ACKNOWLEDGEMENT

Apart from the efforts of me, the success of project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would like to show my greatest appreciation to Prof. ______________ . I cant say thank you enough for her tremendous support and help. I feel motivated and encouraged every time under her guidance. Without her encouragement and guidance this project would not have materialized. The guidance and support received from all the members who contributed and who are contributing to this project, was vital for the success of the project. I am grateful for their constant support and help.

XYZ

ROLL NO. 1852

Table of contents
S.N o 1 2 3 ABSTRACT EXECUTIVE SUMMARY INTRODUCTION Background Banking in India Major private banks in India Case Studies - Navision - Private Bank (ERP Implementation) Research Questions Topics 1 2-3 4-15 4 6 9 11 Page No.

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4 5 6 7 8 9 10

MEASURING CUSTOMER SATISFACTION 18-23 IN THE BANKING INDUSTRY BANKING INDUSTRY : AN OVERVIEW RESEARCH METHODOLOGY DATA ANALYSIS AND FINDING RECOMMENDATIONS LIMITATIONS OF THE STUDY BIBLIOGRAPHY 24-36 37 38 62 63 64

ABSTRACT
As in so many other industries, banks are striving hard to become increasingly customer- centric in order to survive and grow. Achieving this customer focus requires retaining of existing customers by providing quality services. In the competitive market, every individual is in need of better services. If you fail to provide required service, they will switch over to another bank which provides better quality services. The present paper discusses issues relating to customer services in both the private sector and public sector banks . In order to understand the customer perception towards services rendered by both the banks, many attributes such as cooperation & Behavior of staff, ATM services, Basic facilities, CHEQUE collection time etc. were considered. The study reveals that PRIVATE bank is much ahead of PUBLIC bank in providing quality services to their customers. Keywords : ATMs facilities , internet banking, mobile banking ,Bank Statement of Account, Token System, Drop Boxes, Fake Notes, ,Customer Perception

OBJECTIVES OF THE STUDY: The main objective of the study is to know the customer perception towards the services rendered by public sector banks and private sector banks. A comparative analysis of services rendered by the public and private sector banks is undertaken under the present study.
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COMPARATIVE STUDY OF CUSTOMER SATISFACTION IN PUBLIC SECTOR AND PRIVATE SECTOR BANKS

EXECUTIVE SUMMARY
The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. In the organised segment, banking system occupies an important place in nations economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer.It's a well known fact that no business can exist without customers. 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 preeconomic reforms days, when the banking sector primarily consisted of public sector banks. The banking industry like many other financial service industries is facing a
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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. The main driver of this change is changing customer needs and expectations. Customers in urban India no longer want to wait in long queues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the development of ATMs, phone and net banking along with availability of service right at the customer's doorstep. With the emergence of universal banking, banks aim to provide all banking product and service offering under one roof and their endeavor is to be customer centric. With the emergence of economic reforms in world in general and in India in particular, private banks have come up in a big way with prime emphasis on technical and customer focused issues. The purpose of this paper is to compare the public sector banks and private sector banks in terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks. The data was
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collected by getting the questionnaire filled by respondents who were using the banking services.

the

INTRODUCTION
BACKGROUND
In the organized segment, banking system occupies an important place in nations economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer.It's a well known fact that no business can exist without customers. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business. In a competitive
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marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and service to service. The state of satisfaction depends on a number of both psychological and physical variables. 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. With the current change in the functional orientation of banks, the purpose of banking is redefined. The main driver of this change is changing customer needs and expectations. Customers in urban India no longer want to wait in long queues and spend hours in banking transactions. This change in customer attitude has gone hand in hand with the development of ATMs, phone and
2

net banking along with availability of service right at the customer's doorstep. With the emergence of universal banking, banks aim to provide all banking product and service offering under one roof and their endeavor is to be customer centric. With the emergence of economic reforms in world in general and in India in particular, private banks have come up in a big way with prime emphasis on technical and customer focused issues.

The word private means that customer services are focused on more individually rather than bulk customer or retail banking which more likely to go for transaction personally more than cooperation and other banks often by means of devoted bank advisers. Private banking and private bank is two different thing, they should not be confused with each other as private bank are not integrated.

BANKINg IN INDIA

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank Of Bombay and the Bank Of Madras, all three of which were established under charters from the British
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East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the IMPHERICAL Bank Of India which, upon India's independence, became the State Bank Of India. Deposits upto Rs 1 lac are insured by DICGC in all private, public sector and cooperative banks. Thus, if you have deposits of less than Rs 1 LAKHS in individual banks, then you don't have to worry at all. India has one of the most robust banking systems in the world and there is almost zero probability that any of the larger banks will ever fail. RBI has a lot of tools like CRR and it is very effective in regulating risk in the financial system. Even if a bank fails, RBI is most likely to intervene and return deposits bank to the depositors.(Share holders may lose everything in such a case). Banks (public sector and private) are limited liability companies. If they fail, their promoters cannot be forced to pay for the deposits, unless they have committed fraud and swindled funds of the bank. e.g. SBI gives risky loans, loses lot of money and collapses. In such a case, the government is not under any legal obligation to pay the depositors. However, if the bank lost money due to fraudulent practices of the management, the government may be forced to pay back. I think in both cases, RBI would intervene and return money back to depositors. A collapsing bank can do a lot of damage to the financial system of a country. It is a better choice for RBI (both from political as well as economic viewpoint) to return the deposits. than to let the customers suffer huge financial losses.

