It also highlights the research findings on customer behavior patterns and their definition of good service, which will guide the bank in offering the same to the customers. Type of Research- Descriptive Type of sampling- Random Data Collection Method- Questionnaire Sample Size- 50 Analysis Techniques Used: Frequency Distribution Cross Tabulation Graphs and Charts Chapter I Introduction and overview of the Banking Industry Introduction Banking Industry A Shift from traditional to modern perspective Banks in India have traditionally offered mass banking products. Most common deposit products being Savings Bank, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans.
Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, Bankers cheque and internal transfer of funds. Developments in the industry In view of several developments in the 1990s, the entire banking products structure has undergone a major change. As part of the economic reforms, anking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Due to exposure to global trends after Information explosion led by Internet, customers both Individuals and Corporates are now demanding better services with more products from their banks. Financial market has turned into a buyer’s market. Banks are also changing with time and are trying to become one-stop financial supermarkets. Market focus is shifting from mass banking products to class banking with introduction of value added and customized products. Entry of foreign and private banks
A few foreign & private sector banks have already introduced customized banking products like Investment Advisory Services, Photo-credit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to market bonds and debentures, when allowed. Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as ‘private banking’ – to “high relationship – value” clients. Bank of the future The bank of the future has to be essentially a marketing organization that also sells banking products.
New distribution channels are being used; more & more banks are outsourcing services like disbursement and servicing of consumer loans, Credit card business. Direct Selling Agents of various Banks go out and sell their products. They make house calls to get the application form filled in properly and also take your passport-sized photo. Home banking has already become common, where you can order a draft or cash over phone/internet and have it delivered home. Products like debit cards, ATM cards, personal loans including consumer loans, housing loans and vehicle loans have been introduced by a number of banks. Corporates are also deriving benefit from the increased variety of products and competition among the banks. Recently, market has also seen major developments in treasury advisory services.
With the introduction of Rupee floating rates for deposits as well as advances, products like interest rate swaps and forward rate agreements for foreign exchange, risk management products like forward contract, option contract, and currency swap are offered by almost every authorized dealer bank in the market. Historical Overview Bank of Hindustan, set up in 1870, was the earliest Indian Bank. Banking in India on modern lines started with the establishment of three presidency banks under Presidency Bank’s act 1876 i. e. Bank of Calcutta, Bank of Bombay and Bank of Madras. In 1921, all presidency banks were amalgamated to form the Imperial Bank of India. Imperial bank carried out limited central banking functions also prior to establishment of RBI.
It engaged in all types of commercial banking business except dealing in foreign exchange. Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was constituted as an apex bank without major government ownership. Banking Regulations Act was passed in 1949. This regulation brought Reserve Bank of India under government control. Under the act, RBI got wide ranging powers for supervision & control of banks. The Act also vested licensing powers & the authority to conduct inspections in RBI. In 1955, RBI acquired control of the Imperial Bank of India, which was renamed as State Bank of India. In 1959, SBI took over control of eight private banks.
RBI was empowered in 1960, to force compulsory merger of weak banks with the strong ones. The total number of banks was thus reduced from 566 in 1951 to 85 in 1969. In July 1969, government nationalized 14 banks having deposits of Rs. 50 Crores & above. In 1980, government acquired 6 more banks with deposits of more than Rs. 200 Crores. Nationalization of banks was to make them play the role of catalytic agents for economic growth. The Narsimham Committee report suggested wide ranging reforms for the banking sector in 1992 to introduce internationally accepted banking practices. The amendment of Banking Regulation Act in 1993 saw the entry of new private sector banks.
Banking Segment in India functions under the umbrella of Reserve Bank of India – the regulatory, central bank. This segment broadly consists of: Commercial Banks, Co-operative Banks Need for the present study The entry of private players in the banking sector has resulted in increased competition. Banking is a service industry which deals with human beings and also the most valued material possession MONEY. The traditional ides of security no longer remains the factor: it is the service, courtesy, and promptness that count. Banking service and especially in the public sector is deteriorating because bank employees have ceased to treat customers with respect.
Research undertaken in this area show that before the entry of private sector in the banking industry the public sector was dominating the industry. But the entry of private banks and foreign banks affected the market share and profit margins of the public sector banks. Customer Service and self concept Marketers use self concept to design marketing strategies. The relationship between self concept and service/product availed/purchased can be explained as follows: ? An individual has a self concept which is formed through interaction with parents, peers and teachers. One’s self concept is valuable to oneself. ? Certain services utilized or products bought serve as social symbols and communicate social meaning about those who use them.
