A

PROJECT REPORT

ON

“OPERATION STRATEGY AND PERFORMANCE OF FREE WiFi

AIR DEVICE IN THE HOTEL INDUSTRY”

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE

MASTERS OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

ISHITA ROY

(BATCH 2017-19)

UNDER THE GUIDANCE OF

PROF. AMIT MEDHKAR

ARIHANT INSTITUTE OF BUSINESS MANAGEMENT,

PUNE-21
 ACKNOWLEDGEMENT

I would like to thank Mr. Kumendra Raheja sir, Director Arihant Institute of
Business Management, for his inseparable support. I would, in particular, like
to thank my faculty guide, Prof. Amit Medekar for his valuable inputs and
support throughout my project and providing me an opportunity to learn
outside the classroom. In the end, I would also thank my fellow interns for
their valuable suggestions during and after the completion of the Summer
internship.

ISHITA ROY
 DECLARATION

I, ISHITA ROY being a student of MBA third semester of Arihant

Institute of Business Management hereby declare that the project report
under titled “OPERATION STRATEGY AND PERFORMANCE OF
FREE WiFi AIR DEVICE IN HOTEL INDUSTRY” was written and
submitted by me to the University of Pune in partial fulfilment of
requirement for the award of degree of Masters of Business
Administration. All care has been taken to keep this report error free.

Place: Pune

Date: ISHITA ROY

 CONTENTS

CHAPTER PAGE NUMBER

CHAPTER 1: EXECUTIVE SUMMARY 01-04

CHAPTER 2: OBJECTIVE AND SCOPE 05-06

CHAPTER 3:COMPANY PROFILE 07-21

CHAPTER 4: THEORITICAL BACKGROUND 22-28

CHAPTER 5:RESEARCH METHODOLOGY 29-32

CHAPTER 6: DATA ANALYSIS, PRESENTATION & 33-53

INTERPRETATIONS

CHAPTER 7: LIMITATIONS OF THE PROJECT 54-55

CHAPTER 8:FINDINGS, CONCLUSIONS & 56-61

SUGGESTIONS

CHAPTER 9: ANNEXURE 62-70

QUESTIONNAIRE

CHAPTER 10 : BIBILOGRAPHY 71-72

. INTRODUCTION

The present study evaluates the customer perceptions of service quality in

selected private sector banks. Data was collected from 200 customers of
Private Sector Banks using structured questionnaire. Gap analysis and
Multi regression were used fro analysis of data. The result shows that the
dimension of service quality such as Empathy and Accessibility has more
gap, as the customer expectations are high to their perceived service. The
result also indicates that Empathy-Reliability-Assurance positively
influences the service quality. The study implies that bank should reduce
the service gap to deliver superior quality of service to retain existing
customers as well as to attract new customers.

As per the Reserve Bank of India (RBI), India’s banking sector is

sufficiently capitalised and well-regulated. The financial and economic
conditions in the country are far superior to any other country in the world.
Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative
banking models like payments and small finance banks. RBI’s new
measures may go a long way in helping the restructuring of the domestic
banking industry.
The digital payments system in India has evolved the most among 25
countries with India’s Immediate Payment Service (IMPS) being the only
system at level 5 in the Faster Payments Innovation Index (FPII).

However, there is a burden of distressed loans upon the banking industry

in India. According to Reserve Bank of India data, the value of banks
gross non-performing assets (GNPA) and restructured assets reached $150
billion in April 2016 and has been growing by almost 25% per year. State
owned banks accounts for more than three fourth of the stressed asset
load, which is now far higher than their net worth.
Provision levels are inadequate because these banks hold only 28% of
GNPAs and restructured assets as provisions. There is a gap of close to
$110 billion between the system’s stressed assets and the provisions made.
The banking sector, being the barometer of the economy, is reflective of
the weak macro-economic variables. The Indian banking system continued
to battle falling asset quality issues and the need to maintain capital
adequacy in the light of piling bad loans.

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 Indian government’s idea to encourage digital identification and cashless
transactions are bringing significant changes throughout the economy.
Introduction of the Unique Identification Authority of India (UIDAI), a
statutory body responsible for providing the country’s resident with a
biometric identity and a digital platform for authentication.

Indian Banking sector is one of the formidable and widely spread industry
in Indian economy. Over the years due to stable and improved
performance Indian banking system has retained high customer
satisfaction and confidence. The customer satisfaction for the banking
sector has got many dimensions and varies from person to person. There
are many index measuring customer satisfaction and Indian Customer
Satisfaction Index is one of the main measure used for cross industry
benchmarking of organisations across banking sector.

According to Mr Amitabh Kant, CEO of NITI Aayog ,

Compounded Annual Growth Rate as on April 2018 is as
follows:

 Credit off-take has been surging ahead over the past decade, aided by
strong economic growth, rising disposable incomes, increasing
consumerism & easier access to credit
 As of Q3 FY18, total credit extended surged to US$ 1,288.1 billion.
 Credit to non-food industries increased by 9.53 per cent reaching US$
1,120.42 billion in January 2018 from US$ 1,022.98 billion during the
previous financial year.
 Demand has grown for both corporate & retail loans; particularly the
services, real estate, consumer durables & agriculture allied sectors have
led the growth in credit.
 The digital payments revolution will trigger massive changes in the way
credit is disbursed in India

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  Market Size:

The Indian Banking Industry consist of different sectors of banks:

 27 Public sector banks
 26 Private sector banks
 46 Foreign banks
 56 Regional Rural banks
 1574 Urban co-operative banks
 93913 Rural co-operative banks

Public Sector Private Sector Foreign

27 26 46

Urban Co-operatives Regional Rural

1574 56

Rural Co-operative
93913

Public-sector banks control more than 70 per cent of the banking system
assets, thereby leaving a comparatively smaller share for its private peers.
Banks are also encouraging their customers to manage their finances using
mobile phones.

