Service Quality Analysis of SBI

A

PROJECT ON

SERVICE QUALITY ANALYSIS OF

STATE BANK OF INDIA

UNDER THE GUIDANCE OF

Mr. Imran Shaikh

Submitted byMr.Bhavesh Jain, Enrollment No. 108050592024,

Ms.Shilpa Parmar, Enrollment No.108050592038,

As per Banking Regulation Act, 1949

(section 5):

“The bank is the institutions which accept the deposits from the public, repay the same on their demands by cheques, demand draft or by order, for the purpose of investment and lending.”

1. Political/ Legal :

State provision of pensions

Government encouragement of savings and investment

Regulatory control and protection

2.Economic:

Personal and household disposable income Employment levels The rate of inflation Income tax levels and taxation structures Savings and investment levels and trends Stock market performance

3. Socio-cultural :

Changing attitude towards consumer credit

and debt Changing employment patterns Numbers of working women The ageing population Marriage/divorce/birth rates Consumption trends

4.Technological:

Process developments

Information storage and handling

Database system

Type: Public

Industry: Banking, Financial services

Founded: 1 July 1955

Headquarters: Mumbai, Maharashtra, India

Area served: World wide

Chairman:Mr. Pratip Chaudhuri

Products: Credit cards, Consumer banking, corporate banking, finance and insurance

Revenue: 147,843.92 crore (US$29.98 billion) (2011)

Operating income: 33,710.31 crore (US$6.84 billion) (2011)

Profit: 11,179.94 crore (US$2.27 billion) (2011)

Employees: 222,933 (2011)

Strength Aggression towards

development the existing standards by banks.

Strong regulatory impact by central Bank to all the banks.

Presence of intellectual capital to face the change in implementation with good quality.

Weakness Poor Technology

infrastructure. Ineffective risk measures. Presence of more number

of smaller banks that would likely to

be Impacted adversely

Opportunities Increasing Risk management

Expertise. Need significant Connection

among, business Credit & risk management and Information Technology.

Advancement of technologies. Strong Asset Base would help in bigger growth.

Threats Inability to meet the

additional Capital Requirements.

Loss of Capital to the entire banking system due to merger and acquisitions.

Huge investment in technology.

Bank: STATE BANK OF INDIA RANK 2010: 36 RANK 2009: 70 BRAND VALUE 2010: (Brand Value in $ millions) 4551 BRAND VALUE 2009:

1448

“Bhanu Pande, ET Bureau” Ranking

Review of literature In 1988, Parasuraman, Zeithaml and Berry

developed a multipleitemscale for measuring service quality called SERVQUAL. SERVQUAL is a generic instrument for measuring perceived service quality that is viewed as the degree and direction of discrepancy between consumers’ perceptions and expectations.

The SERVQUAL scale was employed to measure the service quality in an electric, banking secter and gas utility company (Babakus and Boller, 1992) as well as restaurants (Bojanic andRosen, 1994; Fu, 1999).

Scope of the study:

The study would try to throw some insights into the existing services provided by the banks and the gap between the customer expectations, perceptions and the actual state of performance. The results of the study would be able to recognize the lacunae in the system and thus provide key areas where improvement is required for better performance and success ratio.

Research design: Descriptive

Research Objectives: To find out the level of expectation and the level of perception of the

customers from the services offered by the banks.

To compare the level of perception and expectation of the services offered by the bank.

To know the customer faces different technical problem while using different technical product of SBI.

To know which service quality dimension the bank is performing well and in which dimension it needs improvement

Sampling Design: Sample Area: : Surat Sample size: 100 SBI customers Sampling Method: Non- Probability Convenience Sampling

Data Source: Primary data Secondary data

Research tools: SERVQUAL Instrument and Gap Analysis

5 Dimension of SERVQUAL Instrument Tangible

Reliability

Responsiveness

Assurance

Empathy

Limitations of the Study:

Respondents may give biased answers for the required data. Some of the respondents did not like to respond.

As the samples were taken from the Surat region, the finding of the study does not apply to any other part of the state.

Inadequate time was the major constraint during the whole project.

Beneficiaries of Project:

Beneficiary of this project is to the bank, to improve the customer satisfaction in the dimension in which they are lagging.

Key findings and analysis will helpful to them for provide better services to customers.

For researchers, to know the competitive advantage of the banks and their services.

Data Analysis and Interpretation

Tangible Dimension

Q.1 Modern looking equipments

48 9

33

46

0

10

20

30

40

50

No Of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.1

Q.3 Net Appearing Employees at the Desk.

13

55

16 14

2

0102030405060

No Of Respondent

s

1 2 3 4 5

Satisfaction Level

Ques.3

Reliability Dimensions

Q.6) Showing sincere interest in solving a customer’s problems.

48

34

116

10

10

20

30

40

50

No.of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.6

Q.9) Insisting on error- free records.

37

14

46

30

0

10

20

30

40

50

No Of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.9

Responsiveness Dimensions

Q.11) Employees giving prompt service to customers.

1318

12

47

10

0

10

20

30

40

50

No. of Respondent

s

1 2 3 4 5

Satisfaction Level

Ques.11

Q.12) Employees always being willing to help customers

51

36

6 70

0102030405060

No. Of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.12

Assurance Dimension

Q.14) Employees of the bank instill confidence in the customers.

312 14

62

9

0

20

40

60

80

No of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.14

Q.16) Employees being consistently courteous with their customers.

62

26

3 6 3010203040506070

No. Of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.16

Empathy Dimension

Q.19) Operating hours convenient to all their customers.

210 12

51

25

0

102030405060

No Of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.19

Q.20) Employees giving customers personal attention.

49

35

97

00

10

20

30

40

50

No Of Responde

nts

1 2 3 4 5

Satisfaction Level

Ques.20

Five Dimensions Chart

5.00

30.00

38.00

10.00

17.00

0

5

10

15

20

25

30

35

40

No. of Respondence

Tangibles Reliability Responsiveness Assurance Empathy

Dimension

Five Dimension Chart

Conclusion SBI Bank is performing well in two services first is

modern looking equipments service and others is customers are feeling safe in their transactions.

SBI Bank is not performing well in three service mainly first is bank not showing sincere interest in solving a customer’s problems, second bank not telling the customers exactly when services will be performed and Third is bank is not always being willing to help customers.

SBI Bank is performing well at moderate level in two service first is employees are never too busy to respond to customers’ requests and second is the employees understanding the specific needs of customers.

In overall Conclusion we can tell that bank Reliability and Responsiveness dimensions are very weak so to satisfy its customers the bank has to improve the service related to this dimensions.

Recommendations

SBI Bank has to improve mainly two dimension related service reliability and responsiveness.

SBI bank should keep in mind four factors Promptness, Willingness, Competency and Understanding because this four factors are very important for any banking industry.

SBI Bank has to concentrate four service to improve that service-

A. Showing sincere interest in solving a customer’s problems

B. Employees telling customers exactly when service will be performed

C. Employees always being willing to help customers

SBI should deemphasize on factor Promptness as in this factor they are performing well, but these factors have less importance as compared to other factors.

Donald R. Cooper & Pamela S. Schindler, “Business research method” Tata Mac

Grow Hill, 2008 Kotler Philip, Marketing Management,

New Delhi, 11th Edition, Prentice Hall of India. 2003

WEBSITE http://finance.indiamart.com,india

finance and investment,Julay 7, 2000 http://www.rbi.org.in,Scripts http://www.rbi.org.in,history,March 7

2006 http:// www.statebankofindia.com