The use of such services or products as symbols communicates meaning to one’s self and to others causing an impact on the individual’s private and social self-concept. Certain services are therefore availed because they project a desired self-concept. Thus, if banks want to attract the customers in this competitive environment they must strive to satisfy the customers. Hence, methodology adopted for this research project explained in the following chapter will throw light on how the self concept of the customers can be understood and offer them services to satisfy the same. Chapter II Research Methodology Research Methodology 1. Research problem:
The problem to under study was the competition being face by Indian Bank from various private sector and other banks and understanding the customer service being provided at Indian Bank. 2. Specific Research Objectives: ? Find out the age structure and occupation structure of the customers at Indian Bank. ? Understand which type of accounts i. e. current, savings or term deposits account the respective customers prefer and why. ? Find out which are the factors that the respondents take into account while selecting a particular bank for service and the extent of contribution of each factor in the selection decision. ? Determining which type banking method would the customers find the most appropriate? ? Determining the satisfaction level of the customers as regards the various services offered by the banks. Finding out which type of bank the customers would like to bank with. 3. Hypotheses: There is no significant relationship between type of occupation and preferences for various banking services. Sub- Hypotheses: ? Convenience of location as an important variable in selecting a bank is not affected by the age of the customer. ? Occupation of the customer does not affect the following variables responsible in selection of bank: a) Interest rate on loans b) Interest rate on savings. c) Service charges d) Banking hours e) Banks reputation ? Occupation and gender do not affect the banking methods preferred such as inside the bank, ATM, phone banking, internet banking. Occupation and gender do not affect the satisfaction of the customer as regards various services offered such as information on various schemes, promptness of service etc. ? Occupation and gender do not affect the preference for the type of bank i. e. public or private. 4. Dependent and Independent Variables Used: Independent Variables o Age of the customer o Occupation of the customer o Gender of the customer Dependent Variables Extent of importance of o Convenience of location o Banking hours o Interest rate on savings o Interest rate on loans. Research Design: a. Study Design Descriptive study has been used in this case to study the customer behavior and preferences.
Preferences of customer can be best found out by surveys and questionnaires and hence experimental study does not suit this research. Descriptive study would be the most appropriate type of study considering the requirements of the research. b. Measurement and scaling design Nominal and ordinal scale has been used depending on the type of variable under study. c. Sampling Design A sample size of 50 respondents was selected. Since the main hypotheses seeks to determine the influence of type of occupation on the preference for various type s of services the sample was selected on this basis taking specified respondents from each type of occupation.
Also, gender was taken into consideration and it was decided to take 20 female respondents and 30 male respondents. d. Questionnaire A questionnaire containing questions covering various aspects of the research was then presented to the respondents to obtain their responses. Closed ended question s and Likert scale has been used in most of the question so that the respondents do not face any problems in answering the questions. The reason being that it has been seen that the respondents are reluctant to answer open ended questions. e. Methods Used for Analysis Data analysis has been done and the methods for analyzing data within the same were: Frequencies ? Cross Tabulation ? Graphs 6. Primary and Secondary Data Sources: Primary Data: As mentioned above survey method through self-administered questionnaires has been used to obtain the primary data. These questionnaires were given to the existing customers of Indian Bank to obtain their responses as regards the services provided by the banks and also to know their preferences. This survey was conducted to avoid the misinterpretation of information obtained through secondary data which can be misleading at times. Also, primary data through such survey provides first hand information, which helps in forming a correct opinion about the ituation. Secondary Data: For the purpose of secondary data the internet was used as a tool and information was obtained from the various websites the list of which is annexed to the report. Also. Certain research was undertaken by Indian bank as a part of their mass campaigning programme, the results of which were also used as an informative tool. Before going further with the report into the findings and data analysis let us look at what Indian Bank is all about and the services that it provides to its customers. That will help us to understand the customer responses which come up in the latter part of the report in a better manner. Chapter III
