AN EMPIRICAL STUDY ON SERVICE QUALITY PUBLIC AND …. AN EMPI… · ELK ASIA PACIFIC JOURNAL OF MARKETING & RETAIL MANAGEMENT AN EMPIRICAL STUDY ON SERVICE QUALITY PUBLIC AND PRIVATE

ELK ASIA PACIFIC JOURNAL OF MARKETING & RETAIL MANAGEMENT

AN EMPIRICAL STUDY ON SERVICE QUALITY PUBLIC AND PRIVATE SECTOR

BANKS

Dr. Rajesh Manikraoji

Naik

MCom Mphil PhD

Research Guide RTM

Nagpur University

M R Senapathy

Msc, MBA, Mphil CAIIB

Associate professor

Siva Sivani Institute of

Management

[email protected]

ABSTRACT

Introduction:

Objectives Of The Study

1. To study the factors that influences the choice of a bank for Availing services.

2. To find and compare the satisfaction level of customers in public sector as well as in

private sectors bank and the expectations of the customers in this era.

3. To get suggestions for improvement or change in the services of public and private sector

banks.

Research Methodology

Primary Data

The methodology adopted for studying the objectives was surveying the saving account

holders and structured questionnaire was adopted for the collection of primary data. A questionnaire

15 simple questions was devised and the respondents (Customers) were requested to answer these

questions with correct information in branches of various banks in Hyderabad & Secunderabad

Secondary data

Secondary data has been collected through the various magazines and newspaper reports

,documents, Banks annual reports , Internet other published information’s.

SAMPLE SIZE:

The new watchword for the bank is pretty ambitious: customer delight. It all emanates

from the customers satisfaction which is directly proportional to the varied services offered to

him. Application of marketing concept in the banking sector was introduced to enhance the

customer satisfaction. The policy of privatization of banking services aims at encouraging the

competition in banking sector and introduction of financial services. Consequently, services

such as Demat, Internet banking, Portfolio Management, Venture capital, etc, came into

existence to cater to the needs of public. An important agenda for every banker today is greater

operational efficiency and customer satisfaction. Banks marketing can be defined as the part of

management activity, which seems to direct the flow of banking services profitability to the

customers. The marketing concept basically requires that there should be thorough

understanding of customer need and to learn about market it operates in. Further the market is

segmented so as to understand the requirement of the customer.

mailto:[email protected]


Keeping in mind all the constraints the size of the sample of the study was selected as 200.

Stratified sampling technique was adopted

SAMPLING UNIT:-

Public sector Banks- SBI, PUNJAB NATIONAL BANK.

Private sector Banks- HDFC Bank, ICICI, AXIS Bank

SAMPLING DESCRIPTION:-

The information was collected and analyzed according to their socio economic background which

included the characteristic of their respondents like education, age marital status and monthly

income.

PERSONAL DETAIL

AGE

Particulars %age of Respondent

20-30 years 20%

30-40 years 50%

40-50 years 20%

50-60 years 10%

SEX

Particulars No of Respondent %age

Male 140 70%

Female 60 30%

Total 200 100%

MARITAL STATUS

Particulars No of Respondent %age

Married 66 33%

Unmarried 134 67%

Total 200 100%

Q4: EDUCATIONAL QUALIFICATION:-

Particulars No of Respondent % age

Matric 8 4%

Senior Secondary 28 14%

Graduate &professional 92 46%

Post graduate 72 36%


Total 200 100%

OCCUPATION

Particulars No of Respondent %age of respondents

Businessman 64 32%

Government Employee 56 28%

Student 48 24%

Others 32 16%

LIMITATIONS OF THE STUDY

The limitations of the study are:

Some of the respondents of the survey were unwilling to share information.

The information given by the respondents might be biased because some of them might not

be interested to give correct information.

The officials of the bank though were supportive, had some time constraints to provide full

details.

Data Analysis

1. The respondents were asked about which banking sector’s services do their avail.

: banking sectors services which the respondents avail.

