Impact of service quality on customer satisfaction in UCBL

A Research Paper on
Impact of Service Quality on Customer Satisfaction

in the Context of United Commercial Bank Limited
Submitted by
Nabila Badrul
ID # 0920018
An Internship Report Presented in Partial
Fulfillment of the Requirement for the Degree
Bachelor of Business Administration
Independent University, Bangladesh
September 12
th
, 2013.
Impact Of Service Quality On Customer Satisfaction In The Context Of
United Commercial Bank Limited
By
NabilaBadrul
ID: 0920018
An Internship Report Presented in Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Business Administration
INDEPENDENT UNIVERSITY, BANGLADESH
September, 2013
Impact Of Service Quality On Customer Satisfaction In The Context Of
United Commercial Bank Ltd.
By
Nabila Badrul
ID: 0920018
Has been approved
September, 2013
__________________________
Md. RajibRahman
Lecturer
School Of Business
Independent University, Bangladesh
Letter of Transmittal
12
th
September, 2013
To,
Mr. Md. Rajib Rahman
Lecturer
School of Business
Independent University, Bangladesh.
Subject: Submission of internship report.
Dear Sir,
With due respect, as a student of Independent University, Bangladesh, I have prepared my
internship report on Impact of service quality on customer satisfactionin the context of UCBL.
I have tried my level best to follow your guidelines in every aspect of planning of this report. I
hope you will appreciate my effort. I have done the study in a complete form and I have done my
level best to conduct this in a professional manner. It is a true that, it could have been done in a
better way if there were no limitation. I hope you will assess my report considering the
limitations of the study.
I, therefore, hope you would be kind enough to accept my internship report.
Yours Sincerely,
..
NabilaBadrul
ID: 0920018
Independent University, Bangladesh.
Acknowledgement
At the very beginning I would like to express my deepest gratitude to the almighty for giving me
the strength and the composure to finish the task within the scheduled time. I would like to thank
my honorable supervisor Mr. Md. Rajib Rahman, Lecturer of Independent University,
Bangladesh for guiding me throughout the course of my BBA internship program.
My deepest appreciation and special thanks goes to Business Administration department of
Independent university of Bangladesh for providing me an opportunity to come closer to the real
World and help me in enriching my knowledge.
In this connection, I would like to take chance to give thanks to all the employees of United
Commercial Bank Ltd, Corporate Branch, Dhaka. Speciallymy supervisor Mr. Kazi Muzibul
Islam. I also thank all of my other collogue for helping me to complete not only this internship
report but also whole BBA Program. For their suggestions and comments which inspired me
greatly to prepare the report successfully and their heartiest cooperation which makes my
destination easier.
S/ N Descr i pti on Page
1. Executive Summary 01
2. Introduction 02
3. Background Of The Report 03
4. Objective Of The Study 03
5. Scope Of The Study 03
6. Organization Overview 04
7. History 04
8. Management 04
9. Corporate Information At A Glance 05
10. Vision Of United Commercial Bank 05
11. Mission Of United Commercial Bank 05
12. Core Values Of The United Commercial
Bank
05
13. Functions Of The United Commercial Bank 06
14. The Strategies Of United Commercial Bank 06
15, The Main Goals Of United Commercial Bank 06
16. ORGANOGRAM OF UCBL 07-08
17. Departments Of UCBL 08
18.
SWOT ANALYSIS OF UCBL
09-10
19. PRODUCTS AND SERVICES 10-11
20. GENERAL BANKING DEPARTMENT 11
21. CASH MANAGEMENT DEPARTMENT 11-12
22. ACCOUNT OPENING DEPARTMENT 13
23. TYPES OF ACCOUNT 14-15
24. ACCOUNT BILLS &REMITTANCE
DEPARTMENT
17-19
25. CLEARING DEPARTMENT 19-21
26. MY WORK RESPONSIBILITIES AT UNITED
COMMERCIAL BANK
21-22
RESEARCH PART
27. PREFACE 23
28. Purpose Of The Study 24
29. Statement Of The Problem 24-25
30. Literature Review 26
31. Relationship Between Service Quality And
Customer Satisfaction
27
32. Conceptual Framework 28
33. Research Questions And Hypotheses 28-29
34. Methodology 29-30
35. Data Collection And Data Types 30-31
36. Results 31
37. Cross Tabulation Analysis 31-34
38. Hypothesis Testing 34-36
39. Linear Regression Analysis 36
40. Significance Of The Study 37
41. Limitations: 38
42. Recommendation 39
43. Conclusion: 40
44. References: 41-43
45. Appendix: 44-48
Impact of service quality on customer satisfaction in the context of UCBL|
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EXECUTIVE SUMMARY
United Commercial Bank Limited (UCBL) is one of the first generation private sector Banks
in Bangladesh, commenced its commercial operations from mid 1983 and has since been able
to establish one of the largest network of 130 branches in six different districts.
United Commercial Bank Ltd. offers all kinds of Commercial Corporate and Personal
Banking services covering all segments of society within the framework of Banking
Company Act and rules and regulations laid down by our central bank. Diversification of
products and services include Corporate Banking, Retail Banking and Consumer Banking
right from industry to agriculture, and real state to software.
UCBL Corporate branch is one of the branches which facilitate all kind of facilities that a Bank
offers. It has General Banking, General Advance as well as Foreign Exchange Advance
Department.
United Commercial Bank Limited is the preferred choice in banking for friendly and
personalized services, tailored solutions for business needs, global reach in trade and commerce
and high yield on investments, assuring Excellence in Banking Services
This report is the outcome of my internship and it contains a clear idea about the activities, the
procedure of activities and the performance of that branch. In this report I tried to find the factors
of service quality influencing customer satisfaction. I used simple random sampling under the
probability sampling method and used structured questionnaire for collecting information. The
question will be distributed via a convenience sampling. This research used SPSS 17.0 because it
is such a statistical data analysis tool that offers greater flexibility in data analysis and
visualization. This report is divided into two parts, the first part holds the banks profile and the
second part holds the research part.
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Introduction
In the present, world money is circulated all over the globe. Globalization, technological
advances and other factors money is circulating unimaginably. Financial Institutions mainly
Banks play a pivotal role in matching a depositor and lenders and channeling money and making
the economy more efficient. Although the history of Banking goes back to the 14th century in
Europe but Banks are now everywhere. Banks in Bangladesh play a significant role compared to
other financial Institutions.
Although there are different types of banks specialized for different purposes and with different
brands and capital structure, they are regulated by standards such as the BASEL standards (to
keep a minimum amount of capital) BASEL II etc. Banks offer a wide range of products and
services to appeal to different customers and be competitive in the market place. Amongst the 32
commercial banks which operate in Bangladesh United Commercial Bank Ltd. has a unique
position in the minds of clients and regulatory bodies. The Company was founded in 1983 and
operates in more than 104 countries worldwide.
The competition in the banking industry has intensified more than ever before. Global financial
crisis, stock market crash, recessions and other factors affected the banking industry. So banks
should position themselves at a unique place in the minds of the customers by offering attractive
offers such as higher interest rates or by offering superior service to the customers. Services
include financial advice, flexible rates or dates of payment, portfolio management etc.
Nevertheless, the banking sector occupies an important place in Bangladesh because of its
intermediary role; it ensures allocation and relocation of resources and keeps up the momentum
of economic activities. It plays a pivotal role in the economic development of the country and
forms the core at the money market.
