A STUDY ON PREFERENCE AND SATISFACTION LEVEL OF DEPOSITORS IN SUNDARAM FINANCE LIMITED Submitted By Karthika.

N (REGISTER NO: MA80291) In partial fulfillment of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of Mrs. R.Priya MBA , M.Phil DEPARTMENT OF MANAGEMENT STUDIES VCMCS, CHENNAI

VELAMMAL COLLEGE OF MANAGEMENT AND COMPUTER STUDIES

Velammal Nagar, Chennai 600066. Affiliated to UNIVERSITY OF MADRAS

VELAMMAL COLLEGE OF MANAGEMENT AND COMPUTER STUDIES CHENNAI-600 066

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BONAFIDE CERTIFICATE
DEPARTMENT OF MANAGEMENT STUDIES

This is to certify that the project work entitled A Study on Preference and satisfaction level of depositors in Sundaram Finance Limited, is a bonafide record work done by Karthika. N (Reg.No. MA80291) submitted in the partial fulfillment of the requirement for the award of the degree of MBA of the University of Madras, Chennai.

Mrs.R.Priya Faculty guide

Dr. R .ARASU Head of Department

Dr. CHRISTINE PALANI Director of VCMCS

Place: Chennai Date:

DECLARATION
KARTHIKA. N a bonafide student of the Department of Management

studies, Velammal college of management and computer studies, Chennai would like to declare that the project titled A Study on Preference and Satisfaction level of depositors in Sundaram Finance Limited in the partial fulfillment of the Masters in Business Administration degree course of the University of Madras is my original work and will not be submitted for the award of an other degree, diploma, fellowship or other title or prize.

Place : Chennai Date :

KARTHIKA. N

ACKNOWLEDGEMENT

would

like

to

express

my

sincere

gratitude

to

our

Chairman

Mr.M.V.Muthuramalingam and also thank our CEO Mr.M.V.M.Velmurugan for encouraging us to do the training well in the organization. I would like to thank our Director Dr.Christine Palani, our HOD Mr.R.Arasu and also thank to my Internal guide Mrs.Priya for helping me to undergo the training . I wish to express my gratitude to Sundaram Finance Limited for permitting me to undertake the project training in their organization. Next I owe gratitude to my external guide Mr.Varadarajan (HeadDeposits)for helping me undergo the project. Last but not least I would thank our staff members, VCMCS for their support during the course of my project which is worth praising. I also express my gratitude to my parents for blessing me and encouraging me to undergo the training effectively.

INDUSTRY PROFILE

Non-banking financial companies INTRODUCTION :

Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. Operations are, regardless of this, still exercised under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company can do the business of banking, and there are no banking licenses issued.

SERVICES PROVIDED :
Non-bank institutions frequently

act as suppliers of loans and credit facilities supporting investments in property trade money market instruments fund private education provide wealth management such as managing portfolios of stocks and shares underwrite stock and shares, TFCs and other obligations provide retirement planning advise companies in merger and acquisition prepare feasibility, market or industry studies for companies provide discounting services e.g., discounting of instruments

However they are typically not allowed to take deposits from the general public and have to find other means of funding their operations such as issuing debt instruments.

REGULATION OF NBFCs :
The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a 'non-banking financial company' is defined as:- (i) a financial institution which is a company; (ii) a non banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. Under the Act, it is mandatory for a NBFC to get itself registered with the RBI as a deposit taking company. This registration authorises it to conduct its business as an NBFC. For the registration with the RBI, a company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution, should have a minimum net owned fund (NOF) of Rs 25 lakh (raised to Rs 200 lakh w.e.f April 21, 1999). The term 'NOF' means, owned funds (paid-up capital and free reserves,minus accumulated losses, deferred revenue expenditure and other intangible assets) less, (i) investments in shares of subsidiaries/companies in the same group/ all other NBFCs; and (ii) the book value of debentures/bonds/ outstanding loans and advances, including hire-purchase and lease finance made to, and deposits with, subsidiaries/ companies in the same group, in excess of 10% of the owned funds. The registration process involves submission of an application by the company in the prescribed format along with the necessary documents for RBI's consideration. If the bank is satisfied that the conditions enumerated in the RBI Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only those NBFCs holding a valid Certificate of Registration can accept/hold public deposits. The NBFCs accepting public deposits should comply with the NonBanking Financial Companies Acceptance of Public Deposits ( Reserve Bank) Directions, 1998, as issued by the bank. Some of the important regulations relating to acceptance of deposits by the NBFCs are: They are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. 7

They cannot accept deposits repayable on demand. They cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. They cannot offer gifts/incentives or any other additional benefit to the depositors. They should have minimum investment grade credit rating. Their deposits are not insured. The repayment of deposits by NBFCs is not guaranteed by RBI.

