SUMMER TRAINING REPORT ON

COMPARITIVE ANALYSIS OF LIABILITIES PRODUCTS OF DHANLAXMI BANK TO VARIOUS OTHER BANKS

SUBMITTED TO: Mrs. Sonika Gargi Faculty of Finance AIT-School of Management

SUBMITTED BY:Vikas Varshney Roll No: - MBF201021 PGDM (B&F)

APEEJAY INSTITUTE OF TECHNOLOGY, SCHOOL OF MANAGEMENT GREATER NOIDA.

DIRECTORS CERTIFICATE

This

is

to

certify

that

research

project

title

COMPARITIVE

ANALYSIS OF LIABILITIES PRODUCT OF DHANLAXMI BANK TO VARIOUS OTHER BANKS is carried by of PGDM 3rd trimester (Banking Greater Noida under Director. & Management, BAJPAI, the VIKAS VARSHNEY student at AIT of School of supervision Prof. D.N. Finance)

Executive

This is an original work carried out by the said student to the best of my knowledge and I recommended for the submission of this research project.

Prof. D.N. BAJPAI Executive Director AIT-School of Management Greater Noida.

FACULTY GUIDE CERTIFICATE

This is to certify that VIKAS VARSHNEY PGDM 3rd trimester student of Apeejay Institute of Technology, school of Management, Greater Noida has under gone summer training at DHANLAXMI BANK for a period of two months from 1st June 2011 to 30th July 2011. During the training period, the student worked on the summer project entitled COMPARITIVE DHANLAXMI ANALYSIS TO OF LIABILITIES VARIOUS PRODUCT which OF was

BANK

OTHER

BANKS

suggested and awarded by the Mr. VIPUL GUPTA (BRANCH MANAGER, LAJPAT NAGAR) in the subject area of MARKETING AND FINANCE The survey, data collection and analysis work for preparing the summer training project report has been carried out by the student in the partial fulfillment of the requirement for the award of Post Graduate Diploma in Management by Apeejay Institute of Technology, School of Management, Greater Noida, which is approved by All India Council of Technical Education AICTE, Government of India.

Mrs. Sonika Gargi Faculty, AIT-School of Management Greater Noida.

ACKNOWLEDGEMENT
I would like to express my sincere thanks to the management of DHANLAXMI BANK who gave me the opportunity to work and study in such an esteemed organization. I express my thanks to MR. VIPUL GUPTA (Branch Manager, Lajpat Nagar) and MR. GAURAV GUPTA (Relationship Manager) of Dhanlaxmi Bank. Company under whose constant guidance I completed my project. I thanks to my parents who has supported me in building my carrier. I also express my gratitude to MRS. SONIKA GARGI (Faculty Guide). Last but not the least, I would like to thank all the respondents for giving their precious time and relevant information and experience, I required, without which the project would have been incomplete.

VIKAS VARSHNEY

STUDENT DECLARATION

I hereby certify that the data collection and analysis work related to summer training project report on COMPARITIVE ANALYSIS OF LIABILITIES PRODUCTS TO DHANLAXMI BANK TO OTHER VARIOUS BANKS has been carried out exclusively on my effort under the guidance of Mr. Gaurav Gupta, along the guidance of AIT School of Management.

VIKAS VARSHNEY PGDM (BANKING & FINANCE) AIT- School of Management, Greater Noida.

CONTENTS
Page no. Executive summary 1. Introduction 1.1 Company profile 1.2 A word about the competitors 2. Review of literature 3. Objectives 4. Scope 5. Methodology 5.1 Sample 5.2 Research instrument 17 19 20 21 21 22 4 5 11 1

6. Data collection & interpretation 6.1.1 Comparative analysis of Dhanlaxmi salary accounts. 6.1.2 Comparison of Dhanlaxmi savings account with

23 34 42

other banks. 6.1.3 Comparison of Dhanlaxmi current account with other banks. 6.2.1 SERVE QUAL results 6.2.2 Formulation of Hypothesiss 6.3 SWOT analysis 76 79 80 82 83 84 87 60 66 50

7. Conclusion 8. Recommendation 9. Limitation References Annexure Abbreviations

EXECUTIVE SUMMARY
It can be seen in the present scenario of banking sector i.e. post recession period that strong market players are striving to uncover market potentials and provide all services, combining innovation, quality, personal touch and flexibility in delivery so as to attract customers . The growing competition with in the nationalised banks, private banks and the foreign players are increasing the expectations of the customers like the catalyst. In such a scenario the customer would continue to be the centrepoint of the business strategy. In short, you lose touch with the customer, and you lose everything. In middle of this post recession period certain events had such happened that equilibrium had once again shifted to nationalized banks, so private bankers are trying to build up on their competencies & coming up with new innovative products to regain their previous customers as well come up with new opportunities & rectification of old mistakes. Keeping in view such stiff competition, its a miniscule effort from my side under which I have tried to fulfil the following objectives: A complete comparative analysis of the salary account of DHANLAXMI Bank. To compare the features offered by the savings account of DHANLAXMI Bank with those offered by the others.

To compare the features offered by the current account of DHANLAXMI Bank with those offered by the others.

To study the service quality of DHANLAXMI Banks salary account.

 To do a SWOT analysis of DHANLAXMI Bank. For the comparison I have visited some of the banks and used the internet for the data; while to measure the service quality I have conducted a survey for the customers of Dhanlaxmi Bank and collected data from them. And based on this I have done the SWOT analysis. The findings of the research lead to following conclusion: 1. Dhanlaxmi Bank has a strong brand association in Kerala since 1927. But so far the bank has not been able to establish it self so well here, in the minds of people here in Delhi, unlike its competitors. 2. The bank is facing the problem of being unpopular due to lack of its branches and ATMs are not in sufficient numbers all over India. 3. Even in the comparative analysis it was found that most of the product features are almost the same, rather in some instances Dhanlaxmi Bank is superior for e.g.:i) It offers PAP cheque books to its customers where as other banks dont. ii) It offers 2 free DD/PO to its customers where as banks like standard chartered dont. iii) It opens the salary accounts even at lower averages where as other banks are stringent in this respect. 5. Similarly in some cases some features of other banks are superior, for e.g.:-

i) YES bank gives unlimited ATM transactions with its partner banks to all of its customers where as it offers only to orange customers. ii) ICICI facilitates immediate transfer of funds which is not the case with Dhan Laxmi Bank. iii) Customers also complain about its late salary transfer.

1. INTRODUCTION

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala by a group of ambitious and enterprising entrepreneurs. It is running with good progress in Kerala from last 84 years and started his business in Delhi in 1998. Dhanlaxmi Bank with its rich heritage has earned the trust and goodwill of clients in many parts of India and trying to do so in Delhi. It is due to his strong belief in the need to seek innovation, deliver best service and demonstrate responsibility, which they have grown from strength to strength. Be it in the number of customers, the scale of business, the breadth of their product offerings, the banking experience they offer or the trust that people invest in them. With more than 730 touch points across India at our service; their focus has always been on customizing services and personalizing relations. Because Dhanlaxmi Bank is growing there business in Delhi, so the bank is making all its efforts to compete with its competitors in the best possible way. In its retail banking I got this opportunity to work and do the comparative analysis of the liabilities products of the bank and measure its service quality, the reason I was given this project was the newness of the bank and hence its necessity to be aware of where it stands as compared to its competitors, how its products differ from its competitors, and how is it perceived by its competitors. To measure this perception I used the SERVE QUAL tool and surveyed its competitors. As suggested by the faculty guide I compared its features with other banks namely; ICICI, HDFC, Yes bank, ABN Amro, ING Vysa bank and

Standard Chartered bank, to increase the knowledge about all the products and enhance my learning. Finally I also did an over all SWOT analysis on the basis of data that I collected and knowledge of the present scenario that I gathered during my summer internship about the banking sector.

1.1COMPANY PROFILE

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala by a group of ambitious and enterprising entrepreneurs. It is running with good progress in Kerala from last 84 years and started his business in Delhi in 1998. Dhanlaxmi Bank with its rich heritage has earned the trust and goodwill of clients in many parts of India and trying to do so in Delhi. It is due to his strong belief in the need to seek innovation, deliver best service and demonstrate responsibility, which they have grown from strength to strength. Be it in the number of customers, the scale of business, the breadth of their product offerings, the banking experience they offer or the trust that people invest in them. With more than 730 touch points across India at our service; their focus has always been on customizing services and personalizing relations.

Vision & Mission

"To become a strong and innovative bank with integrity and social responsibility and to maximize customer satisfaction and the satisfaction of its employees, shareholders and the community."

Achievements, Affiliations and Milestones

Achievements

Serviced business `21,595 crores as on 31 March 2011, comprising deposits `12,530 crores and advances `9,065 crores.

Earned a net profit of `26.1 crores for the financial year ended 31st March 2011, with a capital adequacy ratio of 11.8% (Basel II) during the same period.

Put in place the Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems to facilitate large value payments and settlements online in real time, on a transaction-bytransaction basis.

Set up NRI Boutiques (Relationship Centers) across nine locations in Kerala and Tamil Nadu, with plans to open specialized NRI outlets at potential locations with emphasis on impeccable service levels.

Bank is a major player in micro credit in Kerala and the Bank's outstanding under micro credit was `266 crores at the end of March 2011.

Attained ISO 9001-2000 certification for the Bank's corporate office at Thrissur and industrial finance branch at Kochi.

Started his business in Delhi in 2007.

