Académique Documents
Professionnel Documents
Culture Documents
Comparison of ING Vysya Bank with HDFC and ICICI on customer satisfaction
Undertaken at
ING Vysya Bank
Submitted in partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
to
Guru Gobind Singh Indraprastha University, Delhi
Submitted by
Sakshi behl
MBA-III Semester
Enrolment No.:
Session 2013 14
PERIYAR MANAGEMENT AND COMPUTER COLLEGE
Periyar Centre, FC33, Plot No. 1&2, Institutional Area, Jasola, New Delhi 110025
Page | PAGE \* MERGEFORMAT 48
CONTENTS
Chapter Particular(s)
Page No.
Certificate-1
Certificate-2 company
Summer Training Appraisal Form
Acknowledgements
Executive Summary
Introduction
Literature Review
Research Methodology
Data Interpretation
Acknowledgement
Page | PAGE \* MERGEFORMAT 48
If words are considered to be signs of gratitude then let these words Convey the very same. My
sincere gratitude to Mr. Abhishek Gupta junior manager, ING VYSYA BANK and giving
necessary directions on doing this project to the best of my abilities.
I am highly indebted to Mr. Ajay Yadav, Branch Manager, who provided me with the
necessary information and also for the support extended out to me in the completion of this
report and his valuable suggestion and comments on bringing out this report in the best way
possible.
I would like to confer the flower of acknowledgement to the Director of PMCC Dr. S.
Aramvalarthan and project guide Mrs. Yamini Saraswat and other faculty members who
taught me that how to do project through appropriate tools and techniques.
I am also thankful to those customers of the bank who have helped me through their valuable
feedbacks and without whom the research report was not possible. The clients were the
respondents in this project and they have answered the questions very well which have helped
me in finding suitable outcome.
Executive Summary
This project is based on the customer satisfaction level of the services provided by the three
banks ING Vysya bank, HDFC Bank and ICICI Bank.
It was a challenge to know about the customers satisfaction for a service but through this
project, bank has tried to know the point of view of customers. ING Vysya believes that every
service they provide to their customers are satisfactory and the customers are happy with the
quality as well as after work service of the company. Still the bank wants to know the level of
satisfaction in customers, so this research through questionnaire and telephonic interviews has
been done
The project is based on the thorough study of the products and services of ING Vysya Bank and
they are compared with the banking products and services provided by the HDFC and ICICI
bank. The marketing strategies adopted by the ING Vysya bank to maintain & increase its market
share & to retain its customers. The project undertake the study of the expectations, behavior,
responses and preferences of the customers towards savings account.
The project has some limitations too, ING Vysya bank has a very few branches, customers have
limited information about the bank and they have fewer banking products as compared to the
other private banks. ING Vysya bank doesnt provide ATM services to its customers and the
customers are biased about their current banks also. The research is done in the area of Delhi
only and the time of the study is six weeks.
CHAPTER -1
INTRODUCTION
1.1 INTRODUCTION
Banking system of a nation is the shadow of nations economy. A healthy and profitable banking
system is just like the backbone of nations economy. It is necessary for a nation to achieve
growth and remain stable in this global world and global economy. The Indian banking system,
with one of the largest banking networks in the world, has witnessed a series of reforms over the
past few years like the deregulation of interest rates, dilution of the government stake in public
sector banks (PSBs) and the increased participation of private sector banks.
Banking institutions across the globe have recognized the importance of customer satisfaction
and of developing and maintaining enduring relationship with their customers as two crucial
parameters leading to increased business profits. At the same time, several banking institutions
are experiencing increasing level of retail customer dissatisfaction. Research suggests that
customer dissatisfaction is still the major reason of bank customers switch to other banks
(Manrai and Manrai, 2007). This dissatisfaction could be because of a variety of reasons.
Excellent service quality is not an optional competitive strategy which may, or may not, be
adopted to differentiate one bank from another: today it is essential to corporate profitability and
survival.
Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation. It is seen as a key performance indicator within
business. Organization need to retain existing customers while targeting non- customer;
measuring customer satisfaction will provide an indication of how successful organization is at
providing products and/ or services to the marketplace.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state of
satisfaction depends on a number of both psychological and physical variables which correlate
with satisfaction behavior such as return and recommend rate.
Satisfaction with banking services is an area of growing interest to researchers and managers.
The commercial banking industry like many other financial service industries is facing rapidly
changing market. New technologies, economic uncertainties, fierce competition and more
demanding customers and the changing climate have presented an unprecedented set of
challenges. Intangible assets, particularly brands and customers, are critical to any organization
and in todays competitive environment relationship marketing is critical to banking corporate
success.
The purpose of this study is to investigate relationship dimensions and studies the differences
and perception of customers with respect to services provided by three private sector Indian
banks. The relationship dimensions which lead to customer satisfaction have been identified.
