a research study on consumer satisfaction of private banking sector

Semester-VI

Under the Guidance of: Prof. Hetal Patel &

Prof. Kinjal Patel

Submitted To:

Rudra College of Business AdministrationVahelal

2014-2015

A Research Study on Consumer Satisfaction of Private Banking Sector

1. Gosai Minaxi D.2. Chauhan Chetan N.3. Patel Harshit S.4. Patel Vidhi D.5. Patel Purvi J.6. Rupala Anjali K.7. Patel Vedika N.8. Parmar Chandni N.9. Chauhan Twinkal P.10.Varma Poonam S.11.Malek Afsana A.12.Gajjar Parth V.

Group : B

Chapter: 1Introduction

Macro Analysis

Reserve Bank of India

The Reserve Bank of India was founded on 1st April 1935 after the First World War RBI was

conceptualized as per the guidelines, working style and outlook presented by Dr B. R. Ambedkar

as written in his book “The Problem of the Rupee – Its origin and its solution.” in front of the

Hilton Young Commission.

Dr. C.R. Rangarajan has received “THE BEST GOVERNER AWARD” on 15 th October 2014 by

British magazine central banking and also last year received award by yurom’s magazine as a

“BEST GOVERNER OF CENTRAL BANK ”

The Governor of RBI is Raghuram Rajan. There are 4 Deputy Governors in that

1. H R Khan,

2. Dr Urjit Patel,

3. R. Gandhi and

4. S. Mundra

History

5 Force High/low/medium Remark

1. Threat of new entrants Low Licensing requirement is very tough.

Product differentiation very difficulty

2. Threat of substitute products Medium NBFc, mutual fund, government

securities and t-bills increasing rapidly

3. Rivalry among competitors High Large number of banks

Low switching cost

High fixed cost

4. Bargaining power of

supplier

High Banks have to meet many regulatory

criteria, made by the RBI

5. Bargaining power of

customer

High Provides homogenous kinds of service

so there is high change that consumers

switch their bank

5 Force Model of Indian Banking Industry

Micro Analysis

The bank known as the Industrial Credit and Investment Corporation of India

before it changed its name to the Abbreviated ICICI Bank. India.

ICICI bank established in 1994.

Ms. Chanda Kochhar Managing Director and Chief Executive Officer of ICICI Bank

Limited

ICICI Bank is the 2nd largest private bank in India in terms of Assets and Market

capitalization.

The Bank has a network of 3,845 branches and 12,012ATMs in India, and also in 19

countries.

ICICI Bank launched internet banking operations in 1998.

The mission statement of ICICI Bank is “consists of several points, but the first is to become the first choice among customers by providing world-class services.”

Mission

Vision

The official vision statement of ICICI Bank is: "To be the leading provider of financial services in India and a major global bank."

SWOT AnalysisOf ICICI

AXIS BANK

Axis Bank starts its operations in 1994.

Shikha Sharma Managing Director and CEO of AXIS Bank.Axis Bank Limited is the 3rd largest private bank in India.

It was known as UTI earlier "Unit trust of India Ltd"

The Bank was promoted in 1993 jointly by the Administrator of the UTI,LIC, National

Insurance Company Ltd.

31st March-2014 the Bank had a network of 2,402 branches and 12,922 ATMs.

Mission

“We enhance the wealth management and financial planning capability of

individuals and organizational clients in world-class service rendering environment,

delivering superior and sustainable stakeholder value.”

Vision

“We aim to become one of the most trusted financial services providers with end-to-end financial consulting and advisory support and exceed the expectations of customers.”

Weakness1.Lesser no. of branches compared to its competitors

2.  Image of the bank still under the shadow of the UTI debacle

SWOT AnalysisOf AXIS

Kotak Mahindra bank

Kotak Mahindra group, established in 1985 by Uday Kotak.

Kotak Mahindra Bank established in 2003.

Kotak Mahindra Bank is the 4th largest private bank in India.As on 30th September 2014, Kotak Mahindra Bank has over 641 branches ,1,159 ATMs spread

across 363 locations in the country.