CLASSIFICATION OF NBFCs:
Depending upon their nature of activities, non- banking finance companies can be classified into the following categories: 1. Development finance institutions 2. Leasing companies 3. Investment companies 4. House finance companies 5. Venture capital companies 6. Discount & guarantee houses

Now, these NBFCs have been reclassified into three categories: Asset Finance Company (AFC) Investment Company (IC) and Loan Company (LC).

COMPANY PROFILE

COMPANY PROFILE SUNDARAM FINANCE:

INTRODUCTION : Sundaram Finance Ltd incorporated in 1954 has grown today into one of the most trusted financial services groups in India. Today, the activities of the group span savings products like Deposits and Mutual Funds, Car and Commercial Vehicle Finance, Insurance, Home Loans, Software Solutions, Business Process Outsourcing, Tyre Finance, Fleet Cards and Logistics Services. ABOUT THE COMPANY : Sundaram Finance Limited, which was incorporated in 1954 with the object of financing the purchase of commercial vehicles and passenger cars, has grown today into one of the most trusted financial services groups in India. Today, the activities of the Sundaram Finance Group span Commercial Vehicle Finance, Car Finance, Insurance, Asset Management, Home Loans, Equipment Finance, Fleet Card, Infotech Solutions, Business Process Outsourcing, Tyre Finance and Logistics Services. Sundaram Finance has a Nation-wide presence with over 400 branches, 0.65 million depositors and nearly 100,000 commercial vehicle and car finance customers.
HISTORY :

The Company was incorporated in 1954, with the object of financing the purchase of commercial vehicles and passenger cars. The company was started with a paid-up capital of Rs.2.00 Lakhs and later went public in 1972. The Company's shares were listed in the Madras Stock Exchange in 1972

Subsequently, the equity shares of the Company have been delisted from Madras Stock Exchange Limited (MSE) with effect from January 27, 2004, in accordance with SEBI (Delisting of Securities) Guidelines, 2003, for voluntary delisting. 10

Sundaram has grown today into one of the most trusted financial services groups in India. Today, the activities of the group span savings products like deposits and mutual funds, car and commercial vehicle finance, insurance, home loans, software solutions, business process outsourcing, tyre finance, fleet cards and logistics services. The strength of the Group lies in the quick completion of transactions, long association with transporters for generations and the intimate knowledge of the market and its nuances. The Group has a vast network of over 400 branches to cater to the financing needs of our customers. Sundaram Finance is one of the oldest and largest providers of finance for the acquisition of commercial vehicles of all makes.The commercial vehicle finance provided by it helps the small operators to acquire vehicles with minimum hassle and documentation. It provides customised financing options to suit the needs. Large fleet operators also find it easy to expand their fleet through the finance provided by the company. It also offers special schemes, supported by the manufacturers, where the rates are highly competitive. The finance schemes are easy to understand and without any hidden costs.

Products / Services Offered

Deposits Car Finance Commercial Vehicle Finance Equipment Finance Fleet Card Tyre Finance

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BOARD OF DIRECTORS : S.No 1 3 2 4 5 6 7 8 9 10 Name S Viji T T Srinivasaraghavan S Venkatesan S Narayanan A Rangaswami T R Seshadri S Ravindran S Prasad Arnoon Raman Srinivas Acharya Designation Chairman Managing Director Company Secretary Director Director Director Director Director Director Deputy Managing Director

The other Group Companies:

Lakshmi General Finance (since merged with SFL on 1/4/2005) Sundaram BNP Paribas Asset Management Sundaram BNP Paribas Home Finance Royal Sundaram Alliance Insurance Sundaram Infotech Solutions Sundaram Business Services Sundaram Finance Distribution Limited LGF Services Limited Infreight Logistics Solutions Limited

MILESTONES:

2008- Union de Credit pour le Batiment SA (UCB), a wholly owned subsidiary of BNP Paribas SA, France acquires 49.90% stake in Sundaram Home Finance Ltd from SFL. 2006- BNP Paribas Asset Management Group, France acquires 49.90 % stake in Sundaram Asset Management Company Ltd from SFL. 12

2005- Merger with LGF making SF Billion dollar Balance sheet NBFC 2001- Promoted Sundaram Business Services - BPO arm of Sundaram Finance 2000-Promoted Sundaram Infotech Solutions - Infotech division of Sundaram Finance 1999- Promoted Sundaram Home Finance Limited with equity participation from International Finance Corporation (IFC), Washington, and FMO Netherlands 1998- Promoted Fiat Sundaram Auto Finance Limited, a joint venture with Fidis S.p.A., Italy

AWARDS AND ACHIEVEMENTS :

Certificate of Commendation award by the Government of India under the scheme of Good Tax Payers. Second Best Tax Payer in the category of Private Sector Company for Assessment Year 1994-95 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu Rolling Trophy by Rotary Club of Madras South West for Best Employer-Employee Relationship for the year 1995-96. Best Tax Payer in the category of Private Sector Company for Assessment Year 199596 in Tamil Nadu Region, from the Income Tax Department, Tamil Nadu. Automan Award to Shri T S Santhanam, Chairman, from Motor India in 1998. Pioneering Service Award to Shri T S Santhanam Chairman, from Chennai Good Transport Association. Sarige Ratna Award to Shri T S Santhanam, Chairman, from the Bangalore City Lorry Transporting Agents Association (Regd). Most Valued Customer Award to Shri T S Santhanam Chairman, from the State Bank of India.