Affiliations
Major Exchange Houses 1. UAE Exchange Centre LLC
2. Al Ahalia Money Exchange Bureau

Foreign Correspondent Banks

1. Deutsche Bank Trust Company Americas.

2. Wachovia Bank NA- A Wells Fargo Company. 3. Commerz bank AG. 4. National West Minister Bank PLC.

Insurance Partner
1. Bajaj Allianz.

Milestones
1927 - Founded on 14 November, 1927, at Thrissur, Kerala 1975 - Set up the first branch outside the home state of Kerala, at Chennai Mount Road 1977 - Designated as Scheduled Commercial Bank by the Reserve Bank of India (RBI)

1980 - 100-strong branch network 1986 - Total business of `100 crores 1996 - First public issue. Total business of `1,000 crores 2000 - Installed the first ATM 2002 - First Rights Issue

2002 - Platinum Jubilee year 2007 - Total business of `5,000 crores. 80th Anniversary year 2008 - Total business of `7,500 crores. Second Rights Issue 2009 - Opened 45 new branches and 102 new ATMs 2010 - Raised `381 crores through QIP in July 2010, Opened 20 new branches and 280 new ATMs, launched new brand identity; created platform for a unified image

2011- Launched its 275th branch in Jan 2011; ATM network expanded to 456, Total asset base for the bank was `14,268 crore, as on 31.03.2011.

Partnerships
The Dhanlaxmi Bank has an agreement with Bajaj Alliance Insurance Company Ltd, as their corporate agent. The bank is also a depository participant of NSDL (National Security Depository Limited) offering Demat services through select branches. Bank is offering Online trading in association with Desti money securities. It has partnered AGS Infotech for installation of ATMs. It offers VISA branded debit and credit cards to customers.

Credit cards
In March, 2010, the bank launched Dhanlaxmi Bank Platinum and Gold Credit cards. The bank for the first time in India is introducing a Pay by Transaction billing mode for credit cards. Under this, instead of a monthly billing cycle, the interest-free credit period is considered for individual transactions from the day of purchase. A customer thus enjoys a 45-day

interest-free credit period on each purchase and does not need to time the purchase based on the billing cycle .And the service provider for credit card business is In solutions Global Pvt. Ltd (ISG), ISGs range of end to end solutions span debit card, credit card, web designing, issuance management, satellite solutions, acquiring management, payment & settlement management. ISG commenced operations in 1988, is a pioneer in the payment card industry in India. The company, headquarters in Mumbai, has become a commander & preferred solutions provider for bankers in India and Overseas.

ISG influence its domain knowledge in payment processing & skilled software development talent to specific compliance and other requirements of various types of organizations including Public Sector Banks, Private Banks, Foreign Banks, International Banks, Cooperative Banks and Non-Banking Finance Companies in world wide. ISG takes pride in building strategic long term relationships

Dhanlaxmi Bank has a portfolio of banking solutions and a range of offerings for people from all walks of life, with a view to making banking an effortless task. Whether you require a simple savings account or a sound banking partner, Dhanlaxmi Bank has the perfect solutions and products to ensure a wealthy future.

Savings Accounts
Out of the following one can choose the product suiting the most to their requirements and pockets. 1. Maxi Gain Platinum Savings Account. 2. Maxi Gain Supreme Savings Account. 3. Maxi Gain Classic Savings Account.
4. Dhanam + and ++ Savings Account.

5. Regular Savings Account. 6. Simple Savings Account.

Smart Salary Savings Account

Dhanlaxmi Bank is also giving the facility of salary account to corporate. Their salary account is named as Smart Salary Savings Account.

Current Accounts

Small, medium and large businesses alike will find that Dhanlaxmi Bank's current account offerings come with all the benefits needed to stay ahead of competition. Whatever the size or scope, one will find a current account option exclusively designed for him/her. 1. Maxi Gain Current Account. 2. Super Power. 3. Power. 4. Premium Current Account. 5. Suvidha. 6. Regular Current Account. My project revolves around these liability products, their comparison with similar products of other banks and study of service quality of the salary account.

1.2 A WORD ABOUT THE COMPETITORS ICICI BANK

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madurai Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a

development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

Today, ICICI Bank is India's second-largest bank with total assets of `3,793.01 billion at March 31, 2009 and profit after tax of `37.58 billion for fiscal 2009. ICICI Bank is the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation. The Bank has a network of about 1438 branches and 4,600 ATMs in India and presence in 19 countries.

ABN AMRO
On 29 March 1824 King Willem-I issued a royal decree creating the Nederlandsche Handel-Maatschappij with the aim of reviving trade between the Netherlands and the Dutch East Indies. In 1964, NHM merged with De Twentsche Bank to form Algemene Bank Nederland (ABN), while Amsterdamsche Bank and Rotterdamsche Bank joined to become Amsterdam-Rotterdam (Amro) Bank. In 1991, these two banks merged as ABN AMRO Bank. Today, ABN AMRO Bank has a powerful presence in world markets, building on a tradition of stimulating international trade. Today, with assets over US $504 billion and an AA credit rating, ABN AMRO Bank ranks among the top 10 banks in the world in size and strength. Our international network comprises 4500 branches and offices in over 320 cities and 76 countries and territories, with over 100,000

highly qualified staff. As a global bank, we can handle the most complicated cross-border transactions, yet we also understand the subtleties of local markets.

HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC was incorporated in 1977 with the primary objective of meeting a social need that of promoting home ownership by providing long term finance to households for their housing needs. It was promoted with an initial share capital of `100 million. HDFC is a professionally managed organization with a board of directors consisting of eminent persons who represent various fields including finance, taxation, construction and urban policy & development. The primary objective of HDFC is to enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. HDFC is ranked 3rd amongst the Asian banking and finance sector for highest return on equity by Asian money. Its main goal is to develop close relationships with individual households, maintain its position as the premier housing finance institution in the country, transform ideas into viable and creative solutions, and provides consistently high returns to shareholders & to grow through diversification. Its most valuable assets are its Human Resources and it is its constant endeavour to continuously develop them by laying strong emphasis on their Training & Development. HDFC main focus is on their

employees career development so that their aspirations can meet companys goals.

ING VYSYA BANK

ING Vysya Bank Ltd., is an entity formed with the coming together of Erst while, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002. The origin of the erstwhile Vysya Bank was pretty humble. It was in the year 1930 that a team of visionaries came together to found a bank that would extend a helping hand to those who weren't privileged enough to enjoy banking services. It is one of the oldest private sector banks offering banking products and services to retail and corporate customers. Its business has been organized into Retail Banking and Wholesale Banking. Its Retail Banking business comprises four business units namely Consumer Banking, Small and Medium Enterprises (SME) Agriculture and Social Banking Unit (ASBU) and Private Banking. Its banking products and services for retail customers include both loans and liabilities products and services. It offers a range of credit products including home loans, automobile loans, commercial vehicle loans, two wheeler loans, dealer financing, personal loans, debit cards, credit cards, loans against term deposits and loans against shares. It offers loans and fee-based services to small and medium enterprises. It finances agricultural activities and government-sponsored schemes. Its deposit products include demand deposits (savings and current accounts) and time deposits, with specific products for customers in various segments, like salary accounts, accounts for small and medium enterprises and non-resident Indian

accounts. Our other retail products and services include private banking, fund transfer facilities and utility bill payment services.

STANDARD CHARTERED BANK

The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa. In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales. From the early 90s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a bridge between these markets. Secondly, it would focus on consumer, corporate and institutional banking, and on the provision of treasury services areas in which the Group had particular strength and expertise. In the new millennium we acquired Grind lays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000.

The Chartered Bank opened its first overseas branch in India, at Kolkata, on 12 April 1858. Eight years later the Kolkata agent described the Bank's credit locally as splendid and its business as flourishing, particularly the substantial turnover in rice bills with the leading Arab firms. When The Chartered Bank first established itself in India, Kolkata was the most important commercial city, and was the centre of the jute and indigo trades. With the growth of the cotton trade and the opening of the Suez Canal in 1869, Bombay took over from Kolkata as India's main trade centre. Today the Bank's branches and sub-branches in India are directed and administered from Mumbai (Bombay) with Kolkata remaining an important trading and banking centre.

