INTRODUCTION

INTRODUCTION
The modern concepts of marketing realized that measuring consumer needs or behavior was not enough. CONSU !" S#T$S%$C#T$ON should be the core and then the correct perception on which marketing policies of our organization should be built. & anagement must think of itself not as producing products but as providing customer creating value satisfaction. Customer satisfaction has a vital role in sustaining and improving hold on the market. 'rief descriptions about the various measures that are needed to improve customer orientation have also been dealt with. Consider the fact toda(s customer face a plenitude of products in ever( categor(. Customer will be having high and raising e)pectation of *ualit( and service. $n the face of their vast choices+ the customer will gravitate to the offering that the best meet their individual needs and e)pectation. The( will bu( one of the bases of their perception value. Therefore it is not surprising that toda(,s winning companies are those succeed best in satisf(ing indeed delighting their target customer. The( pa( e)treme attention to *ualit( and service to meeting and even e)ceeding customer e)pectation. The( complete vigorousl( and at the co-operated smartl( with their strateg( partners in their suppl( and distribution chain. The( pursue efficientl( and (et are responsible and fle)ible. Customer satisfaction is the outcome felt b( bu(ers who have e)pectation. Customers are satisfied when their e)pectation are met and delighted when their e)pectations are e)ceeded. Satisfied customers remain lo(al longer+ bu( more+ and are less sensitive and talk favorable about the compan(. %rom this it is clear that the satisfied customer will be less sensitive towards the fluctuating price and offensive marketing t(picall( cost more than defensive marketing+

because it re*uires much effort and cost to induce satisfied customers to switch awa( from their current suppliers. .e should also consider the fact that &the cost of attracting a new customer ma( be five times the cost of keeping the current customer happ(. Therefore the companies are intending in developing stronger bones and lo(alt( with their customers.

DEFINITION OF CUSTOMER SATISFACTION

Customer satisfaction refers to the e)tent to which customers are happ( with the products and services provided b( a business. Customer satisfaction levels can be measured using surve( techni*ues and *uestionnaires

DEFINITIONS:
Definition 1: Customer satisfaction is e*uivalent to making sure that product and service performance meets customer e)pectations.

Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is e*ual to or greater than his/her e)pectation.

Definition 3: Customer satisfaction occurs when ac*uisition of products and/or services provides a minimum negative departure from e)pectations when compared with other ac*uisitions. 0aining high levels of customer satisfaction is ver( important to a business because satisfaction customers are most likel( to be lo(al and to make repeat orders and to use a wide range of services offered b( a business There are man( factors which lead in high levels of customer satisfaction including. 1roducts and services which are customer focused and hence provide high levels of value for mone(. .hat is clear about customer satisfaction is that customers are most likel( to appreciate the goods and services that the( bu( if the( are made to feel special. This occurs when the( feel that the products and services that the( bu( have been speciall( produced for them or for people like them.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingl( becoming a vital business issue as organization realize the benefits of Customer "elationship anagement 2C" 3 for providing effective customer service. 1rofessionals working within customer focused business or those running call centres or help desks+ need to keep informed about the latest customer satisfaction techni*ues for running a valuable customer service function. %rom small customer service departments to large call centres+ the importance of developing a valued relationship with customers using C" is essential to support customer and long-term business growth.

What Do Custome s Want!

'efore we begin to create tools to measure the level of satisfaction+ it is important to develop a clear understanding of what e)actl( the customer wants. .e need to know what our customers e)pect from the products and services we provide. Customer e)pectations have two t(pes 4 !)pressed $mplied

E"# esse$ Customer !)pectations are those re*uirements that are written down in the contract and agreed upon b( both parties for e)ample+ product specifications and deliver( re*uirements. Supplier,s performance against these re*uirements is most of the items directl( measurable. Im#%ie$ Customer !)pectations are not written or spoken but are the ones the customer would 5e)pect, the supplier to meet nevertheless. %or e)ample+ a customer would e)pect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. There are man( reasons wh( customer e)pectations are likel( to change overtime. 1rocess improvements+ advent of new technolog(+ changes in customer,s priorities+ improved *ualit( of service provided b( competitors are 6ust a few e)amples. The customer is alwa(s right. Supplier,s 6ob is to provide the customer what he/she wants+ when he/she wants it. Customer satisfaction is customer,s perception that a supplier has met or e)ceeded their e)pectations.

3&3 W'AT CONSTITUTES SATISFACTION! 4

.e cannot create customer satisfaction 6ust b( meeting customer,s re*uirements full( because these have to be met in an( case. 7owever failing short is certain to create dissatisfaction Ma(o Att i)utes of *ustome satisfa*tion in )an+in, in$ust Can )e summa i.e$ as: 1roduct *ualit( 1remium Outflow "eturn on $nvestment Services "esponsiveness and abilit( to resolve complaints and re6ect reports. Overall communication+ accessibilit( and attitude. W'AT ARE T'E TOO/S! Customer e)pectations can be identified using various methods such as8 1eriodic contract reviews arket research Telephonic interviews 1ersonal visits .arrant( records $nformal discussions Satisfaction surve(s 9epending upon the customer base and available resources+ we can choose a method that is most effective in measuring the customer,s perceptions. The purpose of the e)ercise is to identif( priorities for improvements. .e must develop a method or combination of methods that helps to continuall( improve service.

3&0 CUSTOMER SATISFACTION SUR1E2S

%ormal surve( has emerged as b( far the best method of periodicall( the customer satisfaction. The surve( are not marketing tools but an information:gaining tool. !nough homework needs to be before embarking on the actual surve(. This includes8 9efining Ob6ectives of the Surve( 9esign Surve( approach 9evelop *uestionnaires and forms #dminister Surve( 2!mail+ Telephone or 1ost3 ethod of compiling data and anal(sing the findings %ormat of the report to present the findings There is no point in asking irrelevant *uestions on a customer satisfaction *uestionnaire. The basic purpose is to find out what we are doing right or wrong. .here is the scope for improvement+ where do we stand vis-;-vis other suppliers. 7ow we can serve the customer better< A *ustome satisfa*tion measu ement su 3e- shou%$ at %east I$entif- the fo%%o4in, o)(e*ti3es: $mportance to customers 2Customers priorities3 Customer,s perception of supplier,s performance =our performance relative to customer,s priorities. 5 io ities fo im# o3ement Surve( forms should be eas( to fill out with minimum amount of time and efforts on customer,s part. The( should be designed to activel( encourage the customer to complete the *uestions. =et the( must provide accurate data should also be sufficientl( reliable for management decision making. This can be achieved b( incorporating ob6ective t(pe *uestions where customer has to &rate on scale of sa( > to >?. %or repeated surve(s+ (ou could provide the rating that was previousl( accorded b( the customer. This works like a reference point for the customer. Space should alwa(s be provided for the customers own opinions this enables them to state an( additional re*uirements or report an( shortcomings that are not covered b( the ob6ective *uestions. Normall(+ we deal various personnel at various levels in the customer,s organization :the bu(er+ user+ receiving inspector+ finance and purchase person etc. surve(ing a number of respondents for each customer gives a complete perspective of customer satisfaction. $t ma( be

necessar( to device a different *uestionnaire for each of them. "espondents must be provided a wa( to e)press the importance the( attach to various surve( parameters. "espondents should be asked to give a weighting factor+ again on a rating scale of sa(+ > to >?+ for each re*uirement. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans b( comparing the performance rating 2scores3 with importance rating 2weighing3.

NEED FOR T'E STUD2

NEED FOR T'E STUD2

To identif( the satisfaction level of customer towards different t(pes of service attributes+ b( identif(ing their critical factors. To stud( about the bank about their customized products and services+ according to the consumer,s needed. To stud( the e)perience and e)pectations of the e)isting customers. To stud( to improve the current standards of services. To stud( the scope of introducing new t(pes of services. To stud( about the business tactics followed to stand against the competitors.

STATEMENT OF T'E 5ROB/EM

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STATEMENT OF T'E 5ROB/EM

This Stud( will help us to understand the consumer,s satisfaction about banking services and products. This stud( will help banks to Understand+ how a consumer selects+ organizes and interprets the @ualit( of service and product offered b( banks. The market is more aware and realistic about investment and returns %rom financial products. $n this background this stud( tries to anal(ze The customer satisfaction towards banking services in general and $O' $n particular.

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INDUSTR2 5ROFI/E

INTRODUCTION TO BAN6IN7 IN INDIA

The banking section will navigate through all the aspects of the 'anking S(stem in $ndia. $t will discuss upon the matters with the birth of the banking concept in the countr( to new pla(ers adding their names in the industr( in coming few (ears.

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The banker of all banks+ "eserve 'ank of $ndia 2"'$3+ the $ndian 'anks #ssociation 2$'#3 and top A? banks like $9'$+ 7S'C+ $C$C$+ #'N # "O+etc. has been well defined under three separate heads with one page dedicated to each bank. 7owever+ in the introduction part of the entire banking cosmos+ the past has been well e)plained under three different heads namel(8 B 7istor( of 'anking in $ndia B Nationalization of 'anks in $ndia B Scheduled Commercial 'anks in $ndia The first deals with the histor( part since the dawn of banking s(stem in $ndia. 0overnment took ma6or step in the >CDC to put the banking sector into s(stems and it nationalized >E private banks in the mentioned (ear. This has been elaborated in Nationalization 'anks in $ndia. The last but not the least e)plains about the scheduled and unscheduled banks in $ndia. Section EA 2D3 2a3 of "'$ #ct >CFE la(s down the condition of scheduled commercial banks. The description along with a list of scheduled commercial banks are given on this page

'ISTOR2 OF BAN6IN7 IN INDIA

.ithout a sound and effective banking s(stem in $ndia it cannot have a health( econom(. The banking s(stem of $ndia should not onl( be hassle free but it should be able to meet new challenges posed b( the technolog( and an( other e)ternal and internal factors. %or the past three decades $ndia,s banking s(stem has several outstanding achievements to its credit. The most striking is its e)tensive reach. $t is no longer confined to onl( metropolitansor cosmopolitans in $ndia. $n fact+ $ndian banking s(stem has reached even to the remote corners of the countr(. This is one of the main reasons of $ndiaGs growth process. 0overnment,s regular polic( for $ndian bank since >CDC has paid richdividends with the nationalization of >E ma6or private banks of $ndia. Not long ago+ an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own mone(. Toda(+ he has a choice. 0one are da(s when the most efficient bank transferred mone( from one branch to other in two da(s. Now it is simple as instant messaging or dials a pizza. one( has become the order of the da(. The first bank in $ndia+ though conservative+ was established in >HID.%rom >HID till toda(+ the 6ourne( of $ndian 'anking S(stem can be segregated into three distinct phases. The( are as mentioned below8

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B !arl( phase from >HID to >CDC of $ndian 'anks B Nationalization of $ndian 'anks and up to >CC> prior to $ndian banking sector "eforms. B New phase of $ndian 'anking S(stem with the advent of $ndian %inancial J 'anking Sector "eforms after >CC>. To make this write-up more e)planator(+ $ prefi) the scenario as 1hase $+ 1hase $$ and 1hase $$$. 5hase I The 0eneral 'ank of $ndia was set up in the (ear >HID. Ne)t came 'ank of 7industan and 'engal 'ank. The !ast $ndia Compan( established 'ank of 'engal 2>I?C3+ 'ank of 'omba( 2>IE?3 and 'ank of adras 2>IEF3 as independent units and called it 1residenc( 'anks. These three banks were amalgamated in >CA? and $mperial 'ank of $ndia was established which started as private shareholders banks+ mostl( !uropeans shareholders. $N >IDK #llahabad 'ank was established and first time e)clusivel( b( $ndians+ 1un6ab National 'ank Ltd. was set up in >ICE with head*uarters at Lahore. 'etween >C?D and >C>F+ 'ank of $ndia+ Central 'ank of $ndia+ 'ank of 'aroda+ Canara 'ank+ $ndian 'ank+ and 'ank of (sore were set up. "eserve 'ank of $ndia came in >CFK.9uring the first phase the growth was ver( slow and banks also e)perienced periodic failures between >C>F and >CEI. There were appro)imatel( >>?? banks+ mostl( small. To streamline the functioning and activities of commercial banks+ the 0overnment of $ndia came up with The 'anking Companies #ct+ >CEC which was later changed to 'anking "egulation #ct >CEC as per amending #ct of >CDK 2#ct No. AFof >CDK3. "eserve 'ank of $ndia was vested with e)tensive powers for the supervision of banking in $ndia as the Central 'anking #uthorit(. 9uring those da(,s public has lesser confidence in the banks. #s an aftermath deposit mobilization was slow. #breast of it the savings bank facilit( provided b( the 1ostal department was comparativel( safer. 5hase II 0overnment took ma6or steps in this $ndian 'anking Sector "eform after independence. $n >CKK+ it nationalized $mperial 'ank of $ndia with e)tensive banking facilities on a large scale especiall( in rural and semi-urban areas. $t formed State 'ank of $ndia to act as the principal agent of "'$ and to handle banking transactions of the Union and State 0overnments all over the countr(. Seven banks forming subsidiar( of State 'ank of $ndia was nationalized in >CD? on >Cth Mul(+ >CDC+ ma6or process of nationalization was carried out. $t was the effort of the then 1rime inister of $ndia+ rs. $ndira 0andhi. >E ma6or commercial banks in the countr( were nationalized. Second phase of nationalization $ndian 'anking Sector "eform was carried out in oreover+ funds were largel( given to traders.

