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Summer Training Report
On
SBI OFFERS Vs CUSTOMER EXPECTATION
AT
STATE BANK OF INDIA
Jatni
PREPARED BY
MAHESH SATAPATHY
ENROLLMENT NO-12DM050
UNDER THE GUIDANCE OF
AS PARTIAL FULFILLMENT OF PGDM PROGRAM OF IMIS, BBSR
INSTITUTE OF MANAGEMENT AND INFORMATION SCIENCE
BHUBANESWAR
EXTERNAL GUIDE
MR.W.V Lakshman Rao
Chief Manager
State Bank of India,
Jatni,
INTERNAL GUIDE
PROF Surya Dev
Dean CAD
IMIS,
Bhubaneswar
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Contents
List of Items in the Project Report Page no
Certificate 1
Declaration 3
Acknowledgement 4
List of charts 5
Introduction 6
Executive Summary 7
Chapter - 1
About the company 8
Analysis of banking Industry 15
Chapter - 2
Theory 26
Objective and Scope, Methodology 30
Sampling and data collection 31
Chapter-3
Data Analysis and its interpretation 32
Observations 40Recommendation 41
Conclusion 42
Bibliography 43
Annexure 44
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DECLARATION
I, Mahesh Satapathy student of Post Graduate Diploma in Management of Institute of
Management & Information Science bearing enrollment number 12DM050 declare that the
project entitled SBI OFFERS Vs. CUSTOMER EXPECTATION submitted to State Bank
of India, JATNI BRANCH is an original record of work done by me as a part of partial
Internship Study of PGDM program of IMIS, Bhubaneswar as given by the State Bank of
India.
Date: Mahesh Satapathy
Place: PGDM (2012-2014)
Enrollment No: 12DM050
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Acknowledgement
I would like to take the privilege of acknowledging each and every one for the guidance,
concern, inspiration, encouragement, valuable ideas & for showing the right path to proceed
through the project.
At first I would like to thank Mr Ishwar Chandra Sahu (HR, LHO) Bhubaneswar for
assigning me this topic.
I am also grateful to Mr.W.V Lakshman Rao(Chief Manager, Jatni Branch) and Mr.R.K
Pattnaik(Manager P.B.D) my external guide for giving all the required facilities and knowledge
to carry out the project.
I would be doing injustice if I dont thank Mr. Babu Ram Parida(AGM,CS), Mr. Rah ul
Samanta, Mr.Binod Bisoi , Miss Nutan Prasad who guided me throughout the project furnishingmy skills and inspired me to go beyond my project during this internship term.
I would also like to show appreciation to Prof. Surya Dev(Internal Guide), Prof. Chunku
Pani,Prof A.K Mishra, Prof. R.N Pattanayak , Dr M.K Pal and Prof. Tanmoy De for his excellent
guidance & his interest towards the project for the past two months. Without their motivation and
consistent support this project could not have materialized.
I am grateful to my parents for supporting & giving me the confidence to complete the
project successfully.
Apart from the above mentioned people, I would like to thank all the people who have
co-operated in different places like Bhubaneswar and Jatni for the completion of the summer
internship program.
I dedicated my work to my Lord Bhagwan Sri Satya Sai Baba who was constantly with me for
this endeavor without whom the project would not have seen the light of the day.
Date: Mahesh Satapathy
Place: 12DM050
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Executive Summary
Banks form the major backbone of our economy. A number of leading economists have con-
firmed the fact that the amount of capital available in India for investment is surprisingly and
inexplicably large. Only we need exploiting this idle capital. Who else can exploit it, if not
banks? Both in rural and urban areas, huge amounts of money are wasted on celebrations like
marriages and births. If banks can offer handsome interest on savings, people can be induced to
direct their savings from wasteful activities to banks. Promoting attractive deposit schemes needs
some very active work on the part of the banks, but it can certainly mobilize a large amount of
saving for capital formation.
Hence, this study was meant to know the level of expectation of people for the variousbanking products and their satisfaction level. Banking products form a part of our vast financial
system hence their development is possible only if the customers are happy and satisfied. Butthere is a lot of difference between a banking product and a normal product, the bankingproducts are primarily a intangible product, hence, it is tough to measure its satisfaction level forthem.
This factor creates gap between what the organization is offering and what the customeris expecting, this gap can never be deleted only it can be reduced by getting to know the mindsetof the customer and what factors will make him happy.Therefore the study aims to find the gap between the offerings and the expectation.
There are 255 products in total what SBI is offering. These can be divided into 3
main categories they are: Asset (all Loans) Liability (all Deposits) Alternate channels (ATM,
Debit cards, internet banking, mobile banking, CDM). The Project mainly focused on collecting
data through Questionnaire method. The of secondary information was limited to understanding
the products. All the responses were collected tabulated in a spreadsheet and various statistical
tools were applied. The main findings of the survey were that were not much gap between the
offering and customer expectations.
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Executive Summary
Banks form the major backbone of our economy. A number of leading economists have con-
firmed the fact that the amount of capital available in India for investment is surprisingly and
inexplicably large. Only we need exploiting this idle capital. Who else can exploit it, if not
banks? Both in rural and urban areas, huge amounts of money are wasted on celebrations like
marriages and births. If banks can offer handsome interest on savings, people can be induced to
direct their savings from wasteful activities to banks. Promoting attractive deposit schemes needs
some very active work on the part of the banks, but it can certainly mobilize a large amount of
saving for capital formation.
