Customer- A Key Ingriedient

7/29/2019 Customer- A Key Ingriedient

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Acknowledgement

No task however small can be completed without proper encouragement.

In this I am greatly indebted to Mrs. Shaila Shrivastav for being of

immense help to us and guiding me in the right track and giving constructive

suggestions during the entire internship. Mere words will never be able to

express the gratitude towards him, who not only stimulated the idea of

undertaking the project, but also interacted with me frequently giving

valuable advice during critical stages of work.

My heartiest thanks goes to all people whom I have contacted, for their

cooperation and responsiveness. I would also like to take this opportunity for

thanking Mr. V. N. Hegde (Deputy General Manager of Corporation

Bank, Thane Branch) for his attention and guidance.

Finally I would like to be grateful to all those who directly or indirectly

have been of great help and obliged me with their support and have helped

me in converting my collection of data and information into a finely

polished project.


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Declaration

We hereby declare that under the guidance ofMs. Sahila Shrivastav

we have completed our project and the information given in this project istrue.

The information in this project is confidential and may be legally

privileged. It is intended solely for the addressee. Access to this message by

anyone else is unauthorized. If you are not the intended recipient, any

disclosure, copying, or distribution of the project, or any action or omission

taken by you in reliance on it, is prohibited and may be unlawful.

Name: Vivek Tiwari

Sign:


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Content of the Project

Chapter 1Introduction

1.1Introduction to Topic1.2What is marketing?1.3Service- Meaning, Significance, Characteristics, Classification,

Marketing mix

1.4Customer- Meaning, Importance & Effect of customer satisfaction1.5 The Importance of Marketing in the Service-Sector

Chapter 2Service Marketing in Banks

2.1 Concept of Bank Marketing2.2 7Ps with respect to Banking Sector

Chapter 3Introduction to Bank

3.1 Introduction to Corporation Bank

3.2 History of Corporation Bank

3.3 Major Services in Corporation Bank

3.4 Other Services of the bank3.5 Benefits to the Customer

3.6 General Complaints by Customers3.7 Policy for grievance redressal

3.8 Key Commitments to Customer

Chapter 4Findings, Suggestions & Conclusion

4.1 Findings and Analysis

4.2 Suggestions

4.3 Conclusion

4.4 Bibliography

Annexure A

Annexure B


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Introduction to Topic

There is only one valid definition of business purpose: to create acustomer. It is the customer who determines what a business is. What the

business thinks it produces is not of first importance - especially not to thefuture of the business and to its success. What the customer thinks he is

buying and considers 'value' is decisive - it determines what a business

is, what it produces and whether it will prosper." - As summarized by

Peter Drucker.

In the past, what happened was that a business just produced aproduct and sold it to the customer. Oftentimes, it was just a one-shot dealand a case of 'just too bad for the customer' if something went wrong.

The scenario is radically different in today's hyper-competitivebusiness environment. Customers are continuously adapting to their ever-

changing environments. They're now more educated, better informed, morevalue conscious and demand more for their dollar. Their expectations of the

companies and the people they buy from are much higher and they tend to

avoid buyer-seller negotiations. They're no longer willing to be pushedaround anymore by businesses.

Many people say that youll never get what you want unless you askfor it. This applies to many aspects in your life. If you want to get a raise at

work, you have a much better chance at getting that extra money if yousimply ask for it rather than waiting around for your manager to offer it.

Youll need to justify your request, of course, but you need to ask for theraise. From a customers perspective, you wont get an additional discount

on your purchase unless you ask for it. You wont get some extra savingsevery time, but youll never get it unless you ask for it.

The same can be said from the standpoint of a business. If you have

a client that has recently started to scale back on their purcha ses, itsunlikely that youll be able to recover those lost sales unless you ask your

customer to buy more. This much is understood and most customers will beopen to a certain level of solicitation. For example, Im more likely to donate

to a charity if they send a gentle reminder that I have donated in the past andthey would still appreciate additional donations should I feel so inclined.


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The trouble here is that of a slippery slope. With subtle and

infrequent requests, you may be able to get what you want. I might get amailing from one charity twice a year. I may not donate on both occasions,

but Im not annoyed by the mail outs. By contrast, if I were to get

bombarded with mailings on a weekly or monthly basis, I may choose totake my dollars elsewhere. This isnt just for charities; its for regularbusinesses as well.

All forms of marketing can be effective when utilized correctly. Youcan try the occasional mail out, email message, or phone call. These can

work, but overusing them will generate the reverse effect. You can drive

customers away. In this way, you have to find the very gentle balancebetween the effective customer service-oriented follow-up and the

ineffective bombardment of spam.

In order to understand Consumer behavior answer to following

questions are necessary: Where do you draw the line? How much marketingis too much? How much is not enough?


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1.1 What is marketing?

The term marketing has changed and evolved over a period of time,today marketing is based around providing continual benefits to the

customer, these benefits will be provided and a transactional exchange willtake place.

The Chartered Institute of Marketing defines marketing as The

management process responsible for identifying, anticipating and

satisfying customer requi rements profi tably.

If we look at this definition in more detail Marketing is a

management responsibility and should not be solely left to junior membersof staff. Marketing requires co-ordination, planning, implementation of

campaigns and a competent manager(s) with the appropriate skills to ensuresuccess.

Marketing objectives, goals and targets have to be monitored and

met, competitor strategies analysed, anticipated and exceeded. Througheffective use of market and marketing research an organisation should be

able to identify the needs and wants of the customer and try to deliversbenefits that will enhance or add to the customers lifestyle, while at the same

time ensuring that the satisfaction of these needs results in a healthy turnoverfor the organisation.

Philip Kotler defines marketing as satisfying needs and wants

thr ough an exchange process.

Within this exchange transaction customers will only exchange whatthey value (money) if they feel that their needs are being fully satisfied,

clearly the greater the benefit provided the higher transactional value anorganisation can charge.

Marketing can be differentiated as:

Marketing of products Marketing of services.


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Marketing includes the services of all those indulged may it be then

the wholesaler retailer, Warehouse keeper, transport etc. In this modern ageof competition marketing of a product or service plays a key role. It is

estimated that almost 50% of the price paid for a commodity goes to the

marketing of the product in US. Marketing is now said to be a term whichhas no particular definition as the definitions change every day.

Product marketing

Product marketing deals with the first of the "4P"'s of marketing,

which are Product, Pricing, Place, and Promotion. Product marketing, as

opposed to product management, deals with more outbound marketing tasks.For example, product management deals with the nuts and bolts of product

development within a firm, whereas product marketing deals with marketing

the product to prospects, customers, and others. Product marketing, as a jobfunction within a firm, also differs from other marketing jobs such as

Marcom or marketing communications, online marketing, advertising,marketing strategy, etc.

A Product Market is something that is referred to when pitching a new

product to the general public. The people you are trying to make yourproduct appeal to be your consumer market. For example: If you were

pitching a new video game console game to the public, your consumer

market would probably be the adult male Video Game market (depending on

the type of game). Thus you would carry out market research to find out howbest to release the game. Likewise, a massage chair would probably not

appeal to younger children, so you would market your product to an oldergeneration.