2. REVIEW OF LITERATURE

Measuring Service Quality in Banks: An Assessment of Service Quality Dimensions

Service quality has been viewed as a multi-dimensional construct in marketing literature. Parasuraman, Zenithal, and Berry (1988) have conceptualized a five dimensional model. The five dimensions are reliability, responsiveness, empathy, assurance and tangibility. Their measurement instrument SERVQUAL is based on the five dimensional model. Gronroos (1982) had identified two service quality dimensions functional quality and technical quality. Functional quality represents the perception of the manner in which the service is delivered. Technical quality on the other hand represents the outcome of the service act or what the customer receives in the end. Brady and Cronin (2001) term it as outcome quality. The five dimensional model of Parasuraman et al. which has become almost the standard way of measuring service quality, essentially captures the functional quality. There is more attention on the functional service quality, particularly in the more developed economies. But many products and services in the emerging markets compete at their expected product levels (Kotler, 2003). In some industries, the competition is at the basic product levels or core benefits. Market differentiation can be achieved through the way products and services are delivered; creating satisfying customer experiences about the company, employees and the delivery process; but this may not create the necessary competitive advantage for growth. Even in the business environments where the competition is at the augmented product level, it would be pertinent to know the relative strengths of industry specific aspects of what is offered versus how it is offered. Whether a below expectations service outcome is considered more important by customers or if an improper service delivery process and employee interaction is viewed more serious. Focus only on functional quality dimensions of service quality, therefore appears to be misplaced. Only a few studies have recently tried to empirically explore the outcome dimension of service quality (Kang and James 2004; Jain 2005). The present study fills

the gap and looks at the relative importance of service quality dimensions in the Indian banking sector. The study that was conducted had final sample consisting of 120 usable questionnaires. The primary data was collected by personally administering the questionnaire. Mean age, household income and education level of the sample is 29 years, `21, 000.00 and some college education respectively. Government service, private service and own business is represented by 25, 25 and26.5 percent of the participants. The sample had 91% male respondents. Nationalized banks represent 97% of the banks patronized by the participants. Data was collected in the month of JUNE 2011. Evidence of convergent validity was examined through simple correlation with the independently measured overall quality score. Corresponding correlations with independently measured overall value score were used for observing discriminant validity. It was found that the service quality dimensions had internal consistency; however outcome quality could not establish convergent validity and discriminant validity conclusively. The results buttress the multidimensional structure of service quality. Though some service quality dimensions are found to be similar to the ones posited in five dimensional model, the model as such is not supported in banking services. As expected, in the study, the functional quality dimensions of responsiveness, assurance, empathy and tangibles do not have much significance for customers. Results however do not supports the proposition that outcome quality dimension would emerge to be the important dimension. Reliability is found to be the vital dimension in customers perception of service quality. The findings of this study have important managerial implications. Customers regard reliability to be the most important dimension of services in banks. Reliability dimension is the descriptor of the functional quality and outcome quality (Brady and Cronin, 2001). This implies that

the banks should be able to perform what they purport to perform whether it is the functional quality aspect or the outcome quality aspect. Ignored in widely used measurement instruments, outcome quality features such as there should not be queues for withdrawals, making demand drafts etc have been found to be lagging behind the customers expectations and therefore warrant improvement. A moderate sample and a non parsimonious scale are some of the limitations of the study.

3. OBJECTIVE OF THE STUDY:

The objectives of the project are: To conduct comparative analysis of the Liabilities Products of Dhanlaxmi Banks with other competitive banks. To study the service quality of Dhanlaxmi Banks corporate salary account.

To conduct a SWOT analysis of Dhanlaxmi Bank.

4. SCOPE

The project is mainly concentrated on the comparative analysis of Dhanlaxmi Bank products with similar products of other banks namely ICICI Bank, HDFC Bank, ABN AMRO Bank, ING Vysa and YES Bank and SWOT analysis. It also includes the service quality delivered to and perceived by its customers using the servequal tool. This would help the bank to measure its standing as compared to its competitors and find out where it lacks and needs improvement. The survey conducted on its customers of liabilities products provided valuable information as, what features are liked by them and which are not, and what are the areas where they feel Dhanlaxmi Bank needs improvement. This exercise also made its customers feel that Dhanlaxmi Bank wants to improve and is looking forward to their feedback so in a way it helped in improving its relationship with its customers.

5. METHODOLOGY
1. For the comparative analysis of a. Salary account b. Savings account c. Current account

I visited the banks to meet bank personnel who could guide me about the various features offered by them as part of their liability products. 2. A well documented service quality model of Parasuram et.al.(1985) was used as a conceptual framework for measuring service quality in Dhan Laxmi Bank. Here the model has helped us to analyze the gap between the service quality expected by the management and its actual perception by the customer. 3. With the help of data so collected a SWOT analysis was done after visiting various banks, talking to various people through personal interviews.

5.1 SAMPLE
The sampling frame was provided by the bank from its data base out of which 6 companies were surveyed consisting of approximately 10 employees each. The study was conducted with the cooperation of the management and Dhanlaxmi Banks customers who took the valuable time out of their schedules to fill my questionnaire and give their feedback about Dhanlaxmi Bank services.

5.2 THE RESEARCH INSTRUMENT

The questionnaire used in this study followed the five basic dimensions of SERVEQUAL instrument developed by Parasuram. The instrument includes 7 items on special instruction from my industry guide because he wanted the questionnaire to be as short as possible so that the customers are not bothered much and they dont feel irritated while answering them. The customers and management were asked to mark their levels of perception and expectation respectively on a five-pointer scale. The gap hence found between the perception and expectation was administered consistently to find out the meaningful results. The questionnaire is given in the annexure.

6. DATA COLLECTION AND INTERPRETATION

For the first part which is the comparative analysis of liability products, data was collected by visiting the banks and finding on their respective websites. For the second part i.e. SERVE QUAL, primary data from 60 respondents was collected in 6 companies to measure the service quality gap. The number of respondents from the management side was 10, which were the part of corporate salary team. Personal interviews with some employees were also conducted to know the problems they encountered in detail. The response rate both at the companies I visited and at the bank was 100%. Reliability was tested using one way ANOVA to test whether any significant difference exist in the perceptions and expectations of customers and management respectively for all the parameters of SERVE QUAL model and are shown separately. And finally on the basis of the findings of the study a SWOT analysis was conducted.

The names of the companies from which the data was collected are given in appendix.

1. Given below are the features of different liability products offered by

Dhanlaxmi Bank and after ward their comparison with similar products of other banks namely ICICI Bank, HDFC Bank, ABN AMRO Bank, ING Vysya Bank and YES Bank.

a) SMART SALARY SAVINGS ACCOUNT

Basically this account is for the corporate employees. This account gives the benefit of salary account and savings account. The Smart Salary Savings Account bundles free services, security and convenience salary for employees and while providing easy and for convenient employers. deposit management processes

FEATURES:-

Free 5 NEFT & 5 RTGS from branch per month Free 2 Outstation cheques collection per month Free 2 Demand Drafts at bank location & 2 Demand Drafts free at Correspondent bank locations per month (covering more than 900 locations)

Free 2 Pay Orders per month Free 1 At Par Cheque Book per quarter

Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Free Anywhere Banking - unlimited non-cash transactions Door Step Banking facility Average Monthly Balance Nil

b) SAVINGS BANK ACCOUNT

1. Maxi Gain Platinum Savings Account

The Maxi Gain Platinum Savings Account comes with special features and privileges designed for preferred customers like you.

FEATURES

Sweep-in Sweep-out option available Free unlimited NEFT/RTGS from branch & net banking Free 1 At Par Cheque Book per quarter Free Cash deposit/withdrawal up to `2 lakh per day at non base branch

Free 5 Demand Drafts at bank location & 5 Demand Drafts free at Correspondence bank location per month (covering more than 900 locations)

Free 5 Pay Orders per month Free 2 Outstation cheques collection per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Higher limit of withdrawal through ATM & POS of `75,000/Free Anywhere Banking - unlimited non-cash transactions Free Door Step Banking Average Monthly Balance `25,000/-

2. Maxi Gain Supreme Savings Account

The Maxi Gain Supreme Savings Account provides a complete banking experience with a host of benefits.

FEATURES

Free 10 NEFT & 10 RTGS from branch per month Free Cash deposit/withdrawal up to `1 lakh per day at non base branch

Free 3 Demand Drafts at bank location & 2 Demand Drafts Free at Correspondent bank locations per month (covering more than 900 locations)

Free 3 Pay Orders per month Free 1 At Par Cheque Book per quarter Free 2 Outstation cheque collection per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Higher limit of withdrawal through ATM & POS of `50,000/Free Anywhere Banking - unlimited non-cash transactions Free Door Step Banking Average Monthly Balance `10,000/-

3. Maxi Gain Classic Savings Account: The unique feature of Maxi Gain Classic Savings Account is an Auto Sweep-in Sweep-out facility which maximizes your returns with easy liquidity. Above a certain limit your balances are transferred into a FD and can also be swept back to your account. Not only that, the lowest rate FD gets liquidated first to ensure maximum gains for you.

FEATURES

Convenience of Anywhere, Anytime Banking Free International VISA Debit Card Free Internet Banking Free Phone Banking and SMS Banking Free Quick remittance solution (NEFT / RTGS ) Free Demand Draft & Pay Orders Free Outstation Cheque Collection facility Free Payable- At- Par Cheque book

Average monthly balance `5,000.

4. Dhanam + and ++ Savings Account Dhanam+ & ++, combines the benefits of a term deposit with the flexibility and convenience of a savings bank account.

FEATURES

Flexible term deposits with interest reduction on premature closure Minimum deposit of `5,000 with subsequent multiples of `1,000 Free cheque book with a savings bank account or a certificate of deposit account Interest on eligible units paid on due date at prevailing term deposit rates of 46/91 days as per Income Tax Act provisions `500 minimum remittance amount from the fixed deposit; amounts in excess rounded off to the nearest `100 `500 minimum withdrawal by cheque only; amounts in excess rounded off to the nearest `100 No interest paid if deposit is closed within 15 days from the initial investment

5. Regular Savings Account The Regular Savings Account combines security and easy access through our pan-India branch network, seamless banking channels and access to the ATM networks of other banks.

FEATURES

Free 1 Payable at Par Cheque Book

Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Free Anywhere Banking - unlimited non-cash transactions Door Step Banking facility Average Monthly Balance `1,000/-

6. Simple Savings Account The Simple Savings Account is a zero-balance, no-frills account that simplifies banking for people seeking basic deposit and withdrawal facility.

FEATURES

Free cash withdrawal from any other banks ATM Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Free Anywhere Banking - unlimited non-cash transactions 5 Cash transactions free per month Average Monthly Balance Nil

CURRENT ACCOUNT

1. Maxi Gain Current Account

The Maxi Gain Current Account is designed to suit your business banking requirements. It offers multiple solutions that enable seamless transactions and helps you to mobilize funds faster with maximum

convenience. Packed with a host of powerful features like Auto Sweep-in & Sweep-out where lowest interest rate FD broken first, unmatched remittance services and anytime, anywhere banking, this account ensures that your money always keeps working for you.

