Sie sind auf Seite 1von 83


Submitted in partial fulfillment for the award of the Degree of Bachelor of Business Administration 2008-2011 UNDER THE GUIDANCE OF
SUBMITTED TO: Manisha Faculty, MAIMS SUBMITTED BY: Prachi Johar Enrollment no. 1046111708

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES Affiliated to Guru Gobind Singh Indrapastha University, Delhi PSP Area, Plot no. 1, Sector 22, Rohini, Delhi 110086

TABLE OF CONTENTS Student Declarationi Certificate from Company.ii Certificate from Guide...iii Acknowledgement...iv Executive Summary....v Page no. CHAPTER 1
Introduction Company Profile Introduction about the Topic

1-20 21-35 36-42

CHAPTER -2 Research Methodology 2.1 Purpose of the study 2.2 Research Objective of the study 2.3 Research Methodology of the study 2.3.1 Research Design Sample Size Sampling Technique Analytical Tools 2.3.2 Method of data collection of Data 2.3.3 Limitation

43 43 44 44-45 45 46 46 46 46 47


Data Analysis CHAPTER 4 Findings CHAPTER 5 Suggestions CHAPTER 6 Conclusion Bibliography Annexures

48-57 58 59 60 61

This is to certify that I have completed the Summer Training Project titled Customer Satisfaction Towards Oriental Bank of Commerce under the guidance of Manisha (Project Guide) in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.



This is to certify that the summer training project titled Customer Satisfaction Towards Oriental Bank of Commerce an academic work done by Prachi Johar BBA (G) Enrollment no. 1256111708 Submitted in the partial fulfillment if the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance &direction. To the best of my knowledge and belief the data & information presented by him in the project has not been submitted earlier.

Manisha Faculty, MAIMS

Before I get into the depth of the thing, I would like to add a few heartfelt words for the people who at various stages of the project development helped me by their valuable guidance. First and foremost I would like to pay my sincere gratitude which I owe to Mrs. SHWETA RASTOGI (course coordinator), and MS. MANISHA (project guide), for their valued help and guidance which they gave me when I needed it the most. It was only due to their sincere help and efforts that I was able to end up with this project. I owe special thanks to Dr.N.K.KAKKAR, Director of MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES, and Mr. V.N.KOCHHAR (Branch Manager, Chikamberpur) for his valuable co-operation and guidance in completing the project work. Last but not the least; I would like to pay our gratitude to my parents, without their help and blessing I cant take a single step in right direction.


The report contains the brief description of the Indian Banking Industry in India followed by history about ORIENTAL BANK of COMMERCE, customer satisfaction respectively. It contains the findings and analysis of the survey conducted to gather the primary data to judge the satisfaction level of customers in different manner. Further an attempt has been made to know the overall satisfaction of customers. The size of the sample is limited to 100 only. More than 50% of the respondents are using savings account and fixed deposit account services of the banks. The highest no. of respondents belongs to SBI followed by the group of PNB, ICICI and Other banks respectively. More than 40% of the respondents are the customers of the bank from more than 10 years. Nearness to bank is the most important factor affecting the choice of more than 30% followed by reputation of the bank which holds more than 25% of the share. The data relating to customer satisfaction is analyzed using questionnaire. Not so long ago, accessing our own money was about setting aside a couple of hours, getting to the bank before closing time, standing in one queue to get a token and then in another to collect the cash. Those were the pre-economic reforms days, when the banking sector primarily consisted of public sector banks. 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 . Banking is a customer oriented services industry, therefore, the customer is the focus and customer service is the differentiating factors. 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 privatize banks by reduction in state ownership culminated in the banking reforms based on the recommendations of Narasimha Committee. 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 and this is compelling them to improve customer service and build up relationship with customers



Indian Banking System

The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely:

History of Banking in India Nationalization of Banks in India

Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in nationalization of Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks.

Banks in India
In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information are talked about.

One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India.

Banking services in India

With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within

the banks operating



With stiff competition and advancement of technology, the service provided by banks has become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south.

This section of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems.

Financial and banking sector reforms The last decade witnessed the maturity of India's financial markets. Since 1991, every governments of India took major steps in reforming the financial sector of the country. The important achievement in the following fields is discussed under separate heads:

Financial markets Regulators The banking system Non-banking finance companies The capital market Mutual funds Overall approach to reforms Deregulation of banking system Capital market developments Consolidation imperative let us discuss each segment separately.




In the last decade, Private Sector Institutions played an important role. They grew rapidly

in commercial banking and asset management business. With the openings in the insurance sector for these institutions, they started making debt in the market. Competition among financial intermediaries gradually helped the interest rates to decline. Deregulation added to it. The real interest rate was maintained. The borrowers did not pay high price while depositors had incentives to save. It was something between the nominal rate of interest and the expected rate of inflation.

The Finance Ministry continuously formulated major policies in the field of financial sector of the country. The Government accepted the important role of regulators. The Reserve Bank of India (RBI) has become more independent. Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) became important institutions. Opinions are also there that there should be a superregulator for the financial services sector instead of multiplicity of regulators.




Almost 80% of the business are still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges.

The RBI has given license to new private sector banks as part of the liberalization process. The RBI has also been granting license to industrial houses. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance.

The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constraint of limited number of branches. Hence, in order to achieve an efficient banking system, the onus is on the Government to encourage the PSBs to be run on professional lines.




FI's access to SLR funds reduced. Now they have to approach the capital market for debt

Convertibility clause no longer obligatory for assistance to corporates sanctioned by termlending Capital adequacy norms extended to financial institutions. institutions.

DFIs such as IDBI and ICICI have entered other segments of financial services such as commercial banking, asset management and insurance through separate ventures. The move to universal banking has started.

net owned funds, has

been raised to

Rs.2 crore.

In the case of new NBFCs seeking registration with the RBI, the requirement of minimum

Until recently, the money market in India was narrow and circumscribed by tight regulations over interest rates and participants. The secondary market was underdeveloped and lacked liquidity. Several measures have been initiated and include new money market instruments, strengthening of existing instruments and setting up of the Discount and Finance House of India (DFHI).

