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