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PRODUCT PROFILE

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PRODUCT PROFILE
DEPOSITS : INTRODUCTION : A deposit is a current account or savings account, , at an institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank, and represent the amount owed by the bank to the customer. Some banks charge a fee for this service, while others may pay the customer interest on the funds deposited. DEPOSITS FEATURES IN SFL :

2.36 lakh depositors Total deposits aggregating over Rs 940 Cr.(Rs 9.40 Billion) Renewal rate for deposits is more than 80% SF has been rated MAAA by ICRA indicating Highest Safety 'State-of-the-Art' Information Technology One of the largest retail bases of deposits amongst NBFCs in India Industry Bench Mark for Depositor Servicing.

TYPES OF DEPOSITS : Fixed deposits Cumulative deposits

FIXED DEPOSITS It is a deposit where the Interest is being paid at Monthly/Quarterly intervals. CUMULATIVE DEPOSITS It is a deposit where the accrued interest is payable on Maturity along with the principal 15

Maturity options available On maturity the depositor can opt for: a. Payment of maturity amount b. Renewal of maturity amount. c. Renewal for lower multiple of Rs 1000/-(subject to a minimum balance of Rs 10000/- in the deposit account)

DEPOSIT INTEREST RATES (effective September 07, 2009) Fixed Deposits Term (months) 12 24 36 Monthly % p.a. * * 8.44% Quarterly % p.a. 7.50% 8.00% 8.50%

Cumulative Deposits

Term (months) 12 24 36

Rate (p.a at Quarterly rests) 7.50% 8.00% 8.50%

Maturity Value for Rs.10,000/Rs.10,770/Rs.11,720/Rs.12,870/Rs.1,000/Rs.1,077/Rs.1,172/Rs.1,287/-

Effective Yield % p.a. 7.70% 8.60% 9.57%

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PREMATURITY PAYMENT & LOANS Premature withdrawal The company reserves the right to allow, at its absolute discretion, withdrawal of deposit before maturity. Where a deposit is so allowed to be prematurely withdrawn the relative deposit receipt must be discharged by all the depositors in case of A or S/s deposit and by the first named depositor in case of N or S/s deposit. As per the Directions of RBI currently in force: Before 3 months from the date of deposit/renewal(Lock-in-period) After 3 months but before 6 months No repayment (Not applicable in case of premature repayment in the event of death of the depositor**) No Interest* The interest payable shall be 2 percent lower than the interest rate applicable to a depositor for the period for which the deposit has run or if no rate has been specified for that period, then 3 percent lower than the minimum rate at which deposits are accepted by the company*

After 6 months but before the date of maturity

LOAN ON DEPOSITS

The company may grant, at its sole discretion, loan against deposit, provided the deposit had run for a minimum period of 3 months upto 75% of the deposit amount, carrying interest @2% above the contracted rate (compounded at the same rest as of the TDR) payable on such deposits. The relative term deposit receipt and loan documents have to be signed by both/all the depositors in case of A or S/s accounts and by the first depositor in case of N or S/s accounts. Cheque/DD for loans will be drawn only in favour of the first depositor.

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OBJECTIVES OF THE STUDY

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OBJECTIVES OF THE STUDY PRIMARY OBJECTIVES: To analyze the satisfaction level of customers. To study the preference of customers.

SECONDARY OBJECTIVES: To identify the interest of customers To find ways to retain existing customers To find ways to attract new depositors To know the overall relationship of the company with its customers.

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RESEARCH METHODOLOGY

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METHODOLOGY
RESEARCH METHODOLOGY Type of study Source of Data Sample size Population for the study Research tools Research approach Sampling procedure Research instrument Place of study Type of study: The type of study is descriptive one. The major purpose of descriptive research is description of state of affairs, as it exists at present. The characteristic of descriptive research is that the researcher has no construal over the variables. Researchers can only present what has happened or what is happening. Here the researcher is attempting to find out the engagement level in relation or attrition rate that has happened already in the organization and the reasons for that research type will be descriptive only. Source of data : There are two methods of collecting data. They are primary and secondary data. (1) Primary Data: Those data that are collected for the first time and thus happen to be original in character. (2) Secondary Data: Those which have already collected by someone else and which have already been passed through statistical process. The data used for this research is the primary data collected by administering a structured questionnaire to the associate employees. Sample size: 100 customers were approached for collecting data. : 100 : Existing customers : Percentage analysis, Weighted Average , chi square : Survey : Convenient sampling : Questionnaire : Chennai : Descriptive Study : Primary, secondary

