Professional Documents
Culture Documents
INTRODUCTION
1.1) INTRODUCTION
State bank of India is an Indian multinational public sector banking and financial service
company. It is a Govt. owned corporation with headquarters in Mumbai, Maharashtra. As
of 2014-15 it had the asset of 20.480 trillion and more than 14000 branches including 191
foreign offices spread across 36 countries.SBI is formed by renaming the Imperial Bank in
the 1955.SBI has 54 branches in Palakkad District.
The main business of a company is to satisfy the customer needs and wants. Customer is
one who purchase a product or services either for his own consumption or for others. Without
them a company can neither survive nor thrive. In their absence an organisation does not have a
business or purpose. Today business organisations are more customer focused than ever before
since customer satisfaction is a competitive advantage which is sustainable over the long term
.Business organisation should always focus on listening to customer expectation, requirements
complaints and needs to create healthy customer satisfaction relationship. When the
expectations of customer is matched, the resultant feeling is satisfaction and when expectation
doesn’t match then the resultant feeling is dissatisfaction.
Customer satisfaction in the banking industry plays a vital role to create a healthy
business status. In any service based industry customer service is at highest priority. In
banking industry customers are more directly linked with the banks, personnel for any kind
of services or products. Therefore the bank should always focus on training the front desk
staff to provide quality service by knowing their expectations and wants.
Like all other banks, SBI also provides quality service to their customer to make them
satisfied. Customer satisfaction is the key to not only the organisational success but also for
existence. So it becomes essential to analyse the customer satisfaction of the organisations.
That is why the research topic “customer satisfaction on selected banking products of SBI
Namakkal branch is selected for study.
1.2) SCOPE AND IMPORTANCE
The research conducted to know the customer satisfaction of SBI Namakkal branch.
Customer satisfaction plays a vital role for the success and survival of the organisation. In
the words of Mahatma Gandhi “A customer is the most important visitor on our premises,
he is not depended on us. We are depended on him. He is not an interruption to our
business; He is the part of it. He is not an outsider of business. He is the part of it .We are
not doing him a favour by serving him. He is doing us a favour by giving us an opportunity
to do so”. Customer plays a vital role for the development of the organisation .So it
becomes important to analyse whether customers are satisfied or not. In the present
scenario, thestudyon the customer’s satisfaction of the organisation is most relevant.
In the current competitive world, Banks have to struggle their might to offer the best of the
customer satisfaction through various innovative strategies in order to survive in industry.
This study would stand as a sincere attempt to evaluate customer satisfaction of SBI
Namakkal branch
1.4) OBJECTIVES OF THE STUDY
1. To examine the various problems and difficulties faced by the customers while availing
the various products or services of SBI
2. To analyse the customer satisfaction towards the selected baking products and services
of SBI.
3. To examine the expectations and the level of satisfaction of the customers towards
the service rendered by SBI.
The data for the study was collected from both primary and secondary sources. The
primary data was collected from the selected customers of SBI Namakkal branch. The data
is collected by using well-structured questionnaire for the purpose of study. The secondary
data was gathered from the Magazines, Journals and also from the websites of SBIand
shodhganga inflipnet.
1.6) PERIOD OF STUDY
This study took 21 days for the completion from the date of 1st march 2017 to 21 march 2017.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 4
1.7.4) MANOVA
1. The branch has covered shorter period of its service since its inception, as such
customers’ perception on products and services may also get affected by the variable.
2. The reliability of the study is restricted to the quality of data provided by the Respondents
3. Customers’ preferences and opinions are supposed to change from time to time
4. The statistical tools used for analysis is based on assumptions. The analysis results are also
bound to be affected by assumptions/restrictions.
1.9) CHAPTERISATION
The scheme of the thesis is presented in the following chapters
CHAPTER 1: INTRODUCTION
This chapter incorporatesintroduction, scope and significant of the study, statement of the
problem, objectives and research methodology of the study.
CHAPTER 2: REVIEW OF LITTERATURE
This chapter covers survey of some studies relating to analysis of Indian banking sector
conducted in the past.
CHAPTER 3: THEORETICAL FRAMEWORK
The theoretical frame work includes the theory about the Indian banking system, types of
banks and the gap model of service quality etc…
CHAPTER 4: PROFILE OF SBI
This chapter gives an idea about history of SBI, subsidiaries of SBI,types of bank
accounts,structure and organisation etc...
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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CHAPTER 5: CUSTOMER SATISFACTION
This chapter includes the concept of customer satisfaction, customer satisfaction towards
banking and loyalty of customer
CHAPTER 6: ANALYSIS AND INTERPRETATIONS
The chapter presents analysis of customer satisfaction on banking products and services of
SBI by using various tools like one-way ANOVA, T-test, Kruskal Wallis test and
MANOVA. CHAPTER 7: FINDINGS, SUGGESIONS AND CONCLUSION
This chapter includes the findings of the research and the suggestion for improving
customer service of the bank.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 6
CHAPTER 2
REVIEW OF LITERATURE
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 7
REVIEW OF LITERATURE
Hartfeil (1996) in his article, “Determination of customer benefits and share of wallet in
banking”, says that the primary challenge of small banks is initial cost systems, while for
large banks, the real challenge is to make a large number of existing diffuse systems
compatible ones and to make all available new information usable. Information on
profitability of customers is regarded as one of the most important types of customer
satisfaction.
Hallowell Roger (1996) carried out a study on customer satisfaction in banks and
suggested that banks should target service to only those who need it most. By adopting this
strategy customers will be retained for longer periods since the bank can satisfy customers
better than competitors.
Gopal, K.S. (1997) in his article, stated that quality of services rendered by a bank could
often be the single most important factor which can make customer shift loyalties and
business to other banks.
Hayes B (1998) by clearly defining the key concepts and elements of satisfaction provides a
template by which information can be gathered about what works and what does not work. This
include both the hard measures which are more tangible and observable (i.e., number of
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 8
complaints, average wait time) and the soft measures which are tangible aspects (i.e.,
friendliness, helpfulness, politeness).
Rao, N.V. (2001) in his article, explained that customer service was becoming an important
aspect in gaining competitive edge for survival with growth and profits for banks. The key
to success in the changed environment would be the bank’s ability to reach the client at his
door step.
Rao, N.V. (2001) in his article, explained that customer service was becoming an important
aspect in gaining competitive edge for survival with growth and profits for banks. The key
to success in the changed environment would be the bank’s ability to reach the client at his
door step.
JyotiSaluja and Dr.RajinderKaur conducted (2004)a study on “Profitability Performance of
Public Sector Banks in India” .With the objective to identify the factors responsible for good or poor
profitability performance of the public sector banks in India.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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variations in performance of profitability among different sectors and segments of banking
industry in India.
