DESERTATION RESEARCH REPORT A Comparative Study of Customer satisfaction In the Public Sector Banks

SUBMITTED FOR
The partial fulfillment of Master of Business Administration

BY PRAMOD KUMAR YADAV GUIDED BY DR. N. C. BANSAL

SRM UNIVERSITY, MODINAGAR, NCR CAMPUS, DELHI

ACKNOWLEDGEMENT
This project would not have been possible without the guidance, help and cooperation of a number of people. I extend my gratitude to all those people who helped me in some or other way to complete my project. Also I would like express my deepest sense of gratitude to Dr. N. C. Bansal, my faculty guide in providing a sense of direction and continuous support in my report and his inputs regarding the conduct and execution of this report. I wish to express my heart felt gratitude to all friends who have been associated with this study in many small and big ways.

Pramod K Yadav

DECLARATION

I, PRAMOD KUMAR YADAV student of MBA from SRM UNIVERSITY, hereby declare that I have completed Dissertation on Customer satisfaction in the Indian Banking Sector as part of the course requirement.

I further declare that the information presented in this project is true and original to the best of my knowledge.

(Reetesh Kumar Singh)

CONTENTS

Acknowledgment Declaration 1. INTRODUCTION.

1.1 History of banking sector 1.2 Emerging trends in banking sector 1.3 Customer satisfaction 1.4 Rural banking 1.5 Foreign banks in India 1.6 Nationalization of banking sector 1.7 Upcoming foreign banks in India 2. LITERATURE REVIEW. 3. NEED FOR RESEARCH.. 3.1 Need for measuring Customer satisfaction 3.2 Expectations and customer satisfaction 3.3 Factors Affecting customers towards particular Banks

4. RESEARCH METHODOLOGY. 4.1 Objectives of research 4.2 Research design 4.3 Sources of data 4.4 Research instrument. 5. PUBLIC SECTOR BANKS AND PRIVATE SECTOR BANKS 5.1 Public sector banks 5.2 Private sector banks

5.3 Difference between public sector banks and private sector banks 5.4 Difference between public sector banks and private sector banks in terms of Customer satisfaction. 5.5 Reasons of dissatisfaction in public sector banks. 5.6 Recommendations for public sector banks. 6. STRATEGIES OF BANKS TO SATISFY THEIR CUSTOMERS. 6.1 Relationship marketing (CRM) in banking sector 6.2 Ten ways to help you improve your customer service 6.3 Service quality development 6.4 Improving customer satisfaction 6.5 Dimensions of service quality in the Indian retail Banking Environment 6.6 Marketing strategies 6.7 Measuring Customer satisfaction in the Indian Banking sector

7. IMPACT OF ATM ON CUSTOMER SATISFACTION.. 8. ANALYSIS & INTERPRETATION 9. CONCLUSION & SUMMARY 10. LIMITATIONS.

References Questionnaire

LIST OF TABLES TABLE NO.

Table 4.4(a) Table 4.4(b) Table 4.4(c) Table 4.4(d) Table 4.4(e) Table 4.4(f) Table 8(a) Table 8(b) Table 8(c) Table 8(d) Table 8(e) Table 9(a)

TITLE
Demographics(Gender) Marital status Monthly family income Age Education Occupation Customer satisfaction level in SBI Customer satisfaction level in PNB Customer satisfaction level in IDBI Customer satisfaction level in ICICI Customer satisfaction level in HDFC Ranking score sheet of customer perception

PAGE NO. 25 26 26 27 28 29 54 55 56 56 57 61

LIST OF GRAPHS GRAPH NO. TITLE PAGE NO.

Graph 4.4(a) Graph 4.4(b) Graph 4.4(c) Graph 4.4(d) Graph 4.4(e) Graph 4.4(f) Graph 8(a) Graph 8(b) Graph 8(c) Graph 8(d) Graph 8(e) Graph 9(a)

Demographics(Gender) Marital status Monthly family income Age Education Occupation Customer satisfaction level in SBI Customer satisfaction level in PNB Customer satisfaction level in IDBI Customer satisfaction level in ICICI Customer satisfaction level in HDFC Ranking score sheet of customer perception

25 26 27 28 29 30 55 55 56 56 57 62

1. INTRODUCTION
The Purpose of this study to investigates relationship dimensions and studies the differences in perception of customers with respect to services provided by two Indian banks. The relationship dimensions which lead to customer satisfaction have been identified. This study reports on the different satisfaction levels of customers of public sector banks (SBI, PNB) with respect to the services provided by their banks

1.1 HISTORY OF THE BANKING SECTOR

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The Bank of Bengal, which later became the State Bank of India. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political 8

figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The favour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalized banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". The State Bank of India (SBI) is the oldest and largest bank in the country. Its origins go back to the first decade of the 19th century, when the Bank of Calcutta was established on 2 June 1806. The bank got its present name after an Act of Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. Today, SBI has a phenomenal 9,559 branches and its ATM network is spread across 6,473 of its own locations& total 8,000ATMs including of those of its associate banks. State Bank of India is a successor to Imperial Bank of India, which was established in 1921.The bank, came into being on 1.7.1955 through the State Bank of India Act, 1955. States of India joined the State Bank Group, as subsidiaries under the State Bank of India (Subsidiaries Banks) Act, 1959.

1.2 EMERGING TRENDS IN BANKING SECTOR

The liberalization process initiated by the government about a decade ago has changed the landscape of several sectors of the Indian economy. The financial sector like other sectors is also going through major changes as a consequence of economic reforms. The consumption-led boom in India has fuelled robust demand for financial products especially in the banking domain. Emerging competition has generated new expectations from existing and new customers. There is an urgent need to introduce new and more 9

attractive customer-friendly products and services. The banking sector presently is at an inflexion point. Existing products need to be delivered in an innovative and cost-effective manner by taking full advantage of emerging technologies. Technology has swiftly become a business driver rather than a business enabler. This sector has seen phenomenal growth in terms of technology infusion and adoption in the recent past such as: Internet and Mobile Banking, CRM, etc. With increasing competition and tightening of prudential norms by the Reserve Bank, the players in the banking industry, both Indian and global are taking turns towards mergers and acquisitions. Only banks having adequate infrastructure, technology, economies of scale and well connected network of branches will be able to survive and meet the challenges of ever increasing competition and customer expectations. The book is divided into two sections. Section-I extensively covers the trends, issues and challenges related to the technology i.e. ATMs, e-banking, data warehousing and data mining, CRM solutions, etc. Section-II covers other contemporary issues in the banking sector such as Basel II, financial inclusion, service quality, risk management, banc assurance, retail banking, universal banking etc. The book shall serve as a rich reference resource for decision makers in the banking industry, researchers, academicians and students. The traditional distinctions between banking and other financial services like insurance on one side; and between commercial banking, developmental banking and investment banking are getting blurred. The emergence of universal banking and banc assurance are clearly pointers. This global convergence of financial services may gather further momentum in the years to come. The banking and insurance sector reforms have encouraged private sector players to make forays into the business in collaboration with major international companies. This new scenario will witness financially sound and experienced players transforming the industry with best practices in product development, operational efficiency, marketing capability, service focus, and tech savy orientation. Thus there is a need for intensive, futuristic and career oriented programs in these two areas: Banking and Insurance. These

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developments in Banking and Insurance industry call for competent and professionally trained managers", Increasing competition, thinner spreads and introduction of new technology driven products are some of the trends that the Indian banking system is experiencing. "Recent trends in Indian banking have reflected the efforts of the major players to adapt to a rapidly liberalizing and globalizing environment. While the impact of these changes is possibly a subject of debate, there is one group which is not complaining the customers, the beneficiaries of the process of liberalization," observed Amitabh Guha, State Bank of Travancore. Further, the technology oriented banking has become one of the latest mantras of success in the market, especially to win over the customers. To this, says SBI Chairman AK Purwar, "Indian banks need to fuel the market by bringing new products at par with the international standards, extending ATM facility to rural areas and vibrant networking countrywide to compete with the new generation and the MNC banks in India" As T.S. Anantharaman, Financial Analyst, mentioned, "The savings and investments scenario in our country has undergone total change in the past decade, since the country embarked on a course of liberalization and globalization of its economy With the increasing sophistication of our economy, the variety and type of investments options available to us today have multiplied. Also, with the economy getting more and more integrated with the world economy, rapid changes in the options, instruments, rate of return etc. have become the order of the day." Such a change is visible in respect of shares, mutual funds, fixed income, bank deposits, life insurance, pension plans etc. since change and innovation is involved in this process, and one can legitimately expect an exciting and lucrative career scenario in the banking, finance and insurance sector.

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1.3 CUSTOMER SATISFACTION

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Organizations need to retain existing customers while targeting non-customers; Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products. Satisfaction with banking services is an area of growing interest to researchers and managers. The commercial banking industry like many other financial service industries is facing rapidly changing market. New technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate have presented an unprecedented set of challenges. Intangible assets, particularly brands and customers, are critical to any organization and in todays competitive environment relationship marketing is critical to banking corporate success.

