A REPORT ON “CUSTOMER SATISFACTION” OF SBICAP SECURITIES, BHUBANESWAR, ODISHA A report Submitted in partial fulfillment of the requirement For the Award of the degree of Master of Business Administration Submitted by SUVRAJEET MOHANTY MBA (BA), TRI- VI ROLL NO- 30 UNDER THE GUIDANCE OF PROF.M D KAKADE 1
A REPORT ON “CUSTOMER SATISFACTION” OF SBICAP SECURITIES, BHUBANESWAR, ODISHA
A report Submitted in partial fulfillment of the requirement For the Award of the degree of Master of Business Administration Submitted by SUVRAJEET MOHANTY MBA (BA), TRI- VI ROLL NO- 30 UNDER THE GUIDANCE OF PROF.M D KAKADE
INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT BHARATI VIDYAPEETH UNIVERSITY PUNE *2008-2010*
1
A REPORT ON “CUSTOMER SATISFACTION” OF SBICAP SECURITIES, BHUBANESWAR, ODISHA
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A REPORT ON “CUSTOMER SATISFACTION”
OF SBICAP SECURITIES, BHUBANESWAR, ODISHA
A report Submitted in partial fulfillment of the requirement For the Award of the degree of Master of Business Administration
Submitted by
SUVRAJEET MOHANTYMBA (BA), TRI- VI
ROLL NO- 30
UNDER THE GUIDANCE OF
PROF.M D KAKADE
INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT
BHARATI VIDYAPEETH UNIVERSITYPUNE
*2008-2010*
1
A
REPORT ON
“CUSTOMER SATISFACTION” OF
SBICAP SECURITIES, BHUBANESWAR, ODISHA
A report Submitted in partial fulfillment of the requirement For the Award of the degree of
Master of Business Administration
Submitted by
SUVRAJEET MOHANTYMBA (BA), TRI- VI
ROLL NO- 30
UNDER THE GUIDANCE OF
PROF.M D KAKADE
INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT
BHARATI VIDYAPEETH UNIVERSITYPUNE
*2008-2010* 2
BHARTI VIDYAPEETH UNIVERSITY, PUNE
INSTITUTE OF MANAGEMENT AND ENTREPRENUERSHIP DEVELOPMENT, PAUD ROAD, ERANDWANE
PUNE-38
CERTIFICATE OF COMPLETION
This is to certify that Mr. Suvrajeet Mohanty is a bonafide student of MBA program of the
university in this institute for the year 2008-10. As a part of the University curriculum, the
student has completed the project report titled “CUSTOMER SATISFACTION” of “SBICAP
SECURITIES LTD”.
The project report is prepared by the student under the guidance of Prof. M.D Kakade.
(Teacher Guide) Program Co-ordinator DirectorDate:Place:
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ACKNOWLEDGEMENT
Before I get into the depth of the thing, I would like to add a few heartfelt words for the people who at various stages of the project development helped me by their valuable guidance. First and foremost I would like to pay my sincere gratitude which I owe to Prof. Hema Mirji , and Prof. M.D Kakade project guide, for their valued help and guidance which they gave me when I needed it the most. It was only due to their sincere help and efforts that I was able to end up with this project.
I owe special thanks to Dr.Nitin Naik, Director of “INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP DEVLOPMENT,” Pune for his valuable co-operation and guidance in completing the project work.
Last but not the least; I would like to pay our gratitude to my parents, without their help and blessing I can’t take a single step in right direction.
(Suvrajeet Mohanty) Seat No.10440013, MBA (BA)
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DECLARATION
I Suvrajeet Mohanty, a student of INSTITUTE OF MANAGEMENT & ENTREPRENEURSHIP DEVLOPMENT, Pune, session (2008-10) bearing Seat No. 10440013 and University PRN no.:- 800001278, hereby declare that the project report entitled “Customer Satisfaction of SBICAP Securities Ltd”. Is the outcome of my own work and the same has not been submitted to any college for the award.
Date:Place: (Suvrajeet Mohanty) Seat No.10440011, MBA (BA)
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EXECUTIVE SUMMARY
Name : Suvrajeet Mohanty
Organization Name : SBICAP SECURITIES LTD.
Project Title : Customer Satisfaction
Project Guide : Prof. M. D. Kakade
TEAM LEADER,
BHUBANESWAR REGION SBI CAP SECURITIES LTD.
Project Objective : To understand and solve the queries of clients.