This study reports on the different satisfaction levels of customers of private sector banks with
respect to the services provided by their banks.
Importance of customer satisfaction:
0
PRIMARY OBJECTIVE:
0
1
To compare the banking products and services offered by ING Vysya Bank and other
private banks (ICICI & HDFC)
2
To study the customers expectations, behavior, responses & preferences for various
saving accounts of ING Vysya Bank.
3
To study the marketing strategies adopted by ING Vysya Bank to maintain & increase its
market share & to retain its customers.
SECONDARY OBJECTIVE:
0
1
The scope of any study can be defined in terms of the area and the sample size which will be
reviewed for satisfying the objective of the subject matter. The first part of the report can be
made on the basis of the secondary data collected about the different saving bank accounts of
private sector banks present in Delhi via internet, magazines and journals.
The scope of the study is in Delhi, and around 100 people are targeted for the survey which is
done through questionnaire.
The Vysya bank was set up in Bangalore in 1930 and is one of the largest private sector bank.The
bank was formed from the 2002 acquisition of an equity stake in Indian Vysya Bank by the
Dutch ING Group. This merger marked the first between an Indian bank and a foreign bank.
Prior to this transaction, Vysya Bank had a seven-year old strategic alliance with erstwhile
Belgian bank Banque Bruxelles Lambert, which was also acquired by ING Group in 1998.
Names
Designation
Shailendra Bhandari,Chairman
Jayant Mehrotra
J M Prasad
Chief-Human Resources
Brett Morgan
Mahesh Dayani
Susan Poot
B.Ashok Rao
Chief Auditor
Meenakshi A
Head-Operations
Aniruddha Paul
loans and cash management services. The wholesale banking business comprises four
business sub-segments and multiple product offerings. The business segments Corporate and
Investment Banking, Emerging Corporate, Banking and Financial Institutions and financial
markets.
Agriculture and rural banking :
Agriculture and Rural Banking deals with all business related to agriculture and allied
activities, Gold Loans, loans to SHGs and lending to government sponsored schemes.
Working Capital and Agriculture Term Loans for Poultry, Dairy, Cold storage units etc. are
also being offered to cater diverse needs of the farming community. The Bank has
accelerated retail agricultural lending at a few places in North India and Central India
especially in Rajasthan, Uttarakhand, Maharashtra, Gujarat and Madhya Pradesh.
ING Vysya Mobile App
ING Vysya bank's mobile app helps customers to check the balance and much more than a
conventional mobile app by simply downloading this app in their cell phones. With the help of
this app customers need not to go to the bank all the time for checking their balance in their
account.
ING Vysya Banks Financial Inclusion Initiatives:
Rural India accounts for roughly 70% of the population located in 6, 37,000 villages across the
country. Out of the 89.30 million farmer households 45.9 million do not have access to credit
either from the institutional or non institutional sources (NSSO 2008). Though the banking
industry has shown tremendous growth during the last few decades in all areas relating to
financial viability, profitability and competiveness, there are concerns that banks have not been
able to include certain segments of the population, especially the under-privileged sections of
society, into the fold of basic banking services. The financially excluded sections of society also
include the urban slum dwellers and migrant workers in urban areas. This has been an area of
concern and focus of the Government and Reserve Bank of India (RBI).
Several initiatives have been underway to empower the marginalized sections through awareness
and education and access to basic banking services such as savings, credit and insurance.
However data collated through various surveys indicate that for every 100 adult persons there are
only 17 credit accounts and 54 savings accounts with all the financial institutions put together
(June 2007), thereby highlighting the need for more concerted efforts from the Government,
Regulators and the Banks towards ensuring financial inclusion.
The term 'Financial inclusion' (FI) is defined as including the excluded sections of disadvantaged
and low income groups into the formal financial sectors by delivery of banking services at an
affordable cost. The services offered under FI constitute 'no frills' accounts, access to savings
products, providing easy and right quantum of credit at affordable interest rates, insurance etc.
ING VYSYA bank has drawn a three year plan to achieve Financial Inclusion objectives and has
taken up several steps in this regard. The highlights of these are:
0
1
They are providing Banking Services in 295 villages across the country.
As on September 2010, the Bank has opened 84000 No Frill accounts which has Covered
employment venture by providing all the needed assistance. Since inception 13000 candidates
have been trained, out of which 8000 were women and 10,000 candidates were settled / linked
with finance by various banks in the district.
