Black Book of Bob and Icici

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A COMPARATIVE STUDY OF CUSTOMER’S SATISFACTION

TOWARDS ICICI BANK AND BOB BANK

CHAPTER 1. INTRODUCTION

The commercial banks in India comprise of both public sector as well as private sector banks.
There are total 28 public sectors 27 private sector banks are functioning in the country presently. Banks have
to deal with many customer every-day and render various types of services to its customer. It’s a well-known
fact that no business can exist without customers.

Customer satisfaction is the measurement used to quantify the degree to which a customer is happy with
product, service or experience. Customer satisfaction business term, is a measure of how products and
services supplied by the company meet or surpass customer expectation. It is seen as key performance
indicator within business. In competitive market place where businesses compete for customers, the customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and service to service.

The banking industry in India has undergone changes since post-independence. Bank has also started
realizing that business depends upon client service and the satisfaction of the customer service and built up
relationship with customers.

With the current changes in the functional orientation of banks, the purpose of banking is redefined. The main
driver of these changes is changing customer needs and expectations. Customers in urban India no longer
want to wait in long queues and spend hours in banking transaction.

1.1. MEANING

CUSTOMER SATISFICATION

Customer satisfaction is a measurement used to quantify the degree to which a customer is happy with a
product, service, or experience.

Customer satisfaction is the measurement used to quantify the degree to which a customer is happy with
product, service or experience. Customer satisfaction business term, is a measure of how products and
services supplied by the company meet or surpass customer expectation. It is seen as key performance
indicator within business. In competitive market place where businesses compete for customers, the
customer satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy. Customer satisfaction is an ambiguous and abstract concept and the actual
manifestation of the state of satisfaction will vary from person to person and service to service.

BANK

According to the Oxford dictionary Bank can be defined as,

“An establishment for the custody of money, which it pays out on a customer’s order.”

Banking Company in India has been defined in the Banking Companies Act 1949 as, “One which
transacts the business of banking which means the accepting for the purpose of lending or investments
of the deposits of money from the public, repayable on demand, or otherwise and withdrawable by
cheque, draft, order or otherwise.”

A bank is a financial institution that accepts deposits from public and creates a demand deposit while
simultaneously making loans. It is also a financial intermediary that accepts deposit and channels those
deposits into lending activities. Banks also provide financial services such as wealth management,
currency exchange, and safe deposit boxes. The term bank is either derived from Old Italian word
“Banca” or from a French word “Banque” both mean a “Bench” or “Money Exchange Table”. In olden
days, European money lenders or money changers used to display (show) coins of different countries in
big heaps (quantity) on benches or tables for the purpose of lending or exchanging. A bank connects
customers that have capital deficits to the customers that have capital surpluses.
1.2. HISTORY OF BANKING IN INDIA

Banking in India has its own origin as early as the Vedic period. During the Mughal period, Indigenous
Bankers played a very important role in lending money financing foreign trade and commerce to carry
out the business.

The first bank in India, though conservative, was established in 1786. From 1786 till today,

Phases of Indian Banking System


1. The Pre-Independence Phase i.e. before 1947
2. Second Phase from 1947 to 1991
3. Third Phase 1991 and beyond
Indian banking system is classified into 3 distinct phases:

PHASE 1: The pre independence phase (before 1947)

 This phase is characterized by the presence of a large number of banks (more than 600).
 Banking system commenced in India with the foundation of Bank of Hindustan in Calcutta (now Kolkata) in
1770 which ceased to operate in 1832.
 After that many banks came but were not successful like: (1) General Bank of India (1786-1791) (2) Oudh
Commercial Bank (1881-1958) – the rest commercial bank of India.
 Whereas some are successful and continue to lead even now like:
Allahabad Bank (est. 1865)
Punjab National Bank (est. 1894)
Bank of India (est. 1906)
Bank of Baroda (est. 1908)
Central Bank of India (est. 1911)
 While some others like Bank of Bengal (est. 1806), Bank of Bombay (est. 1840), Bank of Madras (est. 1843)
merged into a single entity in 1921 which came to be known as Imperial Bank of India. Imperial Bank of
India was later renamed in 1955 as the State Bank of India.
 In April 1935, Reserve Bank of India was formed based on the recommendation of Hilton Young
Commission (set up in 1926).
 In this time period, most of the bank were small in size and suffered from the high rate of failures. As a result,
public condence is low in these banks and deposit mobilization was also very slow. People continued to rely
on the unorganized sector (moneylenders and indigenous bankers).
PHASE 2: (from 1947 to 1991)

 Broadly the main characteristic feature of this phase is the Nationalization of the bank.
 With the view of economic planning, nationalization emerged as the effective measure. Need for nationalization
in India :
a) The banks mostly catered to the needs of large industries, big business houses.
b) Sectors such as agriculture, small-scale industries and exports were lagging behind.
c) The poor masses continued to be exploited by the moneylenders.
 In the year 1959 1ST January RBI was nationalised.
1. Central Bank of India
2. Bank of India
3. Punjab National Bank
4. Bank of Baroda
5. United Commercial Bank
6. Canara Bank
7. Dena Bank
8. United Bank
9. Syndicate Bank
10. Allahabad Bank
11. Indian Bank
12. Union Bank of India
13. Bank of Maharashtra
14. Indian Overseas Bank

 Six more commercial banks were nationalized in April 1980. These are mentioned below:
1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental Bank of Commerce
5. Punjab & Sindh Bank
6. Vijaya Bank
 Meanwhile, on the recommendation of Narasimham committee, Regional rural banks was formed on 2 nd
October 1975.
a) NABARD (est. 1982
b) EXIM (est. 1982
c) NHB (est. 1988)
d) SIDBI (est. 1990)

PHASE 3: (1991 and beyond)


 This period saw a remarkable growth in the process of development of banks with the liberalization of
economic policies.
 Even after nationalization and the subsequent regulations that followed, a large portion of masses is
untouched by the banking services.
 Considering this, in 1991, the M. Narasimham committee gave its recommendation i.e. to allow the entry of
private sector players into the banking system.
 Following this, RBI gave license to 10 private entities, out of which few survived the market demands,
which are-
ICICI
HDFC
DCB
Axis Bank

1.3. TYPES OF BANK


1. Central bank

RBI is the central bank that fully owned by government .it is governed by the central board appointed by central
government.