The RBI conducts its sales of dated securities and treasury bills through its open market operations (OMO) window. Primary dealers bid for these securities and also trade in them. The DFHI is the principal agency for developing a secondary market for money market instruments and Government of India treasury bills. The RBI has introduced a liquidity adjustment facility (LAF) in which liquidity is injected through reverse repo auctions and liquidity is sucked out through repo auctions.

On account of the substantial issue of government debt, the gilt- edged market occupies an important position in the financial set- up. The Securities Trading Corporation of India (STCI), which started operations in June 1994, has a mandate to develop the secondary market in government securities.

Long-term debt market: The development of a long-term debt market is crucial to the financing of infrastructure. After bringing some order to the equity market, the SEBI has now decided to concentrate on the development of the debt market. Stamp duty is being withdrawn at the time of dematerialization of debt instruments in order to encourage paperless trading.




The number of shareholders in India is estimated at 25 million. However, only an estimated two lakh persons actively trade in stocks. There has been a dramatic improvement in the country's stock market trading infrastructure during the last few years. Expectations are that India will be an attractive emerging market with tremendous potential. Unfortunately, during recent times the stock markets have been constrained by some unsavory developments, which has led to retail investors deserting the stock markets.



The mutual funds industry is now regulated under the SEBI (Mutual Funds) Regulations, 1996 and amendments thereto. With the issuance of SEBI guidelines, the industry had a framework for the establishment of many more players, both Indian and foreign players. The Unit Trust of India remains easily the biggest mutual fund controlling a corpus of nearly Rs.70000 crore, but its share is going down. The biggest shock to the mutual fund industry during recent times was the insecurity generated in the minds of investors regarding the US 64 schemes. With the growth in the securities markets and tax

advantages granted for investment in mutual fund units, mutual funds started becoming popular. The foreign owned AMCs are the ones which are now setting the pace for the industry. They are introducing new products, setting new standards of customer service, improving disclosure standards and experimenting with new types of distribution.

The insurance industry is the latest to be thrown open to competition from the private sector including foreign players. Foreign companies can only enter joint ventures with Indian companies, with participation restricted to 26 per cent of equity. It is too early to conclude whether the erstwhile public sector monopolies will successfully be able to face up to the competition posed by the new players, but it can be expected that the customer will gain from improved service.

The new players will need to bring in innovative products as well as fresh ideas on marketing and distribution, in order to improve the low per capita insurance coverage. Good regulation will, of course, be essential.





The last ten years has seen major improvements in the working of various financial market participants. The government and the regulatory authorities have followed a stepby-step approach, not a big bang one. The entry of foreign players has assisted in the introduction of international practices and systems. Technology developments have improved customer service. Some gaps however remain (for example: lack of an interbank interest rate benchmark, an active corporate debt market and a developed derivatives market). On the whole, the cumulative effect of the developments since 1991 has been quite encouraging. An indication of the strength of the reformed Indian financial system can be seen from the way India was not affected by the Southeast Asian crisis. However, financial liberalizations alone will not ensure stable economic growth. Some

tough decisions still need to be taken. Without fiscal control, financial stability cannot be ensured. The fate of the Fiscal Responsibility Bill remains unknown and high fiscal deficits continue. In the case of financial institutions, the political and legal structures have to ensure that borrowers repay on time the loans they have taken. The phenomenon of rich industrialists and bankrupt companies continues. Further, frauds cannot be totally prevented, even with the best of regulation. However, punishment has to follow crime, which is often not the case in India.





Prudential norms were introduced for income recognition, asset classification, provisioning for delinquent loans and for capital adequacy. In order to reach the stipulated capital adequacy norms, substantial capital were provided by the Government to PSBs.

Government pre-emption of banks' resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending sides almost entirely were deregulated.

New private sector banks allowed to promote and encourage competition. PSBs were encouraged to approach the public for raising resources. Recovery of debts due to banks and the Financial Institutions Act, 1993 was passed, and special recovery tribunals set up to facilitate quicker recovery of loan arrears.

Bank lending norms liberalized and a loan system to ensure better control over credit introduced. Banks asked to set up asset liability management (ALM) systems. RBI guidelines issued for risk management systems in banks encompassing credit, market and operational risks.

A credit information bureau being established to identify bad risks. Derivative products such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced.




The Capital Issues (Control) Act, 1947, repealed, offices of the Controller of Capital Issues were abolished and the initial share pricing were decontrolled. SEBI, the capital market regulator was established in 1992.

Foreign institutional investors (FIIs) were allowed to invest in Indian capital markets after registration with the SEBI. Indian companies were permitted to access international capital markets through euro issues.

The National Stock Exchange (NSE), with nationwide stock trading and electronic display, clearing and settlement facilities was established. Several local stock exchanges changed over from floor based trading to screen based trading.





The Depositories Act had given a legal framework for the establishment of depositories to record ownership deals in book entry form. Dematerialization of stocks encouraged paperless trading. Companies were required to disclose all material facts and specific risk factors associated with their projects while making public issues.

To reduce the cost of issue, underwriting by the issuer were made optional, subject to conditions. The practice of making preferential allotment of shares at prices unrelated to the prevailing market prices stopped and fresh guidelines were issued by SEBI. SEBI reconstituted governing boards of the stock exchanges, introduced capital adequacy norms for brokers, and made rules for making client or broker relationship more transparent which included separation of client and broker accounts.


governance based

on the

report of a


The SEBI started insisting on greater corporate disclosures. Steps were taken to improve

SEBI issued detailed employee stock option scheme and employee stock purchase scheme for listed companies.

Standard denomination for equity shares of Rs. 10 and Rs. 100 were abolished. Companies given the freedom to issue dematerialized shares in any denomination. Derivatives trading starts with index options and futures. A system of rolling settlements introduced. SEBI empowered to register and regulate venture capital funds. The SEBI (Credit Rating Agencies) Regulations, 1999 issued for regulating new credit rating agencies as well as introducing a code of conduct for all credit rating agencies operating in India.



