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276 Business Intelligence Journal August

Impact Of Atm On Customer Satisfaction

(A Comparative Study of SBI, ICICI & HDFC bank)

Sultan Singh, Ms. Komal, (Ph.D.)

This paper presents the impact of ATM on customer satisfaction. This is a comparative study of three
major banks i.e. State Bank of India, ICICI bank and HDFC bank. This paper has been divided into two
sections. First section presents the introduction of ATM, brief history of three Banks compiled through
the literature available in the field. It also includes the review of the various services provided by the
three banks under study. Second section presents the result obtained on the basis of the data collected
for the three banks. A sample of 360 respondents equally representing each bank has been taken through
questionnaire. Data has also been collected through interview also. Then various statistical tools have been
used accordingly to compile the result.

KEY WORDS: ATM, Customer satisfaction, Fees, Problems, ATM services, Banks.

Business Intelligence Journal - August, 2009 Vol. 2 No. 2

2009 Sultan Singh, Ms. Komal 277

Introduction The Indian ATM industry has seen explosive

growth in recent times. ATMs represent the single
largest investment in the electronic channel
services for the Banks. In India, HSBC set the
trend and set up the first ATM machine here in
1987. Since then, they have become a common
sight in many of our metros. Automated Teller
Machines (ATMs) have gained prominence as a
delivery channel for banking transactions in India.
Banks have been deploying ATMs to increase their
reach. While ATMs facilitate a variety of banking
transactions for customers, their main utility has
been for cash withdrawal and balance enquiry. As
at the end of October 2007, the number of ATMs
ATM means neither “avoids traveling with deployed in India was 31,078. According to some
money” nor “any time money,” but certainly estimates the total cash movement through ATMs
implies both. Slim ATM cards are fast replacing across India was around Rs. 70,000 crore in FY
confounding withdrawal forms as a convenient 06. Clearly, industry watchers forecast a bright
way of getting your money from banks. In a way, future for ATMs in India. While the ATM is a
they are rewriting the rules of financial transaction. great service for customers, for the banks it means
A smart person no longer needs to carry a wallet- immense savings on the cost of operations. While
full of paper money on his person. All he needs to a typical cash transaction carried out in a banks
do is fish out an ATM (automated teller machine) branch premise would cost Rs 40 that in an ATM
card, insert it in the slot, punch in a few details and will only cost Rs18translating into a cost saving of
go home with hard cash. Rs 22 per transaction.

Automated teller machines (ATMs) were the ATM Networks

first well-known machines to provide electronic
access to customers. With advent of Automatic The ATMs of a bank are connected to the
Teller Machines (ATM), banks are able to serve accounting platform of the bank through ATM
customers outside the banking hall. ATM is switches. Inter-bank ATM networks are created
designed to perform the most important function of by setting up apex level switches to communicate
bank. It is operated by plastic card with its special between the ATM switches of different banks.
features. The plastic card is replacing cheque, The inter-bank ATM networks facilitate the use
personal attendance of the customer, banking of ATM cards of one bank at the ATM(s) of other
hour’s restrictions and paper based verification. banks for basic services like cash withdrawal and
ATMs have made hard cash just seconds away all balance enquiry. Banks owning the ATMs charge a
throughout the day at every corner of the globe. fee for providing the ATM facility to the customers
ATMs allow you to do a number of banking of other banks. The ATM deploying bank from the
functions – such as withdrawing cash from card issuing banks recovers this fee referred to as
one’s account, making balance inquiries and ‘interchange fee’. However the interchange fee is
transferring money from one account to another not fixed across banks and depends on the terms of
– using a plastic, magnetic-strip card and personal bilateral / multilateral arrangements. Banks with
identification number issued by the financial larger ATM network treat interchange fee as an
institution. important stream of revenue.