2. Cooperative sector

Cooperative sector is very much useful for rural people. The cooperative banking sector is divided into following
categories:

a) State cooperative bank


b) Central cooperative bank
c) Primary agriculture credit societies

3. Development Bank / Finacial Institute

 IFCI
 IDBI
 ICICI
 HBI
 NABARD
 Export Import Bank of India

4. Private Sector Bank

 HDFC Bank
 ICICI Bank
 Yes Bank
 Kotak Mahindra Bank etc.

Major players in private sector bank:


ICICI Bank: ICICI Bank is the commercial banking arm of ICICI Group. It received its banking license from
RBI ON 17TH MAY 1994 and its branch was started in madras in June 1994 .it has network of about 560
branches and extension counters and over 1900 ATMs. It has wide range of banking products. It is the first
bank to start internet banking service in India .in 1999, ICICI become the first company and first bank or
financial institution from NYSE.

IDBI BANK: IDBI LTD. Is the 10th largest development bank in the world has promoted world class
institution in India IDBI commenced its first branch at Indore in November 1995 .the birth of IDBI took place
after RBI issued guidelines for enter of new private sector banks in January 93 .IDBI Bank become the first to
offer mobile refill/recharges using SMS, launch of “ATMs next”, which provide online information about
news, cricket scores, emergency nos. , bank product on ATM.

UTI BANK: UTI Bank was the first of the new private bank to have begin the operation in 1994, after the
government of India allowed new private banks to be established. The banks registered office is at
Ahmedabad and its center office is at Mumbai. The bank has wide network of more than 350 branch offices
and extension counters. The bank has network of over 1657 ATM’s providing 24 hrs a day banking
convenience to its customer’s.

HDFC BANK: HDFC Bank is headquartered in Mumbai. The bank at present has a an enviable network of
over 495 branches spread over 218 cities across India. All Branches are linked on online real time basis. The
customer in over 120 location are also serviced through telephone banking. The bank’s expansion plans take
into account need to have presence in all major industrial , and commercial centers where its corporate
customer’s are located as well as need to built a strong retail customer base for both deposit and loan product.

5. Public sector Bank


 State Bank of India
 Bank of India
 State Bank of Indore
 State Bank of Mysore
 Canara Bank
 Central Bank of India
 Allahabad Bank
 Syndicate Bank
 Bank of Baroda
 Union Bank
 State Bank of Maharashtra

COMPANY DETAILS

1.4. ICICI BANK ( PRIVATE BANK )

Headquarters in Bandra Kurla


Complex, Mumbai

Formerly Industrial Credit and


Investment Corporation of
India (as a Government
Organization)

Type Private Development


Finance Institution

BSE: 532174
Traded as
NSE: ICICIBANK
NYSE: IBN
BSE SENSEX Constituent
NSE NIFTY 50 Constituent

ISIN INE090A01021

Industry Financial services

Founded 5 January 1994; 29 years


ago

Headquart Mumbai, Maharashtra, India


ers

Number of 5,275 (2020)


locations

Area Worldwide
served

Key people Girish Chandra Chaturvedi


(Chairman)[1]
Sandeep Bakhshi (MD &
CEO)

Products Banking, commodities, cred


it cards, equities
trading, insurance, investme
nt management, mortgage
loans, mutual funds, private
equity, risk
management, wealth
management, asset
management

Revenue ₹157,536
crore (US$20 billion)[2] (202
2)

Net income ₹25,783


crore (US$3.2 billion)[2] (20
22)

Total assets ₹1,752,637


crore (US$220 billion)[3] (20
22)

Total ₹180,662
equity crore (US$23 billion)[3] (202
2)

Number of 97,354 (2020)[4]


employees

Subsidiarie ICICI Prudential[5]


s ICICI Lombard[6]
ICICI Securities[7]
ICICI Direct[8]

ICICI Bank Limited is an Indian multinational bank and fiscal services company headquartered
in Mumbai. It offers a wide range of banking products and fiscal services for corporate and retail
consumers through a variety of delivery channels and specialized subsidiaries in the areas of investment
banking, life, non-life insurance, venture capital and asset management.
This development finance institution has a network of 5,275 branches and 15,589 ATMs across India and has a
presence in 17 countries. The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China and South
Africa, as well as representative offices in United Arab Emirates, Bangladesh, Malaysia and Indonesia. The
company's UK subsidiary has also established branches in Belgium and Germany.
1.4.1. HISTORY

In 1955 ICICI was formed as an initiative of the World Bank. In the 1990s, ICICI
transformed its business from a financial institution limited to development projects to a diversified financial
services group. Ever progressing with the times, ICICI addressed a need to upgrade its corporate structure to
that of universal banking.
The merger of ICICI with ICICI bank seemed like a natural step in line with its newly adopted universal
outlook. This would enhance value for ICICI shareholders with low-cost deposits, increased fee-based
income, participation in the payment system and transaction banking services. It would also greatly benefit
ICICI Bank shareholders through a large capital base and scale of operations, access to corporate relationships
built over five decades, new business segments and more.
The Success Journey

