Table of Contents

Excutive Summary…………………………………………………………………...03

Interroduction…………………………………………………………………………04

Literature Review…………………………………………………………………….05

Objective of the study……………………………………………………………….05

Significance of the study……………………………………………………………05

Identify Variables……………………………………………………………………..06

Research Hypothesis………………………………………………………………..08

Resesearch Design……………………………………………………………………08

Data Analysis…………………………………………………………………………..10

Finding…………………………………………………………………………………….12

Recommendation……………………………………………………………………..12

Limitation of study……………………………………………………………………13

Bibliography…………………………………………………………………………….13

Questionnaire…………………………………………………………………………..14
 “STUDY OF CUSTOMER SATISFACTION IN PUBLIC SECTOR AND PRIVATE
SECTOR BANKS”

EXCUTIVE SUMMARY

The working of the customer’s mind is a mystery which is diffiult to solve and
understanding oth nuances of what customer satisfaction is, a challenging
task. This exercise in the context of the banking industry will give us an insight
into the parameter of customer satisfaction and their measurment. In the
oganised segment, banking system occupies an important place in nation’s
economy. It plays a pivootal role in the economic development of a country
and forms the core of both Public sector as well as Private sector banks. There
are total 28 public sector and 27 Private sector banks are functioning in the
country presently. Banks have to deal with many customers everyday and
render various types of services to its customer. It’s a well known fact that no
business can exist without customers.

The banking industry in India has undergone sea

change since post independence. More recently, liberalization, the opening up
of the economy in the 90s and the Government’s decision to privatize banks
by reduction in state ownership culminated in the banking reform based on
the recommendation of Narasimha Committee. The prime mover for banks
today is profit, with clear indication from the Government to ‘Perform or,
Perish’. Banks have also started realizing that business depends on client
services and build relationship with customers. The main driver of this change
is changing customer needs and expectations.

The purpose of this is to compare the public sector bank &

private sector bank in terms of customer satisfaction and to find out the
various reasons of customer dissatisfaction in these banks. The data was
collected by getting the questionnaire filled by the respondents who wew
using banking services.
INTRODUCTION

In the organised segment, banking system occupies an important place in

nation’s economy. It plays a pivotal role in the economic development of a
country and forms the core of the money market in an advanced country. The
commercial banks in India comprise of both Public sector as well as Private
sector banks. Banks have to deal with many customers everyday and render
various types of services to its customer. It’s a well known fact that no
business can exist without customers.

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation. It is
seen as a key performance indicator within business. Customer satisfaction is
an ambigious and abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and service to service. The state
of satisfaction depends on a number of both pshchological and physical
variables.

The Banking Industry like many other financial services is facing a rapidly
changing market, new technologies uncertainties, fierce competition and
more demanding customers and the changing climate has present an
unpreceedented set of challenges. Banking is a customer oriented services
industry, therfore, the customer is the focus and customer services is the
differentiating factors.
Literature Review
Consumer stisfaction is basically a psychological state, car taken in the should
be taekn in the effort of quantiatatinve measurment, although a large quantity
of research in this area has recently been developed work done by Berry
(Bart Allen) and Brodeur between 1990 and 1998 defined ten ‘Quality
Values’ which influence satisfaction behaviour, further expanded by Berry in
2002 and known as the ten domains of satisfaciton. These ten domains of
satisfaction include: Quality, value, Timeliness, Efficiency, Ease of Access,
Enviroment, Inter-departmen Teamwork, Front line Service Behaviours,
Commitment to the Customer and Innovation. These factors are emphasized
for continuous improvement and organisational change measurement as an
integral model.

Another Work done by Parasuraman, Zeithaml and Berry (Leonard L)

between 1985 and 1988 provides the between the customer’s expectation of
performance and their perceived experiences of performance. “This provide
the measurer with a satisfaction “Gap” which is objective and quantitve in
nature.

Another work done by Cronin and Taylor propse the “Confirmation/

Disconfermation theory of combinig the “Gap” described by Parasuraman,
Zeithaml and Berry as two different measurement of performance according
to expectation.

According to Garbrand, customer satisfaction equals perception of

performance divided by expectation of performance.

So we can recognize where we need to make changes to

create improvements and determine if these changes, after implemented, have
led to increased customer satisfaction. “If you cannot measure it, you
cannot improve it.”- Lord William Thomson Kelvin (1824-1907)
OBJECTIVE OF THE STUDY

The objective of this study is to compare the public sector banks and private
banks in terms of customer satisfaction and to find out the various reasons of
customer dissatisfaction in these banks.