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As the Reserve Bank of India (RBI) allows more features such as
unlimited fund transfers between wallets and bank accounts, mobile
wallets are expected to become strong players in the financial market.

The unorganised retail sector in India has huge unidentified potential for
adopting digital mode of payments, as 63 per cent of the retailers are
interested in using digital payments like mobile and card payments, as per
a report by Centre for Digital Financial Inclusion (CDFI)

Banking services worldwide can broadly classified into investment

banking and commercial banking is primarily concerned with helping
corporate bodies raise funds at the best possible rates from various
markets. Commercial banking is concerned with channeling savings to
productive uses. Banking in an intermediary function but one that is very
essential for sustained economic growth. In India, since the nationalization
of banks in 1969, banking has been primarily in the Central Government’s
domain. As part of the Government’s liberalization policy which began in
1991, New Private Sector Banks (NPSBs) were allowed to be set up.
Today, India has nine NPSBs that provide commercial banking services.
In a relatively short period, the NPSBs have managed to achieve about 2%
of the market share in terms of business, a disproportionate of 2% share of
the total income and almost 17% of the total net profit earned by the
banking system as a whole. This success can be attributed in large
measure to the superior Quality of Services that these banks have been
able to provide.

 Major Players:

With a market capitalization of about INR 216,128.73 crore, SBI is the

second most-valued bank in India It and is perhaps the most trusted one,
being a state-owned bank. The bank has a strong network of over 13,000
branches spread across the nation and has about 190 foreign offices in 36
countries. Along with HDFC Bank, SBI also features among the top 50
global banks (going by market capitalization). It is also one of the largest
employers in the country and provides employment to over 220,000
personnel. SBI manages assets worth about USD 390 billion in all.

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Going by market capitalization, HDFC Bank is the largest bank in India.
Its market cap is pegged at about INR 261,226.94 crore.As of end 2014,
the bank boasted of a strong network of 3,659 branches in 2,287 cities.To
facilitate NRI banking, the bank also has overseas branches in Bahrain,
Hong Kong, Abu Dhabi, Kenya and Dubai.HDFC Bank has over 11,633
ATMs and a customer base of over 28 million. It is also ranked 45th
among the top 50 banks of the world. Employing over 69,065 employees,
HDFC Bank is one of the strongest contenders in the private banking
space.

ICICI Bank is the third largest entity in the Indian banking space, with a
market capitalization of INR 184,547.26 crore.ICICI Bank has a customer
base of over 2.5 million and boasts of an extensive network of 4050
branches across the country. With 12,475 ATMs and assets worth USD 99
billion, the bank is currently celebrating 60 years of existence. ICICI was
formed as a World Bank initiative in 1955.The bank is headquartered in
Vadodara, Gujarat and has an international presence in 19 countries.

Canara Bank is another PSU that has made its mark in the Indian banking
sector with a market capitalization of about INR 18630.10 crore.
Nationalised in 1976, the bank has a network of about 3600 branches
spread across the country. With 7599 ATMs, the bank is among the first
PSUs in the country to emphasise on e-banking and online services. Apart
from commercial banking, Canara Bank has also become a strong provider
of corporate banking services in India.

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With a market capitalization of about INR 134,685.68 crore, Axis Bank
takes its place at the fourth position among Indian banks. Founded in 1994
as UTI Bank, Axis Bank now has a network of 2402 domestic branches
and 12922 ATMs spread across the nation. The bank also has seven
international offices including the ones in Hong Kong, Singapore,
Colombo, Dubai, Abu Dhabi, and Shanghai. Axis Bank employs over
37,901 employees and is reported to have net assets worth about USD 53
billion. Apart from retail banking, Axis Bank also operates in NRI
Services, Investment banking and treasury operations and corporate
banking.

Kotak Mahindra Bank, headed by Mr. Uday S Kotak, and with a market
capitalisation of INR 109,631.60 crore comes next. Kotak Mahindra Bank
is currently poised for a spectacular growth due to an all-stockmerger with
ING Vysya Bank. Kotak Mahindra shall now become the fourth largest
private bank in the country in terms of the business done.The combined
banking company will now have a network of 1,214 branches across the
country. The bank is likely to have an employee strength of about 30,000
after the merger. The combined market capitalisation is estimated to be
about INR 1.25 lakh crore.

Founded in 1994, Hinduja Group owned IndusInd Bank has a market

capitalisation of about INR 50,100.41 crore. The bank employs over

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15,500 employees and has a network of 638 branches and 1238 ATMs
across the country. With international offices in London and Dubai,
IndusInd Bank is known for its strong remittances business. The bank has
an exceptionally strong business base in Mumbai, Delhi, and Chennai.

