POTHALA PRASAD (Regd.No. 20854100035) Under the esteemed guidance of K.L.CHANDU, MBA.
Faculty Member In M.B.A Department
CERTIFICATE
This is to certify that project report entitled A STUDY ON CUSTOMER SATISFACTION - RETAIL BANKING PRODUCTS with reference to ING VYSYA BANK LIMITED, KAKINADA is a bona fide work done by P.PRASAD with Regd. No.20854100035 under my guidance and supervision during May to June 2009. This project is submitted to ANDHRA UNIVERSITY in partial fulfillment of the award of degree of MASTER OF BUSINESS ADMINISTRATION.
External Examiner
DECLARATION
I here by declare that this project report entitled A STUDY ON CUSTOMER SATISFACTION-RETAIL BANKING PRODUCTS with reference to ING VYSYA BANK LIMITED , KAKINADA has been prepared by me during the year 2009 in the month of May and June is partial fulfillment of the requirement for the award of Degree of MASTER OF BUSINESS ADMINISTRATION of ANDHRA UNIVERSITY.
I also declare that this project is a result of my own effort and that it has not been submitted to any other university for the award of any Degree or Diploma.
Place: SURAMPALEM
P.PRASAD
Date:
Regd.NO.(20854100035)
ACKNOWLEDGEMENT
P.G.STUDIES for his valuable support in doing this project. I feel happy to thank, Head of the Department, and Department of Management Studies for providing me her valuable guidance and expertise in successful completion of this project. I thank my project guide, K.L.Chandu faculty member in M.B.A providing me his valuable guidance and expertise in successful completion of this project. I thank my project internal guide Mr. K.V.Venkateswara rao (Sales Manager) who shows infinite patience and perseverance in teaching, suggesting remedies for the problems encountered in my project and in answering all my questions. I also extend my heartfelt thanks to my friends for their cooperation during my entire project period.
P.PRASAD
CONTENTS Chapter I: Introduction Objectives Scope of the study Methodology Limitations Chapter II: Industry Scenario Profile of Banking Industry Profile of Indian Banking System Chapter III: Company Profile Profile of ING VYSYA Bank Ltd Corporate Social Responsibility Performance Highlights Chapter IV: Banking Products Chapter V: Alternative Channels Chapter VI: Data Analysis & Interpretation Chapter VII: Findings, Suggestions & conclusion 76-77 52-75 47-51 31-46 20-30 13-19 1-12
78-82
CHAPTER-1
Introduction Objectives Scope of the study Methodology Limitations
INTRODUCTION
In order to satisfy the needs of customers, a business concern must have appropriate marketing mix. Marketing mix refers to the combination of four basic elements, i.e.., product, price, promotion and the place, known as the four Ps of marketing after that those Ps are extended up to 7Ps. These seven elements constitute the core of a companys marketing efforts. They are closely interrelated because decisions in one area usually affect actions in others. Every business concern must determine its marketing mix in an appropriate manner, so as to meet the requirements of customers with regard to product, price, and availability of product in a suitable place, etc.., If the marketing mix is designed in a appropriate manner, it helps a firm to meet the present and future needs of an identified market and realize its profit goals. The elements of the marketing mix are: 1. Product mix 2. Price mix 3. Promotion mix 4. Place mix 5. People 6. Process 7. Physical Evidence
PRODUCT MIX:
The word Product mix is used to describe the assortment of different product types (product lines) and their varieties (product depth). In addiction, different tangible and intangible features of the product also form the product mix. A firm may be producing many types of products and in different varieties. For example the FMCG giant HLL is engaged in producing detergents, toilet soaps, cosmetics, oral care products, tea powders, etc.., Moreover, in each segment e.g., soaps, it offers many bands with different features at different prices. This is mainly to meet different market segments.
TYPES OF PRODUCTS: 1. CONSUMER PRODUCTS: - Goods bought by individual households without requiring further
processing are known as consumer goods. These can be further categorized as:
DURABLE GOODS:
which survive many uses and have relatively long life (e.g..,
NON DURABLE GOODS: which are consumed in one or a few uses and last a relatively
short period (e.g. soft drinks, soaps, bread)
CONVENIENCE GOODS:
SHOPPING GOODS:
garments, furniture, etc..,)
2.
PRICE MIX: Price mix refers to the decisions relating to the price charged for the product, service or idea. Price means the money value that the customer has to pay in exchange for a product. Generally, marketers pay attention to the following factors before fixing the price of a product i. ii. iii. iv. Target customers: How much they will buy at various processes. Cost: How much it costs to produce and market the product. Competition: Intense competition may indicate a low price and vice versa. Discounts and allowances: how much of the price could be allowed as incentives to dealers and customers in the form of discounts. v. The profit margin to be maintained. - Pricing decisions are extremely important as they greatly influence the
PRODUCT PRICING:
profitability of a firm. Moreover, price is perhaps the handiest tool available to a firm to adopt its marketing strategy to changes in demand, costs, and competitive situation. Many factors, economic and non economic, influence the pricing decisions. These are: a. Cost b. Demand c. Competition d. Government regulations e. Behavior of the consumers, and f. Objectives of the enterprise.
g.
PRICING METHODS:
enterprise can adopt any one of these methods depending upon the above mentioned economic and non economic factors. The important pricing methods are: a.
added up, both fixed and variable, and cost per unit is found. Then a margin of profit is added to determine the selling price. b.
PERCEIVED VALUE PRICING: according to this, the products priced on the basis of the
buyers perceptions of product rather than the cost of production.
c.
price. The smaller firms always tend to follow the leaderand price their product more or less equal to the price of the leading product. This is most popular method of pricing and ensures competition. d.
ODD PRICING:
setting the price at extreme higher end of a particular lower price range
instead of the beginning of the next higher price range. The best example can be taken is Bata pricing (e.g. pricing at Rs.299.95 instead of Rs.300.00). e.