Bank has also devised various products for financial inclusion, namely
0
1
2
3
4
5
Bank has adopted the Business Correspondent Model for extending the services in rural areas
and deepening financial inclusion in the unbanked areas in AP and Karnataka State. Presently
bank has two BCs for disbursing amounts to NREGP & SSP beneficiaries. The achievements so
far in this regard are :
0
1
2
3
OTHER INITIATIVES:
The Bank has its Competence Development Centre at Bangalore, where importance of Financial
Inclusion is emphasized in all other Training programmes held. The Bank also proposes to roll
out a separate Module on Financial Inclusion. Banks Financial Inclusion Plan (FIP) and the list
of villages taken up for providing banking services are displayed separately.
Product launch: New milestone rewards with ING Vysya debit cards:
ING Vysya Bank and MasterCard today announced the launch of ING MasterCard Premium
Debit Cards. Unlike other debit cards in the market this card comes with reward points based on
spend-milestones. While using debit cards for shopping is an increasing trend in India,
redemption of rewards points isn't. "Indian customers are using their debit cards to shop, debit
spends are increasing by 38 percent. Surprisingly however, Indian customers redeem only 18
percent of their reward points," said Shailendra Bhandari, MD and CEO, ING Vysya Bank.This
is primarily due to the way most reward points programmes work, where a certain number of
points have to be accumulated, at times with certain tie-up merchants. They also come with
expiry dates.
How this works:
Under the spend-milestone-based system, you need to spend a certain amount for two years, after
which you could choose the reward from a number of choices the banks offers. For instance, you
should spend Rs 2 lakh (Rs 7,500 a month), Rs 4 lakh (15,000 a month) or Rs 6 lakh (25,000 a
month) over two years with debit card. These cards are available in three variants, Titanium, My
World and World Exclusive. The fee for the card is in the range of Rs 0 to as much as Rs 750,
depending on the variant you choose.
Other features:
It offers zero percent fuel surcharge and other privileges like airport lounge access, higher ATM
limit withdrawals and the like.
Corporate Statement
ING Vysya Bank will be an entrepreneurial integrated financial services institution where
Innovation and Transformation are the way of life.
B) CURRENT ACCOUNTS:
0
1
2
3
4
5
6
C) DEMAT ACCOUNTS
D) TERM DEPOSITS
E) DEBIT CARDS
F) CREDIT CARDS
G) FOREX SERVICES
H) CORPORATE SALARY ACCOUNT
I) INSTITUTIONAL ACCOUNTS
J) LOCKERS
In ING Vysya bank, there are 10059 employees who are working. The total number of
branches of the bank is 557 and total number of ATM of the bank is 405 .The total number of
extension counters are 10.
1
The turnover of the bank for the year 2013-2014 is INR 5588 crores (US$9.1
billion).This is the latest data of the bank which is reflected by 83 rd annual report of ING Vysya
bank for the year ended 2013-2014.
FINANCIAL FIGURES W
In Rs. Crores
YTD
YTD
2008
2007
Q3
Q3
2008-09
2007-08
172.7
144.9
Other Income
149
95.7
Total Income
Operating Profit
Operating Profit
after Exceptional
Items
growth
growth
Operating Costs
321.8
215.3
240.6
35.5%
21.6
6.4%
27.7
36.1%
279
887.8
585.0
30.4%
100
357
400
33.8%
81.7
106.5
487
55.9%
158.9
106.5
Provision &
Contingencies
19.2%
43.3%
637.5 39.3%
438
33.6%
302.8
199.5
51.8%
302.8
219.8
37.7%
-22.1%
84.7
33.9
84.9
72.4
17.3%
218.1
186
17.3%
32.8
29.6
11%
78.4
71.9
9.1%
21.8%
139.7
114 22.5%
52.1
42.8
150.1%
Year Networth
1940
1950
1960
1970
1980
1990
2000
2001
2002
2003
2004
2005
2006
2007
2008
Deposits
0.001
1.40
1.60
3.00
11.50
162.10
5900.00
6527.00
6863.24
7067.90
7473.20
7094.00
10196.70
11101.90
14260.00
0.400
5.30
20.10
91.50
1414.30
8509.40
74240.00
81411.10
80680.00
91870.00
104780.00
125693.10
133352.50
154185.70
204980.00
Advances
Profits
Outlets
0.400
0.001
3.80
0.09
13.50
0.13
62.80
0.74
813.70
1.13
4584.80
50.35
39380.00 443.10
43163.10 371.90
44180.00 687.50
56120.00 863.50
69367.30 590.01
90805.90 (381.80)
102315.20
90.6
119761.70
889.0
146500.00 1569.00
4
16
19
39
228
319
481
484
483
456
523
536
562
626
677
Even in the recessionary period the ING Vysya Bank is going in profits. While other banks are
losing a big percentage of their expected profits.
