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CUSTOMER SATISFACTION
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REPORT
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PUNJAB NATIONAL BANK
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VASHI BRANCH
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6/20/2010

SUBMITTED TO: MR.B.G.PINTO

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SUBMITTED BY: DEEPIKA PARMANAND

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AMESAR
N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES &
RESEARCH

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 ACKNOWLEDGEMENT
I would like to express my sincere gratitude to Punjab National Bank for
giving me this wonderful opportunity to conduct a Customer Satisfaction
Survey for your branch at Vashi. It has been a great learning experience to
interact with the customers on a one to one basis.

I would like to thank Mr. B.G.Pinto & Mr. Mukund Aire for helping me with the
project in every way.

I would like to thank the Manager of the Vashi branch Mr. Vikram Das for
sharing his wonderful experiences & insights on the working of the bank with
me. I would also like to thank all the employees of the Vashi branch for
making me feel comfortable in every way.
 INDEX

1.Acknowledgment
2.Introduction
3.Objective of the study
4.Research Design of the Study
5.Findings & Suggestions
6.Data Analysis and Interpretation
7.Sample Questionnaire
 INTRODUCTION
BANKING SECTOR
During the past decade, the banking sector had under gone rapid and
striking changes like policy changes due to globalization and liberalization,
increased competition due to the entrance of more private sector banks,
downsizing, introduction of new technologies, etc. The advent of
technological revolution in all walks of life coupled with globalization,
privatization policies has drastically changed conventional patterns in all
sectors. The banking sector is of no exemption. The 1990s saw radical policy
changes with regarding to fiscal deficit and structural changes in India so as
to prepare her to cope with the new economic world order. Globalization and
privatization led policies compelled the banking sector to reform and adjust
to have a competitive edge to cope with multinationals led environment. The
advent of technological changes, especially extensive use of computers in
the sector has changed the work patterns of the bank employees. Economic
reforms and the entry of private players have seen nationalized banks
revamp their services and product portfolios to incorporate new, innovative
customer-centric schemes. Hence, Indian banking has finally woken up to the
surging demands of the ever-discerning Indian consumer

CUSTOMER SATISFACTION IN THE BANKING SECTOR

The working of the customer's mind is a mystery which is difficult to solve
and understanding the nuances of what customer satisfaction is, a
challenging task. This exercise in the context of the banking industry will
give us an insight into the parameters of customer satisfaction and their
measurement. This vital information will help us to build satisfaction
amongst the customers and customer loyalty in the long run which is an
integral part of any business. The customer's requirements must be
translated and quantified into measurable targets. This provides an easy way
to monitor improvements, and deciding upon the attributes that need to be
concentrated on in order to improve customer satisfaction. We can recognize
where we need to make changes to create improvements and determine if
these changes, after implemented, have led to increased customer
satisfaction. "If you cannot measure it, you cannot improve it." - Lord
William Thomson Kelvin (1824-1907).
Banking operations are becoming increasingly customer dictated. The
demand for 'banking supermalls' offering one-stop integrated financial
services is well on the rise. The ability of banks to offer clients access to
several markets for different classes of financial instruments has become a
valuable competitive edge. Convergence in the industry to cater to the
changing demographic expectations is now more than evident. The domestic
economy is an increasing pie which offers extensive economies of scale that
only large banks will be in a position to tap. With the phenomenal
increase in the country's population and the increased demand for
banking services; speed, service quality and customer satisfaction
are going to be key differentiators for each bank's future success.
Thus it is imperative for banks to get useful feedback on their actual
response time and customer service quality aspects of retail banking, which
in turn will help them take positive steps to maintain a competitive edge.
 RESEARCH

OBJECTVES OF THE STUDY

1. To analyze the various factors responsible for customer satisfaction.

2. To ascertain the Customer Satisfaction Index for the customers

transacting at Vashi branch.

3. To suggest measures based on the findings of the study.

RESEARCH DESIGN OF THE STUDY

The study is based on survey technique. The study consists of analysis about
customer’s satisfaction towards the services provided by PNB at Vashi
Branch. For the purpose of the study 50 customers were picked up at
random and their responses solicited on different parameters. The
methodology adopted includes

• Questionnaire

• Random sample survey of customers

• Discussions with the concerned

• Further applying simple statistical techniques the data collected was

processed.
Sampling plan:

• Sampling: Sampling survey method was adopted for the purpose of

the study.

• Population frame of reference: Punjab National Bank is chosen as

universe for the purpose of our research.

• Sampling size: A sample of 50 customers was chosen for the purpose

of the study.

• Method of Sampling: Cluster Sampling/Area Sampling was used

wherein the Vashi branch was chosen for the purpose of research.