Edwin M. &Fathima S. (2011) conducted a study on the impact of service quality and
customer satisfaction in commercial banks. This study shows that there is close link
between the customers’ perception on the service quality factor and customer satisfaction. It
further showed that the impact of the service quality factor on customer satisfaction is
unique. It brought the suggestion that bank managers have to formulate appropriate
marketing strategies to satisfy their customers.
Naveen Kumar and V.K. Gangal (2011) examined customer satisfaction in new generation
banks showing customers’ expectations increasing rapidly in the banking industry of India.
New customers looked the best services at a reasonable price. The result revealed that, the
majority of Indian banks were not very diversified in terms of the product and services they
offer. Further, it suggests that, in the competitive banking industry, banks have to implement
strategic focus customer satisfying aspects for retaining as many customers as possible.
Mahalakshmi and Sarvanaraj (2011) studied the customers’ satisfaction towards the
banking services in Trichy. This study showed the key factors influencing customer’s
selection of a bank are range of service, rates, fees and prices charged. It further showed
that not only superior service is sufficient to satisfy customers but also excellent front office
services, value added services, deposit oriented services and providing innovative products
will satisfy the clients’ need
Mahadevan, S. and Dr. Balasubramanian (2012) in their article, explained that interest
in the need and measurement of quality was understandably high and most important. The
important relationship between service quality customer satisfaction and purchasing
behaviour remain largely unexplored.
Naveen Kumar and V.K. Gangal (2012) examined customer satisfaction in new generation
banks showing customers’ expectations increasing rapidly in the banking industry of India.
New customers looked the best services at a reasonable price. The result revealed that, the
majority of Indian banks were not very diversified in terms of the product and services they
offer. Further, it suggests that, in the competitive banking industry, banks have to implement
strategic focus customer satisfying aspects for retaining as many customers as possible.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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CONCLUSION
This review makes it clear that many studies have been undertaken on the Banking
sector in India in multiple dimensions emphasising service marketing mix, implications of
liberalisation, evaluation of customer satisfaction on products and services, appraisal of
functioning and performance of the banks, formulation and implementation of strategies,
customer preferences in banking products and services, and factors influencing selection of
SBI products, etc. There is only few study conducted on the topic about how much the
customers are satisfied with the products and services provided by the bank, and the factors
responsible for both satisfaction and dissatisfaction etc. here I’m going to study the topic on
customer satisfaction on selected banking products and services of SBI Namakkal branch.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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CHAPTER 3
THEORETICAL FRAMEWORK
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 12
3.1) INDIAN BANKING SYSTEM
The Indian Banking System is regulated by the central bank, viz., Reserve Bank of India
(RBI).Under the control of RBI, there are scheduled and non-scheduled banks. Scheduled
banks consist: of commercial and cooperative banks. Schedule commercial banks consist of
public, private, foreign and regional rural banks. Public sector banks consist of SBI and its
associates, nationalized banks and other public sector banks. Private sector banks consist of
old generation and new generation banks .Scheduled cooperative banks consist of urban
and state cooperative banks.
Source: www.academia.edu
3.1.1) Reserve Bank of India
Reserve Bank of India is the central bank of India. It was established in1934 and started its
operation with effect from April 1ST, 1935. It is responsible for guiding and regulating the
banking system of a country. It does not deal with the general public. It acts as banker to
government, issues currency, regulates money circulation in the country, keeps the deposits
of commercial banks, and provides financial accommodation to commercial banks. It
guides the commercial banks and hence, is called as bankers’ bank. It maintains the
government records relating to revenue and expenditure under various heads. It advises the
government on monetary and credit policies and decides on the interest rates applicable to
bank deposits and loans and advances.
3.1.2) Scheduled Banks
Scheduled banks are those banks which are included in the second schedule of Reserve
Bank of India Act 1934.For this inclusion, the banks have to comply with the criteria laid
down vide section 42(6)of the RBI Act. Scheduled banks can be classified into scheduled
commercial banks and scheduled commercial banks. The criteria for scheduled banks
include the following:
i) has a paid-up capital and reserves of an aggregate value of not less Than five lakhs of
rupees;
ii) Satisfies the RBI that its affairs are not being conducted in a manner Detrimental to the
interest of its depositors, and
iii) is a State co-operative bank or a company as defined in section 3 of the companies
Act,19956(1 of 1956),or an institution notified by the central Government in this behalf or a
corporation or a company incorporated by or under any law in force in any place outside
India.
Scheduled banks can be divided into scheduled commercial banks and scheduled
cooperative banks.
3.1.3) Scheduled Commercial Banks
Scheduled commercial Banks are those banks which accept deposits and lend short-term
loans advances to their customers. The scheduled commercial banks are classified into the
three types, Viz, public sector banks, private sector banks, foreign banks and regional rural
banks.
3.1.3.1) Public Sector Banks are those banks in which the majority of the shareholding is
held by the Government of India and they are major constituent of Indian Banking System.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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At present as on 31-01-2013, there are 27 public sector banks functioning in India .They are
categorized into SBI and its 6 associates of SBI, 19 nationalized banks and IDBI Bank Ltd.
3.1.3.2) Private Sector Banks are those banks in which the majority of the shareholding
is held by private individuals and corporate.
3,1,3,3) Foreign Banks are those banks which have their registered and incorporated head
office in a foreign country but have their branch offices operating in India .RBI permits the
foreign banks to operate either through their branches or wholly owned subsidiaries.
Corporate segment has been the main business line of most of the foreign banks operating
in India. In the recent years, some of the foreign banks have started providing consumer
financing such as home loans, automobile finance, credit cards, household consumer
finance. 3.1.4) Regional Rural Banks are the banking organizations being operated
indifferent states of India. They have been created to serve the rural areas with banking and
financial services. However, RRB's may have branches set up for urban operations and
there area of operation may include urban areas too.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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Gap Model of Service Quality
Source: www.academia.edu
This is the gap between customer expectations and the perception of those expectations by
management. The gap results due to lack of understanding of customer’s needs and wants. The
situation is likely to happen due to the result of inadequate customer satisfaction research.
Bureaucracy in different management level is equally re-possible to create this gap since it lacks
the communication and effective management policy among staffs. The management should be
always keen on finding what custom-ers expect from them conducting
several researches. A well-managed company always tries to seek best ways to get
interacted with the customers' expectation. To close gap 1, the company needs to set up
plans to deal with the customers' expectations and work on finding the reliable ways to
fulfil those expectations. Moreover creating a strong relationship with customers can be an
idle solution to cover up this gap.
