CHAPTER 1 INTRODUCTION

1.1 AN OVERVIEW OF THE STUDY The modern concepts of marketing realized that measuring consumer needs or behavior was not enough. CONSUMER SATISFICATION should be the core and then the correct perception on which marketing policies of our organization should be built. Management must think of itself not as producing products but as providing customer creating value satisfaction. Customer satisfaction has a vital role in sustaining and improving hold on the market. Brief descriptions about the various measures that are needed to improve customer orientation have also been dealt with. Consider the fact todays customer face a plenitude of products in every category. Customer will be having high and raising expectation of quality and service. In the face of their vast choices, the customer will gravitate to the offering that the best meet their individual needs and expectation. They will buy one of the bases of their perception value. Therefore it is not surprising that todays winning companies are those succeed best in satisfying indeed delighting their target customer. They pay extreme attention to quality and service to meeting and even exceeding customer expectation. They complete vigorously and at the co-operated smartly with their strategy partners in their supply and distribution chain. They pursue efficiently and yet are responsible and flexible. Customer satisfaction is the outcome felt by buyers who have expectation. Customers are satisfied when their expectation are met and delighted when their expectations are exceeded. Satisfied customers remain loyal longer, buy more, and are less sensitive and talk favorable about the company. From this it is clear that the satisfied customer will be less sensitive towards the fluctuating price and offensive marketing typically cost more than defensive marketing, because it requires much effort and cost to induce satisfied customers to switch away from their current suppliers. We should also consider the fact that the cost of attracting a new customer may be five times the cost of keeping the current customer happy. Therefore the companies are intending in developing stronger bones and loyalty with their customers.
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1.1.1 MEANING OF CUSTOMER SATISFACTION

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 Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations.

1.1.2 BENEFITS OF CUSTOMER SATISFACTION

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 customer focused business or those running call centres 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 centres, the importance of developing a valued relationship with customers using CRM is essential to support customer and long-term business growth.

1.1.3 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 1. Expressed 2. Implied Expressed Customer Expectations are those requirements that are written down in 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
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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.

1.1.4 WHAT CONSTITUTES SATISFACTION? 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.

1.1.5 WHAT ARE THE TOOLS? 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.

1.1.6 CUSTOMER SATISFACTION SURVEYS

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 analysing 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 organizationthe 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)

1.2 OBJECTIVE OF THE STUDY 1.2.1 PRIMARY OBJECTIVE To study, analyze and evaluate the customer satisfaction level towards the different services rendered by the bank and to identifying the critical success factors. 1.2.2 SECONDARY OBJECTIVES 1. To evaluate the awareness level of the customer on the product and services. 2. To find out the differences among perceived service and expected service. 3. To evaluate the process efficiency in customer query and requirement handling 4. To understand consumers preferences. 5. To access the degree of satisfaction of the customers

1.3 SCOPE OF THE STUDY 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 study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking
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services, It also help banks to know whether the existing products or services they are offering are really satisfying the customers needs. 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 IOB In particular 1.4 NEED FOR THE STUDY 1. To identify the satisfaction level of customer towards different types of service attributes, by identifying their critical factors. 2. To study about the bank about their customized products and services, according to the consumers needed. 3. To study the experience and expectations of the existing customers. 4. To study to improve the current standards of services. 5. To study the scope of introducing new types of services. 6. To study about the business tactics followed to stand against the competitors.

1.5 RESEARCH METHODOLOGY 1.5.1 RESEARCH DESIGN A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of group of problems, people, or events. Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single Event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might provide.

This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.

1.5.2 SAMPLING Convenience sampling method is used for the survey of this project. It is a non-probability sample. This is the least reliable design but normally the cheapest and easiest to conduct .In this method Researcher have the freedom to choose whomever they find, thus the name convenience. Example includes informal pools of friends and neighbors or people responding to a newspapers invitation for readers to state their position on some public issue.

1.5.3 SAMPLE SIZE Sample size denotes the number of elements selected for the study. For the present study, 100 respondents were selected at random. All the 90 respondents were the customers of IOB in kolathur Branch 1.5.4 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.

1.5.5 QUESTIONNARIE DESIGN

The questionnaire consists of 2 types of questions. 1. open ended 2. Closed ended. OPEN ENDED QUESTION This refers to a question that has no fixed alternatives to which the answer must confirm. The respondent answers in his own words and at any length they choose. CLOSED ENDED QUESTION It contains those questions in which the respondent is given a limited number of alternatives responses from which he/she is to select the one that most closely matches his attitude.

The fixed alternative questions may be taken in the form of 1. Dichotomous questions 2. Multi-choice questions

Dichotomous questions It refers to one, which offers the respondent a choice between only 2 alternatives and reduces the issues to its simplest terms. Multi-choice questions A multiple-choice question refers to one, which provides several set of alternatives. Multiple-choice questions can be used when an issue has more than two aspects.

1.5.6 METHOD OF DATA COLLECTION

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 askedto 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.

PRIMARY DATA Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data. SECONDARY DATA Secondary data are those, which have already been collected by some other persons for their purpose and published. Secondary data are usually in the shape of finished products. Two types of secondary data were collected for the preparation of the project work: Internal Data was generated from companys brochures, manuals and annual reports External Data, on the other hand, was generated from magazines, research books, intranet and internet (websites).

1.5.7 TOOLS USED FOR ANALYSIS OF DATA

1. Simple percentage analysis 2. Weighted score method 3. Chi- square analysis

SIMPLE PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio percentage are used to describe relationship. Percentage= No. of. Customers Total No. of Customers x 100

WEIGHTED AVERAGE METHOD

In weighted score method the weights are obtained by multiplying the rating given with the frequency, this gives a very basic idea as to the factor carrying highest to lowest weight. Weighted average= Rating * Frequency Total No. of Respondents

CHI- SQUARE ANALYSIS 2 test was first used by Karl Pearson for testing the significance of discrepancy between the experimental values and the theoretical value obtained under theory of hypothesis. This test is known as chi- square test of goodness of fit. Karl Pearson proved that the statistic. 2- (oi-Ei)2

Ei
Ei = Column Total x Row Total Grand Total Where: Oi refers to the observed frequency Ei refers to the expected frequency

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CHAPTER 2 PROFILES
2.1 INDUSTRY PROFILE 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 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. The description along with a list of scheduled commercial banks are given on this page

2.1.1 HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades Indias banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitansor cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth
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process. Governments regular policy for Indian bank since 1969 has paid richdividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dials a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786.From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. IN 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.
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During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1 1949: Enactment of Banking Regulation Act. 2 1955: Nationalization of State Bank of India. 3 1959: Nationalization of SBI subsidiaries. 4 1961: Insurance cover extended to deposits. 5 1969: Nationalization of 14 major banks. 6 1971: Creation of credit guarantee corporation. 7 1975: Creation of regional rural banks. 8 1980: Nationalization of seven banks with deposits over 200 corers. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimha, a committee was set
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up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

2.1.2 SCHEDULED COMMERCIAL BANKS IN INDIA The commercial banking structure in India consists of: 1 Scheduled Commercial Banks in India 2 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 of1980), 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. on-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of1949), which is not a scheduled bank".

