BANKS

EXECUTIVE SUMMARY

The working of the customer's mind is a mystery which is

difficult to solve and understanding the nuances of what

customer satisfaction is, a challenging task. This exercise

in the context of the banking industry will give us an

insight into the parameters of customer satisfaction and

their measurement. In the organised segment, banking

system occupies an important place in nations economy.

It plays a pivotal role in the economic development of a

country and forms the core of the money market in an

advanced country. The commercial banks in India

comprise of both Public sector as well as private sector

banks. There are total 28 Public sector and 27 privatesector banks are functioning in the country presently.

Banks have to deal with many customers everyday and

render various types of services to its customer.It's a well

known fact that no business can exist without customers.

Not so long ago, accessing our own money was about

setting aside a couple of hours, getting to the bank before

closing time, standing in one queue to get a token and

then in another to collect the cash. Those were the pre-economic reforms days, when the banking sector primarily

consisted of public sector banks. The banking industry

like many other financial service industries is facing a

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rapidly changing market, new technologies, economic

uncertainties, fierce competition and more demanding

customers and the changing climate has presented an

unprecedented set of challenges . Banking is a customer

oriented services industry, therefore, the customer is thefocus and customer service is the differentiating factors.

The banking industry in India has undergone sea changesince post independence. More recently, liberalization, theopening up of the economy in the 90s and thegovernment's decision to privatize banks by reduction instate ownership culminated in the banking reforms basedon the recommendations of Narasimha Committee. Theprime mover for banks today is profit, with clearindications from the government to 'perform or perish'.Banks have also started realizing that business dependson client service and the satisfaction of the customer andthis is compelling them to improve customer service andbuild up relationship with customers.

The main driver of this change is changing customerneeds and expectations. Customers in urban India nolonger want to wait in long queues and spend hours inbanking transactions. This change in customer attitudehas gone hand in hand with the development of ATMs,phone and net banking along with availability of serviceright at the customer's doorstep. With the emergence ofuniversal banking, banks aim to provide all bankingproduct and service offering under one roof and theirendeavor is to be customer centric. With the emergence ofeconomic reforms in world in general and in India inparticular, private banks have come up in a big way withprime emphasis on technical and customer focused issues.

The purpose of this paper is to compare the public sectorbanks and private sector banks in terms of customersatisfaction and to find out the various reasons ofcustomer dissatisfaction in these banks. The data was

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collected by getting the questionnaire filled by therespondents who were using the banking services.

INTRODUCTION

BACKGROUND

In the organized segment, banking system occupies an

important place in nations economy. It plays a pivotal role

in the economic development of a country and forms thecore of the money market in an advanced country. The

commercial banks in India comprise of both Public sector

as well as private sector banks. There are total 28 Public

sector and 27 private sector banks are functioning in the

country presently. Banks have to deal with many

customers everyday and render various types of services

to its customer.It's a well known fact that no business can

exist without customers.

Customer satisfaction, a business term, is a measure ofhow products and services supplied by a company meet orsurpass customer expectation. It is seen as a keyperformance indicator within business. In a competitive

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marketplace where businesses compete for customers,customer satisfaction is seen as a key differentiator andincreasingly has become a key element of businessstrategy. Customer satisfaction is an ambiguous and

abstract concept and the actual manifestation of the stateof satisfaction will vary from person to person and serviceto service. The state of satisfaction depends on a numberof both psychological and physical variables.

The banking industry like many other financial serviceindustries is facing a rapidly changing market, newtechnologies, economic uncertainties, fierce competitionand more demanding customers and the changing climate

has presented an unprecedented set of challenges .Banking is a customer oriented services industry,therefore, the customer is the focus and customer serviceis the differentiating factors.

The banking industry in India has undergone sea changesince post independence. More recently, liberalization, theopening up of the economy in the 90s and thegovernment's decision to privatize banks by reduction instate ownership culminated in the banking reforms based

on the recommendations of Narasimha Committee. Theprime mover for banks today is profit, with clearindications from the government to 'perform or perish'.Banks have also started realizing that business dependson client service and the satisfaction of the customer andthis is compelling them to improve customer service andbuild up relationship with customers.

With the current change in the functional orientation ofbanks, the purpose of banking is redefined. The main

driver of this change is changing customer needs andexpectations. Customers in urban India no longer want towait in long queues and spend hours in bankingtransactions. This change in customer attitude has gonehand in hand with the development of ATMs, phone and

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net banking along with availability of service right at thecustomer's doorstep. With the emergence of universalbanking, banks aim to provide all banking product andservice offering under one roof and their endeavor is to be

customer centric. With the emergence of economicreforms in world in general and in India in particular,private banks have come up in a big way with primeemphasis on technical and customer focused issues.

The word private means that customer services arefocused on more individually rather than bulk customer or

retail banking which more likely to go for transactionpersonally more than cooperation and other banks oftenby means of devoted bank advisers. Private banking andprivate bank is two different thing, they should not beconfused with each other as private bank are notintegrated.

BANKINg IN INDIA

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Banking in India originated in the last decades of the 18thcentury. The first banks were The General Bank of India,which started in 1786, and Bank of Hindustan, whichstarted in 1790; both are now defunct. The oldest bank inexistence in India is the State Bank of India, whichoriginated in the Bank of Calcutta in June 1806, which

almost immediately became the Bank of Bengal. This wasone of the three presidency banks, the other two beingthe Bank Of Bombay and the Bank Of Madras, all three ofwhich were established under charters from the British

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East India Company. For many years the Presidency banksacted as quasi-central banks, as did their successors. Thethree banks merged in 1921 to form the IMPHERICAL BankOf India which, upon India's independence, became the

State Bank Of India.Deposits upto Rs 1 lac are insured by DICGC in all

private, public sector and cooperative banks. Thus, if youhave deposits of less than Rs 1 LAKHS in individualbanks, then you don't have to worry at all.India has one of the most robust banking systems in theworld and there is almost zero probability that any of thelarger banks will ever fail.RBI has a lot of tools like CRR and it is very effective inregulating risk in the financial system.Even if a bank fails, RBI is most likely to intervene andreturn deposits bank to the depositors.(Share holders maylose everything in such a case).Banks (public sector and private) are limited liabilitycompanies. If they fail, their promoters cannot be forcedto pay for the deposits, unlessthey have committed fraudand swindled funds of the bank. e.g. SBI gives risky loans,loses lot of money and collapses. In such a case, thegovernment is not under any legal obligation to pay the

depositors.

However, if the bank lost money due to fraudulentpractices of the management, the government may beforced to pay back.

I think in both cases, RBI would intervene and returnmoney back to depositors. A collapsing bank can do a lotof damage to the financial system of a country. It is a

better choice for RBI (both from political as well aseconomic viewpoint) to return the deposits. than to let thecustomers suffer huge financial losses.