Initially all the banks in India were private banks, which were founded in the pre-independence era to cater to the banking needs of the people. In 1921, three major banks i.e Banks of Bengal Bank of Bombay and Bank of Madras , Merged to form Imperial Bank of India. In 1935, the Reserve Bank of India (RBI) was established and it took over the central banking responsibilities from the Imperial Bank of India, transferring commercial banking functions completely to IBI. In 1955, after the declaration of first-five year plan, Imperial Bank of India was subsequently transformed into STATE BANK OF INDIA. Following this, occurred the nationalization of major banks in India on 19 July 1969. The Government of India issued an ordinance and nationalized the 14 largest commercial banks of India, including Punjab National Bank (PNB), Allahabad Bank, CANARA Bank, Central Bank of India, etc. Thus, public sector banks revived to take up leading role in the banking structure. In 1980, the GOI nationalized 6 more commercial banks, with control over 91% of banking business of India. In 1994, the Reserve Bank Of India issued a policy of liberalization to license limited number of private banks, which came to be known as New Generation tech-savvy banks. Global Trust Bank was, thus, the first private bank after liberalization; it was later amalgamated with Oriental Bank of Commerce (OBC). Then Housing Development Finance Corporation Limited (HDFC) became the first (still existing) to receive an 'in

principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sectors.. At present, Private Banks in India include leading banks like ICICI Banks, ING Vysya Bank, Jammu & Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, SBI Commercial and International Bank, etc. Undoubtedly, being tech-savvy and full of expertise, private banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.

Major private banks in India

BANK OF RAJASTHAN A leading private sector bank, the Bank of Rajasthan was founded on the auspicious day of AKSHYK TRITIYA on May 8, 1943, at Udaipur. SHRI RAI BAHADUR, then finance minister of the erstwhile MEWAR Government, extensively contributed towards the establishment of the Bank. CATHOLIC SYRAIN BANK With the SWADESHI Movement of early 20th century as its base, Catholic Syrian Bank was incorporated on 26th November 1920, in the THISSUR district of Kerala. The bank commenced its operations on 1st January 1921, with an authorized capital of Rs. 5 lakhs and a paid up capital of rs.45637.
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DHANLAKSHAMI BANK The foundation of DHANLAKSHAMI Bank Limited was laid down on 14th November 1927, in the THRISSUR district of Kerala. A group of innovative entrepreneurs had started the bank with a capital of Rs.11,000 and only 7 employees. HDFC BANK Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. ICICI BANK ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE) JAMMU AND KASHMIR BANK The origin of Jammu and Kashmir Bank Limited, more commonly referred to as J&K Bank, can be traced back to the year 1938, when it was established as the first state-owned bank in India. The bank was incorporated on 1st October 1938 and it was in the following year (more precisely on 4th July 1939) that it commenced its
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business, in Kashmir (India). KOTAK MAHINDRA BANK OF INDIA KOTAK Mahindra Bank is one of India's leading financial private banking institutions. It offers banking solutions that covers almost every sphere of life. Some of its financial services include commercial banking, stock broking, mutual funds, life insurance and investment banking. SBI COMMERCIAL AND INVESTMENT BANKS SBI Commercial and International Bank, (SBICI) is a completely owned private auxiliary of India's biggest banking and financial services set up, the State Bank of India. Established in 1995 to back SBI's corporate and international banking services, the SBI Commercial and International Bank is the only bank in India to be been awarded ISO-9002 quality systems certification for the Bank as a whole. UTI BANK Axis Bank was formed as UTI when it was incorporated in 1994 when Government of India allowed private players in the banking sector. The bank was sponsored together by the administrator of the specified undertaking of the Unit Trust of India, Life Insurance Corporation of India (LIC) and General Insurance Corporation ltd.

Navision - Private Bank (ERP Implementation)

Case Studies -

The client is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia. The client wanted implementation of a suitable Financials System, which will eliminate the need for manual corrections and would have interfaces with the existing operational system as well as the global SAP for group reporting needs. Pain Areas:
Customer Case Studies

ain areas of the client were as follows: P There were limitations in generation of accounting file from core banking there by requiring manual intervention for upload of correct data to ERP. The group ERP was in line with group policies there by restricting its usage as complete General Ledger solution for local regulatory reporting. Adjustment entries received from operations every month and it took 4 -5 working days to get the entries attested and cleared. Entries were to be maintained Core Banking System as well as Excel, with corrections manually maintained in
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excel due to some system limitations. Indian GAAP demands detailed level of reporting where as GL's available in group SAP were limited there by restricting the ERP usage for Local reporting purpose. Number of adjustment entries was numerous ranging from 200 - 220 every reporting date, there by making the process very time consuming and cumbersome. Manual intervention in maintaining the entries in Excel posed operational risk. Fixed Asset Management was done manually. Tax and regulatory reports were manually maintained.

The Solution:

Direction studied the requirements and implemented Microsoft Dynamics NAV, comprising of the following modules: General Ledger Cash & Bank Management Work Flow Management

Accounts Payable Fixed Assets

The following interfaces were developed and implemented. Interface with Core Banking Solution to accept General Ledger accounting transactions. Interface with group ERP by means of generating output files in format required by these systems. File Upload to Citibank for Vendor Payments. The following were additionally implemented: Standard Navision reports pertaining to Financial Management Customized Reports Customized authorization matrix Automatic posting of Currency Revaluation Journal Implementation of CWIP process Generation of automatic positioning JV for cross currency operations The following add on modules were also
1

implemented. Work Flow

The implementation enabled the client to get up to date information on various operational aspects of the company, helped in reducing the month end reporting cycle.