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The following are the Scheduled Banks in India (Public Sector):

1 State Bank of India 2 State Bank of Bikaner and Jaipur 3 State Bank of Hyderabad 4 State Bank of Indore 5 State Bank of Mysore 6 State Bank of Saurashtra 7 State Bank of Travancore 8 Andhra Bank 9 Allahabad Bank 10 Bank of Baroda 11 Bank of India 12 Bank of Maharashtra 13 Canara Bank 14 Central Bank of India 15 Corporation Bank 16 Dena Bank 17 Indian Overseas Bank 18 Indian Bank 19 Oriental Bank of Commerce 20 Punjab National Bank 21 Punjab and Sind Bank 22 Syndicate Bank 23 Union Bank of India 24 United Bank of India 25 UCO Bank 26 Vijaya Bank

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The following are the Scheduled Banks in India (Private Sector) 1 ING Vysya Bank Ltd 2 Axis Bank Ltd 3 Indus Bank Ltd 4 ICICI Bank Ltd 5 South Indian Bank 6 HDFC Bank Ltd 7 Centurion Bank Ltd 8 Bank of Punjab Ltd 9 IDBI Bank Ltd

2.1.3 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 in India. With stiff competition and advancement of technology, the services provided by banks have 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. Thissection of banking deals with the latest discovery in the banking instruments along with the polished version of their old systems.

2.1.4 BANK ACCOUNT The most common and first service of the banking sector. There are different types of bank account in Indian banking sector. The bank accounts are as follows: Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI) from time to time) Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.

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 Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies /Trusts, etc. Bank Account Online - With the advancement of technology, the major banks in the public and private sector has facilitatedtheir customer to open bank account online. Bank account online is registered through a PC with an internet connection. The advent of bank account online has saved both the cost of operation for banks as well as the time taken in opening an account.

2.1.5 PLASTIC MONEY Credit cards in India are gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970.Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.

2.1.6 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: Personal Loan Car Loan or Auto Loan Loan against Shares Home Loan Education Loan or Student Loan In Personal Loan, one can get a sanctioned loan amount between Rs25, 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.
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Car loan / auto loan are sanctioned to the extent of85% upon the ex-showroom price of the car with some simple paperworks 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. AgainSBI, ICICI, HDFC, HSBC are leading. The educational loan, rather to be termed as student loan, is a goodbanking product for the mass. 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.

2.1.7 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 atype of Telegraphic Transfer or Tele Cash Orders. It has been only a couple of years that banks have jumped into themoney transfer businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through2009.

2.1.8 FUTURE OF BANKING IN INDIA 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
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foresee major future banking trends, based on these past and current movements in the market. 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 reality with new-age banks such as YES Bank, and others too adopting 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 bethe key to success will be a better relationship management.

2.1.9 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 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.

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2.2 BANK PROFILE

Indian Overseas Bank (IOB) established on 10th February 1937 by Mr. M. Ct. M. Chidambaram Chettiyar, leader in banking, insurance and industry areas, IOB had the twin aims of attaining specialization in overseas banking as well as foreign exchange business. IOB has always been talked about for its excellent presence and services. At the time of inauguration, IOB started its business in three branches at the same time. The branches were located at Karaikudi and Chennai in India and Rangoon in Myanmar, erstwhile Burma. It had a branch in Penang also. During the time when India became an independent nation, Indian Overseas Bank was running 38 branches in India and 7 overseas branches. At that point of time, the Deposits of the bank was Rs.6.64 corer and Advances was Rs.3.23 corer IOB received the status of nationalized bank in the year 1969 along with other 13 major banks. By this time, it had 195 branches. Gradually between the periods 1969 and 1992, IOB started spreading its wings in foreign destinations like Colombo and Seoul. IOB was the first bank to receive ISO 9001 Certification from Det Norske Verities (DNV), Netherlands in the month of September 1999 for its Computer Policy and Planning Department. Besides, in its journey, it has won many awards and accolades too. These include:
1.

NABARD's award 2000-2001 for creating maximum number of credit links of Self Help Groups in comparison to all the other Banks in Tamil Nadu

2.

Best Award under the category of Banking Technology in the year 2001.

2.2.1 BRANCH PROFILE (IOB kOLATHUR)

Kolathur is also one of the important branches in Chennai. kolathur branch has more than 28000 account is there and also issuing pension like Chennai co-operation, Port trust, Govt. Hospitals, railways, MTC, PWD, Tele-communication department etc. this service is offering from 35years ago. Totally 10 staff working for that branch, Foreign exchange dealing is done here. All type of loans is provided here. Locker, DD, BC, gold coins etc., are the facilities given here.
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2.2.2 INDIAN OVERSEAS BANK

IOB is a one of the major bank based in Chennai with over 1400 domestic branch & 6 branches in Abroad. The bank was established in 1937 to encourage overseas banking for foreign exchange operation. The bank started simultaneously with 3 branches there are;
1. 2. 3. 4. 5. 6. 7.

Indian overseas bank Chennai Indian overseas bank Rangoon Indian overseas bank Singapore Indian overseas bank Burma Indian overseas bank Malaysia Indian overseas bank Srilanka Indian overseas bank Sumatra

In the year 2000 I.O.B engaged India in IPO which brought the Govt. share in the bank down to 75%.

2.2.3 IOB International expansion

1.

1937-38: As mentioned above, IOB was international from its inception with branches Indian Overseas Bank Rangoon, Indian Overseas Bank Penang, and Indian Overseas Bank Singapore.

2.

1941: IOB opened a branch in Malaya that presumably closed almost immediately because of the war.

3. 4. 5. 6. 7. 8.

1946: IOB opened a branch in Ceylon. 1947: IOB opened a branch in Bangkok and re-opened others. 1948: United Commercial Bank (see below) opened a branch in Malaya. 1949: IOB opened a branch in Bangkok. 1963: The Burmese government nationalized IOB's branch in Rangoon. 1973: IOB, Indian Bank and United Commercial Bank established United Asian Bank Berhad. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited
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foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch. The Baharat Overseas Bank is the only private bank that the Reserve Bank of India has permitted to have a branch outside India. The ownership was: Indian Overseas Bank (30%), Bank of Rajasthan (16%), Vysya Bank (14.66%), Federal Bank (19.67%), Karur Vysya Bank (10%), South Indian Bank (10%) and Karnataka Bank (8.67%). Bharat Overseas serves the Indian ethnic community in Thailand.
9. 10.

1977: IOB opened a branch in Seoul. 1991: Bank of Commerce (BCB), a Malaysian bank, acquired United Asian Bank (UAB). In 1999 BCB merged with Bank Bumiputra Malaysia to form BumiputraCommerce Bank Berhad.

Indian overseas bank has being operated in Malaysia since 1941, and united commercial bank limited has been operated since 1948. The bank has being set up united Asian company with banking law in Malaysia, which prohibited foreign Govt. Bank from

operating in the county. Also I.O.B and other six bank Indian private bank etc. Bharath overseas banks as Chennai based private bank to take over I.O.B Bangkok branch. The bharath overseas bank is the only private bank, which the reserve bank of India has permitted to have a branch out side India. The ownership was,
1. 2. 3. 4. 5. 6. 7. 8. 9.

Indian overseas bank (30%) Bank of Rajasthan (18%) Vysya bank (14.66%) Federal bank (19.67) South Indian bank (10%). Karnataka bank (8.67%). Bharath overseas bank the Indian ethic community in Thailand. In 1977 I.O.B opened a branch in Seoul. 1991 bank of commerce (BCB) a Malaysian bank (U.A.B) in 1999 BCB merged with bank Brahmaputra Malaysia.
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2.2.4 FUNCTIONS OF INDIAN OVERSEAS BANK

1. 2.

Its accept deposits from the public. It lends money to the needy people, for having loans, jewels loans & for the customer durable goods.

3. 4.

Bank issue Cheque. It deals in the bill of exchange, dies, promissory notes, coupons, draft, and bill of lending, railway receipts, warrants, certificates, scripts & other securities weather transferable or negotiable.

5.

It acts as agent for remittance of money on behalf of government, municipality, local board, Insurance Corporation & other.

6.

It grants & issue letter of credit travelers Cheque & circular notes.