DISCRIMINATING PRICING:
to two different classes of customers) is known as discriminating pricing. Under certain conditions firms adopt this method of pricing.
3. PROMOTION MIX:
Promotion mix refers to the activities relating to promotion of the product, service or idea. It consists of all activities aimed at persuading and motivating customers to buy the product. The various elements of the promotional mix are:
1.
ADVERTISING:
information to customers. The product message is communicated through media (newspapers, radio, television, etc.) and is paid for by the seller. 2.
SALES PROMOTION:
demonstrations, contests, coupons, etc. sales promotion activities aim at supporting personal selling and advertising efforts. 3.
PERSONAL SELLING:
seller and a buyer. Sales contacts are made with the customers by company sales representatives. These representatives assist and persuade a prospective buyer to buy a product in a face to face situation.
4.
PUBLICITY:
journals, newspapers, radio, etc. which is not paid for. Publicity is a relatively minor form of promotion because the manufacturer has no control over what the media will mention. Usually, a favour-able report by the new media on a company product often will carry more weight then a paid advertising message.
4. PLACE:
Place or physical distribution mix refers to the activities that are involved in transferring ownership to consumers and to make products or services available at the right time and place. Distribution mix consists of two things 1) Physical distribution. 2) Channels of distribution. Physical distribution includes all those activities involved in moving products or services from producer to consumer. The channels of distribution are those routes through which goods move from the producer to the consumer. Here, the marketing manager has to decide whether the firm should sell through middlemen or directly to consumers.
5. PEOPLE:
An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgements and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for. Many British organizations aim to apply for the Investors In People accreditation, which tells consumers that staff are taken care off by the company and they are trained to certain standards.
PRODUCT MIX
PRICE MIX
PLACE MIX
PROMOTION MIX
6. PROCESS:
Process refers to the systems used to assist the organization in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company.
7. PHYSICAL EVIDENCE:
Physical Evidence is the element of the service mix which allows the consumer again to make judgements on the organization.
Contents
Pricing policies
Distribution channels
Advertising
Features Quality
Technology
Inventory levels
Personal selling
Positioning
Public relations
Packaging
Direct responses
OBJECTIVES
1) To understand and analyze the services of ING VYSYA BANK LTD, Kakinada. 2) To get awareness of various products and services in detail of ING VYSYA BANK LTD, Kakinada. 3) To know the customer satisfaction by services provided by the ING VYSYA BANK LTD, Kakinada. 4) To know the customers suggestions to improve the services provided by the ING VYSYA BANK LTD, Kakinada. 5) To make certain recommendations/ suggestions for better technical utility for better customer satisfaction.
The scope of the present was confined and narrowed to the following limits. 1. The study was conducted in various places of Kakinada, and surrounding Places like Dowaleiswaram, Bommuru etc..,. 2. The study considered only the opinion of only a few customers of ING VYSYA BANK LTD. 3. To know about the quality of services provided by ING Vysya Bank ltd. 4. To study the impact of services on customer satisfaction.
PERIOD OF STUDY:
The study is performed for 45 days i.e., from 15 May, 2009 to 30 June, 2009.
METHODOLOGY
SURVEY METHOD:
The survey is conducted by directly interacting with the marketing manager and existing and the new customers of the ING Vysya Bank ltd with a structured questionnaire.
SOURCES OF DATA:
The data has been collected from both primary and secondary services, to get information regarding the company and the products.
PRIMARY DATA:
Primary data has been collected through questionnaires. The questionnaire was most related to the impact of services provided by the bank and satisfaction levels felt by the customers.
SECONDARY DATA:
Secondary data has been taken from internet and companys website.
SAMPLING:
The customers in the Kakinada city only are taken as target population for the study.
LIMITATIONS
Though the present study aims to achieve the above-mentioned objectives in full earnest and accuracy, it may be hampered due to certain limitations. Some of the limitations of this study may be summarized as follows:
Locating the target existing customers of ING VYSYA BANK LTD, Kakinada is very time consuming. Sample size is limited to 110 and the limited period is allocated for the survey. Getting accurate responses from the respondents was difficult due to their inherent problems. The survey is costly , tedious and time consuming.
CHAPTER-2
Industry Scenario Profile of Banking Industry Profile of Indian Banking System
INTRODUCTION:
Todays Economys main deliberation depicts the banking sector. Banking industry has changed drastically in the last decade. The range of products that the bank delivers has drastically improved. However the core functions of the bank remain the same like before. There are five powerful forces which created the foundation for a dynamic new environment for the banks. The five forces are 1. Deregulation 2. Financial innovation 3. Securitization 4. Globalization 5. Advances in technology
HISTORY:
For centuries, banks have played an important role in the financial system of any economy. The vital role continues even today although the forms of banking have changed with the changing needs of the economies. The practice of depositing personal valuables at these places, which were also functioning as treasures against a receipt, was perhaps the earliest form of banking. When coins made of precious metals like gold and silver emerged as commonly accepted form of wealth, lending activity at an interest began. Goldsmiths were the initial bankers and their receipts for money received-guaranteed payments or goldsmiths receipts were the earliest form of banking instruments. Revilpout, a French writer mentions about banks and bank notes in Babylon in 600 BC. The origin of banking lies in the business of money changing in the ancient period. Another factor that supported the emergence of banks in the early period was the need for borrowing by monarchial governments from the finance companies.
In India, money economy existed since the days of Buddha. Banking in India flourished in the ancient Vedic times. Even in Rig Veda, there was a mention about indebtedness and the earliest Dharma shastra laid down the rate of interests and other regulations governing debts and mortgages. With the expansion in trade and commerce, the concept of banking gained importance. The handling of banking gradually transcended from individuals to group and later to companies. With the industrial revolution of the 18th and 19th centuries, it attained more significant place in the area of lending. Banks in their first primitive beginnings and later in more developed form did not enjoy a
steady and harmonious growth. Banking emerged and evolved through various phases adapting itself continuously to meet the increasing needs of trade and commerce.