ING Vysya Bank Q3 Profit up 22%
Continued Profit Growth sustained by Strong Fee Income Performance
The Board of Directors of ING Vysya Bank Ltd. approved the unaudited financial results of the
Bank for the quarter and period ended 31 December 2008 at its meeting in Bangalore at 23rd
January 2009.
FINANCIAL HIGHLIGHTS
Q3 Performance
Net Profit after Tax (PAT) for the quarter ended 31 December 2008 increased by 22% to Rs.52.1
Crores from Rs.42.8 crores for the quarter ended 31 December 2007 and Profit before Tax
(PBT) rose 17% to Rs.84.9 crores from Rs.72.4 crores.
However, excluding the impact of exceptional items reported in the quarter ended 31 December
2007, PAT grew by 70% and PBT by 57% over the same quarter last year.
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Net Interest Income (NII) was up 19% to Rs.172.7 crores from Rs.144.9 crores and Fee &
Other Income increased by 56% to Rs.149.1 crores from Rs.95.7 crores in the prior year.
Nine months ended December08
The PAT for the period ended 31 December 2008 increased 23% to Rs.139.7 crores
fromRs.114.1 crores for the period ended 31 December 2007 and PBT grew 17% to Rs.218.1
croresfrom Rs.186.0 crores.
However, excluding exceptional items reported in the previous year, PAT increased by 40%
andPBT by 32% over the corresponding period last year. NII grew 36% to Rs. 487.2 crores from
Rs.357.9 crores and Fee & Other Income was up 43% to Rs. 400.6 crores from Rs. 279.6 crores
inthe previous year.
Business Highlights
Total Deposits grew 25% to Rs. 22,401 crores as at end December 2008 from Rs.17,871 crores
the year before. Current and Savings (CASA) deposits rose 8% to Rs.5,819 crores as at end
December 2008 from Rs. 5,406 crores as at end December 2007.
Advances grew 19% to Rs.16,014 crores in December 2008 from Rs. 13,409 crores in December
2007. Total Assets of the bank registered a 30% growth to Rs.29,050 crores. The Credit Deposit
Ratio was at 71.5% in December 2008 against 75.0% in December 2007.
The Gross NPA ratio and Net NPA ratio were at 1.84% and 1.09% respectively as at 31
December 2008 compared to 1.81% and 0.71% respectively as at 31 December 2007. The net
worth of the Bank as at 31 December 2008 stood at Rs.1,568 crores compared to Rs. 1,459
crores as at end December 2007 and the Capital Adequacy Ratio stood at 10.72% in December
2008. In October 2008, the bank increased its capital through the issue of Tier 1 Perpetual debt
amounting to approx. Rs.95 crores. Subsequent to the quarter end, the Bank raised an additional
Rs.200 crores of Upper Tier 2 capital which has been subscribed entirely by ING Group.
World over ING has strengthened its name as a good corporate citizen. The ING Chances for
Children initiative (CFC) a global program in partnership with UNICEF is to educate 50,000
underprivileged children in three countries, Ethiopia, India and Brazil by 2008. In India the focus
is primarily in the districts of Dharampuri and Krishnagiri in Tamil Nadu. Through the national
Child labor Elimination (NCLP) bridge schools, ING provides much needed support to UNICEF,
to fund, monitor, and provide children with quality primary education
The Indian arm of the Chances for Children programs is run by the support of ING business units
in India (ING, ING Life Insurance and ING Investment Management) through the ING Vysya
Foundation.
The Indian chapter of CFC involves the partnership of the Foundation with 7 NGO working in
primary education. Not only does the Foundation provide much needed financial support to these
organizations but also runs strong voluntary programs giving the employees a chance to meet the
children, work with them and take ownership and responsibility for the vision of its partners. The
Foundation creates systems that ensure CSR activities within the organization.
Recently ING Vysya Foundation launched its initiative Run Ricky Run. In this initiative, for
every run Ricky makes the Foundation will sponsor one child to go to school through its
association with its NGO partner in Bangalore, SUKRUPA.
The ICICI Bank International debit card is a debit-cum-ATM card provides with the
Anywhere Banking facility entitles the account holder to withdraw or deposit cash upto a
Third party withdrawal limit is only Rs 15,000 and free demand draft making facility for a
month is only up to Rs 10,000. Free withdrawal limit from ATM card is only up to Rs 25,000 in
all accounts.
B) GOLD PRIVILAGE ACCOUNTS
The Gold Privilege Account brings the customer exclusive benefits, especially created for
valuable customers. The minimum quarterly average balance (QAB) requirement for Gold
Privilege account is Rs.50,000. Non-maintenance of the required QAB in any quarter attracts a
charge as per the following guidelines:
If QAB is between Rs.50,000 and Rs.25,000, charge of Rs.250 will be levied
If QAB is between Rs.25,000 and Rs.10,000, charge of Rs.500 will be levied
If QAB falls below Rs.10,000, charge of Rs.750 will be levied
In constant endeavor to fulfill all the banking needs and enhance exclusivity ICICI Bank
launched Titanium Privilege Account - tailored to take care of customers banking and
investment requirements and status. This account offers a dedicated Branch Relationship
Manager supported with a Phone Banking Relationship Manager.