Hence this study was meant to know the level of expectation of people for the variousbanking products and their satisfaction level. Banking products form a part of our vast financial
system hence their development is possible only if the customers are happy and satisfied. Butthere is a lot of difference between a banking product and a normal product, the bankingproducts are primarily a intangible product hence it is tough to measure its satisfaction level forthem.
This tangibility factor creates gap between what the organization is offering and what thecustomer is expecting, the gap can never be deleted only it can be reduced by getting to know themindset of the customer and what factors will make him happy.Therefore the study aims to bridge the gap between the offerings and the expectation.
There are 255 products in total what SBI is offering. Hence the Study would be
cumbersome if we take all that into consideration. Hence all of them are divided into 3 main
headings they are: Asset (all Loans) Liability (all Deposits) Alternate channels (ATM, Debit
cards, internet banking, mobile banking, CDM). The Project mainly focused on collecting only
primary data through Questionnaire method, use of secondary information is limited however
Secondary information was prime most to carry on the Questionnaire survey. All the responses
were collected tabulated in a spreadsheet and various statistical tools were applied. And all the
requisites graphs and pie-charts were drawn. Various interpretations were made and the findings
were jotted down. The main findings of the survey were that were not much gap between the
offering and customer expectations.
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Chapter-1
About the company
INTRODUCTION
The Reserve Bank of India had been attempting to help the villagers through the statecooperative banks but the extent of its assistance was very limited. At the same time, the need tohelp the farmers in all possible ways so as to increase agricultural production has been mostpressing since independence. The All India Rural Credit Survey Committee (AIRCSC)recommended the setting up of a State Bank of India, a commercial banking Institution, with the
special purpose of stimulating banking development in rural areas. The State Bank of India wasset up in July 1, 1955, when it took over the assets and liabilities of the former Imperial Bank ofIndia.
Capital
The State Bank of India has authorised share capital of Rs. 20 crores and an issued share capitalof Rs. 5,625 crores which has been allotted to the Reserve Bank of India. The shares of the SBIare held by the Reserve Bank of India, insurance companies and the general public who wereformerly shareholders of the Imperial Bank of India. The State Bank of India and its associatebanks are engaged in the economic development of the country through a wide network of
15,003 branches and 27000 above ATM spread over the country. After 1955, there has been asteady increase in the assets and liabilities of the State Bank of India. Their revenue is at present36.950 US$ Billion. And total profits of 3.202US$ billion. The present stock price of SBI is Rs2286.
Management
The management of the State Bank vests in a Central Board constituted thus: A Chairman and aVice-chairman appointed by the Central Government in consultation with the Reserve Bank; notmore than two Managing Directors appointed by the Central Board with the approval of theCentral Government; six Directors elected by the shareholders other than the Reserve Bank;
eight Directors nominated by the Central Government in consultation with the Reserve Bank torepresent territorial and economic interests, not less than two of whom shall have specialknowledge of the working of co-operative institutions and of the rural economy; one Directornominated by the Central Government; and one Director nominated by the Reserve Bank. Thepresent chairman isMr. Pradip Choudhry.
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Functions
The State Bank of India performs all the functions of a commercial bank and acts as an agent ofthe Reserve Bank in those places were the latter has no branch offices. Further it is required to
play a special role in rural credit, namely, promoting banking habits in the rural areas, mobilizingrural savings and catering to their needs. It is expected to look after the banking development inthe country. It provides financial assistance to the small scale industries and the co-operativeinstitutions.
A. Central Banking Functions
Though the State Bank is not the Central Bank of the country, yet it acts as the agent of theReserve Bank in all those places where the latter does not have its own branches. As agent to theReserve Bank, the State Bank performs some very important functions:
1. It acts as the Bankers Bank: It receives deposits from the commercial banks and also gives
loans to them on demand. The State Bank rediscounts the bills of the commercial banks. It alsoacts as the clearing-house for the other commercial banks.In addition to this the State Bank also provides cheap remittance facilities to the commercialbanks.
2. It acts as the Governments Banker: It collects money from the public on behalf of thegovernment and also makes payments in accordance with its instructions. The bank also managesthe public debt of the Central and the State Governments.
B. Ordinary Banking Functions
The ordinary banking functions of the State Bank are as follows:
1. Receiving Deposits from the Public: Like other commercial banks, the State Bank alsoreceives different types of deposits from the public.
2. Investment in Securities: Like other commercial banks, the State Bank invests its surplusfunds in the Securities of Government of India, the State Governments, Railway Securities,Securities of Corporations and Treasury Bills.
3. Loans and Advances to Businessmen: The State Bank grants loans and advancesto businessmen against the security of government papers, exchange bills, approvedpromissory notes and title deeds.
4. Foreign Banking: In recent years, the State Bank of India has extended its foreign bankingbusiness. It has opened its branches in important world banking centres, such as Nassau,Singapore, Hong Kong, London, New York, Frankfurt etc. The Banks foreign business isexpanding every year. It has been able to give a new direction to its foreign business. The StateBank, in collaboration with leading foreign banks, has also been extending loans to foreigngovernments.