Role of product marketing

Product marketing in a business addresses five important strategic questions:

What products will be offered (i.e., the breadth and depth of the productline)?

Who will be the target customers (i.e., the boundaries of the marketsegments to be served)?

How will the products reach those (i.e., the distribution channel and arethere viable possibilities that create a solid business model)?


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At what price should the products be offered? How will customers be introducedto the products (i.e., advertising)?

4.2Service Marketing

Meaning of Service

A service is an activity or benefit that one party can offer to another

which is essentially intangible and does not result in the ownership of

anything. Its production may or may not tie to a physical product. "Thusservices are separately identifiable: essentially intangible activities which

provide want satisfaction and that are not necessarily tied to the sale of aproduct or service. To produce a service may not require the use of tangible

goods. However, when such use is required there is no transfer of title[permanent ownership] to those tangible goods."

According to American Marketing Association services can be

defined as Services are the activities, benefits or satisfactions which areoffered for sale orare provided in connection with the sale of goods.

Services as defined in the clause (v) of section 2 of the MRTP Act

mean service of any description which is made available to potential usersand includes the provision of facilities in connection with banking,

financing, insurance, transport, processing, supply of electrical or otherenergy boarding or lodging or both, entertainment amusement or purveying

of news or other information but does not include the rendering of anyservice free of charge or under a contract of personal service.

When a customer buys a service in the service market, he buys the

time, knowledge, skill or resources of someone else who is the provider or

supplier of the service. The buyer receives only satisfaction or benefits from

the activities of the provider who may be an individual, a firm or a companyspecializing in selling certain benefits or satisfaction.


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Significance of Service Marketing:

The services sector if marketed in a right fashion contributes

substantially to the process of development. The speed of socio- economic

transformation can be increased sizably if the innovation marketingprinciples are practiced. We cant deny the fact that in years to come the

services sector would get a conducive environment with profitable

opportunities. If we market the services in a right direction, the available

opportunities can be capitalized on optimally. It is against this

background that we make an advocacy in favour of services marketing.

1. Least possible dependence on technology:

Our dependence on sophisticated technology has increased.Developed countries are technologically advanced and so they do not

face any problem while integrating the national development program with

sophisticated technologies. The best solution is to raise our dependence on

service sector so that the demand for advanced technologies is minimized.

The developing countries are technologically backward and so their

problems are more complicated. If they import technology, the pressures on

foreign exchange reserve increase. Thus, these countries have to maximize

their dependence on such sophisticated technologies or they should developtheir own technologies.

2. Raising the standard of living:

For increasing the standard of living we should increase the rate of

capital formation, economic transformation and national income. It is also

important that the masses are aware of living style and behavior.

3. Generation and expansion of job opportunities:

Services sector also creates and expands job opportunities. In USA,

more than 85% of jobs created come from the service sector. Of late, every

dollar that consumer spends in US, about half of it goes for services. This

confirms the growing global influence of this sector.


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Generally in developing countries like India, condition where non -

optimal demographic structure has complicated the problem of

unemployment, it is pertinent that state policy makers revamp their policies

so that the tertiary sector contributes more to the national economy. It is

meant that we increase the contribution of services to GNP and motivateorganizations to participate.

4. Optimum utilization of untapped resources:

Service sector provides opportunity to make optimum utilization of

untapped resources. By marketing services, unutilized or underutilized

resources are properly utilized. The personal care services, tourism,

entertainment, hotel, etc. if not utilized are a national waste.

It is more rational that we shift our priority in the best interest of

national resources. In an overpopulated country it is our responsibility

that conservation of resources gets an overriding priority.

Characteristics of Services

Services have four important characteristics which make them so

different from physical products.

Fig1. Characteristic of services


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Intangibility

The distinguishing feature of a service is its dominant intangible

aspect. Some intangible features as listed by J.Bateson are:

A service cannot be touched. Precise standardization is not possible. There is no ownership transfer. A service cannot be patented. Production and consumption are inseparable. There is no inventories of the services, and. The consumer is a part of production-process, so the delivery system

must go to market or the customer must come to delivery system.

Pre-testing the service is not possible as they cannot be seen, tasted,

felt, heard and smelt before they are bought. When a prospective customercannot experience the product in advance they are asked to buy what are

essentially promises of satisfaction. The buyer has to have faith in theservice-provider. Client's confidence in the service can be created by taking

the help of celebrities, developing a brand name, increasing servicestangibility, emphasizing services benefits rather than just describing itsfeatures.

Inseparability

A service cannot be separated from its provider. This is in direct

contrast to a physical product, which exists whether or not its source is

present. As the provider only can render the service(s), it limits the firm'sscale of operation. To overcome this limitation the service provider can learn

to work with larger groups, to work, faster or the service organization cantrain more service providers.

Variability

In most cases human element is involved in providing service. Thus

depending upon who provides them and when and where they are provided

the quality of service is bound to vary. Standardization becomes a difficult

task to achieve. So to ensure quality, service firms should take care to select


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proper personnel and give them adequate training for the work and shouldhave a proper system to monitor customer satisfaction.

Perishability

Services cannot be stored. So services not utilized are lost forever.Perish ability of service is not a problem as long as the demand for the same

is steady. Number of service, providers (staff) can be planned in advance forexpected demand. But it becomes a problem when it faces fluctuatingdemand. So, to overcome this problem, the service concerns should have

proper product planning, pricing, and built-in flexibility in the organization.

Classification of Services

There is wide variation in the nature of services rendered which

makes it difficult to classify them in a particular manner. They can beclassified from different angles.

First, they may be people-based or equipment-based.

People-based services are rendered by either professionals viz.

doctors, Accountants, lawyers, skilled workers viz., plumber, carpenter orunskilled worker viz. Laborers, coolies etc. Equipment based services may

be classified on the basis of amount of equipment used or nature of

equipment used like automated equipment and equipments operated byskilled labour or relatively unskilled labour. Sometimes the equipment mayadd value to the services or it may exist to reduce the amount of laborneeded.

Second, the delivery of service may require the presence of client ormay not. If delivery of service required the presence of client it demands

something extra from the service provider to be alert and considerate of theclient's needs.

Third, the service can be classified on the basis ofclients purchasemotives. If the service meets a personal need it may be termed as personalservice or if it meets a business need it may be termed as a business service.

Fourth, on the basis of service providers motives (profit or non-

profit) and form (private or public) services can be categorized into four


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types by taking two Characteristics at a time, i.e. private profit seeking,private charitable and similarly public profit seeking, public charitable.

Fifth and finally, a classification can be made on the basis of the

nature of services rendered. These may be financial (Banking, Insurance),

medical, educational, personal transport, communication, storage,entertainment, consultancy etc. This may lead to creation of specialized

service-industries as we have for physical products.

The service marketing mix

The service marketing mix is also known as an extended marketingmix and is an integral part of a service blueprint design. The service

marketing mix consists of 7 Ps as compared to the 4 Ps of a product

marketing mix. Simply said, the service marketing mix assumes the serviceas a product itself. However it adds 3 more Ps which are required foroptimum service delivery.