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INDEX
CHAPTER NO.
CONTENT PAGE NO.
1. INTRODUCTION TO THE SUBJECT 08
2. COMPANY PROFILE 13
3. RESEARCH METHODOLOGY 39
4. DATA ANALYSIS AND INTERPRITATION 43
5. COMPITITORS 54
6. FINDINGS & ANALYSIS 57
7. BIBLIOGRAPHY 62
8. QUESTIONNAIRE 64
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CHAPTER: - 1
INTRODUCTION TO THE SUBJECT
8
DEMAT ACCOUNTDemat account allows you to buy, sell and transact shares without the endless
paperwork and delays. It is also safe, secure and convenient.
What is Demat account?
Demat refers to a dematerialized account.
Just as you have to open an account with a bank if you want to save your money, make
cheque payments etc, you need to open a demat account if you want to buy or sell
stocks. So it is just like a bank account where actual money is replaced by shares. You
have to approach the DPs (remember, they are like bank branches), to open your demat
account.
In India, a demat account, the abbreviation for dematerialised account, is a type of
banking account which dematerializes paper-based physical stock shares. The
dematerialised account is used to avoid holding physical shares: the shares are bought
and sold through a stock broker.
This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it
became mandatory that any person holding a demat account should possess a
Permanent Account Number (PAN), experience in managing a vast array of
transactions has enabled us to develop and accumulate expertise in this field. New
product development is essentially based on assimilation of such expertise and helps us
provide holistic solutions specific to our client’s needs across various financing options.
We dip into our multiple business and product groups to deliver the most optimal and
innovative financial solution.
Demat account allows you to buy, sell and transact shares without the endless
paperwork and delays. It is also safe, secure and convenient.
DP should provide the investor with a copy of the agreement and schedule of
charges for their future reference. The DP will open the account in the system
and give an account number, which is also called BO ID (Beneficiary Owner
Identification number).
The DP may revise the charges by giving 30 days notice in advance. SEBI has
rationalized the cost structure for dematerialization by removing account
opening charges, transaction charges for credit of securities, and custody
charges vide circular dated January 28, 2005.
Further, SEBI has vide circular dated November 09, 2005 advised that with
effect from January 09, 2006, no charges shall be levied by a depository on DP
and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers
all the securities lying in his account to another branch of the same DP or to
another DP of the same depository or another depository, provided the BO
Account/s at transferee DP and at transferor DP are one and the same, i.e.
identical in all respects.
In case the BO Account at transferor DP is a joint account, the BO Account at
transferee DP should also be a joint account in the same sequence of ownership.
Rights
You can open more than one depository account in the same name with single
DP/ multiple DPs.
No minimum balance is required to be maintained in a depository account.
You can give a one time standing instruction to your DP to receive all the
credits coming to your depository account automatically.
Procedure
Fill account opening form (available with your DP).
Give your DP the duly filled account opening form with introduction documents
as may be required.
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Sign agreement with DP (agreement will state rights & obligations of both
parties). The agreement will contain the fee structure of your DP. Your DP
would give you a copy of this signed agreement for your record.
DP would give you Client Id no. (account no.) once your depository account is
opened. This Client Id no. along with your DP Id no. forms a unique
combination. Both these nos. should be quoted in all your future correspondence
with DP/NSDL/ Issuing company/their registrar & transfer (R&T) agent .
Your DP would give you pre-printed instruction slips for depository services
viz., dematerialization, delivery instruction for trades, etc..Preserve these
carefully.
Your DP would give you a list of deadlines for giving instructions for various
depository activities viz., transfer for effecting sale, purchase, etc. If not, check
with the DP.
Required Documents:
The extent of documentation required to open a demat Account may vary according to
your relationship with the institution. If you plan to open a demat account with a bank,
a savings account holder has an edge over the non-account holder. In fact, banks
usually offer additional incentives to customers who open a demat account with them.
Along with the application form, your photographs (with co-applicants) and proof of
identity/residence/date of birth have to be submitted. The DPs also ask for a DPclient
agreement to be executed on non-judicial stamp paper. Here is a broad list (you won’t
need all of them though):-
PAN card
A canceled check,
Voter’s ID
Passport
Ration card
Driver’s license
Photo credit card
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Employee ID card
Bank attestation
IT returns
Electricity/ Landline phone bill
Statement of the problem:-
The following survey was mainly done with an objective to know the state of mind of
the investors who wanted to invest in the stock market & also to know the attitude and
preference of the prospective investors regarding capital market.
