Professional Documents
Culture Documents
Consumer Satisfaction in Iob Bank
Consumer Satisfaction in Iob Bank
1
INTRODUCTION
The modern concepts of marketing realized that measuring consumer needs or
behavior was not enough.” CONSUMER SATISFICATION” should be the core and then the
correct perception on which marketing policies of our organization should be built.
“Management must think of itself not as producing products but as providing customer
creating value satisfaction.”
Customer satisfaction has a vital role in sustaining and improving hold on the market.
Brief descriptions about the various measures that are needed to improve customer orientation
have also been dealt with.
Consider the fact todays customer face a plenitude of products in every category.
Customer will be having high and raising expectation of quality and service. In the face of their
vast choices, the customer will gravitate to the offering that the best meet their individual needs
and expectation. They will buy one of the bases of their perception value.
Therefore it is not surprising that today’s winning companies are those succeed best in
satisfying indeed delighting their target customer. They pay extreme attention to quality and
service to meeting and even exceeding customer expectation. They complete vigorously and at
the co-operated smartly with their strategy partners in their supply and distribution chain. They
pursue efficiently and yet are responsible and flexible.
Customer satisfaction is the outcome felt by buyers who have expectation. Customers are
satisfied when their expectation are met and delighted when their expectations are exceeded.
Satisfied customers remain loyal longer, buy more, and are less sensitive and talk favorable
about the company. From this it is clear that the satisfied customer will be less sensitive towards
the fluctuating price and offensive marketing typically cost more than defensive marketing,
because it requires much effort and cost to induce satisfied customers to switch away from their
current suppliers. We should also consider the fact that “the cost of attracting a new customer
may be five times the cost of keeping the current customer happy.” Therefore the companies are
intending in developing stronger bones and loyalty with their customers.
2
DEFINITIONS:
Definition 1: Customer satisfaction is equivalent to making sure that product and service
performance meets customer expectations.
Definition 2: Customer satisfaction is the perception of the customer that the outcome of a
business transaction is equal to or greater than his/her expectation.
3
Expressed
Implied
Expressed Customer Expectations are those requirements that are written down in the contract
and agreed upon by both parties for example, product specifications and delivery requirements.
Supplier’s performance against these requirements is most of the items directly measurable.
Implied Customer Expectations are not written or spoken but are the ones the customer would
‘expect’ the supplier to meet nevertheless. For example, a customer would expect the service
representative who calls on him to be knowledgeable and competent to solve a problem on the
spot. There are many reasons why customer expectations are likely to change overtime. Process
improvements, advent of new technology, changes in customer’s priorities, improved quality of
service provided by competitors are just a few examples. The customer is always right.
Supplier’s job is to provide the customer what he/she wants, when he/she wants it. Customer
satisfaction is customer’s perception that a supplier has met or exceeded their expectations.
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—the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of
respondents for each customer gives a complete perspective of customer satisfaction. It may be
necessary to device a different questionnaire for each of them. Respondents must be provided a
way to express the importance they attach to various survey parameters. Respondents should be
asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement.
This gives a better indication of relative importance of each parameter towards overall customer
satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the
performance rating (scores) with importance rating (weighing).
6
NEED FOR THE STUDY
7
NEED FOR THE STUDY
To identify the satisfaction level of customer towards different types of service attributes,
To study about the bank about their customized products and services, according to the
consumer’s needed.
To study about the business tactics followed to stand against the competitors.
8
STATEMENT OF THE
PROBLEM
9
STATEMENT OF THE PROBLEM
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 IOB In
particular.
10
INDUSTRY PROFILE
11
INTRODUCTION TO BANKING IN INDIA
The banking section will navigate through all the aspects of the Banking System in India. It will
discuss upon the matters with the birth of the banking concept in the country to new players
adding their names in the industry in coming few years.
The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and
top 20 banks like IDBI, HSBC, ICICI, ABN AMRO,etc. has been well defined under three
separate heads with one page dedicated to each bank.
However, in the introduction part of the entire banking cosmos, the past has been well explained
under three different heads namely:
· History of Banking in India
· Nationalization of Banks in India
· Scheduled Commercial Banks in India
The first deals with the history part since the dawn of banking system in India. Government took
major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks
in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but
not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of
RBI Act 1934 lays down the condition of scheduled commercial banks. The description along
with a list of scheduled commercial banks are given on this page
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journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:
· Early phase from 1786 to 1969 of Indian Banks
· Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
· New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.
Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders. IN 1865 Allahabad Bank
was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in
1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve
Bank of India came in 1935.During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks, the Government
of India came up with The Banking Companies Act, 1949 which was later changed to Banking
Regulation Act 1949 as per amending Act of 1965 (Act No. 23of 1965). Reserve Bank of India
was vested with extensive powers for the supervision of banking in India as the Central Banking
Authority. During those day’s public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to traders.
Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In 1955,
it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on
19th July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India under
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Government ownership. The following are the steps taken by the Government of India to
Regulate Banking Institutions in the Country:
· 1949: Enactment of Banking Regulation Act.
· 1955: Nationalization of State Bank of India.
· 1959: Nationalization of SBI subsidiaries.
· 1961: Insurance cover extended to deposits.
· 1969: Nationalization of 14 major banks.
· 1971: Creation of credit guarantee corporation.
· 1975: Creation of regional rural banks.
· 1980: Nationalization of seven banks with deposits over 200 corers.
After the nationalization of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence about
the sustainability of these institutions.
Phase III
This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimha, a committee was set up by his name
which worked for the liberalization of banking practices. The country is flooded with foreign
banks and their ATM stations. Efforts are being put to give a satisfactory service to customers.
Phone banking and net banking is introduced. The entire system became more convenient and
swift. Time is given more importance than money. The financial system of India has shown a
great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics
shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime,
the foreign reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.
14
The scheduled commercial banks in India comprise of State bank of India and its associates (8),
nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and
regional rural banks. “Scheduled banks in India" means the State Bank of India constituted
under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State
Bank of India (Subsidiary Banks) Act,1959 (38 of 1959), a corresponding new bank constituted
under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980 (40 of1980), or any other bank being a bank included in the Second
Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-
operative bank”. “on-scheduled bank in India" means a banking company as defined in clause
(c) of section 5 of the Banking Regulation Act, 1949 (10 of1949), which is not a scheduled
bank".
The following are the Scheduled Banks in India (Public Sector):
· State Bank of India
· State Bank of Bikaner and Jaipur
· State Bank of Hyderabad
· State Bank of Indore
· State Bank of Mysore
· State Bank of Saurashtra
· State Bank of Travancore
· Andhra Bank
· Allahabad Bank
· Bank of Baroda
· Bank of India
· Bank of Maharashtra
· Canara Bank
· Central Bank of India
· Corporation Bank
· Dena Bank
· Indian Overseas Bank
· Indian Bank
· Oriental Bank of Commerce
· Punjab National Bank
· Punjab and Sind Bank
15
· Syndicate Bank
· Union Bank of India
· United Bank of India
· UCO Bank
· Vijaya Bank
The following are the Scheduled Banks in India (Private Sector):
· ING Vysya Bank Ltd
· Axis Bank Ltd
· Indus Bank Ltd
· ICICI Bank Ltd
· South Indian Bank
· HDFC Bank Ltd
· Centurion Bank Ltd
· Bank of Punjab Ltd
· IDBI Bank Ltd
The following are the Scheduled Foreign Banks in India:
· American Express Bank Ltd.
· ANZ Grid lays Bank Plc.
· Bank of America NT & SA
· Bank of Tokyo Ltd.
· Banquc Nationals de Paris
· Barclays Bank Plc.
· Citi Bank N.C.
· Deutsche Bank A.G.
· Hong Kong and Shanghai Banking Corporation
· Standard Chartered Bank.
· The Chase Manhattan Bank Ltd.
· Dresdner Bank AG.
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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.
Thissection 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)
· Bank Current Account - Bank Current Account can be opened by individuals / partnership
firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts,
etc.
· Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals /
partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates /
Societies /Trusts, etc.
· Bank Account Online - With the advancement of technology, the major banks in the public and
private sector has facilitatedtheir customer to open bank account online. Bank account online is
registered through a PC with an internet connection. The advent of bank account online has
saved both the cost of operation for banks as well as the time taken in opening an account.
PLASTIC MONEY
Credit cards in India are gaining ground. A number of banks in India are encouraging people to
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
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· Car Loan or Auto Loan
· Loan against Shares
· Home Loan
· Education Loan or Student Loan
In Personal Loan, one can get a sanctioned loan amount between Rs25, 000 to 10, 00,000
depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some
of the leading banks which deals in Personal Loan. Almost all the banks have jumped into the
market of car loan which is also sometimes termed as auto loan. It is one of the fast moving
financial products of banks.
Car loan / auto loan are sanctioned to the extent of85% upon the ex-showroom price of the car
with some simple paperwork’s and a small amount of processing fee.
Loan against shares is very easy to get because liquid guarantee is involved in it.Home loan is
the latest craze in the banking sector with the development of the infrastructure.
Now people are moving to township outside the city. More number of townships is coming up
to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan
in order to match the repayment capability of even middle class people. Almost all banks are
dealing in home loan. AgainSBI, ICICI, HDFC, HSBC are leading.
The educational loan, rather to be termed as student loan, is a goodbanking product for the mass.
Students with certain academic brilliance, studying at recognized colleges/universities in India
and abroad are generally given education loan / student loan so as to meet the expenses on
tuition fee/ maintenance cost/books and other equipment.