In Bangladesh, any institution which accepts for the purpose of lending or investment, deposits of
money from the public, repayable on demand or otherwise, and is transferable by checks, draft
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order or otherwise, can be termed as a bank. The purpose of banking is thus to ensure transfer of
money from surplus unit to deficit units or in other words, to work as the repository of money.
BACKGROUND OF THE REPORT
This internship report is originated as a partial fulfillment of the BBA program of School of
Business, Independent University Bangladesh. This report is a mandatory requirement for BBA
completion. I have worked at United Commercial Bank (Corporate Branch) for three month and
this internship has helped me to match our theoretical knowledge with practical understanding.
As an intern I have worked there under the general banking department of the corporate branch
which is situated in the Gulshan Avenue, there I have worked under the Account Opening
Section, Remittance, Clearing Section, Debit Card Section but most of the time of my internship I
worked in the account opening section as the working load of that section is higher than the other
section. Through my working under the general banking department I have realized that how
much important the relationship banking is and the customer satisfaction by providing the best
services of the financial institution likes UCBL. Thats why I discussed it with my supervisor and
decided to do An analysis of customer satisfaction of general banking services with a focus on
United Commercial Bank (Corporate Branch).
OBJECTIVE OF THE STUDY
To identify the level of customer satisfaction.
To give a brief idea on the importance of customer satisfaction in general banking.
To identify the banking relationship with the customers.
To identify the problem if any to satisfy the customers through providing bank services.
To identify that the employees understand the specific needs of their customers.
SCOPE OF THE STUDY
This report has been prepared on the basis of experience gathered during the period of
internship. The report will give a clear idea about the services of corporate branch of United
Commercial Bank to deal with the customers and gain their optimum level of satisfaction.
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ORGANIZATION OVERVIEW
United Commercial Bank Limited (UCBL) is a Bangladesh based financial institution that
provides banking services. The services include personal and business banking, loans, credit
cards, online banking and money transfer services. The bank is able to establish one of the
largest networks of 130 branches among the first generation banks in the private sector.
With its firm commitment to the economic development of the country, the Bank has already
made a distinct mark in the realm of Private Sector Banking through personalized service,
innovative practices, dynamic approach and efficient Management. The Bank, aiming to play a
leading role in the economic activities of the country, is firmly engaged in the development of
trade, commerce and industry thorough a creative credit policy.
History
United Commercial Bank Limited incorporated on 26 June 1983 as a public company with
limited liability under the Companies Act 1993. The bank obtained permission to commence
business with effect from 26 June 1983 and started banking operations on 29 June 1983 with an
authorized capital of Tk. 100 million divided into 1 million ordinary shares of Tk. 100 each.
Management
The Bank has in its Management a combination of highly skilled and eminent bankers of the
country of varied experience and expertise successfully led by Mr. Muhammed Ali, a dynamic
banker, as its Managing Director and well educated young, energetic and dedicated officers
working with missionary zeal for the growth and progress of the institution.
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Corporate Information at a Glance
Registered Name United Commercial Bank Limited
Registered Head Office BULUS CENTER, Plot-CWS-(A)-1,Road NO:34
Vice Chairman Mr.Showkat Aziz Russell
Director & Chairman
(Executive Committee)
Mr.M.A.Sabur
Director & Chairman
(Audit Committee)
Mr. Md. Jahangir AlamKhan
Managing Director Mr.Muhammed Ali
Number of Branches 130
The Corporate vision of United Commercial Bank
To be the bank of first choice through maximizing value for their clients, shareholders, &
employees and contributing to the national economy with social commitments.
The Corporate mission of United Commercial Bank
To offer financial solutions that create, manage and increase their clients wealth while
improving the quality of life in the communities they serve.
Core values of the United Commercial Bank
They put our customers first
They emphasize professional ethics
They maintain quality at all levels
They believe in being a responsible corporate citizen
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They say what we believe in
They foster participative management
Functions of the United Commercial Bank
a. The main task of the United Commercial Bank Ltd is to accept deposited from various
customers through various accounts.
b. Provides loans on easy terms and condition.
c. It creates loan deposit.
d. The bank invest it fund into profitable sector
e. It transfers money by Demand Draft (DD), Pay Order (PO) and Telegraphic Transfer etc.
f. The bank is doing the transaction of bill of exchange, Cheque etc. on behalf of the clients.
g. United Commercial Bank Ltd assists in the Foreign Exchange by issuing Letter of Credit.
h. The bank insures the securities of valuable documents of clients.
i. It brings the increasing power of dimension of transaction.
j. Above all, United Commercial Bank Ltd helps the businessmen financially by giving
discount facility for bill of exchange and by providing the facility of Letter of Guarantee.
The strategies of United commercial Bank
Utilize all available resources to develop various plan, policies and procedures in each of the
objective and goal areas.
Synchronized and steady growth of the bank.
Implement plans, policies and procedures.
Utilize term of professional Employees.
Search for a total customized solution of IT for the purpose of full automation step.
The main Goals of United Commercial Bank
Develop a plan for offering better customer service.
Develop a realistic deposit mobilization plan.
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Develop appropriate lending risk assessment system.
Develop capital plan.
Develop a system to make good advances.
Develop appropriate management structure, system, procedures & approaches.
Develop scientific MIS to monitor banks activities.
ORGANOGRAM OF UCBL
Managing Director (MD)
Additional Managing Director (AMD)
Deputy Managing Director (DMD)
Senior Executive Vice President (SEVP)
Executive Vice President (EVP)
Senior Vice President (SVP)
First Vice President (FVP)
Vice President (VP)
First Assistant Vice President (FAVP)
Assistant Vice President (AVP)
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Departments of UCBL
If the jobs are not organized considering their interrelationship and are not allocated in a
particular department it would be very difficult to control the system effectively. The
Departments of United Commercial Bank Limited are given:
Departments of UCBL
Cash
Department
Customer
Service and
Acount
opening
Department
Accounts
Department
Card
Devision
IT
Department
Clearing
Department
Remmitance
Department
Credit
Department
Foreign
Exchange
Department
Senior Executive Officer (SEO)
Executive Officer (EO)
Management Trainee Officer (MTO)
Senior Officer (SO)
Officer (O)
Junior Officer(JO)
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SWOT ANALYSIS OF UCBL
SWOT analysis is a strategic planning method used to evaluate the strengths, weaknesses,
opportunities, and Threats involved in a business venture. In banking sectors it is important to
identify the internal and external factors that are favorable and unfavorable to achieve its
objectives. From the SWOT analysis we can figure out ongoing scenario of the bank. So to have a
better view of the present banking practice of UCBL, the SOWT analysis of UCBL is given
below
Strength: It is an internal factor. It deals with the organizations own strength. UCBLs
strengths are
Efficient administration
Corporation with each other
Fewer default loans.
Good banker-customer relationship
Energetic as well as smart work force
Well-furnished and air-conditioned bank
Weaknesses: Weakness is also an internal factor of SWOT analysis. UCBLs weaknesses are
Lack of available ATM booths.
Limited consumer credit scheme
Enhance of new private banks
Lack of promotional activities
Officers in the junior level are not highly qualified.
Opportunities: Opportunities are external factors which indicate the following:
Huge business area
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Introducing different debit and credit card
Industrys positive growth
Introducing any branch banking through online
Flexible credit schemes
Reliably to local public
Threats: Threats are external factors of SWOT analysis. The threats for UCBL are
Different classic services of foreign banks
Better developed card division of other private banks
Uses of modern technologies by the rival banks
Political unrest and government restricted banking strategies.