 In 1994, ICICI Bank was promoted, by ICICI Limited, the Indian Financial Institution.
 In fiscal 1998, through a public offering of shares in India, ICICI’s shareholding in ICICI Bank was
reduced to 46%.
 In 1999, ICICI become the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.
 2000 saw an equity offering in the form of ADRs listed on the NYSE.
 In fiscal 2001, ICICI Bank acquired Bank of Madhura, in an all-stock amalgamation.
 In 2001 & 2002, ICICI propagated secondary market sales to institutional investors.
 In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and
two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, with ICICI Bank.
 In 2002, the shareholders along with the High Court of Gujarat and the High Court of Judicature as
well as the Reserve Bank of India, approved the merger.
 In December 1996, Boards of ICICI Bank and The Sangli Bank Limited at their respective meetings
approved an all-stock amalgamation of Sangli Bank with ICICI Bank.
 In April 1997, RBI approved the scheme of amalgamation.
 In August 2010, the amalgamation of Bank of Rajasthan Ltd. with ICICI Bank Ltd. came into effect.
The merger substantially enhanced the combined branch network to over 2500 across the country.

On March 17, 2020, ICICI Bank announced the launch of 'ICICI Stack', a set of the country's most
comprehensive digital banking services to ensure uninterrupted banking experience to customers at a time
when they are advised to stay indoors in the wake of the coronavirus outbreak. At ICICI Bank, we believe
that digitally-enabled banking solutions not only empower our customers to fulfil their ambitions but also
create value for our stakeholders.

1.4.2. AWARDS

2004

 Best Bank in India Award presented by Euromoney Magazine

Syndicated Loan Managers by Asset.

2009

 ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet Banking
awards
 ICICI Bank won the Best Banking Security Systems Project Award and Best E-Banking Project
Implementation Award by The Asian Banker.

2010

 ICICI Bank won the Best Banking Security System by The Asian Banker.

2011

 ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands
Report, second year in a row
 ICICI Bank won the 'Best CRM Project' and 'Best Banking Security Systems' by The Asian Banker.

2012

 Airtel, ICICI among 'top 100 global brands


 ICICI Bank received the Golden Peacock Innovative Product / Service Award.
 ICICI Bank received the Dataquest Technology Innovation Awards 2012 for Data center migration by
Dataquest.
2014

 According to the Brand Trust Report 2014, ICICI Bank was ranked 28th among India's most trusted
brands, a research conducted by Trust Research Advisory.
 ICICI Bank was ranked second at the 'National Energy Conservation Award 2014' under the office
buildings (less than 10 lakh kWh/year consumption) category.
 ICICI Bank was fifth in the world and second in India on the 'Top Companies for Leaders' in a study
conducted by Aon Hewitt.
 ICICI bank won the Best Private Sector Bank - Global Business Development by Polaris Financial
Technology Banking Awards 2014.
 IDBRT awarded ICICI for 'Best Bank Award for Business Intelligence Initiatives among Large Banks'
and 'Best Bank Award for Social Media and Mobile Banking Among Large Banks'.

2015

 ICICI Bank won an award in the BFSI Leadership Summit & Awards in the 'Best Phone Banking for
End-users' category
 ICICI Bank has been declared as the first runner up at Outlook Money Awards 2015 in the category
of ‘Best Bank’
 ICICI Bank has been adjudged the ‘Best Retail Bank in India’ by The Asian Banker. It has also emerged
winners in the categories of ‘Best Internet Banking Initiative’ and ‘Best Customer Risk Management
Initiative’ awards given by The Asian Banker.
 ‘Best Local Trade Finance Bank in India’ at Global Trade Review Asia Leaders in Trade Awards
2015.
 ‘Best Foreign Exchange Bank’ in India, at Finance Asia’s 2015 Country Banking Achievement
Awards.
 ‘Best Private Sector Bank’ under ‘Global Business’ category at the Dun & Bradstreet Banking Awards
2015.

2016

 ‘Best Retail Bank in India’ at the Asian Banker International Excellence in Retail Financial Services
Awards 2016. ICICI Bank has won this award three years in a row.
 Gold awards in the ‘Bank’ and ‘Credit card issuing Bank’ segments under Finance category in the
Reader’s Digest Trusted Brand 2016 Survey.
1.4.2. Products Offered by ICICI Bank
Some of the products that are offered by ICICI Bank are mentioned below:
Deposit Accounts

Various deposit accounts are offered by ICICI Bank and some of them are listed below:

 Salary Account - The Salary Account is offered to both employees and employers. Under the account,
no minimum balance needs to be maintained. Phone banking and a personalised chequebook are
offered free of cost.
 Savings Account - ICICI Bank offers a host of features and benefits under the savings account. You
have the option to open an account online. Cashback and rewards benefits are offered under the bank’s
savings account.

 Defence Salary Account - The account has been designed for Defence Personnel and helps them meet
their banking needs.

Cards

Several cards are offered by the bank that you can apply for online, some of which are given below:

 Debit Card - Several debit cards are offered by ICICI Bank that comes with different features and
benefits. Payments can be made easily with the help of a debit card.
 Credit Card - Different credit cards are offered by ICICI Bank and come with several benefits. You
can apply for a credit card online and the process is simple.

Investments

ICICI Bank offers several investment options. Certain schemes can be applied online as well. Some of the
investment schemes that are offered by the bank are mentioned below:

 Recurring Deposit - ICICI Bank offers the RD scheme at attractive interest rates. The tenure of the
scheme ranges from 6 months to 10 years.
 Fixed Deposit - The FD scheme offered by ICICI Bank comes with competitive interest rates. Senior
citizens may be offered an additional interest rate. The FD account can be opened online.