During the Moghul period the indigenous bankers played a very important role in lending money, and financing foreign trade and commerce in India. During the British rule, the agency houses carried on the banking business. The Hindustan bank was the first bank to be established in 1779 and later the general Bank of India was established in 1986. In the first half of the 19 th century the east India company established three banks; the bank of Bengal in 1809, the bank of Bombay in 1840 and bank of madras in 1843, which were known as presidency banks. These three banks were amalgamated in 1920 and a New bank the imperial bank of India was established on 27 th January 1921. With the passing of the state bank of India act in 1955, the undertaking of the imperial bank of India was taken over by a newly constituted state bank of India. The reserve bank, which acts as the central bank was established in 1935 by passing the reserve bank act 1934. The swadeshi moment gave a fillip to Indian joint stock banking and several of the present leading banks were established around this time. However by 1913, there were 41 Indian banks in the field namely, the Punjab national bank ltd, bank of India ltd, Canara bank ltd, Indian bank ltd, bank of Baroda ltd, etc. modern banking in India started at the end of the 18th century with the establishment of bank of Calcutta in 1806, followed by the banks managed mostly from Scotland.
State bank group (which include SBI and its 7 associate) Nineteen nationalized banks Regional rural banks sponsored by public sector banks
Old & new generation private banks Foreign banks in India Scheduled co-operative banks Non- scheduled banks
Central Co-operative Banks State Co-operative Banks Primary Agricultural Credit Societies Land Development Banks Urban Co-operative Banks State Land Development Bank
DEVELOPMENT BANKS:
Industrial Finance Corporation of India (IFCL) Industrial Development Bank Of India (IDBI) Industrial Credit & Investment Corporation Of India (ICICI) Industrial Investment Bank Of India (IIBI) Small Industries development Bank Of India National Bank For Agricultural & Rural Development (NABARD) Export-Import Bank Of India (EXIM) National Housing Bank
The Indian banking system has come a long way with several outstanding achievements to its credit. The most striking of which is its reach. An extensive banking network has been established after nationalization, and the banking system is no longer confined to the metropolitan cities and large towns. In terms of the number of branches, Indias banking system is one of the largest in the world.
Partial list of the financial sector reforms mooted by the government in 1992-1996. Bank norms were liberalized and were given the freedom to decide levels of holding of individual items of inventories. Ceiling on term loans was raised to Rs.10,000 million for projects involving expansion / modernizing of power generation capacities. Banks were allowed to set their own interest rate on post-shipment export credit for over 90 days.
Deregulation of interest rates on loans over Rs.2,00,000 against term deposits and on domestic deposits with maturity periods over two years.
Banks were allowed to fix their own foreign exchange open position limit subject to RBI approval. Guidelines were issued to the banks to ensure qualitative improvement in there customer service.
Banks have started selling their customers online banking and consultation services to add both values to there service and to satisfy their customers. But even after selling a series of financial transactions to the customers on the internet, the customer needs a good reason to retain. Furthermore, at once end the interaction between the bank and its customers has become less, and on the other, scores of financial institutions have burgeoned and are trespassing into the arena of banking. During the late nineties, most banks focused upon re-engineering the existing and introduced new ways of customer service. This tells us how the technology and customer service should go hand in hand.
CHAPTER-3
Company Profile Profile of ING VYSYA Bank Ltd Corporate Social Responsibility Performance Highlights
Year
1930
Events
Set up in Bangalore
1948
Scheduled Bank
1985
1987
1988
1990
1992
1993
1993
Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion Cash Management Services, & commissioning of VSAT. Golden Peacock Award for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998)
1996
1998
State -of - the -art Date Centre at ITPL, Bangalore. RBI clears setting up of ING Vysya Life Insurance Company
2000
2001
The Bank launched a range of products & services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.
2002
ING takes over the Management of the Bank from October 7th , 2002
2002
RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02
2003
Introduced customer friendly products like Orange Savings, Orange Current and
2004
2005
Introduced Solo - My Own Account for youth and Customer Service Line Phone Banking Service
2006
Bank has networked all the branches to facilitate AAA transactions i.e. Anywhere, Anytime & Anyhow Banking
In terms of pure numbers, the performance over the decades can better be appreciated from the following table:
Year 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Networth 0.001 1.40 1.60 3.00 11.50 162.10 5900.00 6527.00 6863.24 7067.90 7473.20 7094.00 10196.70 11101.90 14260.00 17366.00
Deposits 0.400 5.30 20.10 91.50 1414.30 8509.40 74240.00 81411.10 80680.00 91870.00 104780.00 125693.10 133352.50 154185.70 204980.00 243892.00
Advances 0.400 3.80 13.50 62.80 813.70 4584.80 39380.00 43163.10 44180.00 56120.00 69367.30 90805.90 102315.20 119761.70 146500.00 163200.00
Profits 0.001 0.09 0.13 0.74 1.13 50.35 443.10 371.90 687.50 863.50 590.01 (381.80) 90.6 889.0 1569.00 1821.00
Outlets 4 16 19 39 228 319 481 484 483 456 523 536 562 626 677 728*
Outlets comprises of 407 branches, 39 ECs, 28 Satellite Offices and 203 ATMs as of March 31st 2009. Additionally bank also has Internet Banking, mi-b@nk and Customer Service Line for Phone Banking Service.
On the other hand, ING group originated in 1990 from the merger between Nationale Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Groep NV. Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V..
PROFILE:
ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialisation is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself
internationally as a provider of employee benefits, i.e. arrangements of nonwage benefits, such as pension plans for companies and their employees.