Gap 2 “Lack of quality service and standards”
Along with the understanding of customer's need and wants it is also important to know
what kind of products and service to design to meet up the customer expectation. Provider
gap 2 is the result of the company having service and products that is not designed
according to customers' wants. Absence of customer, inadequate service scope and
inappropriate physical evidences also create this gap. Physical evidences are the physical
tools such as business cards 3whereas service scopes means the physical settings that the
service is delivered in for example the location of business premises.
To close the provider gap 2, Zeithaml suggests that company should introduce important
Customer satisfaction barometers into the measurement system so that the perceived
desired quality can be designed. “Companies need measurement systems that incorporate
and align measures of customer perceptions and satisfaction with pivotal operational and
performance indicators.”
This is the gap between service quality specifications and delivery of the service. It is very
important that the right service is to be rendered in the right time. The key drivers of
customer service; systems, processes, and people are needed to ensure that the service
delivered should match the set standards. Deficiencies of human resource policies and
failure to match supply and demand are the key driver to create this gap. For ex-ample, a
management in a company may establish a standard such that the telephone calls should be
answered in 30 seconds. However, if it takes more than the standard time to answer the
calls then it is said to be delivery gap.
To close gap 3 the company should always focus on employee training and establish plans to
gear up the workers' motivation since motivation and right training plays vital role in creating
prompt and punctual service. Team work, great co-operation among staffs, effective
recruitment, etc. are the major elements that company should take care of to avoid this gap.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 17
Gap 4 “Unable to perform as promised”
It is the gap between what was promised or communicated to customers and what actually
is delivered. Basically it is communication gap that many companies are facing while
rendering service. The company makes advertisement of its products and services through
different media, customers start expecting the quality of service or product on how they
have been promised. If the service is not delivered as promised, customers perceived low
service quality. Thus, company should always focus on creating systematic and accurate
communication unit so reach to customer to provide standard service in right way.
To close gap 4, company should always focus on inter communicational aspects among its
staffs. The internal service department should always be in touch with the external and
advertising department to know the promised schemes and offers. Customers should be
educated properly to use the service provided to get maximum utilization. Closing all the
provider gap 1 to 4 means to improve the service quality. It is very essential issue regarding
customer satisfaction. If a company wants to create quality service in all aspects to meet up
customers' expectations it should always focus on closing these gaps. Several researches
should be carried out to find out the core expectations of customers. Service quality can be
standardize knowing what wants and desires of customers. Communication unit should be
active enough to know customers’ expectations and to deal with the internal management
unit to provide promised service in right time and in right way.
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CHAPTER 4
PROFILE OF SBI
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4.1) HISTORY OF SBI
The evolution of State Bank of India can be traced back to the first decade of the 19th
century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June
1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January 1809.
It was the first ever joint-stock bank of the British India, established under the sponsorship
of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April
1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal.
These three banks dominated the modern banking scenario in India, until when
theywereamalgamated to form the Imperial Bank of India, on 27 January1921.
An important turning point in the history of State Bank of India is the launch of the First Five
Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in
general and the rural sector of the country, in particular. Until the Plan, the commercial banks of
the country, including the Imperial Bank of India, confined their services to the urban sector.
Moreover, they were not equipped to respond to the growing needs of the economic revival
taking shape in the rural areas of the country. Therefore, in order to serve the economy as a
whole and rural sector in particular, the All India Rural Credit Survey Committee recommended
the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the takeover of the Imperial
Bank of India, and integrating with it, the former state-owned or state123 associate banks.
Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the
State Bank of India (SBI) was established on 1 July1955. This resulted in making the State
Bank of India more powerful, because as much as a quarter of the resources of the Indian
banking system were controlled directly by the State. Later on, the State Bank of India
(Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to
make the eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried out by
the 480 offices comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere repositories of the community's savings
and lending to creditworthy parties, the State Bank of India catered to the needs of the
customers, by banking purposefully. The bank served the heterogeneous financial needs of
the planned economic development.
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4.2) CURRETSCENARIO
4.2.1) Branches
The corporate centre of SBI is located in Mumbai. In order to cater to different functions,
there are several other establishments in and outside Mumbai, apart from the corporate
centre. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices,
located at major cities throughout India. It is recorded that SBI has about 13000 branches,
well networked to cater to its customers throughout India.
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4.4) TYPES BANK A/C
SBI allows the customer toopen different types of a/c as given below
1. Savings bank a/c
2. Current deposit a/c
3. Fixed deposit a/c
4. Recurring deposit a/c
5. Non frill a/c
4.4.1) Savings deposit a/c
This type of a/c can be opened with a minimum initial deposit the varies from bank to
bank, money can be deposited any time in tis a/c withdrawal can be made either by signing
a withdrawal form or in the cheque or by using ATM card. A minimum balance should be
maintained in the a/c as prescribed by the bank. The rate of interest on savings a/c is
comparatively low.
4.4.2) Fixed deposit a/c
Many people want to save money for a long period. The banks allow such person to deposit
money for a long term such type of a/c is called fixed deposit a/c.
4.4.3) Current deposit a/c
Big business man companies and institution such as college’s hospitals have to make
payment through their bank account for a certain period. Since there are restriction on
number of withdrawals from savings a/c they need to have an a/c from which the
withdrawal can be made any number of times. Current a/c is a solution for that.
4.4.5) Recurring deposit a/c
This type of a/c is suitable for those who save regularly and expect to earn a fair return on
the deposit over a period of time. while opening the account a person has to agree to deposit
once in a moth .the total deposit along with the interest there in is payable on maturity.
However, the depositor can also be allowed to close the account before its maturity and get
back the money along with the interest till that period.
4.4.5) No frill account
The basic saving bank deposit account allows you to bank with a zero minimum balance
requirement .all the existing Nofrills account opened by the bankernow converted into
BSBDA incompliance with the guidelines issued on 22 august 2012.BSBDA guidelines are
applicable to all the scheduled commercial bank in India , including foreign banks having
branches in India.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 22
4.5) STRUCTURE AND ORGANIZATION
The Banks Corporate Office is located at Mumbai. Its domestic operational area is divided
into 14 Circles, each with one Local Head Office and a few Zonal and Regional Offices.
The Bank is present not just in the major metropolises of India but has wide reach in the
villages of India. The Bank's top management consists of the Chairman, group executives
for National Banking Group, Corporate Banking Group, International Banking Group and
Associates & Subsidiaries, and four staff functionaries in charge of finance, credit, human
resources & technology management and inspection & audit.
Three Strategic Business Units (SBUs) under the Corporate Banking Group
have been set up by SBI to pay attention to big corporate customers. Distinguishing features
of the SBUs are assimilation of operational planning with operations within each SBU, an
alert delivery system with suitable specialist inputs and focused attention on profitability.