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>CI? with seven more banks. This step brought I?N of the banking segment in $ndia under 0overnment ownership. The following are the steps taken b( the 0overnment of $ndia to "egulate 'anking $nstitutions in the Countr(8 B >CEC8 !nactment of 'anking "egulation #ct. B >CKK8 Nationalization of State 'ank of $ndia. B >CKC8 Nationalization of S'$ subsidiaries. B >CD>8 $nsurance cover e)tended to deposits. B >CDC8 Nationalization of >E ma6or banks. B >CH>8 Creation of credit guarantee corporation. B >CHK8 Creation of regional rural banks. B >CI?8 Nationalization of seven banks with deposits over A?? corers. #fter the nationalization of banks+ the branches of the public sector bank $ndia rose to appro)imatel( I??N in deposits and advances took a huge 6ump b( >>+???N.'anking in the sunshine of 0overnment ownership gave the public implicit faith and immense confidence about the sustainabilit( of these institutions. 5hase III This phase has introduced man( more products and facilities in the banking sector in its reforms measure. $n >CC>+ under the chairmanship of banks and their #T Narasimha+ a committee was set up b( his name which worked for the liberalization of banking practices. The countr( is flooded with foreign stations. !fforts are being put to give a satisfactor( service to customers. 1hone banking and net banking is introduced. The entire s(stem became more convenient and swift. Time is given more importance than mone(. The financial s(stem of $ndia has shown a great deal of resilience. $t is sheltered from an( crisis triggered b( an( e)ternal macroeconomics shock as other !ast #sian Countries suffered. This is all due to a fle)ible e)change rate regime+ the foreign reserves are high+ the capital account is not (et full( convertible+ and banks and their customers have limited foreign e)change e)posure.

SC'EDU/ED COMMERCIA/ BAN6S IN INDIA

The commercial banking structure in $ndia consists of8

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B Scheduled Commercial 'anks in $ndia B Unscheduled 'anks in $ndia Scheduled 'anks in $ndia constitute those banks which have been included in the Second Schedule of "eserve 'ank of $ndia 2"'$3 #ct+ >CFE. "'$ in turn includes onl( those banks in this schedule which satisf( the criteria laid down vide section EA 2D3 2a3 of the #ct. #s on F?th Mune+ >CCC+ there were F?? scheduled banks in $ndia having a total network of DE+C>I branches. The scheduled commercial banks in $ndia comprise of State bank of $ndia and its associates 2I3+ nationalized banks 2>C3+ foreign banks 2EK3+ private sector banks 2FA3+ co-operative banks and regional rural banks. &Scheduled banks in $ndiaO means the State 'ank of $ndia constituted under the State 'ank of $ndia #ct+ >CKK 2AF of >CKK3+ a subsidiar( bank as defined in the State 'ank of $ndia 2Subsidiar( 'anks3 #ct+>CKC 2FI of >CKC3+ a corresponding new bank constituted under section F of the 'anking Companies 2#c*uisition and Transfer of Undertakings3 #ct+ >CH? 2K of >CH?3+ or under section F of the 'anking Companies 2#c*uisition and Transfer of Undertakings3 #ct+ >CI? 2E? of>CI?3+ or an( other bank being a bank included in the Second Schedule to the "eserve 'ank of $ndia #ct+ >CFE 2A of >CFE3+ but does not include a cooperative bank. &on-scheduled bank in $ndiaO means a banking compan( as defined in clause 2c3 of section K of the 'anking "egulation #ct+ >CEC 2>? of>CEC3+ which is not a scheduled bankO.

The fo%%o4in, a e the S*he$u%e$ Ban+s in In$ia 85u)%i* Se*to 9:

B State 'ank of $ndia B State 'ank of 'ikaner and Maipur B State 'ank of 7(derabad B State 'ank of $ndore B State 'ank of (sore

B State 'ank of Saurashtra B State 'ank of Travancore B #ndhra 'ank B #llahabad 'ank B 'ank of 'aroda B 'ank of $ndia

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B 'ank of

aharashtra

B Canara 'ank B Central 'ank of $ndia B Corporation 'ank B 9ena 'ank B $ndian Overseas 'ank B $ndian 'ank B Oriental 'ank of Commerce B 1un6ab National 'ank B 1un6ab and Sind 'ank B S(ndicate 'ank B Union 'ank of $ndia B United 'ank of $ndia B UCO 'ank B Pi6a(a 'ank The fo%%o4in, a e the S*he$u%e$ Ban+s in In$ia 85 i3ate Se*to 9: B $N0 P(s(a 'ank Ltd B #)is 'ank Ltd B $ndus 'ank Ltd B $C$C$ 'ank Ltd B South $ndian 'ank B 79%C 'ank Ltd B Centurion 'ank Ltd B 'ank of 1un6ab Ltd B $9'$ 'ank Ltd The fo%%o4in, a e the S*he$u%e$ Fo ei,n Ban+s in In$ia:

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B #merican !)press 'ank Ltd. B #NQ 0rid la(s 'ank 1lc. B 'ank of #merica NT J S# B 'ank of Tok(o Ltd. B 'an*uc Nationals de 1aris B 'arcla(s 'ank 1lc. B Citi 'ank N.C. B 9eutsche 'ank #.0. B 7ong Rong and Shanghai 'anking Corporation B Standard Chartered 'ank. B The Chase anhattan 'ank Ltd.

B 9resdner 'ank #0.

BAN6IN7 SER1ICES IN INDIA

.ith (ears+ banks are also adding services to their customers. The $ndian banking industr( is passing through a phase of customers market. The customers have more choices in choosing their banks. # competition has been established within the banks operating in $ndia. .ith stiff competition and advancement of technolog(+ the services provided b( banks have become more eas( and convenient. The past da(s are witness to an hour wait before withdrawing cash from accounts or a Che*ue from north of the countr( being cleared in one month in the south. Thissection of banking deals with the latest discover( in the banking instruments along with the polished version of their old s(stems.

BAN6 ACCOUNT
The most common and first service of the banking sector. There are different t(pes of bank account in $ndian banking sector. The bank accounts are as follows8 B 'ank Savings #ccount - 'ank Savings #ccount can be opened for eligible person / persons and certain organizations / agencies 2as advised b( "eserve 'ank of $ndia 2"'$3 from time to time3

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B 'ank Current #ccount - 'ank Current #ccount can be opened b( individuals / partnership firms / 1rivate and 1ublic Limited Companies / 7U%s / Specified #ssociates / Societies / Trusts+ etc. B 'ank Term 9eposits #ccount - 'ank Term 9eposits #ccount can be opened b( individuals / partnership firms / 1rivate and 1ublic Limited Companies / 7U%s/ Specified #ssociates / Societies /Trusts+ etc. B 'ank #ccount Online - .ith the advancement of technolog(+ the ma6or banks in the public and private sector has facilitatedtheir customer to open bank account online. 'ank account online is registered through a 1C with an internet connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account.

5/ASTIC MONE2
Credit cards in $ndia are gaining ground. # number of banks in $ndia are encouraging people to use credit card. The concept of credit card was used in >CK? with the launch of charge cards in US# b( 9iners Club and #merican !)press. Credit card however became more popular with use of magnetic strip in >CH?.Credit card in $ndia became popular with the introduction of foreign banks in the countr(. Credit cards are financial instruments+ which can be used more than once to borrow mone( or bu( products and services on credit. 'asicall( banks+ retail stores and other businesses issue these.

/OANS
'anks in $ndia with the wa( of development have become eas( to appl( in loan market. The following loans are given b( almost all the banks in the countr(8 B 1ersonal Loan B Car Loan or #uto Loan B Loan against Shares B 7ome Loan B !ducation Loan or Student Loan

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$n 1ersonal Loan+ one can get a sanctioned loan amount between "sAK+ ??? to >?+ ??+??? depending upon the profile of person appl(ing for the loan. S'$+ $C$C$+ 79%C+ 7S'C are some of the leading banks which deals in 1ersonal Loan. #lmost all the banks have 6umped into the market of car loan which is also sometimes termed as auto loan. $t is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the e)tent ofIKN upon the e)-showroom price of the car with some simple paperwork,s and a small amount of processing fee. Loan against shares is ver( eas( to get because li*uid guarantee is involved in it.7ome loan is the latest craze in the banking sector with the development of the infrastructure. Now people are moving to township outside the cit(. ore number of townships is coming up

to meet the demand of Ghouse for allG. The "'$ has also liberalized the interest rates of home loan in order to match the repa(ment capabilit( of even middle class people. #lmost all banks are dealing in home loan. #gainS'$+ $C$C$+ 79%C+ 7S'C are leading. The educational loan+ rather to be termed as student loan+ is a goodbanking product for the mass. Students with certain academic brilliance+ stud(ing at recognized colleges/universities in $ndia and abroad are generall( given education loan / student loan so as to meet the e)penses on tuition fee/ maintenance cost/books and other e*uipment.

MONE2 TRANSFER
'eside lending and depositing mone(+ banks also carr( mone( from one corner of the globe to another. This act of banks is known as transfer of mone(. This activit( is termed as remittance business. 'anks generall( issue 9emand 9rafts+ 'ankerGs Che*ue+ one( Orders or other such instruments for transferring the mone(. This is at(pe of Telegraphic Transfer or Tele Cash Orders. $t has been onl( a couple of (ears that banks have 6umped into themone( transfer businesses in $ndia. The international mone( transfer market grew C.FN from A??F to A??E i.e. from USSA>F bn. to USSAFFbn. in A??E. !conomists sa( that the market of mone( transfer will further grow at a cumulative >A.>N average growth rate throughA??C.

FUTURE OF BAN6IN7 IN INDIA

# health( banking s(stem is essential for an( econom( striving to achieve good growth and (et remain stable in an increasingl( global business environment. The $ndian banking s(stem has

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witnessed a series of reforms in the past+ like deregulation of interest rates+ dilution of government stake in 1S's+ and increased participation of private sector banks. $t has also undergone rapid changes+ reflecting a number of underl(ing developments. This trend has created new competitive threats as well as new opportunities. This paper aims to foresee ma6or future banking trends+ based on these past and current movements in the market. 0iven the competitive market+ banking will 2and to a great e)tent alread( has3 become a process of choice and convenience. The future of banking would be in terms of integration. This is alread( becoming realit( with new-age banks such as =!S 'ank+ and others too adopting single-1$N. 0eograph( will no longer be an inhibitor. Technolog( will prove to be the differentiator in the short-term but the d(namic environment will soon lead to its saturation and what will ultimatel( bethe ke( to success will be a better relationship management.

O1ER1IEW
$f one were to sa( that the future of banking in $ndia is bright+ it would be a gross understatement. .ith the growing competition and convergence of services+ the customers 2(ou and $3 stand onl( to benefit more to sa( the least. #t the same time+ emergence of a multitude of comple) financial instruments is foreseen in the near future 2the trend is visible in the current scenario too3 which is bound to confuse the customer more than ever unless she spends hours 2ma(be da(s3 to understand the same. 7ence+ $ see a growing trend towards the importance of relationship managers. The success 2or failure3 of an( bank would depend not onl( on tapping the untapped customer base 2from other departments of the same bank+ customers of related similar institutions or those of the competitors3 but also on the effectiveness in retaining the e)isting base. $ndia has witness to a sea change in the wa( banking is done in the past more than two decades. Since >CC>+ the "eserve 'ank of $ndia 2"'$3 took steps to reform the $ndian banking s(stem at a measured pace so that growth could be achieved without e)posure to an( macro environment and s(stemic risks. Some of these initiatives were deregulation of interest rates+ dilution of the government stake in public sector banks 21S's3+ guidelines being issued for risk management+ asset classification+ and provisioning. Technolog( has made tremendous impact in banking. 5Anywhere banking, and Anytime banking, have become a realit(. The financial sector now operates in a more competitive environment than before and intermediates relativel( large volume of international financial flows. $nthe wake of greater financial deregulation and global financialintegration+ the biggest challenge before the regulators is of avoiding instabilit( in the financial s(stem.

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RIS6 MANA7EMENT
The future of banking will undoubtedl( rest on risk managementd(namics. Onl( those banks that have efficient risk managements(stem will survive in the market in the long run. The effectivemanagement of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. #lthough capital serves the purpose of meeting une)pected losses+ capital is not a substitute for inade*uate decontrol or risk management s(stems. Coming (ears will witness banks striving to create sound internal control or risk management processes. .ith the focus on regulation and risk management in the 'asel %ramework gaining prominence+ the post-'asel $$ era will belong to the 'anks that manage their risks effectivel(. The banks with proper risk management s(stems would not onl( gain competitive advantage b( wa( of lower regulator( capital charge+ but would also add value to the shareholders and other stakeholders b( properl( pricing their services+ ade*uate provisioning and maintaining a robust financial structure.

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BAN6 5ROFI/E
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BAN6 5ROFI/E
!stablished on >?th %ebruar( >CFH b( r. . Ct. . Chidambaram Chett(ar+ leader in banking+ insurance and industr( areas+ $ndian Overseas 'ank 2$O'3 had the twin aims of attaining specialization in overseas banking as well as foreign e)change business. $O' has alwa(s been talked about for its e)cellent presence and services. #t the time of inauguration+ $O' started its business in three branches at the same time. The branches were located at Raraikudi and Chennai in $ndia and "angoon in (anmar+ erstwhile 'urma. $t had a branch in 1enang also.

9uring the time when $ndia became an independent nation+ $ndian Overseas 'ank was running FI branches in $ndia and H overseas branches. #t that point of time+ the 9eposits of the bank was "s.D.DE corer and #dvances was "s.F.AF corer $O' received the status of nationalized bank in the (ear >CDC along with other >F ma6or banks. '( this time+ it had >CK branches. 0raduall( between the periods >CDC and >CCA+ $O' started spreading its wings in foreign destinations like Colombo and Seoul. $O' was the first bank to receive $SO C??> Certification from 9et Norske Perities 29NP3+ Netherlands in the month of September >CCC for its Computer 1olic( and 1lanning 9epartment. 'esides+ in its 6ourne(+ it has won man( awards and accolades too. These include8

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N#'#"9Gs award A???-A??> for creating ma)imum number of credit links of Self 7elp 0roups in comparison to all the other 'anks in Tamil Nadu

'est #ward under the categor( of 'anking Technolog( in the (ear A??>

BRANC' 5ROFI/E 8IOB :CAT'EDRA/9

Cathedral is also one of the important branches in Chennai. $n cathedral branch has more than AI??? account is there and also issuing pension like Chennai co-operation+ 1ort trust+ 0ovt. 7ospitals+ railwa(,s+ TC+ 1.9+ Tele-communication department etc. this service is offering from FK(ears ago. Totall( FA staff working for that the branch+ %oreign e)change dealing is done here. #ll t(pe of loans is provided here. Locker+ 99+ 'C+ gold coins etc.+ are the facilities given here. Cathedral branch is C'S t(pe.