Loans

Various loans are offered by ICICI Bank, some of which are listed below:

 Gold Loan - Up to Rs.1 crore may be provided as a loan by ICICI Bank under the scheme. The
documentation process is simple and the loan can be availed for various purposes.
 Education Loan - Up to Rs.2 crore may be provided as an education loan by ICICI Bank. The loan can
be used for higher studies in India or abroad.
 Pradhan Mantri Mudra Yojana - Loans of below Rs.10 lakh are provided under the scheme. The three
different products under the scheme are Tarun, Kishore, and Shishu.
 Car Loan - Car loans can be availed for the purchase of new cars and used cars. ICICI Bank offers the
car loan scheme at an attractive interest rate.

 Two-Wheeler Loan - ICICI Bank offers the two-wheeler loan at an attractive interest rate. Up to 100%
of the on-road price of the bike may be provided as a loan.
 Personal Loan - You can apply for the personal loan offered by ICICI Bank online. Up to Rs.50 lakh
may be provided as a loan.
 Home Loan - Depending on the type of loan, up to Rs.10 crore may be provided. The repayment
tenure may be up to 30 years.

Banking Services
Some of the banking services that are offered by ICICI Bank are mentioned below:

 Customer Care - You can call ICICI Bank’s customer care number in case of queries.
 Net Banking - The net banking facility offered by ICICI Bank allows you to access various banking
services online.
 Mobile Banking - You can download the ICICI Bank’s mobile app on your smartphone. Various
banking services can be accessed on the mobile app.
 Balance Inquiry - You can check the ICICI Bank balance via calling customer care, mobile banking,
net banking, etc.
1.5. BANK OF BARODA ( PUBLIC BANK )

Bank of Baroda Ltd.

Type Central Public Sector Bank

BSE: 532134
Traded as
NSE: BANKBARODA

ISIN INE028A01039

Industry Banking
Financial services

Predecessor Vijaya Bank


Dena Bank

Founded 20 July 1908; 114 years ago

Founder Sayajirao Gaekwad III

Headquarters Vadodara, Gujarat, India

Number of locations 8,214 Branches


10,033 ATMs (2020)

Area served India & Worldwide

Key people Hasmukh Adhia


(Chairman)
Sanjiv Chadha
(MD & CEO)

Services Asset management


Commercial banking
Financial services
Investment banking
Mortgage loans
Private banking
Private equity
Retail banking
Savings
Securities
Wealth management

Revenue ₹82,859.5 crore (US$10 billion) (2021)

Operating income ₹41,173.5 crore (US$5.2 billion) (2021)

Net income ₹7,272 crore (US$910 million) (2022)

Total assets ₹1,155,364.8 crore (US$140 billion) (2021)

Owner Ministry of Finance, Government of India


Number of employees 79,806 (2022)

Subsidiaries Bank of Baroda Uganda Limited


Bank of Baroda Tanzania Limited
Nainital Bank
Baroda UP Gramin Bank

Bank of Baroda (BOB or BoB) is an central public sector bank under the ownership of Ministry of
Finance, Government of India. It is headquartered in Vadodara, Gujarat. It is the second largest public sector
bank in India after State Bank of India, with 132 million customers, a total business of US$218 billion, and a
global presence of 100 overseas offices. Based on 2019 data, it is ranked 1145 on Forbes Global 2000 list.

Sayajirao Gaekwad III, the founder of Bank of Baroda

The Maharaja of Baroda, Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the princely
state of Baroda, in Gujarat. The Government of India nationalized the Bank of Baroda, along with 13 other
major commercial banks of India, on 19 July 1969 and the bank was designated as a profit-making public
sector undertaking.

1.5.1. HISTORY

In 1961, BoB acquired New Citizen Bank of India. This merger helped it increase its branch network
in Maharashtra. BoB also opened a branch in Fiji. The next year it opened a branch in Mauritius

In 1963, BoB acquired Surat Banking Corporation in Surat, Gujarat. The next year BoB acquired two banks:
Umbergaon People's Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.
In 1965, BoB opened a branch in Guyana. That same year BoB lost its branch in Narayanganj (East Pakistan)
due to the Indo-Pakistani War of 1965. It is unclear when BoB had opened the branch. In 1967 it suffered a
second loss of branches when the Tanzanian government nationalised BoB's three branches there at (Dar es
Salaam, Mwanga, and Moshi), and transferred their operations to the Tanzanian government-owned National
Banking Corporation.

In 1969, the Indian government nationalised 14 top banks including BoB. BoB incorporated its operations in
Uganda as a 51% subsidiary, with the government owning the rest.

In 1972, BoB acquired Bank of India's operations in Uganda. Two years later, BoB opened a branch each
in Dubai and Abu Dhabi.

Back in India, in 1975, BoB acquired the majority shareholding and management control of Bareilly
Corporation Bank (est. 1954) and Nainital Bank (est. in 1922), both in Uttar Pradesh and Uttarakhand
respectively. Since then, Nainital Bank has expanded to Uttarakhand, Uttar Pradesh, Haryana, Rajasthan and
Delhi state. Right now BoB have 99% shareholding in Nainital Bank.

International expansion continued in 1976 with the opening of a branch in Oman and another in Brussels. The
Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and
jewellery having business in Antwerp, a major center for diamond cutting.

Two years later, BoB opened a branch in New York and another in the Seychelles. Then in 1979, BoB opened
a branch in Nassau, the Bahamas.

In 1996, BoB Bank entered the capital market in December with an initial public offering (IPO). The
government of India is still the largest shareholder, owning 66% of the bank's equity.

On 17 September 2018, the government of India proposed the merger of Dena Bank and Vijaya Bank with the
Bank of Baroda

1.5.2. Services Offered by BOB Bank

1. bob World Internet (Net Banking) India.