2.2.5 PRODUCTS & SERVICES IOB Bank offers wide variety of Deposit Products to suit your requirements. Coupled with Convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, IOB Bank brings banking at your doorstep. Select any of our deposit Products and provide your details online and our representative will contact you for Account Opening.

2.2.6 DEPOSITS
1. 2. 3. 4. 5. 6. 7.

Saving Bank Deposits No Frills SB Accounts Current Account Fixed Deposit Reinvestment Deposit Recurring Deposit Account Annuity Deposit Plan
23

8. 9. 10.

Multiple Investment Scheme Cumulative Benefit Deposit Multiple Deposit Account

2.2.7 SAVING DEPOSIT In this type of deposit the depositor can deposit & withdraw whenever he is in need of money. The depositor can also have Cheque book facility by maintain a balance of Rs.500/-, in the account any person can deposit on behalf of the account holder can withdraw the amount.

2.2.8 FIXED DEPOSIT Fixed deposit can be accepted for 30 days to 37 months and at various interest rates, while depositing money in a fixed. The customer received a deposit receipt which is usually market NOT NEGOTIABLE the deposit is repayable on demand & after the maturity period.

2.2.9 RECURRING DEPOSITS Deposits received for 6 months to a maximum of 10 years as monthly fixed installment. The amount saved and interest compounded at quarterly intervals paid at the time of maturity. In case of monthly installments exceeding Rs.25000 a maximum period is restricted to 3 years. 2.2.10 SPECIAL FIXED DEPOSITS Deposits accepted for 6 months to 10 years. Interest payable every quarterly or monthly. Monthly interest is payable @ discount rate. 2.2.11 RE-INVESTMENT DEPOSITS Deposits accepted for 6 months to 10 years. Interest compounded quarterly and at the time of maturity in case of deposits Rs. 15 lakhs maximum period is restricted to 3 years.
24

2.2.12 GRANTING LOANS AND ADVANCE Lending is one of the primary functions of co- operative bank, some of the method of lending are.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Personal Loan Car Loan Commercial Vehicle Loan Corporate Loans Housing Loan Home Improvement Loan Educational Loan NRI Home Loans Agricultural Loans Finance For Small, Medium And Large Enterprises

2.2.13 PERSONAL LOANS Individual in employment, professional, self-employed not over 55 years of age is eligible for personal loan to buy consumer durable such as electric, electronic goods metals and wooden furniture etc. the minimum loan is 5 times the gross salary or 90% if the cost so the article whichever is less.

2.2.14 PUSHPAKHA (CAR LOAN) Car finance for purchase of new as well as used car and two wheelers 90% of a cost of new car and two wheeler and 75% cost of old car two wheeler or financed against hypothecation of vehicles. Repayments of 60 EMI for new car and 36 EMI for old car

25

2.2.15 COMMERCIAL LOAN Range of services on existing loans & extended products like funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product, working capital loans & other banking products. 2.2.16 SUBHA GRUHA Home loans scheme for residents individual up to Rs. 50 lakhs repayable in 20 years for purchase construction of new/old house flats in the case of fixed rate opinion the maximum repayment period is 10 years.

2.2.17 HOME IMPROVEMENT SCHEMES Loans schemes for repairing / renovation/up gradation of existing houses to individuals in service, profession, trade. Loan up to Rs.5 lakhs repayable in 120 EMI with a holiday of months.

2.2.18 VIDYA JOTHI EDUCATION LOAN SCHEME Loans schemes and student education in abroad loan amount Rs. 7.5 lakhs study in abroad. 2.2.19 LIQUIRENT Loan schemes for owners of building let out to banks, corporates MNCs finance is provided against future rent visible.

2.2.20 FARM EQUIPMENT LOANS Preferred financier for almost all leading tractor manufacturers in the country. Flexible repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1 year to 9 years

26

2.2.21 CREDIT CARDS IOB Bank Credit Cards give you the facility of cash, convenience and a range of benefits, anywhere in the world. These benefits range from life time free cards, Insurance benefits, global emergency assistance service, Discounts, utility payments, travel discounts and much more.

2.2.22 DEBIT CARDS The IOB Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The IOB Bank Debit Card can be used for shopping at more than 100,000 Merchants in India and 13 million merchants worldwide.

2.2.23 TRAVEL CARD Presenting IOB Bank Travel Card.The Hassle Free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take IOB Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card.

2.2.24 PRE PAID CARDS IOB Bank brings to you a complete bouquet of pre-paid cards providing payment solutions at your fingertips. IOB Bank pre-paid cards are a safe & Convenient way for associate payments, disbursements, gifting & small ticket transactions. Pre-paid cards are available on a VISA platform thus providing accessibility to over one lakh merchant establishments & cash withdrawal from all VISAS.

2.2.25 IOB BANK PURE GOLD Gold has been traditionally the most favored form of investment for Indians. In fact, India, even today is amongst the highest customers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country. IOB Bank with its `Pure Gold' offer attempts to bridge the gap between the need of the customers for buying gold and availability of an
27

organized avenue to satisfy that need, by taking care of the two key components Reliability and Convenience. Reliability 24 Carat IOB Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest level of purity, as per international standards. IOB Bank Pure Gold is competitively priced based on daily prices in the international bullion market. Currently, gold is available in 2, 4, 8, 20, 50,100gms. 2.2.26 FOREIGN EXCHANGE DEALINGS The foreign exchange management act.1999 defines: Foreign exchange means foreign currency and includes--1. Deposits, credits and balances payable in any foreign currency. 2. Drafts, travelers Cheque, letters of credit or mills of exchange, expressed or drawn in Indian currency but payable in any foreign currency; 3. Drafts, travellers Cheque, letters of credit or bills of exchange drawn by banks, intuitions or persons outside India, bit payable in Indian currency. Thus, foreign exchange includes foreign currency, balances kept abroad, and instruments payable in foreign currency, and instruments drawn aboard but payable in Indian currency. Foreign exchange is the mechanism by which the currency of one country gets converted into the currency of another country. Foreign exchange plays an important role in international trade. The conversion of currencies is done by banks who deal in foreign exchange. These banks maintain stocks of foreign currencies in the form of balances with banks abroad. 2.2.27 OTHER LOANS The bank providing personal loans for purchasing television, refrigerator other house hold article. There also offering loans to small scale industry, self-employed person & transport operators.

28

2.2.28 NRI ACCOUNTS

1. 2. 3. 4. 5. 6. 7. 8. 9.

Non-Resident Ordinary (NRO) Resident Foreign Currency Account (RFC) Foreign Currency Non-Resident Accounts (Banks) NRI home loan scheme NRI remittances Remittances procedures Tracking cell Forward cover IOB NRI shield Gold Card

10.IOB Expo

2.2.29 Corporate Banking

1. 2. 3.

Micro Small and Medium Enterprises (MSME) IT & BPO Cash management services -IOB STARS

2.2.30 Rural
1. 2. 3. 4.

IOB's commitment for social causes Agricultural short time loans Financial inclusion Agri business consultancy

29

2.2.31 OTHER SERVICES AND PRODUCTS

1. 2. 3. 4. 5. 6. 7.

VISA International Credit Cards VISA Debit Card IOB Fine Gold Real Time Gross Settlement (RGTS) Forex Collection Services Agriculture and Business Consultancy Service Investment options like Mutual Funds and Shares

2.2.32 SECONDARY FUNCTION OF THE BANK 1. Secondary function refers to the various axillary service rendered by the bank 2. Safety locker 3. Clearing of bills 4. Axillary service 5. Overdraft of weavers 6. Financial analysis for PDS 7. Issue of DD 8. Refinance for product loan 9. Issue of BC

2.2.33 IOB CREDIT CARD 1. Weiver of annual / entry fee ( life time) 2. International card affiliated to VISA 3. Roll over facilities with repayment of 10 % of the outstanding amount 4. Lowest interest @ 24% (analyzed) for the roll over credit 5. Free credit card period up to 50 days from the date of purchase. 6. Enhanced insurance coverage such as personal, accident, baggage, purchase, protection, etc.
30

7. Add on car facilities to the family members. 8. Lowest service charges @ 2.25% on the cash payment. 9. Facilities to draw cash at over 15000 ATMs in India and over 8.7 lakhs ATMs worldwide. 10. Payment for fee to foreign institution 11. Reward point are redeemed and credited to the account.