The number of rivalry is too high into the banking industry
PRODUCTS AND SERVICES
The Bank provides a broad range of financial services to its customers and corporate clients.
The Products and Services UCBL offers are:
UCB Multi Millionaire
UCB Money Maximizer
UCB Earning Plus
UCB DPS Plus
Western Union Money Transfer
SMS Banking Service
Online Service
Credit Card
One Stop Service
Time Deposit Scheme
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Monthly Savings Scheme (MSS)
Deposit Insurance Scheme
Fixed Deposit Receipt (FDR)
Inward & Outward Remittance
Travelers Cheques
Import Finance
Export Finance
Working Capital Finance
Loan Syndication
Underwriting & Bridge Financing
Trade Finance
Industrial Finance
Foreign Currency Deposit A/C
NFCD(Non Residence Foreign Currency Deposit A/C )
RFCD(Resident Foreign Currency Deposit Account)
Consumer Credit Scheme
Locker Service
GENERAL BANKING DEPARTMENT
General Banking is the starting point of all the banking operating. General Banking department
aids in taking deposits and simultaneously provides some ancillaries services. It provides
those customers who come frequently and those customers who come one time in banking for
enjoying ancillary services. It is the department, which provides day-to-day services to the
customers. Every day it receives deposits from the customers and meets their demand for cash
by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc.
CASH MANAGEMENT DEPARTMENT
Cash section demonstrates liquidity strength of a Bank. It is also sensitive as it deals with
liquid money. It is the most important department that is contributing to the earning of the
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bank in terms of goodwill and customer satisfaction with their quality and prompt services.
Cash department of UCB Corporate Branch is well equipped and decorated. There is also
electronic counted machine and computers with online system in this department. Balance of
account can be seen with few seconds. So cash payment can be made very promptly.
Transaction involving cash is called cash transactions. The cheques/ instrument / vouchers
which are paid in cash over the counter are cash transactions. It has two types of services:
Cash Receipt.
Cash Payment.
Cash Receipt
The depositor will use the prescribed deposit slip supplied by the bank to deposit
cash/cheques/ demand draft/ pay order etc. All cash receipt voucher shall be received by the
teller.
Cash Payment
At this counter cash is paid to the customer on demand by placing a cheque over counter.
On-Line Banking Operations
The UCBL has 130 branches and all transactions among the branches are done through Online.
UCBL uses customized software for its day to day transaction. The activities are:
Deposit cash in any branch in any account.
Withdraw cash fromany branch.
Transfer fromany account to any branch.
There are several charges for online transaction. Such as-
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Inter City Transaction charges
Amount Commission (TK) VAT (TK)
Tk. 1-50000 Nil Nil
Tk.50001-100000 50 8
Tk.100001-1000000 100 15
Above 1000000 200 30
Within City Transaction charges
Amount Commission (TK) VAT (TK)
Tk. 1-50000 Nil Nil
Tk.50001-100000 25 4
Tk.100001-1000000 50 8
Above 1000000 100 15
ACCOUNT OPENING DEPARTMENT
Responsibility of the customer service starts with opening of new account in the name of new
customer. This is the starting point of a relationship between the banker and the customer. By
opening an account, the bank bridge its customer to avail the facilities provided by the bank. The
activities of account opening department include:
Opening new accounts
Cheque book issue
Debit card issue
Closing of accounts
Account Transfer
Activation of dormant account
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Stop payments of cheques
Account enquiry
Issue notice to dormant account holder
Transaction statement
Bank solvency and other certificates
Other services.
Types of Account
UCBL has several types of deposits for its customers. Like-
Savings Bank (SB) Account
This deposit account is basically for the small scale savers as well as for the service holder who
wants to open a salary account. The main goal is to encourage the saving habits among the
customers. Interest is paid on this account.UCBL offers 4.5% rate of interest for SB accounts.
Current Deposit (CD) Account
It is popular known as Current Account. Any individual, company, firm, can open this type of
account in its own name. The bank requires some necessary documents to open this type of
account. This is non-interest bearing account. Bank doesnt pay any interest to CD account
holders. Businessmen and the companies are the main customers of this account. The bank
provides overdraft facilities. The initial deposit is depending on the type of the account holders
transaction. One can deposit Tk2000 initially or Tk 5000 or as much as he/she can.
Short TermDeposit (STD) Account
This is opened and operated for short time (7 to 89 days) and for specific purpose. It is also an
interest bearing account and where rate of interest is generally below the savings rate.
Generally this account is opened by the firms/persons who want liquidity and some return
simultaneously on their deposits. One can withdraw his or her account on special notice.
Customer deposit money for a short time period.UCBL offers 4.5% interest rate on Short Term
Deposit.
Fixed Deposit Receipt (FDR) Account
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Individuals, Firms, Companies, Associations may open this account. The deposit is taken for a
specific fixed period of time, such as 3 months, 6months, 1-year etc.
There are few schemes UCBL is offering its customers. Such as-
Monthly Savings Schemes.
Deposit Pension Scheme Plus.
Money Multiplier.
Money Maximize Scheme.
Types of customers generally open accounts with banks
Individuals
Proprietorship firms
Partnership firms(registered & unregistered)
Private limited companies
Public limited companies
Multinational companies
Public sector corporations
Municipalities/municipal corporations/local bodies etc.
Club/societies/associations/school/colleges/universities etc.
Trustees
Wage earners.
Letter of Thanks:
After completing all the formalities of opening an account, a letter of thanks is send to the
address of the customer. If letters addressed to customers, introducers or referees are returned
undelivered or not satisfactorily responded, then no service should be provided to the customer
unless specifically approved by the Branch Manager.
Letter of Welcome:
Letter of welcome send to the potential customer to let them know about the latest offer of
UCBL.
Cheque Book Issue:
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When the customer comes to bank with acknowledgement, the bank provides the cheque book. It
takes three to seven days from the date of A/C opening to provide a cheque book to the customer.
Debit Card Issue:
United Commercial Bank offers debit card facilities to its customers. Its an alternative to cheque
book. A customer can withdraw cash from his account without coming to the bank from the ATM
booths of his own bank as well as from that of the others. If a customer demands debit card along
with the cheque book, the bank asks them to fill in a form and inform the customer of the time
required to supply the debit card. On the mentioned date the bank provides the debit card and
informs the customer how to operate it (if necessary).
Account Closing
Account closing is also done by account opening division. The customer may close his/her/their
account(s) at any time giving notice to the bank. Similarly, the bank on genuine ground may close
customer(s) account giving reasonable notice for the action or without any notice if the conduct
of the account is not satisfactory to the bank or any reason(s) whatsoever. In either case, bank will
realize a minimum closing charge from the customers account.
Account Transfer
Account opening department also transfers account from one branch to another on customers
request. The steps are:
1. Application for account transfer
2. The customer(s) shall surrender the unused cheque books/leaves along with the requisition
slip and other materials (if any) supplied by the bank for operation of the account.