S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction

278 Business Intelligence Journal August

Inter-connectivity of ATM Networks for of India was constituted on 1 July 1955. Today,
enhanced access SBI has a phenomenal 9,559 branches and its
ATM network is spread across 6,473 of its own
Inter-connectivity of ATM Networks provides locations& total 8,000ATMs including of those of
access to the customers to use any ATM in the its associate banks.
country irrespective of the bank with which the
customer is banking. There are a number of ATM • State Bank of India is a successor to Imperial
network switches such as CashTree, BANCS, Bank of India, which was established in
Cashnet Mitr and National Financial Switch 1921.
(NFS). In addition, most ATM switches are also
linked to VISA or MasterCard gateways. • The bank came into being on 1.7.1955 through
the State Bank of India Act, 1955.
Charges levied by banks
REVISED FEE STRUCTURE FOR ATMs • States of India joined the State Bank Group
Service Charges as subsidiaries under the State Bank of India
For use of own
ATMs for Free (with immediate effect)
(Subsidiaries Banks) Act, 1959.
any purpose
For use of other
bank ATMs
• State Bank of India has the following seven
Free (with immediate effect)
for balance Associate Banks (Abs) with controlling
enquiries interest ranging from 75% to 100%.
* No bank shall increase the charges prevailing
as on
December 23, 2007 (i.e. the date of release of State Bank of Bikaner and Jaipur (SBBJ)
For use of other
Approach Paper on RBI website)
bank ATMs
* Banks which are charging more than Rs.20
for cash with-
per transaction shall reduce the charges to a State Bank of Hyderabad (SBH)
maximum of Rs.20 per transaction by 31-Mar-
* Free - with effect from April 1, 2009. State Bank of Indore (SBIr)

Providing relief to millions of users, the RBI State Bank of Mysore (SBM)
has also said from April 1, 2009, customers using
the inter-bank ATMs (ATMs of other banks) for State Bank of Patiala (SBP)
cash withdrawals or balance enquiries will not be
charged any fee. As of now, customers have to State Bank of Saurashtra (SBS)
pay Rs 50 as annual charges for using the ATM
facility of their bank, while charges ranging from State Bank of Travancore (SBT)
Rs 20-Rs 50 per transaction are levied for the
inter-bank ATM transactions. Customers are also ICICI Bank India is the largest private sector
paying anything between Rs 10- Rs 20 for making bank. Its banking products and financial services
balance enquiries through inter bank ATMs. are some of the superior ones. The reach and
market of ICICI Bank is unmatched in India as yet.
Brief History Of The Banks It offers a countrywide network of 1,000 branches
and 3,680 ATM’s reaching out to your doorsteps.
The State Bank of India (SBI) is the oldest
and largest bank in the country. Its origins go • Founded by the Government of India in
back to the first decade of the 19th century, when the 1960’s, it was one of the three financial
the Bank of Calcutta was established on 2 June institutions set up to finance large industrial
1806. The bank got its present name after an Act projects
of Parliament in May 1955 and the State Bank

Business Intelligence Journal - August, 2009 Vol. 2 No. 2

2009 Sultan Singh, Ms. Komal 279

• Earlier known as Industrial Credit and explained that banks in India have traditionally
Investment Corporation of India, it did not claimed the strength of their networks based on
entertain retail customers and was thus not a the number of branches. The logic was that the
bank in the literal sense. increase in branch network corresponds to more
transactions, more business and therefore more
• It was in the 1990’s that a subsidiary was set profits. Not unlike the rest of Asia, where branch
up in the name of ICICI Bank to take up retail rationalization first started in Japan and then
banking services including deposits, credit spread across the continent, this logic is steadily
cards, loans etc. getting reversed in India.
Kaul Urvashi (2007) in his article, “ATM: The
• In 2002, the ICICI Bank was merged back Power of Cash” explained the importance and
with the ICICI and the result was the ICICI benefits of ATM, the players in the Indian market
Bank Limited operational now. and presented various satistical data concerning
the growth of ATM.
The Housing Development Finance Manager FSDNCR Corporation India Pvt.
Corporation (HDFC) Bank is one of the first banks Ltd. (2008) in his article, “ATMs: Changing
in India to offer its customers the bill pay facility. Fundamentals” stressed that he Indian ATM
HDFC Bank is also a leader in online purchase industry has seen explosive growth in recent times
(using the HDFC Bank DirectPay product). The and Banks have committed to substantial capital
bank also offers its customers a free personalized outlays on ATM deployment, recognizing the
payable-at-par chequebook and services like real significance of the 3 Ms – Maintenance, Monitoring
time gross settlement and national electronic fund and Management – of the ATMs to make the self
transfer. service channel a reliable and profitable one.