WOR6IN7 'OURS;
$n $ndian overseas bank working hours is from C8F?# to E8F?1 .

'EAD OFFICE;
The head office of the $ndian overseas bank is located at mount road near spencer plaza

ADDRESS;
NoT HDF #nna salai+ Chennai 4 D????A

INDIAN O1ERSEAS BAN6;

$O' is a one of the ma6or bank based in Chennai with over >E?? domestic branch J D branches in #broad. The bank was established in >CFH to encourage overseas banking for foreign e)change operation. The bank started simultaneousl( with F branches there areT

26

$ndian overseas bank Chennai $ndian overseas bank "angoon $ndian overseas bank Singapore $ndian overseas bank 'urma $ndian overseas bank ala(sia

$ndian overseas bank Srilanka $ndian overseas bank Sumatra

$n the (ear A??? $.O.' engaged $ndia in $1O which brought the 0ovt. share in the bank down to HKN.

IOB Inte nationa% e"#ansion

>CFH-FI8 #s mentioned above+ $O' was international from its inception with branches $ndian Overseas 'ank "angoon+ $ndian Overseas 'ank 1enang+ and $ndian Overseas 'ank Singapore.

>CE>8 $O' opened a branch in of the war.

ala(a that presumabl( closed almost immediatel( because

>CED8 $O' opened a branch in Ce(lon. >CEH8 $O' opened a branch in 'angkok and re-opened others. >CEI8 United Commercial 'ank 2see below3 opened a branch in >CEC8 $O' opened a branch in 'angkok. >CDF8 The 'urmese government nationalized $O'Gs branch in "angoon. >CHF8 $O'+ $ndian 'ank and United Commercial 'ank established United #sian 'ank 'erhad. 2$ndian 'ank had been operating in compl( with the 'anking Law in ala(sia since >CE> and United Commercial 'ank Limited had been operating there since >CEI.3 The banks set up United #sian to ala(sia+ which prohibited foreign government banks from operating in the countr(. #lso+ $O' and si) $ndian private banks established 'harat Overseas 'ank as a Chennai-based private bank to take over $O'Gs 'angkok branch. The 'aharat Overseas 'ank is the onl( private bank that the "eserve 'ank of $ndia has permitted to have a branch outside $ndia. The ownership was8 $ndian Overseas 'ank 2F?N3+ 'ank of ala(a.

27

"a6asthan 2>DN3+ P(s(a 'ank 2>E.DDN3+ %ederal 'ank 2>C.DHN3+ Rarur P(s(a 'ank 2>?N3+ South $ndian 'ank 2>?N3 and Rarnataka 'ank 2I.DHN3. 'harat Overseas serves the $ndian ethnic communit( in Thailand.

>CHH8 $O' opened a branch in Seoul. >CC>8 'ank of Commerce 2'C'3+ a 'erhad. ala(sian bank+ ac*uired United #sian 'ank 2U#'3. $n ala(sia to form 'umiputra-Commerce 'ank

>CCC 'C' merged with 'ank 'umiputra

$ndian overseas bank has being operated in banking law in

ala(sia since >CE>+ and united commercial bank

limited has been operated since >CEI. The bank has being set up united #sian compan( with ala(sia+ which prohibited foreign 0ovt. 'ank from operating in the count(. #lso $.O.' and other si) bank $ndian private bank etc. 'harath overseas banks as Chennai based private bank to take over $.O.' 'angkok branch. The bharath overseas bank is the onl( private bank+ which the reserve bank of $ndia has permitted to have a branch out side $ndia. The ownership was+ $ndian overseas bank 2F?N3 'ank of "a6asthan 2>IN3 P(s(a bank 2>E.DDN3 %ederal bank 2>C.DH3 South $ndian bank 2>?N3. Rarnataka bank 2I.DHN3. 'harath overseas bank the $ndian ethic communit( in Thailand. $n >CHH $.O.' opened a branch in Seoul. >CC> bank of commerce 2'C'3 a bank 'rahmaputra ala(sia. ala(sian bank 2U.#.'3 in >CCC 'C' merged with

FUNCTIONS OF INDIAN O1ERSEAS BAN6

$ts accept deposits from the public. $t lends mone( to the need( people+ for having loans+ 6ewels loans J for the customer durable goods.

28

 'ank issue Che*ue. $t deals in the bill of e)change+ dies+ promissor( notes+ coupons+ draft+ and bill of lending+ railwa( receipts+ warrants+ certificates+ scripts J other securities weather transferable or negotiable. $t acts as agent for remittance of mone( on behalf of government+ municipalit(+ local board+ $nsurance Corporation J other. $t grants J issue letter of credit travelers Che*ue J circular notes.

29

BOARD OF DIRECTORS
STREN7T' OF T'E BOARD: 1resentl(+ there are >? 9irectors on the 'oard of the 'ank. 'rief 1articulars of each of the directors are placed below8

1& Sh i S&A& Bhat< Chai man an$ Mana,in, Di e*to 9O'8 A?.>?.>CK? @ualification8 '.Sc 27ons3 C#$$' 1art $ #ppointed on8 ?E.?D.A??H Term ends on8 F>.>?.A?>? 29ate of Superannuation3

AT BAN6 OF INDIA: Shri S # 'hat 6oined 'ank of $ndia as a 1robationar( Officer in >CHA and was with them till >st %ebruar( A??D. $n 'ank Of $ndia+ he started as an officer and 'ranch branches. 7e was Chief 9ealer at anager of rural and semi urban

umbai Overseas 'ranch+ of 'ank of $ndia. 7e had a two-

(ear stint at 'ank of $ndia,s London 'ranch. 7e was with that 'ank,s New =ork Office for four (ears as Pice 1resident and Comptroller. 7e has headed the 'ank of $ndia,s Chennai Qone as Qonal anager. #s 0eneral anager $nternational 'anking+ he was in charge of the entire anager+ "isk anagement+ he was anagement techni*ues and 'asel $$ norms. $nternational operations of 'ank of $ndia. Later as 0eneral responsible for the implementation of "isk

.hile at 'ank of $ndia+ he was also nominee director for STC$+ $L J %S and $ndo Qambia 'ank. AT UCO BAN6 AS E=ECUTI1E DIRECTOR Shri 'hat was appointed b( the 0O$ as !)ecutive 9irector of UCO 'ank on A nd %ebruar( A??D and held that position till his present assignment as C 9 of $ndian Overseas 'ank. Shri 'hat has made man( contributions to the 'anking $ndustr(+ as a member of several committees. 7e was on the Technical #dvisor( Committee+ Steering 0roup for 'asel $$+ Committee on Credit #dvisor( S(stem for !)porters+ and .orking 0roup for revision of #L + all of which were

30

constituted b( "eserve 'ank of $ndia. 7e was also on the $ndian 'anks, #ssociation,s Committee for drawing "oad ap for implementation of 'asel $$.

.ith an overall e)posure in 'anking+ his strengths lie in $nternational 'anking+ Credit+ "ural %inance and "isk anagement.

A. Shri =.L.

adan

!)ecutive 9irector 9O' 8 AE.?I.>CK? @ualification 8 .Sc.+ '#+ C#$$'

#ppointed on8 >D.?K.A??I Term ends on8 F>.?I.A?>? 29ate of Superannuation3 AT CANARA BAN6 Shri = L adan 6oined Canara 'ank in >CHF as Officer trainee and has FK (ears of

e)perience. 7e served mostl( in northern areas of 1un6ab+ 7ar(ana+ Chandigarh+ 'ihar+ 9elhi and had a posting at Overseas !)change Compan( in 9oha+ @uatar+ managed b( Canara 'ank+ 7e had one (ear stint as %acult( in Canara 'ank Training Centre+ 0eneral !)ecutive 9irector. umbai. 7e was the anager from October A??F in Canara 'ank before his appointment in $O' as its

A. Smt.Nupur

itra

!)ecutive 9irector 9O'8 ?I.>A.>CKA @ualifications8 '.Sc.+ LL' #ppointed on8 ?H.>A.A??C Term ends on8 F>.>A.A?>A 29ate of Superannuation3

AT BAN6 OF INDIA Smt.Nupur itra started her career with 'ank of $ndia in Lucknow as 9irect "ecruit Officer in

the (ear >CHK. 9uring her service spanning over FE (ears+ she served the 'ank of $ndia in various capacities at the branches and its Qonal Offices.

31

She moved over to head London 'ranch on overseas assignment in mid A??>. 7er overseas tenure in London and thereafter as Chief !)ecutive of !urope operations was the most satisf(ing part of her career in terms of business and contribution. #fter an e)emplar( overseas stint+ back in the Chandigarh Qones of the 'ank. #s 0eneral 9epositor( Services+ etc. Smt. Nupur itra was the 0eneral anager of 'ank of $ndia before her appointment in $O' as otherland+ she headed the umbai and

anager at the Corporate Office she was in charge

of Credit+ S !+ "etail 'anking 29eposit J #dvances3+ Card 1roducts+ 1ublic "elations+

its !)ecutive 9irector.

F.

9r. Pinita Rumar

0overnment Nominee 9irector 9O' 8 AK.>A.>CKE @ualifications 8 # 2!conomics3 1h. 9.+ $ndian

!conomic Service 2>CHH3 Nominated b( 0O$ on8 >?.?D.A??I and will continue until further orders 9r Pinita Rumar+ is presentl( the !conomic #dviser+ 9epartment of %inancial Services+ inistr( of %inance+ New 9elhi. She has published books on the following topics. !conomic 0rowth and "ural 1overt( 4The $ndian !)perience 2>CD?->CCK3 Learning to Share 8 !)perience and "eflections on 1articipator( "ural #ppraisal and Communit( participation.

E.

Smt. Chitra Chandramouliswaran

"'$ Nominee 9irector 9O' 8 AD.?H.>CEE @ualification8 .Sc.+ C#$$'

Nominated b( 0O$ on8 AH.?A.A??H and will continue until further orders. Smt Chitra Chandramouliswaran 6oined "'$ in >CDH and has worked $ndustrial !)port and Credit 9epartment+ 'anking Operations J 9evelopment and %oreign !)change 2!)change Control3 9epartments and "'$,s Central Office in umbai. She has also held senior

32

assignments in "'$,s "egional Offices in 9elhi and 'angalore. She retired as Chief 0eneral anager of "eserve 'ank of $ndia in A??E. She has been nominated b( 0O$ as "'$ nominee on the 'oard of the 'ank with effect from AH.?A.A??H.

>&

Sh i N& S i$a an

.orkmen !mplo(ee 9irector 9O'8 >?.>A.>CK? @ualification8 SSLC Nominated b( 0O$ on8 A?.?E.A??H Term ends on8 >C.?E.A?>? and thereafter until his successor is dul( nominated or till he ceases to be a workmen emplo(ee of $O' or until further orders+ whichever is earlier. Shri N Sridaran 6oined the 'ank on ?A.?K.>CHA and is having more than FD (ears of banking e)perience in $O'. 7e is presentl( a Special Cadre #ssistant attached to Cathedral 'ranch of the 'ank.

D. Shri '. P. #ppa "ao 1art-Time Non-Official 9irector 9O'8 ?D.?D.>CK? @ualifications8 '.Com. %.C. #. Nominated b( 0O$ on8 AC.?I.A??I Term ends on8 AI.?I.A?>> # *ualified Chartered #ccountant in >CI?+ Shri #ppa "ao+ immediatel( 6oined #ndhra 'ank as Officer and served for D (ears. Leaving #ndhra 'ank+ he 6oined of #ndhra 1radesh in the Senior /s The #ndhra Sugars Limited anagement and served for H (ears. /s '.P. "ao #ssociates+ Chartered #ccountants+ 0untur

7e is presentl( a Senior 1artner in

started in the (ear >CCE. 9uring these >E (ears of service he was Statutor( 'ranch auditor for Union 'ank of $ndia+ State 'ank of $ndia and #ndhra 'ank. 7e was Concurrent #uditor for various branches of #ndhra 'ank and Union 'ank of $ndia at 0untur. 7e was also Statutor( #uditor for the 9ivisions of United $nsurance compan( Limited appointed b( Comptroller and #uditor 0eneral of $ndia.

33

H. Shri Soora6 Rhatri 1art-Time Non-Official 9irector 4 Second Time 9O'8 ?D.?I.>CKK @ualifications8 '.Sc.+ LL.'.+ 9ip. $n Labour Law Nominated b( 0O$ on8 AD.>?.??C Term ends on8 AK.>?.A?>A or until further orders+ .hichever is earlier<

Shri Soora6 Rhatri is practicing legal profession as an #dvocate in "a6asthan 7igh Court. 7e is also a 6ournalist+ !ditor and 1ublisher.

I.

Shri #.R. 'hargava

Shareholder 9irector 9O'8 >?.?K.>CEF @ualification8 '. Com.+ LL. '.+ C#$$' !lected b( Shareholders other than 0O$ on8 AK.>>.A??I Term ends on8 ?H.>A.A?>>

Shri # R 'hargava is a retired 0eneral

anager of 1un6ab National 'ank. 7e is a professional anagement and %inancial Consultant.

'anker with E? (ears of e)perience. 7e is at present a

C.

9r. Chiran6ib Sen.

Shareholder 9irector 9O'8 AC.?C.>CED @ualification8 # 2!con.3 1h. 9

!lected b( Shareholders other than 0O$ on8 AK.>>.A??I Term ends on8 ?H.>A.A?>> 9r Chiran6ib Sen. is a 1rofessor of !conomics in the $ndian $nstitute of anagement+ 'angalore

and a visiting 1rofessor of about >F universities in $ndia and abroad. 7e has edited man( books. Numbers of his articles on various topics of varied interest have been published in $ndian and %oreign 6ournals.

34

>?.