Another aspect of the financial sector reforms in India is the consolidation of existing institutions which is especially applicable to the commercial banks. In India the banks are in huge quantity. First, there is no need for 27 PSBs with branches all over India. A number of them can be merged. The merger of Punjab National Bank and New Bank of India was a difficult one, but the situation is different now. No one expected so many employees to take voluntary retirement from PSBs, which at one time were much sought after jobs. Private sector banks will be self-consolidated while co-operative and rural banks will be encouraged for consolidation, and anyway play only a niche role. In the case of insurance, the Life Insurance Corporation of India is a behemoth, while the four public sector general insurance companies will probably move towards consolidation with a bit of nudging. The UTI is yet again a big institution, even though facing difficult times, and most other public sector players are already exiting the mutual fund business. There are a number of small mutual fund players in the private sector, but the business being comparatively new for the private players, it will take some time. We finally come to convergence in the financial sector, the new buzzword internationally.

Hi-tech and the need to meet increasing consumer needs is encouraging convergence, even though it has not always been a success till date. In India organizations such as IDBI, ICICI, HDFC and SBI are already trying to offer various services to the customer under one umbrella. This phenomenon is expected to grow rapidly in the coming years. Where mergers may not be possible, alliances between organizations may be effective. Various forms of bancassurance are being introduced, with the RBI having already come out with detailed guidelines for entry of banks into insurance. The LIC has bought into Corporation Bank in order to spread its insurance distribution network. Both banks and insurance companies have started entering the asset management business, as there is a great deal of synergy among these businesses. The pensions market is expected to open up fresh opportunities for insurance companies and mutual funds.

It is not possible to play the role of the Oracle of Delphi when a vast nation like India is involved. However, a few trends are evident, and the coming decade should be as interesting as the last one

Reserve bank of India

The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crore on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs. 220000.

Reserve Bank of India was nationalized in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the







The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following:

To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage.

bank Bank the


Reserve of



India. Issue

The Reserve Bank of India Act of 1934 entrust all the important functions of a central

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and liabilities of the Issue Department are kept separate from those of the Banking Department. Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs. 40 crore in value. The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India. Due to the exigencies of the Second World War and the post-was period, these provisions were considerably modified. Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Ra. 200 crore, of which at least Rs. 115 crore should be in gold. The system as it exists today is known as the minimum reserve system.




The second important function of the Reserve Bank of India is to act as Government banker, agent and adviser. The Reserve Bank is agent of Central Government and of all State Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the obligation to transact Government business, via. to keep the cash balances as deposits free of interest, to receive and to make payments on behalf of the Government and to carry out their exchange remittances and other banking operations. The Reserve Bank of India helps the Government - both the Union and the States to float new loans and to manage public debt. The Bank makes ways and means advances to the Governments for 90 days. It makes loans and advances to the States and local authorities. It acts as adviser to the Government on all monetary and banking matters.









The Reserve Bank of India acts as the bankers' bank. According to the provisions of the Banking Companies Act of 1949, every scheduled bank was required to maintain with the Reserve Bank a cash balance equivalent to 5% of its demand liabilities and 2 per cent of its time liabilities in India. By an amendment of 1962, the distinction between demand and time liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by the Reserve Bank of India.

The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible securities or get financial accommodation in times of need or stringency by rediscounting bills of exchange. Since commercial banks can always expect the Reserve Bank of India to come to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank but also the lender of the last resort.




The Reserve Bank of India is the controller of credit i.e. it has the power to influence the volume of credit created by banks in India. It can do so through changing the Bank rate or through open market operations. According to the Banking Regulation Act of 1949, the

Reserve Bank of India can ask any particular bank or the whole banking system not to lend to particular groups or persons on the basis of certain types of securities. Since 1956, selective controls of credit are increasingly being used by the Reserve Bank. The Reserve Bank of India is armed with many more powers to control the Indian money market. Every bank has to get a license from the Reserve Bank of India to do banking business within India, the license can be cancelled by the Reserve Bank of certain stipulated conditions are not fulfilled. Every bank will have to get the permission of the Reserve Bank before it can open a new branch. Each scheduled bank must send a weekly return to the Reserve Bank showing, in detail, its assets and liabilities. This power of the Bank to call for information is also intended to give it effective control of the credit system. The Reserve Bank has also the power to inspect the accounts of any commercial bank. As supreme banking authority in the country, the Reserve Bank of India, therefore, has the (a) It holds the cash following reserves of all the scheduled powers: banks.

(b) It controls the credit operations of banks through quantitative and qualitative controls. (c) It controls the banking system through the system of licensing, inspection and calling for information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.





The Reserve Bank of India has the responsibility to maintain the official rate of exchange. According to the Reserve Bank of India Act of 1934, the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10,000. The rate of exchange fixed was Re. 1 = sh. 6d. Since 1935 the Bank was able to maintain the

exchange rate fixed at lsh.6d. Though there were periods of extreme pressure in favour of or against the rupee. After India became a member of the International Monetary Fund in 1946, the Reserve Bank has the responsibility of maintaining fixed exchange rates with all other member countries of the I.M.F.

Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the custodian of India's reserve of international currencies. The vast sterling balances were acquired and managed by the Bank. Further, the RBI has the responsibility of administering the exchange controls of the country.



In addition to its traditional central banking functions, the Reserve bank has certain nonmonetary functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of their assets, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to carry out periodical inspections of the banks and to call for returns and necessary information from them. The nationalization of 14 major Indian scheduled banks in July 1969 has imposed new responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid development of the economy and realization of certain desired social objectives. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation.



With economic growth assuming a new urgency since Independence, the range of the Reserve Bank's functions has steadily widened. The Bank now performs a variety of developmental and promotional functions, which, at one time, were regarded as outside the normal scope of central banking. The Reserve Bank was asked to promote banking

habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized financing agencies. Accordingly, the Reserve Bank has helped in the setting up of the IFCI and the SFC; it set up the Deposit Insurance Corporation in 1962, the Unit Trust of India in 1964, the Industrial Development Bank of India also in 1964, the Agricultural Refinance Corporation of India in 1963 and the Industrial Reconstruction Corporation of India in 1972. These institutions were set up directly or indirectly by the Reserve Bank to promote saving habit and to mobilize savings, and to provide industrial finance as well as agricultural finance. As far back as 1935, the Reserve Bank of India set up the Agricultural Credit Department to provide agricultural credit. But only since 1951 the Bank's role in this field has become extremely important. The Bank has developed the co-operative credit movement to encourage saving, to eliminate moneylenders from the villages and to route its short term credit to agriculture. The RBI has set up the Agricultural Refinance and Development Corporation to provide long-term finance to farmers.





