INTRODUCTION
BANKING
Under this Heading we will be mainly discussing about these three different heads namely :
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.The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of 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 dials a pizza. Money has 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:
The following are some of the Scheduled Banks in India (Private Sector):
Axis Bank Ltd
With years, banks are also adding services to their customers. The Indian banking
industry is passing through a phase of customers market. The customers have more
choices in choosing their banks. A competition has been established within the
banks operating in India.With stiff competition and advancement of technology, the
services provided by banks have become more easy and convenient. The past days
are witness to an hour wait before withdrawing cash from accounts or a cheque
from north of the country being cleared in one month in the south.
This section of banking deals with the latest discovery in the banking instruments
along with the polished version of their old systems.
Bank Account:
The most common and first service of the banking sector. There are different types
of bank account in Indian banking sector. The bank accounts are as follows:
Bank Savings Account - Bank Savings Account can be opened for eligible
person / persons and certain organizations / agencies (as advised by
Reserve Bank of India (RBI) from time to time)
Plastic Money:
Credit cards in India are gaining ground. A number of banks in India are encouraging
people The use credit card. The concept of credit card was used in 1950 with the
launch of charge cards in USA by Diners Club and American Express. Credit card
however became more popular with use of magnetic strip in 1970.Credit card in
India became popular with the introduction of foreign banks in the country. Credit
cards are financial instruments, which can be used more than once to borrow
money or buy products and services on credit. Basically banks, retail stores and
other businesses issue these.
Loans:
Banks in India with the way of development have become easy to apply in loan
market. The following loans are given by almost all the banks in the country:
Personal Loan
Car load or Auto Loan
Loan against Shares
Home Loan
Education Loan or Student Loan
Money Transfer:
Beside lending and depositing money, banks also carry money from one corner of
the globe to another. This act of banks is known as transfer of money. This activity is
termed as remittance business. Banks generally issue Demand Drafts, Banker's
Cheque, Money Orders or other such instruments for transferring the money. This is
a type of Telegraphic Transfer or Tele Cash Orders. It has been only a couple of
years that banks have jumped into the money transfer businesses in India. The
international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213
bn. to US$233 bn. in 2004. Economists say that the market of money transfer will
further grow at a cumulative 12.1% average growth rate through 2009.
A healthy banking system is essential for any economy striving to achieve good
growth and yet remain stable in an increasingly global business environment. The
Indian banking system has witnessed a series of reforms in the past, like
deregulation of interest rates, dilution of government stake in PSBs, and increased
participation of private sector banks. It has also undergone rapid changes, reflecting
a number of underlying developments. This trend has created new competitive
threats as well as new opportunities.
Given the competitive market, banking will (and to a great extent already has)
become a process of choice and convenience. The future of banking would be in
terms of integration. This is already becoming a reality with new-age banks such as
YES Bank ICICI Bank, and others too adopting a single-PIN, OTP facility. Geography
will no longer be an inhibitor. Technology will prove to be the differentiator in the
short-term but the dynamic environment will soon lead to its saturation and what
will ultimately be the key to success will be a better relationship management.
If one were to say that the future of banking in India is bright, it would be a gross
understatement. With the growing competition and convergence of services, the
customers stand
10 only to benefit more to say the least. At the same time, emergence of a
multitude of complex financial instruments is foreseen in the near future (the trend
is visible in the current scenario too) which is bound to confuse the customer more
than ever unless she spends hours (maybe days) to understand the same. Hence, I
see a growing trend towards the importance of relationship managers. The success
(or failure) of any bank would depend not only on tapping the untapped customer
base (from other departments of the same bank, customers of related similar
institutions or those of the competitors) but also on the effectiveness in retaining
the existing base.
India has witness to a sea change in the way banking is done in the past more than
two decades.
Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking
system at a measured pace so that growth could be achieved without exposure to
any macro-environmen and systemic risks. Some of these initiatives were
deregulation of interest rates, dilution of the government stake in public sector
banks (PSBs), guidelines being issued for risk management, asset classification, and
provisioning. Technology has made tremendous impact in banking.
‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial
sector now operates in a more competitive environment than before and
intermediates relatively large volume of international financial flows. In the wake of
greater financial deregulation and global financial integration, the biggest challenge
before the regulators is of avoiding instability in the financial system.
SCOPE AND OBJECTIVES OF THE STUDY
This Study will help us to understand the consumer’s satisfaction about banking services and
products. This study will help banks to understand, how a consumer selects, organizes and
interprets the Quality of service and product offered by banks. The market is more aware
and realistic about investment and returns from financial products. In this background this
study tries to analyze the customer satisfaction towards banking services in general and
ICICI Bank in particular.
OBJECTIVES
ICICI Bank is India's largest private sector bank with total assets of Rs.6,461.29 billion (US$
103 billion) at March 31, 2015 and profit after tax Rs.111.75 billion (US$ 1,788 million) for
the year ended March 31, 2015. ICICI Bank currently has a network of 4,450 Branches and
13,797 ATM's across India.
HISTORY
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of
ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in
an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the
World Bank, the Government of India and representatives of Indian industry. The principal
objective was to create a development financial institution for providing medium-term and
long-term projet financing in indian buisnessess.
In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution
from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities,
and would create the optimal legal structure for the ICICI group's universal banking strategy.
The merger would enhance value for ICICI shareholders through the merged entity's access
to low-cost deposits, greater opportunities for earning fee-based income and the ability to
participate in the payments system and provide transaction-banking services. The merger
would enhance value for ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built up over five
decades, entry into new business segments, higher market share in various business
segments, particularly fee-based services, and access to the vast talent pool of ICICI and its
subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and
banking operations, both wholesale and retail, have been integrated in a single entity.
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.
The country’s middle class accounts for over 320 million people. In correlation with the
growth of the economy, rising income levels, increased standard of living, and affordability
of banking products are promising factors for continued expansion.
ICICI Bank offers wide variety of Deposit Products to suit your requirements. Coupled with
convenience of networked branches/ ATMs and facility of E-channels like Internet and
Mobile
Banking, ICICI Bank brings banking at your doorstep. Select any of our deposit products and
provide your details online and our representative will contact you for Account Opening.
SAVING ACCOUNTS:
ICICI Bank offers you a power packed Savings Account with a host of convenient features
and banking channels to transact through. So now you can bank at your convenience,
without the stress of waiting in queues
FIXED DEPOSITS:
Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable features of the
Fixed Deposit from ICICI Bank.
RECURRING DEPOSITS:
When expenses are high, you may not have adequate funds to make big investments. But
simply going ahead without saving for the future is not an option for you. Through ICICI
Bank Recurring Deposit you can invest small amounts of money every month that ends up
with a large saving on maturity. So you enjoy twin advantages- affordability and higher
earnings
HOME LOAN:
The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some
unbeatable benefits to its customers - Doorstep Service, Simplified Documentation and
Guidance throughout the Process. It's really easy!
PERSONAL LOANS:
If you’re looking for a personal loan that’s easy to get, your search ends here. ICICI Bank
Personal Loans are easy to get and absolutely hassle free. With minimum documentation
you can now secure a loan for an amount up to Rs. 15 lakhs
CAR LOAN:
The NO 1 financier for car loans in the country.Network of more than 1500 channel partners
in over 780 locations.Tie-ups with all leading automobile manufacturers to ensure the best
deals.Flexible schemes & quick processing.Hassle-free application process on the click of a
mouse.
CREDIT CARDS:
ICICI Bank Credit Cards give you the facility of cash, convenience and a range of benefits,
anywhere in the world. These benefits range from life time free cards, Insurance benefits,
global emergenassistance service, discounts, utility payments, travel discounts and much
more.
DEBIT CARDS:
The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access
their bank account around the clock, around the world. The ICICI Bank Debit Card can be
used for shopping at more than 100,000 merchants in India and 13 million merchants
worldwide.
TRAVEL CARD:
Presenting ICICI Bank Travel Card.The Hassle Free way to Travel the world. Traveling with US
Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and convenience; take ICICI
Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of
usage of Credit or Debit card.
