A PROJECT ON SERVICE QUALITY ANALYSIS OF STATE BANK OF INDIA

UNDER THE GUIDANCE OF Mr. Imran Shaikh

Submitted by Mr.Bhavesh Jain, Enrollment No. 108050592024, Ms.Shilpa Parmar, Enrollment No.108050592038,

As per Banking Regulation Act, 1949 (section 5): The bank is the institutions which accept the deposits from the public, repay the same on their demands by cheques, demand draft or by order, for the purpose of investment and lending.

1.

Political/ Legal :

State provision of pensions Government encouragement of savings and investment Regulatory control and protection

2.Economic:
Personal

and household disposable income Employment levels The rate of inflation Income tax levels and taxation structures Savings and investment levels and trends Stock market performance

3. Socio-cultural :
Changing

attitude towards consumer credit

and debt Changing employment patterns Numbers of working women The ageing population Marriage/divorce/birth rates Consumption trends

4.Technological:

Process developments Information storage and handling

Database system

Type: Public
Industry: Banking, Financial services Founded: 1 July 1955 Headquarters: Mumbai, Maharashtra, India Area served: World wide

Chairman:Mr. Pratip Chaudhuri

Products: Credit cards, Consumer banking, corporate banking, finance and insurance
Revenue: 147,843.92 crore (US$29.98 billion) (2011) Operating income: 33,710.31 crore (US$6.84 billion) (2011) Profit: 11,179.94 crore (US$2.27 billion) (2011)

Employees: 222,933 (2011)

Strength

Weakness

Aggression towards development the existing standards by banks. Strong regulatory impact by central Bank to all the banks. Presence of intellectual capital to face the change in implementation with good quality.

Poor Technology infrastructure. Ineffective risk measures. Presence of more number of smaller banks that would likely to be Impacted adversely

Opportunities

Threats

Increasing Risk management Expertise. Need significant Connection among, business Credit & risk management and Information Technology. Advancement of technologies. Strong Asset Base would help in bigger growth.

Inability to meet the additional Capital Requirements. Loss of Capital to the entire banking system due to merger and acquisitions. Huge investment in technology.

Bank: STATE BANK OF INDIA RANK 2010: 36 RANK 2009: 70 BRAND VALUE 2010: (Brand Value in $ millions) 4551 BRAND VALUE 2009: 1448

Bhanu Pande, ET Bureau Ranking

Review of literature

In 1988, Parasuraman, Zeithaml and Berry developed a multipleitemscale for measuring service quality called SERVQUAL. SERVQUAL is a generic instrument for measuring perceived service quality that is viewed as the degree and direction of discrepancy between consumers perceptions and expectations.

The SERVQUAL scale was employed to measure the service quality in an electric, banking secter and gas utility company (Babakus and Boller, 1992) as well as restaurants (Bojanic andRosen, 1994; Fu, 1999).

 Scope

of the study:

The study would try to throw some insights into the existing services provided by the banks and the gap between the customer expectations, perceptions and the actual state of performance. The results of the study would be able to recognize the lacunae in the system and thus provide key areas where improvement is required for better performance and success ratio.

Research design:
Descriptive

Research Objectives:
To find out the level of expectation and the level of perception of the customers from the services offered by the banks. To compare the level of perception and expectation of the services offered by the bank. To know the customer faces different technical problem while using different technical product of SBI. To know which service quality dimension the bank is performing well and in which dimension it needs improvement

Sampling Design:
Sample Area: : Surat

Sample size: 100 SBI customers Sampling Method: Non- Probability Convenience Sampling Data Source: Primary data Secondary data

Research

tools:

SERVQUAL Instrument and Gap Analysis

5 Dimension of SERVQUAL
Instrument

Tangible
Reliability Responsiveness

Assurance
Empathy

 Limitations

of the Study:

Respondents may give biased answers for the required data. Some of the respondents did not like to respond. As the samples were taken from the Surat region, the finding of the study does not apply to any other part of the state. Inadequate time was the major constraint during the whole project.