3. Verification of signature and approval of operation head.
4. Inform the respective branch.
5. Forward the documents.
6. Close the account.
Dormant Account Activation
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An account is considered or classified as Dormant if the account remains inoperative for six
months. To activate dormant account-
1. Account holder must come to bank and fill up an activation form.
2. Signature verification and approval of operation head.
3. Activation of account.
Bank Account Statements and Certificates
All types of bank statements and certificates such as solvency certificates, income tax certificates,
B.O. certificates etc. are issued by the bank in favor of the customers. As per customers
instruction the bank dispatch the account statement/advice to his/her/their address. Moreover, on
customers request, bank provides statement and certificates related to the account.
ACCOUNT BILLS &REMITTANCE DEPARTMENT
Remittance is one of the important items of bank business. Now a day business person cannot
run his business without bank remittance facilities. Sending some money from one station to
another through banking channel is called remittance. Remittance may be both local and foreign.
The main instruments used for local remittance of fund are:
Pay Order (PO)
Demand Drafts (DD).
Telegraphic Transfer (TT)
Pay Order (PO)
Payment order is meant for making payment of the bankers own of the customers dues
locally and not for affecting any remittance to outstation. In a sense, the payment order is
used for making a remittance the local creditors.
Issuance of Pay Order
PO issuance thereof
Upto Tk. 1000/- Tk. 25/-
Above Tk. 1000/- but not exceeding Tk. 1.00 lac Tk. 50/-
Over Tk. 1.00 lac but not exceeding Tk. 5.00 lac Tk. 75/-
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Over Tk. 5.00 lac Tk. 150/-
Cancellation Charges of PO Tk. 50/- per instance
Charges for issuance of Duplicate Instrument Tk. 100/- per instance
Demand Draft (DD)
A bank draft is an order to pay money drawn by one office of the bank on other office up on
other office of the same bank for a sum of money payable to order on demand. A bank draft is
an order by one branch to another branch of the same bank outside the clearing zone.
Issuance of Demand Draft
Issuance procedure of Demand Draft is same as of Pay Order.
Issuance of Duplicate PO/DD
If the customer wants to issue a duplicate DD, than customer is asked to do the following
formalities:
Making a general diary (GD) in the nearest Police Station.
Furnishing an Indemnity Bond in Tk.50/= stamp.
The banker immediately marks Stop Payment in the register after receiving the application
fromthe customer and a duplicate PO/DD is issued.
Telegraph Transfer (TT)
Sometimes the remitter of the fund requires the money to be available to the payee immediately.
In that case, the banker is requested by him to remit the funds telegraphically. Here fund is
transferred through the aid of Test Key Materials and SWIFT. TT can be both foreign and
local. On received of TT massage test number should be checked immediately.
Then voucher to be passed through register duly authenticated by authorized officials.
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DD/TT issuance thereof
Commission @0.10%
MinimumTk. 50/-
Cancellation Charges of DD/TT Tk. 50/- per instance
Charges for issuance of Duplicate Instrument Tk. 100/- per instance
15%VAT on commission earning
Crossing of Cheques and Endorsement
Cheque
Cheque is a negotiable instrument. Cheques can be of two types:-
Open or Uncrossed Cheque.
Crossed Cheque.
Open Cheque: An open cheque is a cheque which is payable at the counter of the drawee
Bank presentation of the cheque.
Crossed Cheque: A crossed cheque is a cheque which is payable only through a collecting
banker and not directly at the counter of the bank. There are two mode of crossing- General
Crossing and Special Crossing.
Endorsement
Endorsement is an essential part of day to day work in Bank. A cheque requires varieties of
endorsement like-
Branch Name
Account Number
Signature Verification etc.
CLEARING DEPARTMENT
Clearing Department of a bank performs one of the important jobs of general banking division
which centers in clearing of cheques. As such, the clearing department eases, fosters and ensures
the receipt and transfer of payment on behalf of its customers. In this respect the activities of
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clearing department are sensitive one since the credibility of the bank to the customers relies on
the smooth, efficient and effective functioning of the department.
Clearing department divides the cheques deposited for clearing into two inward cheques and
outward cheques. Inward cheques are those placed by different bank branches and which are
issued by the account holder of that very branch (i.e. inward cheque receiving branch). Outward
cheques are those deposited in particular branch of a bank and which are issued by the account
holder of the other banks. In other words, inward cheques for a particular bank branch are those
which they receive from the Bangladesh Automated Cheque Processing System (BACPS) and for
which branch customers account will be debited. On the other hand, outward cheques are those
which a bank branch places to the Bangladesh Automated Cheque Processing System (BACPS)
and for which the bank customers account will be credited on realization of the fund through
clearing.
Clearing Session
Clearing Window Presentation Return Settlement
Regular value 1.00 pm 5.00 pm 5.01 pm
High value 12.00 pm 4.00 pm 4.01 pm
Items and Instrument Eligible for BACPS
Savings Bank Account Cheque
Current Account Cheque
Bankers Cheque
Cash Credit Account Cheque
Dividend Warrant
Demand Draft
Gift Cheque
Interest Warrant
Refund Warrant
Pay Order
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Govt. Cheque
Credit Card Cheque
Foreign Taka Demand Draft
Fractional Dividend Warrant
MY WORK RESPONSIBILITIES AT UNITED COMMERCIAL BANK
As an intern I had started my internship program at United Commercial Bank from 2
nd
June,
2013. The duration of my internship was three months. I have worked in different departments of
the office. My supervisor at the bank was Mr. Kazi Muzibul Islam. During those time period I got
enough opportunity to work in different segments of general banking division in the corporate
branch. I am grateful to many people in the branch for giving me their valuable time and
explaining me about my responsibilities during those three months. As a fresher in the corporate
world those people whom were appointed as an employee at UCBL helped me a lot to understand
the environment. They played vital role to guide me about my responsibilities.
From the first day at office I was warmly welcomed by the officers over there at the corporate
branch. Then I was welcomed by the account opening officer Mr. Jahangir Hossain and Mr.Sajjad
Mahbub. They introduced me to the necessary papers, the daily important documents. There I had
learnt the following:
Dealing with the customers,
And how to give them quick service.
Filling up the forms and what are the mandatory documents needed for opening an
account,
How to fill up the kyc,
How to use and update the information into the Bank Ultimus,
How to issue cheque book, and after delivering the cheque book to the customer
Authorization procedure for using the cheque book by the banks personal software, and
How to calculate the charge which will be deduct from the customers account for issuing
cheque books at UCBL.
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Then I have done all those things with the help of the officers. Then for a week Ive worked in the
Account department where junior officer S.M.Nahiyan introduced me with my responsibility
which was to file up them according to the serial and keep a record in the Computer. I was
appointed to file the document for some days.
Then I learned about the remittance section from the officer named Tahmina Tania where she
taught me how to receive cheques, how to do pay orders, what are the essentials for the cheques
etc.There my responsibility was to collect the cheques from the clients, check the cheques,and do
pay order according to the demand of the customers. Sometimes I had to update the fixed deposit
forms, so last but not the I got an opportunity to work there and also lucky for getting such a
friendly working environment.
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Research Part
IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN THE
CONTEXT OF UCBL
Abstract
In this paper, I study the drivers of customer satisfaction for financial services. This study tries
to know the relationship between service quality and customer satisfaction through the
United Commercial Bank Limited, Gulshan Branch, Dhaka. Data was collected from 30
customers. A questionnaire elicited information on socio-demographic variables along with
human, technical, and tangible aspects of service quality and customer satisfaction. Three
aspects of service qualitypeople, process through technology and physical evidence are
considered for the study. Results suggest that better human, technical and tangible aspects of
service quality of the bank branches increase customer satisfaction. Increase in service quality
of the banks can satisfy and retain customers.