FOREX SERVICES:
ICICI Bank's Foreign Exchange Services will help you organize your foreign exchange in the
most hassle free manner. Whether its Foreign Currency, Travelers Cheques or Travel Card,
ICICI Bank Foreign Exchange Services is a one-stop solution to your foreign exchange
requirement.
SWOT ANALYSIS
STRENGTHS
ICICI is the second largest bank in terms of total assets and market share
Total assets of ICICI is Rs. 4062.34 Billion and recorded a maximum profit after tax of
Rs. 51.51 billion and located in 19 countries
One of the major strength of ICICI bank according to financial analysts is its strong
and transparent balance sheet
ICICI bank has first mover advantage in many of the banking and financial services.
ICICI bank is the first bank in India to introduce complete mobile banking solutions
and jewelry card
The bank has PAN India presence of around 2,567 branches and 8003 ATM’s
ICICI bank is the first bank in India to attach life style benefits to banking services for
exclusive purchases and tie-ups with best brands in the industry such as Nakshatra,
Asmi, D’damas etc
ICICI bank has the longest working hours and additional services offering at ATM’s
which attracts customers
Marketing and advertising strategies of ICICI have good reach compared to other
banks in India
WEAKNESSES
Customer support of ICICI section is not performing well in terms of resolving
complaints
There are lot of consumer complaints filed against ICICI
The ICICI bank has the most stringent policies in terms of recovering the debts and
loans, and credit payments. They employ third party agency to handle recovery
management
There are also complaints of customer assault and abuse while recovering and the
credit payment reminders are sent even before the deadlines which annoys the
customers
The bank service charges are comparatively higher
The employees of ICICI are bank in maximum stress because of the aggressive
policies of the management to win ahead in the race. This may result in less
productivity in future years
OPPORTUNITIES
Banking sector is expected to grow at a rate of 17% in the next three years
THREATS
Research Methodology is a way to solve the research problem systematically. It involves the
various steps to find out the solution of an identified problem. It also clarifies the logic
behind the study of the problem. When we talk about research methodology we not only
talk of the research method but also consider the logic behind the method we use in the
context of our research study and explain why we are using a particular method or
techniques and why we are not using other so the result are capable of being evaluated.
RESEARCH DESIGN:
A descriptive study tries to discover answers to the questions who, what, when, where, and,
sometimes, how. The researcher attempts to describe or define a subject, often by creating
a profile of a group of problems, people, or events. Such studies may involve the collection
of data and the creation of a distribution of the number of times the researcher observes a
single event or characteristic (the research variable), or they may involve relating the
interaction of two or more variables. Organizations that maintain databases of their
employees, customers, and suppliers already have significant data to conduct descriptive
studies using internal information. Yet many firms that have such data files do not mine
them regularly for the decision-making insight they might provide. This descriptive study is
popular in business research because of its versatility across disciplines. In for-profit, not-
for-profit and government organizations, descriptive investigations have a broad appeal to
the administrator and policy analyst for planning, monitoring, and evaluating. In this
context, how questions address issues such as quantity, cost, efficiency, effectiveness, and
adequacy. Descriptive studies may or may not have the potential for drawing powerful
inferences. A descriptive study, however, does not explain why an event has occurred or
why the variables interact the way they do.
SAMPLE METHOD:
Convenience sampling method is used for the survey of this project. It is a non-probability
sample. This is the least reliable design but normally the cheapest and easiest to conduct .In
this method Researcher have the freedom to choose whomever they find, thus the name
convenience. Example includes informal pools of friends and neighbors or people
responding to a newspaper’s invitation for readers to state their position on some public
issue.
SAMPLE SIZE:
Sample size denotes the number of elements selected for the study. For the present study,
50 respondents were selected at random. All the 50 respondents were the customers of
different branches of ICICI Bank.
SAMPLING METHOD:
A sample is a representative part of the population. In sampling technique, information is
collected only from a representative part of the universe and the conclusions are drawn on
that basis for the entire universe.
TYPES OF DATA:
Every decision poses unique needs for information, and relevant strategies can be
developed based on the information gathered through research. Research is the systematic
objective and exhaustive search for and study of facts relevant to the problem Research
design means the framework of study that leads to the collection and analysis of data. It is a
conceptual structure with in which research is conducted. It facilitates smooth sailing of
various research operations to make the research as effective as possible.