Customer can realize the benefits of a Titanium Privilege Account on the basis of his total
relationship value (TRV) with the bank. Customer need to maintain a TRV of between Rs. 5 lac
and Rs. 10 lac and a quarterly average balance (QAB) of Rs.75,000. In addition to this, there is
waiver of QAB charges, subject to FD of min. 3.75 Lac.
HDFC BANK
0
An easy-to-operate savings account that allows customer to issue cheques, draw Demand Drafts
and withdraw cash. Customer can check balances from the comfort of his home or office through
NetBanking, PhoneBanking and MobileBanking.
Withdrawal of cash from any of the 3275 ATM centers spread across the country.
Welcome to a world of convenience. HDFC has presented SavingsMax account, loaded with
maximum benefits to make banking experience a pleasure. By maintaining an average quarterly
balance of just Rs. 25,000/- customer can get a host of premium services from HDFC Bank.
This account has been offered by HDFC for its preferred customers, so as to give special benefits
to them. The minimum quarterly available balance (QAB) that has to be maintained in this
account is Rs 2,00,000
CLASSIFICATION/ CATEGORIZATION
So, for convenience of the project and comparison the different accounts can be classified
into three categories:
Category A
0
PLATINA ACCOUNT
(ING)
2. TITANIUM PRIVILAGED
ACCOUNT
ACCOUNT (ICICI)
3. PREFERRED BANKING
SAVING
ACCOUNT/PLATINUM
Category B
Category C
FORMULA SAVING
ACCOUNT (ING)
ORANGE SAVING
ACCOUNT (ING)
GOLD PRIVILAGED
SAVING
ACCOUNT (ICICI)
(ICICI)
SAVING MAX
ACCOUNT (HDFC)
REGULAR
ACCOUNT (HDFC)
(HDFC)
Service quality
ING Vysya Bank provides the top notch quality to its customers. They have so many special
0
defunct The oldest bank in existence in India is the State Bank of India, a government-owned
bank that traces its origins back to June 1806 and that is the largest commercial bank in the
country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India.
Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took
over these responsibilities from the then Imperial Bank of India, relegating it to commercial
banking functions. After India's independence in 1947, the Reserve Bank was nationalized and
given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the
government nationalized the six next largest in 1980.
0
In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,
and it became an institution owned by the Government of India.
1
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."
2
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have common
directors.
In the early 1990s, the then government embarked on a policy of liberalization, licensing a small
number of private banks. These came to be known as New Generation tech-savvy banks, and
included Global Trust Bank (the first of such new generation banks to be set up), which later
amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank
and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized
the banking sector in India, which has seen rapid growth with strong contribution from all the
three sectors of banks, namely, government banks, private banks and foreign banks. The next
stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign
Direct Investment, where all Foreign Investors in banks may be given voting rights which could
exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4%) of functioning. The new wave
Page | PAGE \* MERGEFORMAT 48
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People not just demanded more from their banks but also received
more.
Currently (2009), banking in India is generally fairly mature in terms of supply, product range
and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets relative to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal
pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage
volatility but without any fixed exchange rate-and this has mostly been true.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with
the Government of India holding a stake), 31 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a
combined network of over 53,000 branches and 17,000 ATMs. The public sector banks hold over
75 percent of total assets of the banking industry, with the private and foreign banks holding
18.2% and 6.5% respectively.
CHAPTER - 2
LITERATURE REVIEW
Customer satisfaction has been considered the essence of success in todays highly competitive
banking industry. Prabhakaran and Satya (2003) mentioned that the customer is the king. Heskett
et al. (1997) argued that profit and growth are stimulated primarily by customer loyalty. Ndubisi
(2005), Gee et al. (2008) and Pfeifer (2005) pointed out that the cost of serving a loyal customer
Page | PAGE \* MERGEFORMAT 48
is five or six times less than a new customer. Several researchers including Tariq and Moussaoui
(2009), Han et al. (2008) and Ehigie (2006) found that loyalty is a direct outcome of customer
satisfaction. Generally speaking, if the customers are satisfied with the provided goods or
services, the probability that they use the services again increases (East, 1997). Also, satisfied
customers will most probably talk enthusiastically about their buying or the use of a particular
service; this will lead to positive advertising (File and Prince, 1992; Richens, 1983). On the other
hand, dissatisfied customers will most probably switch to a different brand; this will lead to
negative advertising (Nasserzadeh et al., 2008). The significance of satisfying and keeping a
customer in establishing strategies for a market and customer oriented organization cannot be
ignored (Kohli and Jaworski, 1990).