Recently Kotak Mahindra Bank has acquisition ING vysya bank.Vision

“To be the most trusted Global Indian Financial Services brand and the most

preferred financial services employer with focus on creating value.”

Weakness

1. Lesser penetration as being late entrants2. Low publicity and marketing in the urban areas

SWOT AnalysisOf KOTAK

HDFC BANK

HDFC is stands for Housing Development Finance Corporation Limited. Chairman Mr. C.M. Vasudev Managing Director Mr. Aditya PuriIt is the fifth largest bank in India by assets, incorporated in 1994.

According to the Brand Trust Report 2014 HDFC was ranked 32nd India's most trusted brands.

As of 31st March 2013, the company has 69,065 employees, out of which 12,295 are women.

As of 30th September 2013, HDFC Bank has 3,251 branches and 11,177 ATMs, in 2,022 cities

in India.

“To provide a package of attractive financial services for housing purposes through

a competent and motivated team of employees using the state of the art technology

to maintain financial stability and growth of the organization whilst contributing to

the national goal of providing decent housing to all.”

“To be customer driven best managed enterprise that enjoys market leadership in

providing housing related finance.”

Mission

Vision

Weakness

1.Rural penetration is low

2.Lesser no. of branches when compared with its competitors

SWOT AnalysisOf HDFC

 Chapter: 2Research Methodology

“A Research Study on consumer satisfaction of private banking sector”

Problem Statement

Needs and Importance of Research

1. On the completion of research one may have the satisfaction of acquiring new ideas which ultimately improve the overall structure.

2. With the help of research methodology we know the customer satisfaction in a particular bank, industry and organisation.

Objective of study

1.Primary objective: “A Research Study on consumer satisfaction of private banking sector”

2.Secondary objective: Secondary objective for the purpose of data collection we use the Questionnaires.

•To find out how many people have bank account.•To analyze in which bank people have bank account•To know which service people get from bank.•To know how many people use online banking.

1. Research method - Survey Method2. Types of Questionnaires – Structured Questionnaires

Research Design

Sample Design

1. Sample Units - Banking Sector2. Sample Size - 100 Questionnaires 3. Sample Plan - Survey and Questionnaires4. Sample Extent - Ahmedabad only5. Sample Method - Convenience Method

Method of data collectionSurvey Method

1. Primary sources:

Research methodology

2. Secondary sources:

Secondary data analysis can be literally defined as “second-hand” analysis.

In that Newspapers, Books, magazines, and other sources of secondary data.

Sources of Data

Someone else has already collected the data, so the researcher saves money, time,

energy, and other resources to this research.

Limitation of study

1. It takes longer for the respondent to complete questions.

2. This is a problem as a smaller sample size may be obtained.

3. Answerer may not feel encouraged to provide accurate or honest answers.

4. There was language barrier.

 Chapter: 3

Data Analysis and Interpretation

•General Information:

1.Age

<20 21-30 31-40 40>0%

5%

10%

15%

20%

25%

30%

35%

40%

30%37%

14%19%

AGE

AGE

2. Gender

Male Female0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

78%

22%

Gender

Gender

3. Occupation

Student

Job

Business

man

Housewife

0%5%

10%15%20%25%30%35%40%

35%28% 32%

5%

Occupation

occupation

4. Income

Below 1,00,000

1,00,000-2,00,000

2,00,000-5,00,000

Above 5,00,000

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

31.25%31.25%

21.87%15.63%

Income

Income

YES NO0%

20%

40%

60%

80%

100%

120%

97%

3%

Bank Account

Bank account

 1.Do you have Bank account ? 2.If yes, then in which bank you

have account ?

Private public both0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

68.04%

14.43% 17.53%

Bank

BANK

AXIS HDFC KOTAK ICICI OTHERS0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

24.42%

18.60% 17.44%19.77% 19.77%

Private Banks

Private Banks

3. If private , then in which bank do you have account ?

4. Which type of account do you have in this particular bank ?

Saving Account

Loan Account

Fixed Account

Current Account

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

53.95%

8.85% 13.27%

23.93%

Bank Account

Bank Account

online b

anking

Mobile ban

king

credit c

ardATM

Telephone b

an...

others0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

24.27%16.91% 15.44%

38.23%

0.74% 4.41%

Services

Services

 5. If, yes than which service you get from bank ?

YES NO0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

95.18%

4.82%

Satisfied With Services

Satisfied with Services

6. Are you satisfied with the services provided by the private banks ?

7. Are you using online banking?

YES NO0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

59.04%

40.96%

Online Banking

Online Banking

YES NO0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

59.04%

40.96%

Benefit From Online Banking

Benefit from online banking

 8..If yes, then you are getting benefit from the online banking?