All you want to know about Indian Bank Indian Bank A glorious beginning 1907, August 15, A significant date. An unforgettable day in the life of every Indian. Born on the same day of Indian Independence, 40 years ahead, Indian Bank, a premier Bank owned by the Government of India, is a symbol of service to the customer with more than nine decades of rich tradition. Well conceived need based Deposit and loan schemes Working as trusted partner, Indian bank has a host of “Well-conceived, Need-based Deposit schemes to suit all needs. All the schemes are designed to give safety, security, liquidity and excellent returns. A premier bank owned by the Government of India Serving the nation with a team of 22400 dedicated staff ? Global deposits rose to Rs. 24039 Crores as on 31. 3. 2002 with domestic deposits rising by Rs. 2,460 Crores to reach Rs. 22659 Crores Global Net advances increased to Rs 10,908 Crores as on 31. 3. 2002 ? It has 1377 Branches spread all over India. International Presence Overseas branches in Singapore and Colombo including a Foreign Currency Banking Unit at Colombo . 229 Overseas Correspondent banks in 69 countries. Diversified banking activities – 3 Subsidiary companies ? Indbank Merchant Banking Services Ltd ? IndBank Housing Ltd. ? IndFund Management Ltd A front runner in specialized banking 95 Forex Authorized branches inclusive of 4 Specialized Overseas Branches at Chennai Bangalore, Mumbai, and Kochi exclusively for handling forex transactions arising out of Export, Import, Remittances and Non Resident Indian business . 9 specialized NRI Branches exclusively for servicing Non-Resident Indians. ? 2 Industrial Finance Branches catering exclusively to industrial units . 3 Small Scale Industries Branches extending finance exclusively to SSI units. Leadership in Rural Development o Loan products like Kisan Card, Kisan Bike Scheme, Yuva Kisan Vidya Nidhi Yojana to meet diverse credit needs of farmers. Provision of technical assistance and project reports in Agriculture to entrepreneurs o Through Agricultural Consultancy & Technical Services and Specialized Agricultural Finance branches to finance High Tech Agricultural Projects.
A pioneer in introducing the latest technology in Banking 529 Computerized Branches covering 73. 65 % of our total business. 75 Automated Teller Machines offering 24 hours service ATMs at Mumbai connected to SWADHAN under SPNS so that the cardholders can operate through any of the ATMs in Mumbai connected to SWADHAN. 109 branches provided with Computer Based Communication Systems Reuter Screen, Telerate, Reuter Monitor Dealing System provided at all Overseas Branches. INDIAN BANK with over 90 years of standing in the financial market with the reputation for excellent customer service has entered into a strategic tie-up with HDFC Standard Life Insurance Company Ltd. the first in the private sector to receive the Certificate of Registration for foray into Life Insurance business for distribution of latter’s insurance products. Deposit Schemes to Suit Customers Indian Bank has many deposit schemes tailored to suit the needs of its customers, both individuals and organizations. The facilities of nomination, loan against term deposit and foreclosure of term deposit are available. Interest paid on domestic term deposits, except Recurring Deposit, is subject to Tax deduction at source, as per rules from time to time. Fixed Deposits Fixed Deposits are accepted for a minimum period of 15 days and a maximum period of 120 months. Interest is paid every quarter.
Monthly interest can also be paid at a discounted rate. Interest payable on Fixed Deposit can also be transferred to Savings Bank or Current Account of the customer. Unit Deposit This scheme offers higher returns and liquidity too. Unit Deposits are Fixed Deposits – with a difference: part withdrawals are allowed. Unit Deposits are accepted in units of Rs. 1, 000 for periods of one year and above upto a maximum of 120 months. Part withdrawals are allowed in multiples of Rs. 1,000 in these accounts. On part withdrawals, interest will be paid on the amounts so withdrawn as per the rules applicable for foreclosure of deposits. The balance amount of units will continue to earn nterest at the contracted rate. Facility Deposit Indian Bank’s “user friendly” Facility deposit combines the advantage of fixed deposit with the flexibility of an Overdraft against the Deposit. A fixed deposit or re-investment deposit, with a minimum of Rs. 10000/- or more, in multiples of Rs. 1,000 is to be made for a minimum period of 1 year and a maximum period of 3 years. A cheque book will be issued to the customer to enable the depositor to draw at any time upto 90% of the initial Deposit as Overdraft, at a rate 2% over the interest rate payable on Fixed Deposits plus interest tax or at rates as prescribed the Bank from time to time. Cash Certificates
Indian Bank’s Cash Certificate is another pleasant proposition similar to Reinvestment Plan Deposit. The maturity amounts are in lump sum in multiples of Rs. 100. Cash Certificates are accepted for a minimum period of 6 months and a maximum period of 120 months Recurring Deposit Recurring Deposit is a scheme drawn specially to suit the needs of the individuals, particularly the salaried class, small traders etc. , to plan their savings to meet specific demands. Recurring Deposit account can be opened with a monthly installment of mere Rs. 5 or in multiples thereof, for a period of 6 months upto a maximum of 60 months. The depositor will get the installment amount along with the interest on the due date.
