BANKS IN INDIA

SYNOPSIS ON

Report

CUSTOMER SATISFACTION

BANKS IN INDIA INTRODUCTION The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely: History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. The descriptions along with a list of scheduled commercial banks are given on this page. HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India.

BANKS IN INDIA Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. Major Banks in India

ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Bank of Baroda Bank of India Bank of Maharastra Bank of Punjab Bank of Rajasthan Bank of Ceylon BNP Paribas Bank Canara Bank Catholic Syrian Bank

Indian Overseas Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank JPMorgan Chase Bank Karnataka Bank Karur Vysya Bank Laxmi Vilas Bank Oriental Bank of Commerce Punjab National Bank Punjab & Sind Bank Scotia Bank South Indian Bank Standard Chartered Bank

Central Bank of India Centurion Bank China Trust Commercial Bank Citi Bank City Union Bank Corporation Bank Dena Bank Deutsche Bank Development Credit Bank Dhanalakshmi Bank Federal Bank HDFC Bank HSBC ICICI Bank IDBI Bank Indian Bank

State Bank of India (SBI) State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Indore State Bank of Mysore State Bank of Saurastra State Bank of Travancore Syndicate Bank Taib Bank UCO Bank Union Bank of India United Bank of India United Bank Of India United Western Bank UTI Bank

OVERVIEW
ICICI Bank (formerly Industrial Credit and Investment Corporation of India). ICICI Limited was established in 1955 by the World Bank, the Government of India and the Indian Industry, for the promotion of industrial development in India by giving project and corporate finance to the industries in India. ICICI Bank has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI Bank has financed all the major sectors of the economy. The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the hisave savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular. The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the hisave savings brand is operated), offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population in particular.

ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). 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 service 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.

BUSINESS OBJECTIVES

Vision
To be the leading provider of financial services in India and a major global bank.

Mission
We will leverage our people, technology, speed and financial capital to: be the banker of first choice for our customers by delivering high quality, world-class service. Expand the frontiers of our business globally. Play a proactive role in the full realisation of Indias potential. maintain a healthy financial profile and diversify our earnings across businesses and geographies. Maintain high standards of governance and ethics. Contribute positively to the various countries and markets in which we operate. Create value for our stakeholders.

Product and Services

Service and banking of ICICI bank categorized in to personal banking, business banking and NRI banking services. Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen deposit and children depository account are there for individual customer can also avail of their housing, automobile, farm equipment, business or personal loan scheme. Personal client can also invest in mutual funds and participate in stock trading through ICICI bank. Business banking Business banking services of ICICI Bank are exhaustive. Project financing, deal assessment, and land evaluation are investment banking services offered to corporate clients. Global trade and cash management transaction services facilitate remittances and receipts across important cities. Capital market and custodial services enable business houses to participate in equity trading and transfer across major stock markets of world.

Customer
ICICI bank targets all segment of customer with various types of products and services. I interacted with a a lot of customers and collect their feedback on the given services of company, and feedback are positive response from all point of view. Customers are beneficiary from both sides monetary as well as non monetary. The bank targets to add nearly 500,000 customers under the new scheme in the next one year and plans to offer auto loans through the new online channel in the future, ICICI Bank's Executive Director, V Vaidyanathan, said here. "As of now, nearly 24 per cent of our customer transactions are happening through internet. We are primarily targeting our urban customers, who constitute nearly 70 per cent of our total customer-base," Vaidyanathan said. Customers, opting for the service can also benefit from the quantum optima facility, wherein if the balance exceeds Rs 5,000, the money will automatically be transferred to a fixed deposit scheme, he said. The facility, which also enable customers to transact between an ICICI Bank account and accounts in other banks, is being offered free of cost, he said ICICI bank, presently, has above 2 crore customers. The lender opened nearly 470 branches in the last fiscal. The lender has also plans to launch 'SMS n Cash' scheme later this week under which ICICI account holders can transfer funds to those who do not have a bank account. ICICI bank is strongly committed to protecting the privacy of its customers and has taken all necessary and reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web and it shall not be held liable for disclosure of the confidential information when in accordance with this privacy commitment or in terms of the agreements, if any, with the customers. ICICI bank Endeavours to safeguard and ensure the security of the information provided by the customer. ICICI bank uses 128-bit encryption, for the transmission of the information, which is currently the permitted level of encryption in India. When the information provided by the customers is not transmitted through this encryption, the customer's system (if configured accordingly) will display an appropriate message ensuring the best level of secrecy for the customer's information. The customer would be required to cooperate with ICICI bank in order to ensure the security of the information, and it is recommended that the customers necessarily choose their