2.2.34 INSURANCE LINKED RETAIL PRODUCTS 1. 2. 3. 4. 5. 6. IOB jeevan Health care plans Vidya suraksha Vidya jothi with suraksha Liability insurance for retail loans. NRI shield

2.2.35 MUTUAL FUND DISTRIBUTIONS

1. 2. 3. 4. 5. 6. 7. 8. 9.

Franklin Templeton limited Tata mutual funds ITC mutual funds Sundram BWP Paribas funds Principle IOB AMC (I) limited Kotak mutual funds Standard charted mutual funds ICICI prudential mutual funds UTI mutual funds

2.2.36 GOVERNMENT BUSINESS 1. E-Payment of direct taxes 2. E-Payment of indirect taxes 3. Pension payment scheme
31

4. Sales tax collections 5. Provident Fund Scheme 1968 6. 8percent savings taxable bond scheme 7.Senior citizen scheme 2004

2.2.37 SERVICE AVAILABILITIES AT FREE OF CHARGES 1. CBS transaction 2. Insurance, revenue, annual, free for ATM cards 3. No frill account, no minimum balance changes and additional deduction of names in deposits 4. Verification in nomination 5. Closure of A/c SB /CDCC 6. Charges in operation of CDCC 7. Duplicate deposit receipt 8. No due certificate 9. Cancelation of DD / BC 10. Balance enquire by using ATM cards 11. Inward remittance through NEFT/ RTGS

32

CHAPTER 3 REVIEW OF LITERATURE 3.1 RESEARCH REVIEW

1. According to Anne-Birte Stensgaard Senior News Editor, June 20-2006 states that the new insurance product is an arrangement between the United India Insurance Company Limited and the IOB that provides Insurance cover for NRIs under the scheme - IOB NRI Shield. The scheme covers NRIs during their stay in India, up to a maximum of 180 days a year. NRIs during their visit to India find Insurance a prerequisite to meet their contingencies arising out of ailments, accidents, baggage loss and other perils like fire etc. This scheme will meet all the Insurance requirements of the NRIs and covers varied risks anticipated during their stay in India. All IOB bank account holders who desire to participate in this insurance scheme can avail the facility at UAE Exchange outlets - an extensive network in the UAE - to pay their premium amounts. On the occasion of the launch, Mr. T S Narayanasami, Chairman and Managing Director of Indian Overseas Bank said, "IOB which is a 69 years old bank has adapted successfully to the emerging trends by introducing new products and services in financial sector. The Bank's power of performance has stemmed from customer-centric business ethos, relentless IT initiatives and policy focus." "Though we have association with many exchange companies in Gulf area, our association with UAE Exchange Centre, UAE dates back to more than 25 years," added Narayanasami.

2. According to PR Newswire LONDON, October 9, Indian Overseas Bank in Singapore has selected integrated core banking solution, Misys Midas Plus, to introduce new products and client services to support business expansion, deliver new levels of customer satisfaction and improve operational performance while enabling market leading international standards in accounting and regulatory compliance & controls. Indian Overseas Bank was the first India based bank to commence operations in Singapore more than 60 years ago and provides a comprehensive range of banking

33

services; specializing in retail banking, trade finance and a wide range of remittance facilities to India

3. According to Lassar, Walfried M., Manolis, Chris, Winsor, Robert December 5 2000, state that In the Seroquel Scale is the principal instrument in the services marketing literature for assessing quality. The Technical/Functional Quality Framework is also a widely accepted model on service quality. However, the ability of either to predict customer satisfaction has not been looked into. Relating to the private banking industry, the Technical/Functional Quality Framework was found to be more suited to predicting customer satisfaction.

4. According to Powpaka, Samart October 19 1996 Statethat the influence of outcome quality on customers' perceptions of overall service quality are studied. Results show that outcome quality has a strong influence on customers' overall service quality assessment. Outcome quality is also most important in services with search and experience outcome quality attributes. A model to enable marketing managers to evaluate customers' perceptions of service quality is also discussed. 5. According to Lee, Haksik, Lee, Yongki, Yoo, Dongkeun March 24 2002 State that the Performance as perceived by customers rather than the difference between that perception and the customer's prior expectations explains more the variation in service quality. It is the customer's satisfaction that leads to perceived quality of service rather than the reverse. More emphasis on responsiveness is expected to be placed on people-based services than on equipment and facility based services. 6. According to Robert W. Armstrong, Tan Boon Seng September 2 2005 state that Extends the current understanding of customer satisfaction at the business-to-business level in the Asian banking industry. The main thrust of the paper is an attempt to conceptualize a comprehensive model of satisfaction at the business-to-business level incorporating guanxi (Chinese business relationships), relationship marketing and the disconfirmation paradigm. The essence of the research highlighted the importance of
34

relational constructs, in addition to the disconfirmation paradigm, in impacting customer satisfaction at the business-to-business level in the Singapore banking industry. At the business-to-business level in the Asian context, the disconfirmation paradigm is still the predominant paradigm influencing the customer satisfaction process. Relationship marketing and guanxi are significant in our comprehensive model of corporate-customer satisfaction. Relationship marketing was found to have both a direct and an indirect impact (through disconfirmation) on corporate-customer satisfaction. Guanxi was found to exert an indirect impact on satisfaction as opposed to the initial hypothesized direct impact on satisfaction.

7. According to Luis Moutinho, Douglas T. Brownie November 24 2008 State that the nature and direction of the satisfactions that are delivered to customers of bank services are explored, and the criteria used to evaluate these services are highlighted. The nonmetric multidimensional scaling technique enabled respondents' perceptions to be represented spatially. It is revealed that respondents had high levels of satisfaction with regard to the location and accessibility of branches and ATMs, and acceptance of the current levels of banking fees; but expressed some caution in their evaluation of new and improved services.

8.According to U.S. Bank June 2 -2008 State that the MINNEAPOLIS - (Business Wire) U.S. Bank customers are increasingly loyal and satisfied, and they consider U.S. Banks services to be of high quality and value according to the American Customer Satisfaction Index (ACSI) research conducted in the fourth quarter of 2009. U.S. Bank surpassed industry averages and topped the four largest banks in the country in customer satisfaction, customer expectations, perceived quality, perceived value and customer loyalty.U.S. Bank scored 77 in overall ACSI customer satisfaction, compared to the next highest reported score of 73 and the industry average of 75. U.S. Bank exceeded reported industry averages in the important categories of loyalty, quality and value by seven or more points.

35

Weve experienced a flight to quality for many months, and now these results are evidence of our success," said Richard Davis, chairman, president and chief executive officer of U.S. Bancorp. Our company has been a source of strength and stability and as these scores demonstrate, customers are taking notice. At U.S. Bank, they find high quality service and value, and perhaps most importantly, our customers are very loyal. As now the fifth largest commercial bank in the United States with the fourth largest branch network, we are very pleased with our results, and we know that this positive momentum is just the beginning. We are focused on customer loyalty with a number of new programs aimed at moving us from very good to great. ACSI independently surveys customers of the largest companies in consumer goods and services industries. U.S. Bank has engaged ACSI to survey its retail customers over the last several years and continues to improve its scores.