PRIMARY DATA:
Primary data are those collected by the investigator himself for the first time and thus they
are original in character, they are collected for a particular purpose. A well-structured
questionnaire was personally administrated to the selected sample to collect the primary
data.
SECONDARY DATA:
Secondary data are those, which have already been collected by some other persons for
their purpose and published. Secondary data are usually in the shape of finished products.
DATA ANALYSIS AND INTERPRETATION
Series 2
20
18
16
14
12
10
8
6
4
2
0
less than a year 1-4 years 4-7 years more tha 7 years
Series 2
Fig.1
INTERPRETATION: From the above graph it is clear that majority of the respondents are part
of the ICICI bank from 1-4 years i.e.36%; 30% of the respondents are part of the ICICI bank
from 4-7 years; 26% respondent from less than a year and remaining 8% respondent are
part of the ICICI bank form more than 7 years.
2. Do you always get prompt service whenever you visit ICICI bank ?
No of respondents
Strongly agree 23
Agree 17
Neither agree nor disagree 7
Disagree 2
Strongly disagree 1
Table 2 : prompt services
agree niether agree nor disagree disagree strongly disagree strongly agree
Fig.2
INTERPRETATION: From the above graph it is clear that majority of the respondents get
timely and quick services by the ICICI bank i.e.46%; 34% of the respondents seem to be just
satisfied; 14% respondent are neither happy nor have any problem and remaining 6%
respondent are dissatisfied with respect to get late services from the ICICI bank.
3. Do you agree that the procedure to open an account with the ICICI bank is
difficult?
Strongly agree 0
Agree 1
Neither agree nor disagree 5
Disagree 19
Strongly disagree 25
Table 3 : Difficult Procedure
Chart Title
30
25
20
15
10
0
strongly agree agree niether agree nor disagree strongly disagree
disagree
Fig 3
INTERPRETATION: From the above graph it is clear that 3/4th of the respondents doesn’t
face any problem in the process of opening a new account; 10% respondent are neither
happy nor have any problem and remaining 2% respondent are dissatisfied with the
procedure of opening a new account in the ICICI bank.
4. Do you agree that the process of depositing and withdrawing money from the ICICI
bank is complex?
Strongly agree 1
Agree 1
Niether agree nor disagree 8
Disagree 29
Strongly disagree 11
Table 4. withdrawing money is complex
Chart Title
35
30
25
20
15
10
0
strongly agree agree neither agree nor disagree strongly disagree
disagree
Fig 4
INTERPRETATION: From the above graph it is clear that 80% of the respondents feel that
the process of depositing and withdrawing money from the by ICICI bank isn’t complex; 16%
of the respondents are neither happy nor have any problem and remaining 4% respondent
face problem in depositing and withdrawing money from the ICICI
5. Are satisfied you with the way the queries of the customers have been resolved by the
ICICI bank?
No. of respondents
Strongly agree 23
Agree 16
Neither agree nor disagree 10
Disagree 0
Strongly disagree 1
Table 5 : Queries resolved
Sales
strongly agree agree niether agree nor disagree disagree strongly disagree
Fig 5.
INTERPRETATION: From the above graph it is clear that 82% respondent’s query and conflict
has been easily resolved by the ICICI bank; 16% of the respondents are neither happy nor
have any problem and remaining 4% respondent feels that their problems have not been
resolved in the best way by the ICICI bank.
6. Do you agree that minimum account limit is not high and easy to maintain in the ICICI
bank?
No. of respondents
Strongly agree 5
Agree 17
Neither agree nor disagree 16
Disagree 9
Strongly disagree 3
Table 6 : minimum account limit not high
Chart Title
strongly disagree
disagree
agree
strongly agree
0 2 4 6 8 10 12 14 16 18
Fig 6
INTERPRETATION: From the above graph it is clear that 44% of the respondents are satisfied
with the minimum account limit and easy maintenance of the in the ICICI bank; 32% of the
respondents are neither happy nor have any problem and remaining 24% respondent feels
that minimum account limit isn’t good and face some problem in operating their accounts.