Fig. 2 Service Marketing Mix

The product marketing mix consists of the 4 Ps which are Product,

Pricing, Promotions and Placement. These are discussed in my article on

product marketing mixthe 4 Ps.

The extended service marketing mix places 3 further Ps which

include People, Process and Physical evidence. All of these factors arenecessary for optimum service delivery. Let us discuss the same in further

detail.


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1. Product:The product in service marketing mix is intangible in nature. Like

physical products such as soap or a detergent, service products cannot bemeasured. Tourism industry or the education industry can be an excellent

example. At the same time service products are heterogeneous, perishableand cannot be owned. The service product thus has to be designed with care.

Generally service blue printing is done to define the service product. For

example a restaurant blue print will be prepared before establishing arestaurant business. This service blue print defines exactly how the product(in this case the restaurant) is going to be.

2. Place:Place in case of services determine where the service product is goingto be located. The best place to open up a petrol pump is on the highway or

in the city. A place where there is minimum traffic is a wrong location to

start a petrol pump. Similarly a software company will be better placed in abusiness hub with a lot of companies nearby rather than being placed in atown or rural area.

3. Promotion:Promotions have become a critical factor in the service marketing

mix. Services are easy to be duplicated and hence it is generally the brandwhich sets a service apart from its counterpart. You will find a lot of banks

and telecom companies promoting them rigorously. Why is that? It is

because competition in this service sector is generally high and promotionsare necessary to survive. Thus banks, IT companies, and dotcoms placethemselves above the rest by advertising or promotions.

4. Pricing:Pricing in case of services is rather more difficult than in case of

products. If you were a restaurant owner, you can price people only for thefood you are serving. But then who will pay for the nice ambience you havebuilt up for your customers? Who will pay for the band you have for music?

Thus these elements have to be taken into consideration while costing.Generally service pricing involves taking into consideration labor, material

cost and overhead costs. By adding a profit mark up you get your finalservice pricing. You can also read about pricing strategies.


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5. People:People are one of the elements of service marketing mix. People

define a service. If you have an IT company, your software engineers defineyou. If you have a restaurant, your chef and service staff defines you. If you

are into banking, employees in your branch and their behavior towardscustomers define you. In case of service marketing, people can make or

break an organization. Thus many companies nowadays are involved into

specially getting their staff trained in interpersonal skills and customerservice with a focus towards customer satisfaction. In fact many companies

have to undergo accreditation to show that their staff is better than the rest.Definitely a USP in case of services.

6. Process:Service process is the way in which a service is delivered to the end

customer. Lets take the example of two very good companiesMcDonalds

and FedEx. Both the companies thrive on their quick service and the reasonthey can do that is their confidence on their processes. On top of it, the

demand of these services is such that they have to deliver optimally without

a loss in quality. Thus the process of a service company in delivering itsproduct is of utmost importance. It is also a critical component in the service

blueprint, wherein before establishing the service, the company defines

exactly what should be the process of the service product reaching the end

customer.

7. Physical Evidence:The last element in the service marketing mix is a very important

element. As said before, services are intangible in nature. However, to create

a better customer experience tangible elements are also delivered with theservice. Take an example of a restaurant which has only chairs and tables

and good food, or a restaurant which has ambient lighting, nice music along

with good seating arrangement and this also serves good food. Which onewill you prefer? The one with the nice ambience.. Imagine a private hospital

and a government hospital. A private hospital will have plush offices andwell dressed staff. Same cannot be said for a government hospital. Thusphysical evidence acts as a differentiator.

This is the service marketing mix (7p) which is also known as theextended marketing mix.


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1.3 Customer

Meaning of Customer

A customer (also known as a client, buyer, orpurchaser) is usually

used to refer to a current or potential buyer or user of the products of an

individual or organization, called the supplier, seller, or vendor. This is

typically through purchasing or renting goods or services.

A customer may also be a viewer of the product or service that is

being sold despite deciding not to buy them.

The word derives from "custom," meaning "habit"; a customer was

someone who frequented a particular shop, who made it a habit to purchase

goods of the sort the shop sold their rather than elsewhere, and with whomthe shopkeeper had to maintain a relationship to keep his or her "custom,"meaning expected purchases in the future.

The slogans "the customer is king" or "the customer is god" or"the customer is always right" indicate the importance of customers tobusinessesalthough the last expression is sometimes used ironically.

Customer Satisfaction Program

Rosenberg, 1996, defined that customer satisfaction is the degree towhich a customer's expectations of a product or service are in line with whatthe product provides.

To address the ever-changing customer demands, the answer lies inimplementing a total customer satisfaction program. A program that shift the

paradigm from product centric to customer relationship centric. A program

that provides the competitive edge to your customers and is designed to helpyou gain, and retain customers for life.


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A total customer satisfaction program benefits you in several ways:

increase repeat purchase increase the dollar value of purchase ease your cash flow creates positive word-of-mouth promotion for your company differentiate you from your competition minimize price sensitivity improve employee morale retains your customers increase your productivity foster better employee/supplier relationship

In the final analysis, when every business, large and small, starts to

promote superior customer service, the differentiating factor will be thedelivery of your promises. You must be able to 'walk the talk that you talk',

or customers will take their business somewhere else. 'Talking the talk' is nolonger enough, in fact, it'll harm your business.

Management must first recognize that customer service is crucial to

the success of their business because it'll ensure the customers' commitmentand loyalty to the business. Your ability to focus exclusively on your

customers' needs rather than your own, and servicing those customers far

beyond what your competitors do, will ensure that your business will be far

more profitable than you ever dreamed of.

Effect of Customer Satisfaction on Profitability

Customer satisfaction does have a positive effect on an organisations

profitability. According to Hoyer and MacInnis (2001), satisfied customers

form the foundation of any successful business as customer satisfactionleads to repeat purchase, brand loyalty, and positive word of mouth.

Coldwell (2001): Growth Strategies

International (GSI) performed a statistical analysis of Customer

Satisfaction data encompassing the findings of over 20,000 customer

surveys conducted in 40 countries by Info Quest. The conclusion of the

study was:


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A Totally Satisfied Customer contributes 17 times more revenue as aSomewhat Dissatisfied Customer.

A Totally Dissatisfied Customer decreases revenue at a rate equal to 1.8times what a Totally Satisfied Customer contributes to a business.

There are numerous studies that have looked at the impact of customersatisfaction on repeat purchase, loyalty and retention. They all convey asimilar message .

Satisfied customers are most likely to share their experiences with otherpeople to the order of perhaps five or six people. Equally well, dissatisfied

customers are more likely to tell another ten people of their unfortunateexperience.

Consequences of Customer Dissatisfaction

The consequences of not satisfying customers can be severe.According to Hoyer and MacInnis (2001), dissatisfied consumers can decideto: -

Discontinue purchasing the good or service, Complain to the company or to a third party and perhaps return the item,

or

Engage in negative word-of-mouth communication.Customer satisfaction is important because, satisfaction influences

repurchase intention whereas dissatisfaction has been seen as a primary

reason for customer defection or discontinuation of purchase.