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PRODUCT AND SERVICES OFFERED BY SBI
SBI offers Corporate and Retail Internet Banking Products and Other Value Added Services
PRODUCTS
1-KHATA: Khata enables to access account information anywhere anytime.
Advantages:
Enquiry rights on the accounts Facility to view account information and download account statement of your account. Suitable for single user operated accounts.
2-KHATA PLUS:Khata Plus enables multiple people in your business to access account information anywhereanytime.
Advantages:Enquiry rights on the accounts. Facility to view and download account statement of youraccounts maintained at any SBI branch. All the authorized users from the corporate get acomplete view of information.3-SARAL: Single user operated, user friendly and simple.Transaction rights on the accounts.Facility to view account information and download account statement of the account.Facility to transfer funds toSBI accounts (other than own accounts) --- Consolidated limit per day Rs.5.00 LacsOther Bank Accounts (RTGS/NEFT) --- Consolidated limit per day Rs.5.00 Lacs
Merchant Payments --- Consolidated limit per day Rs.5.00 Lacs
4-VYAPAAR:
Exercise the privilege to transact over the internet, make payments the cyber way, conductbusiness in style.Equip with Vyapaar and facilitate your business needs.Features built into this module for your privilege:
All Online transactional functionalities offered, e.g., fund transfers, third party payments,draft issues etc.
Per transaction limit is of Rs.50 lakhs and there is no restriction on number oftransactions.
Facility of Interbank and Inter branch funds transferred enabled. File mode transactions enabled.(single debit- multiple credits for salary payments, vendor
payments etc.) Supports banking with single branch. Administrator module for better control and security.
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5-VISTAAR:
Freedom to operate your business at any geographical location from wherever you desire.Freedom to take urgent financial decisions from any situation. Freedom to empower your peopleto conduct business the modern way yet within the framework laid down by you. Freedom from
branch dependency. Vistaar provides an all-round business solution, online. Benefits of themodule which will provide you the freedom:Access to accounts across SBI branches with a single sign on.All Online transactional functionalities offered, e.g., fund transfers, third party payments, draftissues etc.Facility of Interbank and Inter branch funds transferred enabled.Receive payments over the internet e.g., sales receivables, bills due.File mode transactions enabled.(single debit- multiple credits for salary payments, vendorpayments etc.)System to system Integration to minimize manual intervention.Elaborate user hierarchy with filtered access and delegated rights.
Regulator will set up business rules to facilitate financial transactions over Internet.Administrator module for setting up control and security features.Provision for 'Auditor' role to facilitate audit of accounts and transactions post facto.
6-ELECTRONIC VENDOR FINANCE:Electronic Vendor Financing Scheme (e-VFS ) and Electronic Dealer Financing Scheme (e-DFS)State Bank of India introduces Supply Chain Finance by leveraging its state of the art technologyfor the convenience of the customers. SCF will strengthen the relationship of SBI with theCorporate World by financing their supply chain partners.
A Web based platform which:
Provides convenient paperless banking. Ensures Real time online transfer of funds and MIS. Is fully customizable as per your business requirement. Is capable of being fully integrated with Corporate Enterprise Resource Planning
Software (ERP)/SAP.
Two products are offered on the supply chain to cater to the needs of both vendors and
dealers:
Electronic Vendor Financing Scheme (e-VFS): Financing Vendors/Suppliers for theirreceivables from Corporate buyers which are Industry Majors (IMs). The Corporatebuyers can upload the details of invoices raised by their Vendors on our Bank's onlineplatform which results in instant credit to Vendor account.
Electronic Dealer Financing Scheme (e-DFS): Financing Dealers for their purchasesfrom Corporate Sellers. Corporate Sellers make online requests to our Bank's onlineplatform for debiting dealer's account by providing details of invoices raised on theirDealers which results in immediate credit to Corporate seller's account.
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All product offerings under Channel Finance are designed to ensure efficient management ofworking capital cycle and sustained growth and profitability of business partner.
BENEFITS ACROSS THE SUPPLY CHAIN:
Buyer Seller Bank
Reduce the cost ofgoods purchased
Reduce the cost ofcapital throughimproved Days SalesOutstanding (DSO)and lower financecosts.
Build stronger,collaborativerelationships withcustomers.
Reduce workingcapital requirementsthrough improvedDays Payable
Outstanding (DPO)
Generate flexible,predictable cash flow
Enhance customerretention
Enjoy a more stablesupply base
Gain access to low-costfinance rates.
Increase bottom line bysupporting customersentire supply chainfrom end to end.
6-DIRECT DEBIT: Direct debit is a facility given to Corporates (Suppliers) having Vistaarfacility and supplying goods to their Dealers (Dealers need not be availing INB facility) wherebythe Corporate (Supplier) can directly debit the accounts of their dealers maintained at SBIbranches at different locations.In this facility the Supplier and the Bank will enter in to a bipartite agreement, based on which,the Dealer will provide a mandate to the supplier for debiting his account up to a specific limit.
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SERVICES
1-ACCOUNT VIEW/STATEMENT: Online SBI can generate an account statement for a daterange for any of your accounts. The statement includes transaction details, opening, closing andaccumulated balance in the account.