9. According to D.M. Mahaptra The business line April 11 - 2008(page4) State that 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).

10. According to M. SadiqSohail and Balachandran Shanmugham march 23 -2003 State that
36

the paper examines the current trends in the e-commerce revolution that has set in motion in the Malaysian banking sector and reports on an empirical research that was carried out in Malaysia to study the customers preference for electronic banking and the factors, which they considered influenced the adoption of electronic banking. Results based on the analysis of data relating to 300 respondents indicate that while there is no significant differences between the age and educational qualifications of the electronic and conventional banking users, some differences exists on other demographic variables. Analysis further reveals that accessibility of Internet, awareness of e-banking, and customers reluctance to change are the factors that significantly affected the usage of ebanking in Malaysia. The paper discusses on the implications of these. Limitations of the study are highlighted and further research directions are suggested.

11. According to Stellenbosch London March 12 - 2004State that the Measuring user satisfaction with information systems has attracted widespread research attention, given it is often used as an indicator of success. The Internet has allowed applications to be extended to customers of an organization, where interaction can take place through a web site, typically from home or office. The focus of attention with such applications is customer satisfaction. In this research, a 21-item, 7-factor instrument developed to measure customer satisfaction with web sites that market generic digital products and services was modified slightly, and then empirically tested and validated in the context of Internet banking specifically. A 19-item, 5-factor validated instrument emerged, the factors being Customer Support, Security, Ease of Use, Transactions and Payment, and Information Content and Innovation. The difference in number of factors as compared to the generic instrument was attributed to the unique nature of Internet banking web sites. These and other findings are discussed in the paper, and their implications examined.

12. According to Pratap K.J. Mohapatra January 19 -2009 State that The article examines whether service quality of Indian commercial banks increases customer satisfaction that fosters customer loyalty. Data were collected from 350 valued customers of scheduled commercial bank branches in Orissa (India). A questionnaire
37

elicited information on sociodemographic variables along with human, technical, and tangible aspects of service quality, customer satisfaction, and loyalty. Results suggest that better human, technical and tangible aspects of service quality of the bank branches increase customer satisfaction. Human aspects of service quality were found to influence customer satisfaction more than the technical and tangible aspects. Customer satisfaction furthers customer loyalty. Increase in service quality of the banks can satisfy and retain customers. In the Indian banking sector, human aspects are more important than technical and tangible aspects of service quality that influence customer satisfaction and promote and enhance customer loyalty.

13. According to Megha Trivedithe Economics times December 7 2009 (Page 7) State that the Customer satisfaction has become a major source of concern in retail banking business. With exceptional progress in the establishment of banks in India, banks are increasingly interested in retaining existing customers and targeting new customers. In this paper, it is proposed that quality of service is an indicator of customer satisfaction. Measuring service quality involves objective feedback about existing customers of ICICI bank with respect to their expectations and services offered. Performance of a bank may be evaluated with regard to a set of satisfaction parameters that indicate the strengths and weaknesses of an organization. Standard scale of SERVQUAL developed by Parasuraman et al. has been used to conduct the survey. This study is based on five overall dimensions of customer satisfaction with services provided by ICICI. The five dimensions used to measure service quality are tangibility, reliability, responsiveness, assurance and empathy. This study gives useful insights to boost customer satisfaction towards ICICI.

14. According to RajKumar the Hindu Aug 7 2008 State that 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
38

challenges (1). Banking is a customer oriented services industry, therefore, the customer is the focus and customer service is the differentiating factors (2). 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 (3). 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 (4) 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 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 less than one roof and their endeavor is to be customer centric (5). 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.

39

CHAPTER 4 DATA ANALYSIS & INTERPRETATION DATA ANALYSIS

Analysis is the process of placing the data in an ordered form, combining them with the existing information and extracting the meaning from them. In other words analysis is an answer to the questions what message is conveyed by each group of the data which are otherwise raw facts are unable to give meaning full information. A raw data become an information only when they are analyzed and put in a meaning form.

INTERPRETATION
Interpretation is a process of relating various bits of information to existing information. Interpretation attempts to answer well, what relation existing between the findings to research objectives and hypothesis framed for the study in the beginning.

FORMULAE APPLIED FOR THE FOLLOWING METHODS

4.1 SIMPLE PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio percentage are used to describe relationship.

Percentage=

No. of. Customers x 100 Total No. of Customers

4.2 WEIGHTED AVERAGE METHOD

In weighted score method the weights are obtained by multiplying the rating given with the frequency, this gives a very basic idea as to the factor carrying highest to lowest weight.

Weighted average=

Rating * Frequency Total No. of Respondents

40

4.3 CHI- SQUARE ANALYSIS

2 test was first used by Karl Pearson for testing the significance of discrepancy between the experimental values and the theoretical value obtained under theory of hypothesis. This test is known as chi- square test of goodness of fit. Karl Pearson proved that the statistic.

2- (oi-Ei)2

Ei
Ei = Column Total x Row Total Grand Total

Where: Oi refers to the observed frequency Ei refers to the expected frequency

41

TABLE 4.1 HOW DO YOU KNOW IOB

SL. NO HOW YOU KNOW IOB NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Advertisements Friends & Relatives Awareness Direct Selling Agents Total

20 51 18 1 90

22.2% 56.6% 20% 1.1% 100%

CHART NO 4.1

HOW YOU KNOW IOB

80 60 40 20 0 56.6% 22.2% 20% 1.1% Advertisements Friends & Relatives Awareness Direct Selling Agents

INTERPRETATION: From the above table it could be inferred that 56.6% of the consumers are referred by friends & relatives for the best service offered by IOB. Only 1.1% of consumers are came by direct selling agents
42

Most of the respondents tell they are referred by their friends and relatives. Where very few came by the advertisements and the awareness created by the bank. Very less in count are generated by direct selling agents.

43

TABLE 4.2 TYPE OF ACCOUNT TO OPERATE WITH BANK

SL. NO ACCOUNT TYPE NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Saving Account Current Account Fixed Deposit NRI Account

25 23 22 20

27.7% 25.5% 24.4% 22.2%

CHART NO 4.2

Account Type
30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 27.7% 25.5% 24.4% 22.2% Saving Account Current Account Fixed Deposit Saving Account NRI Account Current Account Fixed Deposit NRI Account

INTERPRETATION: From the above table it could be inferred that 27.7% of the customers are choosing savings account and very few of about 22.2 prefer NRI Account. Most of the respondents are preferring savings account. Presently the bank offers varieties of account services to the customer.
44

TABLE 4.3 IOBs VALUE ADDED SERVICE

SL. NO VALUE ADDED SERVICE NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Youngster Senior Citizen Prepaid Cards Recurring Deposit Total

12 47 24 7 90

13.3% 52.2% 26.6% 7.7% 100%

CHART NO 4.3

VALUE ADDED SERVICE

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 26.6% 13.3% 7.7% Youngster Senior Citizen Youngster Senior Citizen Prepaid Cards Recurring Deposit Prepaid Cards Recurring Deposit 52.2%

INTERPRETATION From the above table it could be inferred that 52.2% of the customers are using senior citizen service and only 7.7% are using recurring deposit scheme. Most of the respondents are utilizing the value added service as senior citizen accounts. But rarely very few people are choosing recurring deposit account.