Vidhya Nidhi Deposit In order to help the customers, particularly the middle income group like salaried class, small traders etc. , to plan their savings and to make a financial provision well in advance to meet the future expenditure like the educational expenses of their children, specific purposes like investments, payment of annual installments, a unique scheme called “Vidhya Nidhi Deposit” has been launched in our Bank. Under the scheme, deposits are accepted every month for specified periods like 36 months, 48 months or 60 months and the maturity value is paid to the customer in 3, 4 or 5 annual installments respectively with further interest.
The customer is having an option to choose the amount of annual installments required by him and the plan period. Stock Invest Stockinvests are non-negotiable instruments, which are widely used for making applications for investment in Primary Capital Market. The investors till the allotment of shares earn attractive interest. The stockinvests are valid for 4 months. Alternatively the customers can also avail the Stockinvest facility under Savings Bank. The procedure for obtention of Stockinvest is quite simple and any of the authorized branches will be rendering the services. Savings Bank Savings Bank accounts are suitable for inculcating the habit of savings among the customers.
Savings Bank accounts can be opened in the name of individuals, singly or jointly, minors of 14 years of age. Minimum balances are prescribed for ordinary as well as cheque operated Savings Bank accounts. Interest is credited to the account every half-yearly viz. as on 31st January and 31st July. There is no ceiling on the maximum balance earning interest on Savings Bank accounts. The accounts can be operated by Withdrawal slips or by Cheques. 50 withdrawals per half year are permitted free of charge. 3 Cheque books of 20 leaves each are issued to the customer free of charge in a year. Standing instructions are accepted for payment of insurance premium, school fees, etc. , at a very nominal charge.
Local as well as outstation cheques, dividend warrants, interest warrants and pension payable to the account-holder are collected. Health plus savings A Scheme designed to take care of customer’s health. Maintain a minimum balance of Rs. 5000 in this special account. A Free family Health plus Savings Card that gives you upto 30% discount on Master Medical Check-up and on other diagnostic services at selected leading hospitals (The card must be renewed every year). Customers get ATM Card……….. as a Special Gift. Current Account Current accounts can be opened in the names of individuals (singly or jointly), proprietory concerns, partnerships, companies etc. Minimum balance is prescribed on this type of account and the account is operated by cheque.
Though no interest is payable on this type of account, there is no restriction on the number of transactions. The Bank undertakes collection of bills, cheques, hundies, pension bills etc. , as per instructions of the customers, subject to levy of a nominal service charge. Standing instructions of the customers are also accepted. Advantage Account An innovative Current Account perfectly made to suit your high value business. Advantage Account offers a wide range of customer friendly services with a whole lot of following benefits: ? Faster collection of outstation cheques and Free ATM card for individuals ? National clearing between major metro centers Free computerized statement of account ?
Extended business hours for non cash transaction at computerized branches ? Nominal penal charges in case of non maintenance of balance ? Standing instructions/stop payment instruction carried out free of cost ? Acceptance of cheques for collection till closure of office hours ? Supply of personalized cheque books CASH MANAGEMENT SERVICES (CMS) Under the CMS, two types of scheme will be offered: a) Cheque drawn on other centers, which are tendered at the centre where the customers maintain his account. b) Cheque presented at the drawee centre and the funds credited at our customer’s centre. Target group: -Corporate/Commercial Customers having good track record. The highlights of the scheme are: – I.
CMS eliminates the inherent delays of a traditional funds transfer mechanisms and reduces interest costs. II. CMS enhances liquidity and ensures optimum planning and utilization of funds In addition to faster access to funds CMS improves reconciliation CMS ENSURES: ? Speedy collection of outstation cheques ? Customer has the option to avail credit before realization of cheque ? Cheques can be deposited as the drawee centers ? Cheques can be collected from the doorstep of customers through exclusive couriers ? As on the date 19 centers are identified for the introduction of the scheme LOAN SCHEME: Indian bank has launched new credit products in a big way .
