Consumer Satisfaction in Iob Bank

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INTRODUCTION

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INTRODUCTION

The modern concepts of marketing realized that measuring consumer needs or

behavior was not enough. CONSU!" S#T$S%$C#T$ON should be the core and then the

correct perception on which marketing policies of our organization should be built.

&anagement must think of itself not as producing products but as providing customer

creating value satisfaction.

Customer satisfaction has a vital role in sustaining and improving hold on the market.

'rief descriptions about the various measures that are needed to improve customer orientation

have also been dealt with.

Consider the fact toda(s customer face a plenitude of products in ever( categor(.

Customer will be having high and raising e)pectation of *ualit( and service. $n the face of their

vast choices+ the customer will gravitate to the offering that the best meet their individual needs

and e)pectation. The( will bu( one of the bases of their perception value.

Therefore it is not surprising that toda(,s winning companies are those succeed best in

satisf(ing indeed delighting their target customer. The( pa( e)treme attention to *ualit( and

service to meeting and even e)ceeding customer e)pectation. The( complete vigorousl( and at

the co-operated smartl( with their strateg( partners in their suppl( and distribution chain. The(

pursue efficientl( and (et are responsible and fle)ible.

Customer satisfaction is the outcome felt b( bu(ers who have e)pectation. Customers are

satisfied when their e)pectation are met and delighted when their e)pectations are e)ceeded.

Satisfied customers remain lo(al longer+ bu( more+ and are less sensitive and talk favorable

about the compan(. %rom this it is clear that the satisfied customer will be less sensitive towards

the fluctuating price and offensive marketing t(picall( cost more than defensive marketing+

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BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingl( becoming a vital business

issue as organization realize the benefits of Customer "elationship anagement 2C"3 for

providing effective customer service. 1rofessionals working within customer focused business

or those running call centres or help desks+ need to keep informed about the latest customer

satisfaction techni*ues for running a valuable customer service function. %rom small customer

service departments to large call centres+ the importance of developing a valued relationship

with customers using C" is essential to support customer and long-term business growth.

What Do Customes Want!

'efore we begin to create tools to measure the level of satisfaction+ it is important to develop a

clear understanding of what e)actl( the customer wants. e need to know what our customers

e)pect from the products and services we provide.

Customer e)pectations have two t(pes 4

!)pressed

$mplied

E"#esse$ Customer !)pectations are those re*uirements that are written down in the contract

and agreed upon b( both parties for e)ample+ product specifications and deliver( re*uirements.

Supplier,s performance against these re*uirements is most of the items directl( measurable.

Im#%ie$ Customer !)pectations are not written or spoken but are the ones the customer would

5e)pect, the supplier to meet nevertheless. %or e)ample+ a customer would e)pect the service

representative who calls on him to be knowledgeable and competent to solve a problem on the

spot. There are man( reasons wh( customer e)pectations are likel( to change overtime. 1rocess

improvements+ advent of new technolog(+ changes in customer,s priorities+ improved *ualit( of

service provided b( competitors are 6ust a few e)amples. The customer is alwa(s right.

Supplier,s 6ob is to provide the customer what he/she wants+ when he/she wants it. Customer

satisfaction is customer,s perception that a supplier has met or e)ceeded their e)pectations.

3&3 W'AT CONSTITUTES SATISFACTION!

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e cannot create customer satisfaction 6ust b( meeting customer,s re*uirements full( because

these have to be met in an( case. 7owever failing short is certain to create dissatisfaction

Ma(o Atti)utes of *ustome satisfa*tion in )an+in, in$ust-

Can )e summai.e$ as:

1roduct *ualit(

1remium Outflow

"eturn on $nvestment

Services

"esponsiveness and abilit( to resolve complaints and re6ect reports.

Overall communication+ accessibilit( and attitude.

W'AT ARE T'E TOO/S!

Customer e)pectations can be identified using various methods such as8

1eriodic contract reviews

arket research

Telephonic interviews

1ersonal visits

arrant( records

$nformal discussions

Satisfaction surve(s

9epending upon the customer base and available resources+ we can choose a method that is most

effective in measuring the customer,s perceptions. The purpose of the e)ercise is to identif(

priorities for improvements. e must develop a method or combination of methods that helps to

continuall( improve service.

3&0 CUSTOMER SATISFACTION SURES

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%ormal surve( has emerged as b( far the best method of periodicall( the customer satisfaction.

The surve( are not marketing tools but an information:gaining tool. !nough homework needs

to be before embarking on the actual surve(. This includes8

9efining Ob6ectives of the Surve(

9esign Surve( approach

9evelop *uestionnaires and forms

#dminister Surve( 2!mail+ Telephone or 1ost3

ethod of compiling data and anal(sing the findings

%ormat of the report to present the findings

There is no point in asking irrelevant *uestions on a customer satisfaction *uestionnaire. The

basic purpose is to find out what we are doing right or wrong. here is the scope for

improvement+ where do we stand vis-;-vis other suppliers. 7ow we can serve the customer

better to >?. %or repeated surve(s+ (ou could provide the rating that was

previousl( accorded b( the customer. This works like a reference point for the customer.

Space should alwa(s be provided for the customers own opinions this enables them to state an(

additional re*uirements or report an( shortcomings that are not covered b( the ob6ective

*uestions. Normall(+ we deal various personnel at various levels in the customer,s organization

:the bu(er+ user+ receiving inspector+ finance and purchase person etc. surve(ing a number of

respondents for each customer gives a complete perspective of customer satisfaction. $t ma( be

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necessar( to device a different *uestionnaire for each of them. "espondents must be provided a

wa( to e)press the importance the( attach to various surve( parameters. "espondents should be

asked to give a weighting factor+ again on a rating scale of sa(+ > to >?+ for each re*uirement.

This gives a better indication of relative importance of each parameter towards overall customer

satisfaction and makes it easier for suppliers to prioritize their action plans b( comparing the

performance rating 2scores3 with importance rating 2weighing3.

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NEED FOR T'E STUD

To identif( the satisfaction level of customer towards different t(pes of service attributes+

b( identif(ing their critical factors.

To stud( about the bank about their customized products and services+ according to the

consumer,s needed.

To stud( the e)perience and e)pectations of the e)isting customers.

To stud( to improve the current standards of services.

To stud( the scope of introducing new t(pes of services.

To stud( about the business tactics followed to stand against the competitors.

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STATEMENT OF T'E

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STATEMENT OF T'E 5ROB/EM

This Stud( will help us to understand the consumer,s satisfaction about banking services and

products. This stud( will help banks to Understand+ how a consumer selects+ organizes and

interprets the @ualit( of service and product offered b( banks. The market is more aware and

realistic about investment and returns %rom financial products. $n this background this stud(

tries to anal(ze The customer satisfaction towards banking services in general and $O' $n

particular.

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INDUSTR 5ROFI/E

INTRODUCTION TO BAN6IN7 IN INDIA

The banking section will navigate through all the aspects of the 'anking S(stem in $ndia. $t will

discuss upon the matters with the birth of the banking concept in the countr( to new pla(ers

adding their names in the industr( in coming few (ears.

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The banker of all banks+ "eserve 'ank of $ndia 2"'$3+ the $ndian 'anks #ssociation 2$'#3 and

top A? banks like $9'$+ 7S'C+ $C$C$+ #'N #"O+etc. has been well defined under three

separate heads with one page dedicated to each bank.

7owever+ in the introduction part of the entire banking cosmos+ the past has been well e)plained

under three different heads namel(8

B 7istor( of 'anking in $ndia

B Nationalization of 'anks in $ndia

B Scheduled Commercial 'anks in $ndia

The first deals with the histor( part since the dawn of banking s(stem in $ndia. 0overnment took

ma6or step in the >D to put the banking sector into s(stems and it nationalized >E private banks

in the mentioned (ear. This has been elaborated in Nationalization 'anks in $ndia. The last but

not the least e)plains about the scheduled and unscheduled banks in $ndia. Section EA 2D3 2a3 of

"'$ #ct >FE la(s down the condition of scheduled commercial banks. The description along

with a list of scheduled commercial banks are given on this page

'ISTOR OF BAN6IN7 IN INDIA

ithout a sound and effective banking s(stem in $ndia it cannot have a health( econom(. The

banking s(stem of $ndia should not onl( be hassle free but it should be able to meet new

challenges posed b( the technolog( and an( other e)ternal and internal factors. %or the past

three decades $ndia,s banking s(stem has several outstanding achievements to its credit. The

most striking is its e)tensive reach. $t is no longer confined to onl( metropolitansor

cosmopolitans in $ndia. $n fact+ $ndian banking s(stem has reached even to the remote corners of

the countr(. This is one of the main reasons of $ndiaGs growth process. 0overnment,s regularpolic( for $ndian bank since >D has paid richdividends with the nationalization of >E ma6or

private banks of $ndia. Not long ago+ an account holder had to wait for hours at the bank

counters for getting a draft or for withdrawing his own mone(. Toda(+ he has a choice. 0one are

da(s when the most efficient bank transferred mone( from one branch to other in two da(s. Now

it is simple as instant messaging or dials a pizza. one( has become the order of the da(. The

first bank in $ndia+ though conservative+ was established in >HID.%rom >HID till toda(+ the

6ourne( of $ndian 'anking S(stem can be segregated into three distinct phases. The( are as

mentioned below8

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B !arl( phase from >HID to >D of $ndian 'anks

B Nationalization of $ndian 'anks and up to >> prior to $ndian banking sector "eforms.