• HDFC Bank was among the first to receive

an ‘in principle’ approval from the RBI to set Research Methodology And Data
up a bank in the private sector as part of the Base
liberalization of the Indian banking industry
in 1994. The present study is of analytical and
exploratory nature. Accordingly, the use has been
• The bank was incorporated in August 1994. made of primary as well as secondary data. The
secondary data have been collected mainly from
• The bank has 1,148branches and 1,647ATMs RBI monthly bulletins, Financial Express political
network spread across the country. weekly, various newspapers and other literature
available in the field. To know the problems of
Review Of Literature ATM structured questionnaires have been used
to collect the data from customers using ATM
Agnihotri Peeyush (2001) in his paper ‘ “ IT services. To analyze the data, various statistical
way of getting cash” explained the working of techniques such as average, std. deviation and
ATM, ATM penetration per million persons in normal distribution have been used as per the
Asian countries and the system of security –how it requirement of the data. F test has also been used
works and also the frauds of ATM. to analyze the variances.
Simhan Raja (2003) in his article, “Shared ATM
networks gain favour” explained the importance Objectives Of The Study
of shared network of ATM in Indian banks.
Puri and Kamath (2004) in their article, “Indian The paper aims to examine the scenario of ATM
Banks: Bigger, Better & Remote Controlled” in three major banks. In this broader framework, an

S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction

280 Business Intelligence Journal August

attempt is made to achieve the following specific 2. There is no significant difference in the
objectives: factors affecting the choice of ATM in SBI,
1. To analyze the present ATM facilities
provided by SBI, ICICI & HDFC Bank. 3. There is no significant difference in the
impact of ATM on customer satisfaction in
2. To examine the factors affecting the choice SBI, ICICI & HDFC Bank.
of ATM.
4. There is no significant difference in the post
3. To examine the impact of ATM on customer purchase behavior of customers in SBI,
satisfaction by appraising the problems faced ICICI & HDFC Bank.
by the customers.
Data Collection
4. To analyze the post purchase behavior of
customers regarding the different banks Primary data has been collected through
under study. questionnaire. A sample size of 360 respondents
has been taken including 120 for each bank i.e. SBI,
Hypothesis ICICI & HDFC bank. A personal visit has been
made to these banks to know about the branches &
1. There is no significant difference in ATM ATM facilities provided by these banks.
facilities provided by SBI, ICICI & HDFC
Data Anaysis

Business Intelligence Journal - August, 2009 Vol. 2 No. 2

2009 Sultan Singh, Ms. Komal 281

The present paper entitled “Impact of ATM Table-1

on customer satisfaction” focus that customer Reasonability of fee charged
satisfaction is one of the major factors measuring Name Highly Rea- Highly
the performance of the banks. This paper examines Can’t Unrea-
of the Reason- son- Unrea-
say sonable
Bank able able sonable
the customer satisfaction level in the three banks
under study with special reference to problems
a) SBI 12 66 18 12 12
faced, responses about the fee charged and post
purchase behavior of the consumers after using b)
ATM. The paper also examines the relationship ICICI - 36 66 18 -
between various ATM facilities, factors affecting
the choice of ATM and its interplay with customer c)
satisfaction. HDFC 12 24 24 48 12
The customer satisfaction level has been
analyzed in two terms i.e. material customer
satisfaction (MCS) level and abstract customer Table-1.1
satisfaction (ACS) level. Customer satisfaction Satisfaction level regarding the fees charged
in material sense denotes the aggregate position Name of the Bank Satisfaction Level
a) SBI 69%
of the banks in terms of fee charged, frequency b) ICICI Bank 63%
with which problems are faced and post purchase c) HDFC Bank 56%
behavior of the customers. In abstract sense,
customer satisfaction level denotes the position of
the banks in terms of post purchase behavior, the satisfaction level for fee charged