2. The respondents were asked about the bank in which they have their account

Name of bank SBI PNB Syndicate ICICI HDFC Axis

0

20

40

60

80

100

120

Public Private

Banking sector Number of respondents

Public 110

Private 90

Total 200


Bank bank Bank Bank

Total no of

respondents

55 35 20 30 32 28

Interpretation: It was found that most of the respondents have their account in State bank of India.

SBI have the major chunk of the customers in public sector. Apart from SBI all other banks have

more or less same number of customer ( except for syndicate bank).

3.Type of account maintained by the respondent.

Type of Account Number of respondents

Savings 160

Current 35

Demat 14

FD 45

Salary 40

RD 10

Interpretation : From the above graph, it is seen that almost 80% of the respondents avail the

services of savings accounts. This is the most common account among the respondents. Many

people have more than one type of accounts.

0

10

20

30

40

50

60

SBI PNB Syndicate HDFC ICICI Axis

0

50

100

150

200

Savings Current Demat FD Salary RD


4. Various services availed by the customers from their Bank.

Services No of respondents

ATM/ Debit card 200

Credit card 105

Insurance 36

Mobile banking 64

Internet banking 75

Locker Facility 15

Loan 95

Interpretation: By analyzing this graph, we can conclude that most of the customers have

ATM/Debit cards. LIC is still the most preferred for insurance

5. The respondents were asked about their most preferred bank in case they have more than

one accounts.

Name of the bank No of respondents

SBI 45

PNB 27

Syndicate 15

HDFC 34

ICICI 38

Axis 28

Other 13

0

50

100

150

200

250

Atm/Debit Credit Card Insurance Mobilebanking

Internetbanking

Locker facility Loan


Interpretation SBI followed by ICICI Bank and HDFC bank stands taller .Axis Bank is catching

up. Though the three private sector Banks have come up in the last 2 decades , their performance

has been marvelous.

6. Purpose of a customer opening an account

The respondents were asked about the particular reason for opening an account in their bank.

0

10

20

30

40

50

SBI PNB Syndicate HDFC ICICI Axis Other

Reasons No. of respondents

Quick and fast service 40

Location 95

Behaviour of the staff 31

Trust 85

Suggested by friend/family 40

Impressed by advertisement 15

Product range 66

Product pricing 60

Network 25

Other 9

0%

20%

40%

60%

80%

100%

image services location charges AQB/AMB network

unimp

not so imp

nuetral

imp

most imp


Interpretation:

From this above Graph, we can conclude that location of branches and trust

is an important factor in deciding a bank. SBI scores well on both factors. Advertising do not play an

important role in this regard. There are some other reasons for choosing a bank eg. Relations with

employee, to get a particular service, low monthly/quarterly balance etc.

8. Assessment of satisfaction level of the customers in terms of various factors.

0102030405060708090

100


Interpretation

Staff behavior has been the foremost factor in terms of customers satisfaction .

Q.10 Shifting from the present Bank to some other bank.

Interpretation: This graph shows that most of the people are not willing to change their banks, some

people are ready to continue with their banks despite the problems they are facing.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

highly dissatisfied

dissatisfied

nuetral

imp

most imp

0

50

100

150

Yes No

YES NO

66 134


Q11. In case a customer wants to shift from his present bank , which is the next preferred

Bank.

Name of the bank No of respondent

SBI 10

ICICI 15

PNB 6

Axis 9

HDFC Bank 19

Syndicate 1

Other 6

Interpretation: the study shows that just one respondent was ready to shift to syndicate bank.

Majority people opted for HDFC and SBI because of their large and vast network. The other banks

where people wanted to move were , Bank of baroda, yes bank, HSBC etc.

FINDINGS OF THE STUDY

More number of people has account with private banks.

Majority of the respondents whether in public sectors or in private sector banks have savings

account with banks.

Number of problem faced by the people is more in public sector banks.

People want a change in the behavior of the staff of the public sector banks.

People are more satisfied form the services of private sector banks due to their better

services provided by them in terms of speedy transactions, fully computerized facilities,

0

2

4

6

8

10

12

14

16

18

20

SBI ICICI PNB Axis HDFC Syndicate Other


more working hours (in case of ICICI bank, the number of working hour are 12), good

investment Advisory services, efficient and co-operative staff, better approach to Customer

Relationship Management.