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 atype of Telegraphic Transfer or Tele Cash
Orders. It has been only a couple of years that banks have jumped into themoney transfer
businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e.
from US$213 bn. to US$233bn. in 2004. Economists say that the market of money transfer will
further grow at a cumulative 12.1% average growth rate through2009.
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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. This paper aims to foresee major
future banking trends, based on these past and current movements in the market. 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 reality with new-age banks such as YES Bank, and others too adopting single-PIN.
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
bethe key to success will be a better relationship management.
OVERVIEW
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 (you
and I) stand 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 environment 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. Inthe wake of greater financial
19
deregulation and global financialintegration, the biggest challenge before the regulators is of
avoiding instability in the financial system.
RISK MANAGEMENT
The future of banking will undoubtedly rest on risk managementdynamics. Only those banks
that have efficient risk managementsystem will survive in the market in the long run. The
effectivemanagement of credit risk is a critical component of comprehensive risk management
essential for long-term success of a banking institution. Although capital serves the purpose of
meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk
management systems. Coming years will witness banks striving to create sound internal control
or risk management processes. With the focus on regulation and risk management in the Basel
Framework gaining prominence, the post-Basel II era will belong to the
Banks that manage their risks effectively. The banks with proper risk management systems
would not only gain competitive advantage by way of lower regulatory capital charge, but would
also add value to the shareholders and other stakeholders by properly pricing their services,
adequate provisioning and maintaining a robust financial structure.
20
BANK PROFILE
21
BANK PROFILE
Established on 10th February 1937 by Mr. M. Ct. M. Chidambaram Chettyar, leader in banking,
insurance and industry areas, Indian Overseas Bank (IOB) had the twin aims of attaining
specialization in overseas banking as well as foreign exchange business. IOB has always been
talked about for its excellent presence and services. At the time of inauguration, IOB started its
business in three branches at the same time. The branches were located at Karaikudi and
Chennai in India and Rangoon in Myanmar, erstwhile Burma. It had a branch in Penang also.
During the time when India became an independent nation, Indian Overseas Bank was running
38 branches in India and 7 overseas branches. At that point of time, the Deposits of the bank was
Rs.6.64 corer and Advances was Rs.3.23 corer
IOB received the status of nationalized bank in the year 1969 along with other 13 major banks.
By this time, it had 195 branches. Gradually between the periods 1969 and 1992, IOB started
spreading its wings in foreign destinations like Colombo and Seoul.
IOB was the first bank to receive ISO 9001 Certification from Det Norske Verities (DNV),
Netherlands in the month of September 1999 for its Computer Policy and Planning Department.
Besides, in its journey, it has won many awards and accolades too. These include:
NABARD's award 2000-2001 for creating maximum number of credit links of Self Help
Groups in comparison to all the other Banks in Tamil Nadu
Best Award under the category of Banking Technology in the year 2001
22
here. All type of loans is provided here. Locker, DD, BC, gold coins etc., are the facilities given
here. Cathedral branch is CBS type.
WORKING HOURS;
In Indian overseas bank working hours is from 9:30AM to 4:30PM.
HEAD OFFICE;
The head office of the Indian overseas bank is located at mount road near spencer plaza
ADDRESS;
No; 763 Anna salai,
Chennai – 600002
1937-38: As mentioned above, IOB was international from its inception with branches
Indian Overseas Bank Rangoon, Indian Overseas Bank Penang, and Indian Overseas Bank
Singapore.
23
1941: IOB opened a branch in Malaya that presumably closed almost immediately because
of the war.
1973: IOB, Indian Bank and United Commercial Bank established United Asian Bank
Berhad. (Indian Bank had been operating in Malaysia since 1941 and United Commercial
Bank Limited had been operating there since 1948.) The banks set up United Asian to
comply with the Banking Law in Malaysia, which prohibited foreign government banks
from operating in the country. Also, IOB and six Indian private banks established Bharat
Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch. The
Baharat Overseas Bank is the only private bank that the Reserve Bank of India has permitted
to have a branch outside India. The ownership was: Indian Overseas Bank (30%), Bank of
Rajasthan (16%), Vysya Bank (14.66%), Federal Bank (19.67%), Karur Vysya Bank (10%),
South Indian Bank (10%) and Karnataka Bank (8.67%). Bharat Overseas serves the Indian
ethnic community in Thailand.
1991: Bank of Commerce (BCB), a Malaysian bank, acquired United Asian Bank (UAB). In
1999 BCB merged with Bank Bumiputra Malaysia to form Bumiputra-Commerce Bank
Berhad.
Indian overseas bank has being operated in Malaysia since 1941, and united commercial bank
limited has been operated since 1948. The bank has being set up united Asian company with
banking law in Malaysia, which prohibited foreign Govt. Bank from operating in the county.
Also I.O.B and other six bank Indian private bank etc. Bharath overseas banks as Chennai based
private bank to take over I.O.B Bangkok branch. The bharath overseas bank is the only private
bank, which the reserve bank of India has permitted to have a branch out side India.