FINDINGS & SUGGESTIONS

The major findings of the survey are listed below. Along with it the major
problem areas are identified & suggestions to improve the same are also
incorporated in the study.

RECEIPT OF ACCOUNT STATEMENTS: Out of the 50 respondents

surveyed-

• 40 don’t receive account statements at all. That is a huge number

considering the increasing use of internet all around.

• 5 each receive their account statements by Email or via a hardcopy

delivered at the doorstep.

• Those who don’t receive their account statements personally come to

update their passbooks to the bank. This can be responsible for the
huge queues at the counters.

• Majority of the people update their passbooks on a monthly basis.

 Mode of receiving account statements

Frequency of updating passbook personally

• People need to be educated for using the alternate ways of banking.

Updating passbook is a non value adding activity & consumes the
productive time of the bank employees. If customers use the alternate
ways of receiving their account statements the queue length can also
be reduced. Also the work can be done in a quicker way.
IMPROVEMENT AREAS FOR THE BANK: Out of the 50 respondents
surveyed-

• Majority i.e. 34% feel that the bank can do a lot in improving customer
service

• The next improvement area is being quick in responding to the

customer requests. This is felt by 32% of the customers.

• This result does hold true because when the survey was being
conducted there were frequent system failures in the bank which used
to lead to long queues without the work of the customers being done.
Many of the customers were turned away. However this does not in
any way mean that the bank employees were rude to the customers or
were turning them away for no reason. However the customers may
not have taken it in the positive spirit & hence such a skewed result.

• The bank needs to update its systems to better standards so that such
frequent failures don’t reoccur.

• Also some of the customers feel that there should be better & quicker
services for senior citizens. While there is a separate counter for senior
citizens the rule is not strictly implemented.
 STAFF BEHAVIOR & COOPERATION: Out of the 50 respondents
surveyed:

• 78% feel that the staff behavior & cooperation is satisfactory.

• 16% are highly satisfied with the staff behavior & cooperation

• 6% are not at all satisfied with the staff behavior & cooperation.
These comprise those people who feel that they should be allowed
to have their required banking facilities at other locations also which
are closer to their homes which as a rule holds true but is not
practiced as told by the customers. These also comprise those
customers who feel they are unnecessarily made to wait in long
queues for a simple activity like updating their passbooks.

• The customers should be allowed by the bank staff to do their

transactions at any branch & the customers of other branches should
also be properly entertained by the bank employees if the customers
desire so. Since banking is a Service oriented it matters a lot in
ensuring customer satisfaction.

INTERNET BANKING FACILITY: Out of the 50 respondents surveyed:

 • A shocking 64% are either not aware or not using the Internet banking
facility.

• Among the few users 8% each are very highly or highly satisfied & 10%
are moderately satisfied.

• Those who are unsatisfied or have a low satisfaction complain that the
server is very slow or remains down when needed urgently. This again
calls for serious technological up gradation.

• The customers should be educated & encouraged to use the Internet

banking facility in a serious way. Online banking kits should be
publicized & distributed properly so that the customers come to know
about it. This would go a long way in ensuring that the time of both the
customers as well as employees is saved.

ATM SERVICE LEVEL: Out of the 50 respondents surveyed:

• 15 customers don’t use the ATM facilities which is a huge number

considering the ever increasing use of ATMs these days.

• Out of the remaining 35 customers who are the users the following
results emerge for the problems being faced while operating ATMs. The
problems are rated as 5 being the most problematic part of operating
ATMs while 1 being the lowest problem.
 • The biggest problem being faced by the customers is the dearth of
ATMs in their vicinity. It is given an average rating of 4.3 which is
highly unsatisfactory. There is a need to open more ATM counters
across the city.

• The second most important problem being faced by the customers is of

the ATMs being frequently out of order. It is given an average rating of
4 which is very unsatisfactory. The customers complain that the ATMs
don’t work most out the times.

• Non availability of cash many a time is another major problem which is

given an average rating of 2.6 while long waiting time at the queues is
given an average rating of 2.

• Other problems given an average rating of 2.5 range from the currency
coming out of the ATMs not being proper, the receipts not being
printed properly, annual deduction of charges for holding debit cards.

• There is a strong need to educate & encourage the customers to use

the ATM facilities to reduce the work load of the employees & also for
better convenience of the customers.

TOTAL TURNAROUND TIME: Out of the 50 customers surveyed:

 • 28% feel that transactions like tax deposition, cash withdrawal &
updating passbook take either less than 10 minutes while an equal
number of respondents feel that it takes 10-20 minutes.