Research Questions:
To find out the level of expectation and the level of perception of the customers from the services offered by the banks. To compare the level of perception and expectation of the services offered by the banks. To know which service quality dimension the bank is performing well and in which dimension it needs improvement.
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 To know the preference towards the public sector and private sector banks To what extent consumers in Chandigarh region are satisfied as regard to sector banks.

SCOPE OF THE STUDY:

The study has been conducted with a variety of important objectives in mind. The following provides the main objectives that have been tried to achieve through this study. The extent to which these objectives have been met could judged from the conclusions and suggestions which appear in the later of this study. Questionnaires were made and was distributed to 100 people which include employed , unemployed and housewives. THE CHIEF OBJECTIVES OF THIS STUDY: 1. To find the bank sector which is largely availed by the customers. 2. To study the factors influencing the choice of a bank for availing services. 3. To find and compare the satisfaction level of customers in public and private sector banks . 4. To study the problems faced by the customers..

LITERATURE REVIEW

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 preeconomic reforms days, when the banking sector primarily consisted of public sector banks.

Cut to the present day and the nature of banking has changed beyond recognition. With ATM cards, simple banking transactions like withdrawing and depositing money are easier than ever before. Even when it comes to products, the changes have been many. Graduating from simple savings accounts and fixed and recurring deposits, banks now offer a host of products like special savings account and sweep-in-account, no frills accounts and easy receive account. Private sector banks may have taken the lead, but public sector banks, with their vast client base and unparalleled treasury of trust, are evolving their own brand of customerfriendliness. Because satisfaction is basically a psychological state, care should be taken in the effort of quantitative measurement, although a large quantity of research in this area has recently been developed. Work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten 'Quality Values' which influence satisfaction behavior, further expanded by Berry in 2002 and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value, Timeliness, Efficiency,
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Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behaviors, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organizational change measurement and are most often utilized to develop the architecture for satisfaction measurement as an integrated model. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. According to GARBARND customer satisfaction equals perception of performance divided by expectation of performance. The usual measures of customer satisfaction involve a survey with a set of statements using a LIKERT Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. The working of the customer's mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. This vital information will help us to
2

build satisfaction amongst the customers and customer loyalty in the long run which is an integral part of any business. The customer's requirements must be translated and quantified into measurable targets. This provides an easy way to monitor improvements, and deciding upon the attributes that need to be concentrated on in order to improve customer satisfaction. We can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William Thomson Kelvin (1824-1907).

MEASURING CUSTOMER SATISFACTION IN THE BANKING INDUSTRY

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

THE NEED

TO

MEASURE CUSTOMER SATISFACTION:

Satisfied customers are central to optimal performance and financial returns. In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are
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finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction.

WHAT

CONSTITUTES

SATISFACTION?

The meaning of satisfaction: "Satisfied" has a range of meanings to individuals, but it generally seems to be a positive assessment of the service. The word "satisfied" itself had a number of different meanings for respondents, which can be split into the broad themes of contentment/happiness, relief, achieving aims, achieving aims and happy with outcome and the fact that they did not encounter any hassle:

Happy
- Content

Happy, pretty happy, quite happy Pleased Walked out of there feeling good Walk out of there chuffed Grateful the service has been OK

Relieved
- Thank God for that

- Phew - At ease - Can relax - Stress reduction - Secure - Safe - Go to the bank with a troubled mind and they sort it out for you - Sleep at night without worrying what's going to go on - Everything is sorted out in your mind and you're happy - Secure, you know the money has been sorted out - Knowing the money's going to be there

Achieving aims
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- Achieving your aim or goal - Getting what you went in for - Achieve whatever it is you wanted to achieve - Come away with a proportion of what you want - Got what wanted in the end - Got what you went down for - Everything went according to plan, the way it should have done - Met expectations - To be unsatisfied is when you come out and you are still on the same level as you were before

Achieving aims, and happy with outcome

- Happy with the results - Happy with what you've got - When you walk out you're happy they've sorted everything out and quickly - Happy with outcome - Pleased with what's happened - Content with what's been done for you - A feeling of happiness having achieved your goal - You go in there feeling down and the only way you are going to come out satisfied is if they have been good to you

No hassle
Not frustrated Everything goes smooth No hassle No problems No hassle getting there Straightforward

Clearly then there is some variation in understanding of the term. Some of the interpretations fit with the definitions used in much of the service quality and satisfaction literature, where satisfaction is viewed as a zero state, merely an assessment that the service is
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adequate, as opposed to "delight" which reflects a service that exceeds expectations. However, most respondents have more positive interpretations of the term. These questions allow us to identify priorities for improvement by comparing satisfaction with stated (overt) importance, comparing satisfaction with modeled (covert) importance (from identifying key drivers of overall satisfaction), as well as respondents' own stated priorities.

SERVICE QUALITY AND CUSTOMER SATISFACTION:

There is a great deal of discussion and disagreement in the literature about the distinction between service quality and satisfaction. The service quality school view satisfaction as an antecedent of service quality satisfaction with a number of individual transactions "decay" into an overall attitude towards service quality. The satisfaction school holds the opposite view that assessments of service quality lead to an overall attitude towards the service that they call satisfaction. There is obviously a strong link between customer satisfaction and customer retention. Customer's perception of Service and Quality of product will determine the success of the product or service in the market. If experience of the service greatly exceeds the expectations clients had of the service then satisfaction will be high, and vice versa.. In the service quality literature, perceptions of service delivery are measured separately from customer expectations, and the gap between the two provides a measure of service quality.