2-FUNDS TRANSFER: You can now avail a bouquet of funds transfer services throughInternet banking
1. Transfer funds within your own accounts2. Transfer funds to third party account held in the same bank3. Make an Interbank funds transfer to any account held in any bank including State Bank
Group4. Pay any VISA credit card bill5. Transfer funds to religious and Charitable institutions6. Record standing instructions to transfer a fixed amount at a scheduled frequency for a
period not exceeding one year7. Transfer funds to NRE PIS accounts to facilitate online trading3-DEMAND DRAFT REQUEST: Online SBI enables customers to issue demand drafts online.Customer has the option to collect the draft from branch or give his mandate to dispatch the draftby courier to the beneficiary.
4-UTILITY BILL PAYMENT:
Online Pay: Using SBI e-PAY you can 'see and pay' your various bills online, directly from yourSBI Account. You can pay telephone, electricity, insurance, credit card and other bills - from the
comfort of your home or office, 24 hours a day, 365 days a yearAuto Pay: You can also set up Auto Pay instructions with an upper limit to ensure that your billsare paid automatically whenever they are due. The upper limit ensures that only bills within thespecified limit are paid automatically, thereby providing you complete control over thesepayments.
5-BULK TRANSACTION THROUGH FILE UPLOAD:
To facilitate bulk transactions, OnlineSBI provides for upload of files containing followingfinancial and non financial transactions:
1.
Inter and Intra Bank fund transfers- Example Salary Payments, Vendor Payments, etc.2. Request for issue of demand drafts3. Tax payments- CBDT and CBEC4. Direct debit whereby suppliers debit the account of the dealers5. Beneficiary- addition and deletion6. Billers registration7. Top up of pre paid cards8. Automation of file uploads from customer ERP to INB System is also possible.
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This is applicable to Corporates availing Vyapaar and Vistaar facilities.
6-DEMAT VIEW FACILITY:
Corporate Internet Banking enables you to view your Corporate Demat account online. You can
view the account details, and generate the following statements online.
Statement of holding Statement of transactions Statement of billing
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Chapter-2
Theory
This project is meant to measure the customer expectations of various Banking products and to
recommend the bank how it can bridge the gap of what it is offering and what the customer is
expecting. Before that let us understand the concept of consumer behavior and the theory of Gap
Analysis and the Factors which affect consumer expectation. Consumer behavior may be defined
as the decision-making process and the physical activity involved in evaluating the various
aspects of goods or services in order to initiate a purchase. What we buy, how we buy, when we
buy, in how much quantity we buy depends on our perception, self-concept, and attitude of the
seller, belief values and many other factors which are internal and external to us. While buying,
we also consider whether to buy or not to buy, and from which source or seller to buy. Therefore,
the work of the marketers is to understand the needs of different consumers and having
understood their different behaviors after an in-depth study of their internal and external
environment, they should formulate plans and strategies for marketing their product. Customer
expectations are beliefs about service delivery that serve as standards or reference points against
which performance is judged. Because customers compare their perceptions of performance with
these reference points when evaluating service quality, thorough knowledge about customer
expectations is critical to services marketers. Knowing what the customer expects is the first andpossibly most critical step in delivering good quality service. Being wrong about what customers
want can mean losing a customers business when another company hits the target exactly. Being
wrong can also mean expending money, time and other resources on things that do not count to
the customer. Being wrong can even mean not surviving in a fiercely competitive market.
Among the aspects of expectations that need to be explored and understood for successful
services marketing are the following: what types of expectation standards do customers hold
about services? What factors most influence the formation of these expectations? What role do
these factors play in changing expectations? How can a service company meet or exceed
customer expectations?
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Customer Gap
The central focus of the gaps model is the customer gap, the difference between customer
expectations and perceptions. Expectations are the reference paints customers have coming
in to a service experience; perceptions reflect the service as actually received. The idea is that
firms will want to close this gap - between what is expected and what is received - to satisfy
their customers and build long - term relationships with them. To close this all - important
customer gap, the model suggests that four other gaps - the provider gaps- need to be closed.
The figure depicts this model. .
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THE PROVIDER GAPS
The provider gaps are the underlying causes behind the customer gap:
Gap 1 - Not knowing what customers expect.
Gap 2 - Not selecting the right service designs and standards.
Gap 3 - Not delivering to service standards.
Gap 4 - Not matching performance to promises.
A primary cause in many firms for not meeting customers' expectations is that the firm lacksaccurate understanding of exactly what those expectations are. A gap exists (gap 1) between'company perceptions of customer expectations and what customers actually expect.
Even if a firm does have a clear understanding of its customers' expectations, there still maybe problems if that understanding is not translated into customer-driven service designs and
standards (gap 2).
Once service designs and standards are in place, it would seem the firm is well on its way todelivering high-quality services. This is true but still not enough. There must be systems,processes, and people in place to ensure that service delivery actually matches (or is evenbetter than) the designs and standards in place (gap 3).
Finally, with everything in place to effectively meet or exceed customer expectations, the firm
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must ensure that what is promised to customers matches what is delivered (gap 4}.
CLOSING THE CUSTOMER GAP
In a broad sense, the gaps model says that a service marketer must first close the customergap, shown in the accompanying figure, between customer perceptions and expectations, To
do so, the provider must close the four provider gaps, or discrepancies within the organisationthat inhibit delivery of quality service. The gaps model focuses on strategies and processesthat firms can employ to drive service excellence.