25
BOARD OF DIRECTORS
26
While at Bank of India, he was also nominee director for STCI, IL & FS and Indo Zambia
Bank.
AT UCO BANK AS EXECUTIVE DIRECTOR
Shri Bhat was appointed by the GOI as Executive Director of UCO Bank on 2 nd February 2006
and held that position till his present assignment as CMD of Indian Overseas Bank. Shri Bhat
has made many contributions to the Banking Industry, as a member of several committees. He
was on the Technical Advisory Committee, Steering Group for Basel II, Committee on Credit
Advisory System for Exporters, and Working Group for revision of ALM, all of which were
constituted by Reserve Bank of India. He was also on the Indian Banks’ Association’s
Committee for drawing Road Map for implementation of Basel II.
With an overall exposure in Banking, his strengths lie in International Banking, Credit, Rural
Finance and Risk Management.
2. Shri Y.L. Madan
Executive Director
DOB : 24.08.1950
Qualification : M.Sc., MBA, CAIIB
Appointed on: 16.05.2008
Term ends on: 31.08.2010
(Date of Superannuation)
AT CANARA BANK
Shri Y L Madan joined Canara Bank in 1973 as Officer trainee and has 35 years of
experience. He served mostly in northern areas of Punjab, Haryana, Chandigarh, Bihar, Delhi
and had a posting at Overseas Exchange Company in Doha, Quatar, managed by Canara
Bank, He had one year stint as Faculty in Canara Bank Training Centre, Mumbai. He was the
General Manager from October 2003 in Canara Bank before his appointment in IOB as its
Executive Director.
2. Smt.Nupur Mitra
Executive Director
DOB: 08.12.1952
Qualifications: B.Sc., LLB
27
Appointed on: 07.12.2009
Term ends on: 31.12.2012
(Date of Superannuation)
AT BANK OF INDIA
Smt.Nupur Mitra started her career with Bank of India in Lucknow as Direct Recruit Officer in
the year 1975. During her service spanning over 34 years, she served the Bank of India in
various capacities at the branches and its Zonal Offices.
She moved over to head London Branch on overseas assignment in mid 2001. Her overseas
tenure in London and thereafter as Chief Executive of Europe operations was the most satisfying
part of her career in terms of business and contribution.
After an exemplary overseas stint, back in the Motherland, she headed the Mumbai and
Chandigarh Zones of the Bank. As General Manager at the Corporate Office she was in charge
of Credit, SME, Retail Banking (Deposit & Advances), Card Products, Public Relations,
Depository Services, etc.
Smt. Nupur Mitra was the General Manager of Bank of India before her appointment in IOB as
its Executive Director.
3. Dr. Vinita Kumar
Government Nominee Director
DOB : 25.12.1954
Qualifications : MA (Economics) Ph. D., Indian
Economic Service (1977)
Nominated by GOI on: 10.06.2008 and will continue until further orders
Dr Vinita Kumar, is presently the Economic Adviser, Department of Financial Services,
Ministry of Finance, New Delhi.
She has published books on the following topics.
Economic Growth and Rural Poverty –The Indian Experience (1960-1995)
Learning to Share : Experience and Reflections on Participatory Rural Appraisal and
Community participation.
4. Smt. Chitra Chandramouliswaran
28
RBI Nominee Director
DOB : 26.07.1944
Qualification: M.Sc., CAIIB
Nominated by GOI on: 27.02.2007 and will
continue until further orders.
Smt Chitra Chandramouliswaran joined RBI in 1967 and has worked Industrial Export and
Credit Department, Banking Operations & Development and Foreign Exchange (Exchange
Control) Departments and RBI’s Central Office in Mumbai. She has also held senior
assignments in RBI’s Regional Offices in Delhi and Bangalore. She retired as Chief General
Manager of Reserve Bank of India in 2004.
She has been nominated by GOI as RBI nominee on the Board of the Bank with effect from
27.02.2007.
5. Shri N. Sridaran
Workmen Employee Director
DOB: 10.12.1950
Qualification: SSLC
Nominated by GOI on: 20.04.2007
Term ends on: 19.04.2010 and thereafter until his successor is duly
nominated or till he ceases to be a workmen employee of IOB or until further orders, whichever
is earlier.
Shri N Sridaran joined the Bank on 02.05.1972 and is having more than 36 years of banking
experience in IOB. He is presently a Special Cadre Assistant attached to Cathedral Branch of the
Bank.
6. Shri B. V. Appa Rao
Part-Time Non-Official Director
DOB: 06.06.1950
Qualifications: B.Com. F.C. A.
Nominated by GOI on: 29.08.2008
Term ends on: 28.08.2011
29
A qualified Chartered Accountant in 1980, Shri Appa Rao, immediately joined Andhra Bank as
Officer and served for 6 years. Leaving Andhra Bank, he joined M/s The Andhra Sugars Limited
of Andhra Pradesh in the Senior Management and served for 7 years.