The staff and functionaries at various levels have been delegated higher financial
powers to ensure quicker decision making in credit areas and disposal of a large number of
credit proposals at operating units' level. A committee approach has been adopted, both at
the apex and circle levels, for sanction of large advances and loans. Keeping this in mind
Central Office Credit Committee and Circle Credit Committees have been set up to
ultimately ensure faster delivery. Credit and systemic risk processes have thus accordingly
been restructured. Simplified and concise credit appraisal formats have been designed to
ensure improvement in the quality of credit decisions, better quality of assets and reduction
of Non-Performing Assets or NPAs.
4.7) Mobile Banking Service over Application/ Wireless Application Protocol (WAP)
The service is available on java enabled mobile phones over SMS/ GPRS where the user is
required to download the application on to the mobile handset. The service can also be
availed via WAP on both java and non-java phones with GPRSconnection.
The following functionalities are available in the application based service/ WAP:
Funds transfer (within and outside the bank –using NEFT)
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 23
Enquiry services (Balance enquiry/ Mini statement
Cheque book request
Demat Enquiry Service (Portfolio value, Request for DIS booklet, Value of
holdings, statement of charges, Transaction status etc.)
Bill Payment (Utility bills, credit cards, Insurance premium payments)
Donations, Subscriptions
M Commerce (Mobile Top Up, Top up of Tata sky, Big TV, Sun Direct, Dish
TV connections and receive recharge pins for Digital TV/Videocon
d2h,Merchant payment, SBI life insurance premium)
4.8) Mobile Banking Service over USSD (Unstructured Supplementary Service Data)
Global Markets Direct, the leading business information provider, presents an in-
depth business, strategic and financial analysis of State Bank of India. The report provides a
comprehensive insight into the company, including business structure and operations,
executive biographies and key competitors. The hallmark of the report is the detailed
strategic analysis and Global Markets Direct’s views on the company.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 24
4.10) PRODUCTS AND SERVICES
4.10.1) Personal Banking
SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property
SBI Housing Loan Against Shares & Debentures
SBI Car Loan Rent Plus Scheme
SBI Educational Loan Medi-Plus Scheme
4.10.2) Other Services
Agriculture/Rural Banking
NRI Services
ATM Services
Demat Services
Corporate Banking
Internet Banking
Mobile Banking
International Banking
Safe Deposit Locker
RBIEFT
E-Pay
E-Rail
SBI VishwaYatra Foreign Travel Card
Broking Services
Gift Cheques
Travellers cheque
Mutual fund
Insurance schemes
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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CHAPTER 5
CUSTOMER SATISFACTION
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5.1) CONCEPT OF CUSTOMER SATISFACTION
There was a time when customers were less critical and vocal if not totally satisfied while
dealing with a business. This is not the case today. Today, Customers are becoming
increasingly more demanding, less tolerant and very critical when not having their
expectations met. There was a time when the choices available on where and who to deal
with was limited. The power belonged to the business owner, customers had nowhere else
to go and therefore customer satisfaction was not so important. In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy.
Organizations need to retain existing customers while targeting non-customer. Measuring
customer satisfaction provides an indication of how successful the organization is at
providing products and/or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The
state of satisfaction depends on a number of both psychological and physical variables
which correlate with satisfaction behaviours such as return and recommend rate. The level
of satisfaction can also vary depending on other factors such as other products against
which the customer can compare the organization's products.
There are four stages of customers with the Bank in words of Michal V. Lowenstein.
Acquisition : Winning customer
Retention : Keeping a customer
Attention : Break down of loyalty
Re-acquisition : Getting the customer back
Today’s customer is well informed than that of yester years and has acquired the products
and services, which he always deserved. Now days, their demand is infinite and their
requirements are plenty. Banking has been transformed into a “buyers” market, where
customers are given the choice to select products and services, similar in nature out of large
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
27
number of banks. So service quality or excellence is the great differentiator. It gets and
keeps the customer’s attention. It also leads to customer’s satisfaction, profitability in banks
and increases customers’ loyalty. Customer retention is the foundation for a growing
market. Thus it becomes necessary to satisfy the customers need. The figure given below
shows that the factors affecting the satisfaction of customers of the banking industry.
Source: www.academia.edu
When expectation of customers is matched the resultant feeling is satisfaction and when
expectation does not match than the resultant feeling is dissatisfaction. Customer satisfaction
can be improved by strong communication to customer. A firm should know what customer
expectation are and implement their expectation to make the customer satisfied. It is always
expensive to make new customers than to keep existing customers. The banks and the other
institutions are provide number of activities and function to make customer satisfied.
5.3) CUSTOMER LOYALTY
Customer loyalty is both attitudinal and behavioural tendency to favour one brand over all
others whether due to satisfaction with the product or services, its convenience or
performance or simply familiarity and comfort with the brand. Customer loyalty
encourages consumers to shop more consistently , spend a greater share of wallet, and feel
positive about shopping experience , helping attract customers to familiar brands in the face
of a competitive environment.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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5.4.5) Responsiveness and ability to resolve complaints and reject reports:
The workers must have professional quality to resolve the problems that occurs during the
course of service. They must be responsible enough and must have ability to resolve
complaints and reject those reports.
5.4.6) Overall communication, accessibility and attitude:
Communication matters a lot in every organization as there is no effective communication
in between workers of the organization, customers and organization and in between the
stakeholder and the workers to maintain the friendly working relation.
5.4.7) General satisfaction: The level when customer feel happy to recommend the bank
toa friend, family or relatives
5.4.8) Trust: The level when customer trust the staff at any branch to do what is best for
them
5.4.9) Reliability: The level when Customers’ requests are carried out right first time
5.4.10) Professionalism: Staffs should have the knowledge to deal with any queries that
customers have.
It is obviously difficult to deal with the customers’ expectation when it comes to intangible
nature. One of the difficulty in understanding the exact and true requirement of customer is
that the customer can and will change the provided service without excuse or notifications.
Having superior recovery process and the scientific research mechanism would help any
organisation in great extent to obtain loyal customers. (Tery G. Vavra, 2002)
Regarding the survey of SBI Branch Kollengode, It has been best tried to measure the level
of customer satisfaction based on the attributes of customer satisfaction provided by this
theory.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 30
CHAPTER 6
ANALYSIS AND INTERPRETATION
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 31
ANALYSIS AND INTERPRECTATION
The result of the survey conducted as a part of the research study has been presented and
analysed in this chapter. Analysis of data is the most skilled task in the research process.