The Customer Loan, Educational Loans, Home Loans, Trade Finance, Vehicle Loans, Loans for Salaried Customers and special Schemes for Professionals. These Schemes are tailor- made to suit the credit requirements of individuals, students, traders and professionals. Deposits Interest Rates on Domestic Term Deposits | | | | | | |Below |Rs. 15 lakhs to |Rs. 2 Crore | |Period |Rs. 15 lakhs |Rs. 2 Crores And above | |7 days to 14 days |- – |4. 50 | | |15 days to 20 days |5. 00 |5. 25 | | |30 days to 45 days |5. 00 |5. 25 | | |46 days to 90 days |6. 00 |6. 25 |As per schedule | |91 days to 179 days |6. 25 |6. 0 |Provided by HO to | |180 days to 364 days |6. 50 |6. 75 |Circle offices/ | |1 year only |7. 25 |7. 50 |Branches from time | |>1 year to < 2 years |7. 25 |7. 25 |To time | |2 years to < 3 years |7. 25 |7. 25 | | |3 years and above |7. 50 |7. 0 | | Marketing strategies for the circle offices and branches Marketing holds the key for achieving organizational goals. Hence it becomes imperative that careful planning is required to adopt suitable strategies at all levels in marketing our products and services. We discuss below the major strategies to be adopted in marketing at the Circle Offices and Branches. At the circle offices Publishing success stories of personnel: The achievements of good performers published in the circle’s newsletter. This will motivate all the staff members to perform better Conducting customer service survey: Whenever
Circle Heads or other senior functionaries of the circle visit the branch they should make it a point to meet some of the customers either directly or over phone and ascertain the feed back on the quality of the service rendered by the branch. Quick redressal of customer’s complaints: Though our aim is to have no complaints from any quarter, sometimes complaints do prop up due to deficiency in services, etc. On such occasions Customer service Cell at the circle Office should act very fast and redress the customer’s grievance expeditiously. Providing basic facilities: Proper sitting arrangements, drinking water facilities should be provided to the customers to make their waiting time comfortable.
Giving targets for all the staff: All the staff members should be given suitable targets for bringing new customers in to our fold. The efforts of the high performers should be appreciated and suitably. Mass Campaigning: One of the landmark in marketing strategies was the mass campaigning that Indian bank had undertaken, the first of is kind wherein the staff Malad, Kalyan and Matunga branches visited households in areas such as Malad, Kalyan and Matunga and promoted the services and offerings that the bank provides. They also asked these people about their opinion of the bank and what they expect from the bank. This scheme was then adopted by other branches also. ATM SERVICES Facilities at the Automated Teller Machine
Round-the-clock Cash Withdrawals with our conveniently located 24 hour ATMs at 75 key locations Cash and Cheque Deposits – 24 hours. Just deposit it at our ATMs and it will be credited into the account on the next working day. Similarly cheques too can also be deposited. Balance enquiry & statement of account – Absolutely free. ATM screen will reveal the balance in the account. A mini statement comprising last few transactions can also be obtained from the ATM. Cheque Book delivery – Drop in your request for a cheque book at the ATM and it will be delivered to you. Fabulous Discounts – Amazing discounts against your purchases at department stores, textile shops, jewellery stores, food outlets, electronic shops, theme parks…!!!
IB Cash card – Our 24 hour Hi-powered, value-added ATM card viz. , IB Cash card, just the size of a visiting card, is the passport to the facilities available with ATM. It brilliantly complements your ambitions, offering more value, more excitement, more service, more extras. Attending to Customer Complaints Banking Ombudsman Scheme, 2002 The Ombudsman Scheme seeks to establish a system of expeditious and inexpensive resolution to customer complaints. Any person whose grievance against a Bank is not resolved to his satisfaction by the Bank can approach the Banking Ombudsman if his complaint pertains to any of the matters specified in the scheme.
Banking Ombudsmen have been authorized to look into the complaints concerning a. Deficiency in banking service b. Sanction of loans and advances in so far as they relate to non-observance of the Reserve Bank directives on interest rates, delays in sanction or non-observance of prescribed time schedule for disposal of loan application or non observance of any other directions or instructions of the RBI, etc. and other matters as may be specified by the RBI. Ombudsman would make recommendations after listening to both parties. In case the recommendation made by the Banking Ombudsman is not accepted by either of the parties, Banking Ombudsman proceeds to make an award.
The scheme is applicable to all scheduled commercial banks having business in India and scheduled primary co-operative banks. After understanding the various deposit and loan schemes and various other facilities offered by Indian Bank we would like to know whether the customers are satisfied with these services or not. These are covered in the next chapter dealing with each variable and the hypothesis regarding the same. Chapter IV Findings, Data Analysis and Interpretation Data Analysis and Interpretation Figure 1 From the above chart we can see that the percentage of members in the age group more than 50 is the highest followed by the age group 41-50 yrs.