B New phase of $ndian 'anking S(stem with the advent of $ndian %inancial

J 'anking Sector "eforms after >>.

To make this write-up more e)planator(+ $ prefi) the scenario as 1hase $+ 1hase $$ and 1hase $$$.

5hase I

The 0eneral 'ank of $ndia was set up in the (ear >HID. Ne)t came 'ank of 7industan and

'engal 'ank. The !ast $ndia Compan( established 'ank of 'engal 2>I?3+ 'ank of 'omba(

2>IE?3 and 'ank of adras 2>IEF3 as independent units and called it 1residenc( 'anks. These

three banks were amalgamated in >A? and $mperial 'ank of $ndia was established whichstarted as private shareholders banks+ mostl( !uropeans shareholders. $N >IDK #llahabad 'ank

was established and first time e)clusivel( b( $ndians+ 1un6ab National 'ank Ltd. was set up in

>IE with head*uarters at Lahore. 'etween >?D and >>F+ 'ank of $ndia+ Central 'ank of

$ndia+ 'ank of 'aroda+ Canara 'ank+ $ndian 'ank+ and 'ank of (sore were set up. "eserve

'ank of $ndia came in >FK.9uring the first phase the growth was ver( slow and banks also

e)perienced periodic failures between >>F and >EI. There were appro)imatel( >>?? banks+

mostl( small. To streamline the functioning and activities of commercial banks+ the 0overnmentof $ndia came up with The 'anking Companies #ct+ >E which was later changed to 'anking

"egulation #ct >E as per amending #ct of >DK 2#ct No. AFof >DK3. "eserve 'ank of $ndia

was vested with e)tensive powers for the supervision of banking in $ndia as the Central 'anking

#uthorit(. 9uring those da(,s public has lesser confidence in the banks. #s an aftermath deposit

mobilization was slow. #breast of it the savings bank facilit( provided b( the 1ostal department

was comparativel( safer. oreover+ funds were largel( given to traders.

5hase II

0overnment took ma6or steps in this $ndian 'anking Sector "eform after independence. $n >KK+

it nationalized $mperial 'ank of $ndia with e)tensive banking facilities on a large scale

especiall( in rural and semi-urban areas. $t formed State 'ank of $ndia to act as the principal

agent of "'$ and to handle banking transactions of the Union and State 0overnments all over

the countr(. Seven banks forming subsidiar( of State 'ank of $ndia was nationalized in >D? on

>th Mul(+ >D+ ma6or process of nationalization was carried out. $t was the effort of the then

1rime inister of $ndia+ rs. $ndira 0andhi. >E ma6or commercial banks in the countr( were

nationalized. Second phase of nationalization $ndian 'anking Sector "eform was carried out in

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>I? with seven more banks. This step brought I? of the banking segment in $ndia under

0overnment ownership. The following are the steps taken b( the 0overnment of $ndia to

"egulate 'anking $nstitutions in the Countr(8

B >E8 !nactment of 'anking "egulation #ct.

B >KK8 Nationalization of State 'ank of $ndia.

B >K8 Nationalization of S'$ subsidiaries.

B >D>8 $nsurance cover e)tended to deposits.

B >D8 Nationalization of >E ma6or banks.

B >H>8 Creation of credit guarantee corporation.

B >HK8 Creation of regional rural banks.

B >I?8 Nationalization of seven banks with deposits over A?? corers.

#fter the nationalization of banks+ the branches of the public sector bank $ndia rose to

appro)imatel( I?? in deposits and advances took a huge 6ump b( >>+???.'anking in the

sunshine of 0overnment ownership gave the public implicit faith and immense confidence about

the sustainabilit( of these institutions.

5hase III

This phase has introduced man( more products and facilities in the banking sector in its reforms

measure. $n >>+ under the chairmanship of Narasimha+ a committee was set up b( his name

which worked for the liberalization of banking practices. The countr( is flooded with foreign

banks and their #T stations. !fforts are being put to give a satisfactor( service to customers.

1hone banking and net banking is introduced. The entire s(stem became more convenient and

swift. Time is given more importance than mone(. The financial s(stem of $ndia has shown a

great deal of resilience. $t is sheltered from an( crisis triggered b( an( e)ternal macroeconomics

shock as other !ast #sian Countries suffered. This is all due to a fle)ible e)change rate regime+

the foreign reserves are high+ the capital account is not (et full( convertible+ and banks and their

customers have limited foreign e)change e)posure.

SC'EDU/ED COMMERCIA/ BAN6S IN INDIA

The commercial banking structure in $ndia consists of8

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B 'ank of aharashtra

B Canara 'ank

B Central 'ank of $ndia

B Corporation 'ank

B 9ena 'ank

B $ndian Overseas 'ank

B $ndian 'ank

B Oriental 'ank of Commerce

B 1un6ab National 'ank

B 1un6ab and Sind 'ank

B S(ndicate 'ank

B Union 'ank of $ndia

B United 'ank of $ndia

B UCO 'ank

B Pi6a(a 'ank

The fo%%o4in, ae the S*he$u%e$ Ban+s in In$ia 85iate Se*to9:

B $N0 P(s(a 'ank Ltd

B #)is 'ank Ltd

B $ndus 'ank Ltd

B $C$C$ 'ank Ltd

B South $ndian 'ank

B 79%C 'ank Ltd

B Centurion 'ank Ltd

B 'ank of 1un6ab Ltd

B $9'$ 'ank Ltd

The fo%%o4in, ae the S*he$u%e$ Foei,n Ban+s in In$ia:

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B #merican !)press 'ank Ltd.

B #NQ 0rid la(s 'ank 1lc.

B 'ank of #merica NT J S#

B 'ank of Tok(o Ltd.

B 'an*uc Nationals de 1aris

B 'arcla(s 'ank 1lc.

B Citi 'ank N.C.

B 9eutsche 'ank #.0.

B 7ong Rong and Shanghai 'anking Corporation

B Standard Chartered 'ank.

B The Chase anhattan 'ank Ltd.

B 9resdner 'ank #0.

BAN6IN7 SERICES IN INDIA

ith (ears+ banks are also adding services to their customers. The $ndian banking industr( is

passing through a phase of customers market. The customers have more choices in choosing

their banks. # competition has been established within the banks operating in $ndia. ith stiff

competition and advancement of technolog(+ the services provided b( banks have become more

eas( and convenient. The past da(s are witness to an hour wait before withdrawing cash from

accounts or a Che*ue from north of the countr( being cleared in one month in the south.

Thissection of banking deals with the latest discover( in the banking instruments along with thepolished version of their old s(stems.

BAN6 ACCOUNT

The most common and first service of the banking sector. There are different t(pes of bank

account in $ndian banking sector. The bank accounts are as follows8

B 'ank Savings #ccount - 'ank Savings #ccount can be opened for eligible person / persons and

certain organizations / agencies 2as advised b( "eserve 'ank of $ndia 2"'$3 from time to time3

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$n 1ersonal Loan+ one can get a sanctioned loan amount between "sAK+ ??? to >?+ ??+???

depending upon the profile of person appl(ing for the loan. S'$+ $C$C$+ 79%C+ 7S'C are some

of the leading banks which deals in 1ersonal Loan. #lmost all the banks have 6umped into the

market of car loan which is also sometimes termed as auto loan. $t is one of the fast moving

financial products of banks.

Car loan / auto loan are sanctioned to the e)tent ofIK upon the e)-showroom price of the car

with some simple paperwork,s and a small amount of processing fee.

Loan against shares is ver( eas( to get because li*uid guarantee is involved in it.7ome loan is

the latest craze in the banking sector with the development of the infrastructure.

Now people are moving to township outside the cit(. ore number of townships is coming up

to meet the demand of Ghouse for allG. The "'$ has also liberalized the interest rates of home loanin order to match the repa(ment capabilit( of even middle class people. #lmost all banks are

dealing in home loan. #gainS'$+ $C$C$+ 79%C+ 7S'C are leading.

The educational loan+ rather to be termed as student loan+ is a goodbanking product for the mass.

Students with certain academic brilliance+ stud(ing at recognized colleges/universities in $ndia

and abroad are generall( given education loan / student loan so as to meet the e)penses on

tuition fee/ maintenance cost/books and other e*uipment.

MONE TRANSFER

'eside lending and depositing mone(+ banks also carr( mone( from one corner of the globe to

another. This act of banks is known as transfer of mone(. This activit( is termed as remittance

business. 'anks generall( issue 9emand 9rafts+ 'ankerGs Che*ue+ one( Orders or other such

instruments for transferring the mone(. This is at(pe of Telegraphic Transfer or Tele Cash

Orders. $t has been onl( a couple of (ears that banks have 6umped into themone( transfer

businesses in $ndia. The international mone( transfer market grew .F from A??F to A??E i.e.

from USA>F bn. to USAFFbn. in A??E. !conomists sa( that the market of mone( transfer will

further grow at a cumulative >A.> average growth rate throughA??.