FEATURES

Auto Sweep-in & Sweep-out - Lowest interest FD liquidated first Unmatched remittance services Anytime, anywhere banking Free Unlimited Cheque Collections at Bank Locations Free International Visa Debit Card (only for proprietorship) Free ATM withdrawal anywhere in the world Enhanced Limit for ATM withdrawal / POS purchases Free Door Step Banking, Internet Banking & SMS Banking Free Stop Payment facility Online Bill Payment through Dhanlaxmi Bank Instapay Average monthly balance `500,000

2. Super Power
The Super Power Current Account is designed for the elite customer like you to enjoy smooth flow of funds from multiple locations.

FEATURES

Free unlimited NEFT/RTGS from branch & net banking Free Cash deposit up to `2 lakh & withdrawal up to `5 lakh per day at non base branch Free Outstation cheque collection at Dhanlaxmi Bank locations

Free unlimited Demand Drafts at bank location & 10 Demand Drafts free at Correspondent bank locations per month (covering more than 900 locations)

Free 25 Pay Orders per month Free 4 payable at par Cheque Books per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Higher limit of withdrawal through ATM & POS of `1,00,000/Free Anywhere Banking - unlimited non-cash transactions Free 3 stop payment requests per month Free Door Step Banking Average Monthly Balance `3,00,000/-

3. Power
The Power Current Account is ideal where you can manage your finances across different locations with just a single account.

FEATURES

Free 20 Demand Drafts at bank locations & 5 Demand Drafts free at Correspondent bank location per month (covering more than 900 locations)

Free 20 Pay Orders per month Free cash withdrawal up to `1 lakh per day at non base branch Free 15 NEFT & 15 RTGS from branch per month Acceptance of outstation cheques for collection at any branch Free 1 payable at par Cheque Book per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Higher limit of withdrawal through ATM & POS of `50,000/Free Anywhere Banking - unlimited non-cash transactions

Free Door Step Banking Average Monthly Balance `50,000/-

4. Premium Current Account

An efficient current account is crucial to the growth of every evolving business. It needs to be robust and at the same time flexible, to support your growth as your business expands. At Dhanlaxmi Bank we understand these demands on your business and have designed a current account that addresses your needs comprehensively. The Premium Current Account is built with the host of powerful features and requires an average monthly balance of `20,000 only. So your plans can take flight with greater ease.

FEATURES

Unlimited NEFT/RTGS Free from net banking 10 NEFT/RTGS Free from branch & net banking Free Cash deposit & withdrawal up to `50,000 per day at non base branch Outstation cheque collection at Dhanlaxmi Bank locations 10 Demand Drafts free at bank location & 2 Demand Drafts free at Correspondent bank locations per month (covering more than 900 locations)

Free 1 payable at par Cheque Books per Quarter Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Higher limit of withdrawal through ATM & POS of `50,000/Free Anywhere Banking - unlimited non-cash transactions Door Step Banking

Average Monthly Balance `20,000/-

5. Suvidha

The Suvidha Current Account is a zero-balance account that provides complete operational flexibility for everyday business transactions.

FEATURES

Free 10 NEFT & 10 RTGS from branch per month Free 1 'payable at par' Cheque book Free 10 DDs & 10 POs per month Acceptance of outstation cheques for collection at any branch. Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Free Anywhere Banking - unlimited non-cash transactions Door Step Banking facility Average Monthly Balance Nil

Terms and Conditions:

25 free transactions (any combination of the following) each month:

Issue / Cancellation / Revalidation / Duplicate Demand Drafts / Pay Orders of `1 lakh or above Payments through RTGS and NEFT

Upfront charges of `2,400 per annum, collected at the time of opening the account No carry-forward of unused free transactions to subsequent months Nominal charges for transactions above the stipulated 25 free transactions

6. Regular Current Account

The Regular Current Account makes everyday banking for your business simple and hassle-free through features such as 24-hour account access and easy tracking of funds.

FEATURES

Free Debit Card giving access to Dhanlaxmi Bank & Partner bank ATMs Free Anywhere Banking - unlimited non-cash transactions Acceptance of outstation cheques for collection at any branch Door Step Banking facility Average Monthly Balance `5,000/-

COMPARATIVE ANALYSIS

6.1.1 Comparative analysis of Dhanlaxmi Banks salary account features with other banks. I) DHANLAXMI BANK V/S ICICI

FEATURES
Min balance to be Maintained ATM card Internet banking Mobile banking Online transfer funds Reimbursement account Cash delivery and

DHANLAXMI BANK
Zero

ICICI
Zero

Free of cost to every Free of cost to every account holder Available Available of Available Not Available Available account holder Available Available Available Available Available withdrawal `5 per to is

cheque pick up facility Cash withdrawal Free up to `50,000 per First charges from ATM day at

free rest are charged 1000 of subject min.

Debit

card

fees

for Free 1 Cheque book free

`150 `99 per annum (20 `2 per leaf for every per account holder

joint account holder Issue of PAP cheque Books

leaves) thereafter

quarter, `2 per leaf

*Reimbursement account:

If you opt to disburse/reimburse the travel, food etc. expenses via reimbursement accounts, a reimbursement account can be opened simultaneously along with the Salary Account savings bank account, which would be linked together with the debit card already held by your employee. Though features of both the banks are almost similar but the repute enjoyed by ICICI is commendable. The reason for this could be the time span by which ICICI came earlier and cashed on the opportunity of establishing it self in all the spheres. Other reasons could be: 1. Wide network of its branches and ATMs all over India, which makes it reliable. 2. Strong brand recognition in the minds of people. 3. A positive point with Dhanlaxmi Bank is that it offers free PAP cheque books to all of its salary account holders where as it is chargeable in case of other banks. 4. While talking to some customers of ICICI they complained about some hidden charges, which they said they never mentioned in the beginning (though they refused to disclose what these charges were.)

II) DHANLAXMI BANK V/S HDFC

HDFC, one of the very popular brands in terms of corporate sales as well as other products, has features more or less same as Dhanlaxmi Bank but enjoys a very reputable stature. Its comparison can be done on following grounds:

FEATURES
Minimum balance to

DHANLAXMI BANK
Zero

HDFC BANK
Zero

be maintained Statement of accounts Quarterly free of cost Six monthly to classic to every employee salary holders and quarterly to regular salary account Cash withdrawal charges from ATM PAP cheque books Unlimited any ATM 1 Cheque leaves) thereafter Available Available Available Free to everyone Available free holders from First 4 withdrawals account

cirrus

network free of cost from any book cirrus network ATM (20 Chargeable for every per Body

free

quarter, `2 per leaf Cash delivery and cheque pick up facility Free phone banking Free net banking Issue of international debit card Safe deposit lockers Available at selected Centres Available Available Only for regular salary account holders Subject to availability

HDFC again is one of the most renowned and respected banks in our country and has the advantage of coming in to existence earlier, over Dhanlaxmi Bank. The brand value that it enjoys is commendable and it seems that it is one of the reasons why people prefer HDFC over Dhanlaxmi Bank. Apart from this other reasons contributing to it could be: 1. Wide network of its branches and ATMs all over India, which makes it reliable. 2. Strong brand recognition through advertisements and other sources.

III) DHANLAXMI BANK V/S YES BANK

FEATURES
Minimum balance to be maintained ATM card ATM transactions from other banks

DHANLAXMI BANK
Zero

YES BANK
Zero

Free of cost to every Free of cost to every account holder account holder Free up to `50,000 per N number day withdrawals cost masters network. Available from free of of any

Reimbursement savings Expense reimbursement PAP cheque books account for

Not Available

1 Cheque book (20 Not available leaves) thereafter Available Available free per quarter, `2 per leaf

Cash delivery Internet banking

Available Available, chargeable

Mobile banking Financial planning for all employees once a quarter Free e-mail alerts Issue of international debit card

Available Not Available

Available, chargeable Available

Available Free for employee

Available every Free for selected Employees

Dhanlaxmi Bank and Yes Bank are not very old in Delhi and both are striving for existence. Though within a short span, Dhanlaxmi Bank has gained a strong foothold but still it has a long way to go. A lot of facilities of Dhanlaxmi Bank is similar as Yes Bank but they are not similar on many grounds which are as follows:

Dhanlaxmi Bank is issuing PAP Cheque book to its entire customer without charging any cost but PAP Cheque book is not available in the case of Yes Bank.

Dhanlaxmi Bank is issuing International Debit Card to its entire customer but Yes Bank is issuing International Debit Card to its selected customers.

IV) DHANLAXMI BANK V/S STANDARD CHARTERED BANK

FEATURES
Minimum balance to be maintained ATM card ATM transactions From other banks

DHANLAXMI BANK
Zero

STANDARD CHARTERED BANK

Zero

Free of cost to every Free of cost to every account holder account holder Free up to `50,00 per First 4 withdrawals free day of cost from any VISA electronic card network. (20 Available per leaf Available Available Free quarterly, `59 additional for every month you required it

PAP cheque books

Cheque `2

book free per

leaves) quarter, Free phone banking Free net banking Statement of Accounts

thereafter Available Available Free quarterly

Shopping Convenience D.Ds / P.Os

Not available

extra. Not available

Free 2 D.Ds & 2 P.Os Chargeable per month

Standard chartered again enjoys a status of a very reputable bank and has a strong brand value compared to Dhanlaxmi bank. The reliability factor is quite high in its case; where as people still think quite a lot before they go for choosing Dhanlaxmi bank. As far as comparison is concerned it can be seen that

i.