PREFACE
Service providers are increasingly concerned to develop and maintain customers pleased as they
are aware that satisfaction leads to increased and guaranteed income and is a key determinant of
market share and profitability. Financial institutions are facing challenges of intense competition
and increased customers expectations over the last few years (Cheng et al., 1996). Increasing
competition and continuously evolving customer demands have led Bangladeshi banks to identify
drivers of customer satisfaction. Customer satisfaction leads to retention of customer. This is
important since cost of acquiring a new customer is much more than cost of retaining the
customer. Banks are giving top priority to providing better service quality to satisfy the customer.
New marketing concepts and strategies (Ennew et al., 1993) paying greater attention to
identifying customer needs and expectations (Morgan, 1989), and offering high service quality to
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customers (Thwaites and Vere, 1995; Lewis, 1993) have become important topics of research.
The interest is largely driven by the realization that high service quality results in customer
satisfaction with the product or service, greater willingness to recommend someone else,
reduction in complaints and improved customer retention (Zeithaml et. al., 1996). With increased
competition from new products and delivery channels, firms in the financial services industry
strive to succeed by improving their performance. To improve performance, the focus is on both
cost reduction and quality improvement. Firms try to improve their operational efficiency and
enhance quality in the eyes of their customers. This paper examines whether service quality
influences customer satisfaction in the United Commercial Bank Limited, Dhaka. The study was
conducted in Gulshan Branch, Dhaka.
PURPOSE OF THE STUDY
The purpose of the study is to present and test a model, which identifies the relationship of
service quality and customer satisfaction with the financial performance of the United
Commercial Bank Limited, Gulshan Branch. Customer satisfaction leads to retention of
customer. This is important since cost of acquiring a new customer is much more than cost of
retaining the customer. Banks are giving top priority to providing better service quality to satisfy
the customer. New marketing concepts and strategies (Ennew et al., 1993) paying greater
attention to identifying customer needs and expectations (Morgan, 1989), and offering high
service quality to customers. Hence, this paper will begin with a literature review of current
theoretical arguments, followed by a description of a model, developed by the authors, to show
the relationship between customer perceptions of banks services quality and their profitability via
customer satisfaction. Data collection methods and analysis techniques will then be explained.
The present study aims to identify the relationship of service quality and customer satisfaction
with the financial performance of the bank.
STATEMENT OF THE PROBLEM
Customers assessment about the service quality of a firm depends on their service encounter.
Traditionally, service quality is the difference between customers expectation and performance
of the service actually delivered. Parasuraman et al. (1988) suggest a measurement scheme using
SERVQUAL that provides a 22 item scale to assess service quality on five dimensions:
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reliability, responsiveness, assurance, empathy and tangibility. Reliability is the ability of
employees to perform the promised service accurately. Responsiveness is the willingness of
employees to provide prompt service. Assurance is the knowledge and courtesy of employees and
their ability to install trust and confidence in customers. Empathy is care and individualized
attention given to customers. Tangibility includes physical evidence of the service. These
dimensions focus on human aspects of service delivery and tangible aspects of the firm. The
SERVQUAL instrument has been subjected to criticism (Brown et al., 1993).
Customer-oriented attributes of service personnel are reliability, responsiveness, assurance and
empathy that reflects the soft quality attributes of service providers (Zeithaml & Bitner, 2000).
Favorable interpersonal interactions between customers and employees based on these attributes
can improve customer satisfaction (Hartline et al., 2000; Parasuraman et al 1985). Reliability
helps employees to consistently respond to customer needs and meet deadlines. Employees with
responsiveness and assurance have a greater knowledge about the companys products, services
and the needs of customers. Empathy helps in improving communication process between
employees and customers. Due to the psychological and physical closeness that exists between
employees and customers in service encounters, employees attitudes often have a spill over
effect on customer satisfaction.
Bank customers can conduct their transactions over the internet, telephone and cell-phone and
through ATM, debit cards and electronic banking. Information technology improves customer
service as it is convenient to access and use (Bitner, et al., 2000). Tangible cues in the physical
environment of a service firm influence behavior of customers and their future purchase decisions
(Burgers et al., 2000). Tangible elements include exterior facility of the firm like parking, interior
decor, furniture and the equipment used. Consumers look at these tangible elements and infer
about the firm and its service performance. Services are intangible and customers are often
present during the process. Therefore, physical environment can have an influence on customer
perception of service quality (Baker et al., 2002; Parasuraman et al., 1988). Accordingly, it is
proposed that better human, technical and tangible aspects of bank services will increase the
satisfaction level of customers.
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LITERATURE REVIEW
Service Quality
Service quality, as perceived by customers, involves a comparison of what they feel the service
should be (expectation) with their judgment of the services they received (perceptions)
(Parasuraman et al., 1985). Service quality has been described as a form of attitude, but not
equivalent to satisfaction that results from the comparison of expectations with performance
(Parasuraman et al., 1988; and Bolton and Drew, 1991). The commonly accepted orientation
defines service quality as the extent to which a service meets customers needs or expectations
(Lewis and Mitchell, 1990). It is defined as the difference between customer expectations of
service and perceived service. If expectations are greater than performance, then perceived
quality is less than satisfactory and hence customer dissatisfaction occurs (Parasuraman etal.,
1985; Lewis & Mitchell, 1990). Parasuraman et al. (1988) developed a measurement scale
SERVQUAL, which has 22 items to assess service quality on five dimensions: reliability,
responsiveness, assurance, empathy and tangibility. Reliability, responsiveness, assurance,
empathy dimensions are related to people aspect of service quality and tangible aspect is related
to physical evidence. SERVQUAL instrument has been subjected to criticism (Brown et al.
1993). Several innovative IT-based services such as Automated Teller Machines (ATMs),
anywhere anytime banking, smart cards, internet banking etc. are no longer alien concepts to
banking customers (Rawani and Gupta, 2000). Service quality can be assessed in terms of
interaction with service personnel, technology interface and physical evidence (Lenka, Suar and
Mohapatra, 2009).
Customer satisfaction is fundamental to marketing. Researchers have defined it in different ways.
Satisfaction is described as an evaluation of an emotion (Hunt, 1977, pp. 459-460), suggesting
that it reflects the degree to which a consumer believes that the possession and/or use of a service
evokes positive feelings (Rust and Oliver, 1994). According to Engel and Blackwell (1982, p.
501) it is, an evaluation that the chosen alternative is consistent with prior beliefs withrespect to
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that alternative. Oliver (1980) defines that Customer satisfaction is a summary psychological
state when the emotions surrounding disconfirmed expectations are coupled with the consumers
prior feelings about consumption experience. Kotler (2000) expresses that satisfaction is a
persons feelings of pleasure or disappointment resulting from comparing a products perceived
performance (or outcome) in relation to his or her expectations. It isa judgment that the product or
service feature, or the product or service itself, provided (or is providing) a pleasurable level of
consumption-related fulfillment, including levels of under or over fulfillment(Oliver 1997, p. 13).
Howard and Sheth (1969, p.18) defined customer satisfaction as the buyers cognitive state of
being adequately or inadequately rewarded for the sacrifices he has undergone. Customer
satisfaction results when customers either confirm their pre-purchase expectations for a purchased
service or positively disconfirm (exceed) their expectations regarding purchased services,
resulting in some level of post purchase affect toward the experience (Cardozo, 1965). On the
basis of above, customer satisfaction may be defined as positive feeling that comes from
consumption of a product or service.