FUTURE OF BAN6IN7 IN INDIA

# health( banking s(stem is essential for an( econom( striving to achieve good growth and (et

remain stable in an increasingl( global business environment. The $ndian banking s(stem has

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RIS6 MANA7EMENT

The future of banking will undoubtedl( rest on risk managementd(namics. Onl( those banks

that have efficient risk managements(stem will survive in the market in the long run. The

effectivemanagement of credit risk is a critical component of comprehensive risk management

essential for long-term success of a banking institution. #lthough capital serves the purpose of

meeting une)pected losses+ capital is not a substitute for inade*uate decontrol or risk

management s(stems. Coming (ears will witness banks striving to create sound internal control

or risk management processes. ith the focus on regulation and risk management in the 'asel

%ramework gaining prominence+ the post-'asel $$ era will belong to the

'anks that manage their risks effectivel(. The banks with proper risk management s(stems

would not onl( gain competitive advantage b( wa( of lower regulator( capital charge+ but would

also add value to the shareholders and other stakeholders b( properl( pricing their services+

ade*uate provisioning and maintaining a robust financial structure.

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BAN6 5ROFI/E

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BAN6 5ROFI/E

!stablished on >?th %ebruar( >FH b( r. . Ct. . Chidambaram Chett(ar+ leader in banking+

insurance and industr( areas+ $ndian Overseas 'ank 2$O'3 had the twin aims of attaining

specialization in overseas banking as well as foreign e)change business. $O' has alwa(s been

talked about for its e)cellent presence and services. #t the time of inauguration+ $O' started its

business in three branches at the same time. The branches were located at Raraikudi and

Chennai in $ndia and "angoon in (anmar+ erstwhile 'urma. $t had a branch in 1enang also.

9uring the time when $ndia became an independent nation+ $ndian Overseas 'ank was running

FI branches in $ndia and H overseas branches. #t that point of time+ the 9eposits of the bank was

"s.D.DE corer and #dvances was "s.F.AF corer

$O' received the status of nationalized bank in the (ear >D along with other >F ma6or banks.

'( this time+ it had >K branches. 0raduall( between the periods >D and >A+ $O' started

spreading its wings in foreign destinations like Colombo and Seoul.

$O' was the first bank to receive $SO ??> Certification from 9et Norske Perities 29NP3+

Netherlands in the month of September > for its Computer 1olic( and 1lanning 9epartment.

'esides+ in its 6ourne(+ it has won man( awards and accolades too. These include8

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N#'#"9Gs award A???-A??> for creating ma)imum number of credit links of Self 7elp

0roups in comparison to all the other 'anks in Tamil Nadu

'est #ward under the categor( of 'anking Technolog( in the (ear A??>

BRANC' 5ROFI/E 8IOB CAT'EDRA/9

Cathedral is also one of the important branches in Chennai. $n cathedral branch has more than

AI??? account is there and also issuing pension like Chennai co-operation+ 1ort trust+ 0ovt.

7ospitals+ railwa(,s+ TC+ 19+ Tele-communication department etc. this service is offering

from FK(ears ago. Totall( FA staff working for that the branch+ %oreign e)change dealing is done

here. #ll t(pe of loans is provided here. Locker+ 99+ 'C+ gold coins etc.+ are the facilities givenhere. Cathedral branch is C'S t(pe.

WOR6IN7 'OURS;

$n $ndian overseas bank working hours is from 8F?# to E8F?1.

'EAD OFFICE;

The head office of the $ndian overseas bank is located at mount road near spencer plaza

ADDRESS;

No HDF #nna salai+

Chennai 4 D????A

INDIAN OERSEAS BAN6;

$O' is a one of the ma6or bank based in Chennai with over >E?? domestic branch J D branches

in #broad. The bank was established in >FH to encourage overseas banking for foreigne)change operation. The bank started simultaneousl( with F branches there are

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$ndian overseas bank Chennai

$ndian overseas bank "angoon

$ndian overseas bank Singapore

$ndian overseas bank 'urma

$ndian overseas bank ala(sia

$ndian overseas bank Srilanka

$ndian overseas bank Sumatra

$n the (ear A??? $.O.' engaged $ndia in $1O which brought the 0ovt. share in the bank down to

HK.

IOB Intenationa% e"#ansion

>FH-FI8 #s mentioned above+ $O' was international from its inception with branches

$ndian Overseas 'ank "angoon+ $ndian Overseas 'ank 1enang+ and $ndian Overseas 'ank

Singapore.

>E>8 $O' opened a branch in ala(a that presumabl( closed almost immediatel( because

of the war.

>ED8 $O' opened a branch in Ce(lon.

>EH8 $O' opened a branch in 'angkok and re-opened others.

>EI8 United Commercial 'ank 2see below3 opened a branch in ala(a.

>E8 $O' opened a branch in 'angkok.

>DF8 The 'urmese government nationalized $O'Gs branch in "angoon.

>HF8 $O'+ $ndian 'ank and United Commercial 'ank established United #sian 'ank

'erhad. 2$ndian 'ank had been operating in ala(sia since >E> and United Commercial

'ank Limited had been operating there since >EI.3 The banks set up United #sian to

compl( with the 'anking Law in ala(sia+ which prohibited foreign government banks

from operating in the countr(. #lso+ $O' and si) $ndian private banks established 'harat

Overseas 'ank as a Chennai-based private bank to take over $O'Gs 'angkok branch. The

'aharat Overseas 'ank is the onl( private bank that the "eserve 'ank of $ndia has permitted

to have a branch outside $ndia. The ownership was8 $ndian Overseas 'ank 2F?3+ 'ank of

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"a6asthan 2>D3+ P(s(a 'ank 2>E.DD3+ %ederal 'ank 2>.DH3+ Rarur P(s(a 'ank 2>?3+

South $ndian 'ank 2>?3 and Rarnataka 'ank 2I.DH3. 'harat Overseas serves the $ndian

ethnic communit( in Thailand.

>HH8 $O' opened a branch in Seoul.

>>8 'ank of Commerce 2'C'3+ a ala(sian bank+ ac*uired United #sian 'ank 2U#'3. $n

> 'C' merged with 'ank 'umiputra ala(sia to form 'umiputra-Commerce 'ank

'erhad.

$ndian overseas bank has being operated in ala(sia since >E>+ and united commercial bank

limited has been operated since >EI. The bank has being set up united #sian compan( with

banking law in ala(sia+ which prohibited foreign 0ovt. 'ank from operating in the count(.

#lso $.O.' and other si) bank $ndian private bank etc. 'harath overseas banks as Chennai basedprivate bank to take over $.O.' 'angkok branch. The bharath overseas bank is the onl( private

bank+ which the reserve bank of $ndia has permitted to have a branch out side $ndia.

The ownership was+

$ndian overseas bank 2F?3

'ank of "a6asthan 2>I3

P(s(a bank 2>E.DD3

%ederal bank 2>.DH3

South $ndian bank 2>?3.

Rarnataka bank 2I.DH3.

'harath overseas bank the $ndian ethic communit( in Thailand.

$n >HH $.O.' opened a branch in Seoul.

>> bank of commerce 2'C'3 a ala(sian bank 2U.#.'3 in > 'C' merged with

bank 'rahmaputra ala(sia.

FUNCTIONS OF INDIAN OERSEAS BAN6

$ts accept deposits from the public.

$t lends mone( to the need( people+ for having loans+ 6ewels loans J for the customer

durable goods.

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'ank issue Che*ue.

$t deals in the bill of e)change+ dies+ promissor( notes+ coupons+ draft+ and bill of

lending+ railwa( receipts+ warrants+ certificates+ scripts J other securities weather

transferable or negotiable.

$t acts as agent for remittance of mone( on behalf of government+ municipalit(+ local

board+ $nsurance Corporation J other.

$t grants J issue letter of credit travelers Che*ue J circular notes.

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BOARD OF DIRECTORS

STREN7T' OF T'E BOARD:

1resentl(+ there are >? 9irectors on the 'oard of the 'ank. 'rief 1articulars of each of the

directors are placed below8

1& Shi S&A& BhatK?

@ualification 8 .Sc.+ '#+ C#$$'

#ppointed on8 >D.?K.A??I

Term ends on8 F>.?I.A?>?

29ate of Superannuation3

AT CANARA BAN6

Shri = L adan 6oined Canara 'ank in >HF as Officer trainee and has FK (ears of

e)perience. 7e served mostl( in northern areas of 1un6ab+ 7ar(ana+ Chandigarh+ 'ihar+ 9elhi

and had a posting at Overseas !)change Compan( in 9oha+ @uatar+ managed b( Canara

'ank+ 7e had one (ear stint as %acult( in Canara 'ank Training Centre+ umbai. 7e was the

0eneral anager from October A??F in Canara 'ank before his appointment in $O' as its

!)ecutive 9irector.