Shri # Pella(an

Shareholder 9irector 9O'8 ?C.?>.>CKF @ualification8 '.Com+ '#

!lected b( Shareholders other than 0O$ on8 ?I.>A.A??I Term ends on8 ?H.>A.A?>> Shri # Pella(an+ aged KD (ears+ hailing from Chennai+ is a anagement graduate from the

Universit( Of .arwick 'usiness School in UR and a diploma holder in $ndustrial #dministration from the Universit( of #ston+ 'irmingham+ UR. 7e is the Pice Chairman and 9irector 4 Strateg( of the urugappa 0roup+ a business conglomerate head*uartered in Chennai. Shri Pella(an is the non-e)ecutive Chairman of two 1ublic Limited Companies viz. !$9 1arr( 2$ndia3 Limited and Coromandel %ertilizers Limited and is also on the 'oard of several reputed 1ublic Limited companies. 7e is the Pice 1resident for Southern $ndian Chamber of Commerce J $ndustr( and a member of the !)ecutive Committee of %$CC$+ 9elhi. Shri Pella(an has been elected b( the shareholders 2other than the Central 0overnment3 to represent their interest in the 'oard.

35

5RODUCTS ? SER1ICES

36

5RODUCTS ? SER1ICES
$O' 'ank offers wide variet( of 9eposit 1roducts to suit (our re*uirements. Coupled with Convenience of networked branches/ #T s and facilit( of !-channels like $nternet and provide (our details online and our representative will contact (ou for #ccount Opening. obile 'anking+ $O' 'ank brings banking at (our doorstep. Select an( of our deposit 1roducts and

DE5OSITS:

Saving 'ank 9eposits No %rills S' #ccounts Current #ccount %i)ed 9eposit "einvestment 9eposit "ecurring 9eposit #ccount #nnuit( 9eposit 1lan ultiple $nvestment Scheme Cumulative 'enefit 9eposit ultiple 9eposit #ccount

37

SA1IN7 DE5OSIT
$n this t(pe of deposit the depositor can deposit J withdraw whenever he is in need of mone(. The depositor can also have Che*ue book facilit( b( maintain a balance of "s.K??/-+ in the account an( person can deposit on behalf of the account holder can withdraw the amount.

FI=ED DE5OSIT
%i)ed deposit can be accepted for F? da(s to FH months and at various interest rates+ while depositing mone( in a fi)ed. The customer received a deposit receipt which is usuall( market &NOT N!0OT$#'L! the deposit is repa(able on demand J after the maturit( period.

RECURRIN7 DE5OSITS
9eposits received for D months to a ma)imum of >? (ears as monthl( fi)ed installment. The amount saved and interest compounded at *uarterl( intervals paid at the time of maturit(. $n case of monthl( installments e)ceeding "s.AK??? a ma)imum period is restricted to F (ears.

S5ECIA/ FI=ED DE5OSITS

9eposits accepted for D months to >? (ears. $nterest pa(able ever( *uarterl( or monthl(. onthl( interest is pa(able U discount rate.

RE@IN1ESTMENT DE5OSITS
9eposits accepted for D months to >? (ears. $nterest compounded *uarterl( and at the time of maturit( in case of deposits "s. >K lakhs ma)imum period is restricted to F (ears.

7RANTINT2 /OANAS AND AD1ANCE

Lending is one of the primar( functions of co- operative bank+ some of the method of lending are.

38

1ersonal Loan Car Loan Commercial Pehicle Loan Corporate Loans 7ousing Loan 7ome $mprovement Loan !ducational Loan N"$ 7ome Loans #gricultural Loans %inance %or Small+ edium #nd Large !nterprises

5ERSONA/ /OANS
$ndividual in emplo(ment+ professional+ self-emplo(ed not over KK (ears of age is eligible for personal loan to bu( consumer durable such as electric+ electronic goods metals and wooden furniture etc. the minimum loan is K times the gross salar( or C?N if the cost so the article whichever is less.

5US'5A6'A 8CAR /OAN9

Car finance for purchase of new as well as used car and two wheelers C?N of a cost of new car and two wheeler and HKN cost of old car two wheeler or financed against h(pothecation of vehicles. "epa(ments of D? ! $ for new car and FD ! $ for old car

COMMERCIA/ /OAN
"ange of services on e)isting loans J e)tended products like funding of new vehicles+ refinance on used vehicles+ balance transfer on high cost loans+ top up on e)isting loans+ !)tend product+ working capital loans J other banking products.

39

SUB'A 7RU'A
7ome loans scheme for residents, individual up to "s. K? lakhs repa(able in A? (ears for purchase construction of new/old house flats in the case of fi)ed rate opinion the ma)imum repa(ment period is >? (ears.

'OME IM5RO1EMENT SC'EMES

Loans schemes for repairing / renovation/up gradation of e)isting houses to individuals in service+ profession+ trade. Loan up to "s.K lakhs repa(able in >A? ! $ with a holida( of months.

1ID2A BOT'I EDUCATION /OAN SC'EME

Loans schemes and student education in abroad loan amount "s. H.K lakhs stud( in abroad.

/ICUIRENT
Loan schemes for owners of building let out to banks+ corporate,s provided against future rent visible. NCs finance is

FARM ECUI5MENT /OANS

1referred financier for almost all leading tractor manufacturers in the countr(. %le)ible repa(ment options in tandem with the farmerGs seasonal li*uidit(. onthl(+ @uarterl( and 7alf(earl( repa(ment patterns to choose from. Comfortable repa(ment tenures from > (ear to C (ear

CREDIT CARDS
$O' 'ank Credit Cards give (ou the facilit( of cash+ convenience and a range of benefits+ an(where in the world. These benefits range from life time free cards+ $nsurance benefits+ global emergenc( assistance service+

40

9iscounts+ utilit( pa(ments+ travel discounts and much more.

DEBIT CARDS
The $O' 'ank 9ebit Card is a revolutionar( form of cash that allows customers to access their bank account around the clock+ around the world. The $O' 'ank 9ebit Card can be used for shopping at more than >??+??? erchants in $ndia and >F million merchants worldwide.

TRA1E/ CARD
1resenting $O' 'ank Travel Card.The 7assle %ree wa( to Travel the world. Traveling with US 9ollar+ !uro+ 1ound Sterling or Swiss %rancsT Looking for securit( and convenienceT take $O' 'ank Travel Card. $ssuedin duplicate. Offers the 1in based securit(. 7as the convenience of usage of Credit or 9ebit card.

5RE 5AID CARDS

$O' 'ank brings to (ou a complete bou*uet of pre-paid cards providing pa(ment solutions at (our fingertips. $O' 'ank pre-paid cards are a safe J Convenient wa( for associate pa(ments+ disbursements+ gifting J small ticket transactions. 1repaid cards are available on a P$S# platform thus providing accessibilit( to over one lakh merchant establishments J cash withdrawal from all P$S#S.

IOB BAN6 5URE 7O/D

0old has been traditionall( the most favored form of investment for $ndians. $n fact+ $ndia+ even toda( is amongst the highest customers of 0old in the world. 7owever+ the 0old market remains

41

largel( unorganized with reliabilit( and convenience remaining the ke( issues for gold bu(ers in the countr(. $O' 'ank with its V1ure 0oldG offer attempts to bridge the gap between the need of the customers for bu(ing gold and availabilit( of an organized avenue to satisf( that need+ b( taking care of the two ke( components "eliabilit( and Convenience. "eliabilit( AE Carat $O' 'ank 1ure 0old is imported from Switzerland. This 0old carries a CC.CCN #ssa( Certification+ signif(ing highest level of purit(+ as per international standards. $O' 'ank 1ure 0old is competitivel( priced based on dail( prices in the international bullion market. Currentl(+ gold is available in A+ E+ I+ A?+ K?+>??gms.

FOREI7N E=C'AN7E DEA/IN7S

The foreign e)change management act.>CCC defines8 currenc( and includes--2$3 2$$3 9eposits+ credits and balances pa(able in an( foreign currenc(. 2ii3 9rafts+ travelers Che*ue+ letters of credit or mills of e)change+ e)pressed or drawn in $ndian currenc( but pa(able in an( foreign currenc(T 2iii3 9rafts+ travellers Che*ue+ letters of credit or bills of e)change drawn b( banks+ intuitions or persons outside $ndia+ bit pa(able in $ndian currenc(. Thus+ foreign e)change includes foreign currenc(+ balances kept abroad+ and instruments pa(able in foreign currenc(+ and instruments drawn aboard but pa(able in $ndian currenc(. %oreign e)change is the mechanism b( which the currenc( of one countr( gets converted into the currenc( of another countr(. %oreign e)change pla(s an important role in international trade. The conversion of currencies is done b( banks who deal in foreign e)change. These banks maintain stocks of foreign currencies in the form of balances with banks abroad. &%oreign e)change means foreign

RE5ORTIN7 OF FOREI7N E=C'AN7E TRANSWACTIONS B2 BRANC'ES: MONETAR2 /IMT:

#N= S#L! O" 1U"C7#S! O% %O"!$0N !WC7#N0! .7!"! "!1!! P#LU! $S "S.K?+ ???/- or above+ branches should obtain ratFs form dealings rooms at !WC7#N0! 9!P!LO1 !NT C!NT"#L O%%$C!3 Th.'.+ %!9CO 2%O"!$0N umbai+ as the case ma(be. $f the

42

transactions are put through at the rates given b( %!9CO/Tr.'.+ umbai+ the same should be reported b( branch immediatel( b( tele)/fa). $f the branches purchase more than one sale at a time+ whose aggregate value is rs.K?+???/- and above then also branches should contact dealings room at %!9CO/Th.'. + umbai for rates and reporDt the same b( tele)/fa) even though the individual item ma( be below "s.K?+???/-. $f the branches purchase/sell foreign e)change 2either as one or multiple3 whose value at the time of purchase/sale will be below "s.K?+???/- b( appl(ing the card rate+ but during the da( the aggregate purchase or sale e)ceed "s.K?+???/-+ then at the end of the da( branches should report the aggregate of such purchases/sales dealing room at %!9CO/Tr. umbai b( teem/fa) at the card rate if the aggregate purchase or sale is below rs.K?+???/-+ branch should report through e)change position memo immediatel(. The e)change position memo ma( be sent b( teem or details conve(ed over phone according to the convenience of branch. Care should be taken not to omit an( transaction form reporting $n case of u since bill discounted+ the branches should contact dealing room at %!9CO/T". '+ umbai for rates irrespective of the amount of bill+ i.e.+ even if the rupee amount of bill is less than "s.K?+???/-. 'ranches should not appl( card rates but appl( card rates but appl( rates obtained from dealing room.

C'ASSIFICATION OF SA/ED5URC'ASE TRANSACTIONS FOR RE5ORTIN7 5UR5OSES

The purchase transactions are classified under the heads e)ports and non-e)ports. Similarl( the sale transactions are classified under the heads non-import The items are to be include these heads are as below.

E=5ORT

NON@E=5ORTS

IM5ORTS

NO@IM5ORTS

!)port bills 1urchased discounted negotiated "ealization of

1urchase of instruments Other than for e)port

Sales transaction for all import whether under LC or not under LC

Sale for issuances of 99 / TT/TC etc.+ for other than imports

"ealization

Sales of foreign

Conversion of N"! rupee

43

e)port bill sent and collection.

instruments on collection other than of e)ports

e)change for import bill which are received directl( b( the imported

to %CN"/"%C deposits etc.+

O'" realizations

$nwards remittance like other than e)ports

The sales transaction representing advance remittance to imports to $ndia

National sales for transfer of Overdue e)ports bill purchased / discounted/ ##O"'X#dvance against overdue e)port bills receivable

overseas e)porters for negotiated to

1urchase of Che*ue / 99 is received b( e)ported towards e)port proceed

Conversion of %CN" X'+ !!%C/"%C/%C# deposits to rupees

Sales of foreign e)change for direct imports

Sales for re*uire and realize and purchased / discounted negotiated e)port bills or unrealized purchased instrumentsX CL!#"NY

"ealization of Che*ue / 99 is sent on collection returning to e)ports 1urchase of an( inwards remittance / advance remittance towards e)ports 1a(ments of e)ports bills b( debit of N"! a/c

Conversion of 1C%C+ %CL+ .CTL+ amount to rupees

----------------

#ll cross currenc( sales where the sales leg is not per training to imports

#n( other purchase transaction which is non-e)port in nature

----------------

#n( other sales other than imports

#ll cross currenc( transaction where the corresponding purchase leg does not

-------------

----------------

44

certain to e)ports

OT'ER /OANS
The bank providing personal loans for purchasing television+ refrigerator other house hold article. There also offering loans to small scale industr(+ self-emplo(ed person J transport operators.

NRI ACCOUNTS

Non-"esident Ordinar( 2N"O3 "esident %oreign Currenc( #ccount 2"%C3 %oreign Currenc( Non-"esident #ccounts 2'anks3 N"$ home loan scheme N"$ remittances "emittances procedures Tracking cell %orward cover $O' N"$ shield $O' !)po 0old Card

Co #o ate Ban+in,

icro Small and $T J '1O

edium !nterprises 2 S !3

Cash management services -$O' ST#"S

Ru a%

$O'Gs commitment for social causes #gricultural short time loans

45

%inancial inclusion #gri business consultanc(

OT'ER SER1ICES AND 5RODUCTS:

P$S# $nternational Credit Cards P$S# 9ebit Card $O' %ine 0old "eal Time 0ross Settlement 2"0TS3 %ore) Collection Services #griculture and 'usiness Consultanc( Service $nvestment options like utual %unds and Shares

SECONDAR2 FUNCTION OF T'E BAN6

Secondar( function refers to the various a)illar( service rendered b( the bank Safet( locker Clearing of bills #)illar( service Overdraft of weavers %inancial anal(sis for 19S $ssue of 99 "efinance for product loan $ssue of 'C

IOB CREDIT CARD

.eiver of annual / entr( fee 2 life time3

46

$nternational card affiliated to P$S# "oll over facilities with repa(ment of >? N of the outstanding amount Lowest interest U AEN 2anal(zed3 for the roll over credit %ree credit card period up to K? da(s from the date of purchase. !nhanced insurance coverage such as personal+ accident+ baggage+ purchase+ protection+ etc.