Analysis of data means studying the tabulated material in order to determine inherent facts or
meanings. In other words the analysis means the computation of certain indices or measure or
coefficients along with searching for pattern of relationships that exist among data groups.
4. Loyalty of customers
The statistical tools such as One-way ANOVA, MANOVA, Independent Sample T-Test
and Kruskal-Wallis Test are used for analysis.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 32
6.1 DEMOGRAPHIC PROFILE OF RESPONDENTS
The demographic profile of the respondents includes age, gender, educational qualification,
occupation and average monthly income of the respondents. The table 6.1.1 shows the
details of demographic profile of the respondents.
No.Of Cumulative
Category Percent Percent.
Respondents
Up To 20 9 18 18
20-40 24 48 66
Age 40-60 11 22 88
Above 60 6 12 100
Male 27 54 54
Gender
Female 23 46 100
Up to Plus Two 17 34 34
Graduate 18 36 70
Education Post Graduate 7 14 84
Qualification Others 8 16 100
Studying 13 26 26
Agriculture 12 24 50
Occupation Govt. Service 7 14 64
Business/Profession 9 18 82
Self-Employment 9 18 100
Below 5000 17 34 34
5001-10000 7 14 48
Average
10001-20000 18 36 84
Monthly Income
More Than 20000 8 16 100
Source: Primary Data
Table 6.1.1 exhibit the profile of sample respondents selected for study. The majority of the
customers belong to the age group 20-40. Gender wise classification shows that out of 50
respondent’s majority (54 per cent) are male. As to educational qualification 36 per cent are
degree holders and only 14 percentage are post graduate. Only 34 per cent are studied up to
12th (including illiterates). From the table it can be seen that with regard to the occupation
of the respondents, 24 percent belong to agriculture followed by business and self-
employment. The monthly income classification of respondents reveals that majority of
them fall under the income group 10001-20000 and almost 84 per cent of the respondents
were receiving less than 20000 as monthly income.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 33
6.2 BANKING PROFILE OF THE RESPONDENTS
The table 6.2.2 reveals the details of banking profile of the collected respondents such as
nature of account owned by the respondent, experience of customer with the bank,
frequency of visiting bank, and the most preferred bank of the respondents etc..
No.Of
Category Percent
Respondents
Savings a/c 25 50
Type of account Fixed a/c 12 24
Current a/c 9 18
Recurring deposit a/c 4 8
Experience of Less than 1 year 36 72
customer with the 1 or more than 1 year 14 28
bank
Once in two or three days 6 12
Once in a week 4 8
Frequents of visiting Twice in a week 12 24
Fortnightly 8 16
Monthly 10 20
SBI 12 24
PNB 6 12
Most preferred bank Dhanalakshmi bank 3 6
SBT 7 14
FEDERAL bank 13 26
SBI 9 18
Source: Primary Data
The table 6.2.2 shows the banking profile of the sample respondents selected for the study.
The bank provides four types of deposit facility to its customers. Majority of the
respondents (50 per cent) are have saving account. Only the 8 per cent of the respondents
have recurring deposit account. The customers of SBI have only two years of experience
with the bank because the bank has only two years of performance. In case of frequents of
visit, the majority of the respondents (24 percentage) visit the bank or its out lets twice in a
week. The majority of the respondents have account in more than one bank. 26 per cent of
the respondents are considered Federal Bank as most preferred bank of them. 24 per cent of
the respondents choose SBI as their most preferred bank.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 34
6.2.3 THE OPINION ON FORMALITIES TO OPEN AN ACCOUNT
The table 6.2.3shows the respondents’ level of satisfaction regarding the formalities required
to open an account.
The Graph 6.2.1 shows the level of friendly service that SBI has provided to its customer
The table 6.2.4 shows the respondents opinion about the accessibility of the web site.
The table 6.2.4 shows whether the website links of the bank is understandable & easy to
navigate by the customer. Out of 50 respondents more than 50 per cent of the respondents are
satisfied about the webpages. Whereas the group who had no opinion accounts to the second
highest group. Few customers were not satisfied with the webpages’ accessibility. The bank
was able to maintain its webpages in about fifty-fifty and satisfy half of its customer. More than
50 per cent of the population of the Kollengode is still deprived of computer uses remained in
neutral group. This is rather a good result in the context of Kollengode.
The SBI provides number of facilities to its customers and charge certain amount for such
services. The customer’s opinion about the fee based services like issuing draft, safety
locker, collection of cheques and bills, issuing travellers’ cheque, payment of bill on behalf
of customer, foreign money exchange and transfer of fund and purchase and sale of
securities. The variations of the opinion of the respondent about fee based services with
regard to monthly income of respondents are analysed with one-way ANOVA and the
output is presented in the table 6.3.5 and 6.3.6.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
36
H0: There is no significant variation in the mean scores obtained for the variable “customer
evaluation on selected products and services” among the monthly income wise
classification of respondents.
H1: There is significant variation in the mean scores obtained for the variable “customer
evaluation on selected products and services” among the monthly income wise
classification of respondents.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
37
Table 6.3.6 DESCRIPTIVE STATISTICS
95% Confidence
Interval for Mean
Std. Lower Upper
N Mean Std. Deviation Error Bound Bound
Issuing Below 5000 17 2.24 .752 .182 1.85 2.62
drafts 5001-10000 7 1.57 .787 .297 .84 2.30
10001-20000 18 2.06 .639 .151 1.74 2.37
More than 20000 8 2.13 .991 .350 1.30 2.95
Total 50 2.06 .767 .108 1.84 2.28
Safety locker Below 5000 17 1.94 .748 .181 1.56 2.33
5001-10000 7 2.43 .535 .202 1.93 2.92
10001-20000 18 1.67 .686 .162 1.33 2.01
More than 20000 8 2.25 .886 .313 1.51 2.99
Total 50 1.96 .755 .107 1.75 2.17
Collection of Below 5000 17 2.12 .485 .118 1.87 2.37
cheque and 5001-10000 7 2.00 .816 .309 1.24 2.76
bill 10001-20000 18 2.06 .639 .151 1.74 2.37
More than 20000 8 2.25 .886 .313 1.51 2.99
Total 50 2.10 .647 .091 1.92 2.28
Issuing Below 5000 17 1.76 .664 .161 1.42 2.11
travellers 5001-10000 7 1.57 .787 .297 .84 2.30
cheque 10001-20000 18 1.83 .618 .146 1.53 2.14
More than 20000 8 2.63 .518 .183 2.19 3.06
Total 50 1.90 .707 .100 1.70 2.10
Payment of Below 5000 17 1.71 .588 .143 1.40 2.01
bills behalf 5001-10000 7 2.14 .690 .261 1.50 2.78
of customer 10001-20000 18 1.61 .608 .143 1.31 1.91
More than 20000 8 1.38 .518 .183 .94 1.81
Total 50 1.68 .621 .088 1.50 1.86
Money Below 5000 17 1.82 .529 .128 1.55 2.10
exchange 5001-10000 7 2.00 .577 .218 1.47 2.53
and transfer 10001-20000 18 1.78 .647 .152 1.46 2.10
More than 20000 8 2.38 .518 .183 1.94 2.81
Total 50 1.92 .601 .085 1.75 2.09
Purchase and Below 5000 17 1.71 .470 .114 1.46 1.95
sale of 5001-10000 7 2.14 .378 .143 1.79 2.49
securities 10001-20000 18 1.44 .511 .121 1.19 1.70
More than 20000 8 1.88 .835 .295 1.18 2.57
Total 50 1.70 .580 .082 1.54 1.86
Source: Primary data
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 38
The result of one way ANOVA for the variable “ customer evaluation on fee based banking
products and services” among the monthly income wise classification of respondents give f
values 1.284, 2.390, 0.221, 2.170 and 2.206 which is found to be not significant at 5 Per
cent level(p >0.05). Hence the null hypothesis is not rejected. This implies that there is no
difference in the mean scores obtained for the variables stated above based on monthly
income. The f values of 4.286 and 3.126are found to be significant at 5 percent level (p
0.009, 0.035) with respect to issuing travellers cheque and purchase and sale of securities.