Bank of Baroda is another large PSU banking company in India with a

market capitalization of about INR 38601.08 crore.The bank is estimated
to have over 5193 branches and 38,737 employees. With a significant
presence in about 25 countries, the Bank of Baroda balances out NRI
services with rural and agricultural finance. The bank is one of the major
banking operators in India’s rural sectors.

Founded in 1894, Punjab National bank is one of the oldest banks in India.
Unlike most Indian banks that have their headquarters in Mumbai or
Gujarat, the Punjab National Bank has its headquarters in Delhi and has a
market capitalization of about INR 30312.73 crore. Like other PSU banks,
the bank has a major focus on agricultural and rural financing but also has

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a widespread international presence.The bank has 8.9 crore customers,
6081 branches in India and abroad and a network of 6940 ATMs spread
across the country.
 Categories of Banks:

The Indian banking sector has been classified into wide categories,
under which banks perform different functions and duties. The
banks are classified under the following categories:

 Central Bank
 Scheduled and Unscheduled Banks
 Commercial Banks
 Cooperative Banks
 Development Banks
 Foreign Banks
 Regional Rural Banks

 Central Bank:

A central bank, or monetary authority is an institution that manages

a state's currency, money supply, and interest rates. Central banks also
usually oversee the commercial banking system of their respective
countries. In contrast to a commercial bank, a central bank possesses
a monopoly on increasing the monetary base in the state, and usually also
prints the national currency, which usually serves as the state's legal
tender. Central banks also act as a "lender of last resort" to the banking
sectorduring times of financial crisis. Most central banks usually also have
supervisory and regulatory powers to ensure the solvency of member
institutions, prevent bank runs, and prevent reckless or fraudulent
behaviour by member banks.
 India’s central bank is the Reserve Bank of India.

 Scheduled and Unscheduled Banks:

Under the Reserve Bank of India Act, 1939, banks were classified as

scheduled banks and non scheduled banks.. The scheduled banks are those

which are entered in the second schedule of RBI Act, 1939. Scheduled

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banks are those banks an which have a paid up capital and reserves of
aggregate value of not less than Rs 5 lakhs and which satisfy RBI.

All Commercial Banks, Regional Rural Banks, State Cooperative Banks

are scheduled banks. On the other hand, non-schedule banks are those
banks whose total paid up capital is less than Rs 5 lakh and RBI has no
specific control over these banks. These banks are not included in the
second schedule of RBI Act, 1934.

 Commercial Banks:

A bank dealing with general public, accepting deposits from making loans

to large numbers of households and firms. Through the process of

accepting deposits and lending, commercial banks create credit in the

economy. Some examples (commercial banks in India are State Bank

India (SBI), Punjab National Bank (PNB) etc.

 Cooperative Banks:

Co-operative banks are organised under the provisions of the Co-

operative societies law of the state. These banks were originally set up in

India to provide credit to the farmers at cheaper rates. However, the co-
operative banks function also in the urban sectors.

 Development Banks:

Development banks are specialised financial institutions. To promote

economic development, development banks provide medium term and

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long term loans to the entrepreneurs at relatively low rate of interest rates.

Some examples of development banks in India are Industrial Development

Bank of India (IDBI), Industrial Financial Corporation of India (IFCI),

Industrial Credit and Investment Corporation of India (ICICI) etc.

 Foreign Banks:

A foreign bank is a type of bank that is obligated to follow the regulations

of both the home and host countries. Because the foreign banks' loan

limits are based on the parent bank's capital, foreign banks can provide

more loans than subsidiary banks. This is because the foreign bank, while

possibly small in one market, is technically part of a larger bank — hence,

it enjoys the capital base of the larger parent entity. Some examples of

foreign banks are Doha bank, Deutsche Bank , Bank of America, HSBC
bank etc.

 Regional Rural Banks:

Regional Rural Banks (RRBs) are scheduled commercial banks

(Government banks) operating at regional level in different States of India.

They have been created with a view to serve primarily the rural areas of

India with basic banking and financial services. However, RRBs may have

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branches set up for urban operations and their area of operation may
include urban areas too.

EXECUTIVE SUMMARY

This project gave a great insight about the customer satisfaction level of
the users of different banks, and helped me in the proper indexing of
banks.

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The index will be done on the basis of data collected from individual
customers and the collected data will be thus used to create benchmarks
for major banks in India that provides services to customers. There are
many index measuring customer satisfaction and Indian Customer
Satisfaction Index is one of the main measure used for cross industry
benchmarking of organizations across banking sector

This project also helped to learn how to collect the data from customers
individually by requesting them to invest their precious time for the
questionnaire

CHAPTER 02:

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OBJECTIVE AND SCOPE

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 OBJECTIVE AND SCOPE

The objectives have been simplified and specifically designed to measure

the customer service level objectively for the service oriented banking
industry.

 To prepare an index to measure customer satisfaction level in any

operational unit based on certain parameters of customer service.
 To provide a analytical framework to quantify the level and extent
of the customer satisfaction level at different banks in a logical and
objective manner.
 To Evaluate the Quality of Service in Selected Bank.
 To identify the gap between customer expectation and perception
 To identify the areas that needs to improved by banks to deliver
superior quality of service.

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Page | 15
 CHAPTER 03 :

COMPANY PROFILE

Page | 16
 Company Profile.