EXPECTATIONS

AND

CUSTOMER SATISFACTION:

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

BANKING INDUSTRY : AN OVERVIEW

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For centuries banks have played an important role in financial system of the country. The vital role continues even today although the form of banking has changed today with changing need of the economy and individuals. With expansion of trade and commerce, the concept of banking gained importance. The banking transcended from individuals to groups and later to companies. During the MUGHUL period the indigenous bankers played a very important role in lending money and financing foreign trade in India. During British rule the agency houses carried on the banking business. The Banking system in India has three tiers. There are scheduled commercial banks; the regional rural banks; and the cooperative banks. The scheduled commercial banks constitute those banks which are included in the second schedule of RBI Act 1934. In the ORGANISED segment, banking system occupies an important place in nations economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services

NEED OF BANKING INDUSTRY:

The ability of the banking industry to achieve its socioeconomic objectives and in the
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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 ICICI Bank that in order to become more customer friendly the ,bank should come out with charter of its services for the customers.

This charter for customers not only explains our commitment and responsibilities along with the redressal methods but also specifies the obligations on the part of customers for healthy practices in customer-banker relationships. This is not a legal document creating rights and obligations. The CHARTER 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 encouragement and guidance provided by the Reserve Bank of India and the Indian Banks Association to help us bring out this CHARTER.

We maintain constant consultations with our customers and seek their feedback to evaluate, improve and widen the range of services provided by us. All our customers are requested to share their experiences about the various services rendered by the Bank and feel free to answer

COMMON PRACTICES FOLLOWED BY OUR SERVICE CHANNELS; BRANCHES :

2. Render courteous services 3. Make the branch/ ATM locations, Phone Banking numbers and Internet Banking.. 4. Attend to all customers present in the banking hall at the close of business hours 5. Provide separate 'Enquiry' or 'May I Help You' counter at large branches 6. Display interest rates for various deposit schemes from time to time PHONE/ INTERNET BANKING 1. Render service 24 hours a day 7 days a week 2. Attend to all customers calling in to the phone banking number/ logging on to internet banking website 3. Make the branch/ ATM locations, Phone Banking numbers and Internet Banking address of the Bank known to customers easily
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1. Display business hours

4. Provide details of various deposit schemes/ services of the Bank 5. Respond to customer queries related to customer account(s) with us subject to verification by the customer 6. Provide facility for logging complaint/ suggestion ATM 1. Render service 24 hours a day 7 days a week 2. Provide cash withdrawal facility at all locations and other facilities at select Location.. 3. Provide facility for logging complaint/ suggestion 4. Make the branch/ ATM locations, Phone Banking numbers andInternet Banking address of the Bank known to customers easily

FAIR BANKING PRACTICES: Customers are requested to: 1. Ensure safe custody of CHEQUE book and account statements. 2. Preferably use reverse carbon while writing a CHEQUE. 3. Issue crossed/ account payee CHEQUES as far as possible. 4. Check the details of the CHEQUE ,namely, date, amount in words and figures, crossing etc. before

issuing it. As far as possible, issue CHEQUE after rounding off the amount to the nearest rupee. 5. Not to issue CHEQUE without adequate balance, maintain minimum balance as specified by the Bank. 6. Send CHEQUES and other financial instruments by Registered Post or reliable courier. 7. Use nomination facility.
8.

Safe keep account/ locker numbers, details of FDR, account statements etc. and ensure confidentiality.

9. Not to share phone banking/ internet banking passwords and ATM/ Debit Card PINs with others. 10. Provide accurate information about name, address, telephone number, etc. and also inform changes, if any, to the Bank immediately. 11. Inform loss of demand draft, fixed deposit receipt, CHEQUE leave(sbook, key of locker etc. immediately to the Bank. 12. Avail standing instructions facility for repeat transactions. 13. Provide feedback on our services. 14. Pay interest, installments, locker rent and other dues on time. 15. Avail direct services such as ATM, ECS, EFT, Internet Banking, Phone Banking Mobile Banking etc.
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16. Bring any deficiency in services to the notice of the bank. 17. Not to sign blank CHEQUE(s) and also do not record your specimen signature either on pass book or on CHEQUE book. 18. Not to introduce any person who is not personally known to them for the purpose Opening ACCOUNT.

COMMON AREAS OF CUSTOMER-BANKER RELATIONSHIP :I. Savings Bank Account :

These accounts are designed to help the individuals (personal customers) to inculcate habit of saving money and to meet their future requirement of money. The amounts can be deposited/ withdrawn from these accounts by way of CHEQUES / ATMs. It helps the customers to keep minimum cash at home besides earning interest. Savings Bank accounts are very popular and can be opened by eligible person(s) and certain organization(s)/ agencies as approved by the Reserve Bank of India (RBI). As required by law, while opening this account we will satisfy ourselves about the identity, including verification of address, of a person(s) seeking to open an account, to assist in protecting the prospective customer(s), members of the public and ourselves against fraud and other misuses of the banking system. The Bank requires a satisfactory introduction of the person(s) opening the account by a person acceptable to
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the Bank and/ or relevant documents required for identification of the person(s) opening the account. The necessary documents will be informed at the time of opening the account. The Bank will also require one recent photograph and the Permanent Account Number (PAN) or General Index Register (GIR) Number or alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act (vide Section 139 A) from the person(s) opening the account#. The account holder is required to maintain certain minimum balance in the account, as specified by the Bank from time to time, through branches, phone banking and internet banking. Non-compliance of this would attract service charges: Interest at 3.5% p.a. is presently paid by ICICI Bank on half yearly basis depending on minimum balance between the 11th day and last day (both days inclusive) of the corresponding months, provided it works out to minimum Re. 1.CHEQUES and dividend warrants drawn in the name of account holder(s) will only be collected through this account. Financial Instruments endorsed in of the account holder(s) will not be collected through savings bank account. Account holders must not use these accounts for business transactions.
I. Current Account