Hence the null hypothesis is rejected. This implies that there is difference in the mean score
obtained for the variables stated above based on monthly income. As regards the issuing
travellers cheque the monthly income group in between 5001-10000 has the lowest mean
value (mean value 1.57). As regard to the purchase and sale of securities the monthly
income group in between 10001-20000 has lowest mean value (1.44). It means price
charged by the bank for such services like issuing travellers’ cheque and purchase and sale
of securities are high as perceived by respondents belonging to the income group in
between 5001-10000 and 10001-20000 respectively.
The variations of the opinion of the respondent about loyalty of customers with regard to
years of experience of the respondents with banks are analysed with T-Test and the output
is presented in the table 6.4.7and 6.3.8. The hypothesis of the test are given bellow
H0: There is significant variation in the mean scores obtained for the variable “loyalty of
customer with the bank” among the years of experience of the respondents with the bank...
H1: There is no significant variation in the mean scores obtained for the variable “loyalty of
customer with the bank” among the years of experience of the respondents with the bank..
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
39
Table 6.4.7 INDEPENDENT SAMPLE TEST
Levine’s Test for
lity of Variances t-test for Equality of Means
95% Confidence
l of the Difference
Sig. (2- Mean Std.
F Sig. T df ed) rence ifference Lower Upper
Never Equal variances 3.676 .061 1.184 48 .242 .472 .399 -.330 1.274
Changing assumed
This Bank Equal variances 1.279 28.08 .211 .472 .369 -.284 1.228
not assumed 9
I am a Equal variances 1.395 .243 - 48 .283 -.409 .376 -1.165 .348
Loyal assumed 1.086
customer Equal variances - 29.98 .237 -.409 .339 -1.101 .283
Of this not assumed 1.206 1
Bank
I will Equal variances .026 .872 -.321 48 .750 -.111 .346 -.808 .585
Continue assumed
Using the Equal variances -.310 22.23 .759 -.111 .358 -.854 .631
Services not assumed 5
of this
Bank
I Equal variances 1.052 .310 .480 48 .633 .183 .380 -.582 .947
Recommend assumed
my bank Equal variances .448 20.89 .658 .183 .407 -.664 1.029
To not assumed 4
others
I will Equal variances 9.154 .004 -.041 48 .968 -.020 .485 -.996 .956
Switch assumed
to other Equal variances -.048 35.32 .962 -.020 .409 -.850 .810
Bank when not assumed 7
they
Provide
Good
Service
I will switch Equal variances .250 .619 .744 48 .460 .337 .453 -.574 1.248
To other assumed
bank when Equal variances .706 21.48 .487 .337 .477 -.654 1.329
It have not assumed 6
Problems
Source: Primary Data
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 40
Table 6.4.8 GROUP STATISTICS
How long have been a
customer N Mean Std. Deviation Std. Error Mean
Never changing this Lessthan one year 36 2.47 1.320 .220
bank 1 or more than one year 14 2.00 1.109 .296
I am a loyal customer of Less than one year 36 2.31 1.261 .210
this bank 1 or more than one year 14 2.71 .994 .266
I will continue using the Lessthan one year 36 2.39 1.076 .179
services of this bank 1 or more than one year 14 2.50 1.160 .310
I recommend my bank to Lessthan one year 36 2.61 1.153 .192
others 1 or more than one year 14 2.43 1.342 .359
I will switch to other Lessthan one year 36 3.19 1.670 .278
bank when they provide 1 or more than one year 14 3.21 1.122 .300
good service
I will switch to other Lessthan one year 36 3.19 1.390 .232
bank when it have 1 or more than one year 14 2.86 1.562 .417
problems
Source: Primary data
The result of T-test for the variable “ loyalty of customer wit SBI” among the experience of
customer with the bank wise classification of respondents gives F values 3.676, 1.396, 0.026,
1.052, 9.154 and 0.250 are found to be not significant at 5 per cent level (p>0.05). Hence the
null hypothesis is not rejected. It means the respondents are found to be loyal similarly as to
period of association ship. It might be due to shorter working experience of the bank too.
The SBI provide e-banking services to its customers. From the collected respondents most
(86 percentage) of the peoples are use e-banking services only 14 percentage of the
respondents are not using the e-banking services. While using e-banking services the
customers may face the following problems like shortage of money in ATM, amount
debited but not withdrawn, no access to internet, problem in fund transfer, insecure
transaction, chance of hacking and personnel information is not protected etc.
Kruskal Wallis test is used to find the customer perception on problems faced in the e-
banking services and to test the following hypothesis
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
41
H0: There is difference in the customer perception on problems faced in e-banking services
among the different age group of the respondents.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 42
Table 6.5.10 KRUSKAL WALLIS TEST
Shortage
of Amount No Problem Insecure Personnel
money debited but access to in fund transactio information is
at ATM not withdrawn internet transfer ns not protected
Chi-Square 2.900 10.489 1.862 10.116 3.701 2.412
Df 3 3 3 3 3 3
Asymp. Sig. .407 .015** .602 .018** .296 .491
a. Kruskal Wallis Test
b. Grouping Variable: AGE
Source: Primary data
**Significant at 5 percent level of significance
The table 6.5.8 and 6.5.9 reveals that all the hypothesis except relating to amount debited but
not withdrawn and problems in fund transfer are not rejected as the p value are 0.015 and 0.018.