To know which all other brokerage houses are the key player.
What are the features and services that influence the investor to invest their
money?
To know what are the expected charges of the investors to invest their money in
capital market.
Account Opening Intimation
After the Demat account form is duly filled and submitted, you will receive a welcome
kit containing within 10 working days.
The welcome kit will contain the following:
A welcome letter containing details pertaining to your account.
A product manual on “Demat Services”, to help you gets started.
Delivery Instruction Slips and Client master listA leaflet on product features
detailing the advantages of the online trading platform.
Your Demat Account number will be intimated to you by e-mail/ SMS if the mail-id/
mobile phone no. is written on the application form and also by courier or by post.
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Need of the study:-
The need of the study arises because of the reason that a trainee must understand the
company, its achievements and tasks, products and services and also to collect
information about its competitors, its products and services offered. So that, after
understanding and collecting information about the organization and its competitors, a
trainee will be able to work well for the organization.
From the study I have learned very much, about the company as well as the strategy of
the customers, which helps me a lot at my working days.
Scope of study:
The following survey was done parallel when an investors is going to invest in the
stock market. The study helps us to know the state of mind of the investors & their
expected charges regarding Brokerage, Return, Annual maintenance charges, and so on.
The Brokerage house is also benefited as it came to know what an individual investor
expects when he or she is going to invest in capital market. Also if the Brokerage house
is lacking in some areas, what is that and how to overcome that. My area of project was
in branch of DECCAN GYMKHANA & MARKET YARD.
Objectives of the study:-
The objective of my project is to bring awareness among the investors who are
interested for share market but don’t know the procedure to invest in share market.
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CHAPTER 3
RESEARCH
METHODOLOGY
38
INTRODUCTION:-
Research Methodology refers to search of knowledge .one can also define research
methodology as a scientific and systematic search for required information on a specific
topic.
The word research methodology comes from the word “advance learner ‘s dictionary
meaning of research as a careful investigation or inquiry especially through research for
new facts in my branch of knowledge for example some author have define research
methodology as systematized effort to gain new knowledge.
RESEARCH DESIGN
For the proper analysis of data simple quantitative technique such as percentage were
used. It help in marketing more accurate generalization From the data available .The
data which was collected from a sample of population was assumed to be representing
entire population was interested .Demographic factor like age, income and educational
background was used for the classification purpose.
METHODS OF DATA COLLECTION:-
In the project work Primary data secondary data (both) sources of data has been used .
Primary data collection:
In dealing with real life problem it is often found that data at hand are inadequate, and
hence, it becomes necessary to collect data that is appropriate. There are several ways
of collecting the appropriate data which differ considerably in context of money costs,
time and other resources at the disposal of the researcher.
39
Primary data can be collected either through experiment or through survey.
The data collection for this study was done in the following manner:
Through personal interviews:-
A rigid procedure was followed and we were seeking answers to many preconceived
questions through personal interviews.
Through questionnaire:-
Information to find out the investment potential and goal was found out through
questionnaires.
Through Tele-Calling:-
Information was also taken through telephone calls.
Secondary data:
For the secondary sources of data Internet is used. Basically secondary data Available
on company website.
SAMPLE UNIT:
Population is basically investor who comes in the bank.
SAMPLE SIZE:
Considering the constraints it was decided to conduct the study
Based on sample size of 150 peoples.
AREA OF STUDY:My field work is PUNE city with some specific areas like Kothrud, S.B. road, Karve
Nagar, Kalyani Nagar, Market yard, etc. LIMITATIONS
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The time constraint was one of the major problems.
The study is limited to the different schemes available
under the Demat account selected.
The lack of information sources for the analysis part.
Geographical locations.
Extreme variability in MARKET.
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CHAPTER:- 4
DATA ANALYSIS
AND
INETRPRITATION
42
DATA ANALYSIS AND INTERPRETATION
Table no.1 Preference for Investment
Financial Instrument Percentage of respondent
Mutual Fund 75%
Bond 16%
Online trading 7%
Derivative 2%
Result of Preference of Investment
Interpretation:
This shows that although the mutual funds market is on the rise yet, the most favored
investment continues to be in the Share Market. So, with a more transparent system,
investment in the Stock Market can definitely be increased.