Origin and progress:

With encouragement to the mobility of talent in the corporate world, the

retention of employees has become a challenge. Effective Selection,
Recruitment, and Retention Strategy hence determine business success.
To aid with this process of judicious selection, Datawise Consultants Pvt.
Ltd. was founded in 2001 by a team of HR professionals with rich
experience in their respective corporate careers. In the short span since
its inception the company has already carved a niche in the Indian
corporate HR services scenario.

Quick quality solutions :

The quality staffing solutions provided by Datawise are a result of its

careful attention towards an organized medium of functioning,
accountability towards delivery and its spirit of partnership towards both
clients as well as aspiring professionals.

Team Datawise relies on young and dedicated consultants who are

supported by the able guidance of senior consultants with specialized
skill sets and insightful market knowledge that caters to the growing
aspirations of fast paced organizations across the country.

Delivery on demand :

With its centralized delivery infrastructures headquartered

strategically in Noida and a widely networked BD and CRM team

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across India and the US, Datawise has created a systematic, client-
friendly operational module.

The USP of Datawise lies in its belief that the key factor in providing
quality service is the understanding of client and candidate needs to
facilitating a seamless match between client requirements and the
aspirations of candidates.

Services

Executive search services:

Middle to senior management recruitment solution is our forte. We have a large

granary of quality professionals that has been painfully built over the years
through the process of meticulous search. We therefore have a distinct
advantage of quick conversion. Pin point reference from respectable sources as
well as organized head hunting for talented professionals are routine process
delivery tools in Datawise. So, whenever you are looking for a high-quality
leader, or a functional expert, or the routine middle-manager, we know where
and how to find just the right person for you.

Turnkey Assignments:

Many a times special needs require exclusive attention. We therefore undertake

turnkey recruitment assignment on client's behalf. Entire recruitment process
including that of releasing and processing advertisement, if any is executed by
us. We first design and evolve a plan based on the understanding and need of
our client. Then we drive a process enabled by technology to achieve speed and
quality for implementing this plan efficiently. This helps us arrive at focus
choices within shortest possible time for a specifically tailored solution that suits
your need.

Outsourcing:

Outsourcing aids its clientele to supplement their organization

with temporary staff in order to replace employees who need to
take a long leave of absence, procure professional expertise
otherwise not obtainable in-house and outsource or contract
specific elements of major projects. These services can be
promptly provided by us, so that scheduled engagements can be
met quickly and economically. A fee will be charged for the
above-mentioned services on the basis of man-hours / man-days

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worked by the deputy.

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Human Resource services:

They conduct a range of Human Resource Services for our corporate

clientele, a few of which are mentioned below:
Design & implement Employee Induction
Training needs and assessment
Design Training Calendar
Design HR Policies & Manuals

IT Infrastructure support:

Many a times special needs require exclusive attention. We therefore

undertake turnkey recruitment assignment on clients behalf. Entire
recruitment process including that of releasing and processing
advertisement, if any is executed by us. We first design and evolve a plan
based on the understanding and need of our client. Then we drive a
process enabled by technology to achieve speed and quality for
implementing this plan efficiently. This helps us arrive at focus choices
within shortest possible time for a specifically tailored solution that suits
your need.

Here choosing a right partner plays an important role.

Right partner can help organisations in dealing with
dynamic requirements and rapid changes occurring in the
digital world.
Our services include following, spanning across all the
phases – Designing, Implementing,

Monitoring & L1 Support

Server Administration & Management
Network Management
Security Management
Database Management
Cloud Support
Project Management

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Monitoring and monitoring as a service:

24 X 7 monitoring for entire IT infrastructure

Extensive oversight across all layers of infrastructure
including software, network, storage, operating systems,
database middleware security and select applications
Dynamic Baselining / Thresholds
Event Correlation
Early Warning / Predictive Alerts
Probable Root Cause Analysis
Software updates, platform uptime
Integrated analytics, reporting and real-time alerts
Automated ‘first-cause’ analysis that group together related
alerts to provide a holistic view of any incident that occurs
Graphical representation of near real time as well as
historical data for management review
Capability to consolidate views as per business, application
or service models

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Clients:

Client Approach by Datawise has been purely on the basis of

professional merit, depth and domain expertise. As a
result Datawise has clientele including major multi-national
corporations and reputed Indian Business Houses.

BPO

Infosys
Genpact
Honeywell
Wipro
Global Vantedge
HCL
E-Funds
ICICI One
Source
Transworks
CFC Intl.
3G Global
Vertex

AUTOMOBILES &
MANUFACTURING
Moserbaer
Kohler
Maruti Udyog
GE-Healthcare
Grasim

BFSI

GE Money
HDFC Standard
Life
AVIVA Life
Insurance

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Page | 23
 CHAPTER 04:

RESEARCH METHODOLOGY

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 RESEARCH METHODOLOGY

What is research?

Research is a creative work undertaken on a systematic basis

in order to increase the stock of information, including knowledge of
humans, culture and society and use of knowledge to devise new
applications. Research is used to establish new facts and solve new or
existing problems. The primary purpose of research is discovery,
documentation and development of methods and systems for
enhancement of human knowledge.