efficiency of facilities provided and the example 80%

of others using the ATM of the same bank. 70%


Material Customer Satisfaction 50%

a) SBI
b) ICICI Bank
Level (MCS) 30%
c) HDFC Bank


Material customer satisfaction level has been 10%

examined on the basis of three variables i.e. Satisfaction Level

reasonability of the fee charged, frequency with

which problems are faced and the post purchase Fig.-1
behavior of the customers.
Table-1 shows the responses number of per
1. Fee Charged person regarding the fee reasonability. Table-1.1
& fig.-1 shows the coded results in percentage
Fee charged by the banks is one of the variables term.
taken for checking customer satisfaction level. If
customer feels that the fee charged by the bank is 2. Problems Faced
reasonable then he is satisfied and vice-versa. Five
degrees of reasonability have been taken and they Second parameter for measuring MCS level
are coded as 5, 4, 3, 2, &1. There is direct relation is problems faced by the consumers while using
between fee charged and customer satisfaction. ATM of a particular bank. If consumers are facing
problems more frequently, customer satisfaction
level will be less and vice-versa. There is indirect
relation between the problems faced and the
customer satisfaction. Three degrees namely

S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction

282 Business Intelligence Journal August

often, rarely and never have been taken and they Satisfaction level for Problem s

have rated as 3, 2, & 1 respectively.

Table-2 73%

Frequency of problems faced a) SBI

b) ICICI Bank
Problems Often Rarely Never c) HDFC Bank
Card gets blocked
a) SBI 24 36 60
b) ICICI Bank - 66 54 78%
c) HDFC Bank 12 48 60
Machine out of cash
a) SBI 42 48 30
b) ICICI Bank 60 42 18
c) HDFC Bank 42 72 6 Fig.-2
No printing of statement Table-2.1 & fig.-2 reveals the coded results.
a) SBI 30 24 66
b) ICICI Bank 36 42 42 Coding for the three degrees of various problems is
c) HDFC Bank 60 42 18 3, 2 & 1 respectively. As exhibited by the table the
Machine out of order customer satisfaction level for problems is highest
a) SBI 36 48 36
b) ICICI Bank 42 48 30 in SBI i.e. 82%, and ICICI & HDFC are on number
c) HDFC Bank 48 66 6 two and three with 78% and 73% respectively. It
Old notes means people are not facing problems more often
a) SBI 24 30 66
b) ICICI Bank 24 36 60 in SBI.
c) HDFC Bank 42 54 24
Wrong amount of statement 3. Post Purchase Behavior
a) SBI - 24 96
b) ICICI Bank - 24 96
c) HDFC Bank - 42 78 Post purchase behavior has been analyzed
Poor visibility of statement through two statements. If they are agreeing with
a) SBI 6 24 90
b) ICICI Bank 30 36 54 these statements then their customer satisfaction
c) HDFC Bank 6 60 54 level is rated to be high. There are five degrees
Reduction in balance without
cash payment for each statement and they are rated as 5,4,3,2 &
a) SBI - 18 102 1 accordingly. Post purchase behavior has direct
b) ICICI Bank 6 30 84
c) HDFC Bank 6 48 66 relation with customer satisfaction level.
If any other, please specify
a) SBI - 6 114
b) ICICI Bank - 6 114 Table-3
c) HDFC Bank - 6 114 Post purchase Strongly Unde- Dis- Strongly
Table-2 exhibits the frequency of the problems Behavior
Continue to
Agree cided agree Disagree

faced by the customer in the three banks. use this

ATM in
a) SBI 36 78 - 6 -
Table-2.1 b) ICICI
36 84 - - -
48 60 12 - -
Satisfaction level regarding the problems Recommend
Name of the Bank Satisfaction Level ATM to
a) SBI 82% others
b) ICICI Bank 78% a) SBI 12 36 60 12 -
c) HDFC Bank 73%
12 78 30 - -
24 70 26 - -