MISSION:
ING`s mission is to be a leading, global, client-focused, innovative and low-cost provider of financial services through the distribution channels of the clients preference in markets where ING can create value.
BOARD OF DIRECTORS Name (Sri) K R Ramamoorthy, Non-Executive Part-time Chairman Vaughn Richtor, MD & CEO Arun Thiagarajan, Director Aditya Krishna, Director Philippe Damas Director Wilfred Nagel Director Richard Cox, Director Ryan Andrew Padgett, Director Ramakrishnan Subramanian, Director Santosh Ramesh Desai, Director
Names
Designation
SBU/Function
Place
Ashok Rao B
Chief of Staff
Bishwajit Mazumder
Chief Corporate Audit Group Chief Operating Officer Chief Risk Officer, Country Head - Wholesale Banking Chief Finance Officer
Bangalore
Don Koch
Operations
Bangalore
22, M G Road, Bangalore - 560 001. 22, M G Road, Bangalore - 560 001. 702-B, Poonam Chambers, "A" Wing, 7th Floor, Dr A B Road,Worli, Mumbai - 400 018 22, M G Road, Bangalore - 560 001. 22, M G Road, Bangalore - 560 001. ING Vysya Bank Ltd Private Banking 17, Lincoln Lodge Alta Mount Road,Mumbai 400 036. 22, M G Road, Bangalore 560 001 22, M G Road, Bangalore 560 001
Bangalore
Janak Desai
Jayant Mehrotra
Bangalore
Prasad J M
Chief - Human Human Resources Resources Country Head - Private Banking Country Head - Retail Banking MD & CEO
Bangalore
Samir Bimal
Private Banking
Mumbai
Uday Sareen
Retail Banking
Bangalore
Vaughn Richtor
Bangalore
ING Vysya Foundation was set up almost three years ago actively supported by the three business units of ING Vysya (ING Vysya Bank, ING Vysya Life Insurance and ING Vysya Mutual Fund) to promote its Corporate Social Responsibility. The mandate for the Foundation is to promote primary education for under privileged children. This fits in well with ING Groups global vision of empowering children through education and INGs partnership with UNICEF. Accordingly, ING Vysya Foundations commitment to empower children through primary education has been the focus in the last three years. In a country with an estimated 50 million children deprived of basic primary education and health care, enormous support, dedication and firm belief is necessary to make a difference and to change the scenario. The foundation's efforts have very successful in reaching out to underprivileged children and providing them with a platform to learn, grow and achieve through partnerships with 4 non profit organizations located in India. ING Chances for Children - Global initiative
BACKGROUND:
ING Chances for Children is an ING worldwide corporate program that aims to give 50,000 children in India, Brazil and Ethiopia access to education before the end of 2007 and to improve the quality of education in the local communities in which ING businesses are active.
The main targets of the ING Chances for Children program are
To provide primary education for 50,000 children over a period of three years. To improve the quality of education in the communities in which ING businesses are active. To involve as many of the ING Groups 115,000 employees as possible, either as ambassadors, volunteers or donors
By starting local community development initiatives with ING employees and by working together with organizations such as UNICEF, the ING Chances for Children program aims to contribute to the goal of achieving primary education for all children, as stated in both the United Nations Millennium Development Goals and the Convention on the Rights of the Child.
UNICEF PARTNERSHIP:
The ING Chances for Children program has joined forces with UNICEF, the United Nations Childrens Fund, to achieve the target of giving 50,000 children access to education. The program will be supporting educational UNICEF projects in India, Brazil and Ethiopia. The partnership with UNICEF will also enable the local ING business units to team up with local UNICEF offices and take advantage of each others unique positions at a community level. A range of other projects and partnerships with other organizations will be started, both internationally and locally.
NET-INTEREST INCOME
12% increase in Net Interest Income (NII) to Rs 498.4 crore in 2008-09 from Rs 445.6 crore in 2007-08
OTHER INCOME
PROFIT
Rs 156.9 crore after tax profit in 2008-09 compared to a profit of Rs 88.9 crore in 2007-08, an increase of 77%
Growth in Advances
And Deposits
Gross and Net NPA Declining Net NPA from 0.95% in 2007-08 to 0.70% in 2008-09
CHAPTER-4
Banking Products
SAVINGS ACCOUNTS:
The Savings accounts are primarily meant to inculcate a sense of saving for the future or accumulation of funds over a period of time. These accounts are meant to help customers protect their money and provides them with instruments that help them make easy payments without handling / carrying cash. Whatever occupation, we are confident that our customers will find the perfect banking solution through our savings accounts. The rate of interest on the Savings accounts is regulated by the Reserve Bank of India and is currently at 3.5 % per annum. The interest earned from SB accounts is exempt from Tax deduction at source
KEY FEATURES:
Quarterly Average Balance of Rs. 5000/- to be maintained in the account. Free Unlimited ATM transactions on all ING Vysya ATMs. Free Unlimited ATM transactions at over 20,000 other bank ATMs in India. Free issue and unlimited usage of multi-city Payable at Par cheques by default. AAA Cash deposits for OSB account holders are provided free of cost up to two transactions with a value not exceeding Rs. 50,000/- per month. Free International Debit Card for the first year, with a renewal fee of Rs. 150/- from the second year. Free Electronic Bill Payment service at select centers. Free Personal Assistance Service - Smartserv at select centers. Free Statement of Account through E-mail. Mi-b@nk - Internet banking facility. Free Customer Service Line facility.
Free for life Credit Card based on the applicants eligibility.
TARGET SEGMENT:
Individuals. Guardians on behalf of minors. Clubs, Associations, Trusts, Charitable & Religious Institutions.
Hindu Undivided Family (non-trading account).