The facility that was availed by most of the people at public sector banks was that of

ATM/Debit cards. The least availed facility was that of Demat account and foreign transfer

of funds.

The facility that was availed by most of the people at private sector banks was that of

Internet/Phone banking by ATM/Debit card.

Majority of respondents do not want to shift from their present bank.

Private banks are providing better services than nationalized banks. 95% respondents

favored that private banks are providing better services than nationalized banks while 5%

respondents are not agree with it.

40% respondents said that the bank employees never pay any attention to them and 10%

respondents said that their problems are not solved by bank executives. The remaining 50%

respondents give a positive reaction in the favour of bank. 30% respondents favoured that

their problems are solved by bank executives and 20% respondents said they are received

with smile by bank executives. So there is a mix response.

Majority of the respondents said that the average time taken for transactions is between 25 to

50 minutes in their bank. 30% respondents said the average time taken for transaction is

between 20-25 minutes, 20% said it is between 10 to 25 min. and remaining 10% said that

the average time taken for transaction by their bank is 5 to 10 minutes.

All the 100% respondents said that their bank does not organize any customer's meets to

resolve their problems. Customer satisfaction is the demand of time, so the banks should

organize customer meets to resolve the problems of their customers.

The above study depicts that 60% respondent said that their bank updates them time to time

about the latest facilities and remaining 40% said that their bank doesn't update them.

SUGGESTIONS

Banks should adhere to RBI norms and provide facilities as per the norms, which are not

being followed by the banks. While the customer must be given prompt services and the

bank officer should not have any fear on mind to provide the facilities as per RBI norms to

the units going sick.


Fair dealing with the customers. More contribution from the employee of the bank. The staff

Should be co-operative, friendly and must be capable of understanding the problems of

customers

Internet banking facility must be made available in all the banks.

Prompt dealing with permanent customers and speedy transaction without delay.

Each section of every bank should be computerized even in rural areas also.

Real time gross settlement can play a very important role.

More ATM coverage should be provided for the convenience of the customers.

No limit on cash withdrawals on ATM cards.

The bank should bring out new schemes at time-to-time so that more people can be attracted.

Late hours banking should be induced so as to facilitate the customers who may not have a

free time in the daytime. It will help in facing the competition more effectively.

The charges for saving account opening are high, so they should also be reduced.

The need of the customer should properly be understood so that customer feels satisfied. The

relationship value should be maintained.

The branch should promote cooperation and coordination among employees which help

them in efficient working.

CONCLUSION

The customers now days are well exposed to various kinds of facilities offered by Banks. They not

only expect the safety of money but also best ways to invest that money to increase their revenue/

income. Entries of the private sector banks have made the PSB competition tougher. The banking

sector is poised for explosive growth. In this, scenario, it is imperative that banks adopt technology

at an aggressive Pace, if they wish to remain competitive. Mani Mamallan makes a case for banks

to outsource their technology infrastructure requirement, thus enabling early adoption and increased

efficiencies.

In the prevailing scenario, a number of banks have adopt a new deployment strategy of

infrastructure outsourcing, to lower the cost of service channels. As a result, other banks too will

need to align their reinvented business models. The required changes at both the business and

technology levels are enormous. In a highly competitive banking markets, early adopters are

profiting from increased efficiencies.

BIBLIOGRAPHY


BOOKS:

Kothari C.R. (1990) Research Methodology: Method and Techniques; Wishva Prakashan,

New Delhi.

Bodie.Z, Kane.A & Mracus.J : Essentials of Investments.

Prof. E Gordon & Dr. K. Natrajan “Banking Theory Law and Practice”.

“Indian financial System & Commercial Banking” by Khan Masood Ahmed

“Banking in India” by P.N.Varshney

WEBSITES:

www.iba.org.in, www.knowledgestom.com

http://www.iba.org.in/

AN EMPIRICAL STUDY ON SERVICE QUALITY PUBLIC AND …. AN EMPI… · ELK ASIA PACIFIC JOURNAL OF MARKETING & RETAIL MANAGEMENT AN EMPIRICAL STUDY ON SERVICE QUALITY PUBLIC AND PRIVATE

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