Standard Chartered Bank offers 4 transactions free of cost from VISA electronic card where as Dhanlaxmi Bank offers free transactions up to `50,000 per day.

ii.

Dhanlaxmi Bank offers 2 D.Ds/P.O.s free of cost where as Standard Chartered doesnt.

V) DHANLAXMI BANK V/S ABN AMRO BANK

FEATURES
Minimum balance to be maintained ATM card ATM transactions From other banks

DHANLAXMI BANK
Zero

ABN AMRO BANK

Zero

Free for every body Free for every body Free up to `50,00 per Free with UTI Bank day ATMs, from others it charges `26 per transaction (20 Not available per leaf Available Available Free, quarterly

PAP cheque books

Cheque `2

book free per

leaves) quarter, Free phone banking Free net banking Statement of Accounts D.Ds/P.Os

thereafter Available Available Free, quarterly

Free 2 D.Ds & 2 P.Os Available, but not free per month

As we can see that features of Dhanlaxmi Bank and ABN Amro bank are almost same but both the banks are establishing themselves and have a long way to go. i. One major difference between them is their ATM facility; Dhanlaxmi Bank is having its own ATM network while ABN Amro in using the network of UTI Bank. ii. Dhanlaxmi Bank offers 2 D.Ds/P.O.s free of cost where as ABN Amro doesnt.

6.1.2. Comparison of Dhanlaxmi Bank saving account with the savings account of other banks.

i) DHANLAXMI BANK V/S STANDARD CHARTERED BANK.

STANDARD FEATURES
NO. OF PRODUCTS

DHANLAXMI BANK
Six: Supreme, Regular,

CHARTERED BANK
Aassan and

Platinum, Two: Simple and

Classic, Axcess plus

Average

Dhanam + and ++ quarterly `25,000 for Platinum, `10,000 for Aassan and `10,000 for Supreme, `10,000+ for Axcess `5,000 for Classic and Regular, `1,000 for Dhanam + and ++ and

account Balance

Statement of account ATM usage

Nil for Simple. Quarterly free Maximum up `75,000 per day

Quarterly free to 4 free if average quarterly free balance is maintained; from unlimited standard

Debit card D.D.

Free Free

chartered. Free (different Min `50 up to `10,000. 0.25% on part

conditions for different then Pay order (P.O.)

account holders) there of. Free (different `75 for Aassan and `50 conditions for different for Axcess. account holders) Free unlimited.

Branch transaction

Free, average balance

and is

`50

if not

quarterly

Cheque books Balance enquiry

Free Free

maintained. Free, otherwise `50 `20

ii) DHANLAXMI BANK V/S YES BANK FEATURES

NO. OF PRODUCTS

DHANLAXMI BANK
Six: Supreme, Regular,

YES BANK

Platinum, Two: savings account, Classic, gold savings account. Simple and for savings savings

Average account Balance

Dhanam + and ++ quarterly `25,000 for Platinum, `10,000 `5,000 for Classic and for Regular, `1,000 Dhanam + and ++ and

`10,000 for Supreme, account and `100000 gold for account.

Fee

for

Nil for Simple. non Nil for Simple, `100 for `300 Regular, `200

for

savings

maintenance of quarterly average balance

for account and `600 for

Supreme, `400 if AMB gold saving account. <50% and `250>=50% for Platinum and `200 for Classic per month Quarterly free for all. Quarterly free for both. Free up to `75,000 on Unlimited free on all all the banks in India. Free for all the banks in India. `149 for savings account free for gold

Statement of account ATM usage Debit card

D.D.

Free

savings account. (different Min `50 then `2.5 per for savings account and `1.5 per 1000 for gold savings

conditions for different 1000 account holders)

Pay order (P.O.)

Free

account. (different 5 free

for

savings

conditions for different account and 10 free for account holders) gold savings account,

Branch transaction

Free unlimited

per year 5 transactions transactions savings free per year Free Free for

for gold are

savings account and 10 account

Cheque books Balance enquiry

Free Free

iii) DHANLAXMI BANK V/S ABN AMRO FEATURES

NO. OF PRODUCTS

DHANLAXMI BANK
Six: Supreme, Regular,

ABN AMRO

Platinum, Two: flex plus and flex Classic, advantage account Simple and

Average

Dhanam + and ++ quarterly `25,000 for Platinum, `10000 for flex plus `10,000 for Supreme, and Regular, `1,000 for nil for flex `5,000 for Classic and advantage. Dhanam + and ++ and

account Balance

Fee quarterly balance

for

Nil for Simple. non Nil for Simple, `100 for `300 if its greater than of Regular, `200 for 7500/-, `400 if its average Supreme, `400 if AMB greater than 5000 and <50% and `250>=50% `500 if its less than for Platinum and `200 5000. for Classic per month Quarterly free

maintenance

Statement of account ATM usage Debit card D.D.

Quarterly free, monthly

statement free. Free up to `75,000 on Free on ABN AMRO and all the banks in India. UTI withdrawal, Free for all `180 Free (different `50 on own branches

conditions for different 0.25% Pay order (P.O.) account holders) branches. Free (different conditions for different Branch transaction Cheque books Balance enquiry account holders) Free for all Free for all Free for all

on

others

Free Free `5 on master card ATMs

iv) DHANLAXMI BANK V/S ICICI BANK

FEATURES
NO. OF PRODUCTS

DHANLAXMI BANK
Six: Supreme, Regular,

ICICI BANK

Platinum, Three: category A, B Classic, and C. Simple and

Average

Dhanam + and ++ quarterly `25,000 for Platinum, `5000 for A, `2000 `10,000 for Supreme, for B, and `1000 for `5,000 for Classic and C. Regular, `1,000 for

account Balance

Dhanam + and ++ and Fee quarterly balance for Nil for Simple. non Nil for Simple, `100 for `750 per qtr for A & B of Regular, `200 for and `100 per qtr for C. average Supreme, `400 if AMB <50% and `250>=50% for Platinum and `200 Statement of account for Classic per month Quarterly free Free statement otherwise month for physical per `200 qtr per

maintenance

physical

form. Free e-statement ATM usage per month. Free up to `75,000 on `20/month all the banks in India. for Debit card D.D. Free for all Free same for with cash non

withdrawal & and `60 partner banks. `99 per annum for all

the products. (different `2 per thousand rupees to a minimum of `50 `2.50/ thousand, subject to min of `30 and max of `10000 2 payable at par cheque quarter, books `50/of 25 for leaves each free in a additional cheque book

conditions for different or part thereof, subject Branch transaction account holders) Free for all

Cheque books

Free for all

Balance enquiry

Free for all

of 25 leaves. `10 with partner banks & `25 with non partner banks.

v) DHANLAXMI BANK V/S HDFC BANK FEATURES

NO. OF PRODUCTS

DHANLAXMI BANK
Six: Supreme, Regular,

HDFC BANK

Platinum, Three products: regular, Classic, savings plus & savings Simple and max; each of which are further taken divided into option 1 and 2. (I have comparative product that is option 1

Dhanam + and ++

Average

of regular savings acc.) quarterly `25,000 for Platinum, `5000 `10,000 for Supreme, `5,000 for Classic and Regular, `1,000 for Dhanam + and ++ and

account balance

Fee quarterly balance

for

Nil for Simple. non Nil for Simple, `100 for `750 per qtr. of Regular, <50% `250>=50% Classic per month Quarterly free `200 for and for average Supreme, `400 if AMB

maintenance

Platinum and `200 for Statement of account Monthly statements to be Collected from branch. Quarterly ATM usage statements sent by post Free up to `75,000 on First 4 withdrawals free

all the banks in India. Debit card D.D. Free for all Free

of cost from any cirrus

network ATM `100 plus taxes (different `50 for amt up `75 for

to amt

conditions for different 10000, account holders)

greater than 10000 and up to up 50000, `2.50 per 1000 or part thereof (Min `150) for amt

Pay order (P.O.)

Free

greater than 50000 (different Same as above.

conditions for different Branch transaction account holders) Free for all Free 3 free in the qtr & `60 per additional on of non Min (cash transaction maintenance balance Cheque books Free for all

deposit/withdrawal) Free, `5 per leaf on non maintenance balance of Min

6.1.3. The comparison of Dhanlaxmi Bank current account with similar product of other banks is given below: I) DHANLAXMI BANK V/S HDFC BANK FEATURES
Number of products

DHANLAXMI BANK
Power, Maxi Super Gain

HDFC BANK
plus, trade,

Five: Suvidha, Regular, Four: Current

Power, premium, and regular

Average Balance

Account. monthly Nil for Suvidha, `5,000 `100000 for Regular, `50,000 for `40000 Power, Super `3,00,000 Power, for

for for

plus, trade,

for `25000 for premium, & and `10000 for regular Maxi

`5,00,000 Fee for

Gain. non Nil for Suvidha, `150 `6000 for plus, `1200 monthly for Regular, for trade, `900 for

maintenance of AMB

`400 Power, `1500

monthly

for premium and `750 for

AMB<50%- regular. monthly but

AMB>=50%

<100%- `750 monthly for Super Power, and AMB<50%monthly but Statement of account Issue of cheque book <100%`3,000 AMB>=50% `1,500

monthly for Maxi Gain. Free once in a month Free once in a month 1Cheque book (50 PAP cheque books; 300 leaves) free; `2 per leaf leaves free pm for plus, there after for Suvidha, 200 leaves free pm for `2 per leaf for Regular, trade, 100 leaves free 1Cheque book (50 pm for premium and `2 leaves) free per month; per leaf for regular `2 per leaf thereafter for Power, 4Cheque books (200 leaves) free per month; `2 per leaf thereafter for Super HDFC Power and Maxi Gain. Free usage of Free usage of bank ATMs. Free for first year Free for all

ATM usage

Dhanlaxmi Bank. Issue of debit card Free Transfer from one Free for all account to other D.D/P.O.