The monetary functions also known as the central banking functions of the RBI are related to control and regulation of money and credit, i.e., issue of currency, control of bank credit, control of foreign exchange operations, banker to the Government and to the money market. Monetary functions of the RBI are significant as they control and regulate the volume of money and credit in the country.

Equally important, however, are the non-monetary functions of the RBI in the context of India's economic backwardness. The supervisory function of the RBI may be regarded as a non-monetary function (though many consider this a monetary function). The promotion of sound banking in India is an important goal of the RBI, the RBI has been given wide and drastic powers, under the Banking Regulation Act of 1949 - these powers relate to licensing of banks, branch expansion, liquidity of their assets, management and methods of working, inspection, amalgamation, reconstruction and liquidation. Under the RBI's supervision and inspection, the working of banks has greatly improved. Commercial banks have developed into financially and operationally sound and viable

units. The RBI's powers of supervision have now been extended to non-banking financial intermediaries. Since independence, particularly after its nationalization 1949, the RBI has followed the promotional functions vigorously and has been responsible for strong financial support to industrial and agricultural development in the country.

Easy Banking
This section is fully dedicated to the Tech Banking. A decade before, it was tough to belief that banking sector will be at a fingertip. Now its possible. A mobile hand set with a connection is the only instrument needed to make a gateway to your banking transaction, the latest innovation of 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. With all these devices and systems, there is a complete freedom to experience.

Check your account, transfer your fund, make payments and what more, do anything of everything what has been followed in physical banking since ages. But these time no standing for hours in front of cash counter and no time boundation in withdrawing your own money.

Banking Services for NRIs in India

Almost all the Indian Banks provide services to the NRIs. There are different types of accounts for them. They are:

Non-Resident (Ordinary) Account - NRO A/c Non-Resident (External) Rupee Account - NRE A/c Non-Resident (Foreign Currency) Account - FCNR A/c

An Indian resident who is earning foreign exchange can also maintain Foreign Currency account in the country with an authorized dealer bank but only to the maximum limit of 50% of such foreign exchange earnings under the Exchange Earners Foreign Currency




Indian Banks Association (IBA)

The Indian Banks Association (IBA) was formed on the 26th September, 1946 with 22 members. Today IBA has more than 156 members comprising of Public Sector banks, Private Sector banks, foreign banks having offices in India, Urban Co-operative banks, Developmental financial institutions, Federations, merchant banks, mutual funds, housing finance corporations, etc.

The functioning of IBA

To promote sound and progressive banking principles and practices. To render assistance and to provide common services to members. To organize co-ordination and co-operation on procedural, legal, technical, administrative and professional matters.

To collect, classify and circulate statistical and other information. To pool together expertise towards common purposes such as reduction in costs, increase in efficiency, productivity and improve systems, procedures and banking practices.

To project good public image of banking through publicity and public relations. To encourage sports and cultural activities among bank employees.

The Stadium Block II

Offices & III,

of 6th

IBA House, Floor,

Veer Tel.:91-22World Centre 6th Mumbai-400 Tel.:91-22Email: The


Road, 22894500, Trade

Mumbai Fax: Centre 1, Cuffe 011 85146, Fax: 2



91-22-22835638 Complex, & 4, Parade, 005. 91-22-22184222.


Units Floor,


Telex: Organizational Structure of IBA

The Managing Committee manages the affairs, business and funds of IBA. The managing Committee is elected by the Ordinary members of the Association, and is the highest management and policy making body of the Association.

The Chairman of the Association heads upon the working of the Association. He provides guidelines to the Association. The administrative head of IBA is the Chief Executive of IBA. He is also the Secretary to the Managing Committee. He leads a team of executives, officers and other staff members.

The contact details of IBA At World Trade Centre Complex Direct Nos. Legal Banking Policy Payment Systems Banking Operations 91-22-22187946 91-22-22174006 91-22-22182217 91-22-22174014 91-22-22182196 91-22-22174013 91-22-22182247 91-22-22174015

Publicity Technology Library At Stadium House :

91-22-22180821 91-22-22174012 91-22-22182196 91-22-22174011 91-22-22182288 91-22-22174009

91-22-22028525 Personnel (HR & IR) 91-22-22894502 91-22-22831636 91-22-22894501 Administration & Accounts : 91-22-22824846 91-22-22894518

Proxy Banking in India

Indian villages were miles away from mutual funds, insurance and even equity trading. Thanks to Internet Kiosk and the ATM duo which has made it possible for rural India. This kiosk has been set up by ICICI Bank in partnership with network n-Logue Communications in remote villages of Southern part of the country. This is known as Proxy Banking. With the help of fiber optic cables, this kiosk works on wireless in local loop Reasons for setting-up of Proxy Banking


58% of rural households still do not have bank accounts. Only 21% of rural households have access to credit from a formal source. 70% of marginal farmers do not have deposit account.

87% households have no formal credit. Only 1% rural households rely on a loan from a financial intermediary. The loans take between 24 to 33 weeks to get sanctioned.

Consumers bribe officials to get loans approved which varies between 10 and 20 per cent of the loan amount.

Branch banking in rural is a loss-making.

Benefits to Rural

Small loans given for buying buffaloes. Loans for setting up a tea shop. Life and non-life insurance provided. Weather insurance given to farmers. Insurance policies sold to farmers like groundnut, castor, soya, paddy crop, etc.

The Proxy Banking is an innovative approach to rural lending and will add to the government's expanding base of kisan credit cards and the good old guidelines for agricultural lending.