Current Accounts can be opened by individuals, partnership firms, private and public limited companies, HUFs/ specified associates, societies, trusts etc. As required by law, while opening this account we will satisfy ourselves about the identity, including verification of address, of a person(s) seeking to open an account, to assist in protecting the prospective customer(s), members
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of the public and ourselves against fraud and other misuses of the banking system. The necessary documents will be informed at the time of opening the account. The Bank will also require one recent photograph and the Permanent Account Number (PAN) or General Index Register (GIR) or alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act (vide Section 139 A) from the person(s) opening the account (i.e. including partners of Registered/ Unregistered partnership as also Registered/ Incorporated bodies/ companies). No interest is paid on credit balances kept in current account.
I. Term Deposit Accounts

Bank has tailored various deposit schemes to suit the needs and expectations of investing people in every walk of life. Bank staff shall welcome you to seek more details and shall also be glad to assist in the area of investment in various deposit schemes with your requirement. Term Deposit accounts can be opened by individuals, partnership firms, private and public limited companies, HUFs/ specified associates, etc. The Bank requires a satisfactory introduction of the person(s) opening the account by a person acceptable to the Bank and/ or relevant documents required for identification of the person(s) opening the account. The necessary documents will be informed at the time of opening the account.
Premature withdrawals are allowed, unless specified

otherwise, at the rate of interest applicable for the

period for which the deposit has run or the contracted

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rate whichever is lower, subject to penalty, if any prescribed by the Bank. No interest will be paid on premature withdrawals of deposit, which has remained with the Bank for less days. Generally loans/ overdrafts against deposits are allowed except on Certificates of Deposits (CDs). Such loans are sanctioned by charging interest at rates directed by RBI from time to time or as prescribed by the Bank.

Interest on deposits is payable either monthly at discounted value or quarterly or compounded quarterly (i.e., reinvestment of interest) or on the date of maturity at the option of the depositor as applicable under particular deposit scheme. Interest on bank deposits is exempt from income tax upto a limit specified by Income Tax authorities from time to time.

Presently, if the total interest on deposits, per depositor, per branch, per financial year exceeds Rs. 5,000, the same is subject to Tax Deduction at Source (TDS) at the rates stipulated by the Income Tax Authorities. The depositor may furnish declaration in Form No. 15G, preferably at the commencement of the Financial Year, for receiving interest on deposits without deduction of tax. IV. Payment of Balance in Accounts of Deceased Customers to Survivors/Claimants

As directed by the RBI, the bank does not insist on succession certificate from legal heirs irrespective of amount involved. However, the bank adopts such safeguards in considering settling of claims as appropriate including accepting an indemnity bond. V. Standing Instructions Standing instructions can be given to the Bank for transfer/ remittance of funds from one account to other account(s) maintained in the same branch, any other branch of the Bank or any other bank or any other third party. VI. Safe Deposit Lockers The facility of Safe Deposit Lockers is an ancillary service offered by the Bank. The majoraspects governing the services are:
- A locker may be hired by an individual (not minor), firms,

limited companies, specified associations and societies, etc. - Nomination facility is available to individual hirer of Safe Deposit Locker - Loss of key should be immediately informed to the Branch - Lockers are available in different sizes - Lockers are rented out for a minimum period of one year. Rent is payable in advance - In case of overdue rent, the Bank will charge penalty as decided from time to time - With standing instruction, the rent may be paid from the deposit account of the hirer - The Bank will hire locker to properly introduced persons

- The Bank reserves the right to break open the locker if the rent is not paid inspite of giving notices as per the Bank rules and recover charges thereof.
VII. Articles in Safe Custody

Articles like shares, securities, etc. can be kept in safe custody with the Bank on prescribed charges wherever such facility is offered. Large/ small boxes must be locked by the customer(s) and particulars must be written/ painted thereon. The lock should be covered by stout cloth and sealed with the customer's seal. Relationship of Banker and customer shall be that of bailer and BALIEE.

VIII. Nomination
Nomination facility is available for all deposit accounts, articles in safe custody and safe deposit vaults. Nomination is available for accounts opened in individual capacity (i.e. single/joint accounts as well as accounts of a sole proprietary concern) only, i.e. not for accounts opened in representative capacity. Nomination can be done in FAVOUR of one person only. However, nomination in FAVOUR of more than one person ( i. e .UPTO 2 persons) is permissible in jointly operated locker accounts with common consent. Nomination can be made, cancelled or varied by the account holder anytime during his/ her lifetime. While making nomination, cancellation or variation, witness is required and the request should be signed by all account holders. For the existing accounts where nomination is not made, the account holder(s) can do so by filling up form available with the branches.

 Customers (new as well as existing) are advised to avail nomination facility, if they have not availed so far.