He is presently a Senior Partner in M/s B.V. Rao Associates, Chartered Accountants, Guntur
started in the year 1994. During these 14 years of service he was Statutory Branch auditor for
Union Bank of India, State Bank of India and Andhra Bank. He was Concurrent Auditor for
various branches of Andhra Bank and Union Bank of India at Guntur. He was also Statutory
Auditor for the Divisions of United Insurance company Limited appointed by Comptroller and
Auditor General of India.
7. Shri Sooraj Khatri
Part-Time Non-Official Director – Second Time
DOB: 06.08.1955
Qualifications: B.Sc., LL.B., Dip. In Labour Law
Nominated by GOI on: 26.10.009
Term ends on: 25.10.2012 or until further orders,
Whichever is earlier?
Shri Sooraj Khatri is practicing legal profession as an Advocate in Rajasthan High Court. He is
also a journalist, Editor and Publisher.
8. Shri A.K. Bhargava
Shareholder Director
DOB: 10.05.1943
Qualification: B. Com., LL. B., CAIIB
Elected by Shareholders other than GOI on: 25.11.2008
Term ends on: 07.12.2011
31
PRODUCTS & SERVICES
32
PRODUCTS & SERVICES
IOB 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, IOB 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.
DEPOSITS:
No Frills SB Accounts
Current Account
Fixed Deposit
Reinvestment Deposit
SAVING DEPOSIT
33
In this type of deposit the depositor can deposit & withdraw whenever he is in need of money.
The depositor can also have Cheque book facility by maintain a balance of Rs.500/-, in the
account any person can deposit on behalf of the account holder can withdraw the amount.
FIXED DEPOSIT
Fixed deposit can be accepted for 30 days to 37 months and at various interest rates,
while depositing money in a fixed. The customer received a deposit receipt which is usually
market “NOT NEGOTIABLE” the deposit is repayable on demand & after the maturity period.
RECURRING DEPOSITS
Deposits received for 6 months to a maximum of 10 years as monthly fixed installment.
The amount saved and interest compounded at quarterly intervals paid at the time of maturity. In
case of monthly installments exceeding Rs.25000 a maximum period is restricted to 3 years.
RE-INVESTMENT DEPOSITS
Deposits accepted for 6 months to 10 years. Interest compounded quarterly and at the
time of maturity in case of deposits Rs. 15 lakhs maximum period is restricted to 3 years.
Personal Loan
Car Loan
Corporate Loans
Housing Loan
34
Home Improvement Loan
Educational Loan
Agricultural Loans
PERSONAL LOANS
Individual in employment, professional, self-employed not over 55 years of age is
eligible for personal loan to buy consumer durable such as electric, electronic goods metals and
wooden furniture etc. the minimum loan is 5 times the gross salary or 90% if the cost so the
article whichever is less.
COMMERCIAL LOAN
Range of services on existing loans & extended products like funding of new vehicles, refinance
on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product,
working capital loans & other banking products.
SUBHA GRUHA
Home loans scheme for residents’ individual up to Rs. 50 lakhs repayable in 20 years for
purchase construction of new/old house flats in the case of fixed rate opinion the maximum
repayment period is 10 years.
35
Loans schemes for repairing / renovation/up gradation of existing houses to individuals
in service, profession, trade. Loan up to Rs.5 lakhs repayable in 120 EMI with a holiday of
months.
LIQUIRENT
Loan schemes for owners of building let out to banks, corporate’s MNCs finance is
provided against future rent visible.
CREDIT CARDS
IOB 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
emergency assistance service,
Discounts, utility payments, travel discounts and much more.
DEBIT CARDS
The IOB Bank Debit Card is a revolutionary form of cash that allows customers to access their
bank account around the clock, around the world.
The IOB Bank Debit Card can be used for shopping at more than 100,000
Merchants in India and 13 million merchants worldwide.
TRAVEL CARD
Presenting IOB 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 IOB
36
Bank Travel Card. Issuedin duplicate. Offers the Pin based security. Has the convenience of
usage of Credit or Debit card.
The foreign exchange management act.1999 defines: “Foreign exchange means foreign
currency and includes---
(iii) Drafts, travellers Cheque, letters of credit or bills of exchange drawn by banks, intuitions or
persons outside India, bit payable in Indian currency”.
37
Thus, foreign exchange includes foreign currency, balances kept abroad, and instruments
payable in foreign currency, and instruments drawn aboard but payable in Indian currency.
Foreign exchange is the mechanism by which the currency of one country gets converted
into the currency of another country. Foreign exchange plays an important role in international
trade. The conversion of currencies is done by banks who deal in foreign exchange. These banks
maintain stocks of foreign currencies in the form of balances with banks abroad.
BY BRANCHES:
MONETARY LIMT:
If the branches purchase more than one sale at a time, whose aggregate value is rs.50,000/- and
above then also branches should contact dealings room at FEDCO/Th.B. ,Mumbai for rates and
repor6t the same by telex/fax even though the individual item may be below Rs.50,000/-.