#dd on car facilities to the famil( members. Lowest service charges U A.AKN on the cash pa(ment. %acilities to draw cash at over >K??? #T s in $ndia and over I.H lakhs #T s worldwide.

1a(ment for fee to foreign institution "eward point are redeemed and credited to the account.

INSURANCE /IN6ED RETAI/ 5RODUCTS

$O' 6eevan 7ealth care plans Pid(a suraksha Pid(a 6othi with suraksha Liabilit( insurance for retail loans. N"$ shield

MUTUA/ FUND DISTRIBUTIONS

%ranklin Templeton limited Tata mutual funds $TC mutual funds Sundram '.1 1aribas funds

47

 1rinciple $O' # C 2$3 limited Rotak mutual funds Standard charted mutual funds $C$C$ prudential mutual funds UT$ mutual funds

7O1ERNMENT BUSINESS

!-1a(ment of direct ta)es !-1a(ment of indirect ta)es 1ension pa(ment scheme Sales ta) collections 1rovident %und Scheme >CDI I percent savings ta)able bond scheme Senior citizen scheme A??E

SER1ICE A1AI/ABI/ITIES AT FREE OF C'AR7ES

C'S transaction $nsurance+ revenue+ annual+ free for #T cards

No frill account+ no minimum balance changes and additional deduction of names in deposits

Perification in nomination Closure of #/c 4 S' /C9CC Charges in operation of C9CC 9uplicate deposit receipt No due certificate Cancelation of 99 / 'C

48

'alance en*uire b( using #T

cards

$nward remittance through N!%T/ "T0S

DEMAND DRAFT CURRENT C'AR7E IN IOB

AMOUNT RAN7E Up to >??? #bove >???-K??? #bove K???->???? #bove >????-> lakh

FOR CUSTOMERS "s. >E "s. A> "s. AI "s. A.?E per >???. 2 in "s. F?3

NON@ CUSTOMERS "s. A> "s. FA "s. E> "s. F.?D per >??? 2 in "s. EK3

"s. A.HD per >??? #bove > lakh- >?lakh 2 in "s. AH>A3 "s. A.HD per >??? #bove >? lakh 2 in "s. AH>A3

"s. E.E> per >??? 2 in "s. E?DI3 "s. E.E> per >??? 2 in "s. E?DI3

BAN6ERS C'ECUE CURRENT C'AR7ES IN IOB

AMOUNT RAN7E Up to >??? #bove >???-K??? #bove K???->???? #bove >????-> lakh

FOR CUSTOMERS "s. H "s. A? "s. AI "s. A.?K per >???. 2 in "s. F?3

NON@ CUSTOMERS "s. >> "s. F> "s. E> "s. F.?D per >???

49

2 in "s. EK3 "s. >.FI per >??? #bove > lakh- >?lakh 2 in "s. >?A?3 "s. >.FI per >??? #bove >? lakh 2 in "s. >DFA3 2 in "s. AEEI3 2 in "s. >?KI3 "s. A.?H per >??? "s. A.?H per >???

50

STATEMENT OF T'E OBBECTI1ES

51

OBBECTI1E OF T'E STUD2

5RIMAR2 OBBECTI1E
To stud(+ anal(ze and evaluate the customer satisfaction level towards the different services rendered b( the bank and to identif(ing the critical success factors.

SECONDAR2 OBBECTI1ES
To evaluate the awareness level of the customer on the product and services. To find out the differences among perceived service and e)pected service. To evaluate the process efficienc( in customer *uer( and re*uirement handling To understand consumer,s preferences. To access the degree of satisfaction of the customers

52

RE1IEW OF /ITERATURE

53

1. #ccording to EAnne@Bi te Stens,aa $F Senio Ne4s E$ito < Bune 2G@2GGH states that the

new insurance product is an arrangement between the United $ndia $nsurance Compan( Limited and the $O' that provides $nsurance cover for N"$s under the scheme - $O' N"$ Shield. The scheme covers N"$s during their sta( in $ndia+ up to a ma)imum of >I? da(s a (ear. N"$s during their visit to $ndia find $nsurance a pre-re*uisite to meet their contingencies arising out of ailments+ accidents+ baggage loss and other perils like fire etc. This scheme will meet all the $nsurance re*uirements of the N"$s and covers varied risks anticipated during their sta( in $ndia. #ll $O' bank account holders who desire to participate in this insurance scheme can avail the facilit( at U#! !)change outlets - an e)tensive network in the U#! - to pa( their premium amounts. S Nara(anasami+ Chairman and On the occasion of the launch+ r. T anaging 9irector of $ndian Overseas 'ank said+ O$O'

which is a DC (ears old bank has adapted successfull( to the emerging trends b( introducing new products and services in financial sector. The 'ankGs power of performance has stemmed from customer-centric business ethos+ relentless $T initiatives and polic( focus.O OThough we have association with man( e)change companies in 0ulf area+ our association with U#! !)change Centre+ U#! dates back to more than AK (ears+O added Nara(anasami.

54

A. A**o $in, to E5R Ne4s4i eF LON9ON+ October C+ $ndian Overseas 'ank in Singapore has selected integrated core banking solution+ is(s idas 1lus+ to introduce new products and client services to support business e)pansion+ deliver new levels of customer satisfaction and improve operational performance while enabling market leading international standards in accounting and regulator( compliance J controls. $ndian Overseas 'ank was the first $ndia based bank to commence operations in Singapore more than D? (ears ago and provides a comprehensive range of banking servicesT specializing in retail banking+ trade finance and a wide range of remittance facilities to $ndia

F. A**o $in, to E/assa < Wa%f ie$ M&< Mano%is< Ch is< Winso < Ro)e tF De*em)e > 2GGG< state that $n the Sero*uel Scale is the principal instrument in the services marketing literature for assessing *ualit(. The Technical/%unctional @ualit( %ramework is also a widel( accepted model on service *ualit(. 7owever+ the abilit( of either to predict customer satisfaction has not been looked into. "elating to the private banking industr(+ the Technical/%unctional @ualit( %ramework was found to be more suited to predicting customer satisfaction.

0& A**o $in, to E5o4#a+a< Sama tF O*to)e 1I :1IIH Statethat the influence of outcome *ualit( on customersG perceptions of overall service *ualit( are studied. "esults show that outcome *ualit( has a strong influence on customersG overall service *ualit( assessment. Outcome *ualit( is also most important in services with search and e)perience outcome *ualit( attributes. # model to enable marketing managers to evaluate customersG perceptions of service *ualit( is also discussed. >& A**o $in, to E/ee< 'a+si+< /ee< 2on,+i< 2oo< Don,+eun EMa *h 20 : 2GG2 State that the 1erformance as perceived b( customers rather than the difference between that perception and the customerGs prior e)pectations e)plains more the variation in service *ualit(. $t is the customerGs satisfaction that leads to perceived *ualit( of service rather than the reverse. e*uipment and facilit( based services. ore emphasis on responsiveness is e)pected to be placed on people-based services than on

H& A**o $in, to ECBA RE5ORTF Bune 12 @ 2GG> state that the banking industr( had a better than average score for customer satisfaction over the past (ear+ according to the latest report b( #merican Customer Satisfaction $nde) 2#CS$3.

55

The score for how well the banking industr( is doing overall 2HK+ unchanged from last (ear3+ compares to the overall Level of satisfaction in the US econom(+ representing all companies and industries measured b( the #CS$+ which stands at HE.F+ so the banking industr( is doing slightl( better than the average of all consumer goods and services. !stablished in >CCE+ #CS$ is a uniform and independent measure of household consumption e)perience+ which tracks trends in customer satisfaction and provides benchmarking insights of the consumer econom(. The #CS$ is produced b( the 'usiness School at the Universit( of ichigan+ in partnership with the #merican Societ( for @ualit( 2#S@3 and the international consulting firm+ C%$ 0roup. #CS$ sa(s their scores are a leading indicator of future consumer bu(ing. O7igh satisfaction scores make it easier for banks to increase their relationships with their customers and sell them more products and servicesT low satisfaction has the opposite effect. $n general+ this translates into a prediction of changes in revenues+O according to #CS$.

J& A**o $in, to ERo)e t W& A mst on,< Tan Boon Sen,F Se#tem)e 2 2GG> state that !)tends the current understanding of customer satisfaction at the business-to-business level in the #sian banking industr(. The main thrust of the paper is an attempt to conceptualize a comprehensive model of satisfaction at the business-to-business level incorporating guan)i 2Chinese business relationships3+ relationship marketing and the disconfirmation paradigm. The essence of the research highlighted the importance of relational constructs+ in addition to the disconfirmation paradigm+ in impacting customer satisfaction at the business-to-business level in the Singapore banking industr(. #t the business-to-business level in the #sian conte)t+ the disconfirmation paradigm is still the predominant paradigm influencing the customer satisfaction process. "elationship marketing and guan)i are significant in our comprehensive model of corporate-customer satisfaction. "elationship marketing was found to have both a direct and an indirect impact 2through disconfirmation3 on corporate-customer satisfaction. 0uan)i was found to e)ert an indirect impact on satisfaction as opposed to the initial h(pothesized direct impact on satisfaction.

K& A**o $in, to E/uis Moutinho< Dou,%as T& B o4nieF No3em)e 20 2GGK State that the nature and direction of the satisfactions that are delivered to customers of bank services are e)plored+ and the criteria used to evaluate these services are highlighted. The non-metric multidimensional scaling techni*ue enabled respondentsG perceptions to be represented spatiall(.

56

$t is revealed that respondents had high levels of satisfaction with regard to the location and accessibilit( of branches and #T s+ and acceptance of the current levels of banking feesT but e)pressed some caution in their evaluation of new and improved services.

I&A**o $in, toE U&S& Ban+F Bune 2 @2GGK State that the

$NN!#1OL$S - 2'usiness .ire3

U.S. 'ank customers are increasingl( lo(al and satisfied+ and the( consider U.S. 'ank,s services to be of high *ualit( and value according to the #merican Customer Satisfaction $nde) 2#CS$3 research conducted in the fourth *uarter of A??C. U.S. 'ank surpassed industr( averages and topped the four largest banks in the countr( in customer satisfaction+ customer e)pectations+ perceived *ualit(+ perceived value and customer lo(alt(.U.S. 'ank scored JJ in o3e a%% ACSI *ustome satisfa*tion+ compared to the ne)t highest reported score of HF and the industr( average of HK. U.S. 'ank e)ceeded reported industr( averages in the important categories of lo(alt(+ *ualit( and value b( seven or more points. &.e,ve e)perienced a flight to *ualit( for man( months+ and now these results are evidence of our success+O said "ichard 9avis+ chairman+ president and chief e)ecutive officer of U.S. 'ancorp. &Our compan( has been a source of strength and stabilit( and as these scores demonstrate+ customers are taking notice. #t U.S. 'ank+ the( find high *ualit( service and value+ and perhaps most importantl(+ our customers are ver( lo(al. #s now the fifth largest commercial bank in the United States with the fourth largest branch network+ we are ver( pleased with our results+ and we know that this positive momentum is 6ust the beginning. .e are focused on customer lo(alt( with a number of new programs aimed at moving us from ver( good to great. #CS$ independentl( surve(s customers of the largest companies in consumer goods and services industries. U.S. 'ank has engaged #CS$ to surve( its retail customers over the last several (ears and continues to improve its scores.

>?. #ccording to D&M& Maha#t aF The )usiness %ine A# i% 11 @ 2GGK8#a,e09 State that The working of the customerGs mind is a m(ster( which is difficult to solve and understanding the nuances of what customer satisfaction is+ a challenging task. This e)ercise in the conte)t of the banking industr( 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

57

customer lo(alt( in the long run which is an integral part of an( business. The customerGs re*uirements must be translated and *uantified into measurable targets. This provides an eas( wa( to monitor improvements+ and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. .e 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 (18 !-1"#$%.

>>. #ccording to &M& Sa$iLSohai% an$ Ba%a*han$ an Shanmu,hamF ma *h 23 @2GG3 State that the paper e)amines the current trends in the e-commerce revolution that has set in motion in the ala(sian banking sector and reports on an empirical research that was carried out in ala(sia to stud( the customers, preference for electronic banking and the factors+ which the( considered influenced the adoption of electronic banking. "esults based on the anal(sis of data relating to F?? respondents indicate that while there is no significant differences between the age and educational *ualifications of the electronic and conventional banking users+ some differences e)ists on other demographic variables. #nal(sis further reveals that accessibilit( of $nternet+ awareness of e-banking+ and customers, reluctance to change are the factors that significantl( affected the usage of e-banking in ala(sia. The paper discusses on the implications of these. Limitations of the stud( are highlighted and further research directions are suggested.

12& A**o $in, to E/ee< Min, Chan,; '4an< In, SanF@To+-o De*em)e 1< 2GG> State that the This stud( e)amines whether there are economic benefits to be gained from improving service *ualit( in the Taiwanese banking industr(. Service *ualit( is perceived *ualit(T and different from ob6ective or actual *ualit(T being a 6udgment usuall( made within a customer evoked set. Service *ualit( resembles an attitude in man( wa(s+ and service *ualit( is distinct from customer satisfaction. Traditional financial ratios are not appropriate for measuring the economic benefits of service *ualit( improvement. 1&. 'ccordin( to )*tellen+osch, London -arch 1 - ##! State that the easuring user

satisfaction with information s(stems has attracted widespread research attention+ given it is often used as an indicator of success. The $nternet has allowed applications to be e)tended to

58

customers of an organization+ where interaction can take place through a web site+ t(picall( from home or office. The focus of attention with such applications is customer satisfaction. $n this research+ a A>-item+ H-factor instrument developed to measure customer satisfaction with web sites that market generic digital products and services was modified slightl(+ and then empiricall( tested and validated in the conte)t of $nternet banking specificall(. # >C-item+ Kfactor validated instrument emerged+ the factors being Customer Support+ Securit(+ !ase of Use+ Transactions and 1a(ment+ and $nformation Content and $nnovation. The difference in number of factors as compared to the generic instrument was attributed to the uni*ue nature of $nternet banking web sites. These and other findings are discussed in the paper+ and their implications e)amined.