IX. Remittance Service

Customers may remit funds from one centre to another centre by Demand Draft or Electronic Funds Transfer (operated through RBI) or Internet based funds transfer etc. With in applicable limits, based on availability at various locations and by paying specified charges as per the Bank's rules. Demand drafts Demand drafts and travelers CHEQUES for Rs.50, 000 and above will be issued by the banks only by debit to the customer's account or against CHEQUE or other instruments tendered by the purchaser and not against cash payment. Similarly, such payments for Rs.50,000 and above will be made through banking channels and not in cash. Issue of Duplicate Demand Draft without Receipt of NonPayment Advice: As directed by the RBI, the bank will issue duplicate demand draft upto Rs. 5,000 on the basis of adequate indemnity and without obtaining NonPayment Advice from the DRAWEE branch. Time Frame for Issue of Duplicate Draft: As directed by the RBI, the bank will issue duplicate demand draft to the customer within a fortnight from the receipt of request. X. Collection Service All CHEQUES deposited by the customers are cleared, subject to charges, by the Bank as follows:

- HIGH VALUE CHEQUES :This facility is available for clients of select branches at designated CENTERS . CHEQUES of high value (Rs. 1 lakh or more, per instrument) are cleared on the same day subject to deposition of the CHEQUES in time. - LOCAL CHEQUES : A CHEQUE drawn on a bank branch in the same city as the bank branch where it is deposited is called a local CHEQUE. These CHEQUES are normally cleared within 4 working days. - OUTSTATION CHEQUES: A CHEQUE drawn on a bank branch in a different city from the bank branch where it is deposited is called an outstation CHEQUE. These CHEQUES are normally cleared within 21 working days. Customers are requested to deposit their CHQUES within the stipulated time frame at the branches to ensure timely clearing. XI. Collection of Government Dues The Bank handles collection of various taxes on behalf of the Government of India through select designated branches. XII. Exchange of Soiled/ Slightly Mutilated Currency Notes All the branches of the Bank will exchange freely, soiled/slightly mutilated currency notes and certain other types of mutilated currency notes of all denominations. The Bank's currency chest branches will exchange all categories of mutilated currency notes. Currency exchange facility is offered to the Bank's customers and others. The Bank Follows RBI guidelines in this respect. RBI has permitted the banks to exchange mutilated
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currency notes which are genuine and where mutilations are such as not to cause suspicion or fraud. XIII. Interest on Deposits The Bank pays interest on deposits as per various deposit schemes. Interest rates are revised from time to time and made known to public. Revised interest rates are applicable only to the renewals and fresh deposits while existing deposit continue to get interest at the contracted rate. XIV. Service Charges The Bank provides various services to customers for which service charges are levied. The charges are reviewed /revised from time to time. Service charges are levied for Collection and remittance of funds, processing of loan proposals, issue of guarantees, safe custody, issue of duplicate instruments/statements, ledger folio charges etc. Details of service charges will be made available on request. XV. Time-Norms for Various Banking Transactions The following time norms are indicative and may vary slightly from branch or branch. 1 2 3 4 5 Cash payment upto 15 minutes Receipt of cash upto15 minutes For issuance of demand draft upto10 minutes Payment of demand drafts upto15 minutes Payment of fixed deposit receipts 20 to 25 minutes
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6 Opening of an account% 25 to 30 minutes 7 Statement of accounts (request for duplicate) Within 3 working days Collection of CHEQUES.- Local 8 Normally within 4 days - Outstation Normally within 21 days

XVI. REDRESSAL OF COMPLAINTS In case of any complaint, customers can contact the Bank through various channels: By visiting the nearest ICICI Bank branch By calling on 1901 333 444 or the local ICICI Bank Phone Banking number By lodging request through the relevant link on www.icicibank.com By sending e-mail to the Bank on customercare@icicibank.com By sending written correspondence to the Bank through post on the following Address ICICI Bank Limited ICICI Bank Phone Banking CENTER Y P. O. Box No. 20 BANJARA Hills P. O. Hyderabad 500 034 India The relevant contact numbers, addresses and e-mail ids for this purpose are provided in all customer communication.

At the Bank, every customer complaint is lodged into the Customer Relationship Management System, which generates a reference number for the complaint. The reference number and the expected resolution time for the complaint are provided to the customer for future tracking. The customer can easily track the status of his/ her complaint using any channel irrespective of where he/ she logged the complaint. If the customer is not satisfied with the resolution provided, then he can write to the Banks dedicated customer service cell at:

Research Methodology

The present study is purely based on primary data. The information relating to the customer perception towards services rendered by public sector banks & private sector banks is collected through structured questionnaires for the purpose of analysis. The total sample size of the study is 100 consisting employed unemployed persons. These respondents have been selected on random sampling basis. The area of the study is limited to Chandigarh and mohali only .The other required information is collected through the officials of the banks and published materials. In order to understand the customer perception towards services rendered by both the banks ,following aspects have been taken into consideration even though there are many other issues. In order to have a clear idea of the services provided by banks, information is collected through internet and with the guidance of our professors. Sample and data collection: This survey was conducted in the context of banking services. Data were collected in face-to-face interviews of customers coming to banks. The study provides a representative sample of various banks customers in Chandigarh only. Research design: The research design would be descriptive and cross sectional Data collection: The data would be collected from primary source through questionnaires and interviews. Data Sources Both Secondary and Primary Sources of data will be used.The major type of information used is primary data. This is done through primary survey. The literature review is a secondary data type. The sources include books, periodicals, websites, printed literature etc.
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DATA ANALYSIS & FINDINGS

ANALYSIS AND FINDING

Firstly the analysis of the first part of questionnaire is done by me which includes the personal data of the respondents. The analysis is as follows Of total 100 respondents 45 were female and 55 of them were male.

56 respondents have their account in private banks and 44 of them have their account in public banks.

1.Do you feel your bank is secure?