DOCUMENTATION:
Customer Information File
Account Opening Form. Identity Proof. Address Proof. Customer Due Diligence as per KYC norms
KEY FEATURES:
The Quarterly Average Balance requirement - (Zero).
No Service Charges is levied for non-maintenance of minimum quarterly average balance. International Debit Card is issued free, for the first year. Free Unlimited ATM transactions on all ING Vysya Bank ATMs. Free 4 ATM transactions (financial/non-financial) per month at over 20,000 other Bank ATMs in India. Shopping convenience at over 2 Lakh merchant locations. Free issue of normal personalized MICR cheques. AAA Cash deposits restricted to two transactions with a value not exceeding Rs. 25,000/per month. Free Electronic Bill Payment service at select centers. Free Transfer of funds across all branches. (AAA Banking) Free Statement of Account through E-mail at no charge. Free Internet banking facility through Mi-b@nk.
KEY FEATURES:
Zero Balance Account.
Free Unlimited ATM transactions on all ING Vysya ATMs. Free Unlimited ATM transactions at over 20,000 Cirrus / Cash net ATMs in India. Free International Debit Card. Shopping convenience at over 200,000 merchant locations, with the ING Vysya International Debit card. Free issue and usage of multi-city personalized Payable at Par cheques. Free unlimited usage of PAP cheques. Free Electronic Bill Payment service at select centers. Free Transfer of funds between accounts across all branches. (AAA Banking) Free Personal Assistance Service - Smartserv at select centers. Free Statement of Account through E-mail. Customer RTGS transactions at concessional rates.
Mi-b@nk - Internet banking facility. Customer Service Line facility. Free joint account status. Free add-on International Debit Card is provided to the joint account holder. Free for life Credit Card based on the applicants eligibility.
Adhoc Checkout* (Temp Overdrawing) to the extent of 50 % of the last salary credit charged at 18 % p.a and for the number of days overdrawn.
KEY FEATURES:
Zero Balance Account. Free Unlimited ATM transactions on the ING Vysya and Corporation Bank ATM network. 6 Free ATM transactions per month at over 20,000 Cirrus / Cash net ATMs. Free ING Vysya International Debit Card. Shopping convenience at over 200,000 merchant locations. Free issue of personalized cheques books. Free 2 D.Ds / Pos not exceeding a value of Rs. 10,000/- per month. Free transfer of funds across all the branches of ING Vysya Bank. Free Bill Pay service at select centers. Free statement of account through e-mail. Internet banking facility (Mi-bank).
PRODUCT DEFINITION:
The General Savings Account had a quarterly average balance requirement of Rs. 5,000/- in the account, similar to the Orange Savings Account. Due to geographical demography and customer profile, the customers at these locations were not inclined to maintain Rs. 5,000/- as the quarterly average balance. To be in line with competition, we have made a Gen SB variant with a QAB requirement of Rs. 2,500/- for customers at Semi Urban locations only
KEY FEATURES:
A Savings bank account with a QAB requirement of Rs. 2500/-.
Penalty for non-maintenance of minimum quarterly average balance = Rs. 150/- per quarter exclusive of service taxes. One free cheques book will be issued to all customers per year. Additional cheque book will be charged at Rs. 50/- per cheque book of 25 leaves. Free Debit Card will be issued. Free unlimited usage of ING Vysya Bank ATMs. All ATM transactions on other Bank ATMs will be charged at Rs. 30/- per transaction, exclusive of service charges. Six free cash transactions per month at the base branch. Beyond 6 free transactions at the base branch every transaction will be charged at Rs. 20/per transaction. AAA transactions permitted subject to service charges as per the schedule of charges.
KEY FEATURES:
A Savings bank account with a QAB requirement of Rs. 2500/-. Penalty for non-maintenance of minimum quarterly average balance = Rs. 75/- per quarter exclusive of service taxes. One free chequebook will be issued to all customers per year. Additional chequebook will be charged at Rs. 50/- per chequebook of 25 leaves. Free unlimited usage of ING Vysya Bank ATMs. All ATM transactions on other Bank ATMs will be charged at Rs. 30/- per transaction, exclusive of service charges. Six free cash transactions per month at the base branch. Beyond 6 free transactions at the base branch every transaction will be charged at Rs. 20/per transaction. AAA transactions permitted subject to service charges as per the schedule of charges. Free Internet Banking. Free Phone Banking.
KEY FEATURES:
A Savings bank account with a minimum balance requirement of Rs. 500/- in the account. Penalty for non-maintenance of minimum quarterly average balance = Rs. 150/- per quarter exclusive of service taxes. Free issue of Debit Card. Free unlimited usage of ING Vysya Bank ATMs. 30 free transactions on the HDFC/Corporation bank ATMs per annum. AAA transactions permitted subject to service charges as per the schedule of charges. Smartserv & SMS alerts are charged at Rs. 100/- per annum. Free Internet Banking. Free Phone Banking.
Free annual statement of account.
Identity Card of Institution where student is studying. Introduction letter from the Head of the Institution with attestation on the AOF Customer Due Diligence as per KYC norms.
KEY FEATURES
Free Demand Drafts/Pay Orders/PAP Cheques/RTGS/EFT/NEFT up to a limit of Rs. 50 lakhs per month*. Free anywhere cash deposit up to a limit of Rs.50, 000 per day (Maximum Rs.5.00 per month) * Free collection of cheques across all networked branches (cheques are to be banked directly by customer/his representative)* Free International Debit Card in the case of Individuals/Proprietary concerns/Partnership Firms authorized to operate the account*. Access to ATM network of other Banks (cirrus network) * Free unlimited usage of ING Vysya ATMs. Free Customer service line on toll free No.1800 425 9900. Free Mi-bank facility to Individuals/Proprietorship Concerns/Principal Applicant in case of Partnership Firms (at the option of the customer) Free SMS alerts at select centers* (at the option of the customer) Free monthly statement of accounts (physical/e-mail) PAP (Payable At Par) cheques and general chequebook available; both Personalized to enhance value*. Free Financial Advisory Services at select centers.