THE CUSTOMER GAP
The figure shows a pair of boxes that correspond to two concepts - customer expectationsand customer perceptions - that play a major role in services marketing. Customer perceptionsare subjective assessments of actual service experiences,
Customer expectations are the standards of performance against which service experiencesare compared and are often formulated in terms of what a customer believes should or will
happen. For example, when you visit an expensive restaurant, you expect a certain level ofservice, one that is considerably different from the level you would expect in a fast-foodrestaurant.
The sources of customer expectations consist of marketer-controlled factors (such as pricing,advertising, sales promises) as well as factors that the marketer has limited ability to affect(innate personal needs, word-of -mouth communications, competitive offerings). In a perfectworld, expectations and perceptions would be identical:
Customers would perceive that they receive what they thought they would and should. Inpractice these concepts are often, even usually, separated by some distance. Broadly, it is
goal of services marketing to bridge this distance, and we devote virtually the entire text todescribing strategies and practices designed to close this customer gap.Considerable evidence exists that consumer evaluation processes differ for goods and servicesand that these differences affect the way service providers market their organizations.Unfortunately, much of what is known and written about consumer evaluation processes pertainsspecifically to goods. The assumption appears to .be that services, if not identical to goods,are at least similar enough in the consumer's mind that they are chosen and evaluated in thesame manner. The unique characteristics of services viz., intangibility, heterogeneity,inseparability of production and consumption, and perishability- necessitate different consumerevaluation processes from those used when assessing goods.
Because customer satisfaction and customer focus are so critical to competitiveness of firms,
any company interested in delivering quality service must begin with a clear understanding ofits customers.
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Objective
To stream line all the 255 products into 3 basic areas i.e. Deposits or liability products,Assets or loans and Alternate channels of SBI.
To do a survey to gain knowledge about the extent of acceptability of the products. To gain a knowledge regarding their satisfaction level and customer expectation of the
customers for the SBI products.
To analyze the reasons behind this Gap and to recommend or suggest any Solution for theproblem.
Scope
To ensure that the project report is useful and could become a source of reference for thebank.
The present data is with respect to the products offered by State bank of India. The data collected here is specific to the selected branches of the various banks in
Bhubaneswar and Jatni as per the instructions of the organization.
The data and information collected here is with the help of Primary methods of Datacollection i.e. Questionnaire Surveys and Face to face interviews with the customers.
Methodology
For this project i.e. SBI offers Vs. customer expectations, the methodology used is stated below:
The research carried out for this project is descriptive in nature. It required the banksinternal data regarding customer who had availed different types of banking products.
The 255 product category was streamlined and divided into 3 major categories i.e. Asset (allLoans) Liability (all Deposits) Alternate channels (ATM, Debit cards, internet banking,
mobile banking, CDM).
An exhaustive study of the general perceptions of the customers. For this purpose, primarystudy was used more in the form of Questionnaire.
Two questionnaires were designed one for the deposits and loans and other one for thealternate channels.
This gave me an opportunity to gain insight about the acceptability/popularity of variousSBIs products.
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Sampling and data collection
The sample size for the study was 250. As the samples were randomly scattered the method of convenient sampling was
adopted.
Collection of data was done with the help of a Questionnaire. The medium ofcollection mainly consisted of two prime mediums through different websites like
Surveymonkey.com etc. and with face to face interaction with the customers.
Data Analysis and Data Interpretation:
The data was analyzed and I was able to analyze customers views, ideas andopinions related to its Products.
Interpretation of data was done by using statistical tools like Pie diagrams, Bargraphs, and also using quantitative techniques (by using these techniques) accurate
information was obtained.
Classification & tabulation of data:
The data thus collected were classified according to the categories, counting sheets &
tables were prepared. The resultant tables were one dimensional, two dimensional.
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Chapter-3
Data Analysis with its interpretation
Fig 1
From the above pie chart it is can be concluded that the Customers were mainly from the young
generation and they are between the age group of 20 to 30 and they form the 85% of the total
sample size.
Fig 2
The pie chart shows the Customer Gender Proportion. As it is seen that Male form the major
chunk from the total respondents. They form the 72% of the total sample size. This can be due tobecause the banking transactions are generally done by the Male as they are the people who
stand in lines and get their things done. It is because of the traditional way of thinking of the
Indian Customers. The Female were just one third of the total sample size.
85%
2%12%
1%Customer Age Spread
20 to 30
30 to 40
40 to 50
above 50
28%
72%
Customer gender proportion
female
male
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Fig 3
The above pie chart can be analyzed that the large chunk of the respondents visits are less only 0
to 2 times. This can be explained that due to massive developments in the banking services
various alternate channels are introduced which saves time and money and makes the
transactions easier and quicker. This discourages the customers not to visit the bank premise and
rather use the alternate channels like ATM, Internet Banking etc. while others who were frequent
visitors were in the Senior citizens.
Fig 3
Major respondents were the employees of different organization and this is obvious because
many of them had their salary account in the State banks, and in addition to that they use various
other products like Insurance, Fixed Deposits. And the private service were very less because
they mainly have their salary account in private banks.