Type of project research

Descriptive research involves collection of quantitative

information that can be tabulated in numerical forms. Descriptive
research involves gathering data that describes events, and then
organizes, tabulates, depicts and describes the data collection. It often
uses visual aids such as graphs and charts to aid the reader in
understanding the data distribution. Descriptive research design is
used to describe various aspects of the phenomenon. It also describes
the characteristics and behavior of sample population

DEFINITION OF RESEARCH METHODOLOGY:

 The process used to collect information and data for the
purpose of making business decisions. The methodology may
include publication research, interviews, surveys and other
research techniques, and could include both present and
historical information.

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 A system of methods used in a particular area of study or activi
ty.

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 RESEARCH DESIGN

Descriptive Research.
Descriptive research is used to obtain information concerning the
current status of the phenomena to describe ―what exists‖ with
respect to variables or conditions in a situation. Descriptive
research, also known as statistical research, describes data and
characteristics about the population or phenomenon being
studied. Descriptive research answers the questions who, what,
where, when and how. Although the data description is factual,
accurate and systematic, the research cannot describe what caused
a situation.

Analytical Research.
Analytical research takes descriptive research one stage further by
seeking to explain the reasons behind a particular occurrence by
discovering causal relationships. Once causal relationships have
been discovered, the search then shifts to factors that can be
changed (variables) in order to influence the chain of causality.

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QUESTIONNAIRE DESIGN

Questionnaire is the heart of the survey operation. This

was a structured close ended questionnaire, which had
been framed for conducting the survey. The
questionnaire was presented with exactly the same
wordings and in the same order to all of the respondents.

Sampling unit
The sampling unit for the study are the customers of different banks in
Pune.

Sources of Data

(I)Primary Data

The primary data used for this project was collected

using questionnaires. The information was collected
through a set of questionnaire from every customer.

(II)SECONDARY DATA

Secondary data about the company profile and

other details were collected from the company
website and through personal discussion with our
mentor.

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Data collected Method

The data is collected through close ended questionnaire.

(a)Sample Size:

 The sample size of the survey (N) is 133.


 Samples are collected from customers of different banks.


 The customers are randomly selected.

(b) Tools and Techniques:

For analyzing the data statistical tables, percentages,

age and Chart- diagrams are used.

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 CHAPTER 05:

DATA ANALYSIS

Page | 30
 DATA ANALYSIS

1. Total income of customers in last 12 months:

50
45 43

40
35 31
30 26
25
20 18

15
9
10 6
5
0
<2 Lakhs 2-6 lakhs 6-12 lakhs 12-24 lakhs 24-48 lakhs over 48 lakhs

Series 1

< 2 lakhs 43
2-6 lakhs 31
6-12 lakhs 26
12-24 lakhs 18
24-48 lakhs 9
Over 48 lakhs 6
Interpretation:

It can be seen the customers which were questioned were mainly from
the income range of less than Rs 2 lakhs followed by between 2 and 6
lakhs and so forth.

This may be due to the low income range of the people in current
scenario and it is also observed that many of customers does not want
to reveal their original income.

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2. Primary sources of incomes of the customers:

Income
80 67
70
60
50
40
30 21
16 16
20 9
10 4
0
Salary Farming Employed Employed Retail Rental income Others
professional or or Wholsale trade
personal service

Income

Salary 67
Farming 4
Employed 21
professional or
personal service
Employed Retail 16
or Wholesale trade
Rental income 9
Others 16
Interpretation:

It has been observed while collecting the primary data from the
customers on the basis of Random Sampling method,

 50.37 % of the customers belonged to salary background,

whereas;

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  15.78% were from employed professional or personal service
background followed by the customers from employed retail or
wholesale trade and Other professional background at12.03%.
 Customers whose incomes were based on rental incomes were
at 6.7% of the total sample size, and the smallest contribution
of the customers from the farming background were at 3%

3. Number of accounts of the customers:

Number of accounts

11

33

89

1 2 3 or more

1 89 67%
2 33 25%
3 or 11 8%
more
Interpretation:

During the random sample survey, most of the customers which were
selected randomly for the questionnaire were having only 1 bank
account.

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This may be because of most of the customers who are part of sample
are from salary background.

Customers having 3 or more bank accounts were mainly from

Employed retail or wholesale trade.

4. Net worth of customers involved in Random Sampling:

Net worth

7 28
14

32

52

<5 lakhs 5-20 lakhs 20-50 lakhs 50 lakhs-1 crore 1 crore and above

<5lakhs 28 21%
5-20 lakhs 52 39%
20-50 32 24%
lakhs
50 lakhs-1 14 11%

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 crore
1 crore and 7 5%
above

Interpretation:

 It has been observed that most of the customer’s net worth

across all bank deposits, investments and real property held
lies between Rs. 5 to 20 lakhs.
 32 customers were part of the sample size whose net worth
were between Rs. 20 to 50 lakhs.
 14 Customers whose net worth were between Rs 50 lakhs to 1
crore, 7 customers whose net worth were between 1 crore and
above and 28 customers whose net worth were less Rs.5 lakhs
contributed in the sample.

5 .Customers of a particular bank:

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 Customers of a particular bank
IDBI 9
Axis bank 17
HDFC bank 7
CBI 3
ICICI bank 13
Canara bank 3
BoB 6
BoI 16
PNB 12
SBI 47

0 5 10 15 20 25 30 35 40 45 50

Customers of a particular bank

Interpretation:

According to the primary data collected with a sample size of 133

randoms samples 47 customers are of State Bank of India, 17 are of
Axis bank 16 are of Bank of India, followed by 13 customers of ICICI
bank, 12 of Punjab National Bank, whereas 9 customers were of IDBI
bank ,7 were of HDFC bank,6 were of Bank of Baroda, and only 6
customers were from Central Bank of India and Canara bank
respectively.

