This research is an empirical assessment of service quality in State Bank of Travancore. Service Quality is the degree of excellence in the service performance. It is the degree and direction of discrepancy of service quality. The difference between the service expectations and service perceptions of customers is what is termed as service quality gap.
The study has been aimed at diagnosing the quality of service rendered by identifying the service quality gap in the regional branch of State Bank of Travancore in Thiruvananthapuram district and making necessary suggestions.
The data for the study has been collected on the basis of simple random sampling method through a questionnaire prepared for the purpose of being filled in at interviews with customers. The data collected has been classified on the basis of age, gender, occupation, annual income and educational background for the purpose of analysis. The data collected was tabulated with care and thereafter analyzed suitably. The analysis has been done on the basis of STATISTICAL & RANK CORRELATION instrument. The basic assumption of it is that the customers evaluate a firm’s service quality by comparing their five perceptions and expectations. The scaling in SERVICE QUALITY is based on the five dimensions of service quality namely tangibility, reliability, responsiveness, assurance and empathy.
The results of this study also offer support for the intuitive notion that improving service quality can increase the competitiveness of the organization. The report has been presented on the basis of the analysis made and suitable suggestion have been recommended.
A study on service quality assessment in state bank of travancore
1. OF CONTENTS
CHAPTER
I
1.1
1.2
1.3
1.4
1.5
1.6
CONTENT
Title page
Certificate
Declaration
Acknowledgment
Abstract
Table of contents
List of figures
List of tables
INTRODUCTION
PAGE
NO
I
II
III
IV
V
VI
VII
X
Introduction
Title of Study
Objectives of Study
Research Design
Scope of Study
Limitation
LITERATURE REVIEW
2
2
3
3
5
5
2.1
2.2
2.2.1
2.3
2.4
2.5
2.6
2.7
2.8
Concept Service Quality
Customer’s Expectation
Expected Service
Zone of Tolerence
Customer Perception
Customer Satisfaction Vs Service Quality
Customer Satisfaction
Determinants of Customer Satisfaction
Outcome of Customer Satisfaction
7
8
9
10
12
13
14
14
15
2.9
2.10
2.11
2.11.1
2.12
2.13
Service Quality
Service Quality Dimensions
Gap Model
Closing Customer Gap
Methods of Measuring Service Quality
Brand Loyality
17
18
20
21
21
22
INDUSTRY PROFILE
Invention of Banking
Evolution of Banking Industry
Post Independence Scenario
Indian Banking
25
25
26
27
II
III
3.1
3.2
3.3
3.4
1
2. 3.5
3.6
IV
4.1
4.2
4.3
4.4
4.5
4.6
4.7
V
5.1
VI
6.1
6.2
VII
7.1
Banks in Economy
Other Highlights
COMPANY PROFILE
SBT History
Memorable Milestone
SBTMI
Products & Services
Other Products & Services
SBT Services
SBT Launches Life Insurance
DATA ANALYSIS & INTERPRETATION
Statistical Analysis
FINDINGS & SUGGESTIONS
Findings
Suggestions
CONCLUSION
Conclusion
ABBREVIATIONS
BIBLIOGRAPHY
APPENDIX
2
27
28
30
31
32
34
49
51
52
55
86
92
94
96
98
99
100
3. LIST OF FIGURES
Figure no
CONTENT
Page No
2.1
Level of Service Quality Expectation
10
2.2
Zone of Tolerance for a Customer
11
2.3
Different Zone of Tolerance for Different Service
12
Dimensions
2.4
Customer Perception of Quality & Customer
14
Satisfaction
2.5
Relation between Customer Satisfaction & Loyality
16
2.6
Gap Model of Service Quality
21
5.1
Chart Showing Accounts Maintenance
55
5.2
Chart Showing Awareness About Services
56
5.3
Chart Showing Sex wise Classification
58
5.4
Occupation wise Classification
59
5.5
Income wise Classification
60
5.6
Education wise Classification
62
5.7
Response of Staff for Loans
63
5.8
Perfection of ATM
65
5.9
Awareness Through Forms & Brochures
66
5.10
Account Opening Time
68
5.11
Mobile Banking Facility
69
5.12
Knowledge of Staff
71
5.13
Banking Time
73
5.14
General Behavior of Staff
74
5.15
Account with Other Banks
75
5.16
Response of Staff Towards Customer’s Enquiry
78
5.17
Improving Quality of Service
80
5.18
Deposit & Advance Schemes
82
5.19
Mistakes Made By Staff of SBT
83
3
4. 5.20
Opinion About Website
85
LIST OF TABLES
Table no
CONTENT
Page no
5.1
Accounts Maintained
54
5.2
Awareness About Service
56
5.3
Sex wise Classification
58
5.4
Occupation wise Classification
59
5.5
Income wise Classification
60
5.6
Education wise Classification
61
5.7
Response of Staff for Loans
63
5.8
Perfection of ATM
64
5.9
Awareness Through Forms & Brochures
66
5.10
Account Opening Time
67
5.11
Mobile Banking Facility
69
5.12
Knowledge of SBT Staff
71
5.13
Satisfaction Towards Banking Time
72
5.14
General Behavior of Staff
74
5.15
Account with other Bank
75
5.16
Customer’s Enquiry
78
5.17
Improving Quality of Service
80
5.18
Deposits & Advances Schemes
81
5.19
Mistakes Made By SBT Staff
83
5.20
Opinion About Website
84
Testing of Hypothesis 1
87
Testing of Hypothesis 2
88
Rank Correlation
89
4
6. 1.1 INTRODUCTION
This research is an empirical assessment of service quality in State Bank of
Travancore. Service Quality is the degree of excellence in the service performance. It is the
degree and direction of discrepancy of service quality. The difference between the service
expectations and service perceptions of customers is what is termed as service quality gap.
The study has been aimed at diagnosing the quality of service rendered by
identifying the service quality gap in the regional branch of State Bank of Travancore in
Thiruvananthapuram district and making necessary suggestions.
The data for the study has been collected on the basis of simple random sampling
method through a questionnaire prepared for the purpose of being filled in at interviews with
customers. The data collected has been classified on the basis of age, gender, occupation, annual
income and educational background for the purpose of analysis. The data collected was tabulated
with care and thereafter analyzed suitably. The analysis has been done on the basis of
STATISTICAL & RANK CORRELATION instrument. The basic assumption of it is that the
customers evaluate a firm’s service quality by comparing their five perceptions and expectations.
The scaling in SERVICE QUALITY is based on the five dimensions of service quality namely
tangibility, reliability, responsiveness, assurance and empathy.
The results of this study also offer support for the intuitive notion that improving
service quality can increase the competitiveness of the organization. The report has been
presented on the basis of the analysis made and suitable suggestion have been recommended.
1.2 TITLE OF THE STUDY
“Assessment of Service Quality in State Bank of Travancore”
OBJECTIVES OF THE STUDY
The study has been aimed at attaining the following objectives;
To understand the existing Service Quality system in SBT.
To investigate whether the Service Quality of SBT is Capable of addressing all demands
made by customer.
To identify the difference between Expectation & Perception of customers in
Service Quality offered by SBT.
6
7. 1.4 RESEARCH DESIGN
Once the problem has been carefully defined, the researcher needs to
establish the plan that will outline the investigation to be carried out. The research design
indicates the steps that have been taken and in what sequence they occurred.
a) SOURCES OF DATA
Primary data and secondary data were collected for the purpose of the study.
Primary sources
Primary sources of data were collected through questionnaire prepared for the purpose
filled in at interviews with customers.
Secondary sources
Secondary sources of data for the study were collected from official website of the
organization and from books and other published sources.
b) SAMPLING DESIGN
Universe of the study
The study has been conducted at the Main Branch of State Bank of Travancore in
Thiruvananthapuram.
Sample Frame
Sample frame or source list is the frame from which the sample is drawn for the study. It
represents the whole population. Here the sample includes the customers of the bank.
Sample Size
The Sample Size collected for the study is 10
.
7
8. Sampling Technique
The simple random sampling method was used for the primary data collection. Simple
random sampling is the basic sampling technique where we select a group of subjects (a sample)
for study from a larger group (a population). Each individual is chosen entirely by chance and
each member of the population has an equal chance of being included in the sample. Every
possible sample of a given size has the same chance of selection; i.e. each member of the
population is equally to be chosen stage in the sampling process.
c) DATA ANALYSIS TECHNIQUE
The data collected was tabulated with care and there after analyzed suitably. The
analysis was done on the basis of the Statistical analysis, Rank analysis. These survey instrument
is used for measuring customer satisfaction with respect to different aspects of service quality.
1.5 SCOPE OF THE STUDY
The banking industry is in the current scenario is booming and undergoing a rapid
growth. The emergence of new generation private and foreign banks in the Indian banking sector
has raised the competitiveness in the industry. The study aims at identifying the extend to which
the service quality in a bank affects its competitiveness. The outcome of the study reveals the
current perception about the bank rooted in the minds of the customers which could be useful in
formulating the strategies in future operations of the organization, for the attainment of its goals
in this competitive scenario.
1.6 LIMITATIONS OF THE STUDY
Chances of biased responses from the customers
The study has been conducted in only Thiruvananthapuram branch of State Bank
of Travancore
8
10. 2.1 SERVICE QUALITY: IMPORTANCE IN THE PAST TWO
DECADES
The service sector is expanding at an increasing rate and is becoming intensely
competitive (Chen, Gupta and Rom, 1994; Johnson, Dotson and Dunlap, 1988). As such, service
quality has become a very important issue in marketing and has received much attention since
the deregulation, and thus increased competition, of many service industries (e.g.: banking and
telecommunications in the 1980’s and utilities in the 1990’s). Service quality has become so
important that some businesses, not only need high levels of service quality for success, but in
some cases, need it for survival (Buzzel and Gayle, 1987; Chen, Gupta and Rom, 1994; Ford
Motor Company, 1990; Germano, 1992; Hauser and Clausing, 1988; Howcroft, 1993; Kearns
and Nadler, 1992; Kettinger and Lee, 1995; Koska, 1990; Lovelock, 1983; Phillips, Chang and
Buzzel, 1983; Rudie and Wansley, 1985; Rust, Zahorik and Keiningham, 1995; Schmenner,
1986; Thompson,
Service quality is so important that companies have gone to great efforts to evaluate and
keep records of service quality levels (Hauser and Clausing, 1988; Phillips, Chang and Buzzell,
1983; Zeithaml, Parasuraman and Berry, 1990). It is essential to determine how to achieve high
service quality and how to communicate the benefits of service quality (Howcraft, 1993).