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Population size : Existing customers in the department of Deposits in Sundaram Finance were the total population. Sampling procedure: The sampling method adopted for the research was convenient sampling, which has been taken from the population for the study. Research tools: Weighted average, chi square test and percentage analysis have been used to verify the satisfaction level of the customers to the company. Research approach: The survey method was adopted for this study. Interviews were conducted where we used pre determined set of questions, which they had to respond. Research instrument: The data was collected using a questionnaire that consisted of rating scales Place of study: The place of study is Chennai. TOOLS AND TECHNIQUES USED FOR ANALYSIS Data analysis: In order to extract meaningful information from the data collected,the data analysis is carried out. The analysis is basically aimed at giving preference of association or difference between the various tables present in the research. Statistics: The term 'statistics' refers to a measured value based upon sample data. After collection of data, the questionnaires were scrutinized and facts coded and tabulated followed by analysis and interpretation using statistical techniques mentioned below Percentage Analysis Weighted average Chi square test Percentage analysis can be calculated as follows: First of all the frequency i.e. the total population is noted in a tabular column. Then the percentage is calculated by dividing each 22

PERCENTAGE ANALYSIS:

frequency with the total population and then multiplied by 100. Then the values are noted in the column as a percentage. In the percentage analysis percentage is calculated by multiplying the number of respondents into hundred and it is divided by the sample size. No of respondents Percentage analysis = Sample size CHARTS: 1. 2. Bar Diagram: This type of diagram is in the form of bars. The bars are drawn with the help of x-axis and y-axis. The bars are drawn in connection with the figures. Pie Diagram: The circle is divided into a number of sectors to represent the values of data. It is very useful as it helps to identify how the given data is distributed. WEIGHTED AVERAGE: The main aim of weighted average is to determine average of respondent to the scale formula wi*xi /xi wi= weightage xi= no. of respondents CHI SQUARE ANALYSIS : Chi-square is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis 2 = [ (Oi Ei)2 / Ei X 100

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LIMITATIONS OF THE STUDY

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RESEARCH LIMITATIONS

The main limitation of the study was the time factor. For the preparation of the questionnaire, lot of study and consultation was required. The customers might not reveal the reality. Convenient sampling has its own drawback because the researcher has to decide who should answer. Hence getting data from right person forms a limitation. During the survey respondents were in the company premises. The data provided by the respondents may change in future. This would have influenced their response. Hence this may reduce the accuracy of the study.

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ANALYSIS AND INTERPRETATION

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Table showing Gender of respondents :

SL.NO 1 2 GENDER MALE FEMALE NO. OF RESPONDENTS 72 28 PERCENTAGE 72 28

Chart showing Gender of respondents :

INFERENCE : From the above table it is clear that 72% of the respondents are males and
the remaining 28% are females.

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Table showing Age of respondents :

SL.NO 1 2 3 4 AGE <20 21- 40 41- 60 >61 NO. OF RESPONDENTS 0 14 49 37 PERCENTAGE 0 14 49 37

Chart showing Age of respondents :

INFERENCE : From the above table it is clear that 0 % of the respondents are below the age
of 20 , 14% of the respondents are in the age limits of 21- 40 , 49% are in the age limit of 41- 60 and 37% are above the age of 61.

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Table showing Years of Association of respondents with SFL :

SL.NO 1 2 3 4 5 YEARS OF ASSOCIATION <5 6- 10 11- 15 16- 20 >21 NO. OF RESPONDENTS 17 24 23 12 24 PERCENTAGE 17 24 23 12 24

Chart showing Years of Association of respondents with SFL :

INFERENCE : From the above table it is clear that 17% of the respondents are associated
with SFL for less than 5 years , 24% between the limit of 6- 10 years , 23% for 11- 15 years , 12% for 16-20 years and 24% for more than 21 years .

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Table showing purpose of investment of the respondents :

SL.NO 1 2 3 4 5 PURPOSE OF INVESTMENT BUSINESS EDUCATION MARRIAGE PERSONAL OTHERS NO. OF RESPONDENTS 2 8 11 55 24 PERCENTAGE 2 8 11 55 24

Chart showing purpose of investment of the respondents :

INFERENCE : From the above table it is clear that 2% of the respondents deposit in SFL
for business purposes , 8% for education , 11% for marriage , 55% for personal and remaining 20% for other reasons.

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Table showing the mode of knowledge of respondents about SFL :

SL.NO 1 2 3 4 5 KNOWLEDGE Newspapers Magazines Friends/ relatives Internet Others NO. OF RESPONDENTS 11 5 68 6 10 PERCENTAGE 11 5 68 6 10

Chart showing the mode of knowledge of respondents about SFL :

INFERENCE : From the above table it is clear that 68% of respondents come to know about
SFL from their friends and relatives , 11% through newspapers , 5% through magazines , 6% through internet and the remaining 10% through other modes.