TARGET CUSTOMERS:
Mid size business segments. Individuals for single account. More than one individual for joint accounts. Sole proprietary concerns. Partnership concerns. Hindu Undivided family. Private and Public Limited Companies. Clubs, Associations, Benevolent and friendly societies. Co-operative organizations. Statutory bodies, municipalities and such other quasi-Government institutions. Executors and administrators. Trustees/Agencies/Power of Attorney Holders.
KEY FEATURES:
Transactional convenience on account of automation at Profile branches. VALUE ADDITIONS TO THE ACCOUNT HOLDERS: Personalized Cheque books. International Debit Card. Mi-bank - net banking services. Phone Banking at select centers. Bill Pay at select centers. Demat Account (on request) Access to a wide network of ING Vysya Bank as well as non-ING Vysya Bank ATMs in India and abroad. Investment Advisory Services at all metros and select centers. Possibility of many other banking facilities, depending on the needs and net worth of the account holder.
TARGET CUSTOMERS:
Individuals for single account. More than one individual for joint account. Sole proprietary concerns. Partnership concerns. Hindu Undivided family. Private and Public Limited companies. Clubs, associations, benevolent and friendly societies. Co-operative organizations. Statutory bodies, municipalities and such other quasi-Government institutions. Executors and administrators. Trustees/ Agencies/ Power of Attorney holders.
KEY FEATURES:
Any resident can be a joint account holder. Facility of Multi-city/Multi-branch banking, if opened in any of the networked branches. Local income can be credited to the account. Inward remittances from abroad by way of TTs/Cheques/DDs/IMOs/ACH/FCs/TCs are allowed to credit in the account. Local rupee deposits can be made through cheque. RBI determined rate of interest, payable half-yearly. The interest earned on this account is taxable under Indian I.T.Act. Interest is repatriable after tax deduction at source. Withdrawals in this account are freely allowed for local disbursements. Easy transfer of funds between accounts within the Bank allowed. International Debit Card- But it should be used in India only. Mi-b@nk - net banking services. BillPay at select centers. Phone Banking at select centers. Smartserv at select centers.
Demat Account (on request). Access to a wide ATM Network of ING Vysya Bank as well as non-ING Vysya Bank ATMs in India. Nomination is permitted.
Investment Advisory Service at all metros and select centers.
Target Customers
Non Resident Indians. Person of Indian Origin staying in abroad. Foreign Nationals on temporary stay in India. Students who are studying & staying abroad for more than six months
CHAPTER-5
Alternative Channels
ING Vysya Bank currently has 215 ATMs across the country.
All ING Vysya Bank ATMs accept cards with the following logos:
The customer can call us at 1800 425 9900 from any BSNL / MTNL landline telephone. Apart from these, we can be reached at the following numbers given below.
Services Available at the Customer Service Line Through Customer Service Officer
Providing general information to customers: Product information - e.g., Orange, Sambandh etc Process related - chq clearing time, wire transfer etc
ATM/Branch - ATM clearing time, guidance Account Balance on usage, location etc Charges - draft charges, NRV service charges etc Servicing customer complaints - i.e. logging in complaints and tracking until resolution Providing account information to customers Account Balance Last five transactions OD a/c limits, interest rates Term Deposit interest rates Last five transactions
Processing requests
Bank statement (mail/fax) Cheque Book Hot listing cards call would come to an agent on top priority Fund transfer Change of Tpin
Card status Account Transactions Providing Demat Related information to the client
Processing requests
Bank statement (mail) Chequebook Hot listing cards TDS certificate Request for TPIN Request for Debit card PIN Request for Mi-b@nk PIN Lead capturing Cross selling and passing leads to respective channel Taking Transaction Advice request and passing on to advisors Outbound selling Making sales calls, capturing leads and passing on to respective channel
Accounts can be accessed anytime and from anywhere with ING Vysya Banks online banking service.
With mi-b@nk, customers can view their account details and transact, download statements, request for demand drafts, order a cheque book and much more 7 days a week
CHAPTER-6
Data Analysis & Interpretation
ANALYSIS & INTERPRETATION OF THE QUESTIONNAIRE FOR A STUDY ON SERVICES MARKETING WITH RESPECT TO ING VYSYA BANK. 4.1:- PERSONAL PROFILE Table 4.1.1:- Occupation of the customers NUMBER OF RESPONDENTS 36 4 53 17 110 PERCENTAGE OF RESPONDENTS 32 4 48 16 100
OCCUPATION EMPLOYEE STUDENT BUSINESS MAN OTHERS (HOUSE WIVES, AGRICULTURISTS) TOTAL
PIE CHART:
OTHERS 16%
EMPLOYEE 32%
STUDENT 4%
INTREPRETATION
From the above table it is clear that 48% of the customers are business men, while 32% of the customers are employees, and only 4% of the customers are students. And 16% customers are others i.e.., house wives, agriculturists etc..,
BAR CHART:50 45 40 35 30 25 20 15 10 5 0
BELOW S.S.C
INTERMEDIATE
GRADUATION
POST-GRADUATION
PERCENTAGE OF RESPONDENTS
12
36
44
INTREPRETATION:
Majority of the customers i.e,44% are graduates and 36% of the customers are studied intermediate and12% of the customers are studied up to s.s.c and the remaining8% of the customers have completed their post graduation. This analysis reveals that most of the customers are educated and maximum number people are having minimum education.