passwords carefully such that no unauthorized access is made by a third party. To make the password complex and difficult for others to guess, the customers should use combination of alphabets, numbers and special characters (like! @, #, $ etc.). The customers should undertake not to disclose their password to anyone or keep any written or other record of the password such that a third party could access it. ICICI bank undertakes not to disclose the information provided by the customers to any person, unless such action is necessary to: Conform to legal requirements or comply with legal process; Protect and defend ICICI bank's or its affiliates rights, interests or property; Enforce the terms and conditions of the products or services; or Act to protect the interests of ICICI bank, its affiliates, or its members, constituents or of other persons.

Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. It is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Customer satisfaction occurs when the acquisition of products and /or services provides a minimum negative departure from expectations when compared with other acquisitions and when the marginal utility of a transaction is equal to or greater than preceding acquisitions.

Customer satisfaction occurs when the perception of the reward from the purchase of goods or services by the customer meets or exceeds his/her perceived sacrifice. The perception is a consequence of matching past purchase and consumption experience with the current purchase.

Customer Service and Satisfaction: When we talk about customer service and/or satisfaction, we talk about creativity. Creativity allows us to handle or diffuse problems at hand or later on rather in the process of conducting the everyday business. We talk about how, or what, does the organization have to do to gain not only the sale but also the loyalty of the customer. We want to know the payoff of the transaction both in the short and long term. We want to know what our customers Want? We want to know if our customers are satisfied. Satisfaction, Of course, means that what we delivered to a customer met the customers Approval. We want to know if customers are

delighted and willing to come Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in their writings. Fleiss has written about Ben and Jerrys ice cream and Feldman has discussed excellence in a cab ride. As important as delightfulness is, some of us minimize it, or even totally disregard it. At this point, we fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:

Employees must adhere to a rigid chain of command Employees are closely supervised Conflictin whatever formis not allowed Rewards are based on carrot-and-stick principle

Wrong objectives are measure.

We must understand customer expectation levels concerning quality. We must also understand the strategy for customer service quality, and next we must understand the measurement and feedback cycles of Customer satisfaction. The customer is the person or unit receiving the output of a process on the system. In fact, it is worth emphasizing that a customer can be the immediate, intermediate, or ultimate customer. Also, a customer may be a person or persons, or a process or processes. Customer satisfaction, however, is when the customer is satisfied with a product/service that meets the customers needs, wants, and expectations. There are at least three levels of customer expectations about quality:

Level 1. Expectations are very simple and take the form of assumptions, must have, or take it for granted. For example, I expect the airline to be able to take off, fly to my destination, and land safely. I expect to get the correct blood for my blood transfusion and I expect the bank to deposit my money to my account and to keep a correct tally for me. Level 2. Expectations are a step higher than that of level 1 and they require some form of satisfaction through meeting the requirements and/or specifications. For example, I expect to be treated courteously by all airline personnel. I went to the hospital expecting to have my hernia repaired, to be in some pain after it was done, to be out on the same day, and to receive a correct bill. And I went to the bank expecting the bank teller to be friendly, informative, and helpful with my transactions. Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some kind of delightfulness or a service that is so good that it attracts me to it. For example, an airline gives passengers traveling coach class the same superior food service that other airlines provide only for first-class passengers. In fact, I once took a flight where the flight attendants actually baked cookies for us right there on the plane. When I went to the hospital, I expected staff to treat me with respect and they carefully explained things to me. But I was surprised when they 76 Ankur PGDM

called me at home the next day to find out how I was doing. And at my house closing, the bank officer, representing the bank holding my mortgage, not only treated me with respect and answered all my questions about my new mortgage, but just before we shook hands to close the deal, he gave me a housewarming gift.