Thus, we can say that higher the age more is the involvement of individual sin such activities because in such age groups people are more responsible. Distribution of Customers According To Occupation Figure 2 Thus we can see that the share of businessman as customers is more as compared to other categories being at 34% because of the numerous transactions they have to undertake for their business. Service class people and professional are almost at par in respect of their share of customers. Student’s category has the lowest contribution mainly because they are not much involved in such activities. Type of Account Preferred and Occupation Figure 3 The preference of businessmen for current account is the highest and they are the only people who opt for current account.
Other people do not opt for current, as there is no interest on current account; hence they opt for savings account to earn good return on their deposits. Also preference for term deposits is high among those other than businessmen. Extent of importance of following factors to customers in selecting a bank Convenient Location: Figure 4 We can make out from this graph that the higher the age group higher is the preference for convenient location of the bank i. e. customers in the higher age bracket prefer the bank to be located at a place which is easily accessible and preferably closer to their residence or office. Banking Hours and Occupation Figure 5
We can make out that the importance of banking hours is more for businessmen and service people whereas professionals and students do not attach much importance to the same. A few respondents in each category also feel that they are not at all important e. g. many service class people feel that banking hours do not play an important role in selecting a bank. For businessmen they are important, as they need to undertake emergency transactions at any time, which calls for flexible banking hours. Service Charges and Occupation Figure 6 Service charges are most important for students because they have to think about their spending habits, as earnings are less or nil.
Again service class attaches a lot of importance to service charges i. e. they prefer lower service charges. But for businessmen and professionals quick services are more important than lower service charges. Occupation and Interest Rate on Savings Figure 7 we can see that interest rate on savings is more important for service class people and professionals and others whereas not important for businessmen. This is because as seen ea businessmen have current account and not savings account. As service class people and professionals have savings account so for them interest rate is very important, as they want good return on their deposits. Occupation And Interest Rate on Loan Figure 8 e can see that interest rate on loan is more important for businessmen rather than other categories. It is also important for service people and somewhat important for professionals. Maximum loans availed by business class people. It is not at all important for students, as they don’t avail of loans for their personal purpose. Banks Reputation and Occupation Figure 9 All of service class feels that banks reputation is most important factor. Almost 50% businessmen feel that it is definitely important. Professionals also attach a lot of importance to banks reputation whereas for students it is not at all important which shows the casual attitude of the students.
Thus, the overall view is that banks reputation is a very important factor in selecting a bank holding 70% importance. Gender and Banks Reputation Figure 10 It is clear that females attach more importance to banks reputation then the males. This reflects the nature of females to enquire about the reputation of a bank before selecting it. Although males also attach importance to the reputation of the bank with a share of 60% opting for the same the percentage of women relying on reputation is at 90%. Preference for banking methods Occupation and Inside the Bank Figure 11 In each category of the members prefer going inside the bank to avail of bank’s services. This is because it is a traditional method and people are very much used to it.
But it can be seen that 92% of service people give more importance to services inside the bank whereas students in contrast are willing to try out new methods. Occupation and preference for ATM Figure 12 Businessmen and professionals are more inclined towards ATM’s because of their need for money at odd hours and so their preference for ATM’s is more. Service people are also beginning o identify this trend and hence more than 50% like ATM’s and others are willing to try. As the need of the students for higher amounts of money is not very high their preference for ATM’s is not so strong Gender and Preference for Phone Banking Figure 13 The overall preference for phone banking is low with only 20% respondents within each gender actually opting for it whereas 43% males and 60% females dislike it.