10& A**o $in, to ENan@'on, /in< Wen@Chun Tsen,< 2u@Chun, 'un,< Da3i$ C& 2enF To+-o Ma *h I : 2GGKState that the Soon after becoming a .TO member+ Taiwan found the internationalization and liberalization in the financial industr( ushered its domestic banks into a new era. $n response to this global trend+ all its banks strove to rel( on customer relationship management 2C" 3 to enhance customer value 2CP3. This stud( aims to probe further into the connection between CP and C" . # series of e)aminations revealed that 2>3 both functional and social value impact customer behavior directl( and positivel(T 2A3 customer satisfaction positivel( and directl( affects customer lo(alt(T 2F3 a positive and direct relationship e)ists between customer lo(alt( and customer behaviorT and 2E3 the positive and significant relationship between CP and customer behavior can be developed through mediators such as customer satisfaction and customer lo(alt(. Conse*uentl(+ banks should offer their customers different services+ products+ and marketing channels to meet their diversified needs to cultivate a win-win environment of C" for both parties.

1>& A**o $in, to EA%essan$ o A )o e an$ B uno Busa**aF Bune 2K @2GGK State that The paper presents the results of an e)tensive stud( on the determinants of customer satisfaction for a retail bank. $n doing so+ it uses a revised version of the traditional anal(ses based on derived measures of attribute importance. The need for a revised methodolog( is prompted b( the insights of the two- and three-factor theories of customer satisfaction+ such as RanoGs framework. $ndeed+ the evidence from K??? customers of a prominent $talian bank confirms a non-linear and as(mmetric relationship between attribute performances and overall customer satisfaction. The results from both a traditional and our revised approach are compared. .hile

59

this approach can be applied across different industries+ it should not be assumed that the numerical results presented in the paper appl( to conte)ts with substantiall( different underl(ing characteristics. 0eneral trends and implications for banking services are reported.

1H& A**o $in, to E5 ata# 6&B& Moha#at aF Banua - 1I @2GGI State that The article e)amines whether service *ualit( of $ndian commercial banks increases customer satisfaction that fosters customer lo(alt(. 9ata were collected from FK? valued customers of scheduled commercial bank branches in Orissa 2$ndia3. # *uestionnaire elicited information on socio4demographic variables along with human+ technical+ and tangible aspects of service *ualit(+ customer satisfaction+ and lo(alt(. "esults suggest that better human+ technical and tangible aspects of service *ualit( of the bank branches increase customer satisfaction. 7uman aspects of service *ualit( were found to influence customer satisfaction more than the technical and tangible aspects. Customer satisfaction furthers customer lo(alt(. $ncrease in service *ualit( of the banks can satisf( and retain customers. $n the $ndian banking sector+ human aspects are more important than technical and tangible aspects of service *ualit( that influence customer satisfaction and promote and enhance customer lo(alt(.

1J& A**o $in, to EMe,ha T i3e$itheE*onomi*s timesF De*em)e J 2GGI 85a,e J9 State that the Customer satisfaction has become a ma6or source of concern in retail banking business. .ith e)ceptional progress in the establishment of banks in $ndia+ banks are increasingl( interested in retaining e)isting customers and targeting new customers. $n this paper+ it is proposed that *ualit( of service is an indicator of customer satisfaction. easuring service *ualit( involves ob6ective feedback about e)isting customers of $C$C$ bank with respect to their e)pectations and services offered. 1erformance of a bank ma( be evaluated with regard to a set of satisfaction parameters that indicate the strengths and weaknesses of an organization. Standard scale of S!"P@U#L developed b( 1arasuraman et al. has been used to conduct the surve(. This stud( is based on five overall dimensions of customer satisfaction with services provided b( $C$C$. The five dimensions used to measure service *ualit( are tangibilit(+ reliabilit(+ responsiveness+ assurance and empath(. This stud( gives useful insights to boost customer satisfaction towards $C$C$.

60

1K& A**o $in, to ERa(6uma the 'in$uF Au, J : 2GGK State that The banking industr( like man( other financial service industries is facing a rapidl( changing market+ new technologies+ economic uncertainties+ fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges 2>3. 'anking is a customer oriented services industr(+ therefore+ the customer is the focus and customer service is the differentiating factors 2A3. The banking industr( in $ndia has undergone sea change since post-independence. ore

recentl(+ liberalization+ the opening up of the econom( in the C?s and the governmentGs decision to privatize banks b( reduction in state ownership culminated in the banking reforms based on the recommendations of Narasimha Committee 2F3. The prime mover for banks toda( is profit+ with clear indications from the government to Gperform or perishG. 'anks have also started realizing that business depends on client service and the satisfaction of the customer 2E3 and this is compelling them to improve customer service and build up relationship with customers. .ith the current change in the functional orientation of banks+ the purpose of banking is redefined. The main driver of this change is changing customer needs and e)pectations. Customers in urban $ndia no longer want to wait in long *ueues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the development of #T s+ phone and net banking along with availabilit( of service right at the customerGs doorstep. .ith the emergence of universal banking+ banks aim to provide all banking product and service offering less than one roof and their endeavor is to be customer centric 2K3. .ith the emergence of economic reforms in world in general and in $ndia in particular+ private banks have come up in a big wa( with prime emphasis on technical and customer focused issues. 1I& A**o $in, to 7& Mihe%isH Fe) 2GGI Comme *ia% Ban+ of 7 ee*e states that Customer satisfaction represents a modern approach for *ualit( in enterprises and organizations and serves the development of a trul( customer-focused management and culture. easuring customer satisfaction offers an immediate+ meaningful and ob6ective feedback about clients, preferences and e)pectations. $n this wa(+ compan(,s performance ma( be evaluated in relation to a set of satisfaction dimensions that indicate the strong and the weak points of a business organization. This paper presents an original customer satisfaction surve( in the private bank sector. The implemented methodolog( is based on the principles of multicriteria anal(sis and preference disaggregation modeling. The most important results are focused on the determination of the critical service dimensions and the segmentation to customer clusters with distinctive preferences and e)pectations.

61

62

RESEARC' MET'ODO/O72

REASERC' MET'ODO/O72 0&1 RESEARC' DESI7N:

# descriptive stud( tries to discover answers to the *uestions who+ what+ when+ where+ and+ sometimes+ how. The researcher attempts to describe or define a sub6ect+ often b( creating a profile of group of problems+ people+ or events. Such studies ma( involve the collection of data and the creation of a distribution of the number of times the researcher observes a single !vent or characteristic 2the research variable3+ or the( ma( involve relating the interaction of two or more variables. Organizations that maintain databases of their emplo(ees+ customers+ and suppliers alread( have significant data to conduct descriptive studies using internal information. =et man( firms that have such data files do not mine them regularl( for the decision-making insight the( might provide.

63

This descriptive stud( is popular in business research because of its versatilit( across disciplines. $n for-profit+ not-for-profit and government organizations+ descriptive investigations have a broad appeal to the administrator and polic( anal(st for planning+ monitoring+ and evaluating. $n this conte)t+ how *uestions address issues such as *uantit(+ cost+ efficienc(+ effectiveness+ and ade*uac(. 9escriptive studies ma( or ma( not have the potential for drawing powerful inferences. # descriptive stud(+ however+ does not e)plain wh( an event has occurred or wh( the variables interact the wa( the( do.

0&2 SAM5/IN7
Convenience sampling method is used for the surve( of this pro6ect. $t is a non-probabilit( sample. This is the least reliable design but normall( the cheapest and easiest to conduct .$n this method "esearcher have the freedom to choose whomever the( find+ thus the name convenience. !)ample includes informal pools of friendsand neighbors or people responding to a newspaper,s invitation for readers to state their position on some public issue.

0&2&1& SAM5/E SIME

Sample size denotes the number of elements selected for the stud(. %or the present stud(+ >?? respondents were selected at random. #ll the >?? respondents were the customers of $O' in cathedral 'ranch

0&3 SAM5/IN7 MET'OD

# sample is a representative part of the population. $n sampling techni*ue+ information is collected onl( from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. # convenience sampling techni*ue was used to collect data fromthe respondents.

0&0 CUESTIONNARIE DESI7N:

The *uestionnaire consists of A t(pes of *uestions. i3 ii3 open ended Closed ended.

64

O5EN ENDED CUESTION This refers to a *uestion that has no fi)ed alternatives to which the answer must confirm. The respondent answers in his own words and at an( length the( choose. C/OSED ENDED CUESTION $t contains those *uestions in which the respondent is given a limited number of alternatives responses from which he/she is to select the one that most closel( matches his attitude.

The fi)ed alternative *uestions ma( be taken in the form of 9ichotomous *uestions ulti-choice *uestions

Di*hotomous Luestions $t refers to one+ which offers the respondent a choice between onl( A alternatives and reduces the issues to its simplest terms. Mu%ti@*hoi*e Luestions # multiple-choice *uestion refers to one+ which provides several set of alternatives. choice *uestions can be used when an issue has more than two aspects. ultiple-

0&> 5ERIOD OF T'E STUD2

#ccording to the Universit( of pro6ect. Manuar(8 focusing on the stud( of compan( as whole and identif(ing the problems and framing the title+ collecting information as well as details raring industr( and also framing ob6ectives. %ebruar(8 framing of *uestionnaire for data collection+ information collected through *uestionnaire for data collection and interpretation. arch8 "esearch has been done b( the researcher such as+ anal(sis the data+ tabulated+ and interpreted. %rom the interpretation the researcher list out certain findings+ adras Terms pro6ect is from the period of >st Manuar( to arch F>st. So+ the F months are divided according to the following manner in order to be an effective

65

suggestion+ conclusion and rough cop( submission for correction+ after the correction fair cop( was prepared and submitted.

0&H& MET'OD OF DATA CO//ECTION

To know the response+ the researcher used *uestionnaire method. $t has been designed as a primar( research instrument. @uestionnaires were distributed to respondents and the( were askedto answer the *uestions given in the *uestionnaire. The *uestionnaires were used as an instrumentation techni*ue+ because it is an important method of data collection. The success of the *uestionnaire method in collecting the information depends largel( on proper drafting. So in the present stud( *uestions were arranged and interconnected logicall(. The structured *uestionnaire will reduce both interviewers and interpreters bias. %urther+ coding and anal(sis was done for each *uestion,s response to reach into findings+ suggestions and finall( to the conclusion about the topic.

0&H&1 T25ES OF DATA

!ver( decision poses uni*ue needs for information+ and relevant strategies can be developed based on the information gathered through research. "esearch is the s(stematic ob6ective and e)haustive search for and stud( of facts relevant to the problem "esearch design means the framework of stud( that leads to thecollection and anal(sis of data. $t is a conceptual structure with inwhich research is conducted. $t facilitates smooth sailing of various research operations to make the research as effective as possible.

0&H&25RIMAR2 DATA
1rimar( data are those collected b( the investigator himself for thefirst time and thus the( are original in character+ the( are collected for particular purpose.# well-structured *uestionnaire was personall( administrated to theselected sample to collect the primar( data.

0&H&3SECONDAR2 DATA
Secondar( data are those+ which have alread( been collected b( someother persons for their purpose and published. Secondar( data areusuall( in the shape of finished products. Two t(pes of secondar( data were collected for the preparation of thepro6ect work8 Inte na% Data was generated from compan(,s brochures+ manualsand annual reports

66

E"te na% Data< on the other hand+ was generated from magazines+ research books+ intranet and internet 2websites3.

0&JTOO/S USED FOR ANA/2SIS OF DATA

>. Simple percentage anal(sis A. .eighted score method F. Chi- s*uare anal(sis

0&J&1SIM5/E 5ERCENTA7E ANA/2SIS

1ercentage refers to a special kind of ratio percentage are used to describe relationship.

1ercentageZ

No. of. Customers ) >?? Total No. of Customers

0&J&2WEI7'TED SCORE MET'OD

$n weighted score method the weights are obtained b( multipl(ing the rating given with the fre*uenc(+ this gives a ver( basic idea as to the factor carr(ing highest to lowest weight.

.eighted averageZ

"ating ] %re*uenc( Total No. of "espondents

0&J&3C'I@ SCUARE ANA/2SIS

[A test was first used b( Rarl 1earson for testing the significance of discrepanc( between the e)perimental values and the theoretical value obtained under theor( of h(pothesis. This test is known as chi- s*uare test of goodness of fit. Rarl 1earson proved that the statistic.

[A-\ 2oi-!i3A

!i

!i Z Column Total ) "ow Total 0rand Total

67

.here8 Oi refers to the observed fre*uenc( !i refers to the e)pected fre*uenc(

0&K SCO5E OF T'E STUD2

This stud( is limited to the customers with in Chennai cit(. The stud( will be able to reveal the preferences+ needs+ satisfaction of the customers regarding the banking services+ $t also help banks to know whether the e)isting products or services the( are offering are reall( satisf(ing the customers, needs.

0&I /IMITATIONS OF T'E STUD2

#lthough the stud( was carried out with e)treme enthusiasm and careful planning there are several limitations+ which handicapped the research vise+

1& Time Const aints:

The time stipulated for the pro6ect to be completed is less and thus there are chances that some information might have been left out+ however due care is taken to include all the relevant information needed.

2& Sam#%e si.e:

9ue to time constraints the sample size was relativel( small and would definitel( have been more representative if $ had collected information from more respondents.

3& A**u a*-:

$t is difficult to know if all the respondents gave accurate informationT some respondents tend to give misleading information. 0. $t was difficult to find respondents as the( were bus( in their Schedule and collection of data was ver( difficult. Therefore+ the stud( had to be carried out based on the availabilit( of respondents

68

69

DATA ANA/2SIS ? INTER5ERTATION

DATA ANA/2SIS ? INTER5RETATION

DATA ANA/2SIS
#nal(sis is the process of placing the data in an ordered form+ combining them with the e)isting information and e)tracting the meaning from them. $n other words anal(sis is an answer to the *uestions what message is conve(ed b( each group of the data &which are otherwise raw facts are unable to give meaning full information. # raw data become an information onl( when the( are anal(zed and put in a meaning form.