Companies such as Federal Express and Xerox are well aware of the importance and have
received rewards for their hard work in providing quality services (Germano, 1992; Kearns and
Nadler, 1992). By offering high levels of service quality, the Hospital Corporation of America
and Ford Motor Company are another two well know companies that have benefited in terms of
higher returns on investment and higher profits (Ford Motor Company, 1990; Koska, 1990).
Service quality is also important to businesses from a referral and repeat customers
perspective. If service providers do not perform up to the expected level of the customer, it
negatively affects service quality ratings (Brown and Swartz, 1989). This can cause negative
word-of-mouth communications to run rampant. Conversely, if service providers perform at or
above the customer’s expectation, positive word-of-mouth is spread. That in turn, leads to repeat
customers and referrals. Service quality survey instruments identify the level of services
provided by a company, so that improvements can be made according to the identified results.
Thus, the better companies understand how their customers evaluate their services.
10
11. Upper management certainly recognizes the importance of service quality. Chen, Gupta
and Rom (1994) found that executives believe that improving the levels of product and service
quality was the most crucial challenge faced by the firms, and they act accordingly. Many
companies felt the need to see the quantifiable financial benefits of service quality over other
company investments. Rust, Zahorik and Keiningham (1995) provided this justification by
creating a method to quantify service quality. The authors were able to suggest where additional
investments should be made so that it would be deemed worthwhile and, at the same time,
determine the optimal expenditure level. Researchers have varying suggestions for uses of
service quality measurement instruments. Some researchers recommend using service quality
instruments in order to spot problems, determine how to correct the problems and to evaluate the
improvements (Kettinger and Lee, 1995). Others believe that companies should use service
quality surveys to be warned of possible problems that could lead to departing customers
(Zeithaml, Berry and Parasuraman, 1996). Additionally, these same researchers suggest using the
survey to modify service offerings to be consistent with what the customer wants. Given the
importance of service quality to the business sector, Taylor As competition intensifies, many
businesses continue to seek profitable ways in which they differentiate themselves from
competitors. One way to ensure a firm's success, or even just survival, is to differentiate from the
competition by delivering a high degree of service quality (Rudie and Wansley, 1985;
Thompson, DeSouza and Gale, 1985). Lovelock (1983) believes that in order to become
effective managers in the service area, they must improve marketing and development skills.
Schmenner (1986) warned that service businesses should not consider themselves to be
drastically different and remain cut off from each other, because this could increase their fatality
rate. As an alternative, businesses in the service area should consider themselves to be similar,
instead of exclusive businesses on their own (Schmenner, 1986).
2.2 CUSTOMER’S EXPECTATIONS
Customer’s expectations are beliefs about service delivery that function 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 service providers. Knowing what
11
12. the customer expects To say that expectations are reference points against which service delivery
is compared is only a beginning.
The level of expectation can vary widely depending on the
reference point the customer holds.
Although everyone has an intuitive sense of what
expectations are, service providers need a far more thorough and clear definition of expectations
in order to comprehend, measure, and manage them.
2.2.1 EXPECTED SERVICE: LEVELS OF EXPECTATIONS
Consumers hold different types of expectations about service. The highest can be termed
desired service:
It is the level of service the customer hopes to receive – the “wished for” level of
performance from any service provider. Desired service is a blend of what the customer believes
“can be” & “should be”. The expectations reflect the hopes and wishes of these consumers:
without these hopes and wishes and the beliefs that they may be fulfilled, they would probably
not have purchased the desired service or product. Customers hope to achieve their service
desires but recognize that this is not always possible. We called the threshold level of acceptable
service adequate service – the level of service the customer will accept. Adequate service
represent the “minimum tolerable expectation” the bottom level of performance acceptable to
customers.
Desired service expectations seem to be the same for the service providers within
industry categories or subcategories that are viewed as similar by customers. The adequate
service expectation level, on the other hand, may vary
12
13. Ideal expectations or
desires
HIGH
Normative “should”
expectations
“Everyone
says
this
restaurant is as good as
one in France and I want to
go somewhere very special
for my anniversary
“as expensive as this
restaurant is, it ought to
have excellent food and
service”
“most
times
this
restaurant is very good,
but when it gets buzy the
service is slow.
Experience based norms
Acceptable expectations
“I expect this restaurant to
serve me in an adequate
manner”
Minimum tolerable
expectations
“I expect terrible service
from this restaurant but
come because the price is
low.
LOW
Fig 2.1 Levels of service quality expectations
2.3 THE ZONE OF TOLERANCE
Services are heterogeneous in that performance may vary across providers, across
employees from the same provider, and even with the same service employee. The extent to
which customers recognize and are willing to accept the service with variation is called the zone
of tolerance and shown in figure 2.2. If service drops below adequate service – the minimum
level considered acceptable – customers will be frustrated and their satisfaction with the
company will be undermined. If service performance is higher than these zone of tolerance at
the top end – where performance exceeds desired service – customers will be very delighted and
LOW
13
14. probably be quite surprised as well. One might consider the zone of tolerance as the range of
window in which customers do not particularly notice the service performance. When it falls
outside the range, the service gets the customer’s attention in either positive or negative way
Desired Service
Zone of Tolerance
Adequate Service
Fig 2.2 Zone of tolerance for a customer
Customer’s service expectations are characterized by a range of level, bounded by
desired and adequate service, rather than a single level. This tolerance zone, representing the
difference between desired service and the level of service considered adequate, can expand and
contract within a customer. Marketer must try to understand not just the size and boundary
levels for the zone of tolerance but also when and how the tolerance level fluctuates with a given
customers.
Another aspect of variability in the range of reasonable service is that different customers
possess different tolerance zones. Some customers have narrow zones of tolerance, requiring a
tighter range of service from providers, where as other customers allow a greater range of
service.
An individual customer’s zone of tolerance increases or decreases depending on a
number of factors, including company – controlled factors such as price. When prices increase,
customers tend to be less tolerant of poor service and vice versa.
2.3.1 ZONES OF TOLERANCE VARY FOR SERVICE DIMENSIONS
Customer’s tolerance zones also vary for different service attributes or dimensions. The
more important the factor, the narrower the zone of tolerance is likely to be. In general,
14
15. customers are likely to be less tolerant about un-reliable service than other service deficiencies,
which means that they have higher expectations for this factor.
In addition to higher expectations for the most important service dimensions and
attributes, customers are likely to be less willing to relax these expectations than those for less
important factors, making the zone of tolerance for the most important service dimensions
smaller and the desired and adequate service levels higher.
Levels of Expectation
Desired Service
Desired Service
Zone of Tolerance
Adequate Service
Zone of Tolerance
Adequate Service
Most important factors
Least important factors
Fig.2.3 Different zones of tolerance for different service dimensions
The fluctuations in the individuals customer’s zone of tolerance is more a function of
changes in the adequate service level, which moves readily up and down due to situational
circumstances, than in the desired service level, which tends to move upward incrementally due
to accumulated experiences. Desired service is relatively idiosyncratic and stable compared with
adequate service, which moves up and down in response to competition and other factors.
15
16. 2.4 CUSTOMER PERCEPTION
Perceptions are always considered relative expectations.
Because expectations are
dynamic, evaluation may also shift over the time – from person to person from culture to
cultures.
Customers perceive the services in terms of the quality of the service and how satisfied
they are allover with their experiences.
These customers – oriented terms – quality and
satisfaction – have been the focus of attention for executives and researchers alike over the last
decade or more. Companies today organize so that they can compete more effectively by
distinguishing themselves with respect to service quality and improved customer satisfaction
.2.5 CUSTOMER SATISFACTION VS SERVICE QUALITY
Reliability
Responsiveness
Assurance
Interaction
quality
Empathy
Tangibles
Reliability
Responsiveness
Assurance
Situational
factors
Service quality
Physical
environment
quality
Empathy
Tangibles
Customer
satisfaction
Reliability
Product quality
Responsiveness
Assurance
Empathy
Outcome
quality
Tangibles
Price
Fig. 2.4 Customer perception of Quality and Customer Satisfaction
16
Personal
factors
17. Although they have certain things in common, satisfaction is generally viewed as a
broader concept, whereas service quality assessment focuses specially on dimensions of service.
Based on this view perceived service quality is a component of customer satisfaction.Service
quality is a focused evaluation that reflects the customer’s perceptions of elements of service
such as interaction quality, physical environment quality, and outcome quality. These elements
are in turn evaluated based on specific service quality dimensions: Reliability, assurance,
responsiveness, empathy and tangibles. Satisfaction, on the other hand, is more inclusive: it is
influenced by perception of service quality, product quality and price as well as situational
factors and personal factors.
2.6 CUSTOMER SATISFACTION
Satisfaction is the customer’s fulfillment response. It is a judgment that a product or a
service feature, or the product or service itself, provides a pleasurable level of consumption –
related, fulfillment. In minimal technical terms, this definition can be translated to mean that
satisfaction is the customers evaluation of a product or service in It is also important to recognize
that, to measure the customer satisfaction at a particular point of time as if it were static,
satisfaction is a dynamic, moving target that may evolve over the time, influenced by a variety of
factors. Particularly when product usage or the service experience takes place over the time,
satisfaction may be highly variable depending on which point the usage or experience cycle is
focused on.
2.7 DETERMINANTS OF CUSTOMER SATISFACTION
Customer satisfaction is influenced by specific product or service features and by
perception of quality as suggested in Fig 2.6. Satisfaction is also influenced by customers
Product and service features: Customer satisfaction with a product or service is
influenced significantly by the customer’s evaluation of product or service features. Customers
of services will make trade – offs among different service features depending on the type of
service being evaluated and the criticality of the service.
Customer emotions: Customer’s emotions can also affect their perceptions of
satisfaction with products and services. These emotions can be stable, pre-existing emotions.
Attributions for service success or failure: Attributions – the perceived causes of
events – influence perceptions of satisfaction as well. When they have been surprised by an
17
18. outcome (the service is either much better or much worse than expected) consumers tend to look
for the reasons, and their assessments of the reasons can influence their satisfaction.
Perceptions of equity or fairness: Customer satisfaction is also influenced by
perceptions of equity and fairness.
Customers ask themselves: have I been treated fairly
compared with other customers? Did other customers get better treatment, better prices, or better
quality service? Did I pay a fair price for the service? Was I treated well in exchange for what I
paid and the effort I expended?
Other customers, family members and coworkers: In addition to product and service
features and one’s own individual feelings and beliefs, consumer satisfaction is often influenced
by other people like other customers, family members and co-workers.
2.8 OUTCOMES OF CUSTOMER SATISFACTION
Individual firms have discovered that increasing the levels of customer satisfaction can be
linked to customer loyalty and profits. There is an important relationship between customer
satisfaction and customer loyalty. This relationship is particularly strong when customers are
very satisfied. Thus firms that simply aim to satisfy customers may not be doing enough to
endanger loyalty – they must instead aim to more than satisfy or even to delight their customers.