Relationship between Service Quality and Customer Satisfaction
Researchers have studied the relationship between service quality and satisfaction. Customer
satisfaction is a key consequence of service quality and can determine the long-term success of a
service organization (Parasuraman, Zeithaml, and Berry 1994). Parasuraman et al. (1988)
specifically suggested that service quality is an antecedent of customer satisfaction However,
there is much debate whether customer satisfaction is an antecedent of service quality judgments
(Parasuraman et al., 1985) or the other way round (Anderson and Sullivan, 1993; Taylor and
Baker, 1994). Some studies have shown that improved service quality will result in more
customer satisfaction (Bitner et al., 1994; Cronin & Taylor, 1992). Customer Satisfaction is a
leading criterion for determining the quality actually delivered to customers (Vavra, 1997). Thus,
this research argues that service quality has a positive influence on customer satisfaction. Thus,
service quality has a positive impact on customer satisfaction.
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CONCEPTUAL FRAMEWORK

Figure 1: The Conceptual Model with Hypothesized Relationships
Here, IV : Independent Variable
DV : Dependent Variable
RESEARCH QUESTIONS AND HYPOTHESES
Research Questions
Question 1: Is there a positive significant relationship between reliability and customer
satisfaction in the context of UCBL?
Question 2: Is there a positive significant relationship between responsiveness and customer
Reliability (IV)
(DV)
H 1
Assurance (IV)
Responsiveness (IV)
Service Quality
H 2
H 3
Empathy (IV)
Tangibility (IV)
H 4
H 5
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Question 3: Is there a positive significant relationship between assurance and customer
Question 4: Is there a positive significant relationship between empathy and customer
Question 5: Is there a positive significant relationship between tangibility and customer
Hypotheses
Hypotheses 1: There is a positive significant relationship between reliability and customer
satisfaction in the context of UCBL.
Hypotheses 2: There is a positive significant relationship between responsiveness and customer
Hypotheses 3: There is a positive significant relationship between assurance and customer
Hypotheses 4: There is a positive significant relationship between empathy and customer
Hypotheses 5: There is a positive significant relationship between tangibility and customer
satisfaction of UCBL.
METHODOLOGY
Type of Design
This study is a Descriptive Research, this study describe the characteristics of banks influence of
service quality and customer satisfaction.
Sampling Sample Unit: 01 Sample Size: 30
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Sampling Procedure
A probability sample tends to be more difficult and costly to conduct. Non-probability samples
tend to be less complicated and less time consuming than probability samples. So, the studys
sampling was Non-probability Samples (Convenience Sampling). Though probability sampling
were suppose to be more appropriate for this type of quantitative data analyzing but it was not
possible.
Instruments:
In this study research instrument is the questionnaire and the format was closed-ended questions.
Respondent had the choice to rank their feelings towards a particular statement. The scales have
values such as Strongly Disagree, Disagree, Neither Agree nor Disagree, Agree, and Strongly
Agree. The questionnaire is made upon 5 point Likert Scale that consists of 20 questions. The
questions made are intended to measure the attitude towards the customer satisfaction. The scales
that have been used are given below:
Data Collection:
The study was based on Quantitative data collection methods, this study relied on non-probability
sampling (convenience sampling) and structured data collection instruments that fit diverse
experiences into predetermined response categories.
Data Types:
All three types of Dichotomous, Discrete and Continuous data were included.
Source:
1 2 3 4 5
Strongly Disagree Neither Agree Agree Strongly Agree
Disagree nor Disagree
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Data were collected from both primary and secondary sources so the sources of data are primary
data. Data were collected from the original source in a controlled environment. As it was done in
a controlled environment the research was an experimental research where certain variables are
being controlled by the researcher. On the other hand, data collected through questionnaire. The
secondary data were collected from many journals and articles.
Data Analysis:
The graphical representation of the proposed framework presented the output and constitution of
relationship among the set of measured variables. The figure is supported by questions and
hypotheses. This section has discussed the methods employed the purpose of the study is to
measure correlation among variables. Here the study explored the relationship between Service
Quality and Consumers Satisfaction. Research that studied the relationship between two or more
variable is known as correlational study. So here it was about the correlation research to find out
the appropriate answer to the research question and to test the hypotheses. The figure 1 also
support this type of design here reliability, responsiveness, assurance, empathy, tangibility are
being considered as independent variables and customer satisfaction is being considered as a
dependent variable. The research finds out relationship between the measured variable.
Quantitative Data Analyzing
Data were quantified and verified, and was statistically manipulated. There were 30 respondents
who attended the survey. Here there are more independent variables than dependent variable and
in this study the research is trying to discover the relationship among those variables. SPSS 17.0
will be use as the statistical tool for the research. Frequencies and cross tabulation analysis was
also done. In the SPSS 17.0 the research focuses on Reliability test (Alpha), Correlations
analysis. In below part of the research there is analysis and interpretation of the data of the
research which are conducted by Reliability test (Alpha), Pearsons Correlation analysis.
Regression analysis helped to understand how the typical value of the dependent variable changes
when any one of the independent variables is varied.
Results:
Frequencies
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Gender
(Table:02)
The sample size of research is 30 out of 30 peoples. 27 are male and 3 are
female. And in percentage 90.0 % represents male and 10.0% represents
female out of 100 percent.
Age
(Table: 03)
It was found that out of 30 respondents 11 peoples are of aged between 18-
25, 12 peoples are of age between 26-35, 1 peoples are of age between 36-
45 and 6 people are aged between 45 and above. And in percentage, 36.7%
represents people aged between18-25, 40% represents people aged between
26-35, 3.3% represents people aged between 36-45 and 20% represents
people aged between 46 and above.
Income
(Table: 04)
It was found that out of 30 respondents 8 peoples income are in between
5000- 15000tk, 6 peoples income are in between 16000-25000tk, 12
peoples income are in between 26000-35000tk and 4 peoples income are in
between 36000 and above.
And in percentage, 26.7.0% represents people whose income are in
between5000-15000tk, 20.0% represents people whose income are in
between16000-25000tk, 40.0% represents people whose income are in
between 26000-35000tk and 13.3% represents peoples whose income are
in between 36000 and above.
Cross Tabulation Analysis
According to the Table - 5, it was found that, out of 30 respondents, 8 peoples income are in
between TK. 5000-15000. Among them 5 males and a female is aged between 18-25, and 2 males
are aged between 26-35. 6 peoples income are in between TK. 16000-25000. Among them 2
males are aged between 18-25, 4 are between 26-35, among them 3 are male and a female. 12 is
number of persons whose income is in between TK. 26000-35000. Among them 2 are males
aged in between 18-25, 5 males are between age 26-35, a female is in the age range of 36-45, and
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1 male is aged 45+ . Among 30 respondents 4 peoples income is in between 36000tk and above.
Among them 2 males are aged in between 16-25, and 2 males are aged in between 26-35.
Reliability Analysis
If the value of (Cronbachs alpha) is between 0.5 - 0.6 the reliability is accepted. If it is below
0.5, it is rejected. And if the value of is 0.7 and above then the reliability is acceptable and very
satisfied. (Cortina, J.M. 1993)
Reliability of Reliability
From Table - 06, as the value of is .729, the reliability is accepted. If the value is below 0.5 the
reliability will be rejected. In fact the reliability is very satisfied in terms of measuring the
reliability according to the requirement.