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Table showing Satisfaction level of customers regarding Services provided by SFL SL. NO 1 2 3 4 5 SATISFACTION LEVEL Excellent Good Neutral Poor Very poor TOTAL NO. OF RESPONDENTS 52 27 8 6 7 100 PERCENTAGE 52 27 8 6 7

Chart showing Satisfaction level of customers regarding Services provided by SFL

Satisfaction level regarding Services

Poor, 6 neutral , 8 Excellent, 52 Good, 27 Very poor, 7

INFERENCE: From the above table it is clear that 52% of the customers rate their satisfaction level to be excellent , 27% feel it to be good , 8% are neutral to the question , 6% feel it to be poor and the remaining 7% feel it to be very poor.

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Table showing Satisfaction level of customers regarding Processing time in SFL

SL. NO 1 2 3 4 5

SATISFACTION LEVEL Excellent Good Neutral Poor Very poor TOTAL

NO. OF RESPONDENTS 56 32 9 2 1 100

PERCENTAGE 56 32 9 2 1

Chart showing Satisfaction level of customers regarding Processing time in SFL

Satisfation level regarding processing time
60 50 40 30 20 10 0 Excellent Good neutral Poor Very poor

INFERENCE: From the above table it is clear that 56% of the respondents rate their satisfaction level regarding processing time as excellent, 32% as good, 9% as neutral, 2% as poor and the remaining 1% as very poor .

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Table showing Overall relations of customers with SFL SL. NO 1 2 3 4 5 SATISFACTION LEVEL Excellent Good Neutral Poor Very poor TOTAL NO. OF RESPONDENTS 72 27 1 0 0 100 PERCENTAGE 72 27 1 0 0

Chart showing regarding Overall relations of customers with SFL

Overall relation with the company
80 70 60 50 40 30 20 10 0 Excellent Good neutral Poor Very poor

INFERENCE: From the above table it is clear that 72% of the respondents rate their overall satisfaction level with the company as excellent, 27% as good and 1% as neutral . There are no respondents who feel the overall relation with the company to be poor and very poor.

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Table showing Opinion of customers regarding Fair interest rates in SFL in comparison with its competitors SL. NO 1 2 3 4 5 OPINION OF RESPONDENTS Strongly agree Agree Neutral Disagree Strongly disagree TOTAL NO. OF RESPONDENTS 27 38 22 8 5 100 PERCENTAGE 27 38 22 8 5

Chart showing Opinion of customers regarding Fair interest rates in SFL in comparison with its competitors
Fair interest rates
Disagree 8% Strongly disagree 5% Strongly agree 27%

Neutral 22%

Agree 38%

INFERENCE: From the above table it is clear that 27% of the respondents strongly agree that the interest rates provided by SFL are fairer than that of their competitors , 38% agree to it , 22% are neutral, 8% disagree and the remaining 5% strongly disagree.

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Table showing opinion of customers regarding queries handled by SFL SL.NO 1 2 OPINION OF RESPONDENTS Yes No NO. OF RESPONDENTS 92 8 PERCENTAGE 92 8

Chart showing opinion of customers regarding queries handled by SFL

Queries handled by the department
100 90 80 70 60 50 40 30 20 10 0 Yes No

INFERENCE: From the above table it is clear that 92% of the respondents agree that the queries are duly handled by the department and the remaining 8% disagree to the question .

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Table showing Satisfaction level of customers regarding queries handled by SFL SL. NO 1 2 3 4 5 SATISFACTION LEVEL Very high High Neutral Low Very low TOTAL NO. OF RESPONDENTS 57 28 12 3 0 100 PERCENTAGE 57 28 12 3 0

Chart showing Satisfaction level of customers regarding queries handled by SFL

Satifaction level regarding queries handled

Very low Low Neutral High Very high 0

0 3 12 28 57 10 20 30 40 50 60

INFERENCE: From the above table it is clear that out of the 92% of the customers who agree that their queries are duly handled , 57% feel that the satisfaction level regarding the same is very high , 28% feel highly satisfied , 12% are neutral , 3% are less satisfied and there are no respondents who feel very low on satisfaction level.

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Table showing Preference of customers to deposit in SFL

SL.NO 1. 2.

PREFERENCE Yes No

NO. OF RESPONDENTS 75 25 TOTAL

PERCENTAGE 75 25 100

Chart showing Preference of customers to deposit in SFL

INFERENCE: From the above table it is clear that 75% of respondents prefer to deposit SFL even if banks offer higher rate of interest and remaining 25% do not prefer.

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Table showing Preference of customers to Recommend SFL to others SL.NO 1. 2. PREFERENCE Yes No NO. OF RESPONDENTS 90 10 TOTAL PERCENTAGE 90 10 100

Chart showing Preference of customers to deposit in SFL

INFERENCE: From the above table it is clear that 90% of the respondents would prefer to recommend others to deposit in SFL and the remaining 10% would not recommend.