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Banking is a customer oriented services industry. As we know that customer is the king therefore customer is the main focus and customer service is the differentiating factor. Banks have also started realizing that business depends on client service and the satisfaction of the customer and this is compelling them to improve customer service and build relationship with customers. With the current change in the functional orientation of banks, the purpose of banking being redefined. The main driver of this change is changing customer needs and expectations. Customers look for a relationship with bank when they receive benefits from its services. The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges . The banking industry in India has undergone dramatic change post independence. Banks have also starts realizing that business depends on client service and the satisfaction of the customer and this is compelling them to improve customer service and build relationship with customers. With the current changes in the functional orientation of banks, the purpose of banking is being redefined. The main driver of this change is changing customer needs and expectations. Customers In urban India no longer want to wait in long queues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the developments of ATMs, phone and net banking along with availability of service right at the customer doorstep. Further the world class banking experience provided by private and multinational banks with their ever evolving products and services has raised the bar of customer expectations. With the emergence of universal banking, banks aim to provide all banking products and service offering under one roof and their Endeavour is to be customer centric. The Indian banking industry is also embracing technology rapidly. Big players among the private and public sector banks are reengineering and automating their core banking processes.

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1.4 RURAL BANKING

Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focused upon the agro sector. The Haryana State Cooperative Apex Bank Ltd. commonly called as HARCOBANK plays a vital role in rural banking in the economy of Haryana State and has been providing aids and financing farmers, rural artisans, agricultural laborers, entrepreneurs, etc. in the state and giving service to its depositors. National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts.

1.5 FOREIGN BANKS IN INDIA

Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accusative. New policies are introduced by RBI for themThe policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to open branches freely, Main competitors for banking sector. Post offices, Mutual fund, Share market, Insurance, Money lenders, Family and friends, Present scenario banking industry has been undergoing a rapid transformation, Banks today are market driven and market responsive. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discerning and less "loyal" to banks. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction. They have been managing a world of information about customers - their profiles, location, needs, requirements, cash positions, etc. Furthermore, banks have very strong in-house research and market intelligence units in order to face the future challenges of competition, especially customer retention.

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They are focusing on region-specific campaigns rather than national media campaigns as effective strategy for a diverse country like India. Customer-centricity also implies increasing investment in technology. Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs are the major steps taken by the banks in India towards modernization. Services given by banks D-mat account, Lockers, Cash management Insurance product, Mutual fund product, Loans, ECS (Electronic clearance system) Taxes.

1.6 NATIONALIZATION OF BANKING SECTORThe nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. It nationalized 14 banks then. These banks were mostly owned by businessmen and even managed by them. Central Bank of India, Bank of Maharashtra, Dena Bank Punjab National Bank Syndicate Bank, Canara Bank Indian Bank Indian Overseas Bank, bank of Baroda, Union Bank, Allahabad Bank United Bank of India UCO Bank. After that Banks have introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and Net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

1.7 UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign banks in India. This is as an aftermath of the sudden interest shown by Reserve Bank of India paving roadmap for foreign banks in India greater freedom in India. Among them is the world's 15

best private bank by Euro Money magazine, Switzerland's UBS. The following are the list of foreign banks going to set up business in India:Royal Bank of Scotland Switzerland's UBS US-based GE Capital Credit Suisse Group Industrial and Commercial Bank of China

2. LITERATURE REVIEWCustomer satisfaction is an important theoretical as well as practical issue for most marketers and consumer researchers (10). Customer satisfaction can be considered the essence of success in todays highly competitive world of business. Thus the significance of customer satisfaction and customer retention in strategy development for a market 16

oriented and customer focused firm can not be overstated. Consequently, customer satisfaction is increasingly becoming a corporate goal as more and more companies strive for quality in their product and services (11). Customer satisfaction is the feeling or attitude of a customer towards a product or services after it has been used and is generally described as a full meeting of ones expectations (12). Customer satisfaction is a major outcome of marketing activity whereby it serves as a link between the various stages of consumer buying behavior. For instance, if customers are satisfied with particular service offering after its use, then they are likely to engage in repeat purchase and try line extensions (13).A study conducted by Levesque and McDougall (14) confirmed and reinforced the idea that unsatisfactory customer service leads to a drop in customer satisfaction and willingness to recommend the service to a friend. This would in turn lead to an increase in the rate of switching by customers. There can be potentially many antecedents of customer satisfaction as the dimensions underlying satisfaction judgment are global rather than specific (15). However, some argue that customers develop norms for product performance based on general product experiences, and these, rather than expectations from a brands performance, determine the confirmation /disconfirmation process (16). More recent work has argued that in addition to the cognitive components, satisfaction judgments are also dependent upon affective components as both coexist and make independent contributions to the satisfaction judgments (17). Researchers have established some of the key antecedents of customer satisfaction in retail banking with respect to customer satisfaction in the competitive world of business as well as the key antecedents to the formation of overall customer satisfaction (18). The bottom line is that organizations will always be attentive to maximizing profits and their success will be determined by how they manage customer relationships. Marketing has taken some initial steps to place the customer at the center of its efforts, such as information sharing in customer service channels, sales force automation and target market segmentation. Customer profitability management requires a multi-level marketing return on investment analysis covering a series of marketing activities that can be integrated and optimized for a customer or customer segment (19). 17

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Organizations need to retain existing customers while targeting non-customer. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL which provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into a single measurement of performance relative to expectation.

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The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement in terms of their perception and expectation of performance of the service being measured. Because the concept of customer satisfaction is new to many companies, it's important to be clear on exactly what's meant by the term. Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service. The achievement of customer satisfaction leads to company loyalty and product repurchase. There are some important implications of this definition: Because customer satisfaction is a subjective, no quantitative state, measurement won't be exact and will require sampling and statistical analysis. Customer satisfaction measurement must be undertaken with an understanding of the gap between customer expectations and attribute performance perceptions. There should be some connection between customer satisfaction measurement and bottom-line results. "Satisfaction" itself can refer to a number of different facts of the relationship with a customer. For example, it can refer to any or all of the following: Satisfaction with the quality of a particular product or service Satisfaction with an ongoing business relationship Satisfaction with the price-performance ratio of a product or service Satisfaction because a product/service met or exceeded the customer's expectations Each industry could add to this list according to the nature of the business and the specific relationship with the customer. Customer satisfaction measurement variables will differ depending on what type of satisfaction is being researched. For example, 19

manufacturers typically desire on-time delivery and adherence to specifications, so measures of satisfaction taken by suppliers should include these critical variables. Clearly defining and understanding customer satisfaction can help any company identify opportunities for product and service innovation and serve as the basis for performance appraisal and reward systems. It can also serve as the basis for a customer satisfaction surveying program that can ensure that quality improvement efforts are properly focused on issues that are most important to the customer.

3. NEED FOR RESEARCH

While relationships have been extensively studied in marketing channels ,industrial settings, and some consumer setting in western cultural contexts such as Europe ,US, the UK ,and even Australia ,few studies have examined the paradigm in an eastern cultural context such as India. The maturing of services marketing, the increased recognition of

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potential benefits for customer and technological developments are the main factors driving the developments of relationship marketing33.the presence of these factors in the Indian banking sector motivated this research. With banks losing 8% of their clients every year 34.relationship marketing strategy to satisfy customers and improve their profitability has moved to the forefront. For centuries banks have played an important role in financial system of the country. The vital role continues even today although the form of banking has changed today with changing need of the economy and individuals. The Banking system in India has three tiers. There are scheduled commercial banks; the regional rural banks; and the cooperative banks. The scheduled commercial banks constitute those banks which are included in the second schedule of RBI Act 1934.In the organized segment; banking system occupies an important place in nations economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer. Its a well known fact that no business can exist without customers. 3.1 The Need to Measure Customer Satisfaction : Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs.

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They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.

3.2 Expectations and Customer Satisfaction:

Expectations have a central role in influencing satisfaction with services, and these in turn are determined by a very wide range of factors lower expectations will result in higher satisfaction ratings for any given level of service quality. This would seem sensible; for example, poor previous experience with the service or other similar services is likely to result in it being easier to pleasantly surprise customers. However, there are clearly circumstances where negative preconceptions of a service provider will lead to lower expectations, but will also make it harder to achieve high satisfaction ratings - and where positive preconceptions and high expectations make positive ratings more likely.

3.3 Factors affecting customers towards particular bank

Relationship marketing; financial performance; electronic commerce; e-commerce; online banking; electronic banking;; internet banking; information technology; privacy; business research; customer research; business innovation;

4. RESEARCH METHODOLOGY
4.1 OBJECTIVE OF THE RESEARCH The main objective of this study are-

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 To identify customer satisfaction variables which lead to building relationship with customers in the Indian banking sector To study the difference in perception of the customers of the bank towards various services provided by bank. To analyze the satisfaction level of customers with respect to the various service provided by the banks To identify the strategies of banks to satisfy their customers.