10 DDs free per month Free up to 50 DDs per beyond that `50 per month. Above 50 DD for Suvidha, up to transactions, charges

`10k `30;>`10k & up @ `25/- per DD for to `50k `100; >`50k plus, Free up to 30 DDs & up to `1 lakh `200; per month. Above 30 > `1 lakh to less than transactions, charges

`10 lakh `2/1000 (min. @ `25/- per DD for `250) for Regular and trade; DD Amount Up Power, and Free (sub- to `50,000 and charges up to for DD limit of 20 DDs per `40/- per DD, Above day) for Super Power `50,000 and Maxi Gain. PO: 10 Pos beyond monthly free `100,000that premium `100,000- `25/-, Above Free and

25 per PO for Suvidha, Amount Up to `50,000 up to `10k `30 ;> charges `40/- per DD, `10k & up to `50k Above `50,000 and up `100; >`50k & up to `1 to `100,000- `25/-, lakh `200; > `1 lakh Above `100,000- Free to less than `10 lakh for regular. `2/1000 (min. `250) for Regular, 20 POs free monthly Power, monthly beyond 25 POs that free that same as Regular for beyond

same as Regular for Super Power and Maxi Gain.

II) DHANLAXMI BANK V/S ABN AMRO BANK

FEATURES
Number of products

DHANLAXMI BANK
Power, Maxi Account. Super Gain

ABN AMRO BANK

Five: Suvidha, Regular, Three: value + silver Power, 40, value + gold 100, Current and value + gold 500.

Average Balance

monthly Nil for Suvidha, `5,000 `40000 Power, Super `3,00,000 Power, for

for

value

for Regular, `50,000 for silver 40, `100000 for for value + gold 100 and and `500000 for Value + Maxi gold 500(daily).

`5,00,000 Fee for

Gain. non Nil for Suvidha, `150 `250-`750 pm for monthly `400 Power, `1500 AMB>=50% for Regular, value +silver, `500for `1200 pm for monthly

maintenance of AMB

AMB<50%- value+gold100, `1000monthly `3000 for value + gold but 500.

<100%- `750 monthly for Super Power, and AMB<50%monthly but Statement of account Issue of cheque book <100%`3,000 AMB>=50% `1,500

monthly for Maxi Gain. Free once in a month Free once in a month 1Cheque book (50 `225 for 25 leaved leaves) free; `2 per leaf cheque book for there after for Suvidha, value+ silver 40, same `2 per leaf for Regular, cheque book free for 1Cheque book (50 the rest balance. Only leaves) free per month; PAP Cheque books are `2 per leaf thereafter issued for Power, 4Cheque books (200 leaves) free per month; `2 per leaf thereafter for Super usage at ABN Power and Maxi Gain. Free usage of Free Dhanlaxmi Bank.

ATM usage

AMRO and `5 at UTI banks and `20 at cirrus

Issue of debit card Free Transfer from one Free for all account to other D.D/P.O.

network. Not available Free for all

10 DDs free per month `200000 pm at 0.20% beyond that `50 per with min of `50 for DD for Suvidha, up to value+silver40; `10k `30;>`10k & up `2000000 pm at 0.15% to `50k `100; >`50k with min of `50 for & up to `1 lakh `200; value + gold 100; > `1 lakh to less than `4000000 pm at 0.15% `10 lakh `2/1000 (min. with min of `50. `250) for Regular and Power, and Free (sublimit of 20 DDs per day) for Super Power and Maxi Gain. PO: 10 Pos beyond free that monthly

25 per PO for Suvidha, up to `10k `30 ;> `10k & up to `50k `100; >`50k & up to `1 lakh `200; > `1 lakh to less than `10 lakh `2/1000 (min. `250) for Regular, 20 POs free monthly Power, monthly beyond 25 POs that free that same as Regular for beyond

same as Regular for Super Power and Maxi Gain.

III) DHANLAXMI BANK V/S STANDARD CHARTERED BANK

FEATURES
Number of products

DHANLAXMI BANK

STANDARD CHARTERED BANK

Five: Suvidha, Regular, Five: business plus 25, Power, Maxi Account. Super Gain Power, business Current enhanced plus 100, business enhanced plus, business enhanced plus 500, business

Average Balance

plus 1000. monthly Nil for Suvidha, `5,000 It is `25,000, `50,000, for Regular, `50,000 for `1,00,000, Power, Super `3,00,000 Power, for for and and respectively `5,00,000 `10,00,000 for the

`5,00,000 Fee for

Maxi above products.

Gain. non Nil for Suvidha, `150 Vary between `750 to monthly `400 Power, `1500 AMB>=50% for Regular, `3000 for different monthly for products.

maintenance of AMB

AMB<50%monthly but

<100%- `750 monthly for Super Power, and AMB<50%monthly but Statement of account <100%`3,000 AMB>=50% `1,500 Free once in a month

monthly for Maxi Gain. Free once in a month

Issue of PAP cheque 1Cheque book

book

(50 Not available

leaves) free; `2 per leaf there after for Suvidha, `2 per leaf for Regular, 1Cheque book (50 leaves) free per month; `2 per leaf thereafter for Power, 4Cheque books (200 leaves) free per month; `2 per leaf thereafter for Super at standard Power and Maxi Gain. Free usage of Free Dhanlaxmi Bank.

ATM usage

chartered bank ATMs and `50 at visa ATMs for all. Instead they offer gold card at an annual fee of `799 to every one. Free for all

Issue of debit card

Free

Transfer

from

one Free for all

account to other D.D/P.O.

10 DDs free per month DD: 0.25% for business beyond that `50 per plus 25, 75 per qtr free DD for Suvidha, up to for business plus, and `10k `30 ;> `10k & free for the rest. up to `50k `100; PO: 75 free per qtr for plus, and >`50k & up to `1 lakh business plus 25 and `200; > `1 lakh to less business (min. `250) for Regular and Power, and Free (sub-limit of 20 DDs per day) for Super Power and Maxi Gain. than `10 lakh `2/1000 unlimited for the rest.

PO:

10

Pos beyond

free that

monthly

25 per PO for Suvidha, up to `10k `30 ;> `10k & up to `50k `100; >`50k & up to `1 lakh `200; > `1 lakh to less than `10 lakh `2/1000 (min. `250) for Regular, 20 POs free monthly Power, monthly beyond 25 POs that free that same as Regular for beyond

same as Regular for Super Power and Maxi Gain.

IV) DHAN LAXMI BANK & YES BANK

FEATURES
Number of products

DHANLAXMI BANK
Power, Maxi Super Gain

YES BANK

Five: Suvidha, Regular, Four: CA 25, CA 75, CA Power, 200 and CA 500. Current `75000, for the

Average Balance

Account. monthly Nil for Suvidha, `5,000 `25000, Power, Super `3,00,000 Power, for for respectively Maxi

for Regular, `50,000 for `200000 and `500000 and above products.

`5,00,000 Fee for

Gain. non Nil for Suvidha, `150 `1000, `1500, `2000,

maintenance of AMB

monthly `400 Power, `1500

for

Regular, and `4000 respectively for for the above products.

monthly

AMB<50%monthly but

AMB>=50%

<100%- `750 monthly for Super Power, and AMB<50%monthly but <100%`3,000 AMB>=50% `1,500

monthly for Maxi Gain. Statement of account Free once in a month Free once in a month Issue of PAP cheque 1Cheque book (50 Free Unlimited. book leaves) free; `2 per leaf there after for Suvidha, `2 per leaf for Regular, 1Cheque book (50 leaves) free per month; `2 per leaf thereafter for Power, 4Cheque books (200 leaves) free per month; `2 per leaf thereafter ATM usage Issue of debit card Transfer from for Super not not per month per Power and Maxi Gain. Free usage of Information Dhanlaxmi Bank. Free one Free for all available. Information available. `25 lakh subsequent lakh per

account to other

0.50

`1000 for CA 25, `50 month 0.50 per subsequent

`1000 for CA 75 and unlimited for the rest.

D.D/P.O.

10 DDs free per month DD:2 Free Per Month beyond that `50 per Min-Rs.100 Max-`5000 DD for Suvidha, up to for CA 25, 5 Free Per `10k `30 ;> `10k & Month up to `50k subsequent `100; `1.75 per `1000 or part

>`50k & up to `1 lakh there of Min- `100 Max`200; > `1 lakh to less `5000 for CA 75, 5 Free than `10 lakh `2/1000 Per Month subsequent (min. `250) for Regular `1.50 per `1000 or part and Power, and Free there of Min- `100 Max(sub-limit of 20 DDs `5000 for CA 200 and per PO: day) 10 for Pos beyond Super free for CA 500. PO: 2 Free Per Month 0.75 per free Subsequent Power and Maxi Gain. monthly

that `1000. Min- `75 Max-

25 per PO for Suvidha, `5000 for CA 25, 5 Free up to `10k `30 ;> Per Month. Subsequent `10k & up to `50k 0.75 per `1000. Min`100; >`50k & up to `1 `75 Max- `5000 for CA lakh `200; > `1 lakh 75 and free for the to less than `10 lakh rest. `2/1000 (min. `250) for Regular, 20 POs free monthly Power, monthly beyond 25 POs that free that same as Regular for beyond

same as Regular for Super Power and Maxi Gain.