Significance of Study:-
Satisfied customer are central to optimal performance and financial returns.
In many place in the world business organization have been elevating the role
of the customer to that of a key stakeholder over the past 20 years. Customer
are viewed as a group whose satisfaction with the enterprise must be
uncorporated in strategic planning efforts. Forward-looking companies are
finding value in directly measuring and tracking customer satisfaction(CS) as
an important strategic success indicator. Evidence is mounting that placing a
high priority on CS is critical to improved organisational performance in a
global marketplace.

With better understanding of customer’s perception, companies

can determine the actions required to meet the customer’s needs. They can
identify their own strengths and weaknesses, where they stand in comparison
to their competiton, chart out path future progress and improvments in the
work practices and processes used within the company.
Identify Varriabe
The meaning of satisfation: “ Satisfied” has a range of meaning to individuals,
but it generally seems to be a positive assessment of the services.

The word “satisfied” itself had a no. of differnet meaning for

respondents, which can be split into the broad themes of
contentment/ happiness, relief, achieving aims and happy with
outcome and the fact they did not encounter any hassle:

Happy

 Content
 Happy, pretty happy, quite happy
 Pleased
 Walked out of there feeling good
 Walk out of there chuffed
 Grateful the service has been ok

Relieved

 Thanks God for that

 Phew
 At ease
 Can relax
 Stress reduction
 Secure
 Safe
 Go to the bank with troubled mind and they sort it out for you
 Sleep at night without worrying what’s going to go on
 Everthing is sorted out in your mind and you’re happy
 Secure, you know the money has been sarted out
 Knowing the money’s going to be there
Achieving aims

 Achieving your aims or goal

 Getting what you went in for
 Achieve whatever it is you wanted to achieve
 Come away wanted in the end
 Got what you wanted in the end
 Got what you went down for
 Everthing went according to plan, the way it should have done
 Met expectation
 To be unsatisfied is when you come out and you are still on the same
level as you were before

Achieving aims, and happy with outcome

 Happy with the results

 Happy with what you’ve got
 When you walk out you’re happy. They’ve sorted everthing out and
quickly
 Happy with outcome
 Pleased with what’s happened
 Content with what’s been done for you
 A feeling of happiness having achieved your goal
 You go in there feeling down and the only way you are going to come
out satisfied is if they have been good to you

No hassle

 Not frustrated
 Everything goes smooth
 No hassle
 No problems
 No hassle getting there
 straightforward
Research Hypothesis:-
With the phenomenal increase in the country’s population
and the increased demand for banking services; speed, service, quality and
customer satisfaction are going to be key differntiators for each bank’s future
success.

The working of the customer’s mind is a mystery which is difficult

to solve and understanding the nuances of what customer satisfaction is, a
challenging task.

So this Hypothesis for recognize where we need to make changes

to create improvement and determine if these changes, after implemented,
have led to increased customer satisfaction. “If you can not measure it, you
can not improve it”- Lord william Thomson Kelvin (1824-1907)
Research Design:

(i)scope of the study:

The scope of the study is confined in comparing th
Public sector and Private sector banks in terms of customer satisfaction. The
study will be undertaken on the basis of sample survey.

(ii)Research Design:

The Research Design would be descriptive and cross

sectional.

(iii)Sample size:

The sample would be selected on random basis. A sample of _ _

(No.) respondents would be used in the reasearch.

(iv)Data collection:

The data would be collected from Primary source through

questionnaires and interviews.

(v)Data source:

Both Secondary and Primary sources of data will be used.

The major type of information used in primary data. This is done through
primary survey. The literature review is a secondary data type. The sources
include books, periodicals, websites, printed literature etc.
Data Analysis:
Public Sector Banks
VERY HIGHLY NOT USING
DISSAT DISSAT SATISFIED VERY SAT SATISFIED SERVICES
MOBILE - - - - - -
BANKING
BRANCH - - - - - -
BANKING

INTERNET - - - - - -
BANKING

ATM - - - - - -
BANKING

Private Sector Banks

VERY HIGHLY NOT USING
DISSAT DISSAT SATISFIED VERY SAT SATISFIED SERVICES
MOBILE - - - - - -
BANKING
BRANCH - - - - - -
BANKING