If the branches purchase/sell foreign exchange (either as one or multiple) whose value at the
time of purchase/sale will be below Rs.50,000/- by applying the card rate, but during the day the
aggregate purchase or sale exceed Rs.50,000/-, then at the end of the day branches should report
the aggregate of such purchases/sales dealing room at FEDCO/Tr. Mumbai by teem/fax at the
card rate if the aggregate purchase or sale is below rs.50,000/-, branch should report through
exchange position memo immediately. The exchange position memo may be sent by teem or
details conveyed over phone according to the convenience of branch. Care should be taken not
to omit any transaction form reporting
In case of u since bill discounted, the branches should contact dealing room at FEDCO/TR. B,
Mumbai for rates irrespective of the amount of bill, i.e., even if the rupee amount of bill is less
than Rs.50,000/-. Branches should not apply card rates but apply card rates but apply rates
obtained from dealing room.
38
CHASSIFICATION OF SALE/PURCHASE TRANSACTIONS FOR
REPORTING PURPOSES
The purchase transactions are classified under the heads exports and non-exports. Similarly
the sale transactions are classified under the heads non-import
OBR realizations Inwards remittance The sales transaction National sales for transfer
like other than representing advance of Overdue exports bill
exports remittance to purchased / discounted/
overseas exporters for negotiated to
imports to India AAORB[Advance against
overdue export bills
receivable
39
Cheque / DD is FCL, WCTL, amount where the sales leg is not
sent on collection to rupees per training to imports
returning to
exports
Purchase of any Any other purchase ---------------- Any other sales other than
inwards transaction which is imports
remittance / non-export in nature
advance
remittance
towards exports
OTHER LOANS
The bank providing personal loans for purchasing television, refrigerator other house hold
article. There also offering loans to small scale industry, self-employed person & transport
operators.
NRI ACCOUNTS
NRI remittances
Remittances procedures
Tracking cell
40
Forward cover
Corporate Banking
IT & BPO
Rural
Financial inclusion
Secondary function refers to the various axillary service rendered by the bank
Safety locker
Clearing of bills
41
Axillary service
Overdraft of weavers
Financial analysis for PDS
Issue of DD
Refinance for product loan
Issue of BC
IOB jeevan
Health care plans
Vidya suraksha
Vidya jothi with suraksha
Liability insurance for retail loans.
NRI shield
42
ITC mutual funds
Sundram BWP Paribas funds
Principle IOB AMC (I) limited
Kotak mutual funds
Standard charted mutual funds
ICICI prudential mutual funds
UTI mutual funds
GOVERNMENT BUSINESS
CBS transaction
Insurance, revenue, annual, free for ATM cards
No frill account, no minimum balance changes and additional deduction of names in
deposits
Verification in nomination
Closure of A/c – SB /CDCC
Charges in operation of CDCC
Duplicate deposit receipt
No due certificate
Cancelation of DD / BC
Balance enquire by using ATM cards
Inward remittance through NEFT/ RTGS
43
DEMAND DRAFT CURRENT CHARGE IN IOB
44
45
STATEMENT OF THE
OBJECTIVES
PRIMARY OBJECTIVE
To study, analyze and evaluate the customer satisfaction level towards the different
services rendered by the bank and to identifying the critical success factors.
SECONDARY OBJECTIVES
To evaluate the awareness level of the customer on the product and services.
To find out the differences among perceived service and expected service.
To evaluate the process efficiency in customer query and requirement handling
To understand consumer’s preferences.
46
To access the degree of satisfaction of the customers
47
REVIEW OF LITERATURE
1. According to “Anne-Birte Stensgaard” Senior News Editor, June 20-2006 states that the
new insurance product is an arrangement between the United India Insurance Company
Limited and the IOB that provides Insurance cover for NRIs under the scheme - IOB NRI
Shield. The scheme covers NRIs during their stay in India, up to a maximum of 180 days a
year. NRIs during their visit to India find Insurance a pre-requisite to meet their
contingencies arising out of ailments, accidents, baggage loss and other perils like fire etc.
This scheme will meet all the Insurance requirements of the NRIs and covers varied risks
anticipated during their stay in India. All IOB bank account holders who desire to participate
in this insurance scheme can avail the facility at UAE Exchange outlets - an extensive
network in the UAE - to pay their premium amounts. On the occasion of the launch, Mr. T
S Narayanasami, Chairman and Managing Director of Indian Overseas Bank said, "IOB
which is a 69 years old bank has adapted successfully to the emerging trends by introducing
new products and services in financial sector. The Bank's power of performance has
48
stemmed from customer-centric business ethos, relentless IT initiatives and policy focus."
"Though we have association with many exchange companies in Gulf area, our association
with UAE Exchange Centre, UAE dates back to more than 25 years," added Narayanasami.