ANNUAL INCOME BELOW 60,000 BETWEEN 60,000-1 LAKH BETWEEN 1 LAKH-2 LAKH ABOVE 2 LAKHS TOTAL
PIE CHART:
BELOW 60,000/6% ABOVE 2 LAKHS 16%
INTREPRETATION:
The analysis reveals that 48% of the customers are having annual income in between 60,000/- and 1,00,000/- and 30% of customers are receiving the annual income in between 1,00,000/- and 2,00,000/- and the least of 6% customers are receiving the income below 60,000/-.
ASSOCIATON WITH BANK BELOW 1 YEAR BETWEEN 1-15YEARS ABOVE 3 YEARS TOTAL
PIECHART:
ABOVE 3 YEARS 24% BELOW 1 YEAR 20%
INTREPRETATION:
The ING Vysya bank was opened just 20years back in Kakinada. The analsis reveals that maximum number i.e.., 56% of customers are having 1to 15 years association with bank and 24% of the customers are having more than 5 years association that means these 24% of customers are associated with bank from the beginning itself. And 20% of the customers are in association with bank below 2 year.
PIE CHART:
Sales
UN MARRIED 12 %
MARRIED 88 %
INTREPRETATION:
Majority i.e.., 88% of the customers are married people. And the remaining 12% of the customers are unmarried people
AGE 20-30 YEARS 30-45 YEARS 45-60 YEARS ABOVE 60 YEARS TOTAL
PIE CHART:
Above 60 Years 12%
45 60 Years 30%
INTREPRETATION:
The analysis reveals that 43% of the customers are having age in between between 30-40 years and 30% of the customers are in between the age of 45-60 years and the younger generation i.e.., 20-30 years are of 24% only. But the least of 12% customers are of age more than 60years.
PIE CHART:
URBAN 16%
INTREPRETATION:
Majorities (44%) of customers are from semi urban and 20% of the Customers are from rural region. And the least of 16% of the customers are from urban region. As Rajahmundry was a semi urban region the analysis says that maximum number of people are from local area only.
MALE 84%
INTREPRETATION:
The analysis reveals that 84% of the customers are male gender. And 16% of the customers are female gender. This analysis says that men are interested to do banking rather than women.
Table 4.2:- Details of the type of current account of the customers :TYPE OFCURRENT ACCOUNT GENERAL COMFORT ADVANTAGE ORANGE TOTAL PIECHART: NUMBER OF RESPONDENTS 55 27 19 9 110 PERCENTAGE OF RESPONDENTS 50 24.54 17.27 8.19 100
COMPART 24.54%
INTREPRETATION:
The analysis reveals that half of the customers i.e.., 50% are having General business account of monthly average balance Rs.10,000 and 25% of the customers are having Comfort account of Rs.25,000 monthly average balance and 16.7% of the customers are having Advantage of Rs.50,000 monthly average balance. But the least of 8.3% of customers are having current account of Orange Current account of monthly average balance Rs. 1lakh
PIE CHART:
GENERAL SB 20%
SB VARIANT 7.27%
INTREPRETATION:
Majorities (60%) of the customers is having Orange SB accounts and 6.67% of the customers are having SB Variant accounts and 20% of the customers are having General SB accounts and 13.33% of the Customers are having salary accounts.
PIE CHART:
CHEQUES 16%
ATM 84%
INTREPRETATION:
The analysis reveals that out of 100%, 84% of the customers are interested to withdraw cash from ATM. But a very few people i.e, 16% of customers are Interested to withdraw cash through. This is because most of the people dont want to go for banks to with draw cash, they want the instant cash. So, they mostly prefer ATM
PIE CHART:
INTREPRETATION:
From the above table, we came to know that 58% of respondents are interested to deposit in the banks. And 42% of the respondents are interested to deposit in the ATM. But according to them it is more easy to deposit in the ATM rather than bank. But they are thinking about the security and depositing of their amount within a short time or not.
PIE CHART:
INTREPRETATION:
The analysis reveals that 56% of the customers are availing the Facility of AT PAR CHEQUEs, but 44% of the customers are not availed of this AT PAR CHEQUE Facility. And AT PAR CHEQUE Facility is given only for the customers who are having monthly quarter balance of Rs.2,500 ( Charges Applicable) and Rs. 5,000 (Free of Charges)
PIE CHART:
VERY OFTEN 16%
RARELY 32%
INTREPRETATION:
From the above table, we can know that 16% of the customers are very often using the free DDs / pay orders and this free DDs / pay orders facility can be often and rarely used by 32% of the customers. And 20% of the customers are using this facility now and then. But according to survey, these free DDs / pay orders facility is mostly used by the business people.
Are you availing the cash/ cheque pick up facility CUSTOMER USAGE OF CASH /CHEQUE AVAILABLE NOT AVAILABLE TOTAL NUMBER OF RESPONDENTS 97 13 110 PERCENTAGE OF RESPONDENTS 88 12 100
PIE CHART:
YES 12%
NO 88%
INTREPRETATION:
The analysis reveals that 88% of the customers are not availing the cash/ cheque pick up facility. And 12% of the customers are availing are the cash/ cheque pick up facility.
PIECHART :
GOOD 17.27%
MODERATE 50%
PIE CHART :
NEVER 12%
FREQUENTLY 32%
INTREPRETATION:
The survey reveals that 20% of respondents says that ING Vysya Bank customer service centre takes action to make every customer is satisfied customer but 32% of respondents says frequently the customer service centre take action. And 36% respondents says that occasionally the bank takes the action and only 12% says that the bank never take any action regarding the satisfaction of the customer.
PIE CHART :
NEVER 8% OCCASIONALLY 22% ALWAYS 24%
FREQUENTLY 46%
INTREPRETATION:
According to the primary data collected, 24% of the respondents say that customer enquiry centre always works to the standards of customer care. majority i.e..,46% of respondents says that frequently the bank reaches the standards of customers and22% of the respondents said that the bank occasionally reaches expectations of the customers. But only 8% of respondents says that the bank never reach their standards/ expectations.