At the opposite end of the satisfaction spectrum, researchers have also found that there is a
strong link between dissatisfaction and disloyalty – or defection.
Loyalty can fall off
precipitously when customers reach a particular level of dissatisfaction or when they are
dissatisfied with service.
18
19. 100
80
60
40
20
0
Very
dissatisfied
1
Dis-satisfied
2
Neither
satisfied nor
dissatisfied
3
4
Satisfied
Very
satisfied
5
Most
satisfied
Fig 2.5 Relationship between customer satisfaction and loyalty in competitive industry
2.9 SERVICE QUALITY
Service quality is a critical element of customer perception. In the case of pure
services, service quality will be the dominant element in customers’ evaluations. In cases where
customer service or services are offered in combination with a physical product, service quality
also determine customers satisfaction.Customers judge the quality of services based on their
perceptions of the technical outcome provided, the process by which that outcome was delivered,
and the quality of the physical surroundings where the service is delivered.
Similarly, a
restaurant customer will judge the service on her perceptions of the meal (technical outcome
quality) and on how the meal was served and how the employees interacted with here
(interaction qualify) the décor and surroundings (physical environmental quality) of the
restaurant will also impact on customer service quality.
Service quality is defined as how well the service meets or exceeds the customers’
expectations on a consistent basis (Crosby, 1979; Parasuraman, Zeithaml and Berry, 1985). The
difficulty, however, is that service quality, unlike product quality, is more abstract and elusive,
19
20. because of features unique to services: intangibility, inseparability, heterogeneity (Parasuraman,
Zeithaml and Berry, 1985) and perishability (Kasper and Lemmink, 1989) and is therefore
difficult to measure. To remedy this difficulty, Parasuraman, Zeithaml and Berry (1985)
established the “gap model”. Parasuraman, Zeithaml and Berry (1985) conducted focus groups
and interviewed executives. In doing so, they identified five "gaps" that can cause quality
problems in organizations. The first gap is the consumer expectations-management perceptions
gap. This gap resulted from the discrepancies between the perceptions of executives and the
perceptions of consumers on things like privacy and security issues. Basically, the executives did
not understand the customers’ expectations. Service firms also experienced problems in
providing services as quickly as the customers wanted. This created the second gap, which is
called the management perception-service quality specification gap. The third gap is the service
quality specification service gap.
Executives realize that this gap includes the vital role of the contact personnel. This is a
difficult aspect of providing services, because of the inconsistency in the behavior of personnel.
The fourth gap is the service delivery-external communications gap. This gap forms, based on
the capability of the firm to deliver what is promised and to completely inform consumers of all
the things the service firm is doing that benefit customers. Firms should not promise the
customer more than the service firm is capable of delivering. These problems in quality created
gap five. The fifth gap is the difference between the expectations customers have and the
perceptions of service actually received and is pertinent to providing high levels of service
quality. That is, Gap 5 is the expected service-perceived service gap.
2.10 SERVICE QUALITY DIMENSIONS
Research suggests that customers do not perceive quality in a uni-dimensional way,
but rather judge quality based on multiple factors relevant to the context. For example, quality of
automobiles is judged by factors such as reliability, serviceability, prestige, durability,
functionality, and ease of use, where as quality of food products might be assessed on other
dimensions (flavour, freshness, aroma and so on). Similarly, specific dimensions of service
quality have been identified through the pioneering research of Parasuraman, Seithaml, and
Berry. Their research identified five specific dimensions of service quality that apply across a
20
21. variety of service contexts. The five dimensions defined here are shown in figure 2.6 as criteria
by which interaction, physical environment outcome quality is judged.
Reliability: ability to perform the promised service dependably and accurately
Responsiveness: Willingness to help customers and provide prompt service
Assurance: Employees’ knowledge and courtesy and their ability to inspire trust
and confidence.
Empathy: Caring, individualized attention given to customers.
Tangibles:Appearance of physical facilities, equipments. Personnel and written
materials.
2.10.1 RELIABILITY
Delivering on promises –Of the five dimensions reliability has been
consistently shown as the most important determinant of perception of service quality among US
customers. Reliability is defined as the ability to perform the promised service dependably and
accurately. In its broadest sense, reliability means that the company delivers on its promises –
promises about delivery, service provision, problem resolution, and pricing. Customers want to
do business with companies that keep their promises, particularly their promises.
2.10.2 RESPONSIVENESS
Responsiveness is the willingness to help customers and to provide prompt
service. This dimension emphasizes attentiveness and promptness in dealing with customer
request, questions, complaints, and problems. Responsiveness communicated to customers by
the length of the time they have to wait for assistance, answers to questions, or attention to
problems. Responsiveness also captures the notion of flexibility and ability to customize the
service, to customer needs.
2.10.3 ASSURANCE
Assurance is defined as employees’ knowledge and courtesy and the ability of
the firm and its employees to inspire trust and confidence. This dimension is likely to be
particularly important for services that the customer perceives as involving high risk and/ or
about which they feel uncertain about their ability to evaluate outcomes
21
22. 2.10.4 EMPATHY
Empathy is defined as the caring, individualized attention the firm provides its
customers. The essence of empathy is conveyed through personalized or customized service,
that the customers feel that are unique and special. Customers want to be understood by and
important to firms that provide service to them. Small service firms often know customers by
name and build relationship that reflects their personal knowledge of customer requirements and
references. When such a small firm competes with larger firms.
2.10.5 TANGIBLES
Tangibles are defined as the appearance of physical facility, equipment, personal,
and communication material. All of these provide physical representation or images of the
services that customer particularly new they will use to evaluate quality. Service industries that
emphasize tangibles in their strategies include hospitality services where the customer visits the
establishment to receive the service, such as restaurants and hotels,retail stores. All though
tangibles are often used by service companies to enhance their image, provide continuity, signal
quality to customers, most companies combine tangibles with another dimensions to create a
service quality strategy for the firm. For example: Giffi Lube emphasis both responsiveness and
tangibles – providing fast, efficient service and comfortable, clean waiting area. In contrast,
firms that don’t pay attention to the tangibles dimensions of the service strategy can confuse and
even destroy on otherwise good strategy.
2.11 THE INTEGRATED GAPS MODEL OF SERVICE QUALITY
Effective service marketing is a complex understanding involving many different
skills and tasks. Executives of services organizations have long been confused about how to
approach this complicated topic in an organized manner.
The gaps model positions the key
concepts, strategies, and decisions in services marketing in a manner that begins with the
customer and builds the organization’s tasks around what is needed to close the gap between
customer expectations and perceptions. The integrated gaps model of service
The following four provider gaps shown below the horizontal line in Figure 2.6 are
the
Gap 1: Not knowing what customers expect
Gap 2: Not selecting the right service designs and standards
22
23. Gap 3: Not delivering to service standards
Gap 4: Not matching performance to promise.
Expected
service
Customer gap
Customer
Perceived
service
Company
GAP 2
GAP 4
Service delivery
Service delivery
GAP 1
GAP 3
External
communications to
customers
Customer-driven service
designs and standards
Company perceptions of consumer
expectations
Fig. 2.6 Integrated gaps model of service quality
2.11.1 CLOSING THE CUSTOMER GAP
Above the center horizontal line in figure 2.6 are the two boxes that correspond
to customer expectations and customer perceptions. Customer perceptions are subjective
assessments of actual service experiences: customer expectations are the standards of or
reference points for, performance against which service experiences are compared. The sources
of customer expectations consists of marketer controlled factors, such as advertising, as well as
factors that the marketer has limited ability to affect, such as innate personal needs. Ideally,
expectations and perceptions are identical: customers perceive that they get what they think they
will and should. In practice, a customer gap typically exists.
23
24. 2.12 METHODS OF MEASURING SERVICE QUALITY
One of the most versatile, powerful, prominent and sophisticated techniques
available for analyzing complex relationships in causal modeling is SEM (Structural Equation
Modeling). SEM has been used in psychology (Anderson and Gerbing, 1988; Hansell and White,
1991), sociology (Lavee, 1988; Lorence and Mortimer, 1985), child development (Anderson,
1987; Biddle and Marlin, 1987) and management (Tharenou, Latimer, and Conroy, 1994).
Specifically, SEM assesses the structural and measurement models of the multivariate
theoretical problem. SEM combines the features of multiple regression, factor analysis and path
analysis to allow the examination of complex relationships. It provides a simultaneous estimation
of the model as a whole, the estimation of causal relationships among latent constructs with
multiple indicators. Inclusion of both measurement and structural properties of theoretical
models, measurement of non-recursive causation, measurement of direct as well as indirect
effects, inclusion of measurement error and correlation of residuals.
SEM requires the researcher to provide a starting point called the hypothesized model.
From there, SEM provides feedback through a series of iterative modification indices that guides
the researcher to the final model, which maximizes explanatory power (Arbuckle and Wothke,
1999; Biddle and Marlin, 1987; Hair, Anderson, Tatham and Black, 1995; Joreskog, 1973; 1978;
Joreskog and Sorbom, 1984). The overall model is assessed using goodness-of-fit criteria. The
first measure, a chisquare test, indicates the model’s overall fit. A second indicator of the
model’s fit is the ratio, chi-square/degrees of freedom. If the ratio is below 5.0 when the sample
size is greater than 200 (or below 3.0 when the sample size is less than 200), the model’s fit is
good (Kettinger and Lee, 1995).
Individual relationships are examined for statistical significance as well. The effects of
the exogenous variables on the endogenous variables (gamma paths) and the effects of the
endogenous variables on the endogenous variables (beta paths) are estimated using regression
coefficients. Each path forms its own hypothesis. All causal relationships should be significant at
the 95% confidence level.
2.13 BRAND LOYALTY
The degree to which consumers are committed to particular brands of goods or services
depend on no. of factors: the cost of changing brands(switching cost), the availability of
24
25. substitutes, the perceived risk associated with the purchase, and the degree to which they have
obtained satisfaction in the past etc. It may be more costly to change brands as awareness of
substitutes is limited, and because higher risks may accompany services, consumers are more
likely to remain customers of particular companies with services or goods. Greater search costs
and monetary costs may be involved in changing brands of services than in changing brands of
goods. Because of the difficulty in obtaining information about services, customers may be
unaware of alternative or substitutes for their brands, or they may be uncertain about the ability
of alternatives to increase satisfaction over present brands. If consumers perceive greater risks
with services, as is hypothesized here, they probably depend on brand loyalty to a greater extent
than when they purchase products. Brand loyalty, described as a means of economizing decision
effort by substituting habit for repeated, deliberate decision, functions as a device for reducing
the risks for consumer decisions.
Final reason for consumers being more brand loyal with services, is the recognition of
the need for repeated patronage in order to obtain optimum satisfaction from the seller.