70

INTER5RETATION
$nterpretation is a process of relating various bits of information to e)isting information. $nterpretation attempts to answer well+ what relation e)isting between the findings to research ob6ectives and h(pothesis framed for the stud( in the beginning.

TAB/E H&1 T25E OF ACCOUNT TO O5ERATE WIT' BAN6

S/& NO

ACCOUNT T25E

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS KIN AAN >HN >FN

> A F E

Saving #ccount Current #ccount %i)ed 9eposit N"$ #ccount

KI AA >H >F

71

Ana%-sis: %rom the above table it could be inferred that KIN of the customers are choosing savings account and ver( few of about >FN prefer N"$ #ccount.

Inte # etation:

ost of the respondents are preferring savings account. 1resentl( the bank

offers varieties of account services to the customer.

C7#"T D.>

72

TAB/E H&2

Fa*i%it- /e3e% of IOB than SBI ? 'DFC Ban+

73

S/& NO

FACI/IT2 /E1E/

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS AHN EFN AFN HN >??N

> A F E

!)cellent 0ood Satisfactor( 1oor Total

AH EF AF H >??

Ana%-sis: %rom the above table it could be inferred that EFN of the customers are satisfied with the service and *ualit( of products of their bank. Onl( HN of customers are sa(s poor facilit( in $O'. Inte # etation: ost of the respondents sa( $O' offering good facilit( to its customer. 'ut to

the other end few people sa(s the facilities are less.

C7#"T D.A

74

TAB/E H&3

75

IOBAs 1a%ue A$$e$ Se 3i*e

S/& NO

1A/UE ADDED SER1ICE

NUMBER OF RES5ONDENTS >A KH AE H >??

5ERCENTA7E OF RES5ONDENTS >AN KHN AEN HN >??N

> A F E

=oung Star Senior Citizen 1repaid Cards "ecurring 9eposit Total

Ana%-sis: %rom the above table it could be inferred that KHN of the customers are using senior citizen service and onl( HN are using recurring deposit scheme.

Inte # etation:

ost of the respondents are utilizing the value added service as senior citizen

accounts. 'ut rarel( ver( few people are choosing recurring deposit account.

C7#"T D.F

76

TAB/E H&0

5 o$u*t Ratin,s of IOB f om Othe s

77

S/& NO

5RODUCT RATIN7

NUMBER OF RES5ONDENTS >D DA A? A >??

5ERCENTA7E OF RES5ONDENTS >DN DAN A?N AN >??N

> A F E

!)cellent 0ood 'etter 1oor Total

Ana%-sis: %rom the above table it could be inferred that DAN of the customers rate $O' products as 0ood. Onl( AN of the people "ate $O' products as 1oor.

Inte # etation:

ost of the respondents are rating the products as good.

oderate peoples are

rating as e)cellent. Onl( few people in the customers are rating the $O' products as poor.

C7#"T D.E

78

TAB/E H&>

REFERRIN7 IOB TO OT'ERS

79

S/& NO

REFERRIN7 IOB

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS HDN >IN DN >??N

> A F

=es No Not Sure Total

HD >I D >??

Ana%-sis: %rom the above table it could be inferred that HDN of the customers are read( to refer $O' to others. Onl( DN of customers are not sure what to do.

Inte # etation:

ost of the respondents are obviousl( read( to refer $O' to their friends+

relatives and others. 'ut few of them are not sure on this decision also some people are straight forward in not referring $O' to others.

C7#"T D.K

80

TAB/E H&H

Re%ationshi# 4ith IOB

81

S/& NO

IOB ACCOUNT O5ERATIONS

NUMBER OF RES5ONDENTS >H KK >H >> >??

5ERCENTA7E OF RES5ONDENTS >HN KKN >HN >>N >??N

> A F E

^ > =ear >-K =ears K->? =ears _>? =ears Total

Ana%-sis: %rom the above table it could be inferred that KKN of the customers are having relationship with the bank for about >-K (ears. Onl( >>N of customers are having more than >? (ears of relationship with $O'.

Inte # etation: K (ears.

ost of the respondents are satisfied with the service offered b( $O'. 1resentl(

the bank has more customers who have the account with them for more than a (ear and less than

C7#"T D.D

82

TAB/E H&J

5URIT2 OF 7O/D OFFERED IN IOB

83

S/& NO

7O/D 5URIT2 IN IOB

NUMBER OF RES5ONDENTS > D? C F? >??

5ERCENTA7E OF RES5ONDENTS >N D?N CCN F?N >??N

> A F E

>??N CC.CCN CCN CC.CN Total

Ana%-sis: %rom the above table it could be inferred that D?N of the customers believe that the gold offered b( the $O' are CC.CCN pure. Onl( >N thinks that the purit( of good offered b( $O' is >??N.

Inte # etation:

ost of the respondents have the clear idea on the purit( of the gold. Since gold

cannot offered in >??N pure it is said to be in CC.CCN pure.

C7#"T D.H

84

TAB/E H&K

Best Insu an*e 5 o$u*t in IOB

85

S/& NO

INSURANCE 5RODUCT

NUMBER OF RES5ONDENTS >K A? K D? >??

5ERCENTA7E OF RES5ONDENTS >KN A?N KN D?N >??N

> A F E

Ta) Saver $nvestment Securit( #ll the #bove Total

Ana%-sis: %rom the above table it could be inferred that D?N of the customers choose the entire insurance product for their benefits. Onl( KN of the customers choose the insurance product offered them securit(.

Inte # etation: in $ndia.

ost of the respondents are investing in $O' for ta) saving+ investment and

securit( for their mone(. This shows that the customers believe $O' has a best insurance market

C7#"T D.I

86

TAB/E H&I

OT'ER MABOR SER1ICES IN IOB

87

S/& NO

OT'ER SER1ICES IN IOB

NUMBER OF RES5ONDENTS >D KE AF H >??

5ERCENTA7E OF RES5ONDENTS >DN KEN AFN HN >??N

> A F E

Pisa Credit Card Pisa 9ebit Card $O' %ine 0old %ore) !)change Total

Ana%-sis: %rom the above table it could be inferred that KEN of the customers feel the Pisa 9ebit Card is the service other than the general service. Onl( HN of the people prefer to %ore) e)change.

Inte # etation:

ost of the respondents are utilizing the additional service of visa debit card

from $O'. 'ut onl( few people are utilizing the %ore) e)change and other services from $O'.

C7#"T D.C

88

TAB/E H&1G

7O1ERNMENT BUSINESS SC'EMES T'ROU7' IOB

89

S/& NO

7O1ERNMENT BUSINESS SC'EME

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS

> A F

1ension 1a(ment 1% Scheme Senior Citizen #ccount

E? AH F

E?N AHN FN

#ll the above Total

F? >??

F?N >??N

Ana%-sis: %rom the above table it could be inferred that E?N of the customers are pension pa(ment account holders. Onl( FN of the account holders are senior citizen account holders in the government retired account holders

Inte # etation:

ost of the respondents are having the pension pa(ment in $O' since man( of

the customers are government retired emplo(ees. 7ere few customers are senior citizen account holders. One- third of the people have using the all schemes.

C7#"T D.>?

90

TAB/E H&11

7O1ERNMENT TA= CO//ECTION IN IOB

91

S/& NO

7O1ERNMENT TA= CO//ECTION

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS

> A F E

Sales Ta) $ncome Ta) Palue #dded Ta) #ll the above Total

>C AE H K? >??

>CN AEN HN K?N >??N

Ana%-sis: %rom the above table it could be inferred that K?N of the customers are pa(ing all the government ta)es in $O'. Onl( HN of the customers are pa(ing onl( value added ta) in $O'.

Inte # etation:

ost of the respondents feel that $O' is the good place to pa( all t(pe of

government ta)es. #lso this makes sure $O' is offering best class service for ta) pa(ing.

C7#"T D.>>

92

TAB/E H&12

AWARNESS AND SATISFACTION /E1E/ OF 1ARIOUS /OANS

93

S/& NO

/OAN SC'EME

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS IN >KN HAN KN >??N

> A F E

1ushpaka Li*uirent Subh 0ruha Pid(a Mothi Total

I >K HA K >??

Ana%-sis: %rom the above table it could be inferred that HAN of the customers are aware of the Subh 0ruha Loan. Onl( KN of the customers are not sure on the vidh(a Mothi.

Inte # etation:

ost of the respondents are #ware about the Subh 0ruha in $O'. 'ut few

customers are not so.

C7#"T D.>A

94

TAB/E H&13

/OC6ER FACI/IT2 A1AI/IN7 CUSTOMER

95

S/& NO

/OC6ER FACI/IT2 5REFERENCE

NUMBER OF RES5ONDENTS

5ERCENTA7E OF RES5ONDENTS

> A F E

'usiness 1eople 0overnment Staff 'ank Staff 7ouse .ife,s Total

K? F? >F H >??

K?N F?N >FN HN >??N

Ana%-sis: %rom the above table it could be inferred that K?N of the customers using locker facilit( are business class people. Onl( HN of the customers are house wife,s using locker facilit(.

Inte # etation:

ost of the respondents sa( the( are utilizing the locker facilit( in $O'. The

main pla(ers are business class people. %ollowed b( government staff,s and then bank staff,s.

C7#"T D.>F

96

TAB/E H&10

RE/ATIONA/ S'I5 BETWEEN BAN6ER ? CUSTOMER S/& NO RE/ATIONS'I5 NUMBER OF 5ERCENTA7E OF

97

BETWEEN BAN6 ? CUSTOMER > A F E 0ood oderate 'etter 1oor Total

RES5ONDENTS

RES5ONDENTS

>F KI C A? >??

>FN KIN CN A?N >??N

Ana%-sis: %rom the above table it could be inferred that KIN of the customers are have moderate relationship with $O'. Onl( CN of the customers feel relationship between bank J customer is better.

Inte # etation:

ost of the respondents are having a moderate relationship between the bank J

customer. 'ut few customers are feeling it is better and some feel it is poor in relationship.

C7#"T D.>E

98

TAB/E H&1>

FI=ED DE5OSIT INTEREST RATE S/AB OF IOB FROM OT'ER BAN6S

S/& NO

FI=ED DE5OSIT

NUMBER OF

5ERCENTA7E OF

99

RATE > A F E A- FN F- EN K- >?N #bove >?N Total

RES5ONDENTS K AH E? AI >??

RES5ONDENTS KN AHN E?N AIN >??N

Ana%-sis: %rom the above table it could be inferred that E?N of the customers are satisfied with the interest rate slab. Onl( KN of customers are not satisfied.

Inte # etation:

ost of the respondents are satisfied with the fi)ed rate slab with the bank.

7ence it is offering the interest rate at minimum level. #lso few people are not aware of the interest rate of fi)ed deposit in $O'.

C7#"T D.>K

100

TAB/E H&1H

O5ENION ABOUT T'E C'AR7ES /EI1ED B2 IOB

101

S/& NO > A F

C'AR7ES 7igh oderate Low Total

NUMBER OF AD DE >? >??

5ERCENTA7E OF RES5ONDENTS ADN DEN >?N >??N

/EI1ED B2 IOB RES5ONDENTS

Ana%-sis: %rom the above table it could be inferred that DEN of the consumers feel that the charges are high comparativel( from other banks. Onl( >?N of consumers are not satisfied in charges levied b( $O'.

Inte # etation:

ost of the respondents are not satisfied the charges levied b( $O'. Customers

are e)pecting the charges to be reduced to get more benefit from the bank.

C7#"T D.>D

102

TAB/E H&1J

'OW DO 2OU 6NOW IOB

103

S/& NO

'OW 2OU 6NOW IOB

NUMBER OF

5ERCENTA7E OF

RES5ONDENTS RES5ONDENTS A? D> >I A?N D>N >IN >N >??N

> A F E

#dvertisement,s %riends J "elatives #wareness

9irect Selling #gents > Total >??

Ana%-sis: %rom the above table it could be inferred that D>N of the consumers are referred b( friends J relatives for the best service offered b( $O'. Onl( >N of consumers are came b( direct selling agents.

Inte # etation:

ost of the respondents tell the( are referred b( their friends and relatives.

.here ver( few came b( the advertisements and the awareness created b( the bank. Per( less in count are generated b( direct selling agents.

C7#"T D.>H

104

TAB/E H&1K

MOST/2 5REFFERED /OAN OFFERED B2 IOB

105

S/& NO

MOST/2 5REFERRED /OAN

NUMBER OF RES5ONDENTS >? I HA K >??

5ERCENTA7E OF RES5ONDENTS >?N IN HAN KN >??N

> A F E

1ersonnel Loan Commercial Loan 7ousing Loan !ducational Loan Total

Ana%-sis: %rom the above table it could be inferred that HAN of the consumers are choosing housing loan

Inte # etation: ost of the respondents prefer housing loan from $O'. Onl( few of the customers prefer education loan and other loans in $O'

C7#"T D.>I

106

TAB/E H&1I

IS MANA7ER A1AI/AB/E FOR AN2 C/ARIFICATION

107

S/& NO

MANA7ER DISCUSSION

NUMBER OF RES5ONDENTS DI FA >??

5ERCENTA7E OF RES5ONDENTS DIN FAN >??N

> A

=es No Total

Ana%-sis: %rom the above table it could be inferred that DIN of the customers are satisfied since the manager is available for an( clarification. Onl( FAN of the customers sa(s it is not followed in $O'.

Inte # etation:

ost of the respondents are satisfied with the clarification facilit( with

manager. 'ut some customers feel not so.

C7#"T D.>C

108

TAB/E H&2G

ABROAD SER1ICE OUT/ETS OF IOB S/& NO ABROAD NUMBER OF 5ERCENTA7E OF

109

SER1ICES > A =es No Total

RES5ONDENTS CK K >??