INTERNET - - - - - -
BANKING

ATM - - - - - -
BANKING
Conclusion:-
 _ _% of the customers are not using mobile banking in private sector
banks whereas _ _% of the customers are not using the mobile in public
sector banks.
 _ _% of the customer of Private Banks are satisfied with the behaviour of
the staff out of which _ _% are very satisfied and _ _% are highly
satisfied. Whereas _ _% of the customers of Public Sector Banks are
satisfied with the behaviour of the staff out of which _ _% are very
satisfied.
 _ _% of the customers are using internet banking in Private Sector banks
and rest _ _% are not using because this service is not provided by their
banks (e.g. any bank) whereas _ _% of the customers are using ATM
banking in private sector banks out of which _ _% are stisfied and _ _%
are highly satisfied. This shows a very high rate of customer satisfaction
level in Private sector banks.
 In Public sector banks _ _% of the customers are satisfied and _ _% are
very satisfied with ATM banking whereas in Private sector banks _ _% of
the customers are very satisfied and _ _% of the customers are highly
satisfied with the service.
FINDINGS
Consumer satisfaction level is higher in Private sectors banks as compared
with the Public Sector Banks.

Reasons of Dissatisfaction in Public sector banks

 Behaviour and attitude of the staff in Public Sector Banks is the first
reason of customer dissatisfaction.
 Time taken to process the transaction is the second reason of customer
dissatisfaction.
 Many of the services are not provided by the Public sector banks when
compared with the Private sector banks e.g. ATM Banking is provided
by (Any Banks)
 Internet Banking and Mobile Banking is also not provided by many of
the Public sector banks.
 Continuous services are not provided by ATM machines installed by
various Public sector banks.

RECOMMENDATIONS:
 The staff should be adequately trained to deal with the customer on
one to one basis.
 Many public sector banks need to revive their infrastructure to have
pace with the competing environment.
 Many of services need improvement in public sector banks e.g ATM
facilities
 Staff should be adequately trained to encourage face to face dealing.
 Staff should be friendly and approachable.
 Clearly defined customer policy should be adopted by the banks.
 Customer’s needs should be anticipated in advance so that they can
be helped out in a better way.
 Treat your customers like your friends and they”ll always come back
 Honour your promises.
LIMITATION OF THE STUDY

 This study is geographically resticted to _ _ _ city only.

 The sample size is small due to the specified reasons.
 Finding are based on sample survey through questionnaires method.
 Hence there is a scope for the respondents to be biased or, pretentious.

BIBLIOGRAPHY

 C R Kothari- Research Methodology

 P N Varshney- Banking law and Practice
 Customer satisfaction in Indian banking: a case study of Yamuna Nagar
District in Haryana
 Political Economy Journal of India, Jan-June, 2008 by Raj Kumar
 Customer satisfaction Key Growth to Banks: An article from the Hindu
 Article on customer relationship management in Banking sector by Dr. F
B Singh
 Article on measuring customer satisfaction in the Banking Industry by
Dr. Manoj Kumar Das

INTERNET WEBSITE:

www.google.com

www.rbi.gov.in

www.iba.org.in

http://en.wikipedia.org/wiki/customer_satisfaction
 QUESTIONNAIRE

Dear Respondent,

I am student of Banaras Hindu University (BHU) and doing M.Com-II sem. I have
undertaken the project for which I intend to pose a questionnaire aimed at comparing the customer
satisfaction in public sector bank and private sector banks.

Your cooperation is deeply solicited to provide the relevent information. I assure that
information will be kept confidential.

Name of Customer_________________________ Mob. No._______________

Name of the bank and type of account___________________________________________________

Please answer the questions and tick at the place that matches your option.

1.Mobile/tele Banking

How would describe your views about Customer Service Representative? Plese tick in the appropriate
column.
(1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied), specify the
reasone if not using the service

1 2 3 4 5
Call answering time
Flawless/ Correct Operation
Understanding and replyin queries correctly
Communication skills/positive approach
Genral assessment about the service

2.Branch Banking
How would describe your views about Branch Banking? Plese tick in the appropriate column.
(1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied)
1 2 3 4 5
Behaviour of the staff
Time taken to process the transaction
Working Hours
Genral asswssment about the sevices provided by the baranch
3.Internet Banking

How would describe your views about Internet Banking? Plese tick in the appropriate column.
(1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied)

1 2 3 4 5
Page Setup/ Menu Flow
Ease of use/ Navigation
Speed of page loading
Variety of transactions
Genral assessmenr about the service

4.ATM Banking
How would describe your views about ATM Banking Services? Plese tick in the appropriate column.
(1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied)
1 2 3 4 5
ATM network distribution
Continuous service
Variety of transactions
Easy of screen use
Genral assessment about the service