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Chi square Test:

Relationship between Query handling and the overall relationship with the company
Overall relationship with the company Query handling Very good Good Neutral Poor Very poor No of respondents

Yes No Total

66 6 72

25 2 27

1 0 1

0 0 0

0 0 0

92 8 100

Null Hypothesis (HO): There is no significant relationship between Query Handling by the department and Customers Overall relationship with the company. Alternative Hypothesis (H1): There is significant relationship between Query Handling by the department and Customers Overall relationship with the company . .Hypothesis Calculation: O 66 6 25 2 1 0 0 0 0 0 E 66.24 5.76 24.84 2.16 0.92 0.08 0 0 0 0 O-E -0.24 0.24 0.16 -0.16 0.08 -0.08 0 0 0 0 (O-E)2 0.0576 0.0576 0.0256 0.0256 0.0064 0.0064 0 0 0 0 = (O-E)2 / E 0.0008 0.01 0.0007 0.0118 0.0069 0.08 0 0 0 0 = 0.1102 40

The calculated value is Degrees of freedom Level of Significance Tabulated value is

: : : :

= 0.1102 (r-1) (s-1) = (5-1) (2-1) = 4 5% 9.488

Inference: The calculated value of chi-square test is 0.1102 which is less than the tabulated value i.e. 9.488 therefore the Null hypothesis is accepted. This implies that there is no significant relationship between Query handling and the overall relationship with the company.

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Chi square Test:

Relationship between Years of association and Satisfaction level with regard to services

Years of association Excellent

Satisfaction level regarding services No of respondents Good Neutral Poor Very poor

<5 5-10 11-15 15-20 >20 Total

12 14 11 6 9 52

3 5 6 5 8 27

1 2 3 1 1 8

1 1 2 0 2 6

0 2 1 0 4 7

17 24 23 12 24 100

Null Hypothesis (HO): There is no significant relationship between Years of association and satisfaction level of customers regarding services provided by the company . Alternative Hypothesis (H1): There is significant relationship between Years of association and satisfaction level of customers regarding services provided by the company.

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Hypothesis Calculation: O 12 14 11 6 9 3 5 6 5 8 1 2 3 1 1 1 1 2 0 2 0 2 1 0 4 E 8.84 12.48 11.96 6.24 12.48 4.59 6.48 6.21 3.24 6.48 1.36 1.92 1.84 0.96 1.92 1.02 1.44 1.38 0.72 1.44 1.19 1.68 1.61 0.84 1.68 O-E 3.16 1.52 -0.96 -0.24 -3.48 -1.59 -1.48 -0.21 1.76 1.52 -0.36 0.08 1.16 0.04 -0.92 -0.02 -0.44 0.62 -0.72 0.56 -1.19 0.32 -0.61 -0.84 2.32 (O-E)2 9.9856 2.3104 0.9216 0.0576 12.1104 2.5281 2.1904 0.0441 3.0976 2.3104 0.1296 0.0064 1.3456 0.0016 0.8464 0.0004 0.1936 0.3844 0.5184 0.3136 1.4161 0.1024 0.3721 0.7056 5.3824 = (O-E)2 / E 1.1295 0.1851 0.0770 0.0092 0.9703 0.5507 0.3380 0.0071 0.9560 0.3565 0.0952 0.0033 0.7313 0.0016 0.4408 0.0003 0.1344 0.2785 0.72 0.2177 1.19 0.0609 0.2311 0.84 3.2038 12.7283

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The calculated value is Degrees of freedom Level of Significance Tabulated value is

: : : :

= 12.7283 (r-1) (s-1) = (5-1) (5-1) = 16 5% 26.296

Inference: The calculated value of chi-square test is 12.7283 which is less than the tabulated value i.e. 26.296, therefore the Null hypothesis is accepted. This implies that there is no significant relationship between Years of association and satisfaction level of customers regarding services provided by the company. It also denotes that the respondents who have 5 10 years of association are very much satisfied with the services when compared to respondents who have been associated for 15- 20 years.

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Chi square Test:

Relationship between the overall relationship with the company and preference to recommend
Overall relationship with the company Preference to recommend Very good Good Neutral Poor Very poor No of respondents

Yes No Total

66 6 72

24 3 27

0 1 1

0 0 0

0 0 0

90 10 100

Null Hypothesis (HO): There is no significant relationship between Customers Overall relationship with the company and their preference to recommend.

Alternative Hypothesis (H1): There is significant relationship between Customers Overall relationship with the company and their preference to recommend.

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Hypothesis Calculation: O 66 6 24 3 0 1 0 0 0 0 E 64.80 7.20 24.30 2.70 0.90 0.10 0 0 0 0 O-E 1.20 -1.20 -0.30 0.30 -0.90 0.90 0 0 0 0 (O-E)2 1.44 1.44 0.09 0.09 0.81 0.81 0 0 0 0 = (O-E)2 / E 0.0222 0.2000 0.0037 0.0333 0.9000 8.1000 0 0 0 0 = 9.2592

The calculated value is Degrees of freedom Level of Significance Tabulated value is

: : : :

= 9.2592 (r-1) (s-1) = (5-1) (2-1) = 4 5% 9.488

Inference: The calculated value of chi-square test is 9.2592 which is less than the tabulated value i.e. 9.488 therefore the Null hypothesis is accepted. This implies that there is no significant relationship between Customers Overall relationship with the company and their preference to recommend. .