2. Baroda Connect (Net Banking) International.
3. Baroda FASTag.
4. NSDL e-Services (Online Demat Statement)
5. Prepaid Card Portal.
6. Mutual Fund.
7. Credit Cards - BOB Financial.
8. India First Life Insurance.
CHAPTER 2. REVIEW OF LITERATURE

A Literature Review is an overview of the previously published works on a


topic. It works like a magnifying glass, allowing you to know problems in a broad and clear field of a view.
The researcher might apply a literature review to fill in the gaps of their study. A review of the literature will
also help a researcher chooses what type of research method to use to solve a problem and, in the history,
what impact previous studies have on current studies.

PrernaDawar (2013) on her study found factors affecting satisfaction are staff knowledge, behaviour, online
banking-channel management & support system, amount charges, and language information.

MajidKaboli, saeed-Fathi, MarjanAjiji (2011) has done their research on customer satisfaction of the
banking customer in Isfahan city. Results were technical knowledge and environment of the bank are main
factors which creates dissatisfaction in Isfahan City.

Ghosh and Kailash (2010) has strongly argued that customer’s knowledge is also one of the most important
factor which can affect satisfaction.

Joseph M. et al (1999)- The study investigates role of technology on Australian banking sector and 300
customers were surveyed. The findings suggested that except from convenience/accuracy and efficiency e
banking services did not match with importance rating specified by customers.

Lassar, et al (2000) - The study compared two models, that is, SERVQUAL and technical/functional
quality model of technology using 65 bank customers using SERPERF SCALE. The findings revealed that
technical/functional quality model was better than SERVQUAL because latter was lacking technical
dimensions. 2 models were having distinct and unique strength for measuring service quality aspects.

Jamal, A., Naser, K., 2002-The study examined key drivers of customer satisfaction using 167 customers
and it was found that core and relational performances had impact on customer satisfaction and there was
negative relationship between customer expertise and customer satisfaction

Sureshchandar et al (2002).- The study examined relationship between service quality and customer
satisfaction in Indian banking sector. These were found to be independent but closely related. Both constructs
vary significantly in core services,human element, systematization of service delivery, tangibles and social
responsibility.

Gani A, Mushtaq Bhatt(2003) -The study is conducted to do a comparative study of service quality of
commercial banks and its dimensions in commercial banks. SERVQUAL is used and sample size was 800
customers. The study found out that CITI bank and Standard chartered bank are good in tangibility and in
reliability also they are good. In responsiveness parameter Indian banks are inferior to foreign banks. In
Assurance and empathy Indian banks are inferior.

Navdeep Aggarwal and Mohit Gupta (2003) - This study basically finds out the primary dimensions and
sub dimensions of service quality. Informal structured interviews are conducted with branch managers and
academicians to formulate a banking service quality model. The study found out that service time and
personal interactions are very important along with ambience for service quality

Zhou, L( 2004)- The study analysed impact of service quality in banks on customer satisfaction in china’s
retail banking and it was found out that reliability and assurance were the primary drivers of customer
satisfaction. It was also found out that there were significant variations in expectations and perceptions in
customers

Arora S (2005) - This study analysed factors influencing customer satisfaction in public sector, private sector
and foreign banks in northern India. 300 customers were given questionnaires which reveled that significant
differences exist in customer satisfaction level of customers in each group of banks regarding routine
operation and situational and interactive factors. Foreign banks were found to be the leaders in mechanization
and automation

Debashis and Mishra (2005)-The study analysed and measured customer satisfaction in branch services
provided by nationalized banks in northern India . 1200 customers were given questionnaires and it was found
out that computerization, accuracy in transactions, attitude of staff and availability of staff influenced
customer satisfaction. Least important factor was promotion of the products and various schemes.

Mushtaq M Bhat (2005) - This study finds out service quality parameters in bank through SERVQUAL and
influence of demographic variables . The study waslimited to SBI, PNB ,Jammu and Kashmir bank Citi bank
and Standard Chartered Grind lay’s bank. Sample size was 800 and study found out that foreign banks are
better than Indian banks. SBI was found to be relatively poor on reliability and responsiveness. Banks in
Delhi were comparatively better in service quality

Joshua A J, V Moli, P. Koshi (2005)- The study evaluated and compared service quality in old and new
banks using sample size of 480. The study found out that customers were satisfied in reliability, empathy and
price and for other parameters the difference between expectations and perceptions were smaller than public
sector banks
Mohammad et al(2005)- The study tries to develop a comprehensive model of banking automated service
quality taking into consideration unique attributes of each delivery channel and other dimensions which
influence service quality

Raul and Ahmed (2005)-The study investigated customer service in public sector banks in 3 districts in
Assam and it was found that customers were dissatisfied with the management, technology and interactive
factors along with high service charges. Communication gap was the root cause of poor service and service
was different in rural and urban sectors

Sharma and Sharma ( 2006)-The study analysed customer delight in urban consumer banking. The study
found out that customers were satisfied with loan facilities, bank environment, routine work procedures,
location, interest rates etc and were dissatisfied with loan formalities and promotion through media.

Dash et al(2007)- The study measured customer satisfaction through 5 service quality dimensions in Noida
and Ghaziabad and findings revealed that assurance was the most important dimension of service quality
followed by reliability and responsiveness. Tangibles was found to be least important

Sharma S, et al (2007)-The study did a comparison of public and private banks with respect to perceptions of
customers regarding service quality. It was found out that service quality is associated with satisfaction and
there was significant difference between quality of services provided by banks. Banks in smaller cities are far
behind big cities in this regard

Tracey Dagger, Jillian Sweeney (2007)- The study consists of qualitative research to investigate the effect
of consumption stage on service quality perceptions and then development of hypothesis. The findings
indicate the evidence that customers rely more heavily on attributes that are search based in the initial stages
of service experience and in later stages consumption becomes important

Dr.Vannirajan & B.Anbazagan (2007) - The study tries to make an assessment of SERVPERF scale in the
Indian Retail banking sector by doing a survey in banks at Madhurai. The study found that in public sector
banks tangibles and assurance are most important and in private sector banks reliability ,,responsiveness and
tangibles are most important.