45

TABLE 4.4 Product Ratings of IOB from Others

SL. NO PRODUCT RATING NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Excellent Good Better Poor Total

16 52 20 2 90

17.7% 57.7% 22.2% 2.2% 100%

CHART 4.4

Product Rating
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Excellent 17.7% 22.2% Good Better 2.2% Excellent Good Better Poor 57.7%

Poor

Interpretation: From the above table it could be inferred that 57.7% of the customers rate IOB products as Good. Only 2.2% of the people Rate IOB products as Poor. Most of the respondents are rating the products as good. Moderate peoples are rating as excellent. Only few people in the customers are rating the IOB products as poor.
46

TABLE 4.5 Relationship with IOB

SL. NO IOB ACCOUNT OPERATIONS NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

< 1 Year 1-5 Years 5-10 Years >10 Years Total

17 45 17 11 90

18.8% 50% 18.8% 12.2% 100%

CHART NO 4.5

IOB ACCOUNT OPERATIONS

50% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% < 1 Year 1-5 Years 5-10 Years 18.8% 18.8% 12.2% < 1 Year 1-5 Years 5-10 Years >10 Years >10 Years

INTERPRETATION From the above table it could be inferred that 50% of the customers are having relationship with the bank for about 1-5 years. Only 12.2% of customers are having more than 10 years of relationship with IOB. Most of the respondents are satisfied with the service offered by IOB. Presently the bank has more customers who have the account with them for more than a year and less than 5 years.
47

TABLE 4.6 PURITY OF GOLD OFFERED IN IOB

SL. NO GOLD PURITY IN IOB NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

100% 99.99% 99% 99.9% Total

1 60 9 20 90

1.1% 66.6% 10% 22.2% 100%

CHART NO 4.6 GOLD PURITY IN IOB

80.00% 60.00% 100% 40.00% 20.00% 0.00% 100% 99.99% 99% 1.1% 10% 22.2% 99.99% 99% 99.90% 66.6%

99.90%

INTERPRETATION From the above table it could be inferred that 66.6% of the customers believe that the gold offered by the IOB are 99.99% pure. Only 1.1% thinks that the purity of good offered by IOB is 100%. Most of the respondents have the clear idea on the purity of the gold. Since gold cannot offered in 100% pure it is said to be in 99.99% pure.
48

TABLE 4.7 Facility Level of IOB

SL. NO FACILITY LEVEL NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Excellent Good Satisfactory Poor Total

27 33 23 7 90

30% 36.6% 25.5% 7.7% 100%

CHART NO 4.7 FACILITY LEVEL

40% 30% 30% 20% 10% 0% Excellent Good Satisfactory 7.7% 25.5% Excellent Good Satisfactory Poor 36.6%

Poor

INTERPRETATION From the above table it could be inferred that 36.6% of the customers are satisfied with the service and quality of products of their bank. Only 7.7% of customers are says poor facility in IOB. Most of the respondents say IOB offering good facility to its customer. But to the other end few people says the facilities are less.
49

TABLE 4.8 OTHER MAJOR SERVICES IN IOB

SL. NO OTHER SERVICES IN IOB NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Visa Credit Card Visa Debit Card IOB Fine Gold Forex Exchange Total

16 54 13 7 90

17.7% 60% 14.4% 7.7% 100%

CHART NO 4.8 OTHER SERVICES IN IOB

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 60%

Visa Credit Card 17.7% 14.4% 7.7% Visa Credit Visa Debit Card Card Visa Debit Card IOB Fine Gold Forex Exchange IOB Fine Gold Forex Exchange

INTERPRETATION From the above table it could be inferred that 60% of the customers feel the Visa Debit Card is the service other than the general service. Only 7.7% of the people prefer to Forex exchange. Most of the respondents are utilizing the additional service of visa debit card from IOB. But only few people are utilizing the Forex exchange and other services from IOB.
50

TABLE 4.9 GOVERNMENT BUSINESS SCHEMES THROUGH IOB

SL. NO GOVERNMENT BUSINESS SCHEME NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Pension Payment PF Scheme Senior Citizen Account All the above Total

30 27 3 30 90

33.3% 30% 3.3% 33.3% 100%

CHART NO 4.9 GOVERNMENT BUSINESS SCHEME

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Pension PF Payment Scheme Pension Payment PF Scheme 3.3% Senior Citizen Account All the above Senior Citizen Account All the above 33.3% 30% 33.3%

INTERPRETATION From the above table it could be inferred that 33.3% of the customers are pension payment account holders. Only 3.3% of the account holders are senior citizen account holders in the government retired account holders.
51

Most of the respondents are having the pension payment in IOB since many of the customers are government retired employees. Here few customers are senior citizen account holders. One- third of the people have using the all schemes.

52

TABLE 4.10 GOVERNMENT TAX COLLECTION IN IOB

SL. NO GOVERNMENT TAX COLLECTION NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Sales Tax Income Tax Value Added Tax All the above Total

19 24 7 40 90

21% 26.6% 7.7% 44.4% 100%

CHART NO 4.10 GOVERNMENT TAX COLLECTION

50% 40% 30% 20% 10% 0% Sales Tax Income Tax Value Added Tax 7.7% 21% 26.6% Sales Tax Income Tax Value Added Tax All the above All the above 44.4%

INTERPRETATION From the above table it could be inferred that 44.4% of the customers are paying all the government taxes in IOB. Only 7.7% of the customers are paying only value added tax in IOB. Most of the respondents feel that IOB is the good place to pay all type of government taxes. Also this makes sure IOB is offering best class service for tax paying.
53

TABLE 4.11 AWARNESS AND SATISFACTION LEVEL OF VARIOUS LOANS

SL. NO LOAN SCHEME NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Pushpaka Liquirent Subh Gruha Vidya Jothi Total

8 15 62 5 90

8.8% 16.6% 68.8% 5.5% 100%

CHART NO 4.11
68.8% AWARNESS AND SATISFACTION LEVEL OF VARIOUS LOANS 80.00% 60.00% 40.00% 20.00% 0.00% Pushpaka Liquirent Subh Gruha 8.8% 16.6% 5.5% Pushpaka Liquirent Subh Gruha Vidya Joythi Vidya Joythi

INTERPRETATION From the above table it could be inferred that 68.8% of the customers are aware of the Subh Gruha Loan. Only 5.5% of the customers are not sure on the vidhya Jothi. Most of the respondents are Aware about the Subh Gruha in IOB. But few customers are not so.
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TABLE 4.12 LOCKER FACILITY AVAILING CUSTOMER

SL. NO LOCKER FACILITY PREFERENCE NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Business People Government Staff Bank Staff House Wifes Total

40 30 13 7 90

44.4% 33.3% 14.4% 7.7% 100%

CHART NO 4.12 LOCKER FACILITY PREFERENCE

44.4% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 33.3%

14.4% 7.7%

Business People Government Staff Bank Staff House Wifes

INTERPRETATION From the above table it could be inferred that 44.4% of the customers using locker facility are business class people. Only 7.7% of the customers are house wifes using locker facility. Most of the respondents say they are utilizing the locker facility in IOB. The main players are business class people. Followed by government staffs and then bank staffs.
55

TABLE 4.13 RELATIONAL SHIP BETWEEN BANKER & CUSTOMER

SL. NO RELATIONSHIP BETWEEN BANK & CUSTOMER NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

Good Moderate Better Poor Total

13 58 9 10 90

14.4% 53.3% 10% 11.1% 100%

CHART NO 4.13 RELATIONSHIP BETWEEN BANK & CUSTOMER

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Good Moderate Better 14.4% 10% 11.1% Good Moderate Better Poor 53.3%

Poor

INTERPRETATION From the above table it could be inferred that 53.3% of the customers are have moderate relationship with IOB. Only 10% of the customers feel relationship between bank & customer is better. Most of the respondents are having a moderate relationship between the bank & customer. But few customers are feeling it is better and some feel it is poor in relationship.
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TABLE 4.14 FIXED DEPOSIT INTEREST RATE SLAB OF IOB FROM OTHER BANKS
SL. NO FIXED DEPOSIT RATE NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