6. Rating of factors at most frequently used banks:

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 70
59 56
60 53
48
50
40 36
29 27 28 29 26 28
30 25 24 22 22
21 19
16 14 14 16 17 15
20 12
9
10
0
Knowledge and Accebility Fees charged Ease of usage Time taken for
information shared transactions

1 2 3 4 5

[Rating matrix 1- Highly dissatisfied, 2- Dissatisfied, 3- Neither

satisfied nor dissatisfied, 4-Satisfied, 5 –Highly satisfied]

Interpretation:

Knowledge and information shared:

 16 of the customers were highly dissatisfied, 21 were dissatisfied,

53 were neither satisfied nor dissatisfied, 29 were satisfied and 14
were highly satisfied.

Accesibility:

 27 of the customers were highly dissatisfied, 48 were dissatisfied,

28 were neither satisfied nor dissatisfied, 14 were satisfied and 16
were highly satisfied.

Fees charged:

 29 of the customers were highly dissatisfied, 25 were dissatisfied,

24 were neither satisfied nor dissatisfied, 36 were satisfied and 19
were highly satisfied.

Ease of usage:

 22 of the customers were highly dissatisfied, 59 were dissatisfied,

26 were neither satisfied nor dissatisfied, 17 were satisfied and 9
were highly satisfied.

Time taken for transactions:

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  12 of the customers were highly dissatisfied, 56 were dissatisfied,
28 were neither satisfied nor dissatisfied, 22 were satisfied and 15
were highly satisfied.

7. Frequency of following transactions by customers:

Frequency of usage of following Transactions.

76
80
65 68
70 61 63
No. of Transactions

56 57 54 54
60 53 50 53 51
46 48 48 4645 49 46
50 41
37
40 32 30
26 26
30 20 17 20 17 14
20 10 13 12 12 9
10 30 20 5 30
0 0 10 0 1 10 00 00
0

Transactions

once or less frquently a month 2 to 4 times a month 5 to 10 times a month

11 to 20 times a month more than 20 times a month

Interpretation:
During the collection of primary data from the customers involved in
random sampling method, it is observed that customers uses facilities
like cash deposit, cash withdrawal, transfer of funds and cheque
deposits the most.

Whereas, facilities like Tax and other govt. payments , passbook

update and opening of fixed deposits are not so frequent in use of
customers.

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8. Number of times customers visit their branch in a typical
month:

0 19
14%
1 to 4 77
58%
5 to 8 24
18%
9 to 9
12 7%
12 to 4
15 3%

Interpretation:

It has been observed while collecting the primary data, as almost all
the transaction and activites happening in a typical bank branch is

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 being automated, people usually don’t prefer to visit the branch

Satisfaction level for the following parameters.

120 104
Level of Satisfaction

100 87
69 71
80
55
60 46
29 30 32
40 23 23
16 15 13
20 8 3 8 10 3 4 3
0 1 0 2
0
Ease to reach Level of Friendliness of Fees charged Promptness of
the bank branch knowledge of the bank staff for the the bank staff
the bank staff transaction to address
issues
Parameters

Highly Dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Highly satisfied

personally.

It can be seen in the above analysis that most of the customers visit
their branch in a typical month between 1-4.

9. Satisfaction level of customers :

Interpretation:

 Ease to reach the bank branch:

Majority of the customers involved in the sample were satisfied
with the ease of reaching their respective bank branch.
 Level of knowledge of bank staff:
It is observed that most of the customers were satisfied with
level of knowledge of the bank’s staff, whereas some the
customers were dissatisfied also.
 Friendliness of the staff:

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 It can be seen in the analysis that majority of the customers

Satisfaction level at most frequently used bank's ATM

100
90
90 86
80
80 72
70
60 53
50 42
40 35
30 32
30 23 24 25
16 18
20
11
10 4 6
2 3 1 2
0 0 0 0
0
Ease of reaching the Availability of Ease with which you Fees charged for the Time consumed for
most frequently used information and are able to complete transaction the transaction
bank's ATM interactivity your transcation

Highly dissatisfied Dissatisfied Neither satisfied nor dissatisfied Satisfied Highly satisfied

were neither satisfied nor dissatisfied with friendliness of the

staff.
 Fees charged for the transactions:
65% of the customers were satisfied with the fees charged for
transaction by the banks.
 Promptness of the bank staff:
53% of the customers were satisfied with the promptness of the
bank staff in addressing the issues.

10. Satisfaction level of customers at most frequently used

bank’s ATM:

Interpretation:
It is observed in the analysis that majority of the customers
were satisfied with the transactions at their most frequently
bank’s ATM,

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 Whereas, it is also observed that many of the customers were
neither satisfied nor dissatisfied due to non- working of their
respective bank’s ATM.

11. Customers using internet banking:

Customer using Internet Banking.

39, 29%

94, 71%

Yes No

Interpretation:

Yes 94
No 39

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As the banking sector is entering into a new era, all the transactions
can be performed online in a efficient manner. Customers need not to
visit the branch to perform the basic transactions.

It has led to increase in number of customers using the internet

banking as it can be seen in the above analysis.