7. According to you which service provided by the ICICI bank is best?
Fig7
INTERPRETATION: From the above graph it is clear that majority of the respondents would
feel that new account process, inquiry facility, depositing and withdrawing process & online
services are the best services provided by the ICICI bank; 14% like friendliness of personnel
and the remaining like parking facilities, convenience of location etc. as best services among
the various services provided by the ICICI bank.
8. What are problems that you face whenever you make a visit to the ICICI Bank?
Interpretation: From the above graph it is clear that majority of the respondents face
theproblem of parking and location of the branch of the ICICI bank i.e.74; 16% face the
problemwhile performing online services and the remaining face the problem in depositing
and withdrawing process, new account opening process in the ICICI bank.
9. Are satisfied you with the services provided by the ICICI bank?
No. of respondents
Strongly agree 21
Agree 16
Neither agree nor disagree 9
Disagree 6
Strongly disagree 1
Table 9: satisfied
Sales
strongly agree agree niether agree nor disagree disagree strongly disagree
Fig 9
INTERPRETATION: From the above graph it is clear that 74% of the respondents are satisfied
with the dealing of the ICICI bank, 16% are not fully satisfied and 18% are satisfied to some
extent.
Findings and Conclusion
From the analysis of the results and based on the objectives of the study the following
findings can be ascertained.
LIMITATION
This study is limited to the consumers with in New Delhi city. The study will be able to reveal
the preferences, needs, satisfaction of the customers regarding the banking services, It also
help banks to know whether the existing products or services they are offering are really
satisfying the customers’ needs.
Suggestions and recommendations
With regard to banking products and services, consumers respond at different rates,
depending on the consumer’s characteristics. Hence ICICI Bank should try to bring their new
product and services to the attention of potential early adopters.
Due to the intense competition in the banking sector, the ICICI Bank should adopt
better strategies to attract more customers.
ICICI Bank should select the location for its branch in such a way that the parking
problem should be solved, as more than half of the respondents are facing this
problem.
ICICI Bank should come up with various supporting policies to increase the
awareness level among the consumers about the new online services.
ICICI Bank should ask for their consumer feedback to know whether the consumers
are really satisfied or dissatisfied with the service and product of the bank. If they
are dissatisfied, then the reasons for dissatisfaction should be found out and should
be corrected in future.
ICICI Bank should try to increase the Brand image through performance and service
then only the customers will be satisfied.
Majority of the people find banking important in their life, so the ICICI Bank should
employ the strategies to convert the want in to need which will enrich their
business.
BIBLIOGRAPHY
www.rbi.org.in
www.moneycontrol.com
www.nseindia.com
www.icicibank.com
www.google
ANNEXURE I
QUESTIONNAIRE
1. How long have you been customer of the ICICI bank?
<1 year 1-4 years
4-7 years >7 years
2. Do you always get the prompt service whenever you visit the ICICI
bank branch?
Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly disagree
3. Do you agree that the procedure to open an account with the ICICI
bank is difficult?
Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly disagree
4. Do you agree that the process of depositing and withdrawing
money from the ICICI bank is complex?
Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly disagree
5. Are satisfied you with the way the queries of the customers have
been resolved by the ICICI bank?
Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly disagree
6. Do you agree that minimum account limit is not high and easy to
maintain in the
ICICI bank?
Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly disagree
7. According to you which service provided by the ICICI bank is best?
Depositing and withdrawing money
Query handling
New account process
Friendliness of bank personnel
Minimum account limit is not high
Easy maintenance of account
Parking facilities and accessibility
Convenience of location
Online services
8. What are problems that you face whenever you make a visit to the
ICICI Bank?
Depositing and withdrawing money
Query handling
New account process
Friendliness of bank personnel
Minimum account limit is not high
Easy maintenance of account
Parking facilities and accessibility
Convenience of location
Online services
9. Are satisfied you with the services provided by the ICICI bank?
Strongly agree
Agree
Neither Agree nor Disagree
Disagree
Strongly disagree