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Table no.2 Classification of investors on the basis of income:
Attributes Percentage
Rs 1 lakh to Rs 2.5 lakhs p.a 22
Rs 2.5 lakh to Rs 5 lakhs p.a 48
Rs 5 lakhs to Rs 8 lakhs p.a 20
Rs 8 lakhs and above 10
Result of Classification of investors on the basis of income
Interpretation:
Among the sample, 48% are earning between Rs 2.5 lakhs to 5 lakhs, 22% fall under
the slab of Rs 1 lakh to Rs 2.5 lakhs. The rest 30% fall under the slab of Rs 5 lakhs or
above. This shows that majority of the investors belong to the ―high middle class‖ income group with a considerable amount of savings set aside for investment purposes.
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Table no.3 Awareness of online share trading
Aware of online share
trading
Percentage of respondent
Yes 72%
No 28%
Result of awareness of online trading
Interpretation:
With the increase in cyber education, the awareness towards online share trading has
increased by leaps and bounds. This awareness is expected to increase further with the
increase in Internet education.
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Table no.4 Percentage of Awareness of SBI
Awareness of SBI CAPSEC Percentage of respondent
Yes 68%
No 32%
Interpretation:
This shows that SBI CAPITAL SECURITIES LTD has a reasonable amount of Brand
awareness in terms of a premier Retail stock broking company. This brand image
should be further leveraged by the company to increase its market share over its
competitors.
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Do you know about the facilities provided by SBI CAPITAL
SECURITIES LTD ?
Table no.5 Facilities Percentage of SBI
Awareness of SBI CAPSEC Percentage of respondent
Yes 36%
No 64%
Interpretation:
Although there is sufficiently high brand equity among the target audience
yet, it is to be noted that the customers are not aware of the facilities
provided by the company meaning thereby, that, the company should
concentrate more towards promotional tools and increase its focus on
product awareness rather than brand awareness.
Which bank is easily available everywhere?
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Table no.6 Availability of bank
Company Name Percentage of respondent
SBI 60%
ICICI 25%
HDFC 15%
Availability of bank
Interpretation:-
60% have respondent of SBI, 25% have respondent of ICICI, 15% have respondent of
HDFC. So we can say that SBI is easily available at anywhere, so this bank is the better
option for any purpose.
Which bank provide you a better email facility?
48
Table no.7 Percentage of better email facility
Company Name Percentage of respondent
SBI CAPSEC 34%
HDFC 33%
ICICI 33%
INTERPRETATION:
This mean all 3 banks provide good email facilities.
Which company provides less brokerage rate?
Table No.8 Company is providing less BROKARAGE rate
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Company Name Percentage of respondent
SBI CAPSEC 30%
HDFC 15%
ICICI 15%
INDIAINFOLINE 40%
Graph no. 3.02
INTERPRTETATION:
This mean INDIAINFOLINE is the market leader in less brokerage
competition. SBI CAPSEC comes after INDIAINFOLINE and ICICI,
HDFC are much higher than other.
Table no.9 Most appealing feature of the DP of the investor.
50
Attributes Percentage
Quality of service 82
Brokerage services 6
Demo‘s and other assistance 6
Periodic holding statements 6
Others 0
Interpretation:
According to the survey, the investors are mainly (82%) influenced by
quality of service provided by the bank / broking agency. Other factors
regarding online services do not seem to have much influence on investors.
This shows that only those financial institutions that can prove their better
quality of service can grab the market share.
Table no.10 How many investor is ready to pay a premium charge to
open a Demat account ?
51
Attributes Percentage
Yes 16
No 84
Interpretation:
The study reveals that 84% of the investors are not ready to pay a premium
charge to open a Demat account. Only 16% of the investors are willing to
pay a charge to open Demat account.
CHAPTER: - 552
COMPETITORS
53
COMPETITORS
HDFC BANK is one of the leading Depository Participant (DP) in the country with
over 8 Lac demat accounts.
HDFC Bank Demat services offer you a secure and convenient way to keep track of
your securities and investments, over a period of time, without the hassle of handling
physical documents that get mutilated or lost in transit.
HDFC BANK is Depository participant both with National
Securities Depositories Limited (NSDL) and Central Depository Services Limited
(CDSL).
ICICI Direct (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with
stock trading and trading in derivatives in BSE and NSE, it also provides facility to
invest in IPOs, Mutual Funds and Bonds.
Trading is available in BSE and NSE
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Trading Charges under SBI DEMAT ACCOUNTBenefits of trading with SBI CAPSEC
Personal Relationship Manager
Most competitive brokerage & DP charges (Delivery-0.5% and
Intraday-.075%)
Very easy and safe online trading.