Reliability of Responsiveness
From Table - 07, as the value of is .814, the reliability is accepted. If the value is below 0.5 the
reliability will be rejected. In fact the reliability is very satisfied in terms of measuring the
Reliability of Assurance
From Table - 08, the value of is .852. If the value is below 0.5 the reliability will be rejected.
The reliability is accepted. In fact the reliability is very satisfied in terms of measuring the
Reliability of Empathy
Reliability of Tangibility
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Reliability of Customer Satisfaction
The reliability is accepted. Here the reliability is very satisfied in terms of measuring the
Hypothesis Testing
Pearsons Correlation Analysis
In statistics, the Pearson product-moment correlation coefficient is a measure of
the correlation (linear dependence) between two variables X and Y, giving a value between +1
and 1 inclusive. It is widely used in the sciences as a measure of the strength of linear
dependence between two variables. The correlation coefficient ranges from 1 to 1. A value of 1
implies that a linear equation describes the relationship between X and Y perfectly, with all data
points lying on a line for which Y increases as X increases. A value of 1 implies that all data
points lie on a line for which Y decreases as X increases. A value of 0 implies that there is no
linear correlation between the variables. The correlation coefficient value (r) range from 0.10 to
0.29 is considered weak, from 0.30 to 0.49 is considered moderate and from 0.50 to 1.0 is
considered strong. (Stigler, Stephen M. 1989)
Hypothesis # 1
H1: There is a positive significant relation between reliability and customer satisfaction in the
context of UCBL.
H0: There is no significant relation between reliability and customer satisfaction of in the context
of UCBL.
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From the Table 12 it can be seen that the correlation (r) of reliability and customer satisfaction
of the bank is 0.424 and the significant level is 0.05(2-tailed). Therefore the null hypothesis was
rejected and concluded that there is a moderate positive relationship (r =.424) between reliability
and customer satisfaction of the bank.
Hypothesis # 2
H2: There is a positive significant relation between responsiveness and customer satisfaction in
the context of UCBL.
H0: There is no significant relation between responsiveness and customer satisfaction in the
context of UCBL.
From the Table 13 it can be seen that the correlation (r) of responsiveness and customer
satisfaction of the bank is 0.593 and the significant level is 0.05(2-tailed). Therefore the null
hypothesis was rejected, and concluded that there is a strong positive relationship (r =.593)
between responsiveness and customer satisfaction of the bank.
Hypothesis # 3
H3: There is a positive significant relation between assurance and customer satisfaction in the
context of UCBL.
H0: There is no significant relation between assurance and customer satisfaction in the context of
UCBL.
From the Table 14 it can be seen that the correlation (r) of assurance and customer satisfaction
rejected and concluded that there is a moderate positive relationship (r =.429) between assurance
and customer satisfaction of the bank.
Hypothesis # 4
H2: There is a positive significant relation between empathy and customer satisfaction in the
context of UCBL.
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H0: There is no significant relation between empathy and customer satisfaction in the context of
UCBL.
From the Table 15 it can be seen that the correlation (r) of empathy and customer satisfaction
rejected, and concluded that there is a strong positive relationship (r =.563) between empathy and
customer satisfaction of the bank.
Hypothesis # 5
H3: There is a positive significant relation between tangibility and customer satisfaction in the
context of UCBL.
H0: There is no significant relation between tangibility and customer satisfaction in the context
of UCBL.
From the Table 16 it can be seen that the correlation (r) of tangibility of the bank is 0.329 and
the significant level is 0.05(2-tailed). Therefore the null hypothesis was rejected and concluded
that there is a weak positive relationship (r =.329) between tangibility and customer satisfaction
of the bank.
LINEAR REGRESSION ANALYSIS
Model Summary (Enter Method)
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
1 .393
a
.155 .125 .54420
a. Predictors: (Constant), reliability, responsiveness,
assurance, empathy, tangibility
Regression analysis is normally used to find that how much independent variable can explain of
dependent variable. In this research the independent variables are reliability, responsiveness,
assurance, empathy, tangibility and the dependent variable is customer satisfaction. In this
regression analysis we got R square=0.155 which means independent variables (reliability,
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responsiveness, assurance, empathy, tangibility) can explain 15.5 % of dependent variable
(customer satisfaction).
SIGNIFICANCE OF THE STUDY
Findings revealed that improved aspects of service quality (reliability, responsiveness, assurance,
empathy, tangibility) increase customer satisfaction. It was found that human aspects of service
quality (reliability, responsiveness, assurance, empathy) influence customer satisfaction as well as
with technical and tangible aspects. This study confirmed that customers personal interaction
with the bank and their service quality develops trust and social bonds between the customers and
bank. Corroborating earlier findings, our results showed that technical aspects of service quality
increased customers satisfaction (Bitner et al., 2000). Technology helps banks to work as a
marketing agency in selling products, credit cards, life insurance, and so on. Core Banking
Solutions has enabled customers to operate their account from any branch of a bank. Educated
and technology conscious customers generally prefer self-service technologies as they are
accessible, confidential, convenient and expeditious. Better tangible aspects of service quality of
the bank branches enhance customers satisfaction. Customers in banks prefer those services
which have comfortable and convenient physical evidence, planned layout and well-managed
queues. Apart from the physical dcor of the workplace, tangible aspects also include display of
current guidelines regarding rate of interest in each investment plan, required charges for bank
transactions, charges to open an account and other facilities provided by the banks. These
advertisements in bank premises draw customers attention when they enter the bank. Service
quality was measured by the cognitive evaluation of services delivered by the bank employees,
technology deployed by the banks and their physical evidence. Customers evaluated whether the
services de-livered by bank branches were convenient to them. A positive perception of service
quality indicated the level of customers satisfaction. The customers of this bank tended to accept
dualism. They accepted modernity and also remained close to traditionalism. Higher levels of
occupation, education and income tend to reinforce the use of modern technologies and to
embrace culturally-valued human relationships. Product attributes, price, speed and accuracy
though essentials, cannot in and of themselves, generate competitive advantage for the bank.
Products and technology in the banking sector are quickly imitated. Competitive advantage lies in
the inimitable and tacit behavioral aspects. No matter how sophisticated the technology deployed,
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the dcor and the amenities available in the bank branches, performance of the banks on the
whole is judged on the basis of employee performance. The human aspects are very important
drivers of service performance in Indian banks (Dash et al., 2007). Customers develop personal
relationships with service personnel through this process. Communication and information flow
between the parties make for better relationships. It includes feelings of understanding, empathy
and friendship. Customers with strong social bonds with service personnel are more committed
(Wilson & Mummalaneni, 1988). Social relationships with customers help develop successful
service encounters, assess needs of customers, and avoid uncooperative and complaining
behaviors of customers. There are certain limitations of the study that must be acknowledged.
Only valued customers were studied. Therefore, caution must be exercised in generalizing the
findings. Notwithstanding the limitations, this study pro-vides clear evidence in the Indian
context that human factors in service design and delivery are required to be given more
importance because these are the main drivers of customer satisfaction. But, technical and
tangible aspects cannot be neglected because they also bring satisfaction. Further studies are
needed to examine the successive direct link between service quality, customer satisfaction,
customer loyalty and market performance of the bank branches in terms of total deposits and net
profit.