Most of the researchers found that service quality is the antecedent of customer satisfaction
(Bedi, 2010; Kassim and Abdullah, 2010; Kumar et al., 2010; Yee et al., 2010; Kuar et al., 2009;
Naeem and Saif, 2009; Balaji, 2009; Parasuraman et al., 1988). Quality customer service and
satisfaction are recognized as the most important factors for bank customer acquisition and
retention (Jamal, 2004; Armstrong and Seng, 2000; Lassar et al., 2000). Service quality is
considered as one of the critical success factors that influence the competitiveness of an
organization. A bank can differentiate itself from competitors by providing high quality service.
Service quality is one of the most attractive areas for researchers over the last decade in the retail
banking sector (Avkiran, 1994; Stafford, 1996; Johnston and Jeffrey, 1996; Angur et al., 1999;
Lassar et al., 2000; Bahia and Nantel, 2000; Sureshchandar et al., 2002; Gounaris et al., 2003;
Choudhury, 2008).
The references for the literature review used for the problem in hand are as follows: Seth et al
(2008) analyzed that there is relative importance of service quality attributes and showed that
responsiveness is the most importance dimension followed by reliability, customer perceived
network quality, assurance, convenience, empathy and tangibles. Liu (2002) found that the
choice of a cellular phone is characterized by two attitudes: attitude towards the mobile phone
brand on one hand and attitude towards the network on the other. Samuel (2002) observed that
most of the respondents consider size, quality, price, instrument servicing are an important
factors for selecting the handset while majority of the respondents are satisfied over the payment
system, quality of services, coverage area and the process of attending the complaints regarding
their mobile service provider
Reach Out To Your Customers!
Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The
more the customer sees someone from your firm, the more likely you'll get the next order. Send
Christmas cards, see them at trade shows, stop by to make sure everything's okay.
Send a simple newsletter to your customers-tell them about the great things that are happening at
your firm and include some useful information for them. Send them copies of any media
clippings about your firm. Invite them to free seminars. The more they know about you, the more
they see you as someone out to help them, the more they know about your accomplishments-the
more loyal a customer they will be.
CHAPTER- 3
RESEARCH METHODOLOGY
All the conclusions are based on the survey done in the working within the time limit. I tried to
select the sample representative of the whole group during my training. I have collected data
from people linked with ING VYSYA BANK and OTHER BANK
0
UNIVERSE- Delhi
RESEARCH PLAN:
Preliminary Investigation: In which data on the situation surrounding the problems shall be
gathered to arrive at
The correct definition of the problem.
An understanding of its environment.
.Exploratory Study: To determine the approximate area where the problem lies.
RESEARCH DESIGN:
Research was initiated by examining the secondary data to gain insight into the problem. By
analyzing the secondary data, the study aim is to explore the short comings of the present system
and primary data will help to validate the analysis of secondary data besides on unrevealing the
areas which calls for improvement.
DEVELOPING THE RESEARCH PLAN:
The data for this research project has been collected through self Administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.
In questionnaires open ended and closed ended, both the types of questions has been used.
COLLECTION OF DATA:
Secondary Data:
It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, newspapers, magazines, management books, preserved
information in the companys database and website of the company.
Primary data: All the people from different profession were personally visited and interviewed.
They were the main source of Primary data. The method of collection of primary data was direct
personal interview through a structured questionnaire.
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from the
universe to know about its characteristics.
Sampling Units: Different Account Holder and Service receiver from the bank
Framing of Questionnaire
ICICI Bank
HDFC Bank
(Please
Specify)
3) Do you have complete knowledge of the saving account and services associated with that
account you have?
a) Yes
b) No
c) Cant say
4) Are you a preferred/privileged customer of your bank?
a) Yes
b) No
0
0
1
2
3
1
0
1
Does your Bank provide you some special services like, smart serve, mi-banking?
Yes
No
2
Please rate the following banks on the scale of 4 where 1is the least and 4 is the most
according to your perception you are having for reputation of the banks.
ING Vysya
Bank
ICICI Bank
HDFC Bank
Axis Bank
0
1
2
3
4
Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking
Please rate the following banks on the basis of your perception about the given attributes
S.NO
ATTRIBUTES
Bank charges
Customer care
Working Hours
6.
Location
7.
Personalized attention
8.
Processing Speed
9.
Grievance/queries handling
ING
Vysya
Bank
ICICI
Bank
HDFC
Bank
Axis
Bank
10)Please rate the following variables which influence you when it comes to open an account on
the scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree.