P K Gupta(2008)-Objective of this study was to find out the behavior of customers with respect to internet
banking vis-à-vis conventional banking. The study found out that internet banking was found to be easier and
speedier than conventional banking and trust, accuracy and confidentiality were the most important factors
here.

Ellaine Wallce&Leslie De Cheratatony (2009) - Study finds out the importance of ,assurance and
reliability, customer orientation teamwork etc in performance of . Also the study highlights criticality of
branch& employee teamwork for performance. Continuous commitment and service recovery were also
found important
Mohammed Siddique Khan, Siba Sankar Mahapatra (2009) - The study was to identify important
parameters affecting service quality in internet banking. Factor analysis of the data collected finds 7 factors
which included factors like reliability, access, user friendliness privacy etc. Correlation analysis shows that a
significant positive correlation exists between factors..Also it was found out that business class differs from
other classes in perception

Padhy P K and B N Swar (2009)- the paper investigated role of technology in banking and its impact on
perceived service quality in public, private and foreign banks in Orissa using a s ample size of 300 customers.
Foreign bank was found to be very close to expectations of customers followed by ICICI and

AXIS. Service quality in public sector banks was found to be very low

Rod et al(2009)- The study focused on relationship between service quality, overall internet banking service
quality and customer satisfaction in New Zealand. The study found out that online customer service quality
and online information systems were significantly and positively related to overall customer internet banking
service quality. Overall internet banking service quality and customer satisfaction were positively correlated

Akiko Ueno(2010)- The paper talks about the importance of quality. The study finds out the features that are
fundamental in supporting service quality. The secondary research finds out the human resource functions
like recruitment, teamwork etc in maintain service quality

Monica Bedi (2010) - The study investigates relationship between service quality, customer satisfaction and
behavioural intentions. The findings also indicated the importance of service quality. The study also found out
that banks differed in the service quality parameters.

Fulbag Singh, Davinder Kaur (2010-11) - The study combines all literature review done in service quality
And related areas in banking till 2010. It contains the works of Cronin& Taylor, Bahia and Nantel and others
on this area

Dr Ravichandran et al (2010) - The paper analyses existing study and tries to understand socio demographic
and rational profile of public retail banking consumers. It also finds out the importance of service quality
dimensions to predict the multidimensional model of behavioral intentions among public sector consumers in
India. Loyalty was found to be influenced by operating hours, modern equipments, error free records etc.
Service quality parameters like tangibility, responsiveness and empathy dimensions were also found to be
very important.

Davood Feiz et al (2010)- The study uses hypothesis to find out service quality in Iran railways. It was found
out that perceived service was found to be within zone of tolerance and service was satisfactory. The
difference between ideal level and current level was significant. There was significant relationship between
service adequacy variables and perceived value. The study in nutshell gives an image of service quality
Sachin Mittal & Rajnish Jain (2010) - This paper is basically a literature review of banking industry and
effect of IT based services on customer satisfaction. The study highlights customer satisfaction levels among
young customers in banking industry. A survey indicates the gaps between customer’s expectations and
perception with respect to IT based banking services. Findings indicated need to improve the IT based
services for enhancing customer satisfaction

H.Emari et al (2011) - The main objective of this research was to determine the dimensions of service
quality in the banking industry of Iran. For this the study empirically examined the European perspective
(i.e.,Gronroos’s model) suggesting that service quality consists of three dimensions, technical, functional and
image. The results from a banking service sample revealed that the overall service quality is identified more
by a consumer’s perception of technical quality than functional quality

Kumbhar, Vijay (2011) - It examined the relationship between the demographics and customers’
satisfaction in internet banking,. It also found out relationship between service quality and customers’
satisfaction as well as satisfaction in internet banking service provided by the public sector bank and private
sector banks. The study found out that overall satisfaction of employees, businessmen and professionals are
higher in internet banking service. Also it was found that there is significant difference in the customers’
perception in internet banking services provided by the public and privates sector banks.

CHAPTER 3. OBJECTIVES OF STUDY:

The objectives of these study is to compare Public sector bank and Private sector bank in Mumbai
in terms of customer’s satisfaction towards banking services.

1. To study the preferences of customers regarding Private sector bank (ICICI) and Public sector bank(BOB).

2. To examine which facility influences the customer most while selecting a Bank.

3. To compare various services provided by Public and Private Sector banks.


4. To make aware about several services provided by these two banks.

5. To know the which type of facilities preferred by the customers.

6. To compare the Public bank and Private bank in terms of customer’s satisfaction.

7. To analyse complaint of customer against the services.

8. To study the problem faced by the customer’s.

CHAPTER 4. RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify, select, process, and analyze
information about a topic. In a research paper, the methodology section allows the reader to critically
evaluate a study's overall validity and reliability. The logic behind taking research methodology into
consideration is that one can have knowledge about the method and procedure adopted for achievement of
the objectives of the project undertaken. With the adoption of this others can evaluate the results too. Its
main aim is to keep researchers on the right track.
4.1. Primary data:

It refers to first-hand information which is collected to solve a specific problem. There are
various methods of collecting primary data. Primary data are used in commercial research.

