Professional Documents
Culture Documents
SYNOPSIS
In the partial fulfillment of the degree of
MASTER OF BUSSINESS ADMINISTRATION (MBA)
Guided By:
Submitted By:
B SRIKANTH
Shivani Dalal
Roll No: 1405003429
MBA 4th sem
{FINANCE HR}
INDEX
INTRODUCTION
Conceptual Framework
Rationale of the study
Objective of the study
Literature Review
RESEARCH METHODOLOGY
Design
Data
Tools
BIBLIOGRAPHY
REFEFENCE
INTRODUCTION
CONCEPTUAL FRAMEWORK:With the advent of liberalization policy and RBIs easy norms several private and
foreign banks have entered in Indian banking sector which has given birth to cut throat competition amongst
banks for acquiring large customer base and market share. Banks have to deal with many customers and render
various types of services to its customers and if the customers are not satisfied with the services provided by the
banks then they will defect which will impact economy as a whole since banking system plays an important role
in the economy of a country, also it is very costly and difficult to recover a dissatisfied customer. Since the
competition has grown manifold in the recent times it has become a herculean task for organizations to build
loyalty, the reason being that the customer of today is spoilt for choice.
It has become imperative for both public and private sector banks to perform to the
best of their abilities to retain their customers by catering to their explicit as well as implicit needs. Many a
times it happens that the banks fail to satisfy their customer which can cause huge losses for banks and there the
need of this study arises. The purpose of this study is to compare the public sector banks and private sector
banks in terms of customer satisfaction and to study the various variables of service quality using various
methods. The work has been carried out with the objective of understanding the reasons of customer
dissatisfaction and what are the opportunity areas wherein these banks need to focus and strengthen their
Customer Relationship Management practices.
The research work uses both the sources of information, i.e. Primary and Secondary
sources, and thereafter various methods has been used to identify the discrepancy in the service delivery system.
Finally the study concludes by giving some recommendations to improve in the area where these banks do not
meet the expectation of their customers.
NATIONALIZED BANK
Nationalised banks dominate the banking system in India. The history of nationalised
banks in India dates back to mid-20th century, when Imperial Bank of India was nationalised (under the SBI Act
of 1955) and re-christened as State Bank of India (SBI) in July 1955. Then on 19th July 1960, its seven
subsidiaries were also nationalised with deposits over 200 crores. These subsidiaries of SBI were State Bank of
Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIR), State Bank of
Mysore (SBM), State Bank of Patiala (SBP), State Bank of Saurashtra (SBS), and State Bank of Travancore
(SBT).
However, the major nationalisation of banks happened in 1969 by the then-Prime
Minister Indira Gandhi. The major objective behind nationalisation was to spread banking infrastructure in rural
areas and make cheap finance available to Indian farmers. The nationalised 14 major commercial banks were
Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central
Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce
(OBC), Punjab and Sind Bank, Punjab National Bank (PNB), Syndicate Bank, UCO Bank, Union Bank of
India, United Bank of India (UBI), and Vijaya Bank.
In the year 1980, the second phase of nationalisation of Indian banks took place, in
which 7 more banks were nationalised with deposits over 200 crores. With this, the Government of India held a
control over 91% of the banking industry in India. After the nationalisation of banks there was a huge jump in
the deposits and advances with the banks. At present, the State Bank of India is the largest commercial bank of
India and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of
9,000 branches.
PRIVATE BANKS
Private banking is a term for banking, investment and other financial services
provided by banks to private individuals investing sizable assets. The term "private" refers to the customer
service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank
advisers. It should not be confused with a private bank, which is simply a non-incorporated banking institution.
Historically private banking has been viewed as very exclusive, only catering for
high net worth individuals with liquidity over $2 million, although it is now possible to open some private bank
accounts with as little as $250,000 for private investors. An institution's private banking division will provide
various services such as wealth management, savings, inheritance and tax planning for their clients. A high-level
form of private banking (for the especially affluent) is often referred to as wealth management. For private
banking services clients pay either based on the number of transactions, the annual portfolio performance or a
"flat-fee", usually calculated as a yearly percentage of the total investment amount.[1]
The word "private" also alludes to bank secrecy and minimizing taxes through
careful allocation of assets or by hiding assets from the taxing authorities. Swiss and certain offshore banks
have been criticized for such cooperation with individuals practicing tax evasion. Although tax fraud is a
criminal offense in Switzerland, tax evasion is only a civil offence, not requiring banks to notify taxing
authorities.[
RATIONALE OF THE STUDY:The main objective of this study is to find the interrelationships between service
quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Indore. The study
sought to identify the most important attributes in bank settings, which may be used to review characteristics of
the banks as experienced by customers.
LITERATURE REVIEW:Gronroos (2000, p.46) defined service as, A service is a process consisting of a series of more or less
intangible activities that normally, but not necessarily always, take place in interactions between the customer
and service employees and/or physical resources or goods and/or systems of the service provider, which are
provided as solutions to customer problems.
Fogli (2006, p.4) define service quality as a global judgement or attitude relating to a particular service; the
customers overall impression of the relative inferiority or superiority of the organization and its services.
Service quality is a cognitive judgement.
In fact, the bulk of the research on service quality in banks has been in the context of
US and European banking institutions. However with India now at the path of growth and aiming global
integration has become a source of learning for many other economies. 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 thoughresearch has begun to explore this area
Angur et al (1999) examined the applicability of alternative service quality measure in the Retail Banking
industry in India. They conducted their research on the consumers of two major banks in India. They use
SERVQUAL model to measure the overall service quality. They found that all the dimensions are not equally
important in explaining variance in overall service quality. The result indicated that responsiveness and
reliability seem to be the most important dimensions followed by the empathy and tangible dimensions;
whereas, assurance appears to be the least important dimension. Finally, they concluded that SERVQUAL is the
best measure of service quality in banking industry. The applicability of the SERVQUAL measure is well
established in the retail banking industry. As mentioned earlier.
RESEARCH METHODOLOGY
Tools:The analysis would be done by using Percentage Analysis and Comparative Analysis
by
different Bar charts and Pie Charts.
BIBLIOGRAPHY
www.imf.org/external/pubs/ft/scr/2007/cr07230.pdf
www.wikipedia.com
www.docstoc.com
www.scribd.com
www.google.com
REFERENCES
Anand, S (2008), Customer Relationship Management in Indian Banks, Journal of Professional Banker,
Dec. 2008 pp 66-70.
Charlene Pleger Bebko, (2000), Service intangibility and its impact on consumer expectations of service
quality. Journal of Services Marketing, Volume: 14, pp: 9-26
John C. Groth, Richard T. Dye, (2001), Service quality: guidelines for marketers. Managing Service Quality,
Volume: 9, pp: 337-351
John C.Groth, Richard T. Dye, (1999), Service quality: perceived value, expectations, shortfalls, and bonuses.
"Investigating drivers of bank loyalty: the complex relationship between image, service quality and
satisfaction", The International Journal of Bank Marketing, Vol.16:7, 1998, 276-285.
Malhotra N.K. (2002). Marketing Research, Pearson Education, New Delhi
Kothari C.R (1999). Research Methodology Wiley & Sons, New Delhi
Kotler Philip (2003), Marketing Management, Prentice Hall of India, New Delhi