1.5 The Importance of Marketing in the Service-Sector:

Marketing was not that popular in services- industries as it was with

manufacturing firms. The reasons are obvious. Many service businesses

were small and were not using management techniques such as marketingwhich they thought would be expensive or irrelevant. There were also

service businesses like law and accounting firms which believed that it isunprofessional to resort to marketing. They relied more on their knowledge

and efficiency than marketing their services. Some service businesses like,educational institutions and hospitals had so much demand that they had noneed for marketing.


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In India services sector has grown significantly. Its growth is also

quite important for India. Diagram has shown, the employment elasticity [toGDP growth] in the services sector is higher than as in the case of bothagriculture and manufacturing sector.

Secondly, the services sector by providing complementary services toagriculture and industry, acts as a catalyst in the growth of the entire

economy. Thirdly, with its greater flexibility in location, low capital

intensity and personal nature is ideally suited for the small sector, which isthe most important sector for overall development of Indian economy.

Accordingly, the services sector has grown faster than the commodity sector.


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2.1 Concept of Bank Marketing

Marketing as it is viewed today is a way of managing a business so

that each strategy is evolved with foreknowledge of the impact of such

decision on the customer. Banks have broadly three dimensions, i.e.,deposits, borrowings and other allied services. Anyone who interacts on any

of these fronts is qualified to be a customer of a bank. Thus, a bank rendersfinancial services as an intermediary. As it renders personalized services andthe present emphasis in

Marketing is customer satisfaction it will not be inappropriate here toobserve that customer of a bank is king.

Therefore bank marketing implies that it is the creation and delivery

of financial services suitable to meet the customer's needs at a profit to thebank.

The concept of bank marketing encompasses:

Identifying the most profitable markets now and in future; Assessing the present and future needs of customers; Setting business development goals and making plans to meet them; Managing the various services and promoting them to achieve the

plan

Adapting to a changing environment in the market place.From the above discussion of the bank marketing it can be understood that

the existence of the bank has little value without the existence of the

customer. The key task of the bank is therefore not only to create and winmore and more customer but also to retain them through effective customer

service. Marketing as related to banking is to define an appropriate promiseto a customer through a range of services (products) and also to ensure

effective delivery through satisfaction. The actual satisfaction delivered to

be a customer depends upon how the customer is interacted with. It goes onto emphasis that every employee from the topmost executive to junior mostemployee of the bank is marketer.


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2.2 7Ps with respect to Banking Sector

PRODUCT:Bank Products

(A)DEPOSITS: savings, current, fixed etc.

(B)ADVANCES :

1)Fund Oriented:a. Term loan,

b. Clean loan,

c. Bill discounting,

d. Advances,

e. Pre-shipment finance,

f. Post-shipment finance,

g. Secured and unsecured lines of credit.

2)Non-Fund Oriented:a. Guarantees, and

b. Letter of credit

(C) INTERNATIONAL BANKING:

a. Letter of credit, and

b) Foreign Currency.

(D) CONSULTANCY:

a. Investment Counseling,

b. Project Counseling,


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c. Merchant Banking, and

d) Tax Consultancy.

(E)MISCELLANEOUS:

a. Traveller Cheques,

b. Credit Card,

c. Remittances,

d. Collections,

e. Sale of Draft,

g. Trusteeship.

In banking the products are services. Services cannot be seen or

protected like goods. The potential buyer of the services can for m an

opinion about the services offered. The product should suit the market needs.

Bank services are viewed in terms of the satisfaction they deliver and not

just the things that are created with value. The banks primarily deal in

services and therefore, the formulation of product mix is required to be in

the face of changing business environment conditions.

PRICEPricing in banking relates to the interest rates paid by the bankers on

deposits, interest charged by the banker on loans and demand draft, charges

for various types of transactions and fees for certain services. In India

deposit and lending rates are prescribed by RBI.

Pricing policy of a bank is considered important for raising the

number of actual customer.

In the formulation of marketing mix, the pricing decisions occupy a

place of outstanding significance. The pricing decision includes the

decisions related to interest and fee or commission charged by bank.

Keeping in view the level of satisfaction of a particular segment, the bank

has to frame the pricing strategies.


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PLACEThe place decision mainly deals with selection of a suitable

location for the branch. Sound location decisions help in activating the

business. The location should have adequate availability oftransportation, communication, electricity and other necessary facilities for

the smooth functioning of the banks.

Technological development, increased customer satisfaction,

inadequacy of the traditional challenge to serve all customer segments have

brought about ATM, telebanking, home banking, Internet banking and now

SMS Banking. Another significant development is a strategic alliance set up

by the private banks to overcome the handicap of limited branch network. In

such alliance the branch network of one branch will be used by the other forselected transaction like bill collection, cheque collection, etc.

PROMOTIONThe object of a promotion programme is to inform about the new

service product, to persuade the customer, to remind the customer, build

image of the bank, etc. Banking services can be promoted in two ways:

1. Personal Promotion: The bank marketer gets opportunity to tangiblise

the product through personal selling; persuasion is more effective with

direct contact. It helps in creating impulse buying.

2. Impersonal Promotion: i.e. Advertising, Publicity and Sales

Promotion measures. An advertisement in banking is a promotion measures.

An advertisement in banking is a promise- a promise of satisfaction to

prospectus who buys the service offered by the bank.

Banks use all types of advertisement such as newspaper, radio,

television, magazines and hoardings. Publicity is a major strength as apromotion tool than advertising as customers tend to believe a news item

rather than an advertisement.


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PEOPLEBanking products cannot be separated from the person (banker) who

markets them. The product and the seller together constitute the banking

product. Banks should adopt internal marketing in order to make the wholebusiness customer-oriented. The bank products should be marketed to the

employees first before they are marketed to customer. The corporate mission

should be communicated repeatedly and effectively to all employees by the

top management.

The placement policy should emphasize that the recruits should not

only be conversant with all aspects of banking businesses but also have the

skill for social interaction and tolerance for interpersonal contact. The

quality for banking sector is an aggregation of all the properties, whichare found essential for generating the efficiency and projecting a fair

image. Even efficiency essentially is supported by ethical dimension,

humanity and humanism.

PROCESSIt involves all activities right from the product conception stage, to

product designing and development down to its marketing at the branch

level.

All the major activities of banks follow RBI guidelines. There has to

be adherence to certain rules and principles in the banking operations.

The activities have been segregated into various departments accordingly.

a) Standardization: banks have got standardized procedures got typicaltransactions. In fact not only all the branches of a single- bank, but

all the banks have some standardization in them. This is because of

the rules they are subject to. Besides this, each of the banks has its

standard forms, documentations etc. Standardization saves a lot of

time behind individual transaction.


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b)Customization: There are specialty counters at each branch todeal with customers of a particular scheme. Besides this the customers

can select their deposit period among the available alternatives.

c)Number of stores: numbers of the steps are usually specified and aspecific pattern is followed to minimize time taken. Simplicity: in

banks various functions are segregated. Separate counters exist with

clear indication. Thus a customer wanting to deposit money goes to

deposits counter and does not mingle elsewhere. This makes

procedures not only simple but consume less time. Besides instruction

boards in national boards in national and regional language help the

customers further.

d) Customer involvement: ATM does not involve any bank employees.Besides, during usual bank transactions, there is definite customer

involvement at some or the other place because of the money matters

and signature requires.