36%
10%
3%
48%
3%Occupation Spread
Student
Professional
private service
Employee
Research Scholar
74%
10%
16%
Frequency of visits to the
Bank premise
0 to 2 times
More than 5 times
3 to 5 times
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Fig 4
The above chart shows that depositors forms the major section of the respondents i.e 64% as
these people generally come often to the bank premise hence they are likely to be the major
sample. While the borrowers were few as they rarely visit the bank. Apart from them the 32% of
the respondents were both nature borrowers and also depositors.
Fig 5
The above histogram shows the different factors which result into the different levels of the
expectation of the customer for different loan products. The expectation were generally high for
various parameters but for very less factors it was low and the main reason was because of some
bad experience which customer might have undergone or it may be because of some service
failur
64%
4%
32%
Nature of transaction
Depositor
Borrower
Both
0246
81012141618
Factors which determine the expectation levels of the customer for the
Loan products
1
2
3
4
5
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Fig 6
The above histogram shows the different factors which result into the different levels of the
expectation of the customer for different Deposits products. The expectation were generally high
for various parameters but for very less factors it was low and the main reason was because of
some bad experience which customer might have undergone or it may be because of someservice failure.
0
5
10
15
20
25
30
35
40
Factors which determine the expectation levels of the customer for the
deposit products
1
2
3
4
5
22%
29%30%
15%
4%
Product Suiting the Customer in loan
category
Personal Loan
Educational Loan
Home Loan
Business Loan
others
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Fig 7
30% of the customers chose home loans as the product which suits them and also educational
loan was almost equal in percentage it is because the interest rate is always lesser than other
banks and also other schemes are very much benefit the customer.
Fig 8
87% of the customers chose savings account as the product which suits them because of the
various factors like the Average Quarterly balance is lesser in SBI and also the other services are
better in SBI as compared to other banks.
87%
10%3%
Deposit Product that suits the
customer
Savings account
Fixed Deposit
Recurring account
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Fig 9
Alternate channels form the major products which the customer uses. From the above chart it is
clearly seen that the ATM dominates among other channels it is mainly because of its large
presence every nook and corner of the city and also it was established much before, while all
others are new.
Fig 10
It is again the same that ATM is again the best product that suits the customers the most. They
form 65% of the sample size.
82%
3%
2%6%
3%
4%
0%
Usage of Alternate ChannelsUsage of Alternate Channels
ATM
Internet banking
Point of sales
Credit Card
passbook updating machines
Green channel
Cash deposit machines
65%
33%
2%0%
0%
0%0%
Product that suits customers in
Alternate channels category
ATM
Internet banking
Point of sales
Credit Card
passbook updating
machines
Green channel
Cash deposit machines
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Fig 11
Most people give the ratings to the different factors of the alternate channels the high while only
few people rate it as low again it could be because of some bitter experience or some kind of
service failure.
Fig 12
Major chunk of the respondent i.e. 68% were influenced to go for SBI because of their family
members. While the 27% were because of their influence because of friends.
0
20
40
60
80
100
120
user friendly low comission
charge
reliability low error high speed
functioning
less interest
Ratings of the factors in Alternate channels
1
2
3
4
5
68%
27%
1%
4%
Factors influenced to Choose SBI
Family Member
Friends
Advertisement
Others
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Fig 13
Major chunk of the respondents i.e. 59% rated SBI to be average while one third of the sample
rated it as to be very good.
Fig 14
87% of the sample told that they will recommend others to go for SBI while 5% of them, said
they wont. While just 13% were confused.
32%
59%
9% 0% 0%
Overall rating of SBI over others banks
Very Good
Good
Average
bad
worst
82%
5%
13%
Recommending others to go for SBI
Yes
No
May be
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Fig 15
41% of the samples told their expectation were completely fulfilled while 31% said their
expectation was partially fulfilled.
Observations
SBI was preferred generally by the elder people i.e. above 30s of age because of theirloyalty to it.
Most of the customers said that they dont like the long queues in State Bank of India. Itis always disorganized and dirty.
When asked to rate the service delivery and the customer service from the employeepoint of contact most of the people rated it below average as they found the behavior of
the employees to be rough and not what it expected be.
They rated the most of the products to be good and very good because of its goodfeatures for example they liked the low interest rate charged on the different loans like
Home loans and Educational Loans as compared to the other banks.
A large chunk of people rated SBI to be good over other banks. When asked the customers if they would like to shift to other banks they said if their
grievances are not met they can move to other banks.
Customers are not satisfied with the condition of ATM all throughout the city; Most ofthem seem to be out of order or out of cash. For example one near Nuagaon Municipality
Road installed recently is closed.
Customers were unhappy with high TAT (turnaround time) taken during thedisbursement of the loan.
A large chunk of people said that they use SBI because of they were influenced by theirfamily members. Hence SBI could use this as their major weapon to get more and more
customers.
28%
41%
31%
Degree of fullfilment expectation
Partially
Completely
Average
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Recommendations
SBI was more preferred by the Elder class people. That means a large youth section isstill being missed out from their catch hold. They should try introducing some more new
and innovative features like they introduced the Welcome Kit feature.
SBI introduced the Token systems to mitigate the long queues which irritates a customerbut yet this is not in working in most of the big and major branch, and also some people
dont use because of lack of awareness.
There are sign boards where it is written Single window teller counter, this is not clearthere is no clarification regarding as to which is accepting deposits or which is giving
cash and clearing cheques. A customer always asks about this and gets irritated. Hence
there should proper demarcation of this basic information.