 Meaning of primary data – data collected first hand is called primary data.
 Methods/sources– primary data are collected through surveys and
interviews, experiments and observation.
 Paper work – primary data involve a lot of paper work Time factor – To collect primary data
researcher has to spend lot of time and effort.
 Specific/general – primary data are more specific in nature. Such data are collected to solve specific
problem.

METHODS OF PRIMARY DATA COLLECTION:

The method of primary data such as:

a) Interview method: personal interview, the interview was taken in face to face contact.

b) Questionnaire: In this method the respondent were requested to answer the questions.

4.2. SECONDARY DATA

Secondary data is readily available data from published or printed sources. Secondary data is
generally used in case of academic sources and social research.

 Meaning – secondary data is collected from readily available sources such as publications.
 Methods/sources – the secondary data is collected from internal sources such as company’s records,
and from external sources such as news-papers, magazines, government records, industry reports etc.
 Time factor - The Secondary data can be collected from internal and external sources at a
comparatively quicker pace.
 Paper Work - Secondary data involves comparatively less paper work as data are readily available from
published sources.

Specific/General- Secondary data may be general in nature.

METHODS OF SECONDARY DATA COLLECTION:

The secondary data has been collected from:

 Internet, websites

 Organizational Reports

 Case Studies

 Business magazines

 Books

 Journals on e-learning Industry.

 Newspapers

4.3. SAMPLING METHOD

In order to study the sample procedure, the method adopted was “CONVENIENT RANDOM
SAMPLING” due to the time constraint.

4.4. SAMPLE AREA

MUMBAI
4.5. SAMPLE SIZE:

The sample size for study was 100 respondents of BOB and ICICI Bank, Mumbai out of which 50
belongs to BOB Bank and 50 belongs to ICICI Bank

Instruments Used:

Google Forms & Data representation technique (MS – Word).

4.6. TOOLS FOR ANALYSIS OF DATA:

Statistical tool used such as bar chart

CHAPTER 5. LIMITATIONS OF STUDY

Though every effort was made to make the report authentic in every sense, yet there are few factors which
might have their influence on the final report. Due to constraints of time and resources, the study is likely to
suffer from certain limitations.
Limitations of the study are:

1. Sometimes respondents did not respond well to all the questions in the questionnaire.

2. The information given by the respondent might be biased, because some of them might not be intended to
give correct information.

3. Some of the respondents of the survey were unwilling to share information.

4. Respondents had psychological barriers in filling up the questionnaires.


5. Most of the customers are not interested to fill the form.
6. Customer did not send the feedback forms on time.
7. Customers in the bank were busy, so it was very difficult to collect answers to questionnaire.
CHAPTER – 6. DATA ANALYSIS AND INTERPRETATION

6.1. COMPARATIVE STUDY OF AGE GROUP WITH GENDER OF CUSTOMERS


LINKING WITH BOB AND ICICI BANKS

A) AGE GROUP

AGE ICICI BANK BANK OF BARODA


20-30 5 7
31-40 18 16
41-50 20 18
more than 50 7 9

20
18 18
16

9
7 7
5

20-30 31-40 41-50 more than 50

ICICI BANK BANK OF BARODA

INTERPRETATION:-

According to survey, when compare to age group of BOB and ICICI bank. In BOB Bank
the more persons 18 belong to 41-50 and in ICICI bank more 20 person belong to 41-50
years.
B) GENDER

GENDER ICICI BANK BANK OF BARODA

MALE 40 30

FEMALE 10 20

45

40

35

30

25

20

15

10

0
ICICI BANK BANK OF BARODA

MALE FEMALE

INTERPRETATION:-

According to survey, when we compare to gender of BOB and ICICI bank. 40 customers
are male and 10 customers female in ICICI but in BOB 30 customers are male and 20
customer are female.
6.2. COMPARATIVE STUDY OF THE CUSTOMERS OF BOB AND ICICI REGARDING
THEIR OCCUPATION.

BANK OF
OCCUPATION ICICI BANK BARODA
SERVICEMAN 14 11
BUSINESSMAN 10 4
HOUSEWIVES 8 12
STUDENTS 11 19

PROFESSIONALS 7 4

20
18
16
14
12
10
8
6
4
2
0
SERVICEMAN BUSINESSMAN HOUSEWIVES STUDENTS PROFESSIONALS

ICICI BANK BANK OF BARODA

INTERPRETATION:

According to survey when we compare the customers of the BOB and ICICI regarding
their occupation. The servicemen in BOB is 11 and ICICI is 14, businessmen in BOB 4 and
10 in ICICI, professionals 4 in BOB 7 in ICICI, student are 11 and 19 in ICICI and BOB
respectively, housewife 12 in BOB 8 in ICICI.
6.3. COMPARATIVE STUDY OF THE CUSTOMERS OF ICICI BANK AND BANK OF
BARODA REGARDING THEIR INCOME PER YEAR.

BANK OF
INCOME ICICI BANK BARODA
NIL 11 15
LESS THAN 50000 9 5
50000 - 150000 16 13
150000 - 300000 7 9
300000 - 500000 4 2
MORE THAN 500000 3 6

16

14

12

10

0
NIL LESS THAN 50000 - 150000 150000 - 300000 300000 - 500000 MORE THAN
50000 500000

ICICI BANK BANK OF BARODA

INTERPRETATION:-

According to survey compare to Income of BOB and ICICI. In BOB bank 9 customer income
lie 150000-300000 and in ICICI bank 16 and 4 customer income between 50000-150000 and
300000-500000 respectively.
6.4. MOST IMPORTANT REASON FOR CHOOSING ICICI AND BOB BANK

FACTORS ICICI BANK BANK OF BARODA


I have traditional bank
9 11
account with the same bank
The branch name of the
1 1
bank
The excellent service
9 5
offered by this bank
ATM service 14 12
Net banking facility 10 9
Location advantage 7 12