3. According to “Lassar, Walfried M., Manolis, Chris, Winsor, Robert” December 5 2000,
state that In the Seroquel Scale is the principal instrument in the services marketing literature
for assessing quality. The Technical/Functional Quality Framework is also a widely accepted
model on service quality. However, the ability of either to predict customer satisfaction has
not been looked into. Relating to the private banking industry, the Technical/Functional
Quality Framework was found to be more suited to predicting customer satisfaction.
5. According to “Lee, Haksik, Lee, Yongki, Yoo, Dongkeun “March 24 – 2002 State that the
Performance as perceived by customers rather than the difference between that perception and
the customer's prior expectations explains more the variation in service quality. It is the
customer's satisfaction that leads to perceived quality of service rather than the reverse. More
emphasis on responsiveness is expected to be placed on people-based services than on
equipment and facility based services.
49
6. According to “CBA REPORT” June 12 - 2005state that the banking industry had a better
than average score for customer satisfaction over the past year, according to the latest report by
American Customer Satisfaction Index (ACSI).
The score for how well the banking industry is doing overall (75, unchanged from last year),
compares to the overall Level of satisfaction in the US economy, representing all companies and
industries measured by the ACSI, which stands at 74.3, so the banking industry is doing slightly
better than the average of all consumer goods and services.
ACSI says their scores are a leading indicator of future consumer buying. "High satisfaction
scores make it easier for banks to increase their relationships with their customers and sell them
more products and services; low satisfaction has the opposite effect. In general, this translates
into a prediction of changes in revenues," according to ACSI.
7. According to “Robert W. Armstrong, Tan Boon Seng” September 2 2005 state that
Extends the current understanding of customer satisfaction at the business-to-business level in
the Asian banking industry. The main thrust of the paper is an attempt to conceptualize a
comprehensive model of satisfaction at the business-to-business level incorporating guanxi
(Chinese business relationships), relationship marketing and the disconfirmation paradigm. The
essence of the research highlighted the importance of relational constructs, in addition to the
disconfirmation paradigm, in impacting customer satisfaction at the business-to-business level in
the Singapore banking industry. At the business-to-business level in the Asian context, the
disconfirmation paradigm is still the predominant paradigm influencing the customer
satisfaction process. Relationship marketing and guanxi are significant in our comprehensive
model of corporate-customer satisfaction. Relationship marketing was found to have both a
direct and an indirect impact (through disconfirmation) on corporate-customer satisfaction.
Guanxi was found to exert an indirect impact on satisfaction as opposed to the initial
hypothesized direct impact on satisfaction.
50
8. According to “Luis Moutinho, Douglas T. Brownie” November 24 2008 State that the
nature and direction of the satisfactions that are delivered to customers of bank services are
explored, and the criteria used to evaluate these services are highlighted. The non-metric
multidimensional scaling technique enabled respondents' perceptions to be represented spatially.
It is revealed that respondents had high levels of satisfaction with regard to the location and
accessibility of branches and ATMs, and acceptance of the current levels of banking fees; but
expressed some caution in their evaluation of new and improved services.
9.According to“ U.S. Bank” June 2 -2008 State that the MINNEAPOLIS - (Business Wire)
U.S. Bank customers are increasingly loyal and satisfied, and they consider U.S. Bank’s services
to be of high quality and value according to the American Customer Satisfaction Index (ACSI)
research conducted in the fourth quarter of 2009.
U.S. Bank surpassed industry averages and topped the four largest banks in the country in
customer satisfaction, customer expectations, perceived quality, perceived value and customer
loyalty.U.S. Bank scored 77 in overall ACSI customer satisfaction, compared to the next
highest reported score of 73 and the industry average of 75. U.S. Bank exceeded reported
industry averages in the important categories of loyalty, quality and value by seven or more
points.
“We’ve experienced a flight to quality for many months, and now these results are evidence of
our success," said Richard Davis, chairman, president and chief executive officer of U.S.
Bancorp. “Our company has been a source of strength and stability and as these scores
demonstrate, customers are taking notice. At U.S. Bank, they find high quality service and
value, and perhaps most importantly, our customers are very loyal. As now the fifth largest
commercial bank in the United States with the fourth largest branch network, we are very
pleased with our results, and we know that this positive momentum is just the beginning. We are
focused on customer loyalty with a number of new programs aimed at moving us from very
good to great.”
ACSI independently surveys customers of the largest companies in consumer goods and services
industries. U.S. Bank has engaged ACSI to survey its retail customers over the last several years
and continues to improve its scores.
10. According to” D.M. Mahaptra” The business line April 11 - 2008(page4) State that
51
The working of the customer's mind is a mystery which is difficult to solve and understanding
the nuances of what customer satisfaction is, a challenging task. This exercise in the context of
the banking industry will give us an insight into the parameters of customer satisfaction and their
measurement. This vital information will help us to build satisfaction amongst the customers and
customer loyalty in the long run which is an integral part of any business. The customer's
requirements must be translated and quantified into measurable targets. This provides an easy
way to monitor improvements, and deciding upon the attributes that need to be concentrated on
in order to improve customer satisfaction. We can recognize where we need to make changes to
create improvements and determine if these changes, after implemented, have led to increased
customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord William
Thomson Kelvin (1824-1907).