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Chi square Test:

Relationship between Satisfaction level regarding interest rates and the opinion regarding deposit even if bank offers a higher rate of interest.
Opinion regarding interest rates Preference to deposit Strongly agree Agree Neutral Disagree Strongly disagree No of respondents

Yes No Total

21 6 27

30 8 38

17 5 22

4 4 8

3 2 5

75 25 100

Null Hypothesis (HO): There is no significant relationship between opinion regarding interest rates and preference to deposit even if bank offers a high rate of interest.

Alternative Hypothesis (H1): There is significant relationship between opinion regarding interest rates and preference to deposit even if bank offers a high rate of interest.

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Hypothesis Calculation: O 21 6 30 8 17 5 4 4 3 2 E 20.25 6.75 28.50 9.50 16.50 5.50 6.00 2.00 3.75 1.25 O-E 0.75 0.75 1.50 -1.50 0.50 -0.50 -2.00 2.00 -0.75 0.75 (O-E)2 0.5625 0.5625 2.25 2.25 0.25 0.25 4.00 4.00 0.5625 0.5625 = (O-E)2 / E 0.0277 0.0833 0.0789 0.2368 0.0151 0.0454 0.6666 2.0000 0.1500 0.4500 = 3.7538

The calculated value is Degrees of freedom Level of Significance Tabulated value is

: : : :

= 3.7538 (r-1) (s-1) = (5-1) (2-1) = 4 5% 9.488

Inference: The calculated value of chi-square test is 3.7538 which is less than the tabulated value i.e. 9.488 therefore the Null hypothesis is accepted. This implies that there is no significant relationship between opinion regarding interest rates and preference to deposit even if bank offers a high rate of interest.

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WEIGHTED AVERAGE TABLE Satisfaction level regarding services w 5 4 3 2 1 x 52 27 8 6 7 wx 260 108 24 12 7

Weighted Average = wx/w =411/100 = 4.11

Satisfaction level regarding processing time w 5 4 3 2 1 x 56 32 9 2 1 wx 280 128 27 4 1

Weighted Average = wx/w = 440/100 =4.40

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Satisfaction level regarding Interest rates in SFL w 5 4 3 2 1 x 27 38 22 8 5 wx 135 152 66 16 5

Weighted Average = wx/w = 374/100 =3.74

TABLE SHOWING COMPARATIVE WEIGHTED AVERAGE STATEMENT: Weighted average Service Processing time Interest rates 4.11 4.40 3.74 Rank 2 1 3

Interpretation: It is clear from the Weighted Average method that the customers give more weight for Processing time, the second preference goes to the services and finally to the Interest rates.

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FINDINGS

FINDINGS
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Out of 100 repondents 72% of the respondents are males and the remaining 28% are females. 0 % of the respondents are below the age of 20 , 14% of the respondents are in the age limits of 21- 40 , 49% are in the age limit of 41- 60 and 37% are above the age of 61. 17% of the respondents are associated with SFL for less than 5 years , 24% between the limit of 6- 10 years , 23% for 11- 15 years , 12% for 16-20 years and 24% for more than 21 years .

2% of the respondents deposit in SFL for business purposes , 8% for education , 11% for marriage , 55% for personal and remaining 20% for other reasons. 68% of respondents come to know about SFL through their friends and relatives , 11% through newspapers , 5% through magazines , 6% through internet and the remaining 10% through other modes.

52% of the customers rate their satisfaction level to be excellent , 27% feel it to be good , 8% are neutral to the question , 6% feel it to be poor and the remaining 7% feel it to be very poor.

56% of the respondents rate their satisfaction level regarding processing time as excellent, 32% as good, 9% as neutral, 2% as poor and the remaining 1% as very poor . 72% of the respondents rate their overall satisfaction level with the company as excellent, 27% as good and 1% as neutral . There are no respondents who feel the overall relation with the company to be poor and very poor.

27% of the respondents strongly agree that the interest rates provided by SFL are fairer than that of their competitors , 38% agree to it , 22% are neutral, 8% disagree and the remaining 5% strongly disagree.

92% of the respondents agree that the queries are duly handled by the department and the remaining 8% disagree to the question . 92% of the customers who agree that their queries are duly handled , 57% feel that the satisfaction level regarding the same is very high , 28% feel highly satisfied , 12% are neutral , 3% are less satisfied and there are no respondents who feel very low on satisfaction level.

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75% of respondents prefer to deposit SFL even if banks offer higher rate of interest and remaining 25% do not prefer. 90% of the respondents would prefer to recommend others to deposit in SFL and the remaining 10% would not recommend. Chi square test reveals that there is no significant relationship between query handling and the overall relationship with the company. Chi square test reveals that there is no significant relationship between Years of association and satisfaction level of customers regarding services provided by the company.