As related to hypothesis, other e-banking problems are rejected as the P value are
0.407, 0.602, 0.296 and 0.491 (p>0.05). The amount debited but not withdrawn are mostly
faced by the age group 20 – 40 which has the least mean rank (mean rank 15.05). In case of
problem in fund transfer are mostly faced by the age group 20-40 (lowest mean rank 12.60).
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 43
H1: There is significant variation in the mean scores of the set of variables describing level
of satisfaction of the products and services of SBI between educational qualifications, type
of account and experience of customer with the bank.
MANOVA is used to test the hypothesis. The test results are presented on the table 6.6.11,
6.6.12, 6.6.13, 6.6.14, 6.6.15, and 6.6.16.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
44
Table 6.6.13 TEST OF BETWEEN –SUBJECTS EFFECTS
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
45
Table 6.6.14 EDUCATIONAL QUALIFICATION
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
46
Table 6.6.15. TYPE OF ACCOUNT
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
47
Table 6.6.16. EXPERIENCE OF CUSTOMER WITH THE BANK
HOW LONG HAVE Std. 95% Confidence Interval
Dependent Variable BEEN A CUSTOMER Mean Error Lower Bound Upper Bound
Product Related Less than One Year 2.123 .162 1.796 2.449
Service 1 or more than 1 year 2.304 .238 1.824 2.784
Price Related Service Less than One Year 2.551 .103 2.343 2.759
1 or more than 1 year 2.462 .151 2.157 2.767
People Service Less than One Year 2.600 .090 2.419 2.781
Related Satisfaction 1 or more than 1 year 2.447 .132 2.181 2.713
Process Related less than One Year 2.144 .062 2.018 2.270
Satisfaction 1 or more than 1 year 2.169 .092 1.984 2.354
Promotion Related less than One Year 2.597 .149 2.297 2.897
Satisfaction 1 or more than 1 year 2.153 .218 1.713 2.594
Physical Evidence less than One Year 2.464 .109 2.243 2.684
Related Satisfaction 1 or more than 1 year 2.441 .160 2.118 2.765
Source: Primary data
The estimated marginal mean and MANOVA tables 6.6.11. 6.6.12, 6.6.13, 6.6.14, 6.6.15,
and 6.6.16 indicate that the mean score of the six variables of satisfaction of customer
satisfaction taken together varyover educational qualification, andexperience of customer
with bank. Customer satisfaction with regards to experience of customer with bank is found
to be significant independently. The statistical significance of the variation of the mean
confirms this. In addition, the MANOVA is characterised by powerfulPillai’s trace test is
significant at 5percent level of significance(value of F=8.173 with P=0.00 <0.05as to
experience of customer with the bank). With regard to educational qualification, even
6variables taken together vary, they are found to be not significant independently. The
mean score with regards to product and process related satisfaction are found to be lower. It
means that respondents having less than one year experience are highly satisfied in respect
of product and process related services (with low mean score 2.123,2.144 respectively).
Represents having an experience of one or more than one year are found to be highly
satisfied with price, people, promotion and physical evidence related services of bank(with
low mean score 2.462,2.447,2.153 and 2.441 respectively).
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 48
CHAPTER 7
SUMMARY OF FINDINGS,
SUGGESTIONS AND CONCLUSION
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 49
FINDINGS, SUGGESTION AND CONCLUSION
This chapter is devoted for giving summary of findings made from the study and offering
suggestion to improve the customer satisfaction in SBI Namakkal branch. The findings are
presented on the basis of different tools of analysis such as, Chi-Square Tests, MANOVA,
One-way ANOVA, T-Test and KruskalWallisTest.
The majority (48 per cent) of the customers belong to the age group 20-40. Gender wise
classification shows that out of 50 respondent’s majority (54 per cent) are male. As to
educational qualification 36 per cent are degree holders and only 14 percentage are post
graduate. Only 34 per cent are studied up to 12th (including illiterates).
The monthly income classification of respondents reveals that majority (36 per cent)
of them fall under the income group 10001-20000 and almost 84 per cent of the
respondents were receiving less than 20000 as monthly income.
Majority of the respondents (50 per cent) have saving account. 8 per cent of the
respondents have recurring deposit account. In case of frequents of visit, the
majority of the respondents (24 per cent) visit the bank or its out lets twice in a
week. The majority of the respondents have account in more than one bank. 26 per
cent of the respondents are considered Federal Bank as most preferred bank of them.
24 per cent of the respondents choose SBI as their most preferred bank.
The bank still seems unable to provide friendly atmosphere to its customer because
only about one tenth of people were strongly agreed with the fact that SBI is able to
create friendly service...
Customer evaluation on fee based banking products and services” among the
monthly income wise classification of respondents are found to be not significant at
5 Per cent level (p >0.05) except the fee based services like issuing travellers cheque
and purchase and sale of securities. The F value of above stated services include
4.286 and 3.126 which are found to be significant at 5 percent level (p 0.009, 0.035).
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
50
7.1.4) Findings on loyalty of customer
The “loyalty of customer with SBI” among the experience of customers with the
bank wise classification of respondents are found to be not significant at 5 per cent
level (p>0.05). It means that the collected respondents are not loyal about the bank.
It might be due to shorter working experience of the bank too.
7.1.5) Findings on problems faced in e-banking services
The customers face so many problem while using e-banking services. The Kruskal
Wallis test shows that all the e-banking problem except amount debited but not
withdrawn and problem in fund transfer are not statistically significant at 5 per cent
level of significance. Because the P values are above 0.05. The above stated
problems are mostly faced by the age group in between 20-40.
The customer satisfaction with regard to experience of customer with the bank is found to
be significant independently.
The respondents having an experience of one or more than one year are found to be highly
satisfied with price, people, promosion and physical evidence related services of the bank.
About 20per cent of the customers are unaware about the innovative services provided by
the bank.
Customer education is simply the process by which people are taught about
various goods and services in detail so that the consumer would get the maximum
satisfaction and utilization of it. There are lots of advantages of consumer education such as
it acts as feedback for the business, the interaction between consumer and producer helps to
standardize the products and services.