4.2 RESEARCH DESIGN: Exploratory design This study is exploratory in nature. It provides a description of contemporary satisfaction parameter in the Indian banking sector. Exploratory research provides insights into and comprehension of an issue or situation. Exploratory research helps to determine the best research design, data collection method and selection of subjects.

4.3 SOURCES OF DATAThere are many sources of data collection, such as secondary data collection and Primary data collection.

Primary data-There are various ways to undertake the gathering of primary data, including conducting surveys to create market data or using other research instruments such as questionnaire.

Sample size- 100 Sample techniques- Convenience sampling Sample area- Allahabad Secondary data
This involves information that already exists somewhere, such as in studies already undertaken on this area as well as published books, articles in journals, articles on the internet and other sources.

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Relationship marketing dimensions were identified by conducting a customer satisfaction survey of five banks in India. The research process involved the following steps. First, a literature review was undertaken to identify what parameters to consider in research. It outlines the previous research with respect to customer satisfaction in the banking industry. Second, in-depth interview were held with customers to establish the evaluation criteria and factors which results in customer satisfaction. Third, a questionnaire was constructed and piloted. Last, the population and sampling procedure were established and methods of data collection and analysis determined. The present research is exploratory in nature and aims to develop hypothesis which can be tested later. It provides description of contemporary satisfaction parameters in the banking industry. It is not explanatory as it does not test any casual relationships.

4.4 RESEARCH INSTRUMENT

The questionnaire was designed from the literature review as well as from the results of in-depth interviews. It included sixteen variables which determined the satisfaction of the customers of the two banks chosen for the study. Both of these banks were national banks namely ,state Bank of India(SBI) and Punjab National Bank(PNB) . SBI and PNB were chosen because they have the largest network of branches in India. These banks have a strong retail presence and offer a comprehensive range of information to the customer. They have taken initiatives to satisfy customers and provide value added services. Data from 100 customers were collected. The banks were contacted individually to obtain the contact addresses of the customers and the questionnaire was administered to customers who had been with the bank for three years. The questionnaire is divided in to five sections. The second part of questionnaire dealt with respondent satisfaction with respect to services and the third part dealt with variables which involve transactions. Customer satisfaction was recorded on a 7 point semantic differential scale ranging from extremely good/satisfied to extremely bad/dissatisfied. The other parts of the

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questionnaire recorded information about customers experience with their respective banks, their banking habits and demographic information. Demographic profile of the customers Table 4.4(a) Demographics 1. Gender Male Female 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Male Female 69.9% 30.1%

Graph 4.4(a) INTERPRETATION-There are 69.9% male and 30.1% female respondent in my study.

Table 4.4(b) - Marital status Married Unmarried Other 50.8% 48.5% 0.7%

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60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Married Unmarried Other

Graph 4.4(b) INTERPRETATION- There are 50.8% married and 48.5% unmarried respondent in my study. Table 4.4(c)-Monthly Family income Less than Rs10000 Rs10000-20000 Rs20000-30000 Rs30000-40000 More than 40000 19.6% 28.6% 27.0% 16.2% 8.5%

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30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Rs10000-20000 Rs20000-30000 Rs30000-40000 More than 40000

Graph 4.4(c) INTERPRETATION- There are 19.6% ,28.6%,27.0%,16.2%,8.5% respondent whose monthly family income is less than Rs10000,Rs10000-20000,Rs20000-30000,Rs3000040000,more than 40000 respectively in my study. . Table 4.4(d)-Age Below 25 years 25-35 years 35-45 years 45-55 years Above 55 years 32.8% 27.0% 23.8% 11.9% 4.5%

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35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Below 25 years 25-35 years 35-45 years 45-55 years Above 55 years

Graph 4.4(d) INTERPRETATION- There is 32.8%, 27.0%, 23.8%,11.9%,4.5% respondent whose age are below 25 years,25-35 years,35-45 years,45-55 years and above 55 years respectively. Table 4.4(e)-Education Secondary Higher secondary Undergraduate Graduate Post Graduate 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Secondary Higher secondary Undergraduate Graduate Post Graduate 1.3% 2.7% 3.4% 40.9% 51.7%

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Graph 4.4(e) INTERPRETATION- There is 1.3%,2.7%,3.4%,40.9% and 51.7% respondent whose education are secondary, higher secondary, Undergraduate ,Graduate, Post graduate respectively in my study. Table 4.4(f)-Occupation Home maker Service Self employed Retired Students 4.9% 45.6% 25.2% 1.6% 22.7%

50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Home maker Service Self employed Retired Students

Graph 4.4(f)

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INTERPRETATION- There are 4.9%, 45.6%, 25.2%, 1.6%, 22.7% respondent whose occupation is Home maker, service self employed, retired and student respectively in my study.

5. PUBLIC SECTOR 5.1 PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932).This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.

5.3 Difference between PNB and SBI

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A private sector is an economy is made up of all businesses and firms owned by ordinary members of the general public. It also consist of all the private households in which people live..,whereas, public sector is an economy is owned and controlled by a government . It consist of government businesses and firms ,and goods and services provided by the government, such as the national health service, state education,jobs,roads,public parks and law and order.

5.4 Comparison of PNB with SBI in terms of customer satisfactionThe objective of this study is to compare the public sector banks and private sector banks in terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks. The scope of the study is confined in comparing the Public sector and private sector banks in terms of customer satisfaction. The study will be undertaken on the basis of sample survey. FINDINGS Customer satisfaction level is higher in SBI as compared with the PNB.

5.5 REASONS OF DISSATISFACTION IN PUBLIC SECTOR BANKS

Behavior and attitude of the staff in public sector banks is the first reason of Customer dissatisfaction. Time taken to process the transaction is the second reason of customer dissatisfaction. Many of the services are not provided by the Public sector banks when compared with the Private sector banks e.g. . Less security in Internet Banking and Mobile banking is finded of the Public sector banks.

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5.6 RECOMMENDATIONS
The staff should be adequately trained to deal with the customer on one to one basis. Many public sector banks need to revive their infrastructure to have pace with the competing environment. Many of the services needs improvement in public sector banks e.g. ATM facilities. Staff should be adequately trained to encourage face to face dealing. Staff should be friendly and approachable. Clearly defined customer policy should be adopted by the banks. Customers needs should be anticipated in advance so that they can be helped out in a better way. Honor your promises.

6. Strategies of banks to satisfy their customersA main strategy of banks to satisfy their customer is CRM.

6.1 CRM in banking sector-CRM: A Competitive Tool for Indian Banking SectorIn todays competitive environment relationship marketing is critical to banking corporate success. Banking is a customer oriented services industry and Indian banks have started realizing that business depends on client service and the satisfaction of the customer. This is compelling them to improve customer service and build relationships with customers.

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This study, conducted among two Indian banks, aimed at identifying customer satisfaction variables which lead to relationship building, and developing a conceptual framework of relationship marketing practices in Indian banks by capturing the perspectives of customers with respect to their satisfaction with various services. It also sought to identify whether demographics have a role to play in customer satisfaction. A questionnaire designed from a literature review and in-depth interviews were utilized to arrive at the 16 variables which determined the satisfaction of 555 customers of the five banks.. The three relationship dimensions, namely, traditional services, multi channel banking and internal marketing, which lead to customer satisfaction, were identified through factor analysis. A repeated measure of ANOVA was run on the relationship dimensions to assess significant difference in the level of satisfaction of the customer. A perceptual map was created using the factor scores of each of the five banks which helped identify how each bank was positioned in the customers minds. Reporting on the different satisfaction levels of the customers, the findings suggest that while private banks have been able to attract the younger customers with higher educational levels, who are comfortable with multi channel banking, the customers of the national bank are older and more satisfied with the traditional facilities. The results from this study could provide managerial lessons on assessment of strengths and improvement of services and in evolving a research strategy that will benefit the management of banks Customer Relationship Management has emerged as a popular business strategy in todays competitive environment. It is a discipline which enables the companies to identify and target their most profitable customers. CRM involves new and advance marketing strategies which not only retain the existing customers but also acquire new customers. It has been invented as a unique technique capable of remarkable changes in total output of companies. While the concept of relationship marketing was formally introduced in early 90s when financial services, airlines and other service institutions stated to reward to retain the existing customers by introducing loyalty programs, CRM is only a product of the late nineties. The purpose of this paper is to find the differences

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in an organizations services employing CRM Vis a Vis others, as perceived by the customer. It also tries to find out the relationship between perception and satisfaction, commitment and loyalty which underlines the significance of CRM in Indian banking sector. CRM has developed into a major corporate strategy for many organizations. It is concerned with the creation, development and enhancement of individualized customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life time value. It is said that CRM is not a product or service; it is an overall business strategy that enables companies to effectively manage relationships with their customers. It provides an integrated view of a companys customers to everyone in the organization. With the intensified competition, companies realized that they have to treat their customers with respect. Customers have a lot more choices and they do not have to be loyal to any company. Companies are now trying to figure out ways to manage customer relationships effectively, not only to acquire new customers but also to retain their existing customers.Shani and Chalasani (1992) define relationship marketing as an integrated effort to identify, maintain and build up a network with individual customers and to continuously strengthen the network for the mutual benefit of both sides through interactive, individualized and value added contacts over a long period. Narrow functionally based traditional marketing is being replaced by CRM. A narrow perspective of CRM is database marketing emphasizing the promotional aspects of marketing linked to database efforts (Bickert 1992).Berry (1995) stresses that attracting new customers should be viewed only as an intermediate step in the marketing process. Developing close relationships with these customers and turning them into loyal ones are equal aspects of marketing. Thus he proposed relationship marketing as attracting, maintaining and in multi service organizations- enhancing customer relationships. Berrys notion of customer relationship management resembles that of Gronroos (1990), Gummesson and Levitt (1981). Another important facet of CRM is customer selectivity. As several research studies have shown not all customers are equally profitable for an individual company (Storbacka2000).