Chi square test reveals that there is no significant relationship between customers overall relationship with the company and their preference to recommend. Chi square test reveals that there is no significant relationship between opinion regarding interest rates and preference to deposit even if bank offers a high rate of interest.

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SUGGESTIONS

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SUGGESTIONS

The interest rates can be increased especially for senior citizens More schemes can be introduced for better investment options Promotional measures have to be undertaken to attract new customers Methods of disseminating information should be improved. Feedbacks from customers have to be encouraged. Since it is the industry bench mark in servicing it should take efforts to maintain its current position. Company should work towards improving the customer relationship management. One of the major complaints of customers included non availability of parking lot. Hence the company should take steps towards the same. Some measures have to be taken to convert a satisfied customer into a loyal customer.

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CONCLUSION

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CONCLUSION
In todays competitive market place its hard to differentiate the companys product and service offerings from the competition. The technology available to both company and its competitors has made it easier to duplicate each others products and services. Because of this, its difficult to rely on features alone to differentiate the company from the competition. Excellent customer service is one of the few ways to achieve a sustainable competitive advantage. It is important to consider that, only 4% of all customers with problems complain. The average customer with a problem eventually tells 9 other people. The value of satisfaction is often underestimated. An essential part of assessing satisfaction includes identifying dissatisfaction. Dissatisfied customers and prospects often hold the information you need to succeed. Understanding when and why dissatisfaction occurs helps implement changes to gain new customers and retain old ones. The company has taken steps to satisfy the customers but it does have scope for improvement in certain areas . If the issues are looked into, the company can maintain its current status of being the industry bench mark

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QUESTIONNAIRE Dear Respondent, I am Karthika. N doing my final project in Sundaram Finance Limited under the title Preference and satisfaction level of depositors in Sundaram Finance Limited .I require your kind cooperation in furnishing the details for the following questions. I assure you that the details given by you will be used for project purpose only. 1. Gender: (a)Male (b)Female

2.

Age

(a) <20 (b) 21-40 (c) 41-60 (d) >61

3.

Marital status :

(a)Single

(b) Married

4.

Educational level : (a)School

(b) Graduation

(c) Post Graduation

(d) Professional

(e) Others

5.

Profession : (a) Private sector

(b) Public Sector (c) Business

(d) IT sector (e) If others please specify

6.

How did you come to know of SFL ? 58

(a)Newspapers

(b) Magazines (c) Friends/ Relatives

(d) Internet

(e)If others, specify

7.

For how many years are you associated with SFL? (d) 16-20years (e) >21years

(a)<5years (b) 6-10years (c)11-15years

8.

Your scheme of deposit :

(a) Fixed

(b) Cumulative

(c) Both

9.

Type of deposit :

(a)Single

(b) Joint

(c) Both

10.

Term of deposit : (a)1year (b) 2 years (c) 3 years

11.

Reason for choosing this type of deposit : (a)Business (b)Education (c) Marriage (d) Personal

(e)If others specify :

12. o o o o

Rank these qualities according to your view regarding SFL with respect to deposits. Service Orientation towards customer satisfaction Reliability Reputation 59

13.

What is your level of satisfaction regarding services provided by SFL? (a)Excellent (b)Good (c)Neutral (d)Poor (e)Very poor

14.

Level of satisfaction regarding processing time in SFL when compared to banks : (a)Excellent (b)Good (c)Neutral (d)Poor (e)Very poor

15. The interest rates provided by SFL are satisfactory as compared to its competitors . (a) Strongly agree (e) Strongly disagree (b) Agree (c) Neutral (d) Disagree

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16. How would you rate the overall quality of your relationship with the company , considering all of your experiences with them? Would you say it is (a)Excellent (b)Good (c) Neutral (d)Poor (e)Very poor

17.Are your queries duly handled by the department ? (a) Yes (b) No

18. If yes how do you rate your satisfaction level ? (a) Very high (b) High (c) Neutral (d) Low (e) Very low

19. Will you prefer to deposit in SFL even if bank offers you higher rate of interest ? (a) Yes (b) No

20.Will you recommend SFL to others ? (a) Yes (b)No

21. Any suggestions :

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THANK YOU

BIBLIOGRAPHY
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BIBLIOGRAPHY

Boyd,Westfall,Stasch, Marketing Research, 7th edition ,1998, The marketing research

process ; page no. 63-127, 311-465. Kothari C.R, Research Methodology, New Age International Publishers, second revised edition 2006 pg.191 Kotler Philip, Marketing Management, 8 th edition, june, 1995, page no.172-197. Sharma, D.D. Marketing research, New Delhi,Sultan chand & sons, 1999 Sherlekar S.A. Marketing Management, Himalaya Publishing house, Mumbai 2000. Michael J.Baker, Marketing, Macmillan Press Ltd., London 1996.

WEBLIOGRAPHY
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 Google Search Engine (www.google.com) Yahoo Search Engine (www.yahoo.com) www.sundaramfinance.in

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