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Initially all the banks in India were private banks, whichwere founded in the pre-independence era to cater to thebanking needs of the people. In 1921, three major banksi.e

Banks of Bengal Bank of Bombay and Bank of Madras

,Merged to form Imperial Bank of India. In 1935, theReserve Bank of India (RBI) was established and it tookover the central banking responsibilities from theImperial Bank of India, transferring commercial bankingfunctions completely to IBI. In 1955, after thedeclaration of first-five year plan, Imperial Bank of

India was subsequently transformed into STATE BANKOF INDIA.

Following this, occurred the nationalization of majorbanks in India on 19 July 1969. The Government of Indiaissued an ordinance and nationalized the 14 largestcommercial banks of India, including Punjab NationalBank (PNB), Allahabad Bank, CANARA Bank, CentralBank of India, etc. Thus, public sector banks revived totake up leading role in the banking structure. In 1980,the GOI nationalized 6 morecommercial banks, with control over 91% of bankingbusiness of India.

In 1994, the Reserve Bank Of India issued a policy ofliberalization to license limited number of privatebanks, which came to be known as New Generationtech-savvy banks. Global Trust Bank was, thus, the firstprivate bank after liberalization; it was later

amalgamated with Oriental Bank of Commerce (OBC).Then Housing Development Finance Corporation Limited(HDFC) became the first (still existing) to receive an 'in

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principle' approval from the Reserve Bank of India (RBI)to set up a bank in the private sectors..

At present, Private Banks in India include leading banks

like ICICI Banks, ING Vysya Bank, Jammu & KashmirBank, Karnataka Bank, Kotak Mahindra Bank, SBICommercial and International Bank, etc. Undoubtedly,being tech-savvy and full of expertise, private bankshave played a major role in the development of Indianbanking industry. They have made banking moreefficient and customer friendly. In the process theyhave jolted public sector banks out of complacency andforced them to become more competitive.

Major private banks in India

BANK OF RAJASTHAN

A leading private sector bank, the Bank of Rajasthanwas founded on the auspicious day of AKSHYK TRITIYAon May 8, 1943, at Udaipur. SHRI RAI BAHADUR, thenfinance minister of the erstwhile MEWAR Government,extensively contributed towards the establishment ofthe Bank.

CATHOLIC SYRAIN BANK

With the SWADESHI Movement of early 20th century asits base, Catholic Syrian Bank was incorporated on 26th

November 1920, in the THISSUR district of Kerala. Thebank commenced its operations on 1st January 1921,with an authorized capital of Rs. 5 lakhs and a paid upcapital of rs.45637.

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DHANLAKSHAMI BANK

The foundation of DHANLAKSHAMI Bank Limited was

laid down on 14th November 1927, in the THRISSURdistrict of Kerala. A group of innovative entrepreneurshad started the bank with a capital of Rs.11,000 andonly 7 employees.

HDFC BANK

Housing Development Finance Corporation Limited,more popularly known as HDFC Bank Ltd, wasestablished in the year 1994, as a part of the

liberalization of the Indian Banking Industry by ReserveBank of India (RBI). It was one of the first banks toreceive an 'in principle' approval from RBI, for settingup a bank in the private sector.

ICICI BANK

ICICI Bank started as a wholly owned subsidiary of ICICILimited, an Indian financial institution, in 1994. Four

years later, when the company offered ICICI Bank'sshares to the public, ICICI's shareholding was reducedto 46%. In the year 2000, ICICI Bank offered made anequity offering in the form of ADRs on the New YorkStock Exchange (NYSE)

JAMMU AND KASHMIR BANK

The origin of Jammu and Kashmir Bank Limited, morecommonly referred to as J&K Bank, can be traced back

to the year 1938, when it was established as the firststate-owned bank in India. The bank was incorporatedon 1st October 1938 and it was in the following year(more precisely on 4th July 1939) that it commenced its

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business, in Kashmir (India).

KOTAK MAHINDRA BANK OF INDIA

KOTAK Mahindra Bank is one of India's leading financialprivate banking institutions. It offers banking solutionsthat covers almost every sphere of life. Some of itsfinancial services include commercial banking, stockbroking, mutual funds, life insurance and investmentbanking.

SBI COMMERCIAL AND INVESTMENT BANKS

SBI Commercial and International Bank, (SBICI) is acompletely owned private auxiliary of India's biggestbanking and financial services set up, the State Bank ofIndia. Established in 1995 to back SBI's corporate andinternational banking services, the SBI Commercial andInternational Bank is the only bank in India to be beenawardedISO-9002 quality systems certification for the Bank as a

whole.

UTI BANK

Axis Bank was formed as UTI when it was incorporatedin 1994 when Government of India allowed privateplayers in the banking sector. The bank was sponsoredtogether by the administrator of the specifiedundertaking of the Unit Trust of India, Life InsuranceCorporation of India (LIC) and General Insurance

Corporation ltd.

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.

Case Studies -Navision - Private Bank (ERP

Implementation)

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The client is a major global financial services

provider engaged in retail and commercial

banking, credit cards, investment banking,

wealth management and investment

management services, with an extensive

international presence in Europe, the USA,

Africa and Asia.

The client wanted implementation of a suitable

Financials System, which will eliminate the

need for manual corrections and would have

interfaces with the existing operational system

as well as the global SAP for group reporting

needs.

Pain Areas:

Pain areas of the client were as follows:There were limitations in generation of

accounting file from core banking there

by requiring manual intervention for

upload of correct data to ERP.

The group ERP was in line with group

policies there by restricting its usage as

complete General Ledger solution for

local regulatory reporting.

Adjustment entries received from

operations every month and it took 4 -5

working days to get the entries attested

and cleared.

Entries were to be maintained Core

Banking System as well as Excel, with

corrections manually maintained in

Customer Case Studies

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excel due to some system limitations.

Indian GAAP demands detailed level of

reporting where as GL's available in

group SAP were limited there by

restricting the ERP usage for Localreporting purpose.

Number of adjustment entries was

numerous ranging from 200 - 220 every

reporting date, there by making the

process very time consuming and

cumbersome.

Manual intervention in maintaining the

entries in Excel posed operational risk.

Fixed Asset Management was done

manually.

Tax and regulatory reports were

manually maintained.

The Solution:

Direction studied the requirements and

implemented Microsoft Dynamics NAV,

comprising of the following modules:

General Ledger

Cash & Bank Management

Work Flow Management

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Accounts Payable

Fixed Assets

The following interfaces were developed

and implemented.

Interface with Core Banking Solution to

accept General Ledger accounting

transactions.

Interface with group ERP by means of

generating output files in format

required by these systems.

File Upload to Citibank for Vendor

Payments.

The following were additionally

implemented:

Standard Navision reports pertaining to

Financial Management

Customized Reports

Customized authorization matrix

Automatic posting of Currency

Revaluation Journal

Implementation of CWIP process

Generation of automatic positioning JVfor cross currency operations

The following add on modules were also

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implemented.