 Beneficiaries

of Project:

Beneficiary of this project is to the bank, to improve the customer satisfaction in the dimension in which they are lagging. Key findings and analysis will helpful to them for provide better services to customers. For researchers, to know the competitive advantage of the banks and their services.

Data Analysis and Interpretation

Tangible Dimension
Q.1 Modern looking equipments

Ques.1
50 40
No Of 30 Responde 20 nts

46 33

10 0 1

8 4 2 3

Satisfaction Level

Q.3 Net Appearing Employees at the Desk.

Ques.3
60 50 40 30 20 10 0 1
55

No Of Respondent s

13

16

14 2

Satisfaction Level

Reliability Dimensions Q.6) Showing sincere interest in solving a customers problems.

Ques.6
50 40
No.of 30 Responde 20 nts

48 34

11 6 1 2 3 4 5 1

10 0

Satisfaction Level

Q.9) Insisting on error- free records.

Ques.9
50 40
No Of 30 Responde 20 nts

46 30 14 7 3 1 2 3 4 5

10 0

Satisfaction Level

Responsiveness Dimensions Q.11) Employees giving prompt service to customers.

Ques.11
50 40
No. of Respondent s

47

30 20 10 0 1
13

18 12 10

Satisfaction Level

Q.12) Employees always being willing to help customers

Ques.12
60 50 No. Of 40 Responde 30 nts 20 10 0 51 36 6 1 2 3 7 4

0 5

Satisfaction Level

Assurance Dimension Q.14) Employees of the bank instill confidence in the customers.

Ques.14
80
No of Responde 40 nts

60 14 3

62

20 0 1

12 2

9 4 5

Satisfaction Level

Q.16) Employees being consistently courteous with their customers.

Ques.16
70 60 50 No. Of 40 Responde 30 nts 20 10 0 62

26 3 1 2 3 6 4 5 3

Satisfaction Level

Empathy Dimension Q.19) Operating hours convenient to all their customers.

Ques.19
60 50 40 No Of Responde 30 nts 20 10 0 1 51

25 10 2 2 3 4 5 12

Satisfaction Level

Q.20) Employees giving customers personal attention.

Ques.20
50 40
No Of 30 Responde 20 nts

49 35

10 0 1 2 3

7 0 4 5

Satisfaction Level

Five Dimensions Chart

Five Dimension Chart

40

38.00

35

30.00
30

25

No. of Respondence 20
15

17.00

10.00
10

5.00
5

Tangibles

Reliability

Responsiveness

Assurance

Empathy

Dimension

Conclusion

SBI Bank is performing well in two services first is modern looking equipments service and others is customers are feeling safe in their transactions. SBI Bank is not performing well in three service mainly first is bank not showing sincere interest in solving a customers problems, second bank not telling the customers exactly when services will be performed and Third is bank is not always being willing to help customers.

SBI Bank is performing well at moderate level in two service first is employees are never too busy to respond to customers requests and second is the employees understanding the specific needs of customers. In overall Conclusion we can tell that bank Reliability and Responsiveness dimensions are very weak so to satisfy its customers the bank has to improve the service related to this dimensions.

Recommendations

SBI Bank has to improve mainly two dimension related service reliability and responsiveness.
SBI bank should keep in mind four factors Promptness, Willingness, Competency and Understanding because this four factors are very important for any banking industry.

SBI Bank has to concentrate four service to improve that serviceA. Showing sincere interest in solving a customers problems B. Employees telling customers exactly when service will be performed C. Employees always being willing to help customers

SBI should deemphasize on factor Promptness as in this factor they are performing well, but these factors have less importance as compared to other factors.

 Donald

R. Cooper & Pamela S. Schindler, Business research method Tata Mac Grow Hill, 2008 Kotler Philip, Marketing Management, New Delhi, 11th Edition, Prentice Hall of India. 2003 WEBSITE http://finance.indiamart.com,india finance and investment,Julay 7, 2000 http://www.rbi.org.in,Scripts http://www.rbi.org.in,history,March 7 2006 http:// www.statebankofindia.com