(no. of people)

Banking sector
Private bank Public bank

yes
16 32

no
32 7

May be
8 5

Out of 56 people who opted for private bank, 16 agree that their bank is secure where as 32 people has given a negative response over bank security. But maximum percent of people who opted for public bank responded positively with respect to this question about their feelings regarding their bank security. This shows that people trust more to public banks in case of security level and the reason can be as these banks are regulated and controlled by RBI.

2.Do you think that your bank caters all your banking needs?
(no of people)

Banking sector
Private bank Public bank

Yes
40 15

no
10 29

May be
6 0

The word "private" refers to the customer service being rendered on a more personal basis than in mass-market , so in such a case 40% people agree that private banks cater their all banking needs , where as on the other hand 29% people give negative view about public banks.

3.Do they provide door to door services?

(no.of people)

Banki Yes ng secto r

Private bank Public bank 41 5

no

May be

15 39

0 0

Out of 56 people who opted for private bank, 41 customers agree that their bank provide door to door service such as collection of CHEQUES. where as 39 people has given a negative response over such service. But maximum percent of people who opted for private bank responded positively with respect to this question about their feelings regarding such service . This shows that customers feel more comfortable to such service.

4.Do they provide privacy statement?

(no of people)

Banking sector

yes

no

May be

Private bank Public bank

32 10

9 34

15 0

Privacy statement is a legal document or is a summary of all financial transactions occurring over a given period of time on a deposit accounts or on a credit card , or any other type of account offered by a financial institution, which discloses the financial position of the customers regarding their bank account . only private sector banks provide such statement where as public sector banks need many documents in order to provide such statement.

5.Are you satisfied with the working hour facilities provided by your bank?

(no. of people)

Banking sector
Private bank Public bank

yes
29 15

no
27 20

May be
0 9 1

In case of public sector banks , the public dealing starts at 9 am and ends at 4 pm. It makes inconvienent sometimes , on the other hand private sector banks deals 8 am to 8 pm, 29 people out of 56 prefer private sector banks and only 15% give positive response to public sector banks.

6.Do they charge unnecessary for not maintaining minimum balance account?

(no. of people)

Banking sector
Private bank Public bank

yes
5 13

no
34 31

May be
17 0

Well the rules and regulations are tougher in private sector banks and are a little tougher they want to maintain 10,000 as a minimum balance in any account. They even charge penalties for small violations whereas in public sector branches they have more safe deposits and do not charge unnecessarily. SO customers prefer more to public sector banks

7.Do your bank offer competitive service charge?

(no. of people)

Banking sector
Private bank Public bank

yes
39 5

no
7 34

May be
10 5

In case of private sector banks the professional fees charges are more and in most cases they charge without the knowledge of customers. 39 customers give negative response to such extent that the private sector banks have hidden charges. But in case of public sector banks 34 customers believe that no such charges are leived on them.

8.Do they respond to your complaints and queries well in time?

(no. of people)

Banking sector
Private bank Public bank

yes
25 17

no
11 17

May be
20 10

Generally public sector banks do not care for customer awareness , they do not respond to any greviences and complaints with respect to customers. public sector banks even though they are little slow in their approach and not so Hi-tech programmed, they are traditional in nature, they trust in customer relations, know your customer norms, strictly adhere to the RBI Norms, some of the issues like motivating the staff, empowering the staff are concerned, it is high time and also better to update the staffs and employees of NATIONALISED and public sector banks to the required extent.

9.Does your bank update its website on regular basis?

(no. of people)

Banking sector
Private bank Public bank

yes
32 0

no
9 32

May be
15 12

Out of 56 % 32 people agree that private sector banks update their websites on regular basis because these banks refers to the customer service on the priority basis being rendered on a more personal basis than in mass-market . but in the case of public sector banks only 12 people say that it may provide such service.

10. Do the have the facility of branch banking?

(no. of people)

Banking sector
Private bank Public bank

yes
33 29

no
23 15

May be
0 0

Engaging in banking activities such as accepting deposits or making loans at facilities away from a bank's home office. Financial innovation such as internet banking will greatly influence the future of branch banking by potentially reducing the need to maintain extensive branch networks to service consumers. Multi Branch Banking facility is a value added service to our customers taking advantage of "Core Banking Solution". It is a 'technology driven-anywhere banking' facility and 'at par' facilities for Savings Bank and Current account with structured schedule of services and charges. Now the customer can access his account at all branches of the Bank.

11.Do they care to give you knowledge about new updation in system and facilities?
(no. of people)

Banking sector
Private bank Public bank

yes
34 10

no
22 32

May be
0 2

In private sector banks 34 %people agrees that their banks update their new system and facilities on their websites on regular basis , where as on the other hand public sector banks maximum no of people gave negative response to such service.
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12.Are you happy with the ATM facilities provided by our bank.
(no. of people)

Banking sector
Private bank Public bank

yes
40 25

no
16 19

May be
0 0

25% of the customers are using ATM banking in public sector banks and rest 19% people are not using because this service is not provided by their banks (e.g. Union Bank of India) whereas 100% of the customers are using ATM banking in private sector banks out of which 40% are satisfied; 16% people are not satisfied with the service.. This shows a very high rate of customer satisfaction level in Private sector banks

13.In case of credit cards, do your bank give you competitive credit limit and time?
(no. of people)

Banking sector
Private bank Public bank

yes
10 13

no
41 21

May be
5 10

Out of 56 people who opted for private bank, only 10% people agree that their bank provide time limit for credit cards ,where as 41 people has given a negative response over it. But maximum percent of people who opted for public bank responded same with respect to this question. This shows that the bank either it is a public banks or a private bank , people are not happy with such service.