Work Flow

The implementation enabled the client toget up to date information on various

operational aspects of the company,

helped in reducing the month end

reporting cycle.

Research Questions:

To find out the level of expectation and the level of

perception of the customers from the services offered

by the banks.

To compare the level of perception and expectation of

the services offered by the banks. To know which service quality dimension the bank is

performing well and in which dimension it needs

improvement.

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To know the preference towards the public sector andprivate sector banks

To what extent consumers in Chandigarh region aresatisfied as regard to sector banks.

SCOPE OF THE STUDY:

The study has been conducted with a variety of important

objectives in mind. The following provides the main

objectives that have been tried to achieve through this

study. The extent to which these objectives have been

met could judged from the conclusions and suggestionswhich appear in the later of this study. Questionnaires

were made and was distributed to 100 people which

include employed , unemployed and housewives.

THE CHIEF OBJECTIVES OF THIS STUDY:

1. To find the bank sector which is largely availed by the

customers.

2. To study the factors influencing the choice of a bankfor availing services.

3. To find and compare the satisfaction level of

customers in public and private sector banks .

4. To study the problems faced by the customers..

LITERATURE REVIEW

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Not so long ago, accessing our own money was about

setting aside a couple of hours, getting to the bank before

closing time, standing in one queue to get a token and

then in another to collect the cash. Those were the pre-

economic reforms days, when the banking sector primarilyconsisted of public sector banks.

Cut to the present day and the nature of banking has

changed beyond recognition. With ATM cards, simple

banking transactions like withdrawing and depositing

money are easier than ever before.

Even when it comes to products, the changes have been

many. Graduating from simple savings accounts and fixed

and recurring deposits, banks now offer a host of products

like special savings account and sweep-in-account, no

frills accounts and easy receive account. Private sector

banks may have taken the lead, but public sector banks,

with their vast client base and unparalleled treasury of

trust, are evolving their own brand of customer-

friendliness.

Because satisfaction is basically a psychological state,

care should be taken in the effort of quantitative

measurement, although a large quantity of research in

this area has recently been developed. Work done by

Berry (Bart Allen) and Brodeur between 1990 and 1998

defined ten 'Quality Values' which influence satisfactionbehavior, further expanded by Berry in 2002 and known as

the ten domains of satisfaction. These ten domains of

satisfaction include: Quality, Value, Timeliness, Efficiency,

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Ease of Access, Environment, Inter-departmental

Teamwork, Front line Service Behaviors, Commitment to

the Customer and Innovation. These factors are

emphasized for continuous improvement and

organizational change measurement and are most oftenutilized to develop the architecture for satisfaction

measurement as an integrated model. Work done by

Parasuraman, Zeithaml and Berry (Leonard L) between

1985 and 1988 provides the basis for the measurement of

customer satisfaction with a service by using the gap

between the customer's expectation of performance and

their perceived experience of performance. This provides

the measurer with a satisfaction "gap" which is objectiveand quantitative in nature. Work done by Cronin and

Taylor propose the "confirmation/disconfirmation" theory

of combining the "gap" described by Parasuraman,

Zeithaml and Berry as two different measures (perception

and expectation of performance) into a single

measurement of performance according to expectation.

According to GARBARND customer satisfaction equals

perception of performance divided by expectation ofperformance.

The usual measures of customer satisfaction involve asurvey with a set of statements using a LIKERT Techniqueor scale. The customer is asked to evaluate eachstatement and in term of their perception and expectationof performance of the organization being measured.

The working of the customer's mind is a mystery which is

difficult to solve and understanding the nuances of whatcustomer satisfaction is, a challenging task. This exercisein the context of the banking industry will give us aninsight into the parameters of customer satisfaction andtheir measurement. This vital information will help us to

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build satisfaction amongst the customers and customerloyalty in the long run which is an integral part of anybusiness.The customer's requirements must be translatedand quantified into measurable targets. This provides an

easy way to monitor improvements, and deciding upon theattributes that need to be concentrated on in order toimprove customer satisfaction. We can recognize wherewe need to make changes to create improvements anddetermine if these changes, after implemented, have ledto increased customer satisfaction. "If you cannotmeasure it, you cannot improve it." - Lord WilliamThomson Kelvin (1824-1907).

MEASURING CUSTOMER SATISFACTION INTHE BANKING INDUSTRY

Introduction:

Banking operations are becoming increasinglycustomer dictated. The demand for 'banking supermalls'offering one-stop integrated financial services is well on

the rise. The ability of banks to offer clients access toseveral markets for different classes of financialinstruments has become a valuable competitive edge.Convergence in the industry to cater to the changingdemographic expectations is now more than evident.Bancassurance and other forms of cross selling andstrategic alliances will soon alter the business dynamics ofbanks and fuel the process of consolidation for increasedscope of business and revenue. The thrust on farm sector,

health sector and services offers several investmentlinkages. In short, the domestic economy is an increasingpie which offers extensive economies of scale that onlylarge banks will be in a position to tap. With thephenomenal increase in the country's population and the

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increased demand for banking services; speed, servicequality and customer satisfaction are going to be keydifferentiators for each bank's future success. Thus it isimperative for banks to get useful feedback on their

actual response time and customer servicequality aspects of retail banking, which in turn will helpthem take positive steps to maintain a competitive edge.

The working of the customer's mind is a mystery which isdifficult to solve and understanding the nuances of whatcustomer satisfaction is, a challenging task. This exercisein the context of the banking industry will give us aninsight into the parameters of customer satisfaction andtheir measurement. This vital information will help us to

build satisfaction amongst the customers and customerloyalty in the long run which is an integral part of anybusiness.The customer's requirements must be translatedand quantified into measurable targets. This provides aneasy way to monitor improvements, and deciding upon theattributes that need to be concentrated on in order toimprove customer satisfaction. We can recognize wherewe need to make changes to create improvements anddetermine if these changes, after implemented, have led

to increased customer satisfaction. "If you cannotmeasure it, you cannot improve it." - Lord WilliamThomson Kelvin (1824-1907).

THE NEEDTO MEASURE CUSTOMER SATISFACTION:

Satisfied customers are central to optimal performanceand financial returns. In many places in the world,business organizations have been elevating the role of the

customer to that of a key stakeholder over the pasttwenty years. Customers are viewed as a group whosesatisfaction with the enterprise must be incorporated instrategic planning efforts. Forward-looking companies are

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finding value in directly measuring and tracking customersatisfaction (CS) as an important strategic successindicator. Evidence is mounting that placing a highpriority on CS is critical to improved organizational

performance in a global marketplace.With better understanding of customers' perceptions,companies can determine the actions required to meet thecustomers' needs. They can identify their own strengthsand weaknesses, where they stand in comparison to theircompetitors, chart out path future progress andimprovement. Customer satisfaction measurement helpsto promote an increased focus on customer outcomes andstimulate improvements in the work practices andprocesses used within the company.