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While ample literature is available on CRM today, hardly any information is forthcoming on the gains from CRM, whether for the organization or the customer, in concrete terms. No study has yet reported in precise form and figure, as to what and how much an organization, employing the CRM philosophy has benefited out of it, while the claims are many. Still more scarce is literature on what is in it for the customer. Is the customer gaining anything out of the exercise (CRM)? Does he feel that the services handed out to him by a business corporation using CRM as a strategy is any better than others in the industry? In order to seek an answer to this question a survey on customer perceptions of service quality was carried out. The paper reports findings of the said survey.

6.2 Ten Ways to Help You Improve Your Customer ServiceBy: Catherine Franz 1. Stay in contact with customers on a regular basis. Just as it is bad news to send out too many emails to customers, it is just as bad to not stay in contact with them. Customers don't want to feel abandoned. So don't. Here are three things to help you stay in touch: Offer them your ezine subscription. Ask customers if they want to be updated by e-mail. Follow-up after each sale to see if they are satisfied with their purchase. Send an e-mail out a few days after their purchase, another in a week or two, and then another in a month. 2. Create a customer focus group by inviting 10 to 20 loyal customers to meet regularly. Alternatively, send out a monthly survey to this group asking for ideas and input on how to improve your customer service. Give them a reward. Pay them; give them a gift certificate, or send them free product. 3. Have a web site that is easy to navigate. Add a frequently asked question's "FAQ" page and explain anything that might confuse your customers or visitors. Followup with an electronic survey with questions on how to increase your site's userfriendliness.

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4. Resolve customer complaints quickly and completely. Answer all e-mail and phone calls within a few hours. This will show your customers you really care about them. 5. Don't make your customers or visitors hunt for your contact information. Make it easy for them to contact you. Offer as many contact methods as possible. Hyperlink all your e-mail addresses so they don't have to find or type it. Offer a toll free number. 6. If you have strategic alliances or employees, make sure they are familiar with your customer service policy. Give your employees bonuses or incentives to practice excellent customer service. Tell employees to be flexible with each individual customer, each one has different concerns, needs and wants.

7. Give your customers more than they expect. Send thank you gifts to long time customers. E-mail them greeting cards on holidays or birthdays if you have their address or online cards if you only have their e-mail address and name. Give bonuses to your customers who make a big purchase or multiple purchases. 8. U-welcome, pleases, and thanks you and can never be over used. Be polite no matter what. Admit and apologize for mistakes quickly and make it up to them in BIG ways if you want them to continue being a customer. 8. Reward in points -- give customers a point for every dollar they spend. Set up a points-earned sheet. E-mail the customer an update monthly. If they send you a referral they get 10 points, if they buy something add 10 more points. 9. 10. If your business is local, invite customers to your office for lunches, parties, barbecues, dances, seminars or other special events. It isn't what you perceive as valuable but what customers see from their eyes. Yet, sometimes, you just can't please some folks. If that occurs, do you best and then let it go. You don't want them for clients anyway. About the Author: Catherine Franz, a Certified

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Professional Marketing & Writing Coach, specializes in product development, Internet writing and marketing, nonfiction, and training.

6.3 Service Quality Development Before 1983, the definition of quality was defined primarily based on the concept of quality control with corresponding standards focused completely on achieving quality. Juran (1974) defined quality as "suitable use". Moreover, Crosby (1979) defined quality as "consistent with needs", and assumed the existence of correspondence between quality and operational standards. Cornell (1984) considered that the service industry required a broader definition of quality than that used by the manufacturing industry; Zimmerman (1985) took the quality control concept of the manufacturing industry and applied it to service quality. Zimmerman considered the components of service quality, including: practicality, replication of manufacturing ability, immediacy, ultimate user satisfaction, and corresponding standards. Based on the concept of PZB (1985) and Zeithaml (1988), consumers see the process of service quality formation as employing both interior and exterior attributes of low-level production quality or service quality, passing through an internal united comparison, and proceeding to establish a higher level of perceived service quality.

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Banks in India have succeeded in promoting new services to its customers. The likelihood of current customers is tempted to do business online. Based on extant literature on bank marketing, a questionnaire was designed. Then, in a large-scale survey by means of personal and telephone interviews, data was obtained from bank customers. This paper focuses on the adoption of internet banking by existing banks customers through an investigation of the factors that influence customer's acceptance of internet banking service. The questionnaire was designed from the literature review. It included 29 variables which will help in enhancing the satisfaction of the customer with usage of internet banking in India. Two Indian banks were chosen where the questionnaire was randomly administered to 210 respondents who were also customers of the bank. Out of 210 questionnaires, 196 were completed questionnaires. The banks chosen for the purpose of the study were the ones who have strong retail presence and offer comprehensive range of information to the customer. An exploratory study of the Indian customers in six banks is conducted to identify the factors which lead to adoption of internet banking services with the help of data reduction technique called factor analysis. The banking industry in India has undergone sea change since post independence. More recently, liberalization, the opening up of the economy in the 90s and the government's decision to public banks by reduction in state ownership culminated in the banking reforms based on the recommendations of Narasimha Committee (3). The prime mover for banks today is profit, with clear indications from the government to 'perform or perish'. Banks have also started realizing that business depends on client service and the satisfaction of the customer (4) and this is compelling them to improve customer service and build up relationship with customers. With 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 expectations. Customers in urban India no longer want to wait in long queues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the development of ATMs, phone and net banking along with availability of service right at the customer's doorstep. With the emergence of universal banking, banks aim to provide 38

all banking product and service offering under one roof and their endeavor is to be customer centric (5). With the emergence of economic reforms in world in general and in India in particular, private banks have come up in a big way with prime emphasis on technical and customer focused issues. In this paper, the main contention of the author is to highlight the customer satisfaction through service quality provided by the banks-SBI & PNB from the public sector banking. Another contention is to demonstrate the performance of the two banks SBI & I PNB in terms of customer satisfaction. The paper is organized in to six sections: Section- 1: starts with a brief profile of the banking industry, especially the SBI and PNB. Section- 2: covers Research Methodology comprising objectives, Hypothesis, research design and scope of the study including nature of data collection. Section-3: lays out the measurement of customer satisfaction with service quality and review of literature. Section-4: puts forward the core strategies to address service quality gaps. Section-5: deals with Analysis and Interpretation in line with the objective of the study. Section-6: briefly summarizes the conclusion and policy implementation of the study.

Profile of the Banking Industry-SBI and PNB State Bank of India

State Bank of India (SBI) is the largest bank in India. It is measured by the number of branch offices and employees as the largest bank in the world. Established in 1806 as Bank of Bengal, it remains the oldest commercial bank in the Indian Subcontinent and also the most successful one providing various domestic, international and NRI products and services, through its network of 13,908 branches, including 4,731 associate banks' branches in India and overseas. It also provides financial services, such as life insurance, merchant banking, mutual funds, credit card, factoring, security trading and primary dealership in the money market. With an asset base of $126 billion and its reach, it is a regional banking behemoth. The bank was nationalized in 1955 with the Reserve Bank of