Becoming a regular customer allows the seller to gain knowledge of the customer’s tastes and
preferences, ensures better treatment, and encourages more interest in the consumer’s
satisfaction. Thus a consumer may exhibit brand loyalty to cultivate a satisfying relationship
with the seller. This is more pre-dominant in the case of corporate consumers, who regularly
make purchases, year after year.
Brand loyalty has two sides. The fact that a service provider’s own customers are brand
loyal is not a problem. The fact that the customers of the provider’s competitors are difficult to
capture, however, creates special challenges. The marketer may need to direct communications
and strategy to the customers of competitors, emphasizing attributes and strengths that he or she
possesses and the competitor lacks. Marketers can also facilitate switching from competitors’
services by reducing switching costs.
25
27. 3.1 THE INVENTION OF BANKING
The history of credit and banking goes back much further than the history of coins.
Nevertheless the story of the origins of money goes back even further still. The invention of
banking preceded that of coinage. Banking originated in Ancient Mesopotamia where the royal
palaces and temples provided secure places for the safekeeping of grain and other commodities.
Receipts came to be used for transfers not only to the original depositors but also to third parties.
Eventually private houses in Mesopotamia also got involved in these banking operations and
laws regulating them were included in the code of Hammurabi.
In Egypt too the centralization of harvests in state warehouses also led to the development of a
system of banking. Written orders for the withdrawal of separate lots of grain by owners whose
crops had been deposited there for safety and convenience, or which had been compulsorily
deposited to the credit of the king, soon became used as a more general method of payment of
debts to other persons including tax gatherers, priests and traders. Even after the introduction of
coinage these Egyptian grain banks served to reduce the need for precious metals, which tended
to be reserved for foreign purchases, particularly in connection with military activities.
3.2 EVOLUTION OF BANKING INDUSTRY IN INDIA
Organized banking was active in India since the establishment of the General Bank
of India in 1786. After independence, the Reserve Bank of India (RBI) was established as the
central bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken
over by the government to form state-owned State Bank of India (SBI). RBI had undertaken an
exercise to merge weak banks to strong banks and the total number of banks thus reduced from
566 in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting the credit
needs of all sections of people, the government nationalized 14 large banks in 1969 followed by
another 6 banks in 1980. This period saw enormous growth in the number of branches and the
bank’s branch network became wide enough to reach the weakest sections of the society in a
country like India. SBI's network of 9033 domestic branches and 48 overseas offices is
considered to be one of the largest for any bank in the world. The economic reforms unleashed
by the government in early nineties included banking sector too, to a significant extent. Entry of
27
28. new private sector banks was permitted under specific guidelines issued by RBI. A number of
liberalization and de-regulation measures aimed at consolidation, efficiency, productivity, asset
quality, capital adequacy and profitability have been introduced by the RBI to bring Indian banks
in line with International best practices. With a view to giving the state-owned banks operational
flexibility and functional autonomy, partial privatization has been authorized as a first step,
enabling them to dilute the stake of the government to 51 percent.
As of March 31, 2003, there were a total of 289 scheduled commercial banks in India.
This chart illustrates how the banks were structured in Indian banking industry. It gives the
banking measures of deposits, advances and net profit as at March 31, 2003 for the key
constituents namely, public sector banks, private sector banks (new - which came into existence
after liberalization of nineties and old - which were in existence from before), foreign banks and
regional rural banks. Even though regional rural banks number 196, they have a minuscule share
of 3.4 per cent of customer deposits and 3 per cent of net profit of the industry total. Similarly,
the older private sector banks are mostly regional players and enjoyed a small share. The public
sector banks including the State Bank group (SBI and its subsidiaries) dominate the industry with
77 per cent share of the deposits and 70 per cent share of net profit. Excluding SBI group, public
sector banks still command a very high share of close to 50 per cent share of the total industry in
terms of deposits.
3.3 POST INDEPENDENCE SCENARIO
The post independence scenario is also known as the second phase of Indian Banking
Scenario. During the post independence period there felt a need for nationalized of banks.
Mainstream banking in India was being controlled by few industrialists mostly
serving the narrow interest of industries to which they were connected and catering to the
needs of a certain class of customers - this termed as "class banking". A liberal credit policy was
not followed in lending to the priority and neglected sectors, including Agriculture and SSI.
Thus, a need was felt literally overhaul the Indian banking system to serve the needs of the
economically weaker sections of the society across the length and breadth of the country.
Several social control measures were contemplated to overcome the deficiencies outlined above
the in the working of banks in India. The first step towards achieving this objective was taken
when banking laws (amendment) act was passed in December 1968. However the ultimate step
28
29. was taken by GOI through an ordinance in July 1969 when 14 major commercial banks were
nationalized. These banks had deposit, which constituted 87.5% of total deposits of the
scheduled banks in the private sector as on 31-12-1968. The bank nationalization bill was passed
in the parliament as the banking companies (acquisitions and transfer of undertaking) act 1970.
Six more banks were nationalized in 1980. Thus the measure was taken to achieve the desired
social and economic objectives.
3.4 INDIAN BANKING- A CHALLENGES AHEAD
In recent years, there has been a considerable widening and deepening of the Indian
financial system, of which banking is a significant component. With greater liberalization, the
financial system has come to play a much larger role in the allocation of resources than in the
past and its role in future can be expected to be much larger than at present.
The growing role of the financial sector in the allocation of resources has significant
potential advantages for the efficiency with which our economy functions. Consequently, the
adverse consequences of malfunction of the financial system are likely to be more severe than
they used to be in the past. Hence, all the efforts are focused at ensuring greater financial
stability. Given the significance of the Indian banking system, one cannot afford to underplay the
importance of a strong and resilient banking system.
3.5 BANKS IN THE ECONOMY
A bank raises funds by attracting deposits, borrowing money in the inter-bank
market, or issuing financial instruments in the money market or a capital market. The bank then
lends out most of these funds to borrowers. However, it would not be prudent for a bank to lend
out all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can
repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a
deposit with a central bank. This behavior is called fractional-reserve banking and it is a central
issue of monetary policy. Note that under Basel I (and the new round of Basel II), banks no
longer keep deposits with central banks, but must maintain defined capital ratios.
29
30. Asset liability management duly audited
A need for widening the range of products and services was felt in Indian banking
industry. The range of products and services now offered include securitization, venture capital
assistance, factoring, forfeiting, hire purchase and leasing, custodial service, portfolio
management, retail banking etc.
3.6 Other highlights
The innovative process of banking for improved customer service matching
international standards through infusion of technology includes Electronic Fund transfer, Telebanking, 7-day week banking, credit/debit cards; ATMs etc. Thus the professional banker must
be conserving with the dynamics of innovation in commercial banking.
30
32. STATE BANK OF TRAVANCORE
4.1 BRIEF HISTORY
State Bank of Travancore was originally established as Travancore Bank Ltd. In
1945 sponsored by the erstwhile Princely State of Travancore.Under a special statute of the
Indian Parliament(SBI subsidiary Banks Act1959) it has been made an Associate of the State
Bank of India and a member of State Bank Group, the largest banking group in india.The
Regd.office/ Head Office at Poojapura, Trivandrum. Their objective was primarily to extend
financial assistance to the local weavers who were crippled by a crisis in the handloom industry
through mobilising small savings from the community. The bank collected as low as 2 annas
daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme
started in 1948. This scheme is the Bank's brand equity today and the Bank collects around Rs. 2
crore per day under the scheme.
The progress of State Bank of Travancore has been synonymous with the phase of
progressive banking in India. Spanning over 60 years of pioneering expertise, the Bank has
created for itself a solid customer base comprising customers of two or three generations. Being
firmly rooted in rural India and understanding the grassroot realities, the Bank's perception had
vision of future India. It has been propagating innovations in Banking and also has been
receptive to new ideas, without however getting uprooted from its distinctive socio-economic
and cultural ethos. Its philosophy of growth by mutual sustenance of both the Bank and the
people has paid rich dividends. The Bank has been operating as a catalyst of development across
the country with particular reference to the common man at the individual level and in rural/semi
urban centres at the area level.
The Bank is well equipped to meet the challenges of the 21st century in the areas of
information technology, knowledge and competition. A comprehensive IT plan is being put in
place and the skills and knowledge of the Bank's personnel are being upgraded through a variety
of training programmes to promote customer delight in every sphere of its activity. The Bank has
launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500
of our strategic branches with their ATMs are being networked nationwide over a 4 year period.
32
33. 4.2 MEMORABLE MILESTONES IN AN 62-YEAR JOURNEY
Growing Far And Wide
1945 On 10.11.1945, the business of the Bank commenced in Travancore with the name
"Travancore Bank Ltd.," .
1948 First branch of the Bank opened at Travancore Dakshina .
1957 Bank became a member of the Clearing House for the first time at Bombay.
1969 29 branches opened in a single day in rural areas.
1971 200th branch opened at Trisshur in Kerala
1972 Entered Foreign Exchange business by opening Foreign Exchange Department at
Bombay.
1974 Name of the Bank changed from "Travancore Bank Ltd." to "State Bank of
Travancore".
1976 Economic Research Department set up. One of the first few Banks to emphasise on
research in Banking even before nationalisation.
1979 Bank had 306 branches at the time of nationalisation of which 66% State Bank of
Travancore in Rural and Semi Urban centres.
1980 First Staff Training College started at Head Office
1981 First specialised branch in Foreign Exchange opened at Kerala.
1982 Opened a branch Centralised NRE Saving Bank Account Opening at NRI Branch
Ernakulam.
1986 First overseas branch opened at Saudi on 17.8.86.
1991 First Specialised Industrial Finance Branch opened at Mumbai.
1999 Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders
2000 First Specialised Capital Market Services branch opened at Mumbai
2001 First branch under CBS (Core Banking Solution) started operation at Bangalore.
2002 Centralised Banking Solution under the brand name "SBT-e-banking" launched at
33
34. Delhi, Mumbai, Bangalore and Kerala.
2003 Toll Free Voice Mail System for redressal of grievances introduced.
2004 Utility bill payment services through Internet banking introduced.
2005 Introduced On-line reservation of Railway Tickets through Indian Railway Catering
& Tourism Corporation Ltd. (IRCTC) for Internet banking customers of our Bank.
2005 Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of
Rs.40 through Book building route Bank collected Rs.250 Crore and the issue was
oversubscribed by 29.275 times.
2005 Implementation of Venture Capital Scheme of SMALL FARMERS AGRI-
BUSINESS CONSORTIUM (SFAC) Entered into MOU with SFAC for promoting
of investments in Agri-business products.
2006 500th Branch of StateBank of Travancore in Karnataka opened at Navnagar,
Bagalkot.
2006 600th Branch of SBT opened at Tondiarpet, Chennai on 23.03.2006.