A. Smt.Nupur itra

!)ecutive 9irector

9O'8 ?I.>A.>KA

@ualifications8 '.Sc.+ LL'#ppointed on8 ?H.>A.A??

Term ends on8 F>.>A.A?>A

29ate of Superannuation3

AT BAN6 OF INDIA

Smt.Nupur itra started her career with 'ank of $ndia in Lucknow as 9irect "ecruit Officer in

the (ear >HK. 9uring her service spanning over FE (ears+ she served the 'ank of $ndia in

various capacities at the branches and its Qonal Offices.

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She moved over to head London 'ranch on overseas assignment in mid A??>. 7er overseas

tenure in London and thereafter as Chief !)ecutive of !urope operations was the most satisf(ing

part of her career in terms of business and contribution.

#fter an e)emplar( overseas stint+ back in the otherland+ she headed the umbai and

Chandigarh Qones of the 'ank. #s 0eneral anager at the Corporate Office she was in charge

of Credit+ S!+ "etail 'anking 29eposit J #dvances3+ Card 1roducts+ 1ublic "elations+

9epositor( Services+ etc.

Smt. Nupur itra was the 0eneral anager of 'ank of $ndia before her appointment in $O' as

its !)ecutive 9irector.

F. 9r. Pinita Rumar

0overnment Nominee 9irector

9O' 8 AK.>A.>KE

@ualifications 8 # 2!conomics3 1h. 9.+ $ndian

!conomic Service 2>HH3

Nominated b( 0O$ on8 >?.?D.A??I and will continue until further orders

9r Pinita Rumar+ is presentl( the !conomic #dviser+ 9epartment of %inancial Services+

inistr( of %inance+ New 9elhi.

She has published books on the following topics.

!conomic 0rowth and "ural 1overt( 4The $ndian !)perience 2>D?->K3

Learning to Share 8 !)perience and "eflections on 1articipator( "ural #ppraisal and

Communit( participation.

E. Smt. Chitra Chandramouliswaran

"'$ Nominee 9irector

9O' 8 AD.?H.>EE

@ualification8 .Sc.+ C#$$'

Nominated b( 0O$ on8 AH.?A.A??H and will

continue until further orders.

Smt Chitra Chandramouliswaran 6oined "'$ in >DH and has worked $ndustrial !)port and

Credit 9epartment+ 'anking Operations J 9evelopment and %oreign !)change 2!)change

Control3 9epartments and "'$,s Central Office in umbai. She has also held senior

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assignments in "'$,s "egional Offices in 9elhi and 'angalore. She retired as Chief 0eneral

anager of "eserve 'ank of $ndia in A??E.

She has been nominated b( 0O$ as "'$ nominee on the 'oard of the 'ank with effect from

AH.?A.A??H.

>& Shi N& Si$aan

orkmen !mplo(ee 9irector

9O'8 >?.>A.>K?

@ualification8 SSLC

Nominated b( 0O$ on8 A?.?E.A??H

Term ends on8 >.?E.A?>? and thereafter until his successor is dul(

nominated or till he ceases to be a workmen emplo(ee of $O' or until further orders+ whichever

is earlier.

Shri N Sridaran 6oined the 'ank on ?A.?K.>HA and is having more than FD (ears of banking

e)perience in $O'. 7e is presentl( a Special Cadre #ssistant attached to Cathedral 'ranch of the

'ank.

D. Shri '. P. #ppa "ao

1art-Time Non-Official 9irector

9O'8 ?D.?D.>K?

@ualifications8 '.Com. %.C. #.

Nominated b( 0O$ on8 A.?I.A??I

Term ends on8 AI.?I.A?>>

# *ualified Chartered #ccountant in >I?+ Shri #ppa "ao+ immediatel( 6oined #ndhra 'ank asOfficer and served for D (ears. Leaving #ndhra 'ank+ he 6oined /s The #ndhra Sugars Limited

of #ndhra 1radesh in the Senior anagement and served for H (ears.

7e is presentl( a Senior 1artner in /s '.P. "ao #ssociates+ Chartered #ccountants+ 0untur

started in the (ear >E. 9uring these >E (ears of service he was Statutor( 'ranch auditor for

Union 'ank of $ndia+ State 'ank of $ndia and #ndhra 'ank. 7e was Concurrent #uditor for

various branches of #ndhra 'ank and Union 'ank of $ndia at 0untur. 7e was also Statutor(

#uditor for the 9ivisions of United $nsurance compan( Limited appointed b( Comptroller and#uditor 0eneral of $ndia.

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H. Shri Soora6 Rhatri

1art-Time Non-Official 9irector 4 Second Time

9O'8 ?D.?I.>KK

@ualifications8 '.Sc.+ LL.'.+ 9ip. $n Labour Law

Nominated b( 0O$ on8 AD.>?.??

Term ends on8 AK.>?.A?>A or until further orders+

hichever is earlier defines8 &%oreign e)change means foreign

currenc( and includes---

2$3 9eposits+ credits and balances pa(able in an( foreign currenc(.

2$$3 2ii3 9rafts+ travelers Che*ue+ letters of credit or mills of e)change+ e)pressed or

drawn in $ndian currenc( but pa(able in an( foreign currenc(

2iii3 9rafts+ travellers Che*ue+ letters of credit or bills of e)change drawn b( banks+ intuitions or

persons outside $ndia+ bit pa(able in $ndian currenc(.

Thus+ foreign e)change includes foreign currenc(+ balances kept abroad+ and instruments

pa(able in foreign currenc(+ and instruments drawn aboard but pa(able in $ndian currenc(.

%oreign e)change is the mechanism b( which the currenc( of one countr( gets converted

into the currenc( of another countr(. %oreign e)change pla(s an important role in international

trade. The conversion of currencies is done b( banks who deal in foreign e)change. These banks

maintain stocks of foreign currencies in the form of balances with banks abroad.

RE5ORTIN7 OF FOREI7N E=C'AN7E TRANSWACTIONS

B BRANC'ES:

MONETAR /IMT:

#N= S#L! O" 1U"C7#S! O% %O"!$0N !WC7#N0! 7!"! "!1!! P#LU! $S "S.K?+

???/- or above+ branches should obtain ratFs form dealings rooms at %!9CO 2%O"!$0N!WC7#N0! 9!P!LO1!NT C!NT"#L O%%$C!3 Th.'.+ umbai+ as the case ma(be. $f the

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transactions are put through at the rates given b( %!9CO/Tr.'.+umbai+ the same should be

reported b( branch immediatel( b( tele)/fa).

$f the branches purchase more than one sale at a time+ whose aggregate value is rs.K?+???/- and

above then also branches should contact dealings room at %!9CO/Th.'. +umbai for rates and

reporDt the same b( tele)/fa) even though the individual item ma( be below "s.K?+???/-.

$f the branches purchase/sell foreign e)change 2either as one or multiple3 whose value at the

time of purchase/sale will be below "s.K?+???/- b( appl(ing the card rate+ but during the da( the

aggregate purchase or sale e)ceed "s.K?+???/-+ then at the end of the da( branches should report

the aggregate of such purchases/sales dealing room at %!9CO/Tr. umbai b( teem/fa) at the

card rate if the aggregate purchase or sale is below rs.K?+???/-+ branch should report through

e)change position memo immediatel(. The e)change position memo ma( be sent b( teem or

details conve(ed over phone according to the convenience of branch. Care should be taken not

to omit an( transaction form reporting

$n case of u since bill discounted+ the branches should contact dealing room at %!9CO/T". '+

umbai for rates irrespective of the amount of bill+ i.e.+ even if the rupee amount of bill is less

than "s.K?+???/-. 'ranches should not appl( card rates but appl( card rates but appl( rates

obtained from dealing room.

C'ASSIFICATION OF SA/E5URC'ASE TRANSACTIONS FOR

RE5ORTIN7 5UR5OSES

The purchase transactions are classified under the heads e)ports and non-e)ports. Similarl(

the sale transactions are classified under the heads non-import

The items are to be include these heads are as below.

E=5ORT NON@E=5ORTS IM5ORTS NO@IM5ORTS

!)port bills

1urchased

discounted

negotiated

1urchase of

instruments

Other than for e)port

Sales transaction for

all import whether

under LC or not

under LC

Sale for issuances of 99 /

TT/TC etc.+ for other than

imports

"ealization of "ealization Sales of foreign Conversion of N"! rupee

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e)port bill sent

and collection.

instruments on

collection other than

of e)ports

e)change for import

bill which are

received directl( b(

the imported

to %CN"/"%C deposits

etc.+

O'" realizations $nwards remittance

like other than

e)ports

The sales transaction

representing advance

remittance to

overseas e)porters for

imports to $ndia

National sales for transfer

of Overdue e)ports bill

purchased / discounted/

negotiated to

##O"'X#dvance against

overdue e)port bills

receivable

1urchase of

Che*ue / 99 is

received b(

e)ported towards

e)port proceed

Conversion of %CN"

X'+ !!%C/"%C/%C#

deposits to rupees

Sales of foreign

e)change for direct

imports

Sales for re*uire and

realize and purchased /

discounted negotiated

e)port bills or unrealized

purchased

instrumentsX CL!#"NY

"ealization of

Che*ue / 99 is

sent on collection

returning to

e)ports

Conversion of 1C%C+

%CL+ CTL+ amount

to rupees

---------------- #ll cross currenc( sales

where the sales leg is not

per training to imports

1urchase of an(

inwards

remittance /

advance

remittance

towards e)ports

#n( other purchase

transaction which is

non-e)port in nature

---------------- #n( other sales other than

imports

1a(ments of

e)ports bills b(

debit of N"! a/c

#ll cross currenc(

transaction where the

corresponding

purchase leg does not

------------- ----------------

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certain to e)ports

OT'ER /OANS

The bank providing personal loans for purchasing television+ refrigerator other house hold

article. There also offering loans to small scale industr(+ self-emplo(ed person J transport

operators.