Fact Files of Banks in India

The first, the oldest, the largest, the biggest, get all such types of information about Banking in India in this section. The first bank in India to be given an ISO Certification their selected branches The first Indian bank to have been started solely with Indian capital Canara Bank and Sind Bank Punjab Bank National

The first bank in Northern India to get ISO 9002 certification for Punjab

The first among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act

South Indian Bank

India's oldest, largest and most successful commercial bank, State offering the widest possible range of domestic, international and Bank of NRI products and services, through its vast network in India and India overseas India's second largest private sector bank and is now the largest The Federal Bank scheduled commercial bank in India shareholders Limited India of India, Bank which started as private shareholders banks, mostly Europeans Imperial Bank of The first Indian bank to open a branch outside India in London in Bank 1974 The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 132 years managed by Indians Mumbai Allahabad Bank Bank of

1946 and the first to open a branch in continental Europe at Paris in founded in 1906 in

The first Indian commercial bank which was wholly owned and Central India

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974.

Company profile

INTRODUCTION Oriental Bank of Commerce India was established in the year 1943 on 19th February in Lahore. After partition, Oriental Bank of Commerce shifted its Registered Office from Lahore to Amritsar paying every rupee to its departing customers. Oriental Bank of Commerce was nationalized on 15th April in 1980. Then OBC bank had 307 branches with Rs. 282.61 crore as deposits and as advance Rs. 152.69. The National Institute of Bank Management (NIBM), rated OBC Bank as "Customer Friendly" Bank. Oriental Commercial Bank Limited is licensed by the Central Bank of Kenya as a commercial Bank to carry out banking activities under Banking Act Chapter 488 of the Kenyan laws. The Bank started its operations in the year 2002, with new investments and Board of Directors, by taking over the assets and liabilities of the erstwhile Delphis Bank, from Central Bank of Kenya. It is a middle sized Bank and one of the financially robust Banks in, Kenya in terms of shareholders fund and liquidity. The Bank is managed by a professional team of management who are ably supervised by a Board of Directors consisting of eminent personalities of society having high level of integrity and professional skills in their respective areas of operations. We are committed to provide quality banking Service to our customers, however by strictly adhering to the Regulatory Guidelines as applicable within Kenya and, internationally. Our emphasis always remains on carefully following Know your Customers and Anti Money Laundering Guidelines. Corporate banking, Personal banking, Industrial finance, Agricultural finance, Financing of trade, International banking Oriental Bank Commerce has been ranked 38th amongst top 500 companies by The Economic Times. OBC has earned 9th position among top 50 trusted brands in India.

Oriental Bank Commerce India maintains relationship with more than 200 leading international banks worldwide. OBC India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.

Name Sh.T.Y. Prabhu Sh. H Ratnakara Hegde Sh. S.C Sinha V Vijay Sai Reddy R S Maharishi U K Khaitan K B R Naidu Sumita Dawra Sh. S.K Newley Vijay Jagirdar T Valliappan C K Sabharwal Designation Chairman and Managing director Executive Director Executive Director Director Director Director Director Director Director Director Director Director





SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors) The commercial banking structure in India consists of: Scheduled Commercial Banks in India Unscheduled Banks in India Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector): State Bank of India State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurashtra State Bank of Travancore Andhra Bank Allahabad Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Overseas Bank Indian Bank Oriental Bank of Commerce Punjab National Bank Punjab and Sind Bank Syndicate Bank Union Bank of India United Bank of India UCO Bank Vijaya Bank

The following are the Scheduled Banks in India (Private Sector): ING Vysya Bank Ltd Axis Bank Ltd Indusind Bank Ltd ICICI Bank Ltd South Indian Bank HDFC Bank Ltd Centurion Bank Ltd Bank of Punjab Ltd IDBI Bank Ltd YES Bank

The following are the Scheduled Foreign Banks in India: American Express Bank Ltd. ANZ Gridlays Bank Plc. Bank of America NT & SA Bank of Tokyo Ltd. Banquc Nationale de Paris Barclays Bank Plc Citi Bank N.C. Deutsche Bank A.G. Hong Kong and Shanghai Banking Corporation Standard Chartered Bank. The Chase Manhattan Bank Ltd. Dresdner Bank AG

PRODUCTS AND SERVICES Saving Accounts How to Open an Account? Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following:1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ reputed Electricity institution. Bill/ Telephone be Bill/ Identity at the Card time issued of by any of Originals shown only scrutiny

papers)/ Business address. 2. Furnish 2 photographs of all the prospective account holder(s). 3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months. 4. Furnish PAN or declaration of Form No. 60 /61as the case may be. The minimum balance will be:-



Rural In


/Semi Urban Metropolitan branches Without Cheque Book Facility Rs. 100 With Cheque Book Facility Rs. 500 Branches Rs. 500 Rs. 1000

FOR SENIOR CITIZENS AND PENSIONERS Without Cheque Book Facility Rs. 20 Rs.20

With Cheque Book Facility

Rs. 250

Rs. 250

Current Account How to Open an Account? Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following:1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. Originals be shown only at the time of scrutiny of papers)/ Business address. 2 Furnish 2 photographs of all the prospective account holder(s). 3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months. 4. Furnish undertakings/ documents/ declarations as applicable. Please refer Current Account opening form for details. 5. Furnish PAN or declaration of Form No.60 /61 as the case may be. 6. Minimum deposits In Rural /Semi Urban Branches Rs.500 Pragati Deposit Scheme LAUNCH OF ORIENTAL BANK PRAGATI ACCOUNT SCHEME In Urban / Metropolitan Branches Rs.5000

Name of the scheme Date of Commencement Eligibility





Minimum Amount of Deposit and balance Urban & Metropolitan Rs.5000/ to be maintained Validity of Scheme Add on Facilities Rural & Semi-urban Rs.1000/ For a limited period only 1. One Free ATM/ Debit Card for every Account. The ATM/Debit Card of who are Accident authorized (Death) may also be permitted to the partners of the firm/Directors the 22.2. Company Free to operate the Account. Personal insurance cover of Rs. 1 Lac (1st year) 3. Waiver of 100% ABB Charges during the 4. Free 1st internet / Tele year. banking

5. Waiver of Demat Account Maintenance Charges (for One Year)

ADDITIONAL BENEFITS 1. Free Draft issuance Facility For Accounts maintaining Average daily 2.Free RTGS Facility upto Rs.5 Current Account Balance of Rs. 5 Lacs Lacs.

or more

(However, charges plus

mandatory applicable

RBI service

tax shall be recovered.