16
12
8
4
0
nk nk an
k
i ce ili
ty
ag
e
ba ba b e rv c nt
e e i s s fa a
m th th M g dv
sa of by AT
in a
e e ed nk on
th m er
a
ati
ith na ff tb c
tw ch o Ne Lo
un an i ce
o br rv
a cc e s e
nk Th nt
a ll e
lb ce
na ex
tio Th
e
di
tra
e
av
Ih ICICI BANK BANK OF BARODA

INTERPRETATION:-

According to survey, when I compare to chosen a particular bank. In BOB most of the
customers said that reason of choosing location advantage and in ICICI most customer
said reason to choose bank for A.T.M. services offered by this bank.
6.5. COMPARATIVE STUDY OF THE CUSTOMERS OF BOB AND ICICI BANK
REGARDING THE ACCOUNT FACILITIES PROVIDED TO THEM.

BANK OF
FACILITY ICICI BANK BARODA

Savings Account 26 29

Current Account 15 19

Fixed Account 4 2

NRI 5 0

35

30

25

20

15

10

0
Savings Account Current Account Fixed Account NRI

ICICI BANK BANK OF BARODA

INTERPRETATION:-

According to survey, Comparative Study of the Customers Of BOB And ICICI Bank.
Regarding type of account, most of BOB customers have saving account and ICICI
customers have also saving account.
6.6. COMPARATIVE STUDY OF THE TIME PERIOD OF CUSTOMERS DEALING
WITH BOB AND ICICI BANK

YEARS ICICI BOB

Less than 1 year 11 9

1 to 2 years 12 14

3 to 5 years 14 12

More than 5 years 13 15

15
16 14 14
13
14 12 12
11
12
9
10

0
Less than 1 year 1 to 2 years 3 to 5 years More than 5 years
ICICI BOB

INTERPRETATION:-

According to survey, when I compare to time period of customers dealing with BOB and
ICICI Bank. In ICICI bank most of customers dealing with bank are 3 to 5 years old and
in BOB bank more than 5 years old.
6.7. COMPARATIVE STUDY OF REASONS THAT MAKE CUSTOMER TO
TYPICALLY VISIT BANK BRANCH.

REASONS ICICI BOB

To make a deposit. 20 14

To get advice for investment. 5 9

To inquire about a balance 7 14

To withdraw cash 18 13

20
18
16
14
12
10
8
6
4
2
0
To make a deposit. To get advice for To inquire about a To withdraw cash
investment. balance

ICICI BOB

INTERPRETATION:-

According to survey, In ICICI Bank most customers (20) goes to bank for making a
deposit. And in BOB Bank most customers (14) goes to bank for making deposit and
inquire about a balance.
6.8. COMPARATIVE STUDY FOR MOST SATISFYING FACILITY OFFERED BY
THEM

FACILITY ICICI BOB


ATM 10 15
Loan 7 6

Early cheque clearance 4 2

Preparation of drafts 2 3

Interest package 5 3
Net banking 13 12
Phone banking 9 9

Chart Title
16
14
12
10
8
6
4
2
0
ATM Loan Early cheque Preparation of Interest package Net banking Phone banking
clearance drafts

ICICI BOB

INTERPRETATION:-

According to survey, In ICICI Bank most customers avails Net-Banking facility. And in BOB
Bank most customers avails ATM facility.
6.9. WILL CUSTOMER SHIFT TO ANOTHER BANK IF PROVIDED WITH BETTER
SERVICE

YES NO

ICICI 14 36

BOB 16 34

Chart Title

40
35
30
25
20
15
10
5
0
YES NO

ICICI BOB

INTERPRETATION:-

According to survey, In BOB and ICICI Bank most of the Customers will not shift to another
bank if provided with better service by another banks.
6.10. COMPARISON REGARDING OVERALL SATISFACTION OF CUSTOMER

SATISFACTION ICICI BOB


EXCELLENT 9 8
GOOD 15 13
SATISFACTORY 13 19
AVERAGE 9 4

BELOW AVERAGE 4 6

Chart Title
20
18
16
14
12
10
8
6
4
2
0
EXCELLENT GOOD SATISFACTORY AVERAGE BELOW AVERAGE

ICICI BOB

INTERPRETATION:-

As per the above chart we know that overall satisfaction of the customer. In ICICI Bank most
of the customers have rated GOOD, and in BOB Bank most the customers are Satisfactory
with the Bank.
CHAPTER-7. CONCLUSION & SUGGESTION

According to the study I conducted people in Mumbai are more inclined towards
private banks due to their fast services and friendly staff, although this doesn’t mean they are
playing the banking game perfectly. Both of the banking sectors “public (BOB) and private
(ICICI)” have their own drawbacks. They need to make some changes cause the customers
now days are not only exposed of what type of service is being provided by banks in India
but in the world as a whole. They expect much more than what is actually being provided. So
the new coming banking sector has to provide and cater to all the needs of the customers
otherwise it is difficult to survive in the competition coming up. They not only expect the
safety of money but also best ways to invest that money which need needs to be fulfilled.
Banks need to have a better outlook towards to actually what customers are requiring. Entries
of the private sector banks have made the competition tougher. If a bank is not functioning-
properly it is being closed. Soo it is difficult to face these types of conditions. Here a simple
philosophy can work that the customers are God and we need to follow this to survive and
serve better.

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 to 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.
Chapter – 8. References

www.wikipedia.com

https://www.rbi.org.in/

http://dailytools.in/IndianBankingStructure

www.Researchgate.net

https://www.academia.com

www.scholar.google.co.in

https://www.ripublication.com

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