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India having a 60 percent stake. It has laid emphasis on reducing the huge manpower through Golden handshake schemes and computerizing its operations. It also has non-banking subsidiaries and joint ventures, such as SBI Capital Markets Ltd., SBI DFHI Ltd., SBI Funds Management Pvt Ltd., SBI Factors & Commercial Services Pvt Ltd. and SBI Life Insurance Company Ltd. Effective from April 20, 2005; it acquired a 51 percent stake in Indian Ocean International Bank Ltd. This study examines whether there are economic benefits to be gained from improving service quality in the Taiwanese banking industry. Service quality is perceived quality; and different from objective or actual quality; being a judgment usually made within a customer evoked set. Service quality resembles an attitude in many ways, and service quality is distinct from customer satisfaction. Traditional financial ratios are not appropriate for measuring the economic benefits of service quality improvement. The main single factor influence on business unit performance is goods and service quality. The author develops a framework for this paper based on service quality and profitability theoretical background. Relationships are also established among service quality, customer satisfaction, and profitability. The main conclusion of this study is that the performance scale developed in the SERVPERF model and customer satisfaction in the profitability model are confirmed in the Taiwanese banking industry. The author finds that perception quality is an antecedent of attitude, service quality is an antecedent of customer satisfaction, customer satisfaction directly affects purchase intention, and customer satisfaction is an antecedent of profitability. Finally, the author finds gap between customers and service providers and thus demonstrates that Profitability is positively affected by service quality improvement. Previously, service quality was not been explicitly linked to profit. Zeithaml (2000) has found evidence about the influences of service quality on profits. Rust, Zahorik, and Keiningham (1995) provided a model of service quality improvement and profitability and the submodels, which together constitute the ROQ approach. The service profit chain of Heskett et al. (1997) stipulates that "direct and strong" relationships exist among service quality, customer satisfaction and profitability. As documented above, this study

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will develop a framework that combines service quality, customer satisfaction, and profitability into a chain of effects

Punjab National Bank

With over 72 million satisfied customers and 5937 domestic branches, PNB has continued to retain its leadership position amongst the nationalized banks. The Bank enjoys strong fundamentals, large franchise value and good brand image. Over the years PNB has remained fully committed to its guiding principles of sound and prudent banking irrespective of conditions. Bank has been earning many laurels and accolades in recognition to its service towards doing good to society, technology usage and on its overall performance. Some of the major awards won by the Bank are the Best Bank Award, Most Socially Responsive Bank by Business World-PwC, Most Productive Public Sector Bank, Golden Peacock Awards by Institute of Directors, etc. Besides, the Bank is ranked 26th amongst FE 500 Indias Finest Companies, 26th amongst the Top 500 India's Largest Corporations by Fortune 500 India. The Banker ranked PNB on 186th position in 2011, improving from 257th position a year before. PNB ranked 668th amongst 2000 Global Giants as per the Forbes and 170th in 2012 improving from 195th in 2011 in Top 500 Most Valuable Banking Brands by Brand Finance Banking 500. India Inc Top 100 Most Powerful CEOs for the year 2012, Shri K.R. Kamath, CMD, PNB, adjudged Most Powerful amongst the Nationalised Banks in India, with overall rank at 50 by Economic Times. Bank has also been ranked 26th amongst India Top Companies as per ET 500 and 25th amongst the Top 50 most valuable corporate brand by Brand Finance-ET.

Since its humble beginning in 1895 with the distinction of being the first Swadeshi Bank to have been started with Indian capital, Punjab National Bank has continuously strived for growth in business which at the end of June 2012 amounted to Rs.6,79,823 crore. PNB is the largest nationalised Bank in the country in terms of Branch Network, Total Business, Advances, Operating Profit and Low Cost CASA Deposits. The CASA

41

deposits share to the Total Deposits of the Bank was at 35.6% as on June 2012. Bank achieved a Net Profit of ` 1246 crore during the Q1 FY13. Bank also has a strong capital base with Capital Adequacy Ratio of 12.57% as on June12 as per Basel II with Tier I and Tier II capital ratio at 9.33% and 3.24% respectively.

Bank has been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned. With its policy of inclusive growth and the mission Banking for Unbanked, it is a matter of pride for the Bank that it has been able to cover all its 4588 villages allotted under the Swabhiman Campaign of Government of India through Business Correspondents. Further, the Bank has also adopted 118 villages across country. Under FI plan, the Bank has engaged Technical Service Providers (TSPs) and the corporate Business Correspondents (BCs) for providing banking services in villages using ICT based BC model. The village level BC agents are using Hand Held Terminals/ POS machines & smartcards. Bank has extensively used technology to reach out to those which have remained away from formal banking set up.

The Bank has been able to maintain the highest NIM at 3.60 % in Q1 FY13 amongst its peers. Earnings per Share (EPS) improved to Rs.146.90 while the Book value per share (BVpS) improved to Rs.814.14. Punjab National Bank continues to maintain its frontline position in the Indian Banking industry. The performance highlights of the Bank in terms of business and profit are shown below:
Rs. In Crore

Parameters

Mar'10

Mar'11 Mar'12

CAGR June11 (3yearly) (%) 2474 23.10 1105

June12 2841 1246

YOY Growth% 14.8 12.8

Operating Profit 7326 Net Profit 3905

9056 4433

10614 4884

16.47

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324097 Deposit Advance Total Business 249330 186601 435931 312899 379588 242107 293775 555005 673366 21.86 242908 23.83 567005 22.71

385355 294468 679823

18.9 21.2 19.9

The Bank has always been pioneer in implementation of technology in facilitating good services and suitable products to its customers. Bank has also opened specialized branches equipped with all the facilities to cater to the needs of all the segments of the society.

The Bank is offering all the technology enabled services to its customers ranging from Mobile Banking, Call Centre, Internet Banking, on line booking of rail tickets, payment of utilities bills, booking of airline tickets to SMS alerts and Mobile Banking services to keep them updated about their financial transactions at all time. Towards developing a cost effective alternative channels of delivery, the Bank with more than 6050 ATMs has the largest ATM network amongst Nationalized Banks. ATM Network of the Bank provides other value added services such as Funds Transfer, Bill Payments and mobile registration for generation of SMS alerts; Direct Tax Payment, request for stop payment of cheques, etc. are also provided to the cardholders.

Apart from offering banking products, the Bank has also taken up Wealth Management Services viz. credit card/ debit card; bullion business; life/non-life insurance; Gold coins & Asset Management, etc. Marking its foray into Life Insurance business, Bank has tiedup with one of the worlds largest insurance company, i.e. Metlife India Insurance Company Ltd. Besides, to retain the supremacy of PNB in CASA, which have been the

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stronghold of PNB once, a Saving Fund Campaign and Current Account Campaign are launched.

Bank has also institutionalised Corporate Social Responsibility system for transforming the lives of those who are less privileged. Towards this, PNB Prerna, an Association of the wives of the Senior Executives of the Bank, has been set up. It aims at serving the society and destitute on behalf of the Bank by extending assistance to the poors/ disabled by way of distribution of articles of utility, computers, stationary, books, etc.

Backed by strong domestic performance, the Bank has its global aspirations as well. Bank has expanded its footprint into 10 countries. Bank also has 4 overseas branches in Hong Kong, Dubai & Afghanistan and an Offshore Banking Unit (OBU) Branch in SEEPZ, Mumbai. Bank has one wholly owned overseas Banking subsidiary, PNB International Ltd. (UK) along with other two overseas subsidiaries are Druk PNB Bank Ltd, Bhutan and PNB Kazakhstan besides Representative Office in Sydney, Australia, Dubai, Almaty, China & Norway. Bank is planning to set up its second wholly owned subsidiary in Canada. Bank is also looking to upgrade its Representative Offices at Norway, China and Australia to full-fledged branches. Bank is also exploring possibilities for presence in Maldives, South Africa, Bangladesh, Myanmar, Pakistan, Singapore and Brazil.

Moving forward and achieving Business Excellence, PNB Pragati, an Organization Transformation Programme has been initiated in a systematic and well planned manner. Under the programme, PNB Pragati Branches at various places have been rolled out commencing 1st August at Bhikaiji Cama Place branch at New Delhi. These branches will have all the convenient and modern banking facilities for the customers.

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6.4 IMPROVING CUSTOMER SATISFACTIONPublished standards exist to help organizations develop their current levels of customer satisfaction. The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organizations attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model. TICSS Service Quality Model uses the 5 P's - Policy, Processes, People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty.