Business Intelligence Journal - August, 2009 Vol. 2 No. 2

2009 Sultan Singh, Ms. Komal 283

Table-3 depicts the responses of the users Prob- Post Pur- % of

Name of Fee
Charged lems
regarding their post purchase behavior after using chase Be- Total total
the Bank Faced havior marks
378 2514 978 3870 77%
Table-3.1 Bank
Name of the Satisfaction Result as % of c) HDFC
Bank Level Total 336 2370 994 3700 73%
a) SBI 912 76%
b) ICICI Bank 978 82%
c) HDFC Bank 994 83%

Post Purchase Behavior
78% 79%


83% 74%
a) SBI
b) ICICI Bank
c) HDFC Bank 72%


82% a) SBI b) ICICI Bank c) HDFC Bank

Table-4 & fig.-4 shows clearly that in SBI
Table 3.1 and figure 3 envisages the coded material satisfaction level is highest, 2nd is ICICI
results after giving weightings. The highest rating and 3rd is HDFC.
is of HDFC with 83%, then ICICI is having 82% So, material customer satisfaction is highest
and SBI is third with 76% as for as post purchase in SBI, then ICICI and last is HDFC among the
behavior is concerned. three banks. This result is also supported by the
secondary data. For example, according to the
Overall Material Customer Satisfaction Outlook Best Bank Award, which was given in
Level Nov. 2007, SBI is the 1st largest bank in India,
ICICI is the 2nd largest bank and HDFC is the 3rd
After considering all the elements of customer largest bank in India.
satisfaction they are combined together to
find out the overall customer satisfaction level
in materialistic terms. The overall customer Abstract Customer Satisfaction
satisfaction level is the combination of three Level (ACS)
parameters i.e. fee charged, frequency of the
problems faced and the post purchase behavior. Abstract customer satisfaction level has been
examined through the deep study of the various
Table-4 parameters of customer satisfaction. Three
parameters have been chosen for this purpose i.e.
Prob- Post Pur- % of
Name of Fee factors affecting choice of ATM, the purpose for
Charged lems chase Be- Total total
the Bank Faced havior marks which ATM is often used and the problems faced
a) SBI 414 2658 912 3984 79% while using ATM.

S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction

284 Business Intelligence Journal August

1. Factors affecting choice of ATM Table-.1

Example of V. Un V. Un
Imp Neutral
While choosing ATM of a particular bank others Imp Imp Imp
customer takes care of some things. a) SBI 5% 20% 35% 20% 20%
They are known as factors affecting the choice 5% 30% 40% 15% 10%
of ATM. c) HDFC
10% 35% 30% 15% 10%
Trust and
V. Imp Imp Neutral
Un V. Un Table-5.1 reveals that performance of HDFC is
security Imp Imp
114 6 better as compared with SBI and ICICI. In case
a) SBI - - - of HDFC 45% people are regarding it important
(95) (5)
b) ICICI 120 while this percentage is 35% & 25% in case of
- - - -
Bank (100)
c) HDFC 108 6 6 ICICI & SBI respectively.
- -
Bank (90) (5) (5)
Speed 2. The purpose for which ATM is most
66 54
a) SBI
(55) (45)
- - - often used
b) ICICI 60 48 6 6
Bank (50) (40) (5) (5) ATM does not mean the plastic card and PIN
c) HDFC 36 72 6 6
- (Personal Identification Number) but the services
Bank (30) (60) (5) (5)
Example of for which you can use it are the most important
6 24 42 24 24 part. These services are cash/cheque deposit, fast
a) SBI
(5) (20) (35) (20) (20) cash withdrawal, view account balances & mini
b) ICICI 6 36 48 18 12 statements and request a chequebook or account
Bank (5) (30) (40) (15) (10)
c) HDFC 12 42 36 18 12 statement.
Bank (10) (35) (30) (15) (10)
in use
78 42 Cash/Cheque Very
Often Rarely Sometimes Never
a) SBI - - - deposit often
(65) (35)
b) ICICI 72 30 12 6 6 30 30 54
- a) SBI -
Bank (60) (25) (10) (5) (5) (25) (25) (45)
c) HDFC 90 30 36 36 12 6 30
- - - b) ICICI Bank
Bank (75) (25) (30) (30) (10) (5) (25)
42 30 18 6 24
Cost c) HDFC Bank
(35) (25) (15) (5) (20)
42 48 24 6 Fast cash
a) SBI -
(35) (40) (20) (5) withdrawal
b) ICICI 66 42 12 114 6
- - a) SBI - - -
Bank (55) (35) (10) (95) (5)
c) HDFC 84 24 12 120
- - b) ICICI Bank - - - -
Bank (70) (20) (10) (100)
108 6 6
c) HDFC Bank - -
Table-5 envisages the frequency of the respective (90) (5) (5)
View account
importance of the various factors for choosing balances
ATM in the three banks. & mini-
Among all the factors affecting example of statements
48 24 24 12 12
others is one, which is the clear indicator of the a) SBI
(40) (20) (20) (10) (10)
customer satisfaction. People will purchase ATM b) ICICI Bank
48 42 6 18 6
(40) (35) (5) (15) (5)
of a particular bank on the basis of other’s example 48 36 12 24
if customers using it previously are satisfied. c) HDFC Bank -
(40) (30) (10) (20)