I would thus suggest SBI Namakkal branch to carry out customer education and awareness
programs through different media. Since higher number of customer of Kollengode SBI
even do not know about the products and services such as use of ATM, Internet Bank,
Mobile Banking, different beneficial schemes etc., it would be a great start for SBI to create
awareness campaign where they could guide customers about the products and use of
different services.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
51
7.2.2) Beneficial schemes
SBI Namakkal branch has different beneficial schemes for its customers such as different
types of deposit accounts with attractive interest rates, cheaper interest rates on long term
loans, travel cards, etc. However, only few customers seem to be benefitted from these
schemes. The bank should try to focus such schemes to deprived and poor groups so that all
of its customers would get an equal opportunity. Several researches should be carried out
regarding the issue.
7.2.3) Advertisements
Training program is very essential with the development and standardization of the
products and services. Systems and products are getting scientific day by day. So it is very
important for SBI to manage some training programs to give actual guidance to its
customers to use the products effectively.
Employees being the key element of any business firm play a vital role in the management
of the business. The quality service can be assured only if the employees are well trained.
The employees should first know about the use of products and services in a right way then
only s/he is able to make customers satisfy. Use of modern equipment’s, devices,
accounting systems, billings and fillings always needs a right training to make the job done
accurately and in right time. Accuracy and punctuality is the key term for the success of the
banking institute. Thus Kollengode SBI should conduct regular trainings programs for its
staffs under different category. The different departments should get specific trainings and
guidance in order to create quality services and products.
To belong to the crowd creates motivation; it is very important for workers to receive timely
information, communications, understanding of company’s policy of decision making,
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 52
advancement and growth opportunities, participation in team meetings and programs, etc.
Staffs of SBI are not satisfied in high level which could obviously affect the job
performance. It is thus very important for managers to conduct such programs where staffs
would get adequate information about the company policies and the communication
process. Besides, proper guidance is always important.
It is very important and highly recommended to the managers of SBI to find out the real gap
between customers’ expectations and employees’ knowledge about customers wants and
desires. Proper research being based on the gap analysis would be highly recommended.
The present study has some limitations and it is very essential to recognize them to refine
future researches. Firstly the survey questionnaire was given during bank hours;
respondents may not have had time to respond because of the lack of time, stress and
pressure at work. It give importance only to the customer satisfaction and doesn’t measure
the employee’s satisfaction clearly. For the future research, more related attributes can be
added to make the survey more precise and more applicable to the bank industry.
7.4) CONCLUSION
It is very important for any business firm to assess the level of customer satisfaction. High level
of satisfaction could translate into profits whereas low level of satisfaction means customers are
more likely to shift in favour if competitors. The first main objective of this survey was to find
the level of customer satisfaction and as per the findings of this survey; SBI Namakkal branch’s
customers are fairly satisfied. The results from returned questionnaires showed that a majority
of customers were either satisfied or neutral with SBIs’
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
53
performance. Overall the questionnaire shows that the products and services provided are at
good level however, great improvements are needed to enhance the satisfaction level.
The result showed that high number of respondents stayed neutral about the loan products
and online banking system of Nepal SBI bank. Thus it can be concluded that many
customers are still unknown about the schemes and process of getting loan from Bank.
Higher numbers of respondents still do not find internet banking as a useful product of bank
since they are not properly guided about the system. Regarding the check and Interest
bearing products, respondents are equally satisfied or dissatisfied. It can be concluded that
SBIs’ product is still not yet in high level to satisfy higher number of customers.
SBI Kollengode bank has still a lot to do to enhance customers’ loyalty since almost
half of the customers are just fairly satisfied followed by the group who had no opinion
about what relation and loyalty means. There are no one have a loyalty about the banks
performance. It is because of that the bank has only two years of experience. Within that
short period it is not possible to make loyal customers. When the bank has performed more
than 5 years it must have some loyal customers it is possible only when the bank performed
to meet the customer’s expectations.
Customers are fairly satisfied with the scheme of loan products of SBI. Most people are still
unknown about the provided scheme or it could be as if the process to get loan from bank is too
difficult. The bank should study more about the matter. Customers seem to be very satisfied
regarding the deposit product however employee contact relationship seems to be poor. Either
the employees may not be well trained to serve customers in right way or time to serve many
customers in a day could be the main reason behind the dissatisfied customers.
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
54
BIBLIOGRAPHY
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 55
BIBLIOGRAPHY
WEBSITES
1. www.ethesissaurashtrauniversity.edu
2. www.academia.edu
3. www.Shodhgangainflipnet
4. www.Wikipedia.com
5. www.Googlesearch.com
6. www.statebank.com
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
56
APENDIX
Customer Satisfaction on selected banking products and services of SBI Namakkal branch 57
INTERVIEW SHEDULE
PART 1
PERSONAL PROFILE
2) Age : Up to 20 20-40
40-60 Above 60
Post-graduation Others
Studying
PART 2
BANKING PROFILE
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
58
7) How long have you been a customer of this bank?
Fortnightly Monthly
PART 3
11) How do you feel about the rate charged by the bank to the following
services?(H=High, M=Moderate, L=Low)
Sl no Services H M L
1 Issuing draft
2 Safety lockers
3 Collection of cheques and bills
4 Issuing travellers cheque
5 Payment of bill on behalf of customer
6 Foreign money exchange and transfer
7 Purchase and sale of securities
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
59
PART 4
CUSTOMER SATISFACTION
12) Based on your experience with this bank how satisfied are you with the
following?
Sl no Statements HS S N DS HDS
1 Product related satisfied
1.1 Wide range of products and services
1.2 Innovativeness in introducing new schemes
1.3 Speed of withdrawal
1.4 Speed of depositing money
1.5 Availability of mutual fund/insurance schemes
1.6 Availability of loan
2 Price related satisfaction
2.1 The service charged on banking products and
services
2.2 Interest charged on loan
2.3 Interest on savings deposit
2.4 Interest available to the senior citizens
2.5 Rates charged on discounting of bills
3 Place related satisfaction
3.1 The bank is located in a convenient area
3.2 Parking facilities
3.3 Availability of ATMs at convenient place
3.4 Availability of top officials in case of need
4 People service related satisfaction
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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4.1 Employees understand the need of customers
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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6.4 Banking staff provides guideline to take banking
products and services
7 Satisfaction with regard to physical evidence
7.1 The office premises are clean and tidy
7.2 Proper sitting facilities for waiting inside the bank
PART 5
LOYALTY OF CUSTOMER
Sl no Statements SA A N D SD
1 I have never seriously considered changing this
bank
2 I consider myself to be a loyal customer of this
bank
3 I will continue using the services offered by this
bank
4 I recommend my bank to others
5 I will switch to a competitor bank that offer more
attractive benefits/interest rates
6 I will switch to a competitor bank when there are
problems with the current banks services
Customer Satisfaction on selected banking products and services of SBI Namakkal branch
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PART 6
Yes No
Note: If yes rate the following e-banking problems otherwise jump on to the next
question
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