6.5 THE DIMENSIONS OF SERVICE QUALITY: A STUDY OF THE INDIAN RETAIL BANKING ENVIRONMENTRegulatory, structural and technological factors are significantly changing the banking environment throughout the world. One factor that is spurring the growth of the service economy in India is the liberalization that has been ushered in by the government in the banking sector. The financial sector reform in India was designed to infuse greater competitive vitality in the system. To achieve this objective, the Narasimhan Committee was formed. The Narasimhan Committee report suggested wide ranging reforms for the Indian banking sector in 1992 to introduce internationally accepted banking practices and enable Indian banks (which were hitherto resisting liberalization and opening of their markets) to achieve service excellence. The Narasimhan Committee, recommended the liberalization of entry norms and suggested that new banks be permitted in the private sector provided they conformed to the minimum start up capital and other requirements. 45

The committee recommended too, a liberal policy towards allowing foreign banks to open offices in India. Since the reforms started, the interest rate structure has been deregulated to a great extent and banks have been given a great degree of freedom in determining their rate structure for deposits and advances, as well as their product range. Banking has also become more competitive in respect of the location of points of sale, that is, the branch network. The end result is that market power is getting shifted from banks to their customers. With the lowering of entry barriers and blurring product lines of banks and non-banks, the oligopolistic nature of Indian banking is fast changing and giving way to a relatively freer market place. The freedom of choice which bank customers did not have earlier because of standardized products and regimented interest rates has been given to the customers as a result of the changes taking place (Subramanian &Velayudham, 1997). In other words, financial liberalization has led to intense competitive pressures and retail banks are consequently directing their strategies towards increasing customer satisfaction and loyalty through improved service quality. Retail banks are pursuing this strategy, in part, because of the difficulty in differentiating based on the service offering. Typically, customers perceive very little difference in the banking products offered by retail banks as any new offering is quickly matched by competitors. However, much of the research on service quality has been in the developed countries (Herbig & Genestre, 1996), even though services are among the fastest growing sectors in emerging countries (Malhotra et al., 1993). In fact, the bulk of the research on service quality in banks has been in the context of US and European banking institutions. At this juncture, it is important to also study banking institutions based in developing economies like India, which has recently liberalized its banking sector. As banks in such countries as India mature, lessons may be learned from their experiences by banks in developed economies as well as in other developing countries, as banking becomes more and more globally integrated. In fact, there exists a significant gap in the service marketing literature on how consumers evaluate service quality in contexts and cultures very different from the developed countries, even though research has begun to explore this area (Bolton and Myers, 2003).

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In light of this paucity of research on service quality issues in developing countries like India, it has become very important that banks in India determine the service quality factors, which are pertinent to the customers selection process, as with increased competition, with the advent of international banking, the trend towards larger bank holding companies, and innovations in the marketplace, customers are now having greater difficulty in selecting one institution from another. In order to provide excellent service quality, identifying the underlying dimensions of the service quality construct is the first step in the definition and hence provision of quality service and hence should be a central concern for retail bank managers as well as service management academics and practitioners. This paper endeavors to fill the gap in the service quality literature by exploring the dimensions of customer perceived service quality in the context of the Indian retail banking industry. A set of service quality parameters, drawn from customers perceptions about service quality as well as the bank marketing and service quality literature have been drawn up. These parameters have been used in the context of four of the largest banks in India to identify the underlying dimensions of service quality. Finally, the paper has drawn upon the findings of the service quality dimensions to contend the initiatives that banks managers can take to enhance employees skills and attitudes and instill a customer-service culture. The Dimensions of Service Quality Underpinning our understanding of service quality is an array of factors or determinants. A number of researchers have provided lists of quality determinants, but the best known determinants emanate from Parasuraman and colleagues from the USA, who found five dimensions of service quality, namely, tangibles, reliability, responsiveness, assurance and empathy and used these as the basis for their service quality measurement instrument, SERVQUAL (Parasuraman et al., 1988; Zeithaml et al., 1990). The result was the development of the SERVQUAL instrument, based on the gap model. The central idea in this model is that service quality is a function of the difference scores or gaps between expectations and perceptions. An important advantage of the SERVQUAL instrument is that it has been proven valid and reliable across a large range of service contexts. However, while the SERVQUAL instrument has been widely used, it

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has been subjected to certain criticisms as well. The contention that service quality consists of five basic dimensions (Parasuraman et al., 1988) is according to some researchers questionable and they have suggested that SERVQUALs dimensions are contextual and not universally applicable (Ekinci & Riley, 1999; Brown et al., 1993; Cronin & Taylor, 1992; Teas, 1993; Bouman & Vander Wiele, 1992; Gagliano & Hathcote, 1994, Kang and James, 2004; Lee, 2005; Fowdar, 2007). Instead, the number and composition of the service quality dimensions are probably dependant on the service setting (Brown et al., 1993; Carman, 1990). It has been suggested that for some services the SERVQUAL instrument needs considerable adaptation (Dabholkar et al., 1996) and that items used to measure service quality should reflect the specific service setting under investigation, and that it is necessary in this regard to modify some of the items and add or delete items as required (Carman, 1990). Moreover, research suggests that culture may play a fundamental role in determining how consumers perceive what constitutes service quality. In a nutshell, there are still issues and varying opinions about the dimensionality of service quality and the universality of the five dimensions, (Rust and Oliver, 1994). These are of interest to and significant for users of SERVQUAL and for all those who wish to understand better the concept of service quality. Hence there is still a need for fundamental research into the dimensionality of service quality bearing in mind the contextual circumstances, the specific industry and the specific service setting.

6.6 MARKETING STRATEGIES

Financing rapid industrial growthWith the Indian economy growing at a blistering pace on the back of strong industrial and services growth, the Indian companies are looking to build up capacity to meet future demand.Banks play a pivotal role in financing this industrial growth. Technological innovations & challengesBanks are aggressively adopting the latest technology in order to improve product offerings, customer service, and operational efficiency and risk management systems.

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Financial inclusion & Rural MicrofinanceIn the quest for new markets and customer segments, as well as with the RBI directives in this area, banks are looking at the rural and unbanked segments in a new light as a huge business opportunity. Convergence to a single solution providerWith pressures on the spreads and the competition in the urban markets increasing rapidly, banks need to develop new ways to sustain profitability.Banks led to a plethora of new products, hence becoming a one stop shop for all financial solutions. Roadmap by RBI for foreign banksThe RBI has laid out a two phased roadmap for giving greater freedom to the foreign banks in India.This has spurred the entry of several other foreign banks in India, along with acting as a signal to the domestic players to pull up their socks to face the new competitors. Growth in retail lendingThe under banked Indian population as well as the high margin on retail products makes this a very attractive market for the banks.The all-inclusive nature of this growth in terms of sectors covers all consumer segments as well as product segments. Demand for derivatives & other risk management productsThe increasingly dynamic business scenario and financial sophistication also increase the need for customized exotic financial products.The complex and peculiar nature of risks faced by the companies are passed onto the banks.Innovative financial tools and advanced risk management methods are required by the banks to capitalize on this business opportunity.

6.7 MEASURING CUSTOMER SATISFACTION IN THE PUBLIC BANK Banking operations are becoming increasingly customer dictated. The demand for banking super malls' offering one-stop integrated financial services is well on the rise. The ability of banks to offer clients access to several markets for different classes of financial instruments has become a valuable competitive edge. Convergence in the industry to cater to the changing demographic expectations is now more than evident. 49

Banc assurance and other forms of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the process of consolidation for increased scope of business and revenue. The thrust on farm sector, health sector and services offers several investment linkages. In short, the domestic economy is an increasing pie which offers extensive economies of scale that only large banks will be in a position to tap. With the phenomenal increase in the country's population and the increased demand for key differentiators for each bank's future success. Thus it is imperative for banks to get useful feedback on their actual response time and customer service quality aspects of retail banking, which in turn will help them take positive steps to maintain a competitive edge. The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William Thomson Kelvin (1824-1907).

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7. IMPACT OF ATM ON CUSTOMER SATISFACTION This presents the impact of ATM on customer satisfaction. This is a comparative study of three major banks i.e. State Bank of India, and PNB. This paper has been divided into two sections. First section presents the introduction of ATM, brief history of Banks compiled through the literature available in the field. It also includes the review of the various services provided by the three banks under study. Second section presents the result obtained on the basis of the data collected for the three banks. A sample of 360 respondents equally representing each bank has been taken through questionnaire. Data has also been collected through interview also. Then various statistical tools have been used accordingly to compile the result. KEY WORDS: ATM, Customer satisfaction, Fees, Problems, ATM services, Banks. ATM means neither avoids traveling with money nor any time money, but certainly implies both. Slim ATM cards are fast replacing confounding withdrawal forms as a convenient way of getting your money from banks. In a way, they are rewriting the rules of financial transaction. A smart person no longer needs to carry a wallet-full of paper money on his person. All he needs to do is fish out an ATM (automated teller machine) card, insert it in the slot, punch in a few details and go home with hard cash. Automated teller machines (ATMs) were the first well-known machines to provide electronic access to customers. With advent of Automatic Teller Machines (ATM), banks are able to serve customers outside the banking hall. ATM is designed to perform the most important function of bank. It is operated by plastic card with its special features. The plastic card is replacing cheque, personal attendance of the customer, banking hours restrictions and paper based verification. ATMs have made hard cash just seconds away all throughout the day at every corner of the globe. ATMs allow you to do a number of

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banking functions such as withdrawing cash from ones account, making balance inquiries and transferring money from one account to another using a plastic, magneticstrip card and personal identification number issued by the financial institution. The Indian ATM industry has seen explosive growth in recent times. ATMs represent the single largest investment in the electronic channel services for the Banks. In India, HSBC set the trend and set up the first ATM machine here in 1987. Since then, they have become a common sight in many of our metros. Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. As at the end of October 2007, the number of ATMs deployed in India was 31,078. According to some estimates the total cash movement through ATMs across India was around Rs. 70,000 crore in FY 06. Clearly, industry watchers forecast a bright future for ATMs in India. While the ATM is a great service for customers, for the banks it means immense savings on the cost of operations. While a typical cash transaction carried out in a banks branch premise would cost Rs 40 that in an ATM will only cost Rs18translating into a cost saving of Rs 22 per transaction. ATM Networks The ATMs of a bank are connected to the accounting platform of the bank through ATM switches. Inter-bank ATM networks are created by setting up apex level switches to communicate between the ATM switches of different banks. The inter-bank ATM networks facilitate the use of ATM cards of one bank at the ATM(s) of other banks for basic services like cash withdrawal and balance enquiry. Banks owning the ATMs charge a fee for providing the ATM facility to the customers of other banks. The ATM deploying bank from the card issuing banks recovers this fee referred to as interchange fee. However the interchange fee is not fixed across banks and depends on the terms of bilateral / multilateral arrangements. Banks with larger ATM network treat interchange fee as an important stream of revenue. (Sultan Singh, Ms. Komal, (Ph.D.)