Limitations:
Although this research has reached its aim, there were some unavoidable limitations. The
research was conducted in a very short period. This period is not enough for the researcher to
observe and collect all of the population. It would be better if it was done in a longer time. The
population of the experimental group is small, only fifty people and might not represent the
majority of the people of the total population. Though this research is a quantitative research, a
probability sampling would be better for sampling but for the sampling procedure nonprobability
sampling (Convenience Sampling) were done as the probability sampling is more time
consuming and costly. Moreover, Three months are not enough to know all the activities of a
private bank and how they deal with their clients. Lack of experience also acted as a constraint
for the exploration of the topic.
The limitations are
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Lackings of time is one of the most important barrier to make better report, the report
might be more accurate if I get sufficient time to research on it.
Every organization has its own secrets which are not revealed to the temporary working
people with the organization. They only reveal that information which will give the
general sense about their working experience.
The executives of the bank were too busy in their work that they hardly find time to show
the exact procedures of working to the intern.
Due to lack of experience there is a chance of having some mistake in the report. But I
have tried my best to do fewer mistakes and provide the accurate information about the
bank and its services towards the customers.
The study also suffered from inadequacy of data provided by the bank.
RECOMMENDATION
It is obvious that the service quality is not the only attributes that influence customer
satisfaction. Findings revealed that improved people, process and physical evidence
aspect of service quality help in increasing customer satisfaction. These results confirmed
the past research results. Improved human, technical and tangible aspects of service quality
increase customer satisfaction (Lenka et al., 2009). Efficient interpersonal interactions
between customers and employees can improve customer satisfaction (Parasuraman et al.,
1985; and Hartline et al., 2000). Physical evidence aspect of service quality includes
parking, furniture, brochure, ATM card, etc. Due to intangibility of services, customers
evaluate services on the basis of physical evidence. Good quality physical evidence helps in
increasing customer satisfaction.
i. The management should appoint more appropriate employees for the branch.
ii. The officers of the branch should build a strong relationship with their customers.
iii. The management should keep their eyes on the development of the branch for providing
maximum satisfaction.
iv. They should clearly disclose all the fact related to the customers in front of the customers.
v. They should give importance to the customers need.
vi. They should solve the ATM booth problems immediately.
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vii. They should check the cheques before receiving from the customers.
viii. They should collect the accurate address from the customer so that they can give them
different types of letter authorized by the bank itself.
ix. They should clearly mention about all the charges and fees which will be taken from the
account holder at the end of the year, or for collecting any kind of bank solvency.
Not only that after the research it is proved that service quality plays a vital role to gain the
optimum level of customer satisfaction. so to be in the market and becoming the market leader
the management of the bank should focus on their service quality and should also keep update by
finding out the problems of the customers as well as to solve the problems immediately.
Conclusion:
In view of the findings, the condition of high standards of service quality and maintaining a
significant level of customer satisfaction will lead to improved financial performance and
customer retention. At the same time as this research found that improvement in the quality
aspects of this dimension could enhance overall satisfaction and in turn may boost the financial
performance of United Commercial Bank Limited. Finally, this research will encourage further
study and useful guidelines for these types of researches.
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APPENDIX:
Table - 01: Statistics
Gender Age Income
N Valid 30 30 30
Missing 0 0 0
Table - 02: Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 27 90.0 90.0 90.0
Female 3 10.0 10.0 100.0
Total 30 100.0 100.0
Table - 03: Age
Cumulative
Percent
Valid 18-25 11 36.7 36.7 36.7
26-35 12 40.0 40.0 76.7
36-45 1 3.3 3.3 80.0
45+ 6 20.0 20.0 100.0
Total 30 100.0 100.0
Table - 04: Income
Cumulative
Percent
Valid 5000-15000 8 26.7 26.7 26.7
16000-25000 6 20.0 20.0 46.7
2013
45
26000-35000 12 40.0 40.0 86.7
36000 and above 4 13.3 13.3 100.0
Total 30 100.0 100.0
Table - 05: Income * Gender * Age Crosstabulation
Count
Age
Gender
Total Male Female
18-25 Income 5000-15000 5 1 6
16000-25000 2 0 2
26000-35000 2 0 2
36000 and above 1 0 1
Total 10 1 11
26-35 Income 5000-15000 2 0 2
16000-25000 3 1 4
26000-35000 5 0 5
36000 and above 1 0 1
Total 11 1 12
36-45 Income 26000-35000 1 1
Total 1 1
45+ Income 26000-35000 4 4
36000 and above 2 2
Total 6 6
Table - 06:
Reliability Statistics
Cronbach's Alpha N of Items
.725 4
2013
46
Table - 07:
Cronbach's Alpha N of Items
.814 5
Table - 08:
Cronbach's
Alpha N of Items
.852 3
Table - 09:
Cronbach's
Alpha N of Items
.894 3
Table - 10: Reliability
Statistics
Cronbach's
Alpha N of Items
.872 3
Table - 11: Reliability
Statistics
Cronbach's
Alpha N of Items
.699 2
2013
47
Table - 12: Correlations
Humanaspectso
fservicequality
CustomerSatisf
action
Humanaspectsofservicequ
ality
Pearson Correlation 1 .424
Sig. (2-tailed) .233
N 30 30
CustomerSatisfaction Pearson Correlation .424 1
N 30 30
*. Correlation is significant at the 0.05 level (2-tailed).
Technicalaspec
tsofservicequali
ty
CustomerSatisf
action
Technicalaspectsofservice
quality
*
N 30 30
CustomerSatisfaction Pearson Correlation .593
*
1
N 30 30
Tangibleaspect
sofservicequalit
y
CustomerSatisf
action
Tangibleaspectsofserviceq
uality
2013
48
N 30 30
N 30 30
Technicalaspec
tsofservicequali
ty
CustomerSatisf
action
Technicalaspectsofservice
quality
*
N 30 30
CustomerSatisfaction Pearson Correlation .563
*
1
N 30 30
Tangibleaspect
sofservicequalit
y
CustomerSatisf
action
Tangibleaspectsofserviceq
uality
N 30 30
N 30 30
Questionnaire
(This survey will only be used for academicand educational purposes.)
1. Male/Female:
2. Age: 18-25 3. Income per month: Taka 5000-15000
26-35 Taka 16000-25000
36-45 Taka 26000-35000
46 and above Taka 36000 and above
Please circle the number, which most closely responds to your thinking.
Tangibility
1 This bank has modern-looking equipment
2 It has appealing physical facilities
3 It has neat appearance of staff
4 Materials associated with service are visually appealing
Reliability
5 Its staff s keeppromise
6 Staffs have sincere interest in solving customers problems
7 Staff performingservice right
8 Staffs provide services at the time they promised to do so
1 2 3 4 5
Strongly Disagree Neither Agr. Or Dis. Agree Strongly
9 Staffs insists on error-free records
Responsiveness
10 Staffs tell customers exactly when services will be performed
11 Provide prompt service
12 Staffs havewillingness to help
Assurance
13 I get prompt response from staff
14 Behaviors of staffsinstill confidence in customers
15 I feel safe in their transactions
Empathy
16 Friendliness and courtesy of staff
17 Staffs haveknowledge to answer questions
18 Individual attentionaregiven by staffs
19. I would recommend this bank to friends/family/others.
20. Overall, I am satisfied with the bank.

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