14.Does your bank update your account transaction via SMS Alerts?
(no. of people)

Banking sector

yes

no

May be

Private bank Public bank

36 10

8 15

12 19

SMS banking is a technology-enabled service offering from banks to its customers, permitting them to operate selected banking services over their mobile phones using SMS messages. Out of 56- 36% people agree that private sector banks provide such service to customers. But in case of public sector banks only 10% people agree with the statement..

15.Do your bank provides you internet and mobile banking?

(no. of people)

Banking sector
Private bank Public bank

yes
44 17

no
12 23

May be
0 4

44% of the customers are using internet banking in private sector banks and all are satisfied with the service whereas in public sector banks only 17% people using such facility .The service is available on java enabled mobile phones where the user is required to download the application on to the mobile handset. They can have the facilities such as fund transfer, IMPS (INTER BANK MOBILE PAYMENT SERVICE) DEMAT enquiry. Bill Payment (Utility bills, credit cards, Insurance premium), Donations, Subscriptions. The Service is provided free of charge. SMS/GPRS cost will be borne by the customer.

16.Are you satisfied with the rate of interest in your bank?

(no. of people)

Banking sector
Private bank Public bank

yes
19 32

no
37 12

May be
0 0

A Bank's main source of income is interest. A bank pays out at a lower interest rate on deposits and receives a higher interest rate on loans. The difference between these rates represents the bank's net income. In such private banks have high rate of interest as compared to public sector banks. In public sector banks rate of
1

interest is determined only by RBI because these banks are controlled and regulated by RBI.

17.The service quality provided by our bank is as per your expectations?

(no. of people)

Banking sector
Private bank Public bank

yes
40 30

no
16 14

May be
0 0

18.Do you recommend your bank to friends , relatives and business associates?
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(no. of people)

Banking sector
Private bank Public bank

yes
48 40

no
8 4

May be
0 0

48% people prefer private sector banks , due to its vast technology, customer oriented people feel satisfied, where as on the other hand public sector sector banks is preferred only on the basis of security. So I feel that most of the customers will prefer to the private sector banks and will recommend the same to their friends and relatives.

19.Do your bank uses additional column of FAQ ( frequent asked questions)in their websites?
(no. of people)

Banking sector
Private bank Public bank

yes
20 10

no
21 30

May be
15 4

It has been observed that 20% people uses such FAQ service in private sector banks and 16 people agree that their bank is providing such service, where as 30people has given a negative response over it. But maximum percent of people who opted for public bank responded negatively with respect to this question. This shows that people trust more to private banks because such banks are technology oriented.

20.Do your bank really care for u?

(no. of people)

Banking sector
Private bank Public bank

yes
30 19

no
6 20

May be
20 5

The ability of the banking industry is to achieve its socio-economic objectives and in the process bringing more and more customers into its fold will ultimately depend on the satisfaction of the customers. I have a strong belief that a satisfied customer is the foremost factor in developing our business. A need was felt by Bank that in order to become more customer friendly the Bank should come out with charter of its services for
1

the customers. This document highlights Bank's commitments towards customer satisfaction, thus ensuring accountability and responsibility amongst our officials and staff. SO ,I personally fell that maximum number of people prefer private sector banks as compared to public sector banks.

DATA ANALYSIS:

100% of the customer of private sector banks is satisfied with the behaviour of the staff out of which 40% are very satisfied and 20% are highly satisfied. Whereas 68% of the customers of public sector banks are satisfied with the behaviour of the staff out of which 20% are very satisfied

28% of the customers are using internet banking in private sector banks and all are satisfied with the service whereas in public sector banks no customer is using the internet banking 80% of the customers are using ATM banking in public sector banks and rest 20% are not using because this service is not provided by their banks (e.g. Union Bank of India) whereas 100% of the customers are using ATM banking in private sector banks out of which 36 % are satisfied; 48% are very satisfied and 16% are highly satisfied. This shows a very high rate of customer satisfaction level in Private sector banks

In public sector banks 52% 0f the customers are satisfied and 28% are very satisfied with ATM banking whereas in private sector banks 48 % of the customers are very satisfied and 16% of the customers are highly satisfied with the service.

FINDINGS

Customer satisfaction level is higher in Private sector banks as compared with the Public Sector Banks.

Reasons of Dissatisfaction in Public sector banks

Behaviour and attitude of the staff in public sector banks is the first reason of customer dissatisfaction. Time taken to process the transaction is the second reason of customer dissatisfaction.
1

 Many of the services are not provided by the Public sector banks when compared with the Private sector banks e.g. ATM Banking is not provided by Union Bank of India. Internet Banking and Mobile banking is also not provided by many of the Public sector banks. Continuous services are not provided by ATM machines installed by various Public sector banks. They do not want to adopt the technology.

RECOMMENDATIONS

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

LIMITATIONS OF THE STUDY

This study is geographically restricted to Chandigarh city only. The sample size is small due to the specified reasons. Finding are based on sample survey through questionnaires method. Hence there is a scope for the respondents to be biased or pretentious

BIBLIOGRAPHY

C R Kothari Research methodology

P N VARSHNEY

BANKING

LAW AND

PRACTICE
A CASE STUDY

CUSTOMER SATISFACTION IN INDIAN BANKING: OF YAMUNA NAGAR D ISTRICT IN H ARYANA ARTICLE

SECTOR BY

ON CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING

DR FB SINGH

Article on Measuring Customer Satisfaction in

The Banking Industry By Dr Manoj Kumar Das

Internet websites: www.google.com www.rbi.gov.in www.iba.org.in satisfaction http://en.wikipedia.org/wiki/Customer_

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