NRI ACCOUNTS

Non-"esident Ordinar( 2N"O3

"esident %oreign Currenc( #ccount 2"%C3

%oreign Currenc( Non-"esident #ccounts 2'anks3

N"$ home loan scheme

N"$ remittances

"emittances procedures

Tracking cell

%orward cover

$O' N"$ shield

$O' !)po 0old Card

Co#oate Ban+in,

icro Small and edium !nterprises 2S!3

$T J '1O

Cash management services -$O' ST#"S

Rua%

$O'Gs commitment for social causes

#gricultural short time loans

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%inancial inclusion

#gri business consultanc(

OT'ER SERICES AND 5RODUCTS:

P$S# $nternational Credit Cards

P$S# 9ebit Card

$O' %ine 0old

"eal Time 0ross Settlement 2"0TS3

%ore) Collection Services

#griculture and 'usiness Consultanc( Service

$nvestment options like utual %unds and Shares

SECONDAR FUNCTION OF T'E BAN6

Secondar( function refers to the various a)illar( service rendered b( the bank

Safet( locker

Clearing of bills

#)illar( service

Overdraft of weavers

%inancial anal(sis for 19S

$ssue of 99

"efinance for product loan

$ssue of 'C

IOB CREDIT CARD

eiver of annual / entr( fee 2 life time3

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$nternational card affiliated to P$S#

"oll over facilities with repa(ment of >? of the outstanding amount

Lowest interest AE 2anal(zed3 for the roll over credit

%ree credit card period up to K? da(s from the date of purchase.

!nhanced insurance coverage such as personal+ accident+ baggage+ purchase+ protection+

etc.

#dd on car facilities to the famil( members.

Lowest service charges A.AK on the cash pa(ment.

%acilities to draw cash at over >K??? #Ts in $ndia and over I.H lakhs #Tsworldwide.

1a(ment for fee to foreign institution

"eward point are redeemed and credited to the account.

INSURANCE /IN6ED RETAI/ 5RODUCTS

$O' 6eevan

7ealth care plans

Pid(a suraksha

Pid(a 6othi with suraksha

Liabilit( insurance for retail loans.

N"$ shield

MUTUA/ FUND DISTRIBUTIONS

%ranklin Templeton limited

Tata mutual funds

$TC mutual funds

Sundram '1 1aribas funds

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50/132

2in "s. EK3

#bove > lakh- >?lakh"s. >.FI per >???

2in "s. >?A?3

"s. A.?H per >???

2in "s. >?KI3

#bove >? lakh"s. >.FI per >???

2in "s. >DFA3

"s. A.?H per >???

2in "s. AEEI3

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STATEMENT OF T'E

OBECTIES

51


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OBECTIE OF T'E STUD

5RIMAR OBECTIE

To stud(+ anal(ze and evaluate the customer satisfaction level towards the different

services rendered b( the bank and to identif(ing the critical success factors.

SECONDAR OBECTIES

To evaluate the awareness level of the customer on the product and services.

To find out the differences among perceived service and e)pected service.

To evaluate the process efficienc( in customer *uer( and re*uirement handling

To understand consumer,s preferences.

To access the degree of satisfaction of the customers

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REIEW OF /ITERATURE

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1. #ccording toAnne@Bite Stens,aa$ Senio Ne4s E$ito< une 2G@2GGH states that the

new insurance product is an arrangement between the United $ndia $nsurance Compan(

Limited and the $O' that provides $nsurance cover for N"$s under the scheme - $O' N"$

Shield. The scheme covers N"$s during their sta( in $ndia+ up to a ma)imum of >I? da(s a

(ear. N"$s during their visit to $ndia find $nsurance a pre-re*uisite to meet their

contingencies arising out of ailments+ accidents+ baggage loss and other perils like fire etc.

This scheme will meet all the $nsurance re*uirements of the N"$s and covers varied risks

anticipated during their sta( in $ndia. #ll $O' bank account holders who desire to participate

in this insurance scheme can avail the facilit( at U#! !)change outlets - an e)tensive

network in the U#! - to pa( their premium amounts. On the occasion of the launch+ r. T

S Nara(anasami+ Chairman and anaging 9irector of $ndian Overseas 'ank said+ $O'

which is a D (ears old bank has adapted successfull( to the emerging trends b( introducing

new products and services in financial sector. The 'ankGs power of performance has

stemmed from customer-centric business ethos+ relentless $T initiatives and polic( focus.

Though we have association with man( e)change companies in 0ulf area+ our association

with U#! !)change Centre+ U#! dates back to more than AK (ears+ added Nara(anasami.

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A. A**o$in, to 5R Ne4s4ie LON9ON+ October + $ndian Overseas 'ank in Singapore

has selected integrated core banking solution+ is(s idas 1lus+ to introduce new products

and client services to support business e)pansion+ deliver new levels of customer satisfaction

and improve operational performance while enabling market leading international standards

in accounting and regulator( compliance J controls. $ndian Overseas 'ank was the first

$ndia based bank to commence operations in Singapore more than D? (ears ago and provides

a comprehensive range of banking services specializing in retail banking+ trade finance and

a wide range of remittance facilities to $ndia

F. A**o$in, to /assa< Wa%fie$ M&< Mano%is< Chis< Winso< Ro)et De*em)e > 2GGG& A**o$in, to /ee< 'a+si+< /ee< on,+i< oo< Don,+eun Ma*h 20 2GG2 Statethat the

1erformance as perceived b( customers rather than the difference between that perception and

the customerGs prior e)pectations e)plains more the variation in service *ualit(. $t is the

customerGs satisfaction that leads to perceived *ualit( of service rather than the reverse. ore

emphasis on responsiveness is e)pected to be placed on people-based services than on

e*uipment and facilit( based services.

H& A**o$in, to CBA RE5ORT une 12 @ 2GG>state that the banking industr( had a better

than average score for customer satisfaction over the past (ear+ according to the latest report b(

#merican Customer Satisfaction $nde) 2#CS$3.

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The score for how well the banking industr( is doing overall 2HK+ unchanged from last (ear3+

compares to the overall Level of satisfaction in the US econom(+ representing all companies and

industries measured b( the #CS$+ which stands at HE.F+ so the banking industr( is doing slightl(

better than the average of all consumer goods and services.

!stablished in >E+ #CS$ is a uniform and independent measure of household consumption

e)perience+ which tracks trends in customer satisfaction and provides benchmarking insights of

the consumer econom(. The #CS$ is produced b( the 'usiness School at the Universit( of

ichigan+ in partnership with the #merican Societ( for @ualit( 2#S@3 and the international

consulting firm+ C%$ 0roup.

#CS$ sa(s their scores are a leading indicator of future consumer bu(ing. 7igh satisfaction

scores make it easier for banks to increase their relationships with their customers and sell them

more products and services low satisfaction has the opposite effect. $n general+ this translates

into a prediction of changes in revenues+ according to #CS$.

J& A**o$in, to Ro)et W& Amston,< Tan Boon Sen, Se#tem)e 2 2GG> state that

!)tends the current understanding of customer satisfaction at the business-to-business level in

the #sian banking industr(. The main thrust of the paper is an attempt to conceptualize a

comprehensive model of satisfaction at the business-to-business level incorporating guan)i

2Chinese business relationships3+ relationship marketing and the disconfirmation paradigm. The

essence of the research highlighted the importance of relational constructs+ in addition to the

disconfirmation paradigm+ in impacting customer satisfaction at the business-to-business level in

the Singapore banking industr(. #t the business-to-business level in the #sian conte)t+ the

disconfirmation paradigm is still the predominant paradigm influencing the customer

satisfaction process. "elationship marketing and guan)i are significant in our comprehensive

model of corporate-customer satisfaction. "elationship marketing was found to have both adirect and an indirect impact 2through disconfirmation3 on corporate-customer satisfaction.

0uan)i was found to e)ert an indirect impact on satisfaction as opposed to the initial

h(pothesized direct impact on satisfaction.

K& A**o$in, to /uis Moutinho< Dou,%as T& Bo4nie Noem)e 20 2GGK State that the

nature and direction of the satisfactions that are delivered to customers of bank services are

e)plored+ and the criteria used to evaluate these services are highlighted. The non-metric

multidimensional scaling techni*ue enabled respondentsG perceptions to be represented spatiall(.