PHYSICAL EVIDENCEThe physical evidences include signage, reports, punch lines, other

tangibles, employees dress code etc. The companys financial reports are

issued to the customers to emphasis or credibility. Even some of the banks

follow a dress code for their internal customers. This helps the customers to

feel the ease and comfort.

Signage: each and every bank has its logo by which a person can identify

the company. Thus such signages are significant for creating visualization

and corporate identity.

Tangibles: banks give pens, writing pads to the internal customers.

Even the passbooks, cheque books, etc reduce the inherent intangibility of

services.


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Punch lines: punch lines or the corporate statement depict the philosophy

and attitude of the bank. Banks have influential punch lines to attract the

customers.

Banking marketing consists of identifying the most profitable marketsnow and in future, assessing the present future needs of the customers,

setting business development goals, services marketing.


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3.1 Introduction to Corporation Bank

Every institution has its start in modest initiatives but what makes it

great is the passion of the people behind it. Carrying the legacy forward withan undaunted commitment to its vision, the journey of Corporation Banktruly epitomizes this.

Started about 105 years ago in 1906, with an initial capital of just

Rs.5000, Corporation Bank has recorded Rs. 2,00,000 Crore mark inbusiness and even far more, with over 5000 service outlets across the nation,

served by committed and dedicated 13,000 plus Corp Bankers. Proof of

which is seen in its enviable track record in financial performance. We havemany reasons to cheer, predominant of them is, being able to participate in

nation building by empowering the rural and urban population alike. Today,

we are proud that we are significant contributors to the growth of thecountry's economy.

Early Mover

Nationalised in 1980, Corporation Bank was the forerunner when it

came to evolving and adapting to the financial sector reforms. In 1997, it

became the Second Public Sector Bank in the country to enter capital

market, the IPO of which was over- subscribed by 13 times. the Bank hasmany " firsts " to its credit - Cash Management Services, Gold Banking, m-

Commerce, " Online " approvals for Educational loans, 100% CBSCompliance and more recently, its pioneering efforts to take the technology

to the rural masses in remotest villages through low-cost branchless banking

- Business Correspondent model. All of which symbolise Bank's unswerved

commitment to its customers to provide convenience banking.

At Corporation Bank, what motivates us is the passion to excel inbanking by maintaining highest standards of service to our customers,

backed by innovative products and services which make us one of the

leading Public Sector Banks in the country, catering to a wide range ofcustomers - from individuals to corporate clients.


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3.2 History of Corporation Bank

The Foundation:

Corporation Bankcame into being as Canara Banking Corporation(Udipi) Limited, on 12th March, 1906, in the temple town of Udupi, by the

pioneering efforts of a group of visionaries. The Bank started functioningwith just Rs.5000/- as its capital and at the end of the first day, the resources

stood at 38 Rupees-13 Annas-2 Pies.

The Founder President Khan Bahadur Haji Abdullah Haji KasimSaheb Bahadur, committed to fulfill the long felt banking needs of the

people and also to inculcate the habit of savings, provided the much-neededimpetus to founding a financial institution that would bring about prosperity

to the society.

The days that followed:

The initial growth was consciously cautious and need based. The firstbranch of the Bank was opened at Kundapur in 1923, followed by the

second in Mangalore in 1926. The Bank stepped into the then Coorg State in1934 by opening its seventh branch at Madikeri. In 1937 the Bank was

included in the second schedule of Reserve Bank of India Act, 1934.

Prosperity to All:

In 1939, the Banks name changed from Canara BankingCorporation (Udipi) Ltd., to Canara Banking Corporation Ltd., and

strongly put forth its vision with the motto-Sarve Janah Sukhino

Bhavantuwhich means Prosperity to All

The second change in the name of the Bank occurred in 1972, from

Canara Banking Corporation Ltd. to Corporation Bank Limited. and

finally Corporation Bank following its nationalization on 15th April, 1980.


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Shouldering National objectives:

The Bank took on the priorities of nationalization in full stride andemerged successful in fulfilling the national objectives, while sustaining its

performance oriented culture and profit augmenting record. Amidst all this,

the Bank crossed Rs.1000 crore-deposit mark in the year 1985 and launched

into the 1990s with focus on high quality growth by embracing newertechnology.

The end of first phase of banking sector reforms in India had seen theBank emerging as the most innovative and dynamic bank in the public

sector, outshining other banks in terms of asset quality, capital adequacy,

operational efficiency, well diversified income base, profitability,productivity, and strong balance sheet.

The tremendous amount of confidence and loyalty reposed by the

public in general and customers in particular, manifested itself in theoverwhelming response to the IPO of the Bank in the year 1997.

A Big Leap to the Big League:

As on 31st March, 2011:

The Total Business of the Bank crossed Rs.2,00,000 crore while theNet Profit rose to Rs.1413.27 crore.

The Total Deposit stood at Rs.1,16,748 crore and the Total Advanceswere at Rs.86,850 crore. The Net worth rose to Rs.7,135 crore.

Growing Bigger. Getting Closer.

The Bank has Representative Offices at Dubai and at Hong Kong.

Presently, the Bank has a network of 1361 fully automated CBS branches,

1250 ATMs and 2500 Branchless Banking Units across the country. TheBank has also drawn up plans to open 700 new branches in the next fiveyears.


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The Bank has extended Branchless Banking units to 2500 villages and

has issued Smart Cards to all account holders in these villages for enablingthem to operate their accounts at their doorsteps through the Business

Correspondents appointed by the Bank.

From 38 Rupees-13 Annas-2 Pies to Rs.1,55,936 crore and from a

Net worth of Rs.5,000 to Rs.7,135 Crore, the evolution of the Bank from aNidhi to graduate as a Premier Public Sector Bank and from the early daysof Swadeshism to post-Liberalisation days, weathering two world wars,

economic depressions, imbibing the latest in technology, responding tofinancial reforms and the unique record of uninterrupted posting of profits

right from its inception in 1906, has been a corporate success story.

The Logo of Corporation Bank

Sarve Janah Sukhino Bhavanthu

Prosperity for All

Fig3. Logo of Corporation Bank

The motto of Corporation Bank is Sarve Janah Sukhino

Bhavanthu in Sanskrit, which means "Prosperity for All" is well-

professed by the Bank in its day-to-day operations.


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The Bank's logo has various components, namely Kamadhenu(denoting wish-fulfillment), Kalpatharu (eternity), Balance (justice for all),Wheel (industrial progress) and Wheat Grains (agricultural prosperity)

which stand for universal prosperity and as a wish-fulfilling credo. The logoin its present form was incorporated in 1972 when the name of the Bank was

changed from Canara Banking Corporation (Udipi) Ltd. to CorporationBank Ltd.

Corporate Vision

"The Most Preferred Bank with Global Standards"

Corporate Mission

To become a provider of World - Class Financial ServicesTo meet Customer expectations through Innovation and

Technological Initiatives

To maintain leadership in inclusive bankingTo enhance stakeholders' valueTo fulfill national and social obligationsTo create an environment, intellectually satisfying and professionally

rewarding to the employees

To emerge as a role model for ethical values and Good CorporateGovernance.