The reason for this could be that it is a new concept and hence not gained much acceptability. However some males are at least willing to try but women strongly despise phone banking as compared to men. This means that banks having more of women customers should think twice before going in for phone banking and take their suggestions before implementing the same. Occupation and Preference for Internet Banking Figure 14 More than 50% respondents in each occupational category do not like internet banking with the share being highest in professionals followed by service people. 52% businessmen do not prefer it but others are willing to try reflecting the adventurous attitude of businessmen. 3% students also like it as the students being young are well versed with the internet Gender and Advice Given By Bank On Maturity of Deposits Figure 15 Both males and females are satisfied with advice given by bank on maturity of deposits. This means that the bank is doing very well on thus account performing to the satisfaction of its customers. Guiding the customers at each and every stage is very important for a bank so that it does not lose its customers. Indian Bank by advising the customers on maturity of deposits is taking efficient steps to satisfy the existing customers and thus retain them. Satisfaction Of Customers As Regards Various Services Occupation and Information on Various Schemes Figure 16
Overall 80% of customers are somewhat satisfied with the information bank gives on the various schemes whereas 5% businessmen and 7% service are a little dissatisfied with it. As only 16% customers are very satisfied this is very less. Occupation And Promptness of Service Figure 17 Excepting 26% businessmen none of the respondents are extremely satisfied as regards promptness of service of the bank. All professionals, students and service people are somewhat satisfied in this regard but a high percentage if respondents in other types of occupation are somewhat dissatisfied with the bank in this regard. Thus, we can see that most of the customers are expecting quicker services from the bank. Gender and Guidance in Carrying Out Transaction Figure 18 0% of the overall customers are satisfied with the guidance that the bank gives on carrying of various transactions but the share of females for the same is very low. We can also see that 25% females are dissatisfied in this regard which implies that females expect more and proper guidance in carrying out various transactions maybe due to lack of awareness about the same or due to the need for perfection. Hence, the bank must see to it that the staff gives proper direction and guidance to all the customers and especially females in carrying out various activities relating to banking so that the ultimate goal, of customer satisfaction is achieved. Acknowledgement of Complaints and Gender Figure 19 Sometimes the customers might have some grievances regarding the services f the bank and the bank must readily acknowledge these complaints. Although 10% respondents in both categories are somewhat dissatisfied with the way their complaints are handled majority of the females and 53% males are somewhat satisfied whereas 36% males are very satisfied which may be attributed to the Banking Ombudsman Scheme which has been very instrumental in resolving customer complaints. Courtesy of Staff and Gender Figure 20 No problems can be encountered in this area as overall majority of the respondents i. e. 82% are somewhat satisfied with the courtesy of the staff. Customers who are very satisfied form a very small percentage at 8%.
Also, customers who are dissatisfied are low in share at 10% with the percentage of dissatisfied females being higher as compared to men. This shows that it is very difficult to please women and they expect very courteous treatment. Statement of Accounts and Occupation Figure 21 Most of the customers feel that the bank gives statement of accounts on time and that view is strongly supported by professionals as all of them feel the same. However 36% businessmen feel that the bank does not give it on time. Preferred Type of Bank and Occupation Figure 22 The overall preference for public and private bank is equal with that for private sector bank being a little more.
The preference for public bank is highest among businessmen whereas professional and service class prefers more of private banks and students give equal preference to public, private and foreign banks. This shows the increasing competition to public sector banks from the private sector. After going through this analysis of the findings we will now move on to the recommendations to improve the services of the bank, covered in next chapter. Chapter V Recommendations and Conclusion Recommendations After analyzing the behavior of different type of customers on the basis of their occupation I would like to make the following recommendations to Indian Bank so as to improve their services and provide augmented benefits to their customers. 1. Undertake Aggressive Marketing
Although Indian Bank is taking many steps to market its products to the customers and make them aware about the same its efforts are less as compared to private banks that are constantly on the hunt for new customers. Hence, Indian Bank should undertake aggressive marketing tactics so as to reach out to potential customers and convert them into permanent customers. 2. Shed the Traditional Mindset The way f functioning of Indian bank is traditional it being a private sector bank whereas in the current scenario people are looking out for quicker services ad professional attitude. Indian Bank should take this factor into account. 3. Customer Relationship Management At present it is the age of customer concept of marketing i. e. ives the customers what they want and not what you want to give them. By taking to the customers or through any other form of interaction the bank should find out the loopholes if any in its service which the customers feel are worthwhile and thus try to remove them so as to work towards utmost satisfaction of the customers. Customer education programmes, wherein bank’s employees should also be involved , may consist of advertisements, informative literature interfaces, seminars etc. with a view to making the customer empathetical to bank’s limitation and predicaments and appreciative of bank’s efforts to improve customer service. 4. Home loans
Budget 2003-04 has retained tax benefits on home loans and so the preference of people or home loans will increase. Also, it has been observed that home loans are the least risky for banks also. So the bank should try to concentrate on this aspect and try to increase its loan portfolio in this area. This can be done by participating in home loan meals that take place at regular intervals and also by tying up with various builders. 5. Handling Customer Complaints Complaint book with perforated copies in each set may be introduced, so designed as to instantly provide an acknowledgement to the customer and intimation to the controlling office. Periodical meetings should be held with customers and their representative bodies.