Scheme Credit Schemes Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards Social Banking Mahila Udyam Nidhi Scheme, Krishi Card, OBC Farmers Welfare Trust Corporate Banking Gold Card scheme for exporters, EXIM finance Business Sector OBC Karigar credit card, OBC Kushal Udhami, OBC Pragati Udhami, OBC Vikas Udhami Flexi Fixed Deposit Scheme:We are pleased to inform that Flexi Deposit Scheme for the benefit of our depositor customers has been approved by the Board on 18th October 2006. This scheme shall come into operation w.e.f. 1st November 2006. The features of the scheme are as under:

PRODUCT & BENEFIT: Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method. However, the funds to be transferred as a

reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance.

LOANS Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country: Housing Loan Personal Loan Educational Loan or Student Loan Car Loan or Vehicle Loan Loan to SMEs Clean Loan to Traders Loan to Doctors Loan to Professionals Loan to Women Loan to Defence Personnel Other Loans

In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000 depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee.

Loan against shares is very easy to get because liquid guarantee is involved in it. Home loan is the latest craze in the banking sector with the development of the infrastructure. Now people are moving to township outside the city. More number of townships is coming up to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading. The educational loan, rather to be termed as student loan, is a good banking product for them ass. Students with certain academic brilliance, studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER Beside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheque, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders. It has been only a couple of years that banks have jumped into the money transfer businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through 2009.


A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake in PSBs, and increased participation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created new competitive threats as well as new opportunities. This paper aims to foresee major future banking trends, based on these past and current movements Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future of banking would be in terms of integration. This is already becoming a reality with new-age banks such as YES Bank, and others too adopting a single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management.

OVERVIEW If one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers (you and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours (maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base. India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian

banking system at a measured pace so that growth could be achieved without exposure to any macro-environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. Anywhere banking and Anytime banking have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system.

RISK MANAGEMENT The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution. Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes. With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure. The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.

ACHIEVEMENTS Oriental bank of commerce announced its Q1FY2010 results on 29 July 2009,delivering 62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of expectations on account of large treasury gains, apart from healthy operating performance. While the banks deposit growth was reasonably robust at 4.4% sequentially and26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% y- o-y. In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net Interest Income (NII) of 29% y-o-y. Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore during the quarter in line with industry trends, even as Fee income was also robust at45% y-o-y, on the back of strong balance sheet growth. Operating expenses were higher than expected on account of Rs150 crore of provisions for imminent wage hikes. Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the bank not adopting the guidelines of treating floating provisions as part of tier 2 capital instead of adjusting against NPAs on express permission from the RBI.

AWARDS AND DISTINCTIONS Ranked among top 50 companies by the leading financial daily, Economic Times.

Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006), London. Earned 9th place among India's Most Trusted top 50 service brands in Economic TimesA.C Nielson Survey. Included in the top 1000 banks in the world according to The Banker, London. Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of Directors.

FICCI's Rural Development Award for Excellence in Rural Development 2005


Vision & Mission Statement

Our Vision

To be a sound all India, customer centric, efficient retail bank with contemporary size, technology and human capital; endeavouring to enrich lives across all sections of society; and committed to upholding the highest standards of corporate governance.

Our Mission
To provide the finest banking services by upgrading human capital and infusing advanced technology, thereby achieving total customer satisfaction; and being reckoned as the Best Bank in the Industry on all efficiency parameters. To enhance shareholders wealth by ensuring sound growth of business and make valuable contributions to national economic growth.


Bonding and Integrity Ethical conduct Periodic disclosure Confidentiality and fair dealing Compliance with rules and regulations


Customer satisfaction refers to the extent to which customers are happy with the products and services provided by a business. Customer satisfaction levels can be measured using survey techniques and questionnaires DEFINITIONS:

Definition 1: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Definition 3: Customer satisfaction occurs when acquisition of products and/or services provides a minimum negative departure from expectations when compared with other acquisitions. Gaining high levels of customer satisfaction is very important to a business because satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a business There are many factors which lead in high levels of customer satisfaction including. Products and services which are customer focused and hence provide high levels of value for money.


The importance of customer satisfaction and support is increasingly becoming a vital business issue as organization realize the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customerfocused business or those running call centers or help desks, need to keep informed about the latest customer satisfaction techniques for running a valuable customer service function. From small customer service departments to large call centers, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers expect from the products and services we provide. Customer expectations have two types Expressed Implied

Expressed Customer Expectations are those requirements that are written down n the contract and agreed upon by both parties for example, product specifications and delivery requirements. Suppliers performance against these requirements is most of the items directly measurable. Implied Customer Expectations are not written or spoken but are the ones the customer would expect the supplier to meet nevertheless. For example, a customer would expect the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot. There are many reasons why customer expectations are likely to change overtime. Process improvements, advent of new technology, changes in customers priorities, improved quality of service provided by competitors are just a few examples. The customer is always right. Suppliers job is to provide the customer what he/she wants, when he/she wants it. Customer satisfaction is customers perception that a supplier has met or exceeded their expectations.


We cannot create customer satisfaction just by meeting customers requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction Major Attributes of customer satisfaction in banking industry can be summarized as: Product quality Premium Outflow

Return on Investment Services Responsiveness and ability to resolve complaints and reject reports. Overall communication, accessibility and attitude.


Customer expectations can be identified using various methods such as: Periodic contract reviews Market research Telephonic interviews Personal visits Warranty records Informal discussions Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that is most effective in measuring the customers perceptions. The purpose of the exercise is to identify priorities for improvements. We must develop a method or combination of methods that helps to continually improve service.