Possitive Negative Can't say0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

80.72%

3.62%15.66%

Reaction of customer after the Bank computerization

9. In your opinion what was the reaction of customers regarding service efficiency after the bank computerization.

25.93%

7.40%37.04%

4.94%

18.52%

6.17%

Rank 1Personalized Service

Wide Branch Networking

Customer Services

Core Banking

Computerised Banking

Problem Solving

10. Give the rank of the services which provided by your bank. 

19.32%

12.50%

19.32%

7.95%

28.41%

12.50%

Rank 2Personalized ServiceWide Branch NetworkingCustomer ServicesCore BankingComputerised BankingProblem Solv-ing

15.00%

16.25%

22.50%

7.50%

23.75%

15.00%

Rank 3

Personalized ServiceWide Branch NetworkingCustomer ServicesCore BankingComputerised BankingProblem Solving

14.46%

19.28%

13.25%

30.12%

10.84%

12.05%

Rank 4

Personalized ServiceWide Branch NetworkingCustomer ServicesCore BankingComputerised BankingProblem Solving

14.29%

14.29%

4.76%33.33%

10.71%

22.62%

Rank 5Personalized Service

Wide Branch Networking

Customer Services

Core Banking

Computerised Banking

Problem Solving

12.19%

25.61%

3.66%20.73%7.32%

30.49%

Rank 6

Personalized ServiceWide Branch NetworkingCustomer ServicesCore BankingComputerised BankingProblem Solving

YES NO0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

75.90%

24.10%

Transaction Tracking sys-tem

Transaction Tracking system

11. Is your banks have a transactions Tracking system ? 12.If yes, than is it helpful for you?

YES NO0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

75.90%

24.10%

Transaction Tracking system Helpful or not

Transaction Tracking system Helpful or not

Excellent Very Good Good Bad0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

22.89%

46.99%

26.51%

3.61%

Service Quality

Service Quality

13. What do you feel about the overall service quality of bank?

Fixed Deposit

Insurance Mutual Fund

Shares Others0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

45.46%

23.23%

9.09% 10.10% 12.12%

Investment

Investment

14.What you prefer for investment ?

Yes No0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

86.75%

13.25%

Competitive Intrest Rate

Competitive Intrest Rate

15.Do you think your bank offers competitive intrest rate in your investment?

Less than 6 months

6 months to 1 years

1 years to 3 years

3 years to 5 years

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

12.50%

34.72%30.55%

22.23%

Time Period to Investment

Time Period to Investment

 16.If, yes then for what time of period do you like to invest ?

Yes No0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

98.80%

1.20%

Trust on Your Bank

Trust on Your Bank

17.Do you trust on your bank? 18.Would you recommend this bank to your friends,relatives,associates?

Yes No0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

98.80%

1.20%

Recommed This Bank to Your Friends and Relatives

Chapter: 4 Findings

We find out 97% consumers have bank account.

To analyse 68.04% have a private bank account 14.43% have a public account and 17.53% have both account.

To know 95.18% consumers are satisfied with the services provided by private bank and 4.82 % are not satisfied.

To know 59.04% consumers are using online banking and 40.96% are not using online banking.

Recently ICICI bank has launched new service for the consumers are contactless credit card & debit card and with the help of twitter transfer the fund.

HDFC bank has started new service “BANK APAKI MUTTHI MEIN” for the consumers.

Chapter: 5Conclusion

Consumer are satisfied with the ATM for withdraw cash eassily without go to bank and also

using the online banking for any time.

Now a days mostly consumers are use private banks for get extra benefits.

Mostly consumer are give positive reaction regarding bank computerization.

We find out that consumer are not satisfied with the problem solving services of their banks.