12. Overall satisfaction level of customers with the most

frequently used bank:

Overall satisfaction with the services of most frequently

used bank.

Highly satisfied 2

Satisfied 99

Neither satisfied nor dissatisfied 16

Dissatisfied 12

Highly dissatisfied 4

0 20 40 60 80 100

Neither satisfied
Highly dissatisfied Dissatisfied Satisfied Highly satisfied
nor dissatisfied
Series 1 4 12 16 99 2

Interpretation:

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It is observed in the analysis that:

 1% of the customers were overall highly satisfied with the

services of their most frequently bank,
 75 % of the customer were overall satisfied,
 12% of the customers were neither satisfied nor dissatisfied,
 9% of the customers were overall dissatisfied with the services
of their respective banks, and
 3% of the customers were overall highly dissatisfied.

CHAPTER 06:

FINDINGS AND

OBSERVATIONS

Page | 44
 FINDINGS AND OBSERVATIONS

Till now, consideration of customer service has focused only on employee motivation
and delivery of services. However, even a well-defined defect-free service can fail,
if they do not fit customer's perception of quality or appropriate level of expectation.
In this connection, Customer Satisfaction Index measured in terms of customers
own feelings and perceptions will be need of the hour to arrest further deterioration of
banker-customer relationships.
With this background we put forth the followings important concluding remarks as
derived from the present study.
 While individual Banks on their own or through Government initiative,
have made several attempts at gauging the status of customer service, this
is the first time that a study has been attempted to quantify or measure
the satisfaction level, a subjective factor, to disclose the satisfaction
level derived by a vast number of customers about the standard of service
provided by a Branch.
 Despite subjective factors, it is possible for the customers to respond about
the satisfaction level they realize while banking with a branch or even
individual services provided by a branch.
 The survey and data collection work involved should preferably be
entrusted to an outside independent agency, specially hired for this purpose
to inculcate objectivity and impartiality. This has also been clearly
stated in the Memorandum of Understanding (MoU) earlier signed by
several Banks with RBI. In this connection, it is better to have large size
random samples of customers which would reflect the true state of customer
service as delivered by the bank branches.

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 By collecting and analyzing internal data and monitoring available
information through appropriate questionnaire, now any bank can
prepare stable Customer Satisfaction Index and compare the ratings of its
customer satisfaction level with that of other bank or organisations, if
only all of them have followed the same methodology

 For rendering first class services and delivery system in order to meet the
customer needs, it is necessary to continually assess and reassess how
customers perceive bank services through appropriate levels, even though
it may cost money and time for a Bank. In the long run it will pay-off in a
substantial way through more of profit and goodwill for the banks.

 Presently, in most of the commercial Banks, the product range and contents
are almost uniform, and service is the only way to create a product
differentiation. So, if the banks really desire to be distinguished from each
others, then more than anything else, measurement of customer service
should become a business obsession for the banks.

CHAPTER 07:

SUGGESTIONS AND
RECOMMENDATIONS

Page | 46
 SUGGESTIONS AND RECOMMENDATIONS

 A radical transformation of attitude right from top management to

ground level employees is the first step towards improving
customer service. The challenge forthe banking industry is to
develop the right kind of attitude to render excellent service.
Perhaps it may be easier to identify the elements of unacceptable
behaviour and try to redress and improve the situation. The
behaviour standards, especially of the front-line managers are need
to be radically oriented and transferred as per the requirements of
the business;
 As we move towards introducing global best practices in banking,
an important element in the area of customer care is the special
focus which students, senior citizens, physically challenged
persons, vulnerable sections of the population and other deprived
citizens must get from the financial services industry. These
initiatives need to be codified and their implementation monitored
by designated compliance officers.
 Electronic fund transfers, internet based banking transactions and
card banking are on the rise and are throwing up challenges one
might not have anticipated. The banking agreement is so worded as
to afford no right to the customer and is extremely lopsided. Banks
are not responsible for any unauthorized transactions even if by
their employees. Making networks safe and sound is the
responsibility of banks, and there must be in place a code of
conduct for addressing issues in the non-face-to-face transactions
domain.
 The issue of selling third party products such as insurance, capital
markets products like mutual funds, etc. is becoming increasingly
relevant from a customer protection point of view. Now question
arises, whether the customers especially those small and poor
understand what is being sold to them. Therefore, it is the duty of
the bank official to appraise the customers properly about the risk
factor in the products before any attempt made to sell these
products to them.
 At a time when all banks are in a hurry to be one up on the other, at
least in the matter of advertising speedier sanction of loans,
responsible lending is worth considering. No doubt, people should
take responsibility for their own borrowing and anything that could
limit people's economic freedom should be considered with

Page | 47
caution. But the customer service code currently side-steps the
issue by leaving the onus for responsible lending as whatever the
banks "believe" the borrower can pay back.

Page | 48
CHAPTER 08:

CONCLUSION

Page | 49
 CONCLUSION

Till now, conderation of customer service has focused only on employee

motivation and delivery of services. However, even a well defined defect-free
service can fail, if they do not fit customer's perception of quality or appropriate
level of expectation. In this connection, Customer Satisfaction Index measured in
terms of customers own feelings and perceptions will be need of the hour to arrest
further deterioration of banker-customer relationships.
With this background we put forth the following important concluding remarks as
derived from the present study.
While individual Banks on their own or through Government initiative, have made
several attempts at gauging the status of customer service, this is the first time that a
study has been attempted to quantify or measure the satisfaction level, a
subjective factor, through construction of CSI model
For rendering first class services and delivery system in order to meet the customer
needs, it is necessary to continually assess and reassess how customers perceive
bank services through construction of CSI at appropriate levels, even though it may
cost money and time for a Bank. In the long run it will pay-off in a substantial way
through more of profit and goodwill.