2006 Branches opened for the first time in 19 additional districts
2007 Branches opened for the first time in 13 additional districts
2008 Branch network expanded to 16 States and UTs
2008 Branches opened for the first time in 6 new districts
4.3 STATE BANK OF TRAVANCORE MANAGEMENT
INSTITUTE(SBTMI)
SBTMI- An Overview
STATE Bank of Travancore Management Institute (SBTMI), located at
ERNAKULAM, in the backdrop of luxuriant SeaSide, is the apex training institution of SBT for
honing skills in banking and management for the bank's executives and senior personnel. The
Institute was set up in November 1987. The institute has a sprawling campus of 15 acres,
offering a panoramic view of the green valley on the east and Arabian Sea in the west. The fully
residential Institute, with all modern infrastructure expected in an Institution of this nature, like
34
35. well-equipped classrooms, library, computer laboratory, conference hall and auditorium, also
offers a variety of recreation facilities, including a modern gymnasium, 5-hole golf course, minicricket ground, volleyball courts, indoor games, jogging track and so on. Shady fruit bearing
trees, medicinal plants, rose garden and other recreational facilities are provided to rejuvenate the
body and mind The hostel has 65 fully air-conditioned and tastefully furnished rooms
Training Centres & their activities
SBT, under its wings, has Two Training Centres, at Trivandrum and Ernakulam, apart
from a Training Manager. While Training Centres cater to the training needs of Middle
Management, Junior Management and Workmen employees, Training Manager imparts training
mainly to Workmen employees. Like SBT, Training Centres are also well equipped with all
modern learning aids, like computer lab, library, multi-media projectors, seating arrangements to
facilitate "Adult Learning Principles"
Training Programmes
Training activities of the Bank are governed by the policies and procedures laid
down in the Training Manual. Training programmes are classified into two categories, general
programmes and special programmes. 40 General Programmes, in branches like Risk
Management, Credit Management, Recovery Management, Internal Control Management,
Human Resource Management, Marketing and Quality Improvement, Foreign Exchange,
Information Technology, are identified and their course contents, target groups are listed in the
Training Manual. Special programmes are designed based on the recommendations of the
Departments at Head Office and Corporate Office, taking into account the Corporate Goals,
Policies, requirements, business plans and strategies, target group etc.
Training Methodology
"Adult Learning Principles" is practised in all training programmes, where the
emphasis is on group synergy through activities like group discussion, case studies, problemsolving exercises etc.
35
36. E-Learning Initiatives
The Bank has taken its first step in e-learning initiative with the uploading of
reading materials on "Export Finance", Agricultural Lending and Financing SSI on its Intranet
MOU with M/s CMC Limited
The Bank has signed a MOU with M/s CMC Ltd., a Tata Consultancy Services
Group company, to make State Bank of Travancore Institute Management (SBTIM) a Centre of
Excellence of global standards. Under the tie-up high quality management training in Banking
and Finance will be offered with specialisation in Financial Management, Marketing, Human
Resource Management, Communication, Information Technology etc
4.4 PRODUCTS & SERVICES
Bank offers a number of varied products under Deposits, Advances to suit the needs
of all types of customers. Details of products are available in each category under this head. We
offer other services for our customers like Cash Management Services and Gift Cheques.
Bank also have various delivery channels like ATM, Telebanking, Internet Banking
offering specialised products and services at selected branches / centres under Centralised
Banking Solution.
DEPOSIT PRODUCTS
A) Operative Deposit Products
i.
Savings Bank Account
These accounts are designed to help the individuals (personal customers) to
inculcate the habit of saving money and to meet their future requirement of money. Amounts can
be deposited/withdrawn from these accounts by way of cheques / withdrawal slips. It helps the
customers to keep minimum cash at home besides earning interest.
These accounts can be opened by eligible person/s and certain organisations /
agencies (as approved by the Reserve Bank of India (RBI)
36
37.
As required by law, while opening SB account, the Bank will satisfy itself about
the identity. including verification of address, of a person/s seeking to open an account, to assist
in protecting the prospective customer/s, members of the public and ourselves against fraud and
other misuses of the banking system
The Bank requires a satisfactory introduction of the person/s opening the account
by a person acceptable to the Bank
The Bank is required to obtain two recent photographs of the person/s opening the
account, as per RBI directives
The Bank is required to obtain Permanent Account Number (PAN) or General
Index Register (GIR) Number or alternatively obtain declaration in Form No.60 or 61 as per the
Income Tax Act (vide Section 139 A) from the person/s opening the account
The Bank will provide to the prospective customers details of the documents
required for identification of the person/s opening the account in addition to a satisfactory
introduction. Documents normally accepted are the current gas / telephone / electricity bill or
voter's identity card or driving licence or passport etc
The account holder is required to maintain certain minimum balance in the
account, as specified by the Bank from time to time, separately for computerised and noncomputerised branches and also depending on, whether account holder wants to avail the cheque
book facility or not. Non-compliance of this would attract service charges. Interest at 3.50% p.a.
is presently paid on half yearly basis depending on minimum balance between the 10th day and
last day of the month, with a minimum of Re.1/-.
Cheques, dividend warrants drawn in the name of account holder/s will only be
collected through this account. Instruments endorsed in favour of the account holder/s will not be
collected through savings bank account
Business transactions shall not be routed through Savings Bank Account. If
routed, the Bank will recover the interest paid and may also close the account. The Bank has the
right to close any undesirable/unremunerative account without giving any reason by a simple
notice to the account holders.
37
38. ii) Current Account
Current Accounts can be opened by individuals, partnership firms, private and
public limited companies, HUFs/specified associates, societies, trusts, etc
As required by law, while opening this account, the Bank will satisfy itself about
the identity, including verification of address, of a person/s seeking to open an account, to assist
in protecting the prospective customer/s, members of the public and ourselves against fraud and
other misuses of the banking system
The Bank requires a satisfactory introduction of the person/s opening the account
by a person acceptable to the Bank.
The Bank is required to obtain two recent photographs of the person/s opening /
operating the account, as per R B I directives
The Bank is required to obtain Permanent Account Number (PAN) or General
Index Register (GIR) Number or alternatively obtain declaration in Form No.60 or 61 as per the
Income Tax Act (vide Section 139 A) from the person/s opening the account (i.e. including
partners of Registered / Unregistered partnership as also Registered / Incorporated bodies /
companies
Minimum balance as stipulated from time to time will be required to be
maintained.
No interest is paid on credit balances kept in current account.
Service charges are levied for Ledger folio used, Cheque books issued, Non-
maintenance of minimum balance, Return of cheques etc.
For opening special types of current accounts like for Executors, Administrators,
Trustees, Liquidators etc., the Branch Manager may be contacted who will help in opening these
types of accounts.
As per RBI directive, the applicant (i.e. account opener) should declare in the
account opening form or separately that he is not enjoying any credit facility with any Bank and
if he does enjoy any facility / facilities, he should declare full particulars thereof indicating the
name of the bank and name of the branch wherefrom he has availed these facilities.
iii) SBT-Super Premium Savings Bank Account
The salient features of the new scheme are furnished below:
38
39.
All person(s) / associations who are eligible to open a Savings Bank Account can open
accounts under this scheme.
Monthly average minimum balance of Rs.1,00,000/- is to be maintained under the
scheme.
Sweep-in / sweep-out facility at all our e-banking branches.
B) Special products in SBT E-banking
i) Premium Savings Account
The Bank has introduced a Premium Savings Account at e-banking branches that
combines full safety, easy liquidity and highest possible interest. The salient features of the
scheme are as under
A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures
that while the customer's money earns solid interest as a fixed deposit, it turns liquid to meet his
urgent needs. That too at no extra cost.
Average monthly balance of Rs.10000/-to be maintained in the Premium Savings
Account.
Balance available in the account in excess of Rs.10000/-on any day gets
automatically swept out into a fixed deposit for 180 days in units of Rs.1000/-.
In the event of shortfall in SB for meeting your clearing cheques or for other
urgent needs, the fixed deposit is swept back into the Premium Savings Account in required
number of units of Rs. 1000/- free of cost.
No penalty is charged for breaking the fixed deposit prematurely. However, the
amount swept out earns interest for the period run at the applicable rate.
Even while breaking the fixed deposit, only the most recently converted fixed
deposit is first broken to minimise interest loss to the customer.
Only those amounts swept out of your Premium Savings Account are eligible for
sweep in and not other fixed deposits.
When fixed deposits mature at the end of 180 days, the Bank will renew the
principal every 180 days while crediting the interest to the savings account. Rs.100/-per month is
levied as service charges whenever the monthly average balance in the Premium Savings
Account goes below Rs.10000/39
40. ii) Special Premium Savings Account
The Bank has introduced a Special Premium Savings Account at e-banking
branches that combines full safety, easy liquidity and highest possible interest. The salient
features of the scheme are as under
A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures
that while the customer's money earns solid interest as a fixed deposit, it turns liquid to meet his
urgent needs. That too at no extra cost.
Average monthly balance of Rs.20000/-to be maintained in the Special Premium
Savings Account.
Balance available in the account in excess of Rs.20000/-on any day gets
automatically swept out into a fixed deposit for 1 year 1 day in units of Rs.1000/-.
In the event of shortfall in SB for meeting your clearing cheques or for other
urgent needs, the fixed deposit is swept back into the Special Premium Savings Account in
required number of units of Rs. 1000/- free of cost.
No penalty is charged for breaking the fixed deposit prematurely. However, the
amount swept out earns interest for the period run at the applicable rate.
Even while breaking the fixed deposit, only the most recently converted fixed
deposit is first broken to minimise interest loss to the customer.
Only those amounts swept out of your Special Premium Savings Account are
eligible for sweep in and not other fixed deposits.
When fixed deposits mature at the end of 1 year 1 day, the Bank will renew the
principal every 1 year 1 day while crediting the interest to the savings account. Rs.100/-per
month is levied as service charges whenever the monthly average balance in the Special
Premium Savings Account goes below Rs.20000/-
40
41. iii) Multi-City Current Account
2 variants of Multi-City Current Accounts are SBT Silver Current Account and SBT
Platinum Current Account .
iv) SBT Flexi Current Account
“SBT Flexi Current Account” combines the liquidity of Current Account with the
earning capacity of Term Deposits. The account is available at SBT Branches and provides for
Sweep-out Sweep-in Facility. Amounts in excess of the prescribed threshold amount of Rs. 1.00
lakh is automatically swept out to Term Deposit and funds from the Term Deposit is Swept in to
the Flexi Current Account as and when there is a shortfall in the balance in the account.
v) Multi-City SB Account
This facility is to be offered to high net-worth Savings Bank customers of the Bank.
The minimum average balance(MAB) to be maintained in the account is Rs.25,000/-.