SL
NO
STATEMENTS
SRONGLY
STRONGLY
DISAGREE AGREE
1
Budgetary constraints: - Collecting data from a large number of respondents is not easy.
The process becomes expensive so here also, in this study lack of budget was one of the
constraints suffered during the research process.
1
Reliability of data: - The data collected must be useful otherwise the whole study will be
a waste. To bring relevant data and extracting important information from the same data was
difficult.
2
time duration was a limitation under which the result needs to be generated. There was lack of
time so not all the customers were taken as respondents.
3
Language barrier: - Many of the respondents were asking their juniors or other members
to fill the form from their side where the people were experienced in working but not much
educated. For them, it took much time to make them understand the questions and the
importance of filling questionnaire for us.
4
Boring and time waste: - Many of our customers feel that it is a boring process and a time
wasting activity. To avoid it, they filled it randomly or avoided some of the questions. They
answered without reading properly, which can result in wrong interpretation of data collected.
CHAPTER- 4
DATA REDUCTION, PRESENTATION& ANALYSIS
After collection, data has to be analysed in accordance with the outline laid down for the purpose
at the time of developing the research plan. This is essential for a scientific study and for
ensuring that the data collected is relevant for making contemplated comparisons and analysis
.Processing refers to editing, coding, classification and tabulation of collected data so that they
are amenable to analysis.
Processing operations:Editing it is a process of examining the collected data to detect errors and omissions and to
correct these when possible. As a matter of fact, editing involves a careful scrutiny of the
completed questionnaires/ or schedules. Editing is done to ensure that the data are accurate,
consistent with the other facts gathered, uniformly entered, as completed as possible and have
been well arranged to facilitate coding and tabulation.
Coding- coding refers to the process of assigning numerals or other symbols to answers so that
response can be put into a limited number of categories or classes. Such classes should be
appropriate to the research problem under consideration. They must also possess the
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characteristics of exhaustiveness (i.e.- there must be a class foe every data item) and also that of
mutual exclusively which means that a specific answer can be placed in one and one cell in a
given category set.
Classification- classification means to arrange the data in groups or classes on the basis of
common characteristics. Data having common characteristics are placed in one class and this
way the entire data get divided into a number of groups or classes.
It can be classified into two types:
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1
Tabulation- when a mass of data has been assembled, it becomes necessary for the researcher to
arrange the same in some kind of concise and logical order. This process is called tabulation.
Tabulation is a process of summarizing raw data and displaying the same in compact form for
further analysis. It is an orderly arrangement of data in columns and rows.
CHAPTER- 5
DATA INTERPRETATION
PARTICULARS
ACCOUNT NAME
HDFC
ICICI
Saving Regular Savings
ING Vysya
Orange
Savings
Account
Account
Account
Rs10,000
Rs 10,000
Rs. 5,000
AVERAGE QUATERLY
BALANCE
750.00 Rs
CHARGES
quarter Only.
per
Available
Only.
N.A
Available
N.A
Unlimited
3
FREE TRANSACTIONS
750.00
per
per
month
from
SBI/Andhra
from
Bank ATM
THIRD PARTY CASH N.A
Rs.15,000
WITHDRAWL/DEPOSIT
NET BANKING
Free
per day
Free
Free
MOBILE BANKING
Free
Free
Free
PARTICULARS
HDFC
ICICI
ING Vysya
Account name
SAVING MAX
ACCOUNT
GOLD
PRIVILAGE
D ACCOUNT
FORMULA
SAVING
ACCOUNT
25,000
50,000
25,000
Free DD
Upto 50,000/qat
N.A.
Upto 50,000/qat.
Upto 15,000
N.A.
Upto 25,000
Smart-serv
N.A.
N.A.
Present
Free Transaction
6 in a year
N.A.
Unlimited
Special Features
Direct
Bill Payments
from accounts
Present
Preference
rates on gold
coins
N.A.
12 annual passes of
famous night clubs
and restaurants,
across India
Present
PARTICULARS
HDFC
ICICI
Account Name
Privileged
Platinum
Titanium
Platina
QAB (Quarterly
Available Balance)
2,00,000
75,000 + TRV
of 5 to 10 lac
1,00,000
DD/PO Wavier
Available upto
50,000
N.A.
Available upto
50,000
PAP books
Unlimited
unlimited
unlimited
N.A.
Available*
N.A.
ING Vysya
N.A.
N.A.
1 to 2 %
Cashnet enabled
credit/debit card
N.A.
N.A.
Available
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Smart serv is type of special services in which a person can send/present gifts to any of his/her
known in any of the city by just telling your banker the address of the person. The gift will be
purchased and will be delivered by the bank only, and the amount for the gift will be
automatically deducted from the senders account.
10% of the people who were really enjoying some of the special services provided by bank were
found to be associated with ING Vysya Bank.