The level of CSI can act as an early warning system to detect service quality
problems. As the scope of the CSI models attempted in the present study can
be enhanced to incorporate service specific index such as Deposit Service Index
(DS!). Credit Specific Index (Cr. SI) etc., an early detection of defects at a
particular Branch may help in improving quality service at the shortest possible
time. In short, Banks with strong CSI can broaden their base more easily to deliver
better quality service and increase its business manifold.

In the ultimate analysis, the purpose of any CSI will be really meaningful, if the
Banks can organize a service system, which matches habits of the customers, take
decisions to serve the customer better and improve upon on the basis of feedback
received through these models. CSI have the quality to arrest the present trend of
deteriorating customer service and ushering an era of qualitative standard service, thereby
improving the image of the Banks considerably.

Customer service will not improve only by regulatory directives but will
improve when banks genuinely feel for the customers and treat the customers as
king. This task can partly be achieved by leveraging appropriate technology. But
mere adoption of technology may not deliver the goods unless it is accompanied by
the will and desire to render service to the "customer" who truly is the purpose of
any business.

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Page | 51
 CHAPTER 9:

REFERENCES AND
BIBLIOGRAPHY

Page | 52
 REFERENCES/BIBLIOGRAPHY

 www.ibef.org
 www.researchgate.net
 www.times4education.com
 www.datawiseindia.com

Page | 53
Questtionaires:

Q1) What was you total income in the last 12 months?

a) < 2 Lakhs
b) 2-6 Lakhs
c) 6-12 Lakhs
d) 12-24 Lakhs
e) 24-48 Lakhs
f) Over 48 Lakhs

Q2) What is the primary source of your income?

a) Salary
b) Farming
c) Employed professional or Personal service
d) Employed Retail or Wholesale trade
e) Rental income
f) Others

Q3) How many bank accounts do you have?

a) 1
b) 2
c) 3 or more

Q4) What is your net worth across all bank deposits, investments and
real property held?

a) <5 Lakhs
b) 5-20 Lakhs
c) 20-50 Lakhs
d) 50 lakhs-1 Crore
e) 1 crore and above

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Q5) In which bank do you have savings account?

a) State Bank of India

b) Punjab National Bank
c) Bank of India
d) Bank of Baroda
e) Canara Bank
f) ICICI Bank
g) Central Bank of India
h) HDFC Bank
i) Axis Bank
j) IDBI Bank

Q6) As per your usage and need, rate the importance of all the
following factors out of 5 at most frequently used bank (Rating
matrix- 5 being the Highly Important and 1 being the Least
Inportant)

a) Knowledge & Information shared O O O O O

b) Accessibility O O O O O
c) Fees Charged O O O O O
d) Ease of usage O O O O O
e) Time taken for transiction O O O O O

Page | 55
Q7) Rate the frequency of usage of the following transactions at most
frequently used bank. Rating Matrix-[1-once a month or less
frequently,2- 2 to 4 times a month,3- 5 to 10 times a month,4- 11 to 20
times a month,5- More than 20 times a month]

a) Cash Deposit O O O O O
b) Cash Withdrawals O O O O O
c) Bill Payments O O O O O
d) Cheque Deposit O O O O O
e) Salary/Pension Credit O O O O O
f) Loan Payments O O O O O
g) Passbook Update O O O O O
h) Transfer Funds O O O O O
i) Open Fixed Deposits O O O O O
j) Make Tax or Other Govt Payments O O O O O
k) Other Inquiries O O O O O

Q8) How many times in a typical month do you visit your banks
branch?

a) 0
b) 1-4
c) 5-8
d) 9-12
e) 12-15
f) >15

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Q9) Rate your satisfaction level for the following parameters. Rating
Matrix[1-Highly dissatisfied,2-Dissatisfies,3-Neither satisfied nor
dissatisfied,4-satisfied,5-Highly satisfied]

a) Ease to reach the bank branch O O O O O

b) Level of knowledge of the banks staff O O O O O
c) Friendliness of the bank staff O O O O O
d) Fees charged for the transactions O O O O O
e) Promptness of the banks staff O O O O O

Q10) Rate your satisfaction level with the transactions at most used
bank ATM for following parameters. Ratin Matrix-[1-Highly
Dissatisfied,2-Dissatisfied,3-Neither satisfied nor dissatisfied,4-
Satisfied,5-Highly satisfied]

a) Ease with you are able to reach the ATM O O O O O

b) Availability of information and interactivity O O O O O
c) Ease with you are able to complete transaction O O O O O
d) Fees charged for transaction O O O O O
e) Time Consumed for transaction O O O O O

Q11) Do you use Internet Banking?

a) Yes
b) No

Q12) How satisfied are you overall with the services of most
frequently used bank?

a) Highly dissatisfied
b) Dissatisfied
c) Neither satisfied nor dissatisfied
d) Satisfied
e) Highly satisfied

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Page | 58