Business Intelligence Journal - August, 2009 Vol. 2 No. 2

2009 Sultan Singh, Ms. Komal 285

Cash/Cheque Very
deposit often
Often Rarely Sometimes Never 1. Post Purchase Behavior
Request a
cheque book
or account
Post purchase behavior has been analyzed
statement through two statements. If they are agree with
6 30 12 12 60 these statements then their customer satisfaction
a) SBI
(5) (25) (10) (10) (50)
12 18 36 24 30 level is rated to be high. There are five degrees
b) ICICI Bank
(10) (15) (30) (20) (25) for each statement and they are rated as 5,4,3,2 &
c) HDFC Bank
36 24 18 18 24 1 accordingly. Post purchase behavior has direct
(30) (20) (15) (15) (20)
relation with customer satisfaction level.

Table-6 brings out that performance of HDFC Table-7

bank is best as far as frequency of using ATM Post pur-
Strongly Unde- Strongly
chase Agree Disagree
services is concerned. ICICI & SBI are at the 2nd Behavior
Agree cided Disagree

and 3rd number respectively. In case of SBI there Continue

to use this
are 45% customers who have never used cash ATM in
deposit service. future
36 78 6
a) SBI - -
(30) (65) (5)
b) ICICI 36 84
Customers never using these services - - -
Bank (30) (70)
View Request c) HDFC 48 60 12
Cash/ account a cheque - -
Fast cash Bank (40) (50) (10)
Services Cheque balances book or Recom-
deposit & mini- account mend this
statements statement ATM to
a) SBI 45% - 6% 50% others
b ) ICICI 12 36 60 12
25% - 3% 25% a) SBI -
Bank (10) (30) (50) (10)
c) HDFC b) ICICI 12 78 30
20% - - 20% - -
Bank Bank (10) (65) (25)
c) HDFC 24 70 26
- -
Table-6.1 depicts that the %age of people not Bank (20) (58) (22)
using services is very low in case of HDFC, which
indirectly means services are very good. Second is Table-7 depicts the responses of the users
ICICI and 3rd is SBI. regarding their post purchase behavior after using
Customers using services very often Table-7.1
View Request Name of the Satisfaction Result as %
Fast cash
account a cheque Bank Level of Total
Services Cheque
balances book or a) SBI 912 76%
deposit & mini- account b) ICICI
statements statement 978 82%
a) SBI 5% 95% 40% 5% c) HDFC
b) ICICI 994 83%
30% 100% 40% 10% Bank
35% 90% 40% 30%
Bank Table-7.1 envisages the coded results after
giving weightings. The highest rating is of HDFC
Table-6.2 presents that on the basis of usage with 83%, then ICICI is having 82% and SBI is
rate HDFC is 1st, 2nd is ICICI and 3rd is SBI. third with 76% as for as post purchase behavior is