2- 3% 3- 4% 5- 10% Above 10% Total

5 27 30 28 90

5.5% 30% 33.3% 31.1% 100%

CHART NO 4.14 FIXED DEPOSIT RATE

40.00% 30% 30.00% 20.00% 10.00% 0.00% 2- 3% 3- 4% 5- 10% 5.5%

33.3%

31.1% 2- 3% 3- 4% 5- 10% Above 10%

Above 10%

INTERPRETATION From the above table it could be inferred that 33.3% of the customers are satisfied with the interest rate slab. Only 5.5% of customers are not satisfied. Most of the respondents are satisfied with the fixed rate slab with the bank. Hence it is offering the interest rate at minimum level. Also few people are not aware of the interest rate of fixed deposit in IOB.
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TABLE 4.15 OPINION ABOUT THE CHARGES LEIVED BY IOB

SL. NO CHARGES LEIVED BY IOB NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3

High Moderate Low Total

16 64 10 90

17.7% 71.1% 11.1% 100%

CHART NO 4.15 CHARGES LEIVED BY IOB

80.00% 60.00% 40.00% 20.00% 0.00% High Moderate High 17.7% 11.1% Moderate Low 71.1%

Low

INTERPRETATION From the above table it could be inferred that 71.1% of the consumers feel that the charges are high comparatively from other banks. Only 11.1% of consumers are not satisfied in charges levied by IOB. Most of the respondents are not satisfied the charges levied by IOB. Customers are expecting the charges to be reduced to get more benefit from the bank.
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TABLE 4.16 MOSTLY PREFFERED LOAN OFFERED BY IOB

SL. NO MOSTLY PREFERRED NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3 4

LOAN

Personnel Loan Commercial Loan Housing Loan

10 8 62

11.1% 8.8% 68.8% 5.5% 100%

Educational Loan 5 Total 90

CHART NO 4.16 MOSTLY PREFERRED LOAN

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 68.8%

11.1%

8.8% 5.5%

Personnel Loan Commercial Loan Housing Loan Educational Loan

INTERPRETATION From the above table it could be inferred that 68.8% of the consumers are choosing housing loan Most of the respondents prefer housing loan from IOB. Only few of the customers prefer education loan and other loans in IOB.
59

TABLE 4.17 IS MANAGER AVAILABLE FOR ANY CLARIFICATION

SL. NO MANAGER DISCUSSION NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2

Yes No Total

68 22 90

75.5% 24.4% 100%

CHART NO 4.17

MANAGER DISCUSSION
75.5% 80.00% 60.00% 40.00% 20.00% 0.00% Yes No 24.4% Yes No

INTERPRETATION From the above table it could be inferred that 75.5% of the customers are satisfied since the manager is available for any clarification. Only 24.4% of the customers says it is not followed in IOB. Most of the respondents are satisfied with the clarification facility with manager. But some customers feel not so.

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TABLE 4.18 ABROAD SERVICE OUTLETS OF IOB

SL. NO ABROAD SERVICES NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2

Yes No Total

85 5 90

94.4% 5.5% 100%

CHART NO 4.18 ABROAD SERVICES

94.4%

100.00% 80.00% 60.00%

Yes 40.00% 20.00% 0.00% Yes No 5.5% No

INTERPRETATION From the above table it could be inferred that 94.4% of the customers are aware that IOB has the service outlet in abroad. Only 5.5% of the customers do not know there are any branches in abroad. Most of the respondents are aware that there are branches throughout the world in important locations. Where we can see that many people are aware in the branch regarding the abroad outlets.
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TABLE 4.19 DRAWBACKS/ PROBLEM WITHIN IOB

SL. NO CUSTOMER SUGGESTION NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3

Yes No Not Sure Total

76 12 2 90

84.4% 13.3% 2.2% 100%

CHART NO 4.19 DRAWBACKS/ PROBLEM WITHIN IOB

100.00% 80.00% 60.00% 40.00% 20.00% 0.00% Yes No Not Sure 13.3% 2.2% Yes No Not Sure 84.4%

INTERPRETATION From the above table it could be inferred that 84.4% of the consumers are suggesting that there are drawbacks within IOB. Only 13.3% of consumers are sure that there are no internal problems in IOB. Most of the respondents tell that there are some internal problems and drawbacks in IOB. Where few people saythat no problem in IOB.

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TABLE 4.20 REFERRING IOB TO OTHERS

SL. NO REFERRING IOB NUMBER OF RESPONDENTS PERCENTAGE OF RESPONDENTS

1 2 3

Yes No Not Sure Total

66 18 6 90

73.3% 20% 6.6% 100%

CHART NO 4.20 Referring IOB

80.00% 60.00% 40.00% 20% 20.00% 6.6% 0.00% Yes No Not Sure Yes No Not Sure 73.3%

INTERPRETATION From the above table it could be inferred that 73.3% of the customers are ready to refer IOB to others. Only 6.6% of customers are not sure what to do. Most of the respondents are obviously ready to refer IOB to their friends, relatives and others. But few of them are not sure on this decision also some people are straight forward in not referring IOB to others.
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WEIGHTED AVERAGE METHOD

TABLE 4.21 DEALINGS WITH IOB
SERVICE HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED TOTAL AVG WEIGHTED RANK

Stock Broking Insuranc e Tax Saving TIN Facility (PAN, TDS) Mutual Fund Other Services

150

164

30

20

373

4.14

100

120

54

34

15

323

3.58

120

160

60

20

368

4.08

165

80

90

14

10

359

3.98

105

100

60

40

14

319

3.54

65

100

93

34

14

296

3.26

INTERPRETATION The various service provided by IOB. Share and Stock Broking rank first as the highly sorted after service by customer. Followed by the investment in the mutual funds, while awaiting TIN facility and insurance services are moderately utilized by the customer by the tax saving scheme and other services are less.

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TABLE 4.22 RATE THE QUALITY OF SERVICES PROVIDED BY IOB

FACTOR EXCELLENT GOOD OK POOR VERY POOR TOTAL AVG WEIGHTED RANK

Immediate 210 attention online service skill of employee time taken 100 for service quality of advice product & service details bank timing Pamphlets 65 110 125 200 65 100

164

10

401

4.45

120

105

12

341

3.78

100

93

34

14

296

3.28

100

108

12

13

333

3.7

128

54

10

397

4.41

136

51

24

12

348

3.86

120

33

40

17

320

3.55

24

108

50

20

267

2.96

INTERPRETATION: From the above table it can be interfered that the immediate attention followed by time taken for service on online applicable by the users while quality of advice displaced of products dealt / availability of application. As the factor phamplets scored the least rank it should be improved.

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CHI SQUARE METHOD

TABLE 4.23

SERVICE PREFERRED BY THE MOST OF THE PEOPLE

HO - There is no significant difference in the length of the service of the customer in IOB and their type of service is available. H1 - There is a significant difference in the length of the service of the customer in IOB and their type of service is available. OBSERVERED FREQUENCY

Customer with IOB < 1 years 1-5 Years 5 -10 Years >10 Years TOTAL

ATM 5 35 10 5 55

Internal Bank 4 15 3 3 26

Mobile 2 0 2 2 6

Retail 6 5 2 1 14

TOTAL 17 55 17 11 100

Most of the service preferred by customer. ( ( ) ( ) )

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EXPECTED FREQUENCY
10 30 9 6 55 5 13 4 2 24 3 3 1 1 8 3 7 2 1 13 21 53 16 10 100

CHI-SQUARE TABLE:
O E O- E

(
25 25 1 1 1 4 1 1 1 9 1 1 9 4 0 0 (

(
2.50 0.83 0.11 0.17 0.20 0.31 0.25 0.50 0.33 3.00 1.00 1.00 3.00 0.57 0 0 )

5 35 10 5 4 15 3 3 2 0 2 2 6 5 2 1
Total= 100

10 30 9 6 5 13 4 2 3 3 1 1 3 7 2 1

-5 5 1 -1 -1 2 -1 1 -1 -3 1 1 3 -2 0 0

=13.77

= 13.77

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DEGREE OF FREEDOM = (R-1) (C-1)

= (4-1) (4-1) v =3 TABULATED VALUE = 7.82 CALCULATED VALUE = 13.77 Therefore, the calculated > Table Value H0 is rejected

INTERPRETATION:
The calculated value is greater than the tabulated value H0 is rejected. This implies that the significant difference in the length of the service of customer in IOB and the type of the service available.