When buyers are powerful, the health and strength of thecompany's relationship with its customers its mostcritical economic asset is its best predictor of the future.Assets on the balance sheet basically assets ofproduction are good predictors only when buyers areweak. So it is no wonder that the relationship betweenthose assets and future income is becoming more andmore tenuous. As buyers become empowered, sellershave no choice but to adapt. Focusing on competition hasits place, but with buyer power on the rise, it is moreimportant to pay attention to the customer.

Customer satisfaction is quite a complex issue and thereis a lot of debate and confusion about what exactly isrequired and how to go about it. This article is an attemptto review the necessary requirements, and discuss thesteps that need to be taken in order to measure and trackcustomer satisfaction.

WHATCONSTITUTES SATISFACTION?

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The meaning of satisfaction: "Satisfied" has a range of meanings toindividuals, but it generally seems to be a positiveassessment of the service.

The word "satisfied" itself had a number of different

meanings for respondents, which can be split into thebroad themes of contentment/happiness, relief, achievingaims, achieving aims and happy with outcome and the factthat they did not encounter any hassle:

Happy

- Content- Happy, pretty happy, quite happy- Pleased- Walked out of there feeling good- Walk out of there chuffed- Grateful the service has been OK

Relieved

- Thank God for that- Phew- At ease

- Can relax- Stress reduction- Secure- Safe- Go to the bank with a troubled mind and they sort it outfor you- Sleep at night without worrying what's going to go on- Everything is sorted out in your mind and you're happy- Secure, you know the money has been sorted out- Knowing the money's going to be there

Achieving aims

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- Achieving your aim or goal- Getting what you went in for- Achieve whatever it is you wanted to achieve- Come away with a proportion of what you want

- Got what wanted in the end- Got what you went down for- Everything went according to plan, the way it shouldhave done- Met expectations- To be unsatisfied is when you come out and you are stillon the same level as you were before

Achieving aims, and happy with outcome

- Happy with the results

- Happy with what you've got- When you walk out you're happy they've sortedeverything out and quickly- Happy with outcome- Pleased with what's happened- Content with what's been done for you- A feeling of happiness having achieved your goal- You go in there feeling down and the only way you aregoing to come out satisfied is if they have been good to

youNo hassle

- Not frustrated- Everything goes smooth- No hassle- No problems- No hassle getting there- Straightforward

Clearly then there is some variation in understanding of

the term. Some of the interpretations fit with thedefinitions used in much of the service quality andsatisfaction literature, where satisfaction is viewed as azero state, merely an assessment that the service is

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adequate, as opposed to "delight" which reflects a servicethat exceeds expectations. However, most respondentshave more positive interpretations of the term. Thesequestions allow us to identify priorities for improvement

by comparing satisfaction with stated (overt) importance,comparing satisfaction with modeled (covert) importance(from identifying key drivers of overall satisfaction), aswell as respondents' own stated priorities.

SERVICE QUALITYAND CUSTOMERSATISFACTION:There is a great deal of discussion and disagreement inthe literature about the distinction between servicequality and satisfaction. The service quality school viewsatisfaction as an antecedent of service quality -

satisfaction with a number of individual transactions"decay" into an overall attitude towards service quality.The satisfaction school holds the opposite view thatassessments of service quality lead to an overall attitudetowards the service that they call satisfaction. There isobviously a strong link between customer satisfaction andcustomer retention. Customer's perception of Service andQuality of product will determine the success of theproduct or service in the market.

If experience of the service greatly exceeds theexpectations clients had of the service then satisfactionwill be high, and vice versa.. In the service qualityliterature, perceptions of service delivery are measuredseparately from customer expectations, and the gapbetween the two provides a measure of service quality.

EXPECTATIONSAND CUSTOMER SATISFACTION:

Expectations have a central role in influencing satisfaction

with services, and these in turn are determined by a verywide range of factors lower expectations will result inhigher satisfaction ratings for any given level of servicequality. This would seem sensible; for example, poorprevious experience with the service or other similar

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services is likely to result in it being easier to pleasantlysurprise customers. However, there are clearlycircumstances where negative preconceptions of a serviceprovider will lead to lower expectations, but will also

make it harder to achieve high satisfaction ratings - andwhere positive preconceptions and high expectationsmake positive ratings more likely. The expectations theoryin much of the literature therefore seems to be an over-simplification.

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BANKING INDUSTRY : AN OVERVIEW

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For centuries banks have played an important role in

financial system of the country. The vital role continues

even today although the form of banking has changedtoday with changing need of the economy and individuals.

With expansion of trade and commerce, the concept of

banking gained importance. The banking transcended

from individuals to groups and later to companies. During

the MUGHUL period the indigenous bankers played a very

important role in lending money and financing foreign

trade in India. During British rule the agency houses

carried on the banking business. The Banking system inIndia has three tiers. There are scheduled commercial

banks; the regional rural banks; and the cooperative

banks. The scheduled commercial banks constitute those

banks which are included in the second schedule of RBI

Act 1934.

In the ORGANISED segment, banking system occupies an

important place in nations economy. It plays a pivotal role

in the economic development of a country and forms thecore of the money market in an advanced country. The

commercial banks in India comprise of both Public sector

as well as private sector banks. There are total 28 Public

sector and 27 private sector banks are functioning in the

country presently. Banks have to deal with many

customers everyday and render various types of services

NEED OF BANKING INDUSTRY:

The ability of the banking industry to achieve its socio-economic objectives and in the

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process bringing more and more customers into its foldwill ultimately depend on thesatisfaction of the customers. We have a strong belief thata satisfied customer is the

foremost factor in developing our business.

A need was felt by us at ICICI Bank that in order tobecome more customer friendly the ,bank should comeout with charter of its services for the customers.

This charter for customers not only explains ourcommitment and responsibilities along with the redressalmethods but also specifies the obligations on the part ofcustomers for healthy practices in customer-banker

relationships.

This is not a legal document creating rights andobligations. The CHARTER has beenprepared to promote fair banking practices and to giveinformation in respect of variousactivities relating to customer service.

We wish to acknowledge the encouragement and guidance providedby the Reserve Bank of India and the Indian Banks Association tohelp us bring out this CHARTER.