Research objective
1. To draw the comparative analysis of ICICI BANK Ltd with SBI etc. 2. To identify the major attributes of customer satisfaction. 3. To study customer perception about ICICI BANK Ltd. 4. To identify and study the various ways of ensuring customer satisfaction adopted by ICICI BANK Vs HDFC & SBI.

RESEARCH METHODOLOGY

Data Collection Techniques: This project consists of two parts. The first part is a study of the banking industry, ICICI Bank using secondary data sources. This secondary information has been sourced from the internet and from business related magazines and newspapers. The second part of the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. For the collection of primary data

this was the only method used. The reason I used this method is because a need was felt for the free influx of information about the products. Also this method allowed the use of skills gained in class. Sample Design: The population considered for the purpose of the survey was people residing in Delhi and the National Capital Region (NCR). Sampling Technique Used: Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. I administered the questionnaires.

Sample Size: I have restricted the sample size to 50 respondents. This was done keeping in mind the time constraints and the fact that I felt that this number would be enough to serve the information needs required to show the trends.

Questionnaire
Dear SIR/MADAM, I am conducting survey on ICICI. I shall be very thankful to give your few minutes to me for answering my few questions below.

Name:

Fe

Add: Contact no: Gender Male E-mail Id : Group: 1825 55+ 2535

male 35 45 4555 Age

Occupation: Journalist Student Professional Retired Person Technical expert Other, please specify: Income: +10 laces 1 laces 13 laces 35 laces 57 laces 710 laces

1:-WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO OPEN BANK? (a) ATM cum DEBIT Cards (b) Cheque Book (c) Internet Banking/ Phone Banking (D) Working Hours (e) Value Added Services

2:-Which TYPE OF SERVICE PREFERS THE MOST by you? (a) ATM SERVICE (b) INTERNET BANKING (c) MOBILE BANKING (d) CORE BANKING (e) Retail Banking

3:-Which of following banks do you have account? (a) ICICI Bank (b) SBI Bank (c) HDFC BANK (D) Axis Bank (e) Other Pls specify

4:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK? (a) Saving (B) Current (c) Fixed (d) NRI (e) Others Pls specify 5:-How many services offered by your banks? (a) D-Mat A/C (b) Mutual Funds

(c) e-Instructions (d) LI & GI (e) Digitally Signed Statement

6:-How would you know about these services? (a) Advertisements (b) Friends and Relatives (c) Direct Selling Agents (d) Others Pls specify

7:-What the people think about the Banks? (a) Necessity for protection security (b) Imposition of a burden of expenses (c) A compulsory tool for SAVING (d) Others Pls specify

8:-What a respondent see in purchase of new plan from Banks? (a) Standing and goodwill of the company (b) Product range of the company (c) Advertisement being released by the company (d) Services being given by the company

9:-Is ICICI Bank Provide better facilities than SBI & HDFC Bank? Page | 104 Ankur PGDM

(a) Yes (b) No (c)Can`t Say

10:-Do you know what type of value added services provide by ICICI BANKS? (a)-Young star (b)-Senior citizen (c)-Pre paid card (d)-Recurring deposits (e)-other 11:-How would you rate product offered ICICI Bank than other? Low 1 2 3 4 5 High

12:-How would you rate product service / product vs. cost by ICICI Bank? Low 1- 2 -3 -4 -5 High

13:-How would you divide 100 points on the basis of service provide by ICICI Bank? (a)-Less formality (b)-Flexibility (c)-Less documentation (d)-others

14:-How would you rate services offered by ICICI Bank? (a) Extremely Satisfied (b) Satisfied (c) Moderate (d) Dissatisfied

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(e) Extremely Dissatisfied

15:-Would you like any recommendation to ICICI Bank?

Bibliography www.rbi.org.in www.moneycontrol.co m www.nseindia.com www.icicibank.com www.google.com Economic times Business world

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