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$t is revealed that respondents had high levels of satisfaction with regard to the location and

accessibilit( of branches and #Ts+ and acceptance of the current levels of banking fees but

e)pressed some caution in their evaluation of new and improved services.

&A**o$in, to U&S& Ban+ une 2 @2GGK State that the $NN!#1OL$S - 2'usiness ire3

U.S. 'ank customers are increasingl( lo(al and satisfied+ and the( consider U.S. 'ank,s services

to be of high *ualit( and value according to the #merican Customer Satisfaction $nde) 2#CS$3

research conducted in the fourth *uarter of A??.

U.S. 'ank surpassed industr( averages and topped the four largest banks in the countr( in

customer satisfaction+ customer e)pectations+ perceived *ualit(+ perceived value and customer

lo(alt(.U.S. 'ank scored JJ in oea%% ACSI *ustome satisfa*tion+ compared to the ne)thighest reported score of HF and the industr( average of HK. U.S. 'ank e)ceeded reported

industr( averages in the important categories of lo(alt(+ *ualit( and value b( seven or more

points.

&e,ve e)perienced a flight to *ualit( for man( months+ and now these results are evidence of

our success+ said "ichard 9avis+ chairman+ president and chief e)ecutive officer of U.S.

'ancorp. &Our compan( has been a source of strength and stabilit( and as these scores

demonstrate+ customers are taking notice. #t U.S. 'ank+ the( find high *ualit( service and

value+ and perhaps most importantl(+ our customers are ver( lo(al. #s now the fifth largest

commercial bank in the United States with the fourth largest branch network+ we are ver(

pleased with our results+ and we know that this positive momentum is 6ust the beginning. e are

focused on customer lo(alt( with a number of new programs aimed at moving us from ver(

good to great.

#CS$ independentl( surve(s customers of the largest companies in consumer goods and services

industries. U.S. 'ank has engaged #CS$ to surve( its retail customers over the last several (ears

and continues to improve its scores.

>?. #ccording to D&M& Maha#ta The )usiness %ine A#i% 11 @ 2GGK8#a,e09 State that

The working of the customerGs mind is a m(ster( which is difficult to solve and understanding

the nuances of what customer satisfaction is+ a challenging task. This e)ercise in the conte)t of

the banking industr( will give us an insight into the parameters of customer satisfaction and their

measurement. This vital information will help us to build satisfaction amongst the customers and

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customer lo(alt( in the long run which is an integral part of an( business. The customerGs

re*uirements must be translated and *uantified into measurable targets. This provides an eas(

wa( to monitor improvements+ and deciding upon the attributes that need to be concentrated on

in order to improve customer satisfaction. e can recognize where we need to make changes to

create improvements and determine if these changes+ after implemented+ have led to increased

customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William

Thomson Kelvin (18!-1#$%.

>>. #ccording to &M& Sa$iLSohai%an$Ba%a*han$an Shanmu,ham ma*h 23 @2GG3 State

that

the paper e)amines the current trends in the e-commerce revolution that has set in motion in theala(sian banking sector and reports on an empirical research that was carried out in ala(sia

to stud( the customers, preference for electronic banking and the factors+ which the( considered

influenced the adoption of electronic banking. "esults based on the anal(sis of data relating to

F?? respondents indicate that while there is no significant differences between the age and

educational *ualifications of the electronic and conventional banking users+ some differences

e)ists on other demographic variables. #nal(sis further reveals that accessibilit( of $nternet+

awareness of e-banking+ and customers, reluctance to change are the factors that significantl(

affected the usage of e-banking in ala(sia. The paper discusses on the implications of these.

Limitations of the stud( are highlighted and further research directions are suggested.

12& A**o$in, to /ee< Min, Chan,; '4an< In, San@To+-o De*em)e 1< 2GG> State that

the

This stud( e)amines whether there are economic benefits to be gained from improving service

*ualit( in the Taiwanese banking industr(. Service *ualit( is perceived *ualit( and different

from ob6ective or actual *ualit( being a 6udgment usuall( made within a customer evoked set.

Service *ualit( resembles an attitude in man( wa(s+ and service *ualit( is distinct from customer

satisfaction. Traditional financial ratios are not appropriate for measuring the economic benefits

of service *ualit( improvement.

1&. 'ccordin to )*tellen+osch London arch 1 - ##!State that the easuring user

satisfaction with information s(stems has attracted widespread research attention+ given it is

often used as an indicator of success. The $nternet has allowed applications to be e)tended to

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customers of an organization+ where interaction can take place through a web site+ t(picall( from

home or office. The focus of attention with such applications is customer satisfaction. $n this

research+ a A>-item+ H-factor instrument developed to measure customer satisfaction with web

sites that market generic digital products and services was modified slightl(+ and then

empiricall( tested and validated in the conte)t of $nternet banking specificall(. # >-item+ K-

factor validated instrument emerged+ the factors being Customer Support+ Securit(+ !ase of Use+

Transactions and 1a(ment+ and $nformation Content and $nnovation. The difference in number

of factors as compared to the generic instrument was attributed to the uni*ue nature of $nternet

banking web sites. These and other findings are discussed in the paper+ and their implications

e)amined.

10& A**o$in, to Nan@'on, /in< Wen@Chun Tsen,< u@Chun, 'un,< Dai$ C& en

To+-o Ma*h 2GGKState that the Soon after becoming a TO member+ Taiwan found the

internationalization and liberalization in the financial industr( ushered its domestic banks into a

new era. $n response to this global trend+ all its banks strove to rel( on customer relationship

management 2C"3 to enhance customer value 2CP3. This stud( aims to probe further into the

connection between CP and C". # series of e)aminations revealed that 2>3 both functional

and social value impact customer behavior directl( and positivel( 2A3 customer satisfaction

positivel( and directl( affects customer lo(alt( 2F3 a positive and direct relationship e)ists

between customer lo(alt( and customer behavior and 2E3 the positive and significant

relationship between CP and customer behavior can be developed through mediators such as

customer satisfaction and customer lo(alt(. Conse*uentl(+ banks should offer their customers

different services+ products+ and marketing channels to meet their diversified needs to cultivate a

win-win environment of C" for both parties.

1>& A**o$in, to A%essan$o A)oe an$ Buno Busa**a une 2K @2GGK State that

The paper presents the results of an e)tensive stud( on the determinants of customer satisfaction

for a retail bank. $n doing so+ it uses a revised version of the traditional anal(ses based on

derived measures of attribute importance. The need for a revised methodolog( is prompted b(

the insights of the two- and three-factor theories of customer satisfaction+ such as RanoGs

framework. $ndeed+ the evidence from K??? customers of a prominent $talian bank confirms a

non-linear and as(mmetric relationship between attribute performances and overall customersatisfaction. The results from both a traditional and our revised approach are compared. hile

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this approach can be applied across different industries+ it should not be assumed that the

numerical results presented in the paper appl( to conte)ts with substantiall( different underl(ing

characteristics. 0eneral trends and implications for banking services are reported.

1H& A**o$in, to 5ata# 6&& Moha#ata anua- 1 @2GG State that

The article e)amines whether service *ualit( of $ndian commercial banks increases customer

satisfaction that fosters customer lo(alt(. 9ata were collected from FK? valued customers of

scheduled commercial bank branches in Orissa 2$ndia3. # *uestionnaire elicited information on

socio4demographic variables along with human+ technical+ and tangible aspects of service

*ualit(+ customer satisfaction+ and lo(alt(. "esults suggest that better human+ technical and

tangible aspects of service *ualit( of the bank branches increase customer satisfaction. 7umanaspects of service *ualit( were found to influence customer satisfaction more than the technical

and tangible aspects. Customer satisfaction furthers customer lo(alt(. $ncrease in service *ualit(

of the banks can satisf( and retain customers. $n the $ndian banking sector+ human aspects are

more important than technical and tangible aspects of service *ualit( that influence customer

satisfaction and promote and enhance customer lo(alt(.

1J& A**o$in, to Me,ha Tie$itheE*onomi*s times De*em)e J 2GG 85a,e J9 State that

the

Customer satisfaction has become a ma6or source of concern in retail banking business. ith

e)ceptional progress in the establishment of banks in $ndia+ banks are increasingl( interested in

retaining e)isting customers and targeting new customers. $n this paper+ it is proposed that

*ualit( of service is an indicator of customer satisfaction. easuring service *ualit( involves

ob6ective feedback about e)isting customers of $C$C$ bank with respect to their e)pectations and

services offered. 1erformance of a bank ma( be evaluated with regard to a set of satisfaction

parameters that indicate the strengths and weaknesses of an organization. Standard scale of

S!"P@U#L developed b( 1arasuraman et al. has been used to conduct the surve(. This stud( is

based on five overall dimensions of customer satisfaction with services provided b( $C$C$. The

five dimensions used to measure service *ualit( are tangibilit(+ reliabilit(+ responsiveness+

assurance and empath(. This stud( gives useful insights to boost customer satisfaction towards

$C$C$.

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1K& A**o$in, to Ra(6uma the 'in$u Au, J 2GGK State that

The banking industr( like man( other financial service industries is facing a rapidl( changing

market+ new technologies+ economic uncertainties+ fierce competition and more demanding

customers and the changing climate has presented an unprecedented set of challenges 2>3.