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8. ANALYSIS & INTERPRETATIONIt takes continuous effort to maintain high customer satisfaction levels (by Kevin Cacioppo) As markets shrink, companies are scrambling to boost customer satisfaction and keep their current customers rather than devoting additional resources to chase potential new customers. The claim that it costs five to eight times as much to get new customers than to hold on to old ones is key to understanding the drive toward benchmarking and tracking customer satisfaction. Measuring customer satisfaction is a relatively new concept to many companies that have been focused exclusively on income statements and balance sheets. Companies now recognize that the new global economy has changed things forever. Increased competition, crowded markets with little product differentiation and years of continual sales growth followed by two decades of flattened sales curves have indicated to today's sharp competitors that their focus must change. Competitors that are prospering in the new global economy recognize that measuring customer satisfaction is key. Only by doing so can they hold on to the customers they have and understand how to better attract new customers. The competitors who will be successful recognize that customer satisfaction is a critical strategic weapon that can bring increased market share and increased profits. The problem companies face, however, is exactly how to do all of this and do it well. They need to understand how to quantify measure and track customer satisfaction. 53

Without a clear and accurate sense of what needs to be measured and how to collect, analyze and use the data as a strategic weapon to drive the business, no firm can be effective in this new business climate. Plans constructed using customer satisfaction research results can be designed to target customers and processes that are most able to extend profits. Too many companies rely on outdated and unreliable measures of customer satisfaction. They watch sales volume. They listen to sales reps describing their customers' states of mind. They track and count the frequency of complaints. And they watch aging accounts receivable reports, recognizing that unhappy customers pay as late as possible--if at all. While these approaches are not completely without value, they are no substitute for a valid, well-designed customer satisfaction surveying program. It's no surprise to find that market leaders differ from the rest of the industry in that they're designed to hear the voice of the customer and achieve customer satisfaction. In these companies: Marketing and sales employees are primarily responsible for designing (with customer input) customer satisfaction surveying programs, questionnaires and focus groups. Top management and marketing divisions champion the programs. Corporate evaluations include not only their own customer satisfaction ratings but also those of their competitors. Satisfaction results are made available to all employees. Customers are informed about changes brought about as the direct result of listening to their needs. Internal and external quality measures are often tied together. Customer satisfaction is incorporated into the strategic focus of the company via the mission statement.

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Stakeholder compensation is tied directly to the customer satisfaction surveying program. A concentrated effort is made to relate the customer satisfaction measurement results to internal process metrics. To be successful, companies need a customer satisfaction surveying system that meets the following criteria: The system must be relatively easy to design and understand. It must be credible enough that employee performance and compensation can be attached to the final results. It must generate actionable reports for management. Increasing competition (whether for-profit or nonprofit) is forcing businesses to pay much more attention to satisfying customers. (It may help the reader to notice the role of customer satisfaction in the overall context of product or service development and management. See Product/Service Management. Also notice the Related Info (including customer service) in the library.) Retail banking has undergone rapid changes with the introduction of new technology based channels and its interesting to note how people have adapted to different ways of deriving their banking needs. This study uses psychographics to study the banking channel adaptation and the trends in the retail banking scenario in Karnataka, India. It has been found that people clearly want convenience and security in their choice of banking channels. Technological advances has witnessed the application of technology in increasing the number of banking channels namely ATM, Internet Banking, Tele Banking and branch banking. In retail banking scenario, it is also implicit that many banks are competing for the same customer segment and the combined resources being spent in terms of channel

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development and other efforts may exceed the profitability of the segment targeted at, by the banks put together. It has been observed that one of the challenges being faced by retail banking sectors have been in the usage of proper segmentation techniques based on the customer psychographics with respect to the banking channels. For e.g. who would be willing to use Telebanking and what may be the underlying reason to do so? Inspite of introduction of internet banking why would a youth still visit the nearest branch for his banking needs? The answers to these questions would result in the mindset and lifestyle of banking consumers which would help the bank to effectively target the consumers based on their channel preference, strengthen the weak aspects of channels in demand and augment the service provided by the channels thereby retaining the customer and ultimately enhancement of profits. Customer segmentation takes place at demographic level and at psychographic level. Psychographics in essence tries to study and profile people based on their attitudes, Interests, lifestyles and values. In India psychographic profiling of consumers is still in its stage of infancy. Many corporates are conducting such studies, but most of results are not available for the academic community. Furthermore, the psychographic variables of consumers are always changing and it becomes even more imperative for a continuous longitudinal study to keep track of changes and incorporate them in the art of marketing. Further, the entry of multinational banks that are armed with techniques to profile the customers based on psychographic attitudes are posing a tough competition for the Indian banks. Some of the advertisements from a large Nationalized public sector act more or less like reminders to customers about their large and widespread networks, many products in their portfolio that are clearly a pure quantitative translation of banks strength rather than the real competitive advantage that can be derived out of strategic marketing techniques based on effective segmentation. Hence it is imperative that psychographic study be conducted on banking customers in India for strategic marketing purposes.

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The conceptual relationship between effective profiling and Strategic marketing can be best described in the diagram. The total number of respondents in this research was 100. of them 50 were customers of PNB and 50 from SBI .the customer of the banks were divided into savings (78) and current (22) accounts. The overall experience of customers ranged from good to satisfactory while opening an account in any of the two banks. The mean for experience while account opening was 2.5 in the scale 1 to 7. Most of the customers operated their account on their own. A majority referred the bank to others and made their purchase paying by cash. The customers of PNB and SBI were above 20 years age; . Customer looked for information about the bank from sources such as the television, the newspaper, magazines, hoardings, the bank and others. The overall mean value for the customers hunt for information shows thats/he gained information through hoardings and the radio. PNB and SBI bank customer gained information from advertisement on the radio, and relatives and friends. The satisfaction of the customers with the services provided by the banks was judged on the following 16 variables; service scale; parking place ;attitudes of the bank staff; dissemination of information; promptness in query handling ;networking of the bank (branches);ATM facility; debit card ;credit card ;demand draft facility; fixed deposit schemes ; money transfer; locker facility ;D-mat facility ;tele banking .and net banking. Table 8(a)-Customer satisfaction level in SBI Satisfaction levels Dissatisfied Satisfied Mixed Number of customer in percentage 25% 50% 25%

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50% 40% 30% 20% 10% 0% Num ber of custom er in percentage Mixed Dissatisfied Satisfied

Graph 8(a) INTERPRETATION- There are 25%, 50% and 25% respondent who is Dissatisfied, satisfied and mixed respectively in SBI. Table 8(b)-Customer satisfaction level in PNB Satisfaction levels Dissatisfied Satisfied Mixed
40% 30% Dissatisfied 20% 10% 0% Num ber of customer in percentage Satisfied Mixed

Number of customer in percentage 35% 40% 25%

Graph 8(b) INTERPRETATION- There are 35%, 40%, 25% customers who is Dissatisfied, Satisfied and mixed respectively from the service of Punjab National Bank. The above interpretation shows that the customer satisfaction level in SBI is much compared to PNB.