SERVEQUAL ANALYSIS 6.2.1 The results of the study include analysis of the perception and the
expectation gap of between the customers and the management respectively. Here,

Table # 1 the average perception scores of the service quality experienced by the customers across all the companies is shown. Table # 2 shows the average expectation scores as per the customers across all the companies is shown.

 Table # 3 shows the overall gap between the perception and the expectation.

TABLE # 1 SERVEQUAL DIMENSIONS AND THEIR ITEMS Tangibles

Extent to which you are satisfied with the services 6.66 provided by your bank, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, and branch facilities.

P Score

Assurance
Extent to which you are well informed and aware about 6.50 all products and facilities, which are provided by banks literature and staff.

Responsiveness
Extent to which you are satisfied with the staff of the bank and their act of helping you in solving your diverse 7.90 problems and giving you prompt solution.

Reliability
You feel secure about your possessions and benefits provided by the bank through various products and schemes The banks services are as per the norms and reliable in all respects.

8.92

Empathy
8.77 Extent to which you feel that your bank understands your needs and gives solutions as per your needs. Extent to which you feel banks services are made for you and staff also try to help you in all situations.

TOTAL

38.75

(Source: Primary data)

TABLE # 2 SERVEQUAL DIMENSIONS AND THEIR ITEMS Tangibles

Services provided by Dhanlaxmi Bank, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, branch facilities, salary transfer e.t.c. 7.33

E Score

Assurance
Extent to which your customers are well informed and

aware about all products and facilities, which are 6.25 provided by banks literature and staff.

Responsiveness
The staff of the bank helps customers in solving their diverse problems and giving them prompt solution. 6.91

Reliability
Customers feel secure about their possessions and benefits provided by the bank through various products and schemes. The banks services are as per the norms and reliable in all respects 9.25 7.33

Empathy
7.16 The bank understands their customers needs and gives solutions as per your needs. Banks services are made as per the customer needs and 6.91 staff also try to help them in all situations

TOTAL

51.14

(Source: primary data)

Table # 3: Aggregated dimensional scores SERVE Dimensions

Tangibles Reliability Responsiveness Assurance Empathy (Source: primary data) 6.66 6.50 7.90 8.92 8.77 7.33 6.25 6.91 8.29 7.04

QUAL P score

E score

Difference (P-E)
- 1.33 0.25 0.99 0.63 1.73

To study the service quality of Dhanlaxmi Bank, all those companies which were surveyed were categorized in to three categories/groups on

the basis of their average salary uploaded and type of current account, they have in the bank. Group 1 had those companies whose average salary was up to `10,000 and no current account. Group 2 had those companies whose average salary was either above `10, 000 or were below `10, 000 but had normal current account also. Group 3 had those companies whose average salary was either above `20, 000 or was below `10,000 but had orange current account also. So once the data was collected related to perception and expectation scores and their gap, hypothesis were made on each parameter to find if there exists any difference between these groups using one way ANOVA, as far as these five parameters of service quality are concerned.

6.2.2 FORMULATION OF HYPOTHESIS

1. Ho: There is no significant difference among the groups of companies with regards to tangibles factor offered by the bank. Ha: The groups of companies do differ with regards to tangibles factors offered by the bank.

Here we can see that F value is less than the F crit hence we accept the null hypothesis that there is no difference between the groups as far as tangibles are concerned.

ANOVA: Single Factor

SUMMARY GROUPS (P-E) GROUP1 (P-E) GROUP2 (P-E) 2

(TANGIBLES)

Count 2 2

Sum -7.8 6.6846 2 -3.7 DF 2 27

Averag e -0.78 -0.6846 -0.37 MS

Varianc e 0.49413 6 0.10414 2 0.27377 8 F P-Value F crit

GROUP3 Source of SS Variation Between Groups Within Groups Total 8.74723 4 0.89873 4 7.8485

0.44936 1.54588 0.23140 3.35413 7 8 0.29068 5 1 1

29

Here we can see that F value is less than the F crit hence we accept the null hypothesis that there is no difference between the groups as far as tangibles are concerned. The reasons for such indifference could be: a) The bank is growing there business in Delhi, though it is trying to give best of its services but still facilities can be provided in a better manner when there is a strong network of branches. In NOIDA there is just one branch of Dhanlaxmi Bank which is not sufficient to serve the customers in a better manner. So in this case even the bank knows that it lacks and

needs improvement and has fewer expectations which match the perception so there is no much difference between the groups. b) Same is the case with no. of ATMs which even the bank knows so it has rated itself lower in tangibles. So in short the main reason for indifference is the familiarity of the employees of the bank with the problems that bank is facing which has lowered its expectations.

2. Ho: There is no significant difference among the groups of companies with regards to assurance factor offered by the bank.

Ha: The groups of companies do differ with regards to assurance factors offered by the bank.

ANOVA: Single Factor

SUMMARY GROUPS (P-E) GROUP1

(ASSURANCES)

Count 2

Sum 1.58333

Averag e 0.15833

Varianc e 0.0300 1

(P-E) GROUP2 (P-E) GROUP3 Source Variation Between Groups Within Groups Total

2 2 of SS 5.29149 3 2.76613 9

3.80769 2 8.7 DF 2 27

5 0.0444 4 0.38076 4 -0.87 0.2328 8 9 MS F 2.64574 25.824 8 6 6 0.10245

PValue 5.39

F crit 3.35413 1

8.057631 29

Here it can be seen that F value is greater than F critical hence we reject the null hypothesis and so there exist some difference between the groups regarding assurance of the bank.

Under reliability it was asked to people if they are informed about various products and schemes that are launched by the bank through any means and to this we received different answers and it proved to be a weak area for the bank in terms this difference.

According to me reasons for this could be:

a)

Group 1 companies are generally small companies whose average

salary is not much and the level of education among the employees there, is not equivalent hence most of them dont even know how to use internet, which is a common source of informing people.

b) It was noticed that a lot of the companies are located in Noida and there is only one branch of Dhanlaxmi Bank in Noida so they wanted some body to visit them often so that they can get these information easily so they were not satisfied with the bank in this regard on the other hand group three companies are generally the call centres whose employees are tech- savvy and hence get the relevant information on their e-mails. The banks average expectations are coming to be around 6.25 and the groups perception were generally lower in case of group 1 and almost the similar and higher respectively for group 2 and 3 than the same number.

3. Ho: There is no significant difference among the groups of companies with regards to responsiveness factor offered by the bank. Ha: The groups of companies do differ with regards to responsiveness factor offered by the bank.

ANOVA : Single Factor

SUMMAR Y GROUPS (P-E) GROUP1 (P-E) GROUP2 (P-E) GROUP3 Source of

(RESPONSIVENE SS)

Count 2 2 2 SS

Sum 7.3 10.64615 13.8 DF

Averag Varianc e 0.73 e 0.1092 59

1.0646 0.0510 19 1 1.38 0.2333 33 MS F P-Value F crit

Variation Between Groups Within Groups Total

2.11311 3.54250

2 27

1.0565 8.0527 96 5 0.1312 0

0.0018 08

3.35413 1

5.65562 1

29

Here we can see that F value is greater than the F critical hence we reject the null hypothesis and there exists difference between the groups.

Under responsiveness the question was regarding the employees that if they listen to their problems and give them prompt solutions. According to me for the whole span of two months during which I worked for the bank I saw that each employee be it of any hierarchy use to listen to problems of those who came to bank, very sincerely so there is no doubt that they dont listen. But reasons for the difference in service quality could be due to following:

a)

Some of the companies which are generally small companies are

scattered in NOIDA and Greater NOIDA, the customers dont want to come to branch and want every thing to be done right from their office which is not possible every time and this becomes their reason for grief that bank doesnt listen to them where as group 3 companies which are few in number and are big ones are in Delhi itself and coincidently nearer to the branch too, so there is no problem for the employees of the bank to go to visit them and vice-versa.

b)

For all those who came to the branch with their problems there is

not a single case when the problem wasnt solved. The main problem here again lies with the network of branches and Dhanlaxmi Bank seriously needs more number of branches in NCR.

4. Ho: There is no significant difference among the groups of companies with regards to reliability factor offered by the bank. Ha: The groups of companies do not differ with regards to reliability factor offered by the bank.

ANOVA: Single Factor )

SUMMARY GROUPS (P-E) GROUP1 (P-E) GROUP2 (P-E)

(RELIABILITY

Count 2 2 2

Sum 7.8133 3 5.1 5.9 DF 2 27

Averag e 0.7813 0.51 0.59 MS

Varianc e 0.02538 6 0.02656 1 0.09066 7 F PF crit 3.35413 1

GROUP3 Source of SS Variation Between Groups Within 0.22090 7 1.28352

Value 0.11045 2.32348 0.1172 4 3 0.04753

Groups Total

5 1.50443 3 29

Here, F value is less than the F critical value hence the null hypothesis is accepted and there is no difference between the groups regarding reliability of the bank.

Under reliability we asked the customers if they feel secure about their possessions and if they feel that banks services are as per the norms of the RBI to which almost all of them rated between 8 and 10 which shows that the bank is credible in the eyes of its customers and all the customers are treated in the same manner by the bank.