'anking is a customer oriented services industr(+ therefore+ the customer is the focus and

customer service is the differentiating factors 2A3.

The banking industr( in $ndia has undergone sea change since post-independence. ore

recentl(+ liberalization+ the opening up of the econom( in the ?s and the governmentGs decision

to privatize banks b( reduction in state ownership culminated in the banking reforms based on

the recommendations of Narasimha Committee 2F3. The prime mover for banks toda( is profit+

with clear indications from the government to Gperform or perishG. 'anks have also started

realizing that business depends on client service and the satisfaction of the customer 2E3 and this

is compelling them to improve customer service and build up relationship with customers.

ith the current change in the functional orientation of banks+ the purpose of banking is

redefined. The main driver of this change is changing customer needs and e)pectations.

Customers in urban $ndia no longer want to wait in long *ueues and spend hours in banking

transactions. This change in customer attitude has gone hand in hand with the development of

#Ts+ phone and net banking along with availabilit( of service right at the customerGs doorstep.

ith the emergence of universal banking+ banks aim to provide all banking product and service

offering less than one roof and their endeavor is to be customer centric 2K3. ith the emergence

of economic reforms in world in general and in $ndia in particular+ private banks have come up

in a big wa( with prime emphasis on technical and customer focused issues.

1& A**o$in, to 7& Mihe%isH Fe) 2GG Comme*ia% Ban+ of 7ee*e states that Customer

satisfaction represents a modern approach for *ualit( in enterprises and organizations and serves

the development of a trul( customer-focused management and culture. easuring customer

satisfaction offers an immediate+ meaningful and ob6ective feedback about clients, preferences

and e)pectations. $n this wa(+ compan(,s performance ma( be evaluated in relation to a set of

satisfaction dimensions that indicate the strong and the weak points of a business organization.

This paper presents an original customer satisfaction surve( in the private bank sector. The

implemented methodolog( is based on the principles of multicriteria anal(sis and preference

disaggregation modeling. The most important results are focused on the determination of the

critical service dimensions and the segmentation to customer clusters with distinctive

preferences and e)pectations.

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RESEARC' MET'ODO/O7

REASERC' MET'ODO/O7

0&1 RESEARC' DESI7N:

# descriptive stud( tries to discover answers to the *uestions who+ what+ when+ where+ and+

sometimes+ how. The researcher attempts to describe or define a sub6ect+ often b( creating a

profile of group of problems+ people+ or events. Such studies ma( involve the collection of data

and the creation of a distribution of the number of times the researcher observes a single !vent

or characteristic 2the research variable3+ or the( ma( involve relating the interaction of two or

more variables. Organizations that maintain databases of their emplo(ees+ customers+ and

suppliers alread( have significant data to conduct descriptive studies using internal information.

=et man( firms that have such data files do not mine them regularl( for the decision-making

insight the( might provide.

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This descriptive stud( is popular in business research because of its versatilit( across disciplines.

$n for-profit+ not-for-profit and government organizations+ descriptive investigations have a

broad appeal to the administrator and polic( anal(st for planning+ monitoring+ and evaluating. $n

this conte)t+ how *uestions address issues such as *uantit(+ cost+ efficienc(+ effectiveness+ and

ade*uac(. 9escriptive studies ma( or ma( not have the potential for drawing powerful

inferences. # descriptive stud(+ however+ does not e)plain wh( an event has occurred or wh(

the variables interact the wa( the( do.

0&2 SAM5/IN7

Convenience sampling method is used for the surve( of this pro6ect. $t is a non-probabilit(

sample. This is the least reliable design but normall( the cheapest and easiest to conduct .$n this

method "esearcher have the freedom to choose whomever the( find+ thus the name convenience.

!)ample includes informal pools of friendsand neighbors or people responding to a newspaper,s

invitation for readers to state their position on some public issue.

0&2&1& SAM5/E SIE

Sample size denotes the number of elements selected for the stud(. %or the present stud(+ >??

respondents were selected at random. #ll the >?? respondents were the customers of $O' in

cathedral 'ranch

0&3 SAM5/IN7 MET'OD

# sample is a representative part of the population. $n sampling techni*ue+ information is

collected onl( from a representative part of the universe and the conclusions are drawn on that

basis for the entire universe. # convenience sampling techni*ue was used to collect data fromthe

respondents.

0&0 UESTIONNARIE DESI7N:

The *uestionnaire consists of A t(pes of *uestions.

i3 open ended

ii3 Closed ended.

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O5EN ENDED UESTION

This refers to a *uestion that has no fi)ed alternatives to which the answer must confirm. The

respondent answers in his own words and at an( length the( choose.

C/OSED ENDED UESTION

$t contains those *uestions in which the respondent is given a limited number of alternatives

responses from which he/she is to select the one that most closel( matches his attitude.

The fi)ed alternative *uestions ma( be taken in the form of

9ichotomous *uestions

ulti-choice *uestions

Di*hotomous Luestions

$t refers to one+ which offers the respondent a choice between onl( A alternatives and reduces the

issues to its simplest terms.

Mu%ti@*hoi*e Luestions

# multiple-choice *uestion refers to one+ which provides several set of alternatives. ultiple-

choice *uestions can be used when an issue has more than two aspects.

0&> 5ERIOD OF T'E STUD

#ccording to the Universit( of adras Terms pro6ect is from the period of >stManuar( to arch

F>st. So+ the F months are divided according to the following manner in order to be an effective

pro6ect.

Manuar(8 focusing on the stud( of compan( as whole and identif(ing the problems and

framing the title+ collecting information as well as details raring industr( and also

framing ob6ectives.

%ebruar(8 framing of *uestionnaire for data collection+ information collected through

*uestionnaire for data collection and interpretation.

arch8 "esearch has been done b( the researcher such as+ anal(sis the data+ tabulated+and interpreted. %rom the interpretation the researcher list out certain findings+

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suggestion+ conclusion and rough cop( submission for correction+ after the correction fair

cop( was prepared and submitted.

0&H& MET'OD OF DATA CO//ECTION

To know the response+ the researcher used *uestionnaire method. $t has been designed as a

primar( research instrument. @uestionnaires were distributed to respondents and the( were

askedto answer the *uestions given in the *uestionnaire. The *uestionnaires were used as an

instrumentation techni*ue+ because it is an important method of data collection. The success of

the *uestionnaire method in collecting the information depends largel( on proper drafting. So in

the present stud( *uestions were arranged and interconnected logicall(. The structured

*uestionnaire will reduce both interviewers and interpreters bias. %urther+ coding and anal(sis

was done for each *uestion,s response to reach into findings+ suggestions and finall( to the

conclusion about the topic.

0&H&1 T5ES OF DATA

!ver( decision poses uni*ue needs for information+ and relevant strategies can be developed

based on the information gathered through research. "esearch is the s(stematic ob6ective and

e)haustive search for and stud( of facts relevant to the problem "esearch design means the

framework of stud( that leads to thecollection and anal(sis of data. $t is a conceptual structure

with inwhich research is conducted. $t facilitates smooth sailing of various research operations to

make the research as effective as possible.

0&H&25RIMAR DATA

1rimar( data are those collected b( the investigator himself for thefirst time and thus the( are

original in character+ the( are collected for particular purpose.# well-structured *uestionnairewas personall( administrated to theselected sample to collect the primar( data.

0&H&3SECONDAR DATA

Secondar( data are those+ which have alread( been collected b( someother persons for their

purpose and published. Secondar( data areusuall( in the shape of finished products. Two t(pes

of secondar( data were collected for the preparation of thepro6ect work8

Intena% Data was generated from compan(,s brochures+ manualsand annual reports

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Total No. of "espondents

Total No. of Customers

!i

0rand Total

E"tena% Data< on the other hand+ was generated from magazines+ research books+ intranet and

internet 2websites3.

0&JTOO/S USED FOR ANA/SIS OF DATA

>. Simple percentage anal(sis

A. eighted score method

F. Chi- s*uare anal(sis

0&J&1SIM5/E 5ERCENTA7E ANA/SIS

1ercentage refers to a special kind of ratio percentage are used to describe relationship.

1ercentageZ

0&J&2WEI7'TED SCORE MET'OD

$n weighted score method the weights are obtained b( multipl(ing the rating given with the

fre*uenc(+ this gives a ver( basic idea as to the factor carr(ing highest to lowest weight.

eighted averageZ

0&J&3C'I@ SUARE ANA/SIS

[A test was first used b( Rarl 1earson for testing the significance of discrepanc( between the

e)perimental values and the theoretical value obtained under theor( of h(pothesis. This test is

known as chi- s*uare test of goodness of fit. Rarl 1earson proved that the statistic.

[A-\ 2oi-!i3A

!i Z Column Total ) "ow Total

67

No. of. Customers ) >??

"ating ] %re*uenc(


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here8

Oi refers to the observed fre*uenc(

!i refers to the e)pected fre*uenc(

0&K SCO5E OF T'E STUD

This stud( is limited to the customers with in Chennai cit(. The stud( will be able to reveal the

preferences+ needs+ satisfaction of the customers regarding the banking services+ $t also help

banks to know whether the e)isting products or services the( are offering are reall( satisf(ing

the customers, needs.