We maintain constant consultations with our customersand seek their feedback to evaluate, improve and widenthe range of services provided by us. All our customersare requested to share their experiences about thevarious services rendered by the Bank andfeel free toanswer

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COMMON PRACTICES FOLLOWED BY OURSERVICE CHANNELS;

BRANCHES :1. Display business hours

2. Render courteous services3. Make the branch/ ATM locations, Phone Banking

numbers and Internet

Banking..4. Attend to all customers present in the banking hall at

the close of business hours5. Provide separate 'Enquiry' or 'May I Help You' counter

at large branches6. Display interest rates for various deposit schemes from

time to time

PHONE/ INTERNET BANKING1. Render service 24 hours a day 7 days a week2. Attend to all customers calling in to the phone

banking number/ logging on tointernet banking website

3. Make the branch/ ATM locations, Phone Bankingnumbers and Internet

Banking address of the Bank known to customers easily

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4. Provide details of various deposit schemes/ servicesof the Bank

5. Respond to customer queries related to customeraccount(s) with us subject to

verification by the customer

6. Provide facility for logging complaint/ suggestion

ATM1. Render service 24 hours a day 7 days a week

2. Provide cash withdrawal facility at all locations andother facilities at select

Location..3. Provide facility for logging complaint/ suggestion4. Make the branch/ ATM locations, Phone Banking

numbers andInternetBanking address of the Bank known to customers easily

FAIR BANKING PRACTICES:

Customers are requested to:

1. Ensure safe custody of CHEQUE book and accountstatements.

2. Preferably use reverse carbon while writing aCHEQUE.

3. Issue crossed/ account payee CHEQUES as far aspossible.

4. Check the details of the CHEQUE ,namely, date,amount in words and figures, crossing etc. before

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issuing it. As far as possible, issue CHEQUE afterrounding off the amount to the nearest rupee.

5. Not to issue CHEQUE without adequate balance,

maintain minimum balance as specified by the Bank.

6. Send CHEQUES and other financial instruments byRegistered Post or reliable courier.

7. Use nomination facility.

8. Safe keep account/ locker numbers, details of FDR,account statements etc. and ensure confidentiality.

9. Not to share phone banking/ internet bankingpasswords and ATM/ Debit Card PINs

with others.

10. Provide accurate information about name, address,telephone number, etc. and also inform changes, if any, tothe Bank immediately.

11. Inform loss of demand draft, fixed deposit receipt,CHEQUE leave(sbook, key of locker etc.immediately to the Bank.

12. Avail standing instructions facility for repeattransactions.

13. Provide feedback on our services.

14. Pay interest, installments, locker rent and other

dues on time.

15. Avail direct services such as ATM, ECS, EFT,Internet Banking, Phone Banking Mobile Banking etc.

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16. Bring any deficiency in services to the notice of thebank.

17. Not to sign blank CHEQUE(s) and also do not recordyour specimen signature either on pass book or onCHEQUE book.

18. Not to introduce any person who is not personallyknown to them for the purpose Opening ACCOUNT.

COMMON AREAS OF CUSTOMER-BANKER RELATIONSHIP :-

I. Savings Bank Account :

These accounts are designed to help the individuals(personal customers) to inculcate habit of saving moneyand to meet their future requirement of money. Theamounts can be deposited/ withdrawn from theseaccounts by way of CHEQUES / ATMs. It helps thecustomers to keep minimum cash at home besides earning

interest.

Savings Bank accounts are very popular and can beopened by eligible person(s) and certain organization(s)/agencies as approved by the Reserve Bank of India (RBI).As required by law, while opening this account we willsatisfy ourselves about the identity, including verificationof address, of a person(s) seeking to open an account, toassist in protecting the prospective customer(s), membersof the public and ourselves against fraud and othermisuses of the banking system.

The Bank requires a satisfactory introduction of theperson(s) opening the account by a person acceptable to

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the Bank and/ or relevant documents required foridentification of the person(s) opening the account. Thenecessary documents will be informed at the time ofopening the account.

The Bank will also require one recent photograph and thePermanent Account Number (PAN) or General IndexRegister (GIR) Number or alternatively obtain declarationin Form No. 60 or 61 as per the Income Tax Act (videSection 139 A) from the person(s) opening the account#.The account holder is required to maintain certainminimum balance in the account, asspecified by the Bank from time to time, throughbranches, phone banking and internet banking.

Non-compliance of this would attract service charges:

Interest at 3.5% p.a. is presently paid by ICICI Bankon half yearly basis depending on minimum balancebetween the 11th day and last day (both daysinclusive) of the corresponding months, provided itworks out to minimum Re. 1.CHEQUES and dividendwarrants drawn in the name of account holder(s) willonly be collected through this account. Financial

Instruments endorsed in of the account holder(s) willnot be collected through savings bank account. Account holders must not use these accounts for

business transactions.

I. Current Account

Current Accounts can be opened by individuals,partnership firms, private and public limited companies,HUFs/ specified associates, societies, trusts etc.

As required by law, while opening this account we willsatisfy ourselves about the identity, including verificationof address, of a person(s) seeking to open an account, toassist in protecting the prospective customer(s), members

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of the public and ourselves against fraud and othermisuses of the banking system.

The necessary documents will be informed at the time of

opening the account.The Bank will also require one recent photograph and thePermanent Account Number(PAN) or General Index Register (GIR) or alternativelyobtain declaration in Form No. 60 or 61 as per the IncomeTax Act (vide Section 139 A) from the person(s) openingthe account (i.e. including partners of Registered/Unregistered partnership as also Registered/ Incorporatedbodies/ companies).

No interest is paid on credit balances kept in currentaccount.

I. Term Deposit Accounts

Bank has tailored various deposit schemes to suit theneeds and expectations of investing people in every walkof life. Bank staff shall welcome you to seek more detailsand shall also be glad to assist in the area of investment

in various deposit schemes with your requirement. TermDeposit accounts can be opened by individuals,partnership firms, private and public limited companies,HUFs/ specified associates, etc. The Bank requires asatisfactory introduction of the person(s) opening theaccount by a person acceptable to the Bank and/ orrelevant documents required for identification ofthe person(s) opening the account. The necessarydocuments will be informed at the time of opening theaccount.

Premature withdrawals are allowed, unless specified

otherwise, at the rate ofinterest applicable for theperiod for which the deposit has run or the contracted

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rate whichever is lower, subject to penalty, if anyprescribed by the Bank. No interest will be paid onpremature withdrawals of deposit, which hasremained with the Bank for less days.

Generally loans/ overdrafts against deposits are allowedexcept on Certificates of Deposits (CDs).Such loans are sanctioned by charging interest at ratesdirected by RBI from time to time or as prescribed by theBank.

Interest on deposits is payable either monthly at

discounted value or quarterly or compoundedquarterly (i.e., reinvestment of interest) or on thedate of maturity at the option of the depositor asapplicable under particular deposit scheme.

Interest on bank deposits is exempt from income taxupto a limit specified by Income Tax authorities fromtime to time.

Presently, if the total interest on deposits, per depositor,per branch, per financial year exceeds Rs. 5,000, the sameis subject to Tax Deduction at Source (TDS) at the ratesstipulated by the Income Tax Authorities.

The depositor may furnish declaration in Form No. 15G,preferably at thecommencement of the Financial Year, for receivinginterest on deposits without deduction of tax.