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3.3 Major Services provided by Corporation bank

Personal Banking Services1. Accounts and Deposits

Banking should be effortless. With Corporation Bank, the efforts arerewarding. No matter what a customer's need and occupational status, we

have a range of solutions that are second to none. Whether you're employedin a company and need a simple Savings account or run your own business

and require a robust banking partner, Corporation Bank not only has the

perfect solution for you, but also can recommend products that can augmentyour planning for the future.

a) Savings AccountsThese accounts are primarily meant to inculcate a sense of saving for

the future, accumulating funds over a period of time. Whatever your

occupation, we are confident that you will find the perfect banking solution.Open an account in your name or register for one jointly with a family

member today.

b)Current AccountsNow, with a Corporation Bank Current Account, experience the

freedom of multi-city banking! You can have the power of multi-location

access to your account from any of our 2000 branches in 996 cities. Not onlythat, you can do most of your banking transactions from the comfort of your

office or home without stepping out.

We make it our business to help you with your business by offeringyou a Current Account with all the benefits you need to stay ahead of your

competition.

At Corporation Bank, we understand that running a business requirestime and money, also that your business needs are constantly evolving.

That's where we come in. We provide you with a choice of Current Accountoptions to exclusively suit your business.


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Open a Corporation Bank Current Account & control your business

operations centrally.

c) Fixed DepositsLong-term investments form the chunk of everybody's future plans.

An alternative to simply applying for loans, fixed deposits allow you toborrow from your own funds for a limited period, thus fulfilling your needs

as well as keeping your savings secure.

2. LoansCorp Bank offers a variety of loans to choose from. The various retail

loans are given as 'Corp Schemes' highlighting the traditional Corp Bank

commitment on giving the best in terms of service, speedy disposal and of

course at very competitive interest rates.

Corp Bank offers Housing Loans, Education Loans, Consumer Loans

for purchase of consumer durables like TV, washing machines, music

systems and other electronic goods, loans against future rent receivables on

leased out building/premises, loans to purchase two-wheelers & four-

wheelers, loans against shares, loans for purchase of medical and other such

sophisticated equipments, loan to acquire office premises/building &

furniture, personal loans, loans to women to buy pure gold/jewellery, loan

against mortgage of property etc.

Interest calculation on credit facilities will be done on the basis of 365

days only, irrespective of whether the year is leap year or not.

3. InsuranceCorporation Bank has been consistently in the forefront to provide

new innovations and value additions to its customers. The Bank nowprovides through its branches total life and non-life insurance solutions to

meet all your insurance requirements through the products of India's leading

insurers.

The Bank is the corporate agent for LIC of India and New India

Assurance Company Ltd.


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So, the entire life insurance product ranges of the worlds largest life

insurance company LIC of India are now available through the branches of

Corporation Bank.

For all your non-life insurance needs, you need to look no further thanCorporation Bank as the products of the leading Indian transnational general

insurance Company New India Assurance Co. Ltd. are now available

through the branches of the Bank. Whether you are looking to insure your

new car or the you purchased or looking to take a mediclaim cover or on the

look out for insuring your stock, all of these can be done through the

branches of Corporation Bank.

Corporate Banking ServicesCorporate Banking reflects Corporation Bank's strengths in providing

our corporate clients in India, a wide array of commercial, transactional and

electronic banking products. We achieve this through innovative product

development and a well-integrated approach to relationship management.

We offer blue chip companies in India, a full range of client-focused

corporate banking services, including working capital finance, trade and

transactional services, foreign exchange and cash management, to name a

few. The product offerings are suitably structured taking into account aclient's risk profile and specific needs. Based on our superior product

delivery, industry benchmark service levels and strong customer orientation,

we have made significant inroads into the formal banking consortia of a

number of Indian companies including multinationals, domestic business

houses and prime public sector companies.

Customers looking for corporate and international business support

can look for its personalized services like Gold Card Scheme for Exporters.

The bank has introduced an effective range of products and services to meetthe needs of the customers who run Micro and Small Enterprises (MSE).

Forex, Cash Management, Project Finance, Corp Vyapar, Corp Rental and

Working Capital are just to name a few of them.


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Online bankingOnline banking from Corporation Bank India is quick and hassle free

banking. Net banking is a secured and convenient platform that can be used

by the customers. This form of modern banking saves time and provides

banking at one's finger tips. Corporation Bank India initiated their netbanking services from 1st January, 2001.

Corporation Bank India Internet Banking services are available forboth personal banking and corporate banking. It is a much secured process

for accessing the accounts at any time of the day. Corporation Bank IndiaOnline Banking is anytime and anywhere, remote banking at its best.

Corporation Bank India Net Banking is an electronic medium that

provides an easy solution for cost effective banking. It is user friendly

banking at the click of a mouse. It transfers data through an online userinterface channel. The services that are offered by Corporation Bank India

Net Banking include the following:

Funds Transfer Creation and Cancellation of Payment Instructions Collection and Payments Services (CAPS) Online Railway Tickets Booking Direct and Indirect Tax Payment

Customs Duty Payment Central Excise Payments LIC Premium Payment BSNL Bill Payments

Corporation Bank India Internet Banking transactions are all made

secure by using 128 bit SSL Server. The bank has also acquired digital

certification for online security. For safe and convenient banking, use the

online banking facilities of Corporation Bank India.

Credit Card & Debit Card ServicesCorporation Bank offers Corp Convenience International Debit Card,

Credit Card and Corp Travel Card.


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3.4 Other Services in Corporation bank

Payment of LIC renewal Premium. Payment of Income Tax through CorpBank ATMs Payment of BSNL Telephone Bills in Goa RTGS/NEFT Customer Facilitation Center - Contact Details ASBA Facility for IPOs & Rights Issues LIC Premium Payment through SMS Corp Bill Pay Corp Bullet - RTGS facility Visa Credit Card Bill Payment Corp Companion - Any Branch Banking Corp PowerCheq - Multi City Cheque facility Corp Mediclaim Corp Mobile Recharge MobilePay Inter Bank Mobile Payment Service & SMS Banking Facility Online Railway Reservation Depository Services Online Trading through Corporation Bank Insurance New Corp Jeevan Griha Raksha NEW Corp Jeevan Raksha Mutual Funds Pension Payments PPF Accounts and Senior Citizen Savings Scheme Sale of Stamp Papers in Karnataka Collection of Central Excise and Service Tax

Collection of Customs through E-payment Collection of Direct Tax & Sales Tax Collection of Telephone Bills ECS handling at Sunday Working Branches Issuing Govt. of India Bonds


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Service Charge in Corporation Bank

Charges to be levied for using other Bank ATMs in India SB & CLSB:

Upto five transactions per Calendar Month:Cash Withdrawal - Free

Non Cash Transaction - Free

Beyond five transactions per Calendar Month:Cash Withdrawal - Rs.20/-Non Cash Transaction - Rs.10/-

For all other accounts CA/CC etc. (Other than Savings Accounts):

From the First transaction onwards:Cash Withdrawal - Rs.20/-

Non Cash Transaction - Rs.10/-


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3.6 Benefits to the Customer

Benefits from Personal Banking

Personal banking has emerged as an integral part of banking

institutions. It is a specialized form of funds management and cash

management that allows individual investors to get advice for their unique

circumstances. It makes it possible for a far more particular connection with

ones bank than with a normal financial institution and makes it possible to

enjoy the selections that are specific to ones desires and wishes.