11. According to “M. SadiqSohail and Balachandran Shanmugham” march 23 -2003 State
that
the paper examines the current trends in the e-commerce revolution that has set in motion in the
Malaysian banking sector and reports on an empirical research that was carried out in Malaysia
to study the customers’ preference for electronic banking and the factors, which they considered
influenced the adoption of electronic banking. Results based on the analysis of data relating to
300 respondents indicate that while there is no significant differences between the age and
educational qualifications of the electronic and conventional banking users, some differences
exists on other demographic variables. Analysis further reveals that accessibility of Internet,
awareness of e-banking, and customers’ reluctance to change are the factors that significantly
affected the usage of e-banking in Malaysia. The paper discusses on the implications of these.
Limitations of the study are highlighted and further research directions are suggested.
12. According to “Lee, Ming Chang; Hwan, Ing San”-Tokyo December 1, 2005 State that
the
This study examines whether there are economic benefits to be gained from improving service
quality in the Taiwanese banking industry. Service quality is perceived quality; and different
from objective or actual quality; being a judgment usually made within a customer evoked set.
Service quality resembles an attitude in many ways, and service quality is distinct from customer
satisfaction. Traditional financial ratios are not appropriate for measuring the economic benefits
of service quality improvement.
52
13. According to “Stellenbosch” London March 12 - 2004State that the Measuring user
satisfaction with information systems has attracted widespread research attention, given it is
often used as an indicator of success. The Internet has allowed applications to be extended to
customers of an organization, where interaction can take place through a web site, typically from
home or office. The focus of attention with such applications is customer satisfaction. In this
research, a 21-item, 7-factor instrument developed to measure customer satisfaction with web
sites that market generic digital products and services was modified slightly, and then
empirically tested and validated in the context of Internet banking specifically. A 19-item, 5-
factor validated instrument emerged, the factors being Customer Support, Security, Ease of Use,
Transactions and Payment, and Information Content and Innovation. The difference in number
of factors as compared to the generic instrument was attributed to the unique nature of Internet
banking web sites. These and other findings are discussed in the paper, and their implications
examined.
15. According to “Alessandro Arbore and Bruno Busacca” June 28 -2008 State that
The paper presents the results of an extensive study on the determinants of customer satisfaction
for a retail bank. In doing so, it uses a revised version of the traditional analyses based on
derived measures of attribute importance. The need for a revised methodology is prompted by
the insights of the two- and three-factor theories of customer satisfaction, such as Kano's
53
framework. Indeed, the evidence from 5000 customers of a prominent Italian bank confirms a
non-linear and asymmetric relationship between attribute performances and overall customer
satisfaction. The results from both a traditional and our revised approach are compared. While
this approach can be applied across different industries, it should not be assumed that the
numerical results presented in the paper apply to contexts with substantially different underlying
characteristics. General trends and implications for banking services are reported.
The article examines whether service quality of Indian commercial banks increases customer
satisfaction that fosters customer loyalty. Data were collected from 350 valued customers of
scheduled commercial bank branches in Orissa (India). A questionnaire elicited information on
socio–demographic variables along with human, technical, and tangible aspects of service
quality, customer satisfaction, and loyalty. Results suggest that better human, technical and
tangible aspects of service quality of the bank branches increase customer satisfaction. Human
aspects of service quality were found to influence customer satisfaction more than the technical
and tangible aspects. Customer satisfaction furthers customer loyalty. Increase in service quality
of the banks can satisfy and retain customers. In the Indian banking sector, human aspects are
more important than technical and tangible aspects of service quality that influence customer
satisfaction and promote and enhance customer loyalty.
17. According to “Megha TriveditheEconomics times” December 7 2009 (Page 7) State that
the
Customer satisfaction has become a major source of concern in retail banking business. With
exceptional progress in the establishment of banks in India, banks are increasingly interested in
retaining existing customers and targeting new customers. In this paper, it is proposed that
quality of service is an indicator of customer satisfaction. Measuring service quality involves
objective feedback about existing customers of ICICI bank with respect to their expectations and
services offered. Performance of a bank may be evaluated with regard to a set of satisfaction
parameters that indicate the strengths and weaknesses of an organization. Standard scale of
SERVQUAL developed by Parasuraman et al. has been used to conduct the survey. This study is
based on five overall dimensions of customer satisfaction with services provided by ICICI. The
five dimensions used to measure service quality are tangibility, reliability, responsiveness,
54
assurance and empathy. This study gives useful insights to boost customer satisfaction towards
ICICI.
The banking industry like many other financial service industries is facing a rapