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Developing a Service Delivery Model to Bridge the Gap Between

Expected & Provided Services by ICICI Home Loans

SUBMITTED BY :- TANNA KRUPAL ROHITBHAI


AWARD :- MBA ( Master of Business Administration)

July 2016

Table Of Contents
Title of the project
Objective of the study
Literature Survey
Methodology
Data Analysis
Results and Discussion
Findings and Conclusions
Further scope of Investigation, if any

Objective of The Project

To understand the major attributes of customer satisfaction.


To determine the main factors influencing the level of customer satisfaction in ICICI Bank.
To assess the level of customer satisfaction on the quality of service provided by the ICICI Bank.
To study consumer perception about the ICICI Bank.
To get the knowledge about the obstacles of customer service of ICICI home loans.
Causes of gap between expected and service provided of ICICI home loans.
Strategies for reducing gap between prospect market of home loans and delivered market.
Knowing service standards of ICICI home loan departments.
Know the Mismatch between promise and services.
It is where we often in financial crisis and money related query.
Is Home loan industry remain important source for career opportunities for people or not?
It is vital system for developing economy for the nation.
Banks can play a dynamic role in delivery and purchase of consumer durables.
Customer retention through effective services of home loans.

Literature Survey

Financial services and wide range of banking products are offered by ICICI Group and
retail customers through a variety of delivery channels and through its specialized group
companies, subsidiaries and affiliates in the areas of personal banking, investment banking,
life and general insurance, venture capital and asset management. In their respective sectors
ICICI Group companies have enhanced and maintained their leadership position with the
support of strong customer focus.
Second largest Indias bank is ICICI with the total assets of Rs. 3,793.01 billion (US$ 75
billion) at March 31, 2009 and for the year ended March 31, 2009 profit after tax is Rs.
37.58 billion. In India, the ICICI bank has a network of 1,451 branches and total ATMs are
4,721 and existed in 18 countries.
At the end of December 31, 2009 profit is Rs. 30.19 billion (US$ 648.8 billion) for nine
months after tax, for total Rs. 3,562, 28 billion (US$ 77 billion) at December 31, 2009
therefore Indias second-largest bank is ICICI. 4,883 ATMs and 1,646 branches network in
banks, in India and at present in 18 countries. During specialized subsidiaries and variety of
delivery channels, for retail customers and corporate customers an open series of financial
services and banking products are presented by ICICI and in regions like asset management
and venture capital, investment banking, life and non-life insurance it is joined.

Business Overview
In 1994 through ICICI Ltd., Indian development financial institution, ICICI bank was advanced.
Among all private banks ICICI bank has to develop into largest commercial bank so consequently two
entities are combined. In the second half of nineties to beat the Indian banking industry, with new
technologies ICICI bank which is a new generation bank is in progress. VSAT technology is used in
network along with systems and state-of-the-art technology in ICICI bank branches, these branches are
automated fully.
With SWIFT International network, bank is having relation and network of ICICI bank is extended in
2005 as 1,910 ATMs and 562 branches. Some of the electronic channels like call centers and ATMs,
internet banking, mobile banking are increased and for these channels number of customer transactions
are transferred then more than 70% of customer transactions are happening.
To increase deposit franchise overseas and corporate business a small Russian banking entity, Invest
itsionno-Kreditny Bank (IKB) is obtained by ICICI bank. Through DBS in Singapore, Lloyds TSB in
UK and Wells Fargo in USA banks, ICICI bank is having a number of dealings.
To do mutual business, ICICI planned to deal with prudential plc. Of UK. Through Prudential ICICI
Trust Limited and Prudential ICICI Asset Management Company duo is moderately insistent. Towards
the Indian agricultural sector, to offer services ICICI bank is ready. By means of large agriculture
markets, in place more than 70 Agri-desks and 2000 Internet kiosks are started.

Overview of ICICI Bank


The importance of innovative practices in small ventures/start-ups has been
widely recognized. By their very nature of autonomy of SMEs, they are
exceedingly innovative. However, it is still limited that these small enterprises
have demonstrated the wisdom to be continually innovative as a tactic to their
survival. This case study has attempted to demonstrate how dreams can inspire
youngsters to fulfil their childhood aspirations and via creativity, dint of hard
work, opportunity orientation and recognition drives away to establishing an
enterprise of its own. The objective of this case study was to explore the birth
and decipher the types of innovation that are principal in small enterprise(s) and
to understand the impact of these innovations on performance.
Quality improvement and adherence to accepted norms of quality are central to
the modern concept of marketing of services. The quality of service delivery
results in customer satisfaction and their retention as it reinforces the perception
that the value of the service received is greater than the price paid for it.
Modern quality concepts results in better profitability, which is the main goal of
all the business as well as ICICI HOME LOANS ALSO.

Quality Control
Quality control has much to do with changing the frame of mind and psychology
of the service provider and particularly the front end and back end employees
actually providing the services. We need to know how this fundamental change in
attitude can be brought about. Traditionally, most service providers have felt that
they know all there is to know about the customers and their requirement. This
smug or selfsatisfied approach needs to be changed. Development of feedback
system is very essential part of the quality improvement. How this can be used to
develop better quality standards is an issue of immense importance. Goal setting
and adherence to the goals are both essential to ensure continuous improvement in
the quality standards.
The focus of the modern marketers has shifted away from a onetime sale to
making repeated sales to the same customer. Customer retention usually pays
dividends by way of, Lifetime value of the customer if the customer remains loyal
to the company naturally ,the repeated purchases represents a cumulative value
which is quite substantial compared to single transaction Reduced costs it costs
much more to acquire a new customer than to retain and old customer .

Methodology

Gap Analysis
Swot Analysis
Common Problem Faced During Home Loan Process
Designing Research
Sampling Method
Pilot Study
Face Validity
Reliability

Gap Analysis
Todays competitive business environment calls for effective organizations.
Effectiveness of organizations depends on degree of effectiveness of IS in
organization. To define and measure IS effectiveness which is universally
applicable across organizations, has failed to emerge despite the efforts of the
theorists from a variety of fields. Although there is evidence to increase
professional interest in IS effectiveness in recent years, the literature is still
characterized by a paucity of empirical studies.
The banking industry is highly dependent on the growth of technology and
contemporary business processes. In spite of this industry being exposed to
similar technology and information, there has been a significant difference in the
performance of the banks, which brings out the need to study the extent of IS
effectiveness in banks. IS effectiveness could be analyzed and evaluated by
identifying and studying Key performance Indicators of IS in banks.

Gap Analysis

Swot Analysis

Strength Of ICICI bank


Weakness of ICICI bank
Opportunitie of ICICI bank
Threat of ICICI bank

Common Problems Faced During Loan Process

Rejection at the first stage


Processing fee not refunded
Desired loan not sanctioned
The interest rate dilemma
Difference in property valuation
The down payment
Title deeds and NOC Documentation Problems

Designing The Research


The research will be exploratory in nature. A population of peoples
who take home loan from these banks will be considered for this
study. I will try to explore about the home loans which would make
a difference in the behaviour of the consumer. Effort will be made to
throw light on most of the factors which have either indirect or direct
effect on the behaviour of the consumer. I will also explore the
impact of home loans on the market share of the banks.

Sampling Method

For this research we use non-probability sampling. Zikmund (1997) stated that in nonprobability sampling, the probability of any particular member of the population being
chosen is unknown. The element in the population does not have any probability attached
to their being chosen as sample subjects. Snow ball sampling will be applied in this
research. Snow ball sampling is used to collect the data from the customers. Snow ball
sampling refers to the procedure that involves the selection of additional respondents based
on referrals of initial respondents. The researches will be done in banks and ATMS.
A Sample size of 50 respondents will be taken for the current study because it is not
possible to cover the whole universe in the available time period. So it is necessary to
take the sample size. The samples will the peoples of age group lying between eighteen to
thirty years. The sample will be taken in the form of strata based on age, sex, and income
group.
The sampling technique will be probabilistic sampling more specifically the random
convenient and judgmental sampling will be used. As in probabilistic sampling the select
unit for observation with known probabilities so that statistically sound assumptions are
supported from the sample to entire population so that we had positive probability of being
selected into the sample. I will go for stratified random sampling as we are interested to
study the home loan by ICICI banks, so we will make the strata on the basis of age,
occupation, income level, gender. And from each strata we will go for random sampling.

Pilot Study
A pilot study can refer to many types of experiments, but generally the goal of study
is to replicate the full scale experiment, but only on a smaller scale.
A pilot is often used to test the design of the full-scale experiment. The design can
then be adjusted in time. This can turn out to be valuable: should anything be missing
in the pilot, it can be added to the experiment and chances are that the full-scale (and
more expensive) experiment will not have to be re-done.