1. Personal touch banking is the best choice for solidifying ones future andgetting good returns on ones investments.

2. Personal banks present the best savings choices, prosperity managementoptions, inheritance management, and tax organizing options to let theircustomers turn the cash that they previously have into profits swiftly and

effectively.

3. Help individuals and business carry their banking transactions easily andquickly.

4. Offer several tools and resources that make bill payments, transfers, andpayments to ones creditors, payroll management, and otherpersonal and

business operations smooth and hassle-free

Benefits from Corporate Banking

If your organisation is multi-locational, managing outstation funds

collections and payments can often be time consuming and expensive.

Delays of days or even weeks in realising outstation cheques, constant

tracking and follow-up to transfer funds from outstation collection accounts,

uncertainty and delays regarding information on the fate of cheques etc. are

common.

1. Lower Interest Costs2. Improve Liquidity3. Better Accounting and Reconciliations4. Achieve Overall Operational Convenience5. Interconnectivity


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Benefits from Internet Banking

Internet banking does offer many benefits for both banks and their

customers. So the banks are doing what they can to encourage customers to

try it.

1. An internet banking account is simple to open and use.2. Internet banking costs less.3. Comparing internet banks to get the best deal is easy.4. Bouncing a check (accidentally) should be a thing of the past because

you can monitor your account online any time, day or night.

5. You can keep your account balanced using your computer and yourmonthly statement.

6. With the ability to view your account at anytime, it is easier to catchfraudulent activity in your account before much damage is done.

7. Internet banking offers a great deal more convenience than you couldget from a conventional bank.

3.7 General Complaints by Customers

Failure /Delay in repaying deposits

Withholding of the amount due on a fixed deposit after its maturity, Delayed payment of term deposits on maturity. Inordinate delay in payment of proceeds of premature encashment of

deposits as well.

Payment and Collection of Cheques/Drafts

Wrongful dishonour of cheques due to the negligence or mistake on

the part of the bank.

Dishonour of DDs due to the lapse or omission on the part of the

officials of the bank like non-affixation of signatures, failure to mentioncode number etc. is amounting to deficiency in service.


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Loans and Advances

Refusal to grant loansEven though the bank has the right to refuse or grant loan, causing

undue delay in releasing the installments of the sanctioned loan might be

held to amount to deficiency in service.

InterestCharging interest at a rate higher than the rate stipulated in the loan

agreement would amount to deficiency in service.

Security for loansBanks are liable for deficiency in service in cases were they fail to

return the security documents even after repayment of the whole loan.

Bank GuaranteeThe failure of a bank to honour bank guarantee is a deficiency in

service.

LockerA bank is liable for loss of articles kept in the locker with the bank.

Security in banks premisesThe safety of the money to be deposited and/or withdrawn inside the

bank premises is implicitly a part of the service rendered by a bank to acustomer.


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Internet Banking

People find problems in managing cash money. Depositing a paper

check that someone gives you might not be as fast as it would be for a

traditional bank.

You cant take it with you when you go, so why not use some of thatmoney? Online bank accounts make it hard to spend your money.

Other Banking Services

Closing of accountClosing of account without the instructions of the account holder

would amount to deficiency in service.

Refusal of Cheque bookThe refusal to provide cheque book facility to a customer on the

ground of not maintaining the minimum balance in his account may notamount to deficiency in service.

Vicarious LiabilityA bank is bound by the act of negligence of its staff during the course

of employment. Thus where the bank cashier fails to account for the

money deposited with him at the counter, the bank would be liable.

Rude behaviourA bank may be held liable for deficiency in service owing to rude

behavior of its officials and be ordered to pay compensation for the

mental agony and discomfort caused.

Notice before auctionA notice to pay or face auction without making any earlier demand for

repayment of loan and without giving date of auction was held to

constitute deficiency in service.


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Non-return of dishonoured chequeThe failure to return a dishonoured cheque is deficiency in service

where the complainant is unable to take action against the drawer.

3.8 Policy for grievance redressal

In the present scenario of competitive banking, excellence in customer

service is the most important tool for sustained business growth. Customer

complaints are part of the business life of any corporate entity. This is more

so for banks because banks are service organizations. As a serviceorganization, customer service and customer satisfaction should be the prime

concern of any bank. The bank believes that providing prompt and efficientservice is essential not only to attract new customers, but also to retain

existing ones. This policy document aims at minimizing instances ofcustomer complaints and grievances through proper service delivery and

review mechanism and to ensure prompt redressal of customer complaintsand grievances. The review mechanism should help in identifying

shortcomings in product features and service delivery. The banks policy ongrievance redressal follows the under noted principles.

Customers are treated fairly at all times. Complaints raised by customers are dealt with courtesy and on time. Customers are fully informed of avenues to escalate their complaints

/grievances within the organization and their rights to alternativeremedy, if they are not fully satisfied with the response of the bank to

their complaints.

Bank will treat all complaints efficiently and fairly as they candamage the banks reputation and business if handled otherwise.

Bank has evolved this policy to ensure that grievance redressalmechanism is meaningful and effective.

The policy document would be made available at all branches and toemployees. The concerned employees will be made aware about the

Complaint handling process.


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1. The customer complaint arises due to:

The attitudinal aspects in dealing with customers.

Inadequacy of the functions /arrangements made available to thecustomers or gaps in standards of services expected and actual

services rendered.

The customer is having full right to register his complaint if he is notsatisfied with the services provided by the bank. He can give his complaint

in writing, orally or over telephone. If customers complaint is not resolved

within given time or if he is not satisfied with the solution provided by the

bank, he can approach Banking Ombudsman with his complaint or other

legal avenues available for grievance redressal.

2. Internal Machinery to handle Customer complaints/ grievances

Customer Service Committee of the Board Standing Committee on Customer Service Nodal Officer and other designated Officials to handle complaints and

grievances

3. Mandatory display requirements

The Bank shall provide:

Appropriate arrangement for receiving complaints and suggestions. Code of banks commitments to customers/Fair Practice code. The name, address and contact number of Nodal Officer(s) Contact details of Banking Ombudsman of the area Code of banks commitments to customers/Fair Practice code.


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4. Resolution of Grievances:

Branch Manager is responsible for the resolution of

complaints/grievances in respect of customers service by the branch. He

would be responsible for ensuring closure of all complaints received at thebranches. It is his foremost duty to see that the complaint should be resolved

completely to the customers satisfaction and if the customer is not satisfied,then he should be provided with alternate avenues to escalate the issue. If the

branch manager feels that it is not possible at his level to solve the problemhe can refer the case to Zonal Office for guidance. Similarly, if Zonal office

finds that they are not able to solve the problem such cases may be referred

to the Nodal Officer at H.O.