IV. Payment of Balance in Accounts of DeceasedCustomers to Survivors/Claimants

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As directed by the RBI, the bank does not insist onsuccession certificate from legal heirs irrespective ofamount involved. However, the bank adopts suchsafeguards in considering settling of claims as appropriate

including accepting an indemnity bond.

V. Standing Instructions

Standing instructions can be given to the Bank fortransfer/ remittance of funds from one account to otheraccount(s) maintained in the same branch, any otherbranch of the Bank or any other bank or any other thirdparty.

VI. Safe Deposit Lockers

The facility of Safe Deposit Lockers is an ancillary serviceoffered by the Bank. The majoraspects governing theservices are:

- A locker may be hired by an individual (not minor), firms,limited companies,

specified associations and societies, etc.

- Nomination facility is available to individual hirer of SafeDeposit Locker- Loss of key should be immediately informed to theBranch- Lockers are available in different sizes- Lockers are rented out for a minimum period of one year.Rent is payable in advance- In case of overdue rent, the Bank will charge penalty asdecided from time to time- With standing instruction, the rent may be paid from thedeposit account of the hirer- The Bank will hire locker to properly introduced persons

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- The Bank reserves the right to break open the locker ifthe rent is not paid inspite of giving notices as per theBank rules and recover charges thereof.

VII. Articles in Safe Custody

Articles like shares, securities, etc. can be kept in safecustody with the Bank on prescribed charges whereversuch facility is offered. Large/ small boxes must be lockedby the customer(s) and particulars must be written/painted thereon. The lock should be covered by stoutcloth and sealed with the customer's seal. Relationship ofBanker and customer shall be that of bailer and BALIEE.

VIII. Nomination

Nomination facility is available for all deposit accounts,articles in safe custody and safe deposit vaults.Nomination is available for accounts opened in individualcapacity (i.e. single/joint accounts as well as accounts of asole proprietary concern) only, i.e. not for accountsopened in representative capacity. Nomination can be done in FAVOUR of one person

only. However, nomination in FAVOUR of more thanone person ( i. e .UPTO 2 persons) is permissible injointly operated locker accounts with commonconsent.

Nomination can be made, cancelled or varied by theaccount holder anytime during his/ her lifetime. Whilemaking nomination, cancellation or variation, witnessis required and the request should be signed by allaccount holders.

For the existing accounts where nomination is notmade, the account holder(s) can do so by filling upform available with the branches.

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Customers (new as well as existing) are advised toavail nomination facility, if they have not availed sofar.

IX. Remittance ServiceCustomers may remit funds from one centre to anothercentre by Demand Draft or Electronic Funds Transfer(operated through RBI) or Internet based funds transferetc. With in applicable limits, based on availability atvarious locations and by paying specified charges as perthe Bank's rules.

Demand drafts Demand drafts and travelers CHEQUES for

Rs.50, 000 and above will be issued by the banks only bydebit to the customer's account or against CHEQUE orother instruments tendered by the purchaser and notagainst cash payment. Similarly, such payments forRs.50,000 and above will be made through bankingchannels and not in cash.

Issue of Duplicate Demand Draft without Receipt of Non-Payment Advice: As directed by the RBI, the bank will

issue duplicate demand draft upto Rs. 5,000 on the basisof adequate indemnity and without obtaining Non-Payment Advice from the DRAWEE branch. Time Frame forIssue of Duplicate Draft: As directed by the RBI, the bankwill issue duplicate demand draft to the customer within afortnight from the receipt of request.

X. Collection Service

All CHEQUES deposited by the customers are cleared,subject to charges, by the Bank as follows:

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- HIGH VALUE CHEQUES :This facility is available forclients of select branches at designated CENTERS .CHEQUES of high value (Rs. 1 lakh or more, perinstrument) are

cleared on the same day subject to deposition of theCHEQUES in time.

- LOCAL CHEQUES : A CHEQUE drawn on a bank branch inthe same city as the bank branch where it is deposited iscalled a local CHEQUE. These CHEQUES are normallycleared within 4 working days.

- OUTSTATION CHEQUES: A CHEQUE drawn on a bankbranch in a different city from the bank branch where it is

deposited is called an outstation CHEQUE. These CHEQUESare normally cleared within 21 working days.Customers are requested to deposit their CHQUES withinthe stipulated time frame at the branches to ensure timelyclearing.

XI. Collection of Government Dues

The Bank handles collection of various taxes on behalf ofthe Government of India through select designatedbranches.

XII. Exchange of Soiled/ Slightly Mutilated Currency Notes

All the branches of the Bank will exchange freely,soiled/slightly mutilated currency notes and certain othertypes of mutilated currency notes of all denominations.The Bank's currency chest branches will exchange allcategories of mutilated currency notes. Currencyexchange facility is offered to the Bank's customers andothers. The Bank Follows RBI guidelines in this respect.RBI has permitted the banks to exchange mutilated

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currency notes which are genuine and where mutilationsare such as not to causesuspicion or fraud.

XIII. Interest on Deposits

The Bank pays interest on deposits as per various depositschemes. Interest rates are revised from time to time andmade known to public.Revised interest rates are applicable only to the renewalsand fresh deposits while existing deposit continue to getinterest at the contracted rate.

XIV. Service Charges

The Bank provides various services to customers for whichservice charges are levied. The charges are reviewed/revised from time to time. Service charges are levied forCollection and remittance of funds, processing of loanproposals, issue of guarantees, safe custody, issue ofduplicate instruments/statements, ledger folio charges

etc. Details of service charges will be made available onrequest.

XV. Time-Norms for Various Banking Transactions

The following time norms are indicative and may varyslightly from branch or branch.

1 Cash payment upto 15 minutes

2 Receipt of cash upto15 minutes3 For issuance of demand draft upto10 minutes4 Payment of demand drafts upto15 minutes5 Payment of fixed deposit receipts 20 to 25 minutes

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6 Opening of an account% 25 to 30 minutes7 Statement of accounts (request for duplicate) Within 3working days

Collection of CHEQUES.- Local

8 Normally within 4 days- Outstation Normally within 21 days

XVI. REDRESSAL OF COMPLAINTS

In case of any complaint, customers can contact the Bankthrough various channels:

By visiting the nearest ICICI Bank branch By calling on 1901 333 444 or the local ICICI Bank PhoneBanking number By lodging request through the relevant link onwww.icicibank.com By sending e-mail to the Bank [email protected] By sending written correspondence to the Bank throughpost on the following

AddressICICI Bank LimitedICICI Bank Phone Banking CENTER YP. O. Box No. 20BANJARA Hills P. O.Hyderabad 500 034India

The relevant contact numbers, addresses and e-mail ids

for this purpose are provided in all customercommunication.