5. Ho: There is no significant difference among the groups of companies with regards to empathy factor offered by the bank.

Ha: The groups of companies do not differ with regards to empathy factor offered by the bank.

ANOVA: Single Factor )

SUMMARY GROUPS (P-E) GROUP1 (P-E) GROUP2 (P-E)

(RELIABILITY

Count 2 2 2

Sum 17.35 16.8307 7 18.6 DF 2 27

Averag e 1.735

Varianc e 0.05563 3

1.68307 0.03839 7 6 1.86 MS 0.0827 05 0.03801 0.02 F 2.1758 94 P-Value 0.1330 06 F crit 3.35413 1

GROUP3 Source of SS Variation Between Groups Within Groups Total 0.16540 9 1.02625 7 1.19166 6

29

For empathy also the value of F is less than the F critical hence the null hypothesis is accepted that there is no difference between the groups regarding empathy shown by the bank. Under empathy it was asked to customers if they feel that bank understands the customer needs and provide the solutions as per the needs and if they feel that banks services are made as per their requirements to which most of them replied in.

6.3 SWOT ANALYSIS STRENGTHS: 1. Strong brand association

The bank has a good brand reputation in Southern part of India and it is helping the bank to create the same reputation in Delhi. The brand is considered to be a high quality service provider.

2. Marketing strategy
The bank has very well targeted the market and is focusing on high net worth clientele. It gives a lot of stress in strategy making to take an edge over other bank.

3. Sales promotion techniques

Though the bank is growing there business in Delhi but still it has endeavoured to make its mark in the minds of people through various sales promotion techniques.

4. Wide network in southern India

The bank is a well-known name in southern part of India which makes its roots much stronger there than many of its competitors.

WEAKNESS: 1. Lack of network in small cities and towns

The bank still needs to work on expanding its area of operation by opening more no. of branches. For example if we take NCR 1 branch in NOIDA, 1 In Ghaziabad, 1 in Faridabad doesnt do. Since the Faridabad branch has a potential to discover more business.

2. Lack of brand awareness

Since the bank is new as compared to its competitors in Delhi it needs to work on promoting its brand name so that it remains there on the peoples mind and they dont confuse it with ICICI when they hear about it as it happens now.

3. Lack of no. of ATM outlets in Delhi

Though the bank has a tie up with no. of banks which let its customers withdraw money from there at least 6 times a month but still to make its presence feel having a strong ATM network is very much necessary.

OPPORTUNITY

1. Indian multinational
Many Indian companies are now in the race of overtaking multinationals; its a great opportunity for a Bank to provide their service to these multinationals, it will help bank in building their strong position in global market.

2. Globalization
Lots of multinationals are coming over, so having a global brand association it can cash on it and provide its services to them.

THREATS: 1. Competitors (existing as well as new to enter)

This is one of the biggest threats that it has in front of itself. The banking sector is witnessing and is expected to witness more players in future. Many of the Financial Institutions are thinking of converting into banks corporate houses are planning to launch their banks.

2. Bargaining power of buyers

Bargaining power of the buyers will be high, as they will be having lot of service providers to choose from. This will force bank to improve

their service and emphasize upon the customer relationship management for their survival.

7. CONCLUSION
1. Dhanlaxmi Bank has a strong brand association with in Southern part of India. But so far the bank has not been able to establish it self so well here, in the minds of people here in Delhi, unlike its competitors. 2. The bank is facing the problem of being unpopular due to lack of its branches and ATMS in sufficient numbers all over INDIA. 3. Even in the comparative analysis it was found that most of the product features are almost the same, rather in some instances Dhanlaxmi Bank is better for e.g.: a. It offers PAP cheque books to its customers where as banks others dont. b. It offers free DD/PO to its customers where as banks like standard chartered dont. c. It opens the salary accounts even at lower averages where as other banks follow strict policies in this regard.

8. RECOMMENDATIONS
1. The bank should first of all try to increase its network by opening more and more branches and ATM outlets in Delhi because in order to be there in the minds of the people it should be seen every where like ICICI and HDFC. 2. It should also use more and more media in order to be seen more; very good attempts have been made in these lines like calling different celebrities for different purposes. 3. It should indulge more and more in to customer feed back, CRM practices so that they can also act as unpaid ambassadors of the bank and spread good word of mouth about its services. 4. During the survey was conducted there were some complaints of its customers related to tangibles which need to be addressed like: a. ATM blockage/hanging, mainly with lower class employees b. Delay in transfer of salaries c. Delay in transfer of online funds. d. Problems with the statement of accounts that many of them havent received it.

e. These are some problems which are related to operations and management needs to device some technique to speed up the whole process. 5. To solve the problem of ATM blockage which apparently is due to the fact that uneducated employees are not able to use it properly, the bank if thinks is reasonable enough can go for organizing some work shops for such people and teach them how to use it, besides solving the problem it can also attract media attention. 6. It is seen that the bank has no branch in Greater Noida so the customers that are there are also served by the Noida branch, so in order to ensure the satisfaction of those customers bank needs to send some executive regularly over there who could go and visit those places regularly which would further enrich a good relationship between them. 7. It needs to rethink its strategy in India i.e. needs to follow contingency approach. Since Formula 1 as a sport is not so popular in India, so rather than going for Formula 1 Account it could have created a product for the cricket fans, may be a product somehow related with DLF IPL 20-20. 8. It needs to increase its frequency of advertisements on television to get more business & create more brand awareness. 9. It needs to disclose some of the NGOs & other charitable institutions so as to increase the business.

9. LIMITATIONS

1. There were some problems in communicating with some of the people from the lower strata of the organization because they were not able to make any sense out of this exercise, so it took time to explain them the whole situation. 2. While collecting the information about the liability products from the banks there were some problems because the employees didnt want to disclose their features to summer trainees but the potential customers. 3. The management of the bank was reluctant initially to share the data with me but after full assurance from my side of not misusing the data and long discussion among themselves they finally agreed to it. 4. There were financial constraints as well; otherwise the data could have been collected from more companies and from even more number of employees from each company. 5. The time constraint cannot be ignored because if it had been more the I may have been exposed to more number of problems which didnt come in to picture by this time.

REFERENCES:

http://www.dhanlaxmi.com/scripts/retailbanking.aspx http://www.icfaiuniversitypress.org/ http://www.icfaiuniversitypress.org/507/pb.asp www.icicibank.com www.hdfcbank.com www.standardchartered.co.in www.abnamro.co.in www.yesbank.in http://www.iimk.ac.in/GCabstract/Ashwin i%20Awasthi.pdf Professional banker, ICFAI university press, vol: April 2008

APPENDIX Questionnaire

Name:

Company name:

Age Designation:

Bank that carries your salary account:

Annual Salary: a) up to `1,00,000 b) `1,00,000 to `2,00,000 c) `2,00,000 to `4,00,000 d) `4,00,000 to `6,00,000 e) `6,00,000 and above

1. Extent to which you are satisfied with the services provided by your bank, like ATM, cheque drop facility, nearness to the branch, doorstep facilities, and branch facilities.  Highly satisfied  satisfied  not satisfied  not at all satisfied

2. Extent to which you are well informed and aware about all products and facilities, which are provided by banks literature and staff.  Highly satisfied  satisfied  not satisfied  not at all satisfied

3. Extent to which you are satisfied with the staff o solution.  Highly satisfied  satisfied  not satisfied

f the bank and their

act of helping you in solving your diverse problems and giving you prompt

 not at all satisfied

4. You feel secure about your possessions and benefits provided by the bank through various products and schemes.  Highly satisfied  satisfied  not satisfied  not at all satisfied

5. The banks services are as per the norms reliable in all respects.  Highly satisfied  satisfied  not satisfied  not at all satisfied

6. Extent to which you feel that your bank understands your needs and gives solutions as per your needs.  Highly satisfied  satisfied  not satisfied  not at all satisfied

7. Extent to which you feel banks services are made for you and staff also try to help you in all situations.  Highly satisfied  satisfied  not satisfied  not at all satisfied

COMPANYS NAME USED FOR SERVEQUAL PRACTICES

1. Morphies Securities Pvt. Ltd. 2. A.R. Enterprises 3. Prime Shield 4. Amrita Vidhyalaya 5. Edutation Pvt. Ltd. 6. Sentinels Security Pvt. Ltd.

ABBREVIATIONS

ABN AMRO

Algemere Bank Nederland and the Amsterdamsche Rotterdamsche Bank.

ADR AICTE AIT AMB ATM CRM DD DF e.g. E-mail E score : : :

: :

American Depository Receipts. All India Council of Technical Education. Apeejay Institute of Technology. Average Monthly Balance.

All Time Money Customer Relationship Management.

: : : : :

Demand Draft. Degree of Freedom. Example. Electronic Mail. Expectation score.

FD HDFC ICICI ISG MS NEFT NGOs NRI NSDL NYSE PAP PO POS P score RBI RTGS

: : : : : : : : : : : : : : : :

Fixed Deposit. Housing Development Finance Corporation. Industrial Credit and Investment Corporation of India. In Solution Global Pvt. Ltd. Mean Square. National Electronic Fund Transfer. Non-Governmental Organizations. Non Reliable Indians. National Security Depository Limited. New York Stock Exchange. Payable at Par. Pay Order. Point of Sale. Perception score. Reserve Bank of India. Real Time Gross Settlement.

SMS SS SWOT VISA

: : : :

Short Messaging Service. Sum of Squares. Strength, Weakness, Opportunities, Threats. Visitors Intention to Stay Abroad.