All third party cheques shall be crossed ‘Account Payee’ and will be payable at par at all
our CBS branch centres.
No upper limit for transaction through A/C Payee cheques.
Self-cheques can be paid in cash upto an aggregate limit of Rs.50,000/- in a day at all the
SBT branches other than the home branch.
C) Term Deposit Products
i) Fixed Deposit
A regular interest earning scheme. A flexible and convenient deposit scheme
which ensures that your money never remains idle. Even very small amounts earn interest for
very short periods. Yes. You can deposit an amount of just Rs.1000/- for a period as short as 15
days and make it grow.
Salient features of the scheme are:
Minimum deposit Rs.1000/41
42.
Deposits accepted for periods ranging from 15 days to 120 months.
Option available for receiving monthly interest at discounted rates or quarterly
interest.
Premature withdrawal of deposit is permitted any time subject to payment of
prescribed penalty.
Loans available upto a maximum of 95% of the deposit amount depending on the
length of the unexpired period of the deposit.
Senior Citizens (above 60 years of age) are eligible for an additional interest of
Nomination facility available.
The rates of interest on deposits are as fixed by the Bank from time to time.
1%.
ii) Exchange Earner’s Foreign Currency Accounts – Term Deposit (EEFC A/cs)
o
EEFC a/c can also be opened as Term deposit
o
Exporters to earn interest on EEFC accounts to the extent of outstanding of USD
1 Mio per exporter.
o
Term Deposits are opened as per RBI guidelines from time to time. At present
the maturity period of Term Deposits are upto 31st October 2008 only.
Loans against this Term Deposits are not permitted
Designated currencies are US Dollars (USD), Great Britain Pounds (GBP)
and Euro.
Interest Rates on EEFC Term Deposits are notified 1st of every month
42
43. iii) SBT Tax Shield Deposit Scheme
The new product SBT Tax Shield is drawn on the lines of the Union Government
notification on Bank Term Deposit Scheme, 2006 for the purpose of Sec 80C(2)(xxi) of the
Income Tax Act. The Deposit under the Scheme has to be in the presribed form with the Fixed
Deposit Receipt bearing Permanent Account Number (PAN) and signature of the assesee along
with the name and address of the account holder and other details.
iv) Vikas Cash Certificate
A Money Multiplier scheme - Vikas Cash Certificate is a convenient and attractive
reinvestment plan where interest earns interest every quarter to provide a tidy sum on maturity.
An ideal and fast growing scheme for those with big future commitments in mind viz., children's
education, daughter's marriage, house purchase etc.
Salient features of the scheme are:
Minimum deposit Rs.1000/- and thereafter in multiples of Rs.100/-
Period of deposit ranges from 6 months to 10 years in completed quarters.
Interest compounded every quarter.
Senior Citizens (above 60 years of age) are eligible for an additional interest of
Premature withdrawal of the deposit is permitted any time on payment of the
1%.
prescribed penalty.
Loans upto a maximum of 95% of the balance available depending on the length
of the unexpired period of the deposit.
Nomination facility available.
The rates of interest are as fixed by the Bank from time to time.
v) SBT Suvidha Deposit
A Fixed Deposit with partial withdrawal facility - A flexible and convenient scheme
whereby a deposit is made for a fixed period from which amounts can be withdrawn as and when
needed. It is ideally designed for those who desire the high interest on their fixed deposit with the
operational convenience of withdrawals in times of need.
43
44. Salient features of the scheme are:
Deposit accepted for periods ranging from 15 days to 120 months.
Deposit accepted in multiples of Rs.1000/- with a minimum of Rs.1000/-
Interest is payable every quarter.
o
Option is available to withdraw a portion of the deposit in multiples of Rs.1000/whenever needed.
No penalty is payable on such partial withdrawals.
o
Senior Citizens (above 60 years of age) are eligible for an additional interest of
1%.
Nomination facility available.
The rates of interest are as fixed by the Bank from time to time.
vi) Social Security Deposit
An ideal monthly income plan - Nothing provides greater comfort and peace of
mind than a guaranteed, regular income. This is particularly true of the aged and the pensioners
who desire a monthly income through periodical investment of their accumulated savings. This
periodical income can be utilised in several ways like gifting a part to near and dear ones,
donating to noble causes etc.
Our Social Security Deposit is ideally designed to meet such needs. All you need to do is
to invest a lumpsum amount for a fixed period that provides regular monthly interest for meeting
various commitments during the period of the deposit.
Salient features of the scheme are:
Minimum amount of deposit is Rs.1000/-
Deposits accepted from 1 year to 10 years in completed quarters.
Option to earn interest either at discounted rates at the end of every calendar
month or on quarterly basis during the period of the deposit.
Loan available upto 95% of the deposit amount depending on the length of the
unexpired period of the deposit.
o
Senior Citizens (above 60 years of age) are eligible for an additional interest of
1%.
Nomination facility available.
44
45.
Rate of interest are as fixed by the Bank from time to time.
vii) Senior Citizens' Security Deposit
A highly beneficial value added scheme, specifically designed for the benefit of our
respected Senior Citizens ( above 60 years of age), this deposit scheme is truly special in
character, carrying an interest of 0.5% over and above the normal rate besides offering numerous
value additions.
Salient features of the scheme are:
Minimum amount of deposit is Rs.1000/-
Period of Deposits is 12 to 120 months.
Interest on the deposit is 1% above the normal rate.
Interest payable at monthly (discounted rates) or quarterly intervals.
o
Premature withdrawal of deposit is permitted any time without levy of penalty.
Accounts closed before completion of 12 months are not eligible for additional
interest of 1%.
o
Exemption from maintaining prescribed minimum balance in savings Bank
account.
Free Remittance Facility to any of our branches upto a specified limit.
Nomination facility available.
o
The rates of interest are subject to change and are as fixed by the Bank from time
to time
viii) Cumulative Deposit
An ideal scheme of monthly savings for salaried people,businessmen,professionals
etc.Small amounts saved every month for a long period come in handy to meet large financial
commitments in the future.
Salient features of the scheme are:
Minimum deposit is Rs.100/-per month.
Period of deposit ranges from 12 months to 10 years.
Delayed payment of instalments are accepted with nominal penalty.
Monthly minimum balance in the account earns compound interest every quarter.
45
46.
No tax is deducted from the interest on the deposit.
o
Loans up to maximum of 95% of the deposit amount available depending on the
length of the unexpired period of the deposit.
Nomination facility available.
The rates of interest are as fixed by the Bank from time to time.
ix) Pigmy Deposit
Little drops of water make a mighty ocean - This deposit scheme suits the needs
of everyone viz. businessmen, professionals, wage earners, teachers, salaried personnel, traders,
housewives etc. You can save money with the Bank regularly depending on your convenience.
And you need not visit the Bank for doing so. The Bank's authorised Agent collects your savings
at your doorsteps at regular intervals. And your money silently grows over 63 months into a
lumpsum for meeting your future commitments e.g. daughter's marriage, children's education,
family functions, house purchase etc.
Salient features of the scheme are:
Period of the scheme is 63 months.
Amount as low as Re.1/- per day can be saved daily / weekly / monthly.
No penalty even if depositor is unable to pay instalments regularly.
Deposit account can be closed prematurely subject to certain conditions.
Loans upto a maximum of 75% of the balance in the Pigmy account available.
Nomination facility available.
No tax will be deducted for the interest on the deposit.
The rates of interest are as fixed by the Bank from time to time
x) SBT Corporate Suvidha Deposit Scheme
Bank is launching of a new deposit scheme namely “SBT Corporate Suvidha
Deposit Scheme” .
The sailent features of the scheme are as follows :
46
47.
Amount of deposit : The minimum quantum of deposit under the scheme is fixed
at Rs.500 lacs and thereafter in multiples of Rs.100 lac.
Period of deposit : 7 days to 180 days.
Rate of interest : As applicable to other domestic term deposits. No special or
extra rate can be offered.
Payment of interest : Simple interest is payable at quarterly intervals at the
contracted rate.
Premature refunds : Premature withdrawal in multiple of Rs.100 lac permitted
subject to one day notice. However minimum balances of Rs.5 crores should be retained after
such partial withdrawal.
There is no restriction regarding frequency and number of withdrawals.
No penalty is to be charged on partial withdrawals . Interest payable on such
portion shall be the interest applicable at the time of accepting the deposit for the period the
amount remained with the Bank.
Loans on Deposit : LD can be arranged only on the balance amount held with the
Bank and under no circumstances withdrawals beyond the margin stipulated for the LD, shall be
permitted.
D) LOAN PRODUCTS
A) Personal Loan Products
The Bank is meeting varied personal credit requirements of different classes of
people through the following loan schemes under personal banking.
i) SBT Saral
Purpose : To meet urgent personal credit requirements
ii) SBT Senior - An exclusive personal loan scheme for pensioners
Purpose: Any bonafide personal / business credit requirement
47
48. iii)SBT Rent
Purpose : To meet urgent personal expenses/credit need
iv) SBT Car & Bike Loan
Purpose : To buy new / second hand 4-wheeler or new 2-wheeler
v) SBT Gold Loan - Loan against Gold Jewels
Purpose: Jewel loans/Overdraft for any genuine business/personal credit requirement
vi) SBT Pigmy
Purpose: To meet any contingent requirement of pigmy depositors .
vii) SBT Kisan
Purpose: To meet urgent personal needs / purchase consumer durables like TV, Fridge, Washing
Machine, Audio / Video Equipment etc
viii) SBT Housing Loan Scheme
Purpose :
For construction/acquisition of a house/flat or for acquiring a site and building a
house thereon.
For acquiring a new house or existing house not more than 25 years old.
For making extensions/additions to existing house. For NRIs, loan available for
acquisition of house for self-occupation on return to India.
For acquisition of furniture/fixtures including air conditioners, geysers, fridge, cots,
tables, sofas etc which form part of improvements to the home purchased or constructed out of
the Housing Loan.
ix) SBT Nivas Plus - A Pre approved personal loan for Housing Loan customers with good
payment record
48
49. Purpose : To meet any genuine personal or business credit requirement
x) SBT Vidya- A State Bank's Education Loan Scheme
Purpose : State Bank's involvement in education dates back to the decades prior to the
Nationalisation of Banks. The Bank was also the first to set up a string of Rural Training
Institutes aimed at empowering the young India in rural areas through entrepreneurial education
and training.
xi) SBT Vidyarthi- A Standby Overdraft facility for students of professional courses
Purpose : To meet the recurring expenses of contingent nature that may have to be
incurred by students pursuing professional courses .