Formal survey has emerged as by far the best method of periodically the customer satisfaction. The survey are not marketing tools but an informationgaining tool. Enough homework needs to be before embarking on the actual survey. This includes: Defining Objectives of the Survey Design Survey approach

Develop questionnaires and forms Administer Survey (Email, Telephone or Post) Method of compiling data and analyzing the findings Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The basic purpose is to find out what we are doing right or wrong. Where is the scope for improvement, where do we stand vis--vis other suppliers. How we can serve the customer better? A customer satisfaction measurement survey should at least identify the following objectives: Importance to customers (Customers priorities) Customers perception of suppliers performance Your performance relative to customers priorities. Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on customers part. They should be designed to actively encourage the customer to complete the questions. Yet they must provide accurate data should also be sufficiently reliable for management decision making. This can be achieved by incorporating objective type questions where customer has to rate on scale of say 1 to 10. For repeated surveys, you could provide the rating that was previously accorded by the customer. This works like a reference point for the customer. Space should always be provided for the customers own opinions this enables them to state any additional requirements or report any shortcomings that are not covered by the objective questions. Normally, we deal various personnel at various levels in the customers organization the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of respondents for each customer gives a complete perspective of customer satisfaction. It may be necessary to device a different questionnaire for each of them. Respondents must be provided a way to express the importance they attach to various survey parameters. Respondents should be asked to give a weighting factor, again on a

rating scale of say, 1 to 10, for each requirement. This gives a better indication of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the performance rating (scores) with importance rating (weighing).


A considerable body of literature exists on consumption, consumer behavior and consumer decision making process. Most of the consumer research focused on adopter categories, habits, attitudes and intentions rather than on actually measuring the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS The paramount goal of marketing is to understand the customer and to influence buying behaviour. The process can be depicted as follows: Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process. Search for information. Pre purchase alternative evaluation. Consumption(utilization of the procured option) Post purchase alternative re-evaluation. Divestment(disposal of the unconsumed product and its remnants)


The ability of the banking industry to achieve the socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. We have a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by us at Oriental Bank of Commerce that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. Citizens' Charter concept was considered as a base instrument to fill this need and accordingly this document was prepared. This document was made in consultation with the users and highlights our Bank's commitments towards the customer satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships. This is not a legal document creating rights and obligations. The Code has been prepared to promote fair banking practices and to give information in respect of various activities relating to customer service. We wish to acknowledge the initiative taken by the Ministry of Finance, Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code. We maintain constant consultations with our clientele through various Seminars, Customer Meets, etc. to evaluate improve and widen the range of service to customer. However, all our customers are requested to keep us informed of their experiences about the various services rendered by the Bank and feel free to comment on this Code. We intend to bring it out in many Regional Languages in subsequent years.








Attend to all customers present in the banking hall at the close of business hours. Provide separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) Display Notify Provide Issue Display and interest details all rates of safe for in various for deposit various locker deposit interest deposit Drafts, hirers rates schemes/services Pay various banking (i.e. individual time of Orders, to on hirers). time. Bank. etc. transactions. advances. the schemes from

change Demand Time-Norms

Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time. Accord immediate credit in respect of outstation and local cheque upto a specified limit subject to certain conditions, as advised by RBI from time to time. Provide complaint/suggestion box in the branch premises. Display address of Regional/Zonal and Central Offices as well as Nodal Officer dealing with customer grievances/complaints

CHAPTER 2 Research methodology



This Study will help us to understand the consumers satisfaction about banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks. The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and Oriental Bank of Commerce in particular.


The deeper the company understands of consumers needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important. This study will help companies to customize the service and product, according to the consumers need. This study will also help the companies to understand the experience and expectations of the existing customer


To have an insight into the attitudes and behaviors of customers. To find out the differences among perceived service and expected service. To produce an executive service report to upgrade service characteristics. To understand consumers preferences. To access the degree of satisfaction of the consumer

Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of

subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist. Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature: E.g., RSS feeds efficiently supply researchers with up-to-date information; major search engine search results may be sent by email to researchers by services such as Google Alerts; comprehensive search results are tracked over lengthy periods of time by services such as Google Trends; and Web sites may be created to attract worldwide feedback on any subject. The results of exploratory research are not usually useful for decision-making by themselves, but they can provide significant insight into a given situation. Although the results of qualitative research can give some indication as to the "why", "how" and "when" something occurs, it cannot tell us "how often" or "how many.

Descriptive research
Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative research often has the aim of description and researchers may boner follow-up with examinations of why the observations exist and what the implications of the findings are.

In short descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Your research must have an impact to the lives of the people around you. For example, finding the most frequent disease that affects the children of a town. The reader of the research will know what to do to prevent that disease thus; more people will live a healthy life.

Causal Research
Causal Research explores the effect of one thing on another and more specifically, the effect of one variable on another. The research is used to measure what impact a specific change will have on existing norms and allows market researchers to predict hypothetical scenarios upon which a company can base its business plan. For example, if a clothing company currently sells blue denim jeans, causal research can measure the impact of the company changing the product design to the colour white. Following the research, company bosses will be able to decide whether changing the colour of the jeans to white would be profitable. To summarize, causal research is a way of seeing how actions now will affect a business in the future. SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 100respondents were selected at random. All the 100 respondents were the customers of different branches of Oriental Bank of Commerce. SAMPLING METHOD

A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A convenience sampling technique was used to collect data from the respondents.


To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis was done for each questions response to reach into findings, suggestions and finally to the conclusion about the topic. TYPES OF DATA

Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.

Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.


Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research viz, 1. Time Constraints: The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed. 2. Sample size: Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents. 3. Accuracy: It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

4.Availability: It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondent




Bank Account Yes No Percentage 93% 7%

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%


Y es No

P ercen e tag


From the above table and graph it can be seen that only 7% of the people

having no bank account while the other 93% have theirs in different banks. This data is presented in both the table and graphical presentation.

Interpretation: So we can conclude most of the people have accounts in various banks
for having different reasons like, to have safety of money, to transact easily with others etc.




13% 10%

25% 20% 15% 10% 5% 0% PE C NT E R E AG SI B OB C P NB AX IS IC ICI OT E HR

Analysis: - From the former table and graphs we can see people have accounts like in SBI 22%, in OBC 24%, in PNB20%, in AXIS 11%, in ICICI 13% and in other banks there are only 10% accounts among all the respondents. Interpretation: It is concluded here that OBC have its popularity of having a large no. of accounts in the studied area for its best service in all sectors.