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All of the bank customers interact most frequently with the bank by doing their transactions from
ATM. 35% of them visit branch quite often and 35% of the respondents also go for phone
banking. Internet Banking is the 2nd most point of interaction of bank and the customer. People
who use Internet banking and mobile banking were found to be associated mainly with ICICI
and ING Vysya Bank. ING Vysya is having best Internet banking attributes. This implies the
technological advancement in Muzaffarnagar Citizens.
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4- Most/excellent
2- Fair
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3- Reasonably good
1- Disappointing/least
4. Almost all respondents who are in connection with ING Vysya Bank have rated it best
in the customer care services. 55% of the respondent who are associated with HDFC Bank have
rated HDFC, reasonably good in customer care services. But customer of ICICI and AXIS Bank
are not very much delighted with customer care services of their bank. This way ING Vysya has
got an advantage of delivering excellent customer care services.
5. In case of Behavior of the Staff most of the ING Vysya customers have rated ING
the best. Almost 100% of the ING customers are well satisfied with their bankers behavior. On
the other hand 72% customers of ICICI bank and other respondents as well have ranked ICICI as
very disappointing as per behavior of the staff. Most of them stated that when they visit branch,
any of the employee there, hardly pays full attention towards them. Even some of the preferred
customers have to stay in a cue or have to wait for long to get their job done by the bank. HDFC
and AXIS Bank has been rated reasonably good by the respondents as far as behavior of the staff
is concerned.
6. With the criteria of Variety of Accounts, people have rated ICICI as the top one. This is
because ICICI is having bank accounts for the different customers with different needs. They
have account for old age citizen, pension account, kids account of various types and many more.
Where as ING Vysya has been rated least, because they are operating with only 3 types of saving
accounts in the city.
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According to the respondents, they mainly disagree for opening a bank account on their
friends or relatives recommendation. And to 27% of the respondents it doesnt matter.
Very few people agree to the recommendation. This means that the WORD OF MOUTH
is not an essential marketing channel for opening an account in bank. People first try to
find the real facts by their own.
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Most of the respondents were unaware of the new advertisements of various banks. For
them it hardly plays any important role in capturing market share.
1
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Most of the Customers strongly agree that they give preference to instant alert about the
deposits and withdraw in their accounts by the bank. They also prefer the facility of net
banking and phone banking as it gives them ease for banking.
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HYPERLINK "http://www.ingvysyabank.com"www.ingvysyabank.com
1
HYPERLINK
"http://www.icicibank.com"www.icicibank.comHYPERLINK
"http://www.hdfcbank.com"www.hdfcbank.com
2
HYPERLINK
"http://www.moneycontrol.com"www.moneycontrol.comHYPERLINK
"http://www.economictimes.com"www.economictimes.com
BOOKS
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1
2
India Today
Business World
Business Today
ANNEXURE
Questionnaire
Dear respondent,
We are conducting a research to know the general perception and attitude of customer towards
the products & services that are offered by ING Vysya Bank & other private banks (ICICI &
HDFC) in Delhi. The information will be valuable input for the research and we assure you that
the information will be kept confidential. We hope that you will co-ordinate with us and give
quite a few minutes from your precious time and give the genuine answer.
Personal Details:Name:Gender :-
Age:Address:-
Occupation:-
Service
Professional
Businessman
Educational Qualification:-
Below 1 Lac
1 Lac 3 Lac
3 Lac - 5 Lac
Above 5 Lac
ICICI Bank
HDFC Bank
(Please
Specify)
3) Do you have complete knowledge of the saving account and services associated with that
account you have?
a) Yes
b) No
c) Cant say
b) No
0
4
5
6
7
1
2
3
Does your Bank provide you some special services like, smart serve, mi-banking?
Yes
No
2
Please rate the following banks on the scale of 4 where 1is the least and 4 is the most
according to your perception you are having for reputation of the banks.
ING Vysya
Bank
ICICI Bank
HDFC Bank
Axis Bank
5
6
7
8
9
10
Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking
Mobile Banking
Please rate the following banks on the basis of your perception about the given attributes
S.NO
ATTRIBUTES
ING
Vysya
Bank
ICICI
Bank
HDFC
Bank
Axis
Bank
Bank charges
Customer care
Working Hours
Location
Personalized attention
Processing Speed
Grievance/queries handling
5
Please rate the following variables which influence you when it comes to open an
account on the scale of 1 to 5 where 1 is strongly disagree and 5 is strongly agree.
SL
NO
STATEMENTS
SRONGLY
STRONGLY
DISAGREE AGREE
1
.
Thank you for your cooperation for devoting your valuable time and sharing the valuable
information with us which will help us to complete our project successfully.
Place
Date..
Signature of the respondent