The customers service is poor during the peak periods, it is seen in Main branch BBSRwhen very few Teller counter actually working which results in slow and laggard service.
The bank should be ready to open up more counters seeing the traffic.
I dont think there is a need to make different slips relating to the deposits, withdrawal orCheques, they can be made standardized, with just a stamp of their branch code and name
on it. This can save lot of confusion and also the paper costs.
During my interaction with the customers it is noticed that they were unhappy with theway which employees behave with the customers, they take so much time just to do a
simple work like deposit and also they ask more documents than what is asked by the
banks.For example they ask more documents like other ID cards other than Adhaar and
electricity bill. This upsets the customer and gives an opportunity to shift to other banks.
Hence especially this happened in the Jatni Branch where the ladies who were in the
teller counterdont behave as what they are supposed to. This can be reason that they arenot trained properly. Banks should take stern steps regarding these and there should be a
continuous feedback system at the entrance whether they liked being served by the
particular Employee this can be great help in improving service.
As Alternate channels are major source of the banking services hence their presenceshould more felt, it is only seen for ATM while other channels are still not being seen in
everywhere.
Most of the ATMs are not working or they are out of cash hence bank should readilysolve the problem. It is seen that the security guards are not doing their job properly of
taking care of the Machine properly.
Cash deposit machines are not installed everywhere in the city. Their installation could bea great solution to most of the problems.
I would recommend that if ATM and CDMs are installed adjacent to each other than theout of cash problems will be solved both the machines can be linked and the cash being
deposited can go to the ATMs and hence various other operational costs can be saved.
Their expectations are fulfilled fully in most of the products.
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Limitations
Limits and restrictions are inherent in any study or research. This project was also marred by
some limitations stated below:
The project aims to cover only the various products of State Bank of India. Practically it is not possible to get the responses for all the 255 products because of time
constraint hence the study was generalized to the three broad categories.
The filtering of information by bank personnel of other banks due to time constraints becausethe project is based on practical knowledge.
The data collected for the project was limited only to Bhubaneswar and Jatni areas. Ignorant, non-cooperative and reluctant attitude of respondents was a major constraint in this
study. Hence there could be lot of response error in the study.
There may be some interpretational error on my part because analyzing the data requiredmathematical calculations and there might be certain calculation errors.
Conclusion
Studying the popularity and general perceptions of product of SBI gave me an insight as to what
strategies should be adopted by the bank which will help it improve its market share. From the
findings it can be clearly seen that SBIs market share is already high but there are certain crucial
points where the bank needs to work on in order to attract more customers.
It can be seen that most of the people who havent ch osen SBI
for availing products have cited the reason that they find the attitude of the bank officials to be
negative and repulsive. This is a very significant aspect of any organization because this is one of
the most important criterions which determine the satisfaction/dissatisfaction of customers.
Therefore, the bank needs to improve on this aspect. Moreover, the processing of loan and the
documentation procedure followed by the bank is quite lengthy and therefore, poses a major
drawback for the bank. If the processing time is shortened and the bank gives way for minimal
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documentation then this can prove to be of much use to the bank thus, increasing the number of
the people seeking its Loan products.
SBI is todays the largest bank in India just because of its large customer base which is because it
is the oldest bank. And also the brand makes It more popular among the masses. But customers
as we all know is never loyal to any company wherever he gets service he shifts to that. Hence he
never avoids paying extra for some benefit he is getting that is why most of the private sector
banks are giving a stiff competition to it for example HDFC bank are the leading because of its
facilities. SBI should provide specialize services to customers and customization should be the
aim of the bank.
Bibliography
Primary data collected: Questionnaires filled in by customers. Documents available from the Bank website: www.sbi.co.in. Information gathered from SBI officials. Information gathered from the below mentioned bank officials through face-to-face
conversation.
http://akhimbanotes.hpage.in/service_marketing_7043831.html en.wikipedia.org/wiki/State_Bank_of_India http://stockmusings.com/indian-banking-industry-structure-and-business-model/ http://www.marketing.org.au/?i=mhOLQLXYtU8=&t=jZS6ngCVPug=
http://akhimbanotes.hpage.in/service_marketing_7043831.htmlhttp://akhimbanotes.hpage.in/service_marketing_7043831.htmlhttp://stockmusings.com/indian-banking-industry-structure-and-business-model/http://www.marketing.org.au/?i=mhOLQLXYtU8=&t=jZS6ngCVPug=http://www.marketing.org.au/?i=mhOLQLXYtU8=&t=jZS6ngCVPug=http://stockmusings.com/indian-banking-industry-structure-and-business-model/http://akhimbanotes.hpage.in/service_marketing_7043831.html -
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ANNEXURE
Questionnaire for usage of alternate channels
This questionnaire is administered only to seek information regarding your perception about the banks
services. No part of this would be published in any forum. It is very confidential and only for project
purpose. Kindly be free to answer few questions below.
Help us to serve you better
Name: -
Cell no-.. Account no.
Sex: - (a) Male (b) Female
Age: - (a) 20 to 30 (b) 30 to 40 (c) 40 to 50 (d) Above 50
Occupation
(a) Business (b) Housewife (c) Professional (d) Student (d) Employee
(e) Others.