80 70 60 50 40 30 20 10 0 NO.OFR S E POND NT E S AVING S C RE U R NT F D LOANS OT E S HR

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9% have Current A/Cs and rest of the respondents have 13% share of other A/Cs in total (which includes fixed deposits, loans, and other products) Interpretation: This means most of the respondents are having Saving A/Cs which means the bank deposits are enriching as Saving A/Cs share is most




60 50 40 30 20 10 0 S OR C E B ANDNAME R C T US OME R SR E E VIC INT R S E ET OT E S HR

Analysis: This table show the strengths and weaknesses of the brand, and what are the important criteria or factors on which decision-making is done. From this table we can infer that consumers give more importance for Brand name, secondly they prefer satisfaction, and then returns on investment. Interpretation: This purely shows that people are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting



90 80 70 60 50 40 30 20 10 0



Analysis: - The customers are satisfied largely on the interest rate of OBC compare to any other banks i.e. 82% which is elaborated in the above table and graphs. Interpretation: so we can concluded that the customers are satisfied with the interest rate of OBC

TABLE: 6 HOW THE CUSTOMERS SATISFIED WITH INTEREST RATES OF BANKS Classification Based on level of customer satisfaction with the interest rate of banks.




OF %


1 2 3 4 5 TOTAL
40 35 30 25 20 15 10 5 0


REPONDENTS 26 15 36 9 14 100

RESPONDENTS 26% 15% 36% 9% 14% 100%




The above table shows that 36% of the respondents prefer OBC firstly.

Thereafter they prefer other banks like SBI, PNB etc. Likewise SBI-26%, PNB-15%, ICICI-9% and other banks 14%. Interpretation: From these all it can be concluded that a major part of the customers are satisfied with the interest rate of OBC






RESPONDENTS 8% 92% 100%

10 0 9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0



Analysis: From this table it can be noted that the majority of consumers (92%) doesnt like to shift their A/Cs to other banks. Interpretation: The reason can be increasing customer satisfaction and quality services offered by the bank.





OF % 89% 11% 100


100 80 60 40 20 0 NO OFR S E POND NT E S S IS IE AT F D NOTS IS IE AT F D

Analysis: From the above table it could be inferred that 89% of the consumers are satisfied with the service and quality of products of their bank. Only 11% of consumers are not satisfied. Interpretation: Most of the respondents are satisfied with the service offered by Oriental Bank of Commerce. Presently the bank offers varieties of services and the customers are getting a good rate of return from their deposits. Customers are getting good service from the bank.


1 2 3 4 5 TOTAL


RESPONDENTS 5 9 76 6 4 100

5% 9% 76% 6% 4% 100%

8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 N .O R P ND TS O F ES O EN EX E L T C L EN V YGO D ER O GO D O A ER GE V A P O O R

Analysis: From this table it could be inferred that 76% of the consumers have rated service offered as good, 9% of them have rated them as very good, and 05% of them have rated as excellent and average while only 4% have rated as poor Interpretation: Service offered by the bank is improving day by day. Returns consumers are getting are also attractive. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. Banks are providing a good service to the customers due to increased competition in the market. This may be the reason for more satisfaction.

TABLE- 10 Which product of OBC is beneficiary to Customer?

Classification Based on level of various types of account provided by banks.


5 0 4 0 3 0 2 0 1 0 0 S V GSA A IN /C C URRENTA /C F IXED DEP S O IT L A A/C ON INS URAN E C

Analysis: insurance.

It is seen that more customer have savings account like 47% in OBC.

Likewise there are 23% current account, 17% fixed deposit, 5% loan and only 8% Interpretation: So it is clear that there are more savings account in OBC as compare to other accounts and services

Most of the respondents are having Saving A/Cs .

Most of the respondents are satisfied with the service offered by Oriental Bank of Commerce. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank. People are now looking forward for better customer service in addition to the brand name in which they are investing and the returns they are getting. The reason can be increasing customer satisfaction and quality services offered by the bank.

Chapter 4 Suggestions

With regard to banking products and services, consumers respond at different rates, depending on the consumers characteristics. Hence OBC should try to bring their new product and services to the attention of potential early adopters. Due to the intense competition in the financial market, OBC should adopt better strategies to attract more customers. Return on investment company reputation and premium outflow are most preferred attributes that are expected by the respondents. Hence greater focus should be given to these attributes. OBC should adopt effective promotional strategies to increase the awareness level among the consumers. OBC should ask for their consumer feedback to know whether the consumers are really satisfied or dissatisfied with the service and product of the bank. If they are dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected in future. The OBC brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, OBC should work hard to maintain its position and offer better service and products to consumers. The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied. Majority of the people find banking important in their life, so OBC should employ the strategies to convert the want in to need which will enrich their business.



SATISFACTION TOWARDS OBC has helped me in studying satisfaction about services and products offered to consumers. Since the opening up of the banking sector, private banks are in the fray each one trying to cover more market share than the other. Yet, OBC is far behind SBI, PNB. OBC must also be alert what with Private Banks (ICICI, HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition. In short, I would like to say that the very act of the concerned management at OBC in giving me the job of critically examining consumer satisfaction towards financial products and services of the company is a step in their continual mission of making all round improvements as a means of progress. I am sure the bank has a very bright future to look forward to and will be a trailblazer in its own right


Research Methodology by C.R. KOTHARI, 2nd edition. Marketing Management by PHILIP KOTLER, 11th edition



3. MAGAZINES AND NEWSPAPERS Kotler Philips, Marketing Management: 12thEdition, 2006, Prentice Hall of India Ltd., New Delhi. Kothari, C.R. Research methodology, 3rd edition, 1997 , Vikas Publishing House Pvt. Ltd., New Delhi


Customer Feedback Form

Name of Customer......... Address .. A/C No......Age.Sex Contact no..

1. Do you have any bank account? Yes No

2. If yes, than in which bank you have done your transaction? SBI OBC


AXIS Others____________

3. Which type of account you have? SAVING A/C FIXED DEPOSIT A/C CURRENT A/C

4. Why you choose OBC? Customer service Interest Brand name Others__________________

5. Do you satisfied with the interest provided by your bank? Yes No

6. Which bank provided better interest rate? SBI OBC Other_________________ 7. Are you interested to sift the account to other bank? Shift Doesnt shift PNB ICICI

8. Are you satisfied with the service provided by OBC? Satisfied Not satisfied

9. How you rate the insurance product of OBC? Excellent Average Very good Poor

10. Which product of OBC would you like? SA FA CA LA Other______________________