B) Agricultural Loan Products
i) SBT Swarna- A facility of Term Loan or Overdraft against the security of gold ornaments.
ii) SBT KRISHI
Purpose : A HASSLE FREE MULTIPURPOSE, COMPOSITE, LONG TERM FARM CREDIT SCHEME FOR
AGRICU LTURISTS
iii) Jewel Loans for Agriculture (JL Agri)
Bank provides jewel loans to agriculturists for their agricultural credit needs on easy terms
and at low cost
iv)SBT Farm House Scheme
The scheme is meant for farmers to enable them to have a decent dwelling house which also
takes care of other requirements such as cattle shed, drying yard, farm implements shed
v) KRISHI VAHAN Schemes - For efficient and timely farming
Medium to long term loans are extended to farmers for
Purchase of Tractors.
Power Tillers and Small H.P. Tractors.
Combine Harvesters.
49
51. ANALYSIS AND INTERPRETATION
For evaluating the quality of customer service in SBT,a number of
critical variables are selected for conducting an indepth analysis.The results
of the analysis are presented in the following sections.
ACCOUNTS MAINTAINED
Table 5.1
Nature of
account
No. of
respondents
Percentage
Savings bank
26
26
Current
accounts
25
25
Recurring
deposit
8
8
Special term
deposit
8
8
Cash credit
12
12
Term loan
7
7
Housing loan
8
8
Car loan
6
6
Total
100
100
51
52. Savings bank
Current accounts
30
Recurring deposit
percentage
25
Special term deposit
20
Cash credit
Term loan
15
Housing loan
10
Car loan
5
0
Chart No 5.1
Inference
It can be seen from the above table that 26% of the respondents maintain saving
bank account in the bank. 24% of them maintain the current account and 8% maintains the
recurring deposit. Only 8% of the respondents keep special term deposit and 12% are the
holders of cash credit. While 7% of the respondents have a term loan, 8% have housing loan.
Remaining 6% are having car loan.
52
53. AWARENESS ABOUT THE SERVICES PROVIDED BY SBT LIKE ATM,
CREDIT, INTERNET BANKING ETC.
Table 5.2
Response
No. of
respondents
Percentage
Strongly agree
54
54
Some what agree
31
31
Disagree
8
8
Strongly disagree
7
7
Neutral
0
0
Total
100
100
Strongly agree
Some what agree
60
Disagree
50
Strongly disagree
Percentage
40
Neutral
30
20
10
0
Chart No 5.2
53
54. Inference
54% of the respondents strongly agree that they are aware about the services
provided by SBT like ATM, Credit cards, Internet Banking etc. 31% of the respondents some
what agree. While 8% of them disagree this and 7% of the respondents strongly disagree this.
Interpretation
Majority of respondents are aware about the various services that provided by
SBT.
SEXWISE CLASSIFICATION
Table 5.3
Gender
No. of
respondents
Percentage
Male
68
68
Female
32
32
Total
100
100
Percentage
Female
32%
Male
68%
54
55. Chart No 5.3
Inference
Out of the 100 respondents 68 are males and remaining 32 are females.
Interpretation
Data is mainly collect from walk-in customers , who were mostly male
OCCUPATION WISE CLASSIFICATION
Table 5. 4
Occupation
No. of
respondents
Percentage
Govt. Employee
27
27
Pvt. Employee
25
25
Business man
28
28
Agriculturist
20
20
Total
100
100
Percentage
Agriculturis
t
20%
Govt.
Employee
27%
Business
man
28%
Pvt.
Employee
25%
Chart No 5.4
55
56. Inference
Out of 100 respondents 27% are Govt. employees and 25% are Pvt. employees. While
28% of them are businessman and 20% are agric
INCOME WISE CLASSIFICATION
Table 5.5
Income
No. of
respondents
Percentage
Less than 1 lakh
8
8
1 – 2 lakh
38
38
2 – 4 lakh
42
42
Above 4 lakh
12
12
Total
100
100
Percentage
Above 4 Less than
1 lakh
lakh
8%
12%
2 – 4 lakh
42%
1 – 2 lakh
38%
Chart No 5.5
56
57. Inference
It can be seen from the above table that 8% of the respondents have income less
than Rs.1 lakh. 38% of them have income between 1 – 2 lakhs. While 42% of the respondents
have 2 – 4 lakhs, remaining 12% of them have an income above 4 lakhs.
Interpretation
From survey it is clear that majority of customers were having good annual
income , it actually ensures the security of Bank operations
EDUCATION WISE CLASSIFICATION
Table 5.6
Education
No. of
respondents
Percentage
S.S.L.C
36
36
Secondary
22
22
Graduate
14
14
Post graduate
8
8
Other
20
20
Total
100
100
S.S.L.C
Secondary
40
Graduate
30
Percentage
35
Post graduate
25
Other
20
15
10
5
0
57
58. Chart No 5.6
Inference
Having regard the qualification wise classification it can be seen from the
above table that 36% of the respondents are matriculate. 22% of them are a level of secondary.
While 14% are graduates, 8% are postgraduate and other 20% are of having other qualification
.
Interpretation
Majority of the SBT customers are underqualified so they are not aware about the
various schemes & products of SBT.
RESPONSE OF THE STAFF FOR LOANS
Table 5.7
Response
No. of
respondents
Percentage
Strongly agree
24
24
Some what
agree
38
38
Disagree
16
16
Strongly
disagree
10
10
Neutral
12
12
Total
100
100
58
59. Strongly agree
Some what agree
40
Disagree
35
Strongly disagree
Percentage
30
Neutral
25
20
15
10
5
0
Chart No 5.7
Inference
It can be seen that 24% of the respondents strongly agrees that whenever
they contacts staff of SBT for loans, the respond were positive. While 38% of them some what
agree, 16% of the respondents disagrees to it. 10% of the respondents strongly disagrees that the
response of the staff of SBT were not positive when ever they contacted for loans.
Interpretation
Most of the respondents are satisfied with loan procedure of SBT because Bank
provide them repayment facilities, quickprocessing of loans &minimum interest for loans.
59
60. PERFECTION OF THE TRANSACTIONS DONE BY USING ATM
Table 5.8
Response
No. of
respondents
Percentage
Strongly agree
25
25
Some what
agree
31
31
Disagree
20
20
Strongly
disagree
23
23
Neutral
1
1
Total
100
100
Strongly agree
Some what agree
Disagree
35
Strongly disagree
30
Neutral
Percentage
25
20
15
10
5
0
Chart No 5.8
60
61. Inference
Having regard the perfection, it can be seen from the above table that 25% of
the respondents strongly agrees that there exist perfection of the transactions done by using ATM
Banking. 31% of the respondents some what agree to this. While 20% of them disagree to this,
23% of the respondents strongly disagree this.
Interpretation
Majority of customers are satisfied with ATM usage but so much percentage is
dissatisfied this is due to in case of customer require higher amount withdrawal which may not
be possible in single day through ATM.
AWARENESS THROUGH FORMS & BROCHURES
Table 5.9
Response
No. of
respondents
Percentage
Strongly agree
16
16
Some what
agree
37
37
Disagree
29
29
Strongly
disagree
16
16
Neutral
2
2
Total
100
100
61
62. Strongly agree
Some what agree
40
Disagree
35
Strongly disagree
Percentage
30
Neutral
25
20
15
10
5
0
Chart No 5.9
Inference
From the above table it can be seen that 16% of the respondents strongly agrees
that the forms and brochers provided by SBT is made them aware about all the schemes and
services. While 37% of the respondents some what agree, 29% of them disagree this. 16% of
the respondents strongly disagree this. Remaining 2% neutral and according to them the forms
and brochers provided by SBT made did not create any awareness about all the schemes and
services.
Interpretation
Majority of customers are not satisfied by brochers &forms provided by SBT
because it does not mention the information regarding different schemes available to different
segments of customers.
62
63. TIME FOR OPEN AN ACCOUNT
Table 5.10
Response
No. of
respondents
Percentage
Strongly agree
38
38
Some what agree
27
27
Disagree
18
18
Strongly disagree
10
10
Neutral
7
7
Total
100
100
Strongly agree
Some what agree
40
Disagree
30
Percentage
35
Strongly disagree
25
Neutral
20
15
10
5
0
Chart No 5.10
63
64. Inference
The above table reveals that 38% of the respondents strongly agrees that the time
taken by SBT to open an account was satisfying. 27% of the respondents some what agree to
this. While 18% of the respondents disagrees to this, while 10% of them strongly disagrees.
Remaining 7% of them that they did not have such satisfaction.
Interpretation
Majority of respondents are satisfying by account opening time of SBT this will
show that Bank employees are so responsive towards customer to deliver a Quality service.
AWARENESS ABOUT THE USE OF MOBILE BANKING FACILITY
Table 5.11
Response
No. of
respondents
Percentage
Strongly
agree
27
27
Some what
agree
30
30
Disagree
23
23
Strongly
disagree
12
12
Neutral
8
8
Total
100
100
64
65. Strongly agree
Some what agree
30
Disagree
25
Strongly disagree
Percentage
20
Neutral
15
10
5
0
Chart No 5.11
Inference
From the above table it can be seen that 27% of the respondents strongly agrees
that they are aware of using mobile banking facility. 30% of them some what agree. While 23%
of the respondents disagree this 12% of the respondents strongly disagrees, remaining 8% neutral
this that they do not have such awareness
Interpretation
Bank should promote Mobile Banking Facility to its customers by
conducting various promotional programmes inside the banks
65
66. KNOWLEDGE OF SBT STAFF ABOUT THEIR PRODUCTS
Table 5.12
Response
No. of
respondents
Percentage
Strongly agree
28
28
Some what
agree
38
38
Disagree
16
16
Strongly
disagree
12
12
Neutral
6
6
Total
100
100
Strongly agree
40
Some what agree
35
Disagree
Percentage
30
Strongly disagree
25
Neutral
20
15
10
5
0
Chart No 5.12
66
67. Inference
As from the above table it can be seen that 28% of the respondents have
strong agreement that the SBT staff has sufficient knowledge about their products. 38% of them
some what agree to this. 16% of the respondents disagrees to this and 12% of the strongly
disagrees this. Remaining 6% of the respondents neutral to this.
Interpretation
Most of customers lacks clarity when they deal with SBT employees with
queries on various accounts, products & schemes this may be due to gap between customer
expectations & employee perceptions.
SATISFACTION TOWARDS BANKING TIME
Table 5.13
Response
No. of
respondents
Percentage
Strongly agree
8
8
Some what agree
37
37
Disagree
25
25
Strongly disagree
30
30
Neutral
0
0
Total
100
100
67
68. Strongly agree
Some what agree
40
Disagree
35
Strongly disagree
Percentage
30
Neutral
25
20
15
10
5
0
Chart No 5.13
Inference
From the above table it can be seen that 8% of the respondents strongly agrees
that they are satisfied with the banking time of SBT. 37% of them are some what agrees. While
25% of the respondents disagrees this, 30% of them strongly disagree this.