Educational Qualification
(a) High School (b) Graduation (c) Post graduation
(d)Others
Income (per month)(a) Less than Rs.10, 000/- (b) Rs. 10,000-20,000/ (c) Rs. 20,000/- to 50,000/
(d) Above Rs. 50, 000/
Q1 How long have you been using SBI Banking Service?
(a) 0-6 month (b) 6month-1 year (c) 1-2year (d) More than 2 year
Q2 Are you aware of the alternate channels of SBI?
a) Yes b) no c) may beQ3 Which one among the following do you use often?
(a) ATM (b) Credit card (c) Internet banking or corporate banking (d) Green channel counter (e)cash deposit machines (f) Pass book update machines (g) Point of sales
Q4 How far do you think these channels have matched your expectation?
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a) Completely b) partially c) average d) below average e) didnt fulfill
Q5 Please rates your satisfaction for the following?
factors 1 2 3 4 5
User friendly
Low
commission
charge
Reliability
Low error
High speed
functioning
Less interest
Q6 Who influenced you to bank with SBI?
(a) Family Member (b) Friends (c) Advertisement (d) Others.
Q7 How do you rate SBI over others?(a)very good (b) good (c) average (d) bad (e) worst
Q8 What influenced you to go for SBI Banking. ( Can answer more than one)
(a) Safety and security (b) convenience (c) certainty in return (d) others_______
Q9 How often have you faced any kind of service failure?
(a)Very Often b) often c) rarely d) very rarely e) never
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Q10 Are you aware of the using toll free numbers for customer service?
(a) Yes b) no c) may be
Q11 Had it been resolved quickly?
a) Yes b) no c) may be
Q12 Will you recommend your peers to go for this bank?
a) Yes b) no c) may be
Q13 Which of these suits you the most?
(a) ATM (b) Credit card (c) Internet banking or corporate banking (d) Green channel counter (e)
cash deposit machines (f) Pass book update machines (g) Point of sales
Q14 What in the above you like the most?
(a) Regular sms alerts (b) up to date transaction statement (c) Less commission (d) High speed access(e) Error free transaction (f) Others_______________
Q15 Which one of the following you use for your banking transaction?
(a) Alternate channels (b) Bank premise (c) both
Q16 What are the reasons behind choosing above option?
(a) High speed access (b) Convenience (c) Tangibility factor (d) Technically Ignorant (e) others Pleasespecify___________________
Any suggestions you have are welcomed
....Thank You..
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Questionnaire for usage of alternate channels
This questionnaire is administered only to seek information regarding your perception about the
banks services. No part of this would be published in any forum. It is very confidential and only forproject purpose. Kindly be free to answer few questions below.
Help us to serve you better
Name: -
Cell no-. Acc no-
Sex:- (a) Male (b) Female
Age:- (a) 20 to 30 (b) 30 to 40 (c) 40 to 50 (d) Above 50
Occupation(a) Business (b) Housewife (c) Professional (d) Student (d) Employee
(e) Others.
Educational Qualification
(a) High School (b) Graduation (c) Post graduation
(d)Others
Income (per month)(a) Less than Rs.10, 000/- (b) Rs. 10,000-20,000/ (c) Rs. 20,000/- to 50,000/
(d) Above Rs. 50, 000/
Q1 How long have you been using SBI Banking Service?
(a) 0-6 month (b) 6month-1 year (c) 1-2year (d) More than 2 year
Q2 Are you aware of the alternate channels of SBI?
b) Yes b) no c) may beQ3 Which one among the following do you use often?
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(a) ATM (b) Credit card (c) Internet banking or corporate banking (d) Green channelcounter (e) cash deposit machines (f) Pass book update machines (g) Point of sales
Q4 How far do you think these channels have matched your expectation?a) Completely b) partially c) average d) below average e) didnt fulfill
Q5 Please rates your satisfaction for the following?
factors 1 2 3 4 5
User friendly
Low
commission
charge
Reliability
Low error
High speed
functioning
Less interest
Q6 Who influenced you to bank with SBI?
(a) Family Member (b) Friends (c) Advertisement (d) Others.
Q7 How do you rate SBI over others?(a)very good (b) good (c) average (d) bad (e) worst
Q8 What influenced you to go for SBI Banking. ( Can answer more than one)
(b)Safety and security (b) convenience (c) certainty in return (d) others_______
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Q9 How often have you faced any kind of service failure?
(a)Very Often b) often c) rarely d) very rarely e) never
Q10 Are you aware of the customer service using toll free numbers?
(a) Yes b) no c) may be
Q11 Had it been resolved quickly?
b) Yes b) no c) may be
Q12 Will you recommend your peers to go for this bank?
b) Yes b) no c) may be
Q13 Which of the these suits you the most?
(a) ATM (b) Credit card (c) Internet banking or corporate banking (d) Green channelcounter (e) cash deposit machines (f) Pass book update machines (g) Point of sales
Q14 What in the above you like the most?
(b)Regular sms alerts (b) up to date transaction statement (c) Less commission (d) High speedaccess (e) Error free transaction (f) Others_______________
Q15 which one of the following you use for your banking transaction?
(b)Alternate channels (b) Bank premise (c) both
Q16 What are the reasons behind choosing above option?
(b)High speed access (b) Convenience (c) Tangibility factor (d) Technically Ignorant (e) othersPlease specify___________________
Any suggestions you have are welcomed