• 36% feel that it takes 20-30 minutes & they are not satisfied with this
slow response. 8% also feel that it takes more than 30 minutes which
is too long a time to spend for such activities.

• While the complaints of the customers maybe valid if we lookform their

point of view, it is also true that the servers were not working properly
when the survey was conducted. Hence the customers gave such extreme
answers.
• Such problems can be avoided by up grading the servers properly &
also by encouraging the customers to use alternate banking facilities.
• Automatic token generating machines can be used so that customers
don’t have to wait in queue even to get the tokens.
• Checker and maker system of cheque clearing, etc can be refined so
that turnaround time may be reduced further.

DATA ANALYSIS & INTERPRETATION

The customer satisfaction survey was done on the major 5 parameters
mentioned below.
 1. The customers rated each of these parameters on a scale of 1-10 with
higher rating being given to the parameter customers think is the most
important to them for gauging bank’s deliverability and service.
2. A = Average Weighting assigned by all respondents for each
parameter
3. B = Average Score assigned by all respondents for each parameter
4. Avg. Weighting = (6.5+1.5+3.5+9.5+7.5)/5 = 5.5
5. C = Weighting based on avg. of 1 = Individual Weighting / avg.
Weighting
6. D = Weighted Score = Score * Average Weighting = B * C
7. Satisfaction Index CSI = Average of (Weighted Scores)
8. CSI = (3.5+0.729+2.688+12.975+11.152)/5 = 6.2088
Since the scale used was 1 - 10, CSI = 62.08%

CUSTOMER SATISFACTION INDEX

Weight
Rating Weight Scor Weighting ed
PARAMETERS Scale ing e (avg of 1) Score

A B C D=B*C
ATM NETWORK 6-5 5.5 3.5 1 3.5
INTERNET BANKING 2-1 1.5 2.7 0.27 0.729
RECEIPT OF ACCOUNT
STATEMENTS 4-3 3.5 4.2 0.64 2.688
TURNAROUND TIME 10-9 9.5 7.5 1.73 12.975
STAFF BEHAVIOR &
COOPERATION 8-7 7.5 8.2 1.36 11.152
AVERAGE 5.5 6.2088
CSI 62.08%
The customer satisfaction index turns out to be above average which is an
indicator that PNB is not performing poorly in regards to the customer
service. Still; there is a vast opportunity for improvement in the area of
customer service by the bank.
 CUSOMER SATISFACTION SURVEY QUESTIONNAIRE

PERSONAL INFORMATION

Age Group:

Below 25 yrs 25-40 yrs 40-60 yrs above 60

yrs
Educational Qualification:

Up to X XII Graduate Post Graduate

Occupation:

Student Service Business Other

1. What kind of Accounts do you hold?

Savings Current Loan Credit Card

Personal loans

Home loans Vehicle loans Fixed deposits

Others

2. Does PNB offer Competitive Interest Rates? Yes / No

3. Do you use the services of any other banks? If yes, would you please share
the reasons?

4. Where do you feel the bank needs improvement?

Customer service Quick response Product range offered

Ambience Others

5. What do you look for in a bank when you decide to start a relationship?

Wide branch network ATM Network Customer Service

Choice of products Others

6. When you think of PNB what comes to your mind first?

 100% Core Banking Complete Banking Personalized
Services

Good Customer Services Others

7. Rate the following problems you face while operating the ATM service on the
scale of 1 to 5 (5 being the highest & 1 being the lowest)

Non availability of cash many a time Frequently out of order

No PNB ATMs in your vicinity Long waiting time at the ATMs

Others, please specify

8. Rank the following ATMs in the order of comfortable usage on a scale of 1-5
(5 being the lowest rank & 1 being the highest rank)

PNB SBI ICICI Axis Others, please specify

9. What is your satisfaction level of using the internet banking facility provided
by PNB?

Very High High Medium Low Not at all satisfied

10.Mode of receiving your Account statements

Via Email Statement Via Hard copy delivered at your doorstep

Don’t receive at all

11.How often do you receive your Account statements?

Monthly on demand Quarterly on demand Half yearly

on demand
 Yearly on demand Don’t receive at all

12.How long does the Bank staff take to process your request?

Less than 10 min 10-20 min 20-30 min More than 30 min

13.How long do you have to wait in queue for contacting the concerned staff
person at the counter?

Less than 10 min 10-20 min 20-30 min More than 30 min

14.What problem have you faced while opening your Account in PNB?

Difficulty in filling Delay in issuance of Complex documentation

Application form Cheque book, debit card, process

Online banking kit etc.

Others, please specify

15.How do you find the cooperation level of the staff?

Highly satisfactory Satisfactory Non Satisfactory