Interpretation
Majority of respondents are not satisfying with current banking time of SBT,
so bank should open its branches from 9 am to 7 pm and also open more counters during rush
hours.
68
69. GENERAL BEHAVIOR OF FRONT LINE STAFF
Table 5.14
Response
No. of
respondents
Percentage
Strongly agree
42
42
Some what agree
12
12
Disagree
32
32
Strongly disagree
5
5
Neutral
0
9
Total
100
100
Strongly agree
45
Some what agree
40
Disagree
35
Strongly disagree
Percentage
30
25
Neutral
20
15
10
5
0
Chart No 5.14
Inference
It can be seen from the above table that strongly agrees that the general behaviour of
front line staff in SBT was good. 21% of the respondents some what agrees that it was good.
While 32% of them disagrees and according to them it was not good, only 5% of the respondents
strongly disagrees this.
69
70. Interpretation
Only 42% of customers are satisfied with General Behavior of Front Line Staff of
SBT , majority of customers are not satisfied because Front Line Staff has managed many
customers at a time, Since it is main branch lot of walk-in occur during peak hours.
ACCOUNT WITH OTHER BANK
Table 5.15
Response
No. of
respondents
Percentage
Yes
36
36
No
64
64
Total
100
100
Percentage
Yes
36%
No
64%
Chart No 5.15
Interpretation
From the above table it can be seen that 36% of the respondents have account with other
bank, 64% of them do not have any account.
70
71. Table No 5.15.1
Reason
No. of respondents
Percentage
Better service
28
28
Modern technology
12
12
Near to home
48
48
Others
12
12
Total
100
100
Percentage
Others
12%
Better
service
28%
Near to
home
48%
Modern
technolog
y
12%
Chart No 5.15.1
Inference
It is clear from the above table that 28% of the respondents have account with any
other bank due to better service. Because of modern technology 12% have account with other
bank. While 48% of the respondents choose the same due to the reason that it is near to home.
12% of them select the same due to other reasons.
71
72. Interpretation
Majority of customers have SBT account only, this shows that loyality of
customers enjoyed by bank. This strong customer loyality is laying an effective foundation for
bank.
RESPONSE OF STAFF TOWARDS CUSTOMER’S ENQUIRY
Table 5.16
Response
No. of respondents
Percentage
Strongly agree
14
14
Some what agree
38
38
Disagree
20
20
Strongly disagree
28
28
Neutral
0
0
Total
100
100
72
73. Strongly agree
Some what agree
40
Disagree
35
Strongly disagree
Percentage
30
Neutral
25
20
15
10
5
0
Chart No 5.16
Inference
It can be seen from the above table that 14% of the respondents strongly agrees
that whenever they approached the staff with a question they respond properly. 38% of the
respondents some what agree this, while 20% of the respondents disagree this, remaining 28% of
them strongly disagree this.
Interpretation
Most of customers are not satisfied with bank’s customers enquairy, so SBT
should give proper knowledge & awareness to their staff regarding their products & services so
they can give sufficient clarification for all quaries that arise from customers.
73
74. SUGGESTIONS FOR IMPROVING QUALITY OF SERVICES
Table 5.17
Suggestion
No. of respondents
Percentage
Minimization of
service time
0
0
Better customer care
69
69
Better communication
of product detail
21
21
Modern technology
10
10
Total
100
100
Minimization of service time
Better customer care
70
Better communication of
product detail
60
Percentage
50
Modern technology
40
30
20
10
0
Chart No 5.17
74
75. Inference
It can be seen from the above table that according to 69% of the respondents better
customer care is the suggestion for improving quality of services. According to 21% of the
respondents better communication of product detail is the suggestion. According to 10% of them
modern technology is the suggestion. None of the respondents put forward the suggestion of
minimization of service time.
Interpretation
Most of respondents are demanded that SBT Should better its customer care in
order to attain the customer with more pleasing nature, willing to help them etc.
DEPOSITS AND ADVANCES SCHEMES OF SBT
Table 5.18
Response
No. of
respondents
Percentage
Strongly agree
37
37
Some what agree
25
25
Disagree
16
16
Strongly disagree
11
11
Neutral
3
11
Total
100
100
75
76. Strongly agree
Some what agree
40
Disagree
35
Strongly disagree
Percentage
30
Neutral
25
20
15
10
5
0
Chart No 5.18
Inference
The above table shows that 37% of the respondents strongly agrees that the
deposits and advance schemes provided by SBT is satisfying. 25% of the respondents some
what agrees to this. While 16% disagree this, 11% strongly disagree and remaining 3% neutral
this.
Interpretation
Majority of customers are satisfied with Deposit & Advance schemes of
bank. It will help the bank to establish new leads & to have new customers with reference to
their existing customers.
76
77. MISTAKES MADE BY STAFF OF SBT
Table 5. 19
Response
No. of respondents
Percentage
Strongly agree
15
15
Some what agree
22
22
Disagree
46
46
Strongly disagree
17
17
Neutral
0
0
Total
100
100
Strongly agree
Some what agree
50
45
Disagree
40
Strongly disagree
Percentage
35
30
Neutral
25
20
15
10
5
0
Chart No 5.19
77
78. Inference
As from the above table it can be seen that 15% of the respondents strongly
agrees that the staff of SBT has made mistakes in their work. 22% of the respondents some what
agree to this. While 46% of them disagree this. 17% of the respondents strongly disagree that
the staff of SBT did not makes any mistakes in their work.
Interpretation
63% of customers are disagree the fact that SBT staff has done any mistakes
while in transaction, it show the bank providing excellent service to their customers in a
customized manner to keep its customer & to survive in competitive banking environment.
OPINION ABOUT WEBSITE
Table 5.20
Reason
No. of
respondents
Percentage
Excellent
29
29
Good
24
24
Satisfactory
25
25
Needs
improvement
22
22
Total
100
100
78
79. Percentage
Needs
improve
ment
22%
Excellent
29%
Satisfact
ory
25%
Good
24%
Chart No 5.20
Inference
From the above table it can be seen that 29% of the respondent are of the
opinion that the website of SBT is excellent. 24% of the respondents expressed that it is good.
According to 25% of the respondents it is only satisfactory. Remaining 22% of them expressed
their opinion that it needs improvement.
Interpretation
As study shows that Bank’s website providing relevant information
regarding the Bank’s operations & about its products, websites of SBT can be improved again by
including detailed information
of various schemes , offers & promotions related to their
services.
79
81. TESTING OF HYPOTHESIS
The statistical test, in which the test statistics follow a chi-square distribution, is
called the chi-square test.
Therefore chi-square test is a statistical test, which tests the
significance of difference between observed frequencies and the corresponding theoretical
frequencies of a distribution, without any assumption about the distribution of the population.
Chi-square test is one of the simplest and most widely used non-parametric test in statistical
work. This test was developed by Prof. Karl Pearson in 1900.
H0 :
H1 :
There is no significance difference between customers opinion about ATM facility of
SBT.
There is significance difference between customers opinion about ATM facility of SBT.
O
E
(O – E) 2
(O – E ) 2
E
Strongly agree
25
20
25
1.25
Some what agree
30
20
100
5.00
Disagree
20
20
0
0
Strongly disagree
24
20
16
0.8
Neutral
1
20
361
18.05
100
100
X2 = (O – E)2
E
25.1
= 25.1
Degree of freedom, n-1 = 5 – 1 = 4
Significance level = 0.05
Table value = 9.488
81
82. Interpretation
Table value is greater than calculated value so we accept null hypothesis.
There is no significance difference between customers’ opinion about ATM
facility of Bank.
There is no significance difference between customers’ opinion about mobile
H0 :
banking facility.
H1 :
There is significance difference between customers’ opinion about mobile banking
facility.
O
E
(O – E) 2
(O – E ) 2
E
Strongly agree
27
20
49
2.45
Some what agree
30
20
100
5
Disagree
23
20
9
0.45
Strongly disagree
12
20
64
3.2
Neutral
8
20
144
7.2
100
100
X2 = (O – E)2
E
18.3
= 18.3
Degree of freedom, n-1 = 5 – 1 = 4
Significance level = 0.05
Table value = 9.488
Interpretation
Table value is greater than calculated value so we accept null hypothesis.
There is no significance difference between customers’ opinion about mobile banking facility.
82
83. CORRELATION CO-EFFICIENT
Co-efficient of Correlation is an algebraic methods of measuring correlation.
Correlation co-efficient is a numerical value. It shows the degree or the extent of correlation
between two variables. Co-efficient of correlation is purel number lying between –1 and +1.
When the correlation is negative, it lies between –1 and 0. When the correlation is positive, it
lies between 0 and 1. When the co-efficient correlation is zero. It indicates that there is no
correlation between the variables.
CORRELATION BETWEEN SERVICE QUALITY AND CUSTOMERS SATISFACTION
Service
quality (x)
Satisfaction
level (y)
xy
x2
y2
Strongly
agree
27.4
26
702
750.76
676
Some
what agree
26
32.6
847.6
676
1062.76
Disagree
27.8
23.2
644.96
772.84
538.24
Strongly
disagree
16.2
14.2
230.04
262.44
201.64
Neutral
2.6
4
10.4
108.16
16
100
100
2435
2570.2
2494.64
83
84. nxy - x y
n x2 - (x) 2 n y2 - (y) 2
5 2435-100 100
r=
=
5 2570.2 – (100)2
5 2494.64 – (100)2
12175 – 10000
=
12851 – 10,000
=
12473.2 – 10,000
2175
53.39 49.73
=
2175
2655.08
=
0.82
Interpretation
Correlation between service quality and customer satisfaction are positively
correlated. It means that service quality and customer satisfaction are move same direction.
84
86. 6.1 FINDINGS
1.
Majority of the respondents strongly agrees that they are aware about the services
provided by SBT.
2.
Majority of SBT Customers are with an education qualification of SSLC Level
since they are underqualified so they did not aware about various schemes & products.
3.
Most of the SBT customer having good annual income.
4.
There is a pool of customers who are not satisfied with ATM facility of the
bank.There will be lot of walk in at ATMs of the bank due to which needy customers will have
to wait for long time to withdraw their cash.
5.
Most of the customers are satisfied with the various loan facilities provided by
the bank.Loan facilities include educational loans,housing loans,gold loans,personal loans and
automobile loans
6.
Majority of respondents agree with a fact that Forms & Brochers provided by
SBT do not create any awareness about all schemes offers and services.
7.
Many of customers are satisfied with account opening procedure in SBT
branches ,but so much percentage is dissatisfied due to huge rush during peak hours.
8.
Only few customers are known about mobile banking facilities..
9.
Many of the respondents feel problem when they deal with SBT employees
regarding with there queries..
10.
Majority of respondents are not satisfied with banking time of SBT.
86