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At the Bank, every customer complaint is lodged into theCustomer Relationship Management System, whichgenerates a reference number for the complaint. Thereference number and the expected resolution time for

the complaint are provided to the customer for futuretracking. The customer can easily track the status of his/her complaint using any channel irrespective of where he/she logged the complaint. If the customer is not satisfiedwith the resolution provided, then he can write to theBanks dedicated customer service cell at:

Research Methodology

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The present study is purely based on primary data. Theinformation relating to the customer perception towardsservices rendered by public sector banks & private sectorbanks is collected through structured questionnaires for

the purpose of analysis. The total sample size of the studyis 100 consisting employed unemployed persons. Theserespondents have been selected on random samplingbasis. The area of the study is limited to Chandigarh andmohali only .The other required information is collectedthrough the officials of the banks and published materials.In order to understand the customer perception towardsservices rendered by both the banks ,following aspectshave been taken into consideration even though there aremany other issues. In order to have a clear idea of the

services provided by banks, information is collectedthrough internet and with the guidance of our professors.

Sa mple and data collection : This survey was

conducted in the context of banking services. Data were

collected in face-to-face interviews of customers coming

to banks. The study provides a representative sample of

various banks customers in Chandigarh only.

Research design : The research design would be

descriptive and cross sectional

Data collection: The data would be collected from

primary source through questionnaires and interviews.

Data Sources

Both Secondary and Primary Sources of data will be

used.The major type of information used is primary

data. This is done through primary survey. Theliterature review is a secondary data type. The sources

include books, periodicals, websites, printed literature

etc.

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DATA

ANALYSIS &

FINDINGS

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ANALYSIS AND FINDING

Firstly the analysis of the first part of questionnaire is

done by me which includes the personal data of the

respondents. The analysis is as follows

Of total 100 respondents 45 were female and 55 of

them were male.

56 respondents have their account in private banks and

44 of them have their account in public banks.

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1.Do you feel your bank is secure?

(no. of

people)

Bankingsector

yes no May be

Private bank 16 32 8

Public bank 32 7 5

Out of 56 people who opted for private bank, 16 agree that

their bank is secure where as 32 people has given a negative

response over bank security. But maximum percent of people who

opted for public bank responded positively with respect to this

question about their feelings regarding their bank security. This

shows that people trust more to public banks in case of security

level and the reason can be as these banks are regulated and

controlled by RBI.

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2.Do you think that your bank caters all your

banking needs?

(no of people)

Banking sector Yes

no May be


Public bank 15 29 0

The word "private" refers to the customer service being

rendered on a more personal basis than in mass-market , so in

such a case 40% people agree that private banks cater their

all banking needs , where as on the other hand 29% people

give negative view about public banks.

3.Do they provide door to door services?

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(no.of people)

Out of 56 people who opted for private bank, 41 customers

agree that their bank provide door to door service such ascollection of CHEQUES. where as 39 people has given a negative

response over such service. But maximum percent of people who

opted for private bank responded positively with respect to this

question about their feelings regarding such service . This shows

that customers feel more comfortable to such service.

4.Do they provide privacy statement?(no of people)

Banking

sector

yes no May be

1

Banki

ng

secto

r

Yes

no May be

Private

bank

41 15 0

Public

bank

5 39 0


54/74


Public bank 10 34 0

Privacy statement is a legal document or is a summary of all

financial transactions occurring over a given period of time on

a deposit accounts or on a credit card , or any other type of

account offered by a financial institution, which discloses the

financial position of the customers regarding their bank

account . only private sector banks provide such statementwhere as public sector banks need many documents in order to

provide such statement.

5.Are you satisfied with the working hour

facilities provided by your bank?

(no. of people)

Bankingsector yes no May be


Public bank 15 20 9

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In case of public sector banks , the public dealing starts at 9

am and ends at 4 pm. It makes inconvienent sometimes , on

the other hand private sector banks deals 8 am to 8 pm, 29

people out of 56 prefer private sector banks and only 15% give

positive response to public sector banks.

6.Do they charge unnecessary for not

maintaining minimum balance account?

(no. of people)

Banking

sector

yes no May be


Public bank 13 31 0

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Well the rules and regulations are tougher in private sector banks

and are a little tougher

they want to maintain 10,000 as a minimum balance in any account.

They even charge penalties for small violations whereas in public

sector branches they have more safe deposits and do not charge

unnecessarily. SO customers prefer more to public sector banks

7.Do your bank offer competitive service charge?

(no. of people)

Banking

sector

yes no May be


Public bank 5 34 5

In case of private sector banks the professional fees charges are

more and in most cases they charge without the knowledge of

customers. 39 customers give negative response to such extent that

the private sector banks have hidden charges. But in case of public

sector banks 34 customers believe that no such charges are leived

on them.

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8.Do they respond to your complaints and

queries well in time?

(no. of people)

Banking

sector

yes no May be


Public bank 17 17 10

Generally public sector banks do not care for customer

awareness , they do not respond to any greviences and

complaints with respect to customers. public sector banks

even though they are little slow in their approach and not so

Hi-tech programmed, they are traditional in nature, they trust

in customer relations, know your customer norms, strictly

adhere to the RBI Norms, some of the issues like motivating

the staff, empowering the staff are concerned, it is high time

and also better to update the staffs and employees of

NATIONALISED and public sector banks to the required extent.

9.Does your bank update its website on regularbasis?

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(no. of people)

Banking

sector

yes no May be


Public bank 0 32 12

Out of 56 % 32 people agree that private sector banks update their

websites on regular basis because these banks refers to the

customer service on the priority basis being rendered on a more

personal basis than in mass-market . but in the case of public sector

banks only 12 people say that it may provide such service.

10. Do the have the facility of branch banking?

(no. of people)

Banking

sector

yes no May be


Public bank 29 15 0

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Engaging in banking activities such as accepting deposits or

making loans at facilities away from a bank's home office.

Financial innovation such as internet banking will greatly

influence the future of branch banking by potentially reducing

the need to maintain extensive branch networks to service

consumers. Multi Branch Banking facility is a value added

service to our customers taking advantage of "Core Banking

Solution". It is a 'technology driven-anywhere banking' facility

and 'at par' facilities for Savings Bank and Current account

with structured schedule of services and charges. Now the

customer can access his account at all branches of the Bank.

11.Do they care to give you knowledge about

new updation in system and facilities?

(no. of people)

Banking

sector

yes no May be


Public bank 10 32 2

In private sector banks 34 %people agrees that their banks

update their new system and facilities on their websites on

regular basis , where as on the other hand public sector banks

maximum no of people gave negative response to such

service.

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12.Are you happy with the ATM facilities

provided by our bank.

(no. of people)

Banking

sector

yes no May be


Public bank 25 19 0

25% of the customers are using ATM banking in public sectorbanks and rest 19% people are not using because this service isnot provided by their banks (e.g. Union Bank of India) whereas100% of the customers are using ATM banking in private sectorbanks out of which 40% are satisfied; 16% people are notsatisfied with the service.. This shows a very high rate ofcustomer satisfaction level in Private sector banks

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13.In case of credit cards, do your bank give you

competitive credit limit and time?