S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction

286 Business Intelligence Journal August

So, if we examine the customer satisfaction in Customer Satisfaction

abstract sense then rating becomes totally different
from material customer satisfaction level. The 100%
30 25 15

reason for this is that MCS level is high in case of 80%

Satisfaction 60%
SBI because people are not facing problems which Level 40%
55 60 70
High degree

due to the fact that mostly people are not using 20%
15 15 15
Medium Degree
Low Degree
services frequently. Thus, according to abstract 0%
customer satisfaction HDFC is at 1st position, 2nd Bank Bank

is ICICI and 3rd is SBI. Name of Bank

Proof Or The Result Fig.-5

We can prove the results of ACS with MCS Table-8 & fig.-5 shows clearly that average
also. After considering all the three elements i.e. satisfaction level is highest in HDFC Bank, second
fee charged, frequency of the problems faced and comes the ICICI Bank and the third is SBI.
post purchase behavior, they are coded. Customer
satisfaction of the respondents has assumed to be F-Test
distributed normally. So, the customer satisfaction
of the respondents for these three variables is Further F-test is applied to find out whether the
divided into three categories, below average, difference in the customer satisfaction level of the
average and above average levels. The lower and three banks is significant or not. On the basis of
the upper limits of the average level have been the table-8 above
calculated on the basis of formula:
Analysis of Variance
The lower limit of average level= M-1s.d. Sum of Degree of Mean
The upper limit of average level= M-1s.d. Squares Freedom ( v) Square
4457.19 2 2228.59
Source: Dr. A.B.Bhatnagar; Measurement &
Evaluation, P. 116-120 155.39 6 25.89
The below average, average and above average
levels have been defined as low, medium and high Calculated value of F = 86.07
respectively. The results after using this statistical Tabulated value of F = 5.14
method are as under: Hence the calculated value is more than the
tabulated value, the H 0 is rejected. It means
Table-8 that there is a significant difference between the
Customer Satisfaction level regarding ATM various banks as far as customer satisfaction level
Name of Low Medium High is concerned.
the Bank Degree Degree degree

18 66 36
a) SBI
(15) (55) (30)
It is concluded through this paper that material
b) ICICI 18 72 30
satisfaction level is highest in SBI, then second is
Bank (15) (60) (25)
ICICI Bank and third is HDFC Bank. This is due
c) HDFC 18 84 18 to the size of the respective bank and number of
Bank (15) (70) (15)
years of its establishment. But according to abstract

Business Intelligence Journal - August, 2009 Vol. 2 No. 2

2009 Sultan Singh, Ms. Komal 287

customer satisfaction i.e. in terms of efficiency Table-9 & fig.-6 depicts that material customer
and performance, HDFC Bank is at 1st position, 2nd satisfaction level is highest for SBI at 79%, 2nd is
is ICICI Bank and 3rd is SBI. The results are also ICICI Bank with 77% and 3rd is HDFC Bank with
shown clearly with the help of table and diagram. 73%. Table also presents that average customer
satisfaction level is highest in HDFC bank with
Table-9 70%, in ICICI Bank it is 60% and SBI is at third
Customer Satisfaction Level place with 55%.
Material Abstract
Customer Customer References
Name of the Bank
Satisfaction Satisfaction
Level Level
a) SBI 79% 55% News updates & Events:
b) ICICI Bank 77% 60%
Log in………….. Tribune
c) HDFC Bank 73% 70%
Financial Express
Custom er Satisfaction Level

The Economics Times online
70% 77% 70%
60% RBI Monthly bulletin
50% 55%

Dataquest: IT Giants 07

10% Express Computers Business Weekly

Banknet India

Websites of banks

S. Singh, Ms. Komal - Impact Of Atm On Customer Satisfaction