Time frame for resolution of grievances:

The Bank has set the following time frame for resolution of grievances:

Branches: Within 7 working days. Zonal Offices: Within 15 working days. Head Office: Within 30 working days.

However, the above time limit is not applicable for complaints which

involve detailed investigation, liaison with various agencies such as CBI,Enforcement Directorate, and Police Dept. etc.

5. Interaction with customers

The bank recognizes that customers expectation/

requirement/grievances can be better appreciated through personalinteraction with customers by banks staff. Structured customer meets, say

once in a quarter will give a message to the customers that the bank cares forthem and values their feed back/suggestions for improvement in customer

service. Many of the complaints arise on account of lack of awareness

among customers about bank services and such interactions will help the

customers appreciate banking services better. As for the bank the feed backfrom customers would be valuable input for revising its product and services

to meet customer requirements.


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6. Sensitizing operating staff on handling complaints

Staff should be properly trained for handling complaints. Bank is

dealing with people and hence difference of opinion and areas of friction canarise. With an open mind and a smile on the face, the Bank staff should be

able to win the customers confidence. It would be the responsibility of theNodal Officer to ensure that internal machinery for handlingcomplaints/grievances operates smoothly and efficiently at all levels. He

should give feed back on training needs of staff at various levels to the HRD& Training Division.

Fig 4. Complaint Form of Corporation Bank


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Corporation Banks Time Norms for Redressal of Grievances

1. For preferring complaints: 30 days.

2. Grievances will be responded within 30 days from the date of receipt of

complaint.

3. If the complainant does not get satisfactory response from the Bank within

60 days of lodging the complaint, customer has the option to approach

Concerned Banking Ombudsman for redressal of his grievances.

3.9 Key Commitments to Customer

Our key commitments to you - We promise to:

Act fairly and reasonably in all our dealings with you by:

-meeting the commitments and standards in this Code, for the products andservices we offer, and in the procedures and practices our staff follow

-making sure our products and services meet relevant laws and regulations-our dealings with you will rest on ethical principles of integrity and

transparency.

Help you to understand how our financial products and services work

by:

-giving you information about them in plain Hindi and/or English and/or the

local language-explaining their financial implications and

-helping you chooses the one that meets your needs.

Deal quickly and sympathetically with things that go wrong by:

-correcting mistakes quickly-handling your complaints quickly

-telling you how to take your complaint forward if you are still not satisfiedand

-reversing any bank charges that we apply due to our mistake.


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4.1Analysis and Findings

How much are you satisfied with the services of the bank?

Very satisfied 15

Satisfied 60

Somewhat satisfied 20

Not satisfied at all 5

Fig5. Showing Customer Satisfaction

Majority if the customers associated with the bank are satisfied withthe service provided by the bank. This shows that the bank has performed

well in case of service delivery and service quality. One of the reasons why

majority of customers are satisfied is because, the customers generally fail to

create a certain standard of service in their mind. As a result it is observedthat no matter the quality of service the customers are satisfied as they dont

have benchmark to which they can compare the service of the bank.

0

10

20

30

40

50

60

Very

Satisfied

Satisfied Somewhat Not at all

Satisfaction in Percentage

Satisfaction in

Percentage


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Do you use latest electronic banking service provided to you by Banks?

Services Yes No

ATM banking 80 20

Mobile banking 25 75

Internet banking 40 60

Fig6. Use of latest electronic banking service

With the changing trend in banking sector, Customers have now

started using modern methods of banking (Electronic Banking). This shows

that the people are now more aware regarding the latest techniques of

marketing, but still there is a hesitation among the customers regarding

services like Mobile Banking and Internet Banking one of the major reasons

that is thought to be keeping customers away from these modern methods is

the lack of security and fear among people regarding Cyber crime. It is also

0

10

2030

40

50

60

70

80

90

100

ATM Mobile Internet

No

Yes


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believed that with changing time the customers are likely to use this method

so as to save time and money.

Do you make a complaint when you have any grievances regarding service

delivery?

Yes 18%

No 72%

Fig7. Percentage of Customers who make a complaint when they have any grievances

It is observed that most of the Customers neglect/ fail/avoid to make a

complaint when the face any fault or grievance in service quality or service

delivery. The Customers who generally complain have major issues or

belong to the upper class of the society or who have knowledge regarding

these process. The major reasons why customers avoid making complaints

are because of the lengthy process, lack of knowledge etc. Proper knowledge

and quick action may encourage customers to make complaints regarding

their grievances in the near future.

Percentage Of Customers who

Complain

Yes

No


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4.2 Suggestions

Suggestions to banksBanks should review their existing basic bank accounts against the

following principles:

no use of credit scoring accounts should be opened on the spot, provided the customer has

acceptable forms of identification

banks should not exercise their right of set-off from basic bankaccounts.

accounts should be accessible at post office counters, ATMs and bankbranch counters

the clearance time for cheque payments into accounts should be thesame as for the bank's current accounts.

display information about basic bank accounts in bank branches tell customers who have been turned down for an account the reasons

for the refusal, and what they need t do to remedy the situation

open a basic bank account where acceptable ID is provided, and to setit up, within a maximum of 10 working days

follow guidance on how basic accounts should be upgraded, and thesafeguards that should be put in place.

In addition, we also suggest that:

A single list of acceptable documents to prove ID and address shouldbe produced, drawing on existing best practice. The list should becommunicated clearly to all bank branch staff.

Some of the improvements required should apply to all bank accounts.These include:

all bank accounts should be accessible at post office counters, ATMs and bank branch counters


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banks should make publicly available information about thedocuments

that will be accepted as proof of identity to open an account where a bank refuses to open a bank account for a customer it should refusal and outlining exactly the steps needed to remedy the problem. Suggestions to employees

Four rules crucial to delivering winning customer service:

Rule #1: Listen! When customers complain there is a reason. Moreimportantly, it is an opportunity to learn something, so hear them out

without interrupting or arguing.

Rule #2:Dont take it personally. Customer complaints are about productsor service that did not live up to their expectations or the marketing hype.

Taking it personally, getting defensive, or getting angry only makes thesituation worse.

Rule #3:Offer a sincere apology for the inconvenience. Put yourself in

your customer's shoes. Remember what it feels like when something youhave purchased did not do the job it was supposed to, or caused an evenbigger problem than the one it was supposed to solve.

Rule #4: Never say, Its not my job or my department or myresponsibility. If you work at the company that made the product or sold

the service - it is your job! Make a personal commitment to do whatever ittakes to fix the problem even if it is not in your job description.

The organizations (including banks) which properly follow these rulescan definitely retain their consumers and keep their customers delighted.


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4.3 Conclusion

The marketing concept advocates the identification of specific

customer needs and then responds to those needs by focusing on available

resources to uniquely satisfy the customer requirement. The fundamental

idea is that the greatest success will result when all work- related activities

contribute to meeting customer expectations.

The marketing concept builds on two fundamental ideas:

1. Customer Needs are more basic than products or services.

2. Products and services become meaningful only secondary to profit.

The belief that customer requirement are more basic than product or

services place a priority on fully understanding what drives market

opportunities. The key is to develop the combination of product and service

that will satisfy customer.

Documents

Customer- A Key Ingriedient