(no. of people)Banking

sector

yes no May be



Out of 56 people who opted for private bank, only 10% people

agree that their bank provide time limit for credit cards ,where

as 41 people has given a negative response over it. But

maximum percent of people who opted for public bank

responded same with respect to this question. This shows

that the bank either it is a public banks or a private bank ,

people are not happy with such service.

14.Does your bank update your account

transaction via SMS Alerts?

(no. of people)

Banking

sector

yes no May be

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SMS banking is a technology-enabled service offering from

banks to its customers, permitting them to operate selected

banking services over their mobile phones using SMS

messages. Out of 56- 36% people agree that private sector

banks provide such service to customers. But in case of public

sector banks only 10% people agree with the statement..

15.Do your bank provides you internet andmobile banking?

(no. of people)

Banking

sector

yes no May be


Public bank 17 23 4

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44% of the customers are using internet banking in privatesector banks and all are satisfied with the service whereas inpublic sector banks only 17% people using such facility .The

service is available on java enabled mobile phones where theuser is required to download the application on to the mobilehandset. They can have the facilities such as fund transfer,IMPS (INTER BANK MOBILE PAYMENT SERVICE) DEMATenquiry. Bill Payment (Utility bills, credit cards, Insurancepremium), Donations, Subscriptions. The Service is providedfree of charge. SMS/GPRS cost will be borne by the customer.

16.Are you satisfied with the rate of interest inyour bank?

(no. of people)

Banking

sector

yes no May be


Public bank 32 12 0

A Bank's main source of income is interest. A bank pays out at a

lower interest rate on deposits and receives a higher interest rateon loans. The difference between these rates represents the bank's

net income. In such private banks have high rate of interest as

compared to public sector banks. In public sector banks rate of

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interest is determined only by RBI because these banks are

controlled and regulated by RBI.

17.The service quality provided by our bank is as

per your expectations?

(no. of people)

Banking

sector

yes no May be


Public bank 30 14 0

18.Do you recommend your bank to friends ,

relatives and business associates?

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(no. of people)

Banking

sector

yes no May be

Private bank 48 8 0

Public bank 40 4 0

48% people prefer private sector banks , due to its vast

technology, customer oriented people feel satisfied, where as

on the other hand public sector sector banks is preferred only

on the basis of security. So I feel that most of the customers

will prefer to the private sector banks and will recommend the

same to their friends and relatives.

19.Do your bank uses additional column of FAQ

( frequent asked questions)in their websites?

(no. of people)

Banking

sector

yes no May be


Public bank 10 30 4

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It has been observed that 20% people uses such FAQ service

in private sector banks and 16 people agree that their bank is

providing such service, where as 30people has given a

negative response over it. But maximum percent of people

who opted for public bank responded negatively with respect

to this question. This shows that people trust more to private

banks because such banks are technology oriented.

20.Do your bank really care for u?

(no. of people)

Banking

sector

yes no May be


Public bank 19 20 5

The ability of the banking industry is to achieve its socio-economicobjectives and in the process bringing more and more customersinto its fold will ultimately depend on the satisfaction of the

customers. I have a strong belief that a satisfied customer is theforemost factor in developing our business.

A need was felt by Bank that in order to become more customerfriendly the Bank should come out with charter of its services for

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the customers. This document highlights Bank's commitmentstowards customer satisfaction, thus ensuring accountability andresponsibility amongst our officials and staff.

SO ,I personally fell that maximum number of people prefer privatesector banks as compared to public sector banks.

DATA ANALYSIS:

100% of the customer of private sector banks issatisfied with the behaviour of the staff out of which40% are very satisfied and 20% are highly satisfied.Whereas 68% of the customers of public sector banksare satisfied with the behaviour of the staff out of which20% are very satisfied

28% of the customers are using internet banking inprivate sector banks and all are satisfied with the

service whereas in public sector banks no customer isusing the internet banking

80% of the customers are using ATM banking in publicsector banks and rest 20% are not using because thisservice is not provided by their banks (e.g. Union Bankof India) whereas 100% of the customers are using ATMbanking in private sector banks out of which 36 % are

satisfied; 48% are very satisfied and 16% are highlysatisfied. This shows a very high rate of customersatisfaction level in Private sector banks

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In public sector banks 52% 0f the customers aresatisfied and 28% are very satisfied with ATM bankingwhereas in private sector banks 48 % of the customersare very satisfied and 16% of the customers are highly

satisfied with the service.

FINDINGS

Customer satisfaction level is higher in Private sector

banks as compared with the Public Sector Banks.

Reasons of Dissatisfaction in Public sector banks

Behaviour and attitude of the staff in public sectorbanks is the first reason of customer dissatisfaction.

Time taken to process the transaction is the secondreason of customer dissatisfaction.

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Many of the services are not provided by the Publicsector banks when compared with the Private sectorbanks e.g. ATM Banking is not provided by UnionBank of India.

Internet Banking and Mobile banking is also notprovided by many of the Public sector banks.

Continuous services are not provided by ATMmachines installed by various Public sector banks.

They do not want to adopt the technology.

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RECOMMENDATIONS

The staff should be adequately trained to deal withthe customer on one to one basis.

Many public sector banks need to revive theirinfrastructure to have pace with the competingenvironment.

Many of the services needs improvement in publicsector banks e.g. ATM facilities.

Staff should be adequately trained to encourage faceto face dealing.

Staff should be friendly and approachable.

Clearly defined customer policy should be adopted bythe banks.

Customers needs should be anticipated in advance sothat they can be helped out in a better way.

Treat your customers like your friends and they'llalways come back.

Honour your promises.

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LIMITATIONS OF THE STUDY

This study is geographically restricted to Chandigarhcity only.

The sample size is small due to the specified reasons. Finding are based on sample survey through

questionnaires method. Hence there is a scope for the respondents to be

biased or pretentious

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BIBLIOGRAPHY

C R Kothari Research methodology P N VARSHNEY BANKINGLAWAND PRACTICE

CUSTOMERSATISFACTIONIN INDIANBANKING: ACASESTUDYOF YAMUNA NAGAR DISTRICTIN HARYANA

ARTICLEONCUSTOMERRELATIONSHIPMANAGEMENTINBANKINGSECTORBYDR FB SINGH

Article on Measuring Customer Satisfaction inThe Banking Industry By Dr Manoj Kumar Das

Internet websites:

www.google.com

www.rbi.gov.in

www.iba.org.in

http://en.wikipedia.org/wiki/Customer_satisfaction

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http://www.google.com/http://www.rbi.gov.in/http://www.iba.org.in/http://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://www.rbi.gov.in/http://www.iba.org.in/http://en.wikipedia.org/wiki/Customer_satisfactionhttp://en.wikipedia.org/wiki/Customer_satisfactionhttp://www.google.com/


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Customer Satisfaction in the Banking Industry India