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9. CONCLUSION & SUMMARYThe Banking sector in India is undergoing major changes due to competition and the advent of technology. The customer is looking for better quality and services which can provide him/her with satisfaction. This study reveals the different levels of satisfaction that customer had with their banks and helps identify the factors (or relationship dimensions) responsible for satisfying the customer. This would help in enhancing the relationship between the two, and thus aid decision makers in banks to identify the major factors that determine satisfaction. Many service firms, including retail banks have been measuring customer satisfaction and quality to determine how well they are meeting customer needs. This study derives its basic findings and is also in line with empirical findings with respect to customer satisfaction by other researchers. Looking at the demographics of the customer and satisfaction with the services.71 percent of the customers of SBI are above 35 years, are graduates and their satisfaction is highest with traditional facilities. These findings propose that the public banks namely SBI and PNB have been able to attract the younger customers, with higher educational levels, who are comfortable with the usage of multi channel banking. SBI are older in age and are satisfied with the traditional facilities.SBI with the largest network of branches in India, has given competition to the private banks and has retained its older customers by satisfying them with the traditional facilities. Perceptual mapping has been extensively used in marketing for various applications where a manager wants to know the cognitive dimensions that consumers use to evaluate products and services. Perceptual mapping can also assess the relative positions of various products and services. This study has created a perceptual map using factors

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scores of each of five banks under study. These maps will help identify how each bank is positioned in the customers mind. We can see from exhibit 6 that customers find most satisfaction with the traditional facilities of state bank of India and least satisfaction with PNB. Internal marketing provides maximum satisfaction to customers of SBI and least to those of PNB. SBI has a largest network of branches its focus on customer satisfaction with respect to any time anywhere could do with improvement. Perceptual mapping is an important marketing research tool used in many areas of marketing. Strategies based on perceptual maps have led to increased profits, better market control and more stable growth. a ranking score sheet of the customer perception based on perceptual mapping .the result from this study could provide managerial lessons on assessment of strengths, improvement of services and in evolving a research strategy that will benefit the management of banks. Another finding from this study emerges with regard to information seeking. While most of the customers of the other banks in the study acquired information about the banks through the radio or hoardings. The customers of SBI got information from their friends and relatives. This implies that the bank is able to satisfy its customer who acts as a referral market for the bank. This helps the bank to acquire new customers at low cost. Thus banks must be actively involved in acquiring, satisfying and retaining customers. Also the results suggest that satisfaction of the customer is different across the five banks under the study. Traditional facilitiesDebit card Credit card Demand draft facility Fixed deposits Money transfer Multi channel Banking Tele banking Net banking D-mat Internal Marketing Service scale Parking space Attitude of bank staff Dissemination of information Query Handling 60

Locker facility ATM Networking

Table 9(a)-Ranking score sheet of customer perception

Service Dimension

State bank of India

Punjab Bank

National

Traditional facilities

1 4 5

4 5 3

Multi channel banking

Internal marketing

5 4 3 2 1 0 Internal m arketing Traditional facilities Multi channel banking

SBI

PNB
Graph 9(a)

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INTERPRETATION- This is the graph showing Traditional facilities, Multi channel banking and internal marketing in two Indian banks SBI & PNB. According to traditional facilities SBI is in number one position and PNB comes in number two position. In terms of Multi channel banking SBI is in first position and PNB is in Number two position.. In terms of Internal marketing SBI is in first position and PNB comes under the second position.

2 1.5 1 0.5 0 Traditional facilities

SBI

PNB

INTERPRETATION- According to traditional facilities SBI is in number one position and PNB comes in number second position.

2 1.5 1 0.5 0 Internal m arketing

SBI

PNB
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INTERPRETATION- In terms of internal marketing PNB is in first position and SBI comes under the second position.

2 1.5 1 0.5 0 Multi channel banking

SBI

PNB

INTERPRETATION- In terms of Multi channel banking SBI is in first position and PNB is in Number second position. Our findings imply that bank should take care of the needs of customers when introducing various services to them. Customers of PNB, and SBI are either in services or are self employed. Many customers of SBI and PNB are retired. Thus banks could envisage a strategy to serve customers with different occupations and educational backgrounds. Bank must advance their customer-centric strategies by providing satisfaction through their services which will lead to better relationship building and profits for the banks. The satisfaction of the customer with the services of Indian banks is linked with the performance of the banks .thus it is important for banks to look into satisfaction of the customer as relationship marketing strategy.

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10. LIMITATIONS There are certain limitations of this study. Sample size is small so there may be possible that the desired level of accuracy not exist. This study is conducted only in small area so there may be chance of Inaccuracy of the result. In selecting the Sample, there are chances of sampling errors. Sometimes some respondent do not give right answers, thats why variations may be possible. This study is applicable in Delhi only not in whole India.

REFERENCESLovelock, Christopher, 2001, services marketing; people, Technology, strategy, 4 th edition, prentice Hall. Lev, B, 2001, Intangible management, measurement and reporting Washington DC; Brookings Institute press. C R Kothari Research methodology P N Varshney Banking law and Practice

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Customer satisfaction in Indian banking: a case study of Yamuna Nagar District in Haryana. Political Economy Journal of India, Jan-June, 2008 by Raj Kumar. Customer Satisfaction Key Growth to Banks: An article from The Hindu Article on customer relationship management in banking sector by Dr.FB Singh. Article on Measuring Customer Satisfaction in the Banking Industry by Dr. Manoj Kumar Das. Gitman, Lawrence J.; Carl D. McDaniel (2005). The Future of Business: The Essentials. Mason, Ohio: South-Western. ISBN 0324320280. John, Joby (2003). Fundamentals of Customer-Focused Management: Competing Through Service. Westport, Conn.: Praeger. ISBN 9781567205640. Berry, Leonard L.; A. Parasuraman (1991). Marketing Services: Competing Through Quality. New York: Free Press. ISBN 9780029030790. Kessler, Sheila (2003). Customer satisfaction toolkit for ISO 9001:2000 . Milwaukee, Wis.: ASQ Quality Press. ISBN 0873895592. Johnson, Michael D.; Anders Gustafssonb, Tor Wallin Andreassenc, Line Lervikc and Jaesung Cha (2001). "The evolution and future of national customer satisfaction index models". Journal of Economic Psychology 22 (2): 217245. ISSN 0167-4870. Bluestein, Abram; Michael Moriarty; Ronald J Sanderson (2003). The Customer Satisfaction Audit. Axminster: Cambridge Strategy Publications. ISBN 9781902433981. .Rexha N, kingshott RPJ and AW ASS (2003) The impact of Relational plan on Adoption of electronic Banking Journal of service marketing, Vol.17 No.1, Levesque, and MC Dougall (1996) Determinants of customer Satisfaction in Banking International Journal of Bank Marketing, 14(7), Taylor and Baker (1994) An Assessment of the relationship between service quality and customer satisfaction in the formation of consumer Purchase intentions. Journal of Retailing 70(2) PP. 163-178.4.Bitner, M.J. and A.R. Hubbert 1994 Encounter 65

satisfaction versus overall satisfaction versus quality. In R.T. Rust and R.L Oilver (eds) Service quality: New Directions in Theory and practice London: sage publication. Cronin, J.Joseph, Jr., and S.A. Taylor. 1992 Measuring Service quality; a re-examination and extension. Journal of Marketing 56pp 55-68.6.MC Dougall, Levesque (1994) A revised review of service quality dimensions: An empirical investigation Journal of professional services marketing 11(1). Singh S (2004) A Appraisal of Customer service of Public Sector Banks, IBA Bulletin, Vol. XXVI, No:8 (August), PP 30-37.8.Uppal R.K (2006), Indian Banking Information Technology, New Century Publications, New Delhi.9.Singh and Amphora (1993), Customer Satisfaction in Banking services; A study of Amristar, ed., Radha Publication, New Delhi. Internet websites: www.google.com www.pnbindia.in/en/ui/Profile.aspx http://en.wikipedia.org/wiki/Customer_satisfaction www.scribd.com

QUESTIONNAIRE
Dear Respondent, I am a student of SRM University. And doing MBA. I have undertaken a project for which I intend to pose a questionnaire aimed at comparing the customer satisfaction in the Public banks. Your cooperation is deeply solicited to provide the relevant information. I assure that information will be kept confidential. Name of Customer _______________ Name of the bank and type of account_______________________________________ Please answer the questions and tick at the place that matches your opinion. Mobile/Tele Banking.

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How would you describe your views about Customer Service Representatives? Please tick in The appropriate column. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied), specify the Reason if not using the service 12345 Call answering time Flawless/correct operations. Understanding and replying queries correctly Communication skills/positive approach General assessment about the service Branch Banking How would you describe your views about Branch Banking? Please tick in the appropriate column. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied) 12345 Behavior of the staff Time taken to process the transaction Working Hours General assessment about the services provided by the branch Internet Banking How would you describe your views about Internet Banking services? Please tick in the appropriate column. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied), specify the reason if not using the service. 12345 Page setup/Menu flow Ease of use/navigation Speed of page loading Variety of transactions General assessment about the service

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ATM Banking How would you describe your views about ATM Banking services? Please tick in the appropriate column. (1: Very Dissatisfied/2: Dissatisfied/3: Satisfied/4: Very satisfied/5: Highly Satisfied. Reason if not using the service 12345 ATM network distribution Continuous service Variety of transactions Easy of screen use General assessment about the service The overall experience of customer ranged from good to satisfactory while opening an account in any of five banks Scale 1-7 Demographic profile of the customers Demographics 1. Gender Male Female 2. Marital status Married Unmarried Other 3. Monthly Family income Less than Rs10000 Rs10000-20000 Rs20000-30000 Rs30000-40000 More than 40000 4. Age Below 25 years

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25-35 years 35-45 years 45-55 years Above 55 years 5. Education Secondary Higher secondary Undergraduate Graduate Post Graduate 6. Occupation Home maker Service Self employed Retired Students

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