Face Validity & Reliability


Face validity refers to the collective agreement of the experts and
researchers on the validity of the measurement scale. The researcher
has gave the questionnaire to the experts in banking field.
In reliability the researcher has adopted the alpha method. The
reliability for the ICICI bank ATM service is .630.It shows that the
question regarding to ICICI ATM service is reliable. And for the
internet banking service is .767. And for the mobile banking service
is .896. And for the core banking system is .902. If the reliability
result is .6 or above .6 the data is reliable. And for this study the
data is reliable because all the service are above .6

Data Analysis

From the Responses given by the people and based on the objectives of the study the following
Analysis can be ascertained.
1) 80% of the people taking home loans are businessman and government employees.34% and 46%
respectively.
2) The time period of most of the people associated with ICICI bank is between 1-5 years.
3) 68% of the people came to know about home loan scheme through Newspaper and Television
4) 38% people were aware about home construction loan, 18% were aware about home purchase loan,
18% for home Improvement loan & 18% for land purchase loan.
5) 68% people know about the terms and conditions of the loan.
6) 22% of people were strongly agreed that they were satisfied by the interest rate charged by the bank
and 68% agreed that they were satisfied for the same.
7) 72% people said that they use mobile banking, 26% people were using internet banking, 8% people
were using forex banking.
8) 8% of people strongly agreed that loan processing is fast of ICICI bank, 42% agreed but 26%
people disagreed that loan processing of ICICI bank is not fast.

Data Analysis

9) 58% people agreed and 28% people strongly agreed that services provided by ICICI bank are better compared to other
banks.
10) 58% people said that cost of home loan is appropriate 38% people were not satisfied with the cost of home loans of ICICI
bank.
11) 82% people were satisfied with the employees behaviour of ICICI bank.
12) 70% people said that ICICI bank gives discount on home loans but 26% people disagreed.
13) 68% people were not satisfied for the time taken by the bank for sanctioning the loan.
14) 86% people said that they faced difficulty in taking the loan
15) The grade given by the people in for home loan schemes and to ICICI bank were
36% - Excellent
40% - Good
16% - Average
2% - Below Average

Points of Discussions

Educational Loans
Issues of Customers in Rural and Semi Urban Areas
a) Currency Exchange Facilities
b) Branch Timings
Fair Treatment to Customers
Customer education
One - Man Branch
Customer Service Departments of Banks
Foreign Exchange Expertise
Branch layout

Findings
The Service delivery model is model prepared from the results
and findings, points of discussions, customers feedback and
suggestions. The model prepared is as follows: Customer Education
Institutional Arrangements
Loan documents, Loan Statement and Time Schedule for
disposing of Loan Application
Customer Centricity
Moving towards paperless fund transfer
Customer Service and Technology
Grievance Redressal System In Banks

Conclusions

1) The home loan segment can be extended to the lucrative NRI segment; this would
provide the bank a cutting edge and larger share of the home loan market.
2) The bank can provide the benefits like SMS alert and other features so as to make the
home loans more attractive.
3) The bank can contemplate on decentralizing the operations however taking into
consideration the experience and expertise of the members at Loan Department enters.
4) According to the data collected, it is clear that most of the respondents are part of the
ICICI bank from 1-7 years.
5) Almost half of the population gets timely and quick services by the ICICI bank and 75%
of the respondents are satisfied with the service offered by ICICI bank.
6) Presently the bank offers varieties of services but the customers are mostly happy with
the easy and simple process of opening a new account, depositing and withdrawing money
and query handling process of the ICICI bank.
7) The problems face by the majority of the population is related to the location of branch
and parking facility availability. Whereas online services are new to the customers so they
also face some problem in performing the online services of the ICICI bank.
8) Majority of the people find banking important in their life, so the ICICI Bank should
employ the strategies to convert the want in to need which will enrich their business.

Future Scope

The major players in the home loan market are HFCs and the commercial banks and the
scheduled commercial banks.
In 2011-12, the incremental disbursements of housing finance companies is estimated have
increase by over 70 per cent.
The disbursement of leading HFCs has increased over the previous years like HDFC, Can
fin homes, over the previous year. However the incremental disbursements of smaller and
medium size HFCs have declined by 3.9 percent, due to:
1) Increased competition from the banks 2) Lower availability of low cost funds
3) Tightening interest spreads
The banks aggregate market share of all the banks, in incremental direct disbursement has
increased by 10.1 per cent, to 34.8 per cent.The growth has been largely driven by the cost
advantages of banks over HFCs and lower credit off-take from the corporate segment
The banks have the advantage over the HFCs because of the Access to lower cost retail
funds (savings deposits).The banking sector every year gets about 400 450 billion in
savings and demand/current deposits, out of which around 75-80 percent is considered core
float and are largely long term in nature. This indicates the scope of increase in
disbursements by the banks without significant maturity mismatch risks in comparison to
the disbursement by the housing finance industry.

Biblography
We have taken various references from internet, articles, magazines and
newspaper.
www.rbi.org.in
www.moneycontrol.com
www.nseindia.com
www.icicibank.com
www.google.com
Online Home loan. in/ICICI Bank
www.ezine@rticles.com
www.scribd.com

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