MARKET RESEARCH ON CUSTOMER SATISFACTION AT State bank of india

Presented By: Piyush Chitlangia - 13098 Abhinav Adarsh Satyam Jaiswal - 13002 -

Gulshan Asatkar

Vicky Srivastava - 13194

ACKNOWLEDGEMENT

At outset, we would like to thank the institutions for having provided us with an opportunity to carry out a project of this magnitude that helped me satisfy my curiosity as far as my area of interest was concerned. We would also like to thank our professor Mr Jay Singh for their guidance and constant support during the project duration. We would also like to thank all the respondent without whom this research and analysis would not be possible and no fruitful result would have achieved.

Executive Summary :
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Establishment The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted

geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the invertible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, fourfifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board.

Business The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later,

were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

RESEARCH PROPOSAL
OBJECTIVE IDENTIFICATION

The core objective of our research will be to check the customer satisfaction at State Bank Of India and also to give suggestions to SBI which will help them to give more satisfaction level to their customers. Our research will be coming under the Applied research.

PROBLEM IDENTIFICATION The main issue or problem due to which we are conducting our research is to check the satisfaction level of customer at SBI

SAMPLE SIZE: The sample size for our research will be 30 respondents who have account with SBI. PROCEDURE : It was decided to collect at least 30 questionnaires to well support to come at reasonable conclusion therefore, 30 questionnaires were floated among subjects using non-probability convenience sampling method. The respondents were asked to apprise about their feelings.

BUILDING THEORITICAL MODEL

PRODUCTS INTERNET BANKING BANK BRANCHES SERVICE CUSTOMER SATISFACTION

HYPOTHESIS : In order to check the relationship between the independent and dependent variables, four hypotheses were developed. H0: SBI Products provide customer satisfaction. H1 : SBI Products do not provide customer satisfaction.

H0 : Customers prefer Internet Banking H1: Customers do not prefer Internet Banking

H0 : Customer visit Bank branches

H1: Customer do not visit Bank branches

H1: Good service increases customer satisfaction H2: Good service does not have any effect on customer satisfaction.

Measures Questionnaire as an instrument will be used for this study which contained brief description about the purpose and the significance of the study.

Limititation :

The study limits to the students of ISB&M only which reduces the scope to cover other regions in India.

Sample size is small and may not be able to show the true picture of Population.

Some discrepancies may occur due to random sample undertaken Respondents may not give their exact views or false information Some confidential data may not be allowed to be used in this report The responses of the customer were also influenced by the past experiences.

RESPONDENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

X1 3 3 4 3 0 1 2 1 3 3 4 5 2 0 2 0 4 1 2 2 1 2 1 1 2 1 1 4

X2 5 3 1 4 1 2 3 2 1 3 4 2 0 2 2 2 3 2 4 2 3 3 2 0 4 2 1 5

X3 5.5 4.6 3 4 3 4.3 4 2.6 2 4.3 3.6 3.6 3.3 4.3 3.6 3.3 3 5 3.6 4.3 2.6 4 4.3 3.6 3.6 4.6 3.3 2.6

X4 3.3 4.3 3 4.3 4 3 3.6 3.3 3.3 3.3 3.6 2.3 3.6 3.6 3.3 4 3.3 2.2 3.3 3.6 3.3 4.6 4 3.6 4 5 3.6 3

X5 5.5 4.6 3.3 4 4.3 4.3 3.6 4.3 3 4.6 3 4.3 3.6 3.6 4 3.3 3.3 1.6 4 4.6 3.6 4.6 5 3.6 3.6 4.6 3.6 3.3

X6 6 4.5 4.6 3 3.5 4.7 4 4.3 4.5 4.7 3 3 3.8 3 4.8 3.5 3.5 3.8 4.2 5 3.5 4.5 3.2 5 4.5 4.5 3.7 3

X7 2.5 4.3 3 3 4.1 3.8 3.8 2.3 3 3.1 3.3 3 3.6 3 3.8 3.5 3.5 2 4.5 3.6 2.3 4.1 3.16 2.5 2.3 3.1 2.8 3.3

29 30
TOTAL Avg

4 1
63 2.1

1 1
73 2.4

2.3 5
110.8 3.6

3 5
107.3 3.5

3.3 5
117 3.9

3.7 4
121 4.03

2.5 4
96.76 3.2

Scale used :

VERY POOR = 1 POOR = 2 AVERAGE= 3 GOOD= 4 EXCELLENT = 5

So from the table we can analyse the following things : MOST LIKABLE AND UNLIKEABLE ELEMENT OF CONSUMER:

1. We can see for X1 the total customer satisfaction add up to only 63 This is the minimum in all the questions. 2. While on the other hand the maximum point we got is 1 21 for the question X6 that is : SBI CUSTOMERS ARE SATISFIED WITH THE PRODUCTS.

So on looking at the scale from 1 to 5, SBI should work on the following areas because they have got only less point on likert scale. Internet Banking. Services offered in bank. Facilities in branch.

HYPOTHESIS TESTING :

1. PRODUCTS :

It is based on the questionnaire question 6. So by looking at table We got a total of 121 for the question 6 Avg rating is 4.03 i.e. Which is maximum in all the questions . So we can say : SBI Products provide customer satisfaction. Therefore, Accept H0 & Reject H1

2. INTERNET BANKING: It is based on the questionnaire 2. So by looking at table We got a total of 73 for the question 2 Avg rating is 2.4 So we can say : SBI customer dont prefer internet banking. Therefore, Accept H1 & Reject H0

3. BANK BRANCHES : It is based on the questionnaire 7. So by looking at table We got a total of 96.76 for the question 7 Avg rating is 3.2 So we can say : Customers are satisfied with branch facilities Therefore,

Accept H0 & Reject H1

4. SERVICE :

It is based on question 3 So by looking at table We got a total of 110.8 for the question 3 Avg rating is 3.6 So we can say : Customers are satisfied with services provided in bank Therefore, Accept H0 & Reject H1

Recommendation and conclusion

After doing the market survey on SBI we concluded the strength and weaknesses of the SBI : STRENGTH WEAKNESS

1.Years of Experience 2.Huge ATM Network 3.Transparency in Charges 4.Government Support 5.Safety and Security of Money

1.Lake of Young Employee

2.Excessive Documentation 3.Bureaucracy 4.Less control on employee

6.Experienced Employee 5.Poor technology

7.Physical environment & Ambience 6.Large income from Loan Poor recovery system interest

7.Less knowledgeable employee 8.Rigid work culture

OPPORTUNITIES

THREATS

1.Even expanding rural, urban & International Market. 2. Fraud and cheating with customer from private banking 3. Proper Co Ordination and

1. Constant fear in the minds of customers towards private bank. 2. Shifting customer 3. Private bank providing more facilities at lower charges

Communication between Bank and Customer 4. Dissatisfy from private banking 5. So much hidden charges of private banks 6. Time to time follow up to customer and their Guarantors

4. Quick Dynamic employees and greater technological product.