RES5ONDENTS CKN KN >??N

Ana%-sis: %rom the above table it could be inferred that CKN of the customers are aware that $O' has the service outlet in abroad. Onl( KN of the customers do not know there are an( branches in abroad.

Inte # etation: abroad outlets.

ost of the respondents are aware that there are branches throughout the world

in important locations. .here we can see that man( people are aware in the branch regarding the

C7#"T D.A?

110

TABLE 6.21

DRAWBACKS/ PROBLEM WITHIN IOB

111

S/& NO > A F

CUSTOMER SU77ESTION =es No Not Sure Total

NUMBER OF RES5ONDENTS ID >A A >??

5ERCENTA7E OF RES5ONDENTS IDN >AN AN >??N

Analysis: %rom the above table it could be inferred that IDN of the consumers are suggesting that there are drawbacks within $ON. Onl( >AN of consumers are sure that there are no internal problems in $O'.

Int !"! tati#n:

ost of the respondents tell that there are some internal problems and

drawbacks in $O'. .here few people sa(that no problem in $O'.

C7#"T D.A>

112

WEI7'TED A1ERA7E MET'OD

TAB/E H&22

113

RATE T'E FACI/ITIES 5RO1IDED AT IOB

FACI/ITIES AT IOB Comfortable seat 7ospitalit( "est "oom 9rinking .ater

7OOD FD KD >F KI

A17 D? FI IH EA

5OOR E E ? ?

WEI7'TED SCORE AFA AEI A>F AKI

WEI7'TED A1ERA7E

RAN6

A.FA $$$ A.EI $$ A.>F $P A.KI $

Inte fe en*e: The drinking water facilit( available at $O' in cathedral branch is mostl( impressive followed b( the hospitalit( service provided b( the customer. Comfortable seating and "est "oom facilit( need to be improved.

T#'L! D.AF DEA/IN7S WIT' IOB

SER1ICE

'I7'

MEDIUM

/OW

NONE

WEI7'TED

RAN6

114

SCORE Stock 'roking $nsurance Ta) Saving T$N %acilit( 21#N+ T9S3 utual %und Other Services HI AE >H AC IA I DC DF AD HE KI FA E? AD DE >F FD DE >F IH CF IE AE CD E>A AAE >?H AEI FCI >KA

A17 A.?D $ >.>A $P ?.IE P >.AE

$$$

?.HD P$ >.CC $$

Inte fe en*e: The various service provided b( $O'. Share and Stock 'roking rank first as the highl( sorted after service b( customer. %ollowed b( the investment in the mutual funds+ while awaiting T$N facilit( and insurance services are moderatel( utilized b( the customer b( the ta) saving scheme and other services are less.

T#'L! D.AE

RATE T'E CUA/IT2 OF SER1ICES 5RO1IDED B2 IOB

WEI7'TED FACTOR E=CE//ENT 7OOD O6 5OOR SCORE $mmediate attention KA E> F E ADD A1ERA7E ?.EF $ RAN6

115

online service skill of emplo(ee time taken for service *ualit( of advice product J service details bank timing 1amphlets

A> >F A? >F >C I >E

E? AK AC AI AE AA >H

FH KK EK EC EK KA EC

A H D I >> >I A?

A?K >EC

?.FK $$$ ?.AI P ?.FC

AFF >DH

$$

?.F? P ?.F>

>HE >EH >K?

$P

?.AI P$ ?.AI P$$

Inte fe en*e: %rom the above table it can be interfered that the immediate attention followed b( time taken for service on online applicable b( the users while *ualit( of advice displaced of products dealt / availabilit( of application. #lso office timing should be improved.

C'I SCUARE MET'OD

TAB/E H&2>
SER1ICE 5REFERRED B2 T'E MOST OF T'E 5EO5/E 'O @ There is no significant difference in the length of the service of the customer in $O' and their t(pe of service is available. '1 @ There is a significant difference in the length of the service of the customer in $O' and their t(pe of service is available. OBSER1ERED FRECUENC2:

116

ost of the service preferred b( customer. Customer with $O' ^ > (ears >-K =ears K ->? =ears _>? =ears TOT#L #T K FK >? K KK $nternal 'ank E >K F F AD A ? A A D obile "etail D K A > >E TOT#L >H KK >H >> >??

E=5ECTED FRECUENC2
>? F? C D KK K >F E A AE F F > > I F H A > >F A> KF >D >? 1GG

C'I@SCUARE TAB/E:

117

O@ E

K FK >? K E >K F F A ? A A D K A >

TotalZ >??

>? F? C D K >F E A F F > > F H A >

-K K > -> -> A -> > -> -F > > F -A ? ?

AK AK > > > E > > > C > > C E ? ? \

A.K? ?.IF ?.>> ?.>H ?.A? ?.F> ?.AK ?.K? ?.FF F.?? >.?? >.?? F.?? ?.KH ? ? Z>F.HH

Z >F.HH

118

DE7REE OF FREEDOM N 8R@19 8C@13

Z 2E->3 2E->3 v ZF T#'UL#T!9 P#LU! Z H.IA C#LCUL#T!9 P#LU! Z >F.HH Therefore+ the calculated _ Table Palue 7? is re6ected

INFERENCE
The calculated value is greater than the tabulated value 7? is re6ected. This implies that the significant difference in the length of the service of customer in $O' and the t(pe of the service available.

FINDIN7S OF T'E S2UD2

119

FINDIN7S OF T'E STUD2

KIN of the respondents are opinion that the customers are choosing saving account in $O'. EFN of the respondents are opinion that the customers are satisfied with the service and the *ualit( of products in $O'. KHN of the respondents are opinion that the customers are using senior citizen services in $O'. DAN of the respondents rated that $O' products is good. HDN of the respondents are read( to refer $O' to others. KKN of the respondents have relationship with the $O' for about >-K (ears. D?N of the respondents are opinion that the gold offered in $O' is CC.CCN pure. D?N of the respondents are opinion that all the insurance products of $O' are beneficial. KEN of the respondents are opinion that the Pisa 9ebit card is the ma6or service in $O'. E?N of the respondents are opinion that the( are pension pa(ment account holder in $O'.

120

 K?N of the respondents are opinion that the( are pa(ing all the government ta)es through $O'. HA of the respondents are opinion that the( are aware of Subh 0ruha loan product of $O'. K?N of the respondents are utilizing the locker facilit( in $O' b( business class people. HAN of the respondents are opinion that the publicit( of $O' to the people is done through friends J "elatives. DEN of the respondents are sure that the levied charges b( $O' are low. HAN of the respondents are opinion that the customers prefer 7ousing Loan from $O'. DIN of the respondents are satisfied with the manager availabilit( for an( clarification. KIN of the respondents are opinion that the customers have moderate relationship with $O'. CKN of the respondents are aware of the $O' service outlets in abroad. K?N of the respondents agree that customers have some drawbacks and problems in $O'. E?N of the respondents are satisfied with the interest rate slabs. FDN of the respondents are impressivel( followed b( the hospitalit( service of drinking water in cathedral branch. FFN of the respondents are opinion that the stock broking ranks first as the highl( sorted after service b( customer in $O'. FDN of the respondents are opinion that the immediate attention on an( complaints. H>N of the respondents are opinion that the( do not e)pect an( more service from $O'. KKN of the respondents are opinion that the customers prefer #T services.

121

SU77ESTIONS ? RECOMMENDATIONS

SU77ESTIONS ? RECOMMENDATIONS

122

.ith regard to banking products and services+ customers respond at different rates+ depending on the consumer,s characteristics. 7ence $ $O' should tr( to bring their new product and services to the attention of potential earl( adopters. 9ue to the intense competition in the financial market+ $O' should adopt better strategies to attract more customers. "eturn on investment compan( reputation and premium outflow are most preferred attributes that are e)pected b( the respondents. 7ence greater focus should be given to these attributes. $O' should adopt effective promotional strategies to increase the awareness level among the customers. $O' should ask for their consumer feedback to know whether the customers are reall( satisfied or dissatisfied with the service and product of the bank. $f the( are dissatisfied+ then the reasons for dissatisfaction should be found out and should be corrected in future. The $O' brand name has earned a lot of goodwill and en6o(s high brand e*uit(. #s there is intense competition+ $O'should work hard to maintain its position and offer better service and products to customers. The bank should tr( to increase the 'rand image through performance and service then+ onl( the customers will be satisfied. a6orit( of the people find banking important in their life+ so $O' should emplo( the strategies to convert the want in to need which will enrich their business. The bank ma( conduct events/ schemes week or months for promoting products. # separate information desk marked as an investment consultanc( provider ma( be established for catering to the needs of the customers. # refined data base ma( be used for sending personal reminders to the customers. Strategic points ma( be identified for the displa(ing the potters. #ll the communications ma( be bear the information/ logo of the different schemes. Cost effective+ visuall( appearing tools like bulletin board ma( be used for promotion. 9irect mailers ma( be sent to co-operate account holder.

123

CONC/USION

124

CONC/USION

The pro6ect entitled &T'E STUD2 ON CUSTOMER SATISFICATION ON T'E 5RODUCTS AND SER1ICES OFFERED B2 IOBF has helped me in stud(ing satisfaction about services and products offered to customers. Since the opening up of the banking sector+ private banks are in the fra( each one tr(ing to cover more market share than the other. =et+ $O' is far behind S'$. $O' must also be alert what with 1rivate 'anks 2$C$C$+ 79%C3 breathing down its neck. $ am sure the bank will find m( findings relevant and $ sincerel( hope it uses m( suggestions enlisted+ which $ hope will take them miles ahead of competition. $n short+ $ would like to sa( that the ver( act of the concerned management at $O' in giving me the 6ob of criticall( e)amining consumer satisfaction towards financial products and services of the compan( is a step in their continual mission of making all round improvements as a means of progress.

$ am sure the bank has a ver( bright future to look forward to #nd will be a trailblazer in its own right.

125

BIB/O7RA5'2

126

BIB/O7RA5'2

.ebsites
www.wikipedia.com www.thehindu.com www.new(orktimes.com www.economictimes.com www.iob.in

'ooks "eferred
&S!"P$C! Qeithaml.# Tata c 0raw-7ills+ 1ublications #R!T$N0+

New 9elhi

&'US$N!SS ST#T$ST$CS 0.1.0upta Sultanchand 1ublication umbai &0eneral 'anking $O' !dition Chennai. &"esearch Rothari.C." New #ge $nternational 1ublication ethodolog(

127

New 9elhi

ANNE=URE
NAME A7E SE= T25E OF CUSTOMER TO IOB : : : :

>. .hat t(pe of account do (ou have in bank< a. Savings #ccount b. Current #ccount c. %i)ed 9eposit d. N"$ A. $O' 1rovide better facilities than S'$ J 79%C 'ank a. !)cellent b. 0ood c. Satisfied d. 1oor F. .hat t(pe of value added service provide b( $O'< a. =oung Star b. Senior Citizen c. 1repaid Cards d. "ecurring 9eposit E. 7ow do (ou rate the products and services offered b( $O' than others< a. !)cellent b. 0ood c. 'etter d. 1oor K. .ill (ou suggest $ndian Overseas 'ank to (our friends/ "elatives for its service< a. =es b. No

128

c. Not Sure D. 7ow long have (ou been banking with $O' a. ^> (ear b. >-K (ears c. K->? (ears d. _>? (ears H. $O' offerings ```` 1urit( of fine gold to their customers a. CC.>CN b. CC.CN c. CC.CCN d. >??N I. .hat is (our main concern while taking an $nsurance polic( a. Ta) benefits b. Securit( c. $nvestment/Saving d. #ll the above C. .hat are the other products J services offered b( $O' to the customers a. Pisa $nternational Credit Cards b. Pisa 9ebit Card c. $O' fine 0old d. %ore) !)change >?. .hat are the government business schemes available for the customers through the banks< a. 1ension pa(ment scheme b. provident fund scheme >CDI c. Senior Citizen Scheme A??E d. #ll the above >>. .hat t(pe of ta)es can be pa( to the government through the banks< a. Sales ta) b. $ncome Ta) c. Palue #dded Ta) d. #ll the above

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>A. 1lease provide us with $nformation about (our awareness J satisfactor( level for the schemes a3 1ushpaka b3 Subh 0ruha c3 Li*uirent d3 Pidh(a Mo(thi >F. .hat t(pe of customer mostl( using locker facilities in the bank< a. 'usiness people b. government staffs c. bank staffs d. house wife,s >E. 7ow is the relational ship between the customer and the bankers< a. 0ood b. oderate c. 'etter d. 1oor >K. 7ow the fi)ed deposit interest rate slab varies in $O' from other banks a. AN - FN b. FN - KN c. KN- >?N d. #bove >?N >D. 0ive (our opinion about the charges levied b( $O' for the services provided a. 7igh b. oderate c. Low d. 7igh for certain services >H. 7ow would (ou know the products and services of $O' a. #dvertisements b. friends J "elatives c. #wareness d. 9irect Selling #gents

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>I. .hich t(pe of loan is mostl( preferred b( the customers a. 1ersonnel Loan b. Commercial Loan c. 7ousing Loan d. !ducational Loan

>C. Can we have the discussion with the bank manager in case of an( complaints or clarifications< a. =es b. b. No A?. 9oes the bank have an( other outlets in abroad to server the customers globall(< a. =es b. No A>. Specif( an( drawbacks/ problems that (ou faced with $O' a. =es b. No c. None AA. %acilit( that used b( the customer in $O'< 0ood Comfortable seat 7ospitalit( "est "oom 9rinking .ater #verage 1oor

AF. .hat is the Level of business with $O' from the da( >< SER1ICE Stock 'roking 'I7' MEDIUM /OW NONE

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$nsurance Ta) Saving T$N %acilit( 21#N+ T9S3 utual %und Other Services

AE. .hat are the *ualities of service provided in $O'< SER1ICE $mmediate attention online service skill of emplo(ee time taken for service *ualit( of advice product J service details bank timing 1amphlets E=CE//ENT 7OOD O6 5OOR

AK. .hich t(pe of service preferred the most of (ou a. #T c. Service b. $nternet 'anking obile 'anking d. "etail 'anking

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