Special attention must be bestowed on complaint prone areas. 7. Relationship Banking The modern bank cannot rely on its branch network alone. Customers are now demanding new, more convenient, delivery systems. And services such as Internet banking have a dual role to the customer. They provide traditional banking services, but additionally offer much greater access to information on their account status and on the bank’s many other services. To do this banks have to create information layers, which can be accessed both by the bank staff as well as by the customers. Today banking in India has become an unpopular industry, much blamed for problems of its own making.
The use of interactive electronic links via the Internet could go a long way in providing the customers with greater level of information about both their own financial situation and about the services offered by the bank. Relation oriented Bank Conclusion All these things may appear very simple but their implementation requires a lot of patience and conscious efforts. But if the banks really want to have a competitive edge over other banks they must constantly be on the run to advantage of every opportunity that comes their way. Do you remember the story about “The Little Engine That could”—the tiny train that had to pull the load of toys up the mountain for the children on the other side?
He made it up by chanting “I think I can. I think I can. ” Well, so can you. This is the mantra that Indian Bank must adopt to retain its customers as well as make new customers and inculcate healthy banking habits in our citizens. Questionnaire 1. Name 2. To which type of the following age group do you belong Less than 18 18-30 Yrs 31-40 Yrs 40-50 Yrs More than 50 3. Occupation Business Professional student other 4. Which type of bank account do you prefer? Current account Savings account Term deposit 5. To what extent were the following items important in selecting the bank mentioned?
Bank items Definitely Somewhat Not at all Important Important Important Convenience In location Interest rate On savings Interest rate On loans Good service 6. Which of the following banking method would you prefer to use? Banking methods Definitely like Somewhat like Dislike Using Using Using Inside the bank ATM Phone banking Internet banking 7. In case of term deposits does the bank advise you on maturity of your deposits? Yes No Sometimes 8.
Are the pass books and statement of accounts given on time? Yes No Sometimes 9. What is your satisfaction on regards to the services of your bank? 10. Any special services offered by the bank? 11. Given any option which type of bank would you prefer? Public sector Private bank Foreign bank Co operative bank 12. Any suggestions for improved bank services Thank You Annexure 2 Scheduled Public Sector Banks in India State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore State Bank of Maharashtra
Allahabad Bank Andhra Bank Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian overseas Bank Oriental Bank of Commerce Punjab National bank Punjab and Sind bank Syndicate bank Union Bank of India UCO bank Vijaya Bank Annexure 3 Scheduled private Sector Banks in India Bank of Madura Ltd Bank of Rajasthan Ltd Bareilly Corporation bank Ltd City union Bank ltd Development credit Bank Ltd Ganesh Bank of Kurundwad Ltd Karnataka Bank Ltd Lord Krishna Bank Ltd Nainital bank Ltd SBI Comm & Int Bank Ltd Tamilnad Mercantile bank Ltd The Benares State Bank ltd The Catholic Syrian Bank Ltd The Dhanalakshmi Bank ltd The Federal bank Ltd
The Jammu & Kashmir bank Ltd The Karur Vysya Bank ltd The Lakshmi Vilas Bank Ltd The Nedungadi bank Ltd The Ratnakar Bank Ltd The Sangli bank Ltd The South Indian bank Ltd The United Western bank Ltd The Vysya Bank ltd New Private Sector banks Bank of Punjab Centurion Bank ltd Global trust Bank Ltd HDFC Bank Ltd ICICI Banking corporation Ltd IDBI Bank ltd IndusInd Bank Ltd Times Bank ltd UTI bank Ltd Annexure 4 Scheduled Foreign Banks American Express Bank Ltd ANZ Grindlays Bank Plc Bank Of America NT & SA Bank Of Tokyo Ltd Banquc Nationale de Paris Barclays bank Plc Citi Bank N. C Deutsche Bank A. G Hong Kong and Shanghai Banking Corporation Standard Chartered bank
The Chase Manhattan Bank Ltd Dresdner bank A. G Annexure 5 Bibliography Primary data Indian Bank Secondary Data ? Brochures and Magazines of Indian Bank ? Consumer Behaviour In Indian context By K. K. Srivastava and Sujata Khandai Internet ? www. banknetindia. com ? www. timesofmoney. com ? www. indian-bank. org ? www. google. com ? www. alltheweb. com ? www. rbi. org ? www. indiainfoline. com ———————– Service Brand Image Customer Self Concept Relationship Between self concept and brand image Behavior Seek products/ services and brands that improve/ maintain self concept Satisfaction Service and infrastructure contributes to desired self concept