0& /IMITATIONS OF T'E STUD

#lthough the stud( was carried out with e)treme enthusiasm and careful planning there are

several limitations+ which handicapped the research vise+

1& Time Constaints:

The time stipulated for the pro6ect to be completed is less and thus there are chances that some

information might have been left out+ however due care is taken to include all the relevant

information needed.

2& Sam#%e si.e:

9ue to time constraints the sample size was relativel( small and would definitel( have been

more representative if $ had collected information from more respondents.

3& A**ua*-:

$t is difficult to know if all the respondents gave accurate information some respondents tend to

give misleading information.

0. $t was difficult to find respondents as the( were bus( in their Schedule and collection of data

was ver( difficult. Therefore+ the stud( had to be carried out based on the availabilit( ofrespondents

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DATA ANA/SIS

?

INTER5ERTATION

DATA ANA/SIS ? INTER5RETATION

DATA ANA/SIS

#nal(sis is the process of placing the data in an ordered form+ combining them with the e)isting

information and e)tracting the meaning from them. $n other words anal(sis is an answer to the

*uestions what message is conve(ed b( each group of the data &which are otherwise raw facts

are unable to give meaning full information. # raw data become an information onl( when the(

are anal(zed and put in a meaning form.

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INTER5RETATION

$nterpretation is a process of relating various bits of information to e)isting information.

$nterpretation attempts to answer well+ what relation e)isting between the findings to research

ob6ectives and h(pothesis framed for the stud( in the beginning.

TAB/E H&1

T5E OF ACCOUNT TO O5ERATE WIT' BAN6

S/& NO ACCOUNT T5E NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> Saving #ccount KI KI

A Current #ccount AA AA

F %i)ed 9eposit >H >H

E N"$ #ccount >F >F

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Ana%-sis: %rom the above table it could be inferred that KI of the customers are choosing

savings account and ver( few of about >F prefer N"$ #ccount.

Inte#etation: ost of the respondents are preferring savings account. 1resentl( the bank

offers varieties of account services to the customer.

C7#"T D.>

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TAB/E H&2

Fa*i%it- /ee% of IOB than SBI ? 'DFC Ban+

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S/& NO FACI/IT /EE/ NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> !)cellent AH AH

A 0ood EF EF

F Satisfactor( AF AF

E 1oor H H

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that EF of the customers are satisfied with

the service and *ualit( of products of their bank. Onl( H of customers are sa(s poor facilit( in

$O'.

Inte#etation: ost of the respondents sa( $O' offering good facilit( to its customer. 'ut to

the other end few people sa(s the facilities are less.

C7#"T D.A

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TAB/E H&3

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IOBs a%ue A$$e$ Sei*e

S/& NO A/UE ADDED

SERICE

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> =oung Star >A >A

A Senior Citizen KH KH

F 1repaid Cards AE AE

E "ecurring 9eposit H H

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that KH of the customers are using senior

citizen service and onl( H are using recurring deposit scheme.

Inte#etation: ost of the respondents are utilizing the value added service as senior citizen

accounts. 'ut rarel( ver( few people are choosing recurring deposit account.

C7#"T D.F

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TAB/E H&0

5o$u*t Ratin,s of IOB fom Othes

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S/& NO 5RODUCT

RATIN7

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> !)cellent >D >D

A 0ood DA DA

F 'etter A? A?

E 1oor A A

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that DA of the customers rate $O' products

as 0ood. Onl( A of the people "ate $O' products as 1oor.

Inte#etation: ost of the respondents are rating the products as good. oderate peoples are

rating as e)cellent. Onl( few people in the customers are rating the $O' products as poor.

C7#"T D.E

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TAB/E H&>

REFERRIN7 IOB TO OT'ERS

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S/& NO REFERRIN7 IOB NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> =es HD HD

A No >I >I

F Not Sure D D

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that HD of the customers are read( to refer

$O' to others. Onl( D of customers are not sure what to do.

Inte#etation: ost of the respondents are obviousl( read( to refer $O' to their friends+

relatives and others. 'ut few of them are not sure on this decision also some people are straight

forward in not referring $O' to others.

C7#"T D.K

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TAB/E H&H

Re%ationshi# 4ith IOB

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S/& NO IOB ACCOUNT

O5ERATIONS

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> ^ > =ear >H >H

A >-K =ears KK KK

F K->? =ears >H >H

E _>? =ears >> >>

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that KK of the customers are having

relationship with the bank for about >-K (ears. Onl( >> of customers are having more than >?

(ears of relationship with $O'.

Inte#etation: ost of the respondents are satisfied with the service offered b( $O'. 1resentl(

the bank has more customers who have the account with them for more than a (ear and less than

K (ears.

C7#"T D.D

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TAB/E H&J

5URIT OF 7O/D OFFERED IN IOB

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TAB/E H&K

Best Insuan*e 5o$u*t in IOB

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S/& NO INSURANCE

5RODUCT

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> Ta) Saver >K >K

A $nvestment A? A?

F Securit( K K

E #ll the #bove D? D?

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that D? of the customers choose the entire

insurance product for their benefits. Onl( K of the customers choose the insurance product

offered them securit(.

Inte#etation: ost of the respondents are investing in $O' for ta) saving+ investment and

securit( for their mone(. This shows that the customers believe $O' has a best insurance market

in $ndia.

C7#"T D.I

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S/& NO OT'ER SERICES

IN IOB

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> Pisa Credit Card >D >D

A Pisa 9ebit Card KE KE

F $O' %ine 0old AF AF

E %ore) !)change H H

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that KE of the customers feel the Pisa

9ebit Card is the service other than the general service. Onl( H of the people prefer to %ore)

e)change.

Inte#etation: ost of the respondents are utilizing the additional service of visa debit card

from $O'. 'ut onl( few people are utilizing the %ore) e)change and other services from $O'.

C7#"T D.

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TAB/E H&1G

7OERNMENT BUSINESS SC'EMES T'ROU7' IOB

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S/& NO 7OERNMENT

BUSINESS

SC'EME

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> 1ension 1a(ment E? E?

A 1% Scheme AH AH

F Senior Citizen

#ccount

F F

E #ll the above F? F?

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that E? of the customers are pension

pa(ment account holders. Onl( F of the account holders are senior citizen account holders in

the government retired account holders

Inte#etation: ost of the respondents are having the pension pa(ment in $O' since man( of

the customers are government retired emplo(ees. 7ere few customers are senior citizen account

holders. One- third of the people have using the all schemes.

C7#"T D.>?

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TAB/E H&11

7OERNMENT TA= CO//ECTION IN IOB

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S/& NO 7OERNMENT

TA=

CO//ECTION

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> Sales Ta) > >

A $ncome Ta) AE AE

F Palue #dded Ta) H H

E #ll the above K? K?

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that K? of the customers are pa(ing all the

government ta)es in $O'. Onl( H of the customers are pa(ing onl( value added ta) in $O'.

Inte#etation: ost of the respondents feel that $O' is the good place to pa( all t(pe of

government ta)es. #lso this makes sure $O' is offering best class service for ta) pa(ing.

C7#"T D.>>

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TAB/E H&12

AWARNESS AND SATISFACTION /EE/ OF ARIOUS /OANS

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S/& NO /OAN SC'EME NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> 1ushpaka I I

A Li*uirent >K >K

F Subh 0ruha HA HA

E Pid(a Mothi K K

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that HA of the customers are aware of the

Subh 0ruha Loan. Onl( K of the customers are not sure on the vidh(a Mothi.

Inte#etation: ost of the respondents are #ware about the Subh 0ruha in $O'. 'ut few

customers are not so.

C7#"T D.>A

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TAB/E H&13

/OC6ER FACI/IT AAI/IN7 CUSTOMER

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S/& NO /OC6ER

FACI/IT

5REFERENCE

NUMBER OF

RES5ONDENTS

5ERCENTA7E OF

RES5ONDENTS

> 'usiness 1eople K? K?

A 0overnment Staff F? F?

F 'ank Staff >F >F

E 7ouse ife,s H H

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that K? of the customers using locker

facilit( are business class people. Onl( H of the customers are house wife,s using locker

facilit(.

Inte#etation: ost of the respondents sa( the( are utilizing the locker facilit( in $O'. The

main pla(ers are business class people. %ollowed b( government staff,s and then bank staff,s.

C7#"T D.>F

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TAB/E H&10

RE/ATIONA/ S'I5 BETWEEN BAN6ER ? CUSTOMER

S/& NO RE/ATIONS'I5 NUMBER OF 5ERCENTA7E OF

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BETWEEN BAN6

? CUSTOMER

RES5ONDENTS RES5ONDENTS

> 0ood >F >F

A oderate KI KI

F 'etter

E 1oor A? A?

Total >?? >??

Ana%-sis: %rom the above table it could be inferred that KI of the customers are have

moderate relationship with $O'. Onl( of the customers feel relationship between bank J

customer i

Documents

Consumer Satisfaction in Iob Bank