INTREPRETATION:
The primary data reveals that 40% of the customers said that the timings of the bank are good, while36% of the customers said that the timings are comfortable but none of the customers said that the timings have to be changed. But 24% of the respondents said that banks timings are adjustable
NEVER 16%
NEVER TOTAL
18 110
16 100
PIECHART:
ALWAYS 24%
OCCASIONALLY 24%
FREQUENTLY 36%
INTREPRETATION:
The analysis reveals that 24% of the customers said that the bank always gives value to their business, while 36% said that occasionally the bank gives the value to their business but 16% of the customers were not satisfied with the information from customer enquiry centre.
MODERATE 8%
PIE CHART:
INTREPRETATION:
52% of the customers rated the ATM security of the bank is excellent, while 8% of the customers rated the ATM security is moderate, but no one said that the security have to be improved. Where as 40% of respondents says that the security is good.
PIECHART:
HELPING 12% HOSTILE 30% INDIFFERENT 16%
CASUAL 42%
INTREPRETATION:
According to the primary data collected, 42% of the customers said that the employees are interactive while 30% of the customers said that employees are respectful but 4% of the customers said that employees behavior need to be improved where as 24% of respondents says that the employees behavior is effective.
Table 4.16 :- awareness about the compliant box/ grievance cell/ complaint
NUMBER OF RESPONDENTS YES NO TOTAL 79 31 110 PERCENTAGE OF RESPONDENTS 72 28 100
PIECHART:
NO 28%
YES 72%
INTREPRETATION:
Majority of the respondents i.e, 72% of respondents said that they are all aware of complaint box/ grievance cell/ complaint procedure. But 28% of respondents said they are not aware of these facilities.
PIE DIAGRAM:-
NEVER 8%
OCCASIONALLY 24%
ALWAYS 32%
FREQUENTLY 36%
INTREPRETATION:
The primary data reveals that 32% of respondents says that bank always seeks customer comments and feedback. And majority of respondents i.e, 36% customers says that the bank employees frequently seek the feedback and 24% of respondents said that the employees occasionally seeks the feedback and comments. But a few respondents i.e.., 8% says they never seek the feedback and comments.
CHAPTER-7
Findings, Suggestions & conclusion
FINDINGS
56% of the customers use at par cheque and the rest dont
Because of the at par cheque facility , most of the customers do not prefer DDs. But still 48% of them prefer DDs rarely.
Most of the respondents are not availing the cash pick up facility.
Out of the users of cash pick up facility , most of them say that the facility is good.
Majority of the respondents said that the banking timings are good but no body said that there is a need for change.
52% of the respondents said that the ING Vysya ATM security is excellent.
SUGGESTIONS
Bank can communicate to the customers who are not utilizing at par cheque facility, its advantages and increase the share of the users.
Customers can be explained about the advantages of electronic fund transfer. So that they can avail this facility.
Business current account customers can be encouraged to incalculate the usage of cash/ cheque pick up facility
QUESTIONNAIRE
CUSTOMERS SATISFACTION ON SERVICES MARKETING MIX PROVIDING BY THE ING VYSYA BANK
RESPONDENT PROFILE:
( ) ( )
B. Student D.Others
( ) ( )
(b) Educational qualification: A.Below S.S.C C.Graduation (c) Annual income : A.Below 60,000/C. 1 lakh-2 lakh ( ) ( ) B.Between 60,000-1 lakh D.Above 2 lakh ( ) ( ) ( ) ( ) B.Intermediate D.Post Graduation ( ) ( )
(d) Association with ing vysya bank A.Below 1 year C.Above 15 years (e) Marital status A.Married ( ) B. Unmarried ( ) ( ) ( ) B.Between 1-15 years ( )
(f) Age A. 20-30 years C.40-60 years (g) Region A. Urban C.Rural (h) Gender A.Male ( ) B.Female ( ) ( ) ( ) B.Semiurban ( ) ( ) ( ) B. 30-40 years D. above 60 year ( ) ( )
2. What is the type of current account you are operating ? A.General C. Advantage ( ) ( ) B. Comfort D.Orange current ( ) ( )
3.What type of saving account you are operating ? A. Orange Saving ( ) C.Salary Account ( ) ( ) B.SB Variant D. General SB ( )
7. How often do you use the free dds/ pay order in vysya bank ? A. Very Often C. Now& Then ( ) ( ) B.Often D. Rarely ( ) ( )
8. Are you availing the cash /cheque facility ? A. Available ( ) B. Not Available ( )
9. You are over-all rating on the current account facilities ? A. Very Good C.Moderate ( ) ( ) B. Good ( )
D. Needs Improvement ( )
10. Please rate our bank customere service ? A. Very Good C.Moderate ( ) ( ) B. Good ( )
D. Needs Improvement ( )
11. How do you feel about the timings of the bank ? A. Comfortable C. Adjustable ( ) ( ) B. Good ( )
12. Rate the information providing to the customers in the enquiry counter/ reception ? A. Excellent C. Moderate ( ) ( ) B. Good ( )
D. Needs Improvement ( )
13. Please rate ING VYSYA BANK ATM security A. Excellent C. Moderate ( ) ( ) B. Good ( )
D. Needs Improvement ( )
14. Please rate employees behavior with customers A. Hostile C. Indifferent ( ) ( ) B. Casual D. Helping ( ) ( )
15. Please enumerate any extra services required to your current account ? .. . 16. Please enumerate your suggestions / improvements to ING VYSYA BANK? .. 17. Would you like to refer any of your friends / relatives to ING VYSYA BANK ?
BIBLIOGRAPHY
AUTHOR
Principles of Marketing
Philip kotler
Marketing management
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