Trading via branch network, telephone and internet account I.e. both
Online & Offline.
Real time Online fund Transfer & Exposure updating facility with SBI
Bank.
Integrated Trading and Depository Account.
Margin trading of 4 times the cash deposited for delivery based trade.
Margin trading of 4 times the cash deposited for intraday based trade.
Margin Trading of 2 times the approved category A based shares.
Quality equity Research department, which studies the market and
provides personalized information.
Equity Analysis report to support your investment decisions.
Post Registration Services
Deliver and receive cheque & securities & place orders.
Obtain market information.
Get access to IPO via the book building route as well as to all the fixed
price issues.
Dematting and rematting of shares.
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CHAPTER: - 6
FINDING AND
ANALYSIS
56
Findings and Analysis:-
In our survey of prospective investor’s preferences and their attitude towards share
trading, we found that 40% does not want to invest in the capital market and 60% of the
sample is of indifferent attitude.
Out of this 40% people who don’t want to invest in stock market 22.5% people
says that they don’t have the proper knowledge about capital market & 30%
people feel that it is too risky to invest in the stock market & 16% people says that
they don’t have time to invest.
And out of 60% who are invested in stock market 20% of this 60% have their Demat
a/c in India bulls while 80% investors are with others.
Other Findings
Most of the investors want that the a/c opening charges should be
minimum and that to Rs. 500.
85% of the investor wants that the brokerage on delivery should be
0.2-0.5 and rest feet that it should be within .5-1.0
75% of the investor wants that the brokerage on Intraday should
be .02-.05 rest feet that it should be within .05-.01
70% of the investors feel that the broker should provide Exposure
on Cash
72% Most of the investors feel that the broker should provide
Exposure on Security
95% investors expect net banking facility.
80% of investor expect the facility to trade with other Demat A/C
65% of investor expects Off Line trading.
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Conclusions:
From the above survey, comparison charts & differential study: We can conclude that
the majority of prospective investors from the sample i.e.60% want to invest in the
capital market and rest does not want to invest in stock market because either they don’t
have sufficient knowledge about stock market or they don’t have time or they feel that
it is risky to invest in stock market.
SBI CAPSEC by its distinctive feature can efficiently provide 100%
satisfaction to be various categories of investors. SBI CAPSEC is the only Brokerage
house that provides various privileges over Indiabulls. It is the only one who provides a
satisfactory redeem to both category of investors by providing them –Low brokerage
charges, low a/c opening charges, provides cash exposure facility, in order to provide
financial assistance to those investors having lack o funds to invest in capital market.
On the other hand SBI CAPSEC provides 24*7 basis connectivity to its investors
through on line & off line facility. And the most prominent privilege i.e. Relationship
Manager; in order to develop confidence to those investors who are not aware to the
security trading.
Apart of that Indiabulls have a diversified business therefore their
concentration level is also spread over their multipurpose business. While SBI
CAPSEC have specialized one, so there concentration level is too high on the share
market only. So we can conclude that investors should rely on the services provided by
SBI CAPSEC in long run.
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Recommendations:
In our survey of prospective investor’s preferences and their attitude towards share
trading, we found that the majority of prospective investors from the sample i.e.60%
want to invest in the capital market and 40% of the samples are of indifferent attitude.
And out of 60% who are invested in stock market 20 % have their Demat a/c in SBI
CAPSEC while 80% investors are with others.
It is suggested to SBI CAPSEC that it should not only target
these 35% investors related to India bulls, rather SBI CAPSEC should target 60% of
the sample that indicates to those investors who are of indifferent attitude.
Also SBI CAPSEC should maintain the same efficient network availing the
competitiveness and widening the network in order to get the top most position.
Other Recommendations
1. Strong Need Of Brand Building
2. Promotional Strategies
3. Solid Network Required To Develop The Business Further
4. Make The Branch Self Informative
1) Promotional Strategies
Press publicity:
Outdoor publicity:
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Press publicity:
Paper inserts
Advertisements in newspaper (local and national).
Interest cards distribution
Mailers/personal invitations to selective section of the society
Outdoor publicity:
Banners in commercial areas and prime sites.
Air balloons at shopping complex.
Bus stands shelters.
Off site ATM for developing business
Advertisements on Dividers and Railings.
Media:
Local channel advertisement (cable TV scrolls)
Advertisements in news channels and business channels