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CHAPTER 5 FINDINGS AND CONCLUSIONS 5.1 FINDINGS OF THE STUDY

1.

56.6% of the respondents have given opinion that the publicity of IOB to the people is done through friends & Relatives.

2.

27.7% of the respondents have given opinion that the customers are choosing saving account in IOB.

3.

36.6% of the respondents have given opinion that the customers are satisfied with the service and the quality of products in IOB.

4.

52.2% of the respondents given opinion that the customers are using senior citizen services in IOB.

5. 6. 7. 8.

57.7% of the respondents rated that IOB products is good. 50% of the respondents have relationship with the IOB for about 1-5 years. 66.6% of the respondents are opinion that the gold offered in IOB is 99.99% pure. 60% of the respondents have given opinion that the Visa Debit card is the major service in IOB.

9.

33.3% of the respondents are opinion that they are pension payment account holder in IOB.

10.

44.4% of the respondents are opinion that they are paying all the government taxes through IOB.

11.

68.8% of the respondents are opinion that they are aware of Subh Gruha loan product of IOB.

12.

44.4% of the respondents are utilizing the locker facility in IOB by business class people.

13.

53.3% of the respondents are opinion that the customers have moderate relationship with IOB.

14. 15. 16.

33.3% of the respondents are satisfied with the interest rate slabs. 71.1% of the respondents are sure that the levied charges by IOB are low. 68.8% of the respondents are opinion that the customers prefer Housing Loan from IOB.
69

17.

75.5% of the respondents are satisfied with the manager availability for any clarification or complaints.

18. 19.

94.4% of the respondents are aware of the IOB service outlets in abroad. 84.4% of the respondents agree that customers have some drawbacks and problems in IOB.

20.

33% of the respondents are opinion that the stock broking ranks first as the highly sorted after service by customer in IOB.

21. 22.

55% of the respondents are opinion that the customers prefer ATM services. 73.3% of the respondents are ready to refer IOB to others.

5.2 LIMITATIONS OF THE STUDY Although the study was carried out with extreme enthusiasm and careful planning there are several limitations, which handicapped the research vise, This study is limited to the customers with in Chennai city.

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. Accuracy
It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information. 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 respondents.

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5.3 SUGGESTIONS & RECOMMENDATIONS With regard to banking products and services, customers respond at different rates, depending on the consumers characteristics. Hence I IOB should try to bring their new product and services to the attention of potential early adopters.
1.

Due to the intense competition in the financial market, IOB should adopt better strategies to attract more customers.

2.

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.

3.

IOB should adopt effective promotional strategies to increase the awareness level among the customers.

4.

IOB should ask for their consumer feedback to know whether the customers 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.

5.

The IOB brand name has earned a lot of goodwill and enjoys high brand equity. As there is intense competition, IOB should work hard to maintain its position and offer better service and products to customers.

6.

The bank should try to increase the Brand image through performance and service then, only the customers will be satisfied.

7.

Majority of the people find banking important in their life, so IOB should employ the strategies to convert the want in to need which will enrich their business.

8. 9.

The bank may conduct events/ schemes week or months for promoting products. A separate information desk marked as an investment consultancy provider may be established for catering to the needs of the customers.

10. 11.

A refined data base may be used for sending personal reminders to the customers. Strategic points may be identified for the displaying the potters. All the communications may be bear the information/ logo of the different schemes.

12.

Cost effective, visually appearing tools like bulletin board may be used for promotion.

13.

Direct mailers may be sent to co-operate account holder.

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5.4 CONCLUSION The project entitled THE STUDY ON CUSTOMER SATISFICATION TOWARDS INDIAN OVERSEAS BANK PRODUCTS AND SERVICES has helped me in studying satisfaction about services and products offered to customers. 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, IOB is far behind SBI. IOB 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 IOB 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.

72

BIBLIOGRAPHY

Websites:
1. www.wikipedia.com 2. www.thehindu.com 3. www.economictimes.com 4. www.iob.in

Books Referred:
1. SERVICE MAKETING, Zeithaml.A Tata Mc Graw-Hills, Publications New Delhi

2. BUSINESS STATISTICS G.P.Gupta Sultanchand Publication Mumbai 3. Research Methodology Kothari.C.R New Age International Publication New Delhi

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ANNEXURE QUESTIONNAIRE NAME AGE SEX TYPE OF CUSTOMER TO IOB : : : :

1. How you know IOB? Friends Relatives Awareness Direct selling

2. What type of account do you have in bank? Savings Account Current Account Fixed Deposit NRI 3. How do you feel about the services offered by IOB? Excellent Good Satisfied Poor 4. What type of value added service provide by IOB? Youngster Senior Citizen Prepaid Cards Recurring Deposit 5. How do you rate the products and services offered by IOB than others? Excellent
74

Good Better Poor 6. Will you suggest Indian Overseas Bank to your friends/ Relatives for its service? Yes No Not Sure 7. How long have you been banking with IOB <1 year 1-5 years 5-10 years >10 years 8. IOB offerings ____ Purity of fine gold to their customers 99.19% 99.9% 99.99% 100% 9. What is your main concern while taking an Insurance policy Tax benefits Security Investment/Saving All the above 10. What are the other products & services offered by IOB to the customers Visa International Credit Cards Visa Debit Card IOB fine Gold Forex Exchange

75

11. What are the government business schemes available for the customers through the banks? Pension payment scheme provident fund scheme 1968 Senior Citizen Scheme 2004 All the above 12. What type of taxes can be paid to the government through the banks? Sales tax Income Tax Value Added Tax All the above 13. Please provide us with Information about your awareness & satisfactory level for the schemes Pushpaka Subh Gruha Liquirent Vidhya Joythi 14. What type of customer mostly using locker facilities in the bank? a. Business people b. government staffs c. bank staffs d. house wifes 15. How is the relational ship between the customer and the bankers? Good Moderate Better Poor

16. How the fixed deposit interest rate slab varies in IOB from other banks 2% - 3% 3% - 5%
76

5%- 10% Above 10% 17. Give your opinion about the charges levied by IOB for the services provided High Moderate Low High for certain services

18. How would you know the products and services of IOB Advertisements friends & Relatives Awareness Direct Selling Agents

19. Which type of loan is mostly preferred by the customers Personnel Loan Commercial Loan Housing Loan Educational Loan

20. Can we have the discussion with the bank manager in case of any complaints or clarifications? Yes a. b. No

21. Does the bank have any other outlets in abroad to server the customers globally? Yes No

22. Drawbacks/ problems that you faced with IOB Yes

77

No None 23. What is the Level of business with IOB from the day 1? SERVICE Stock Broking Insurance Tax Saving TIN Facility (PAN, TDS) Mutual Fund Other Services HIGH MEDIUM LOW NONE

24. What are the qualities of service provided in IOB? SERVICE Immediate attention online service skill of employee time taken for service quality of advice product & service details bank timing Pamphlets EXCELLENT GOOD OK POOR

78

25. Which type of service preferred the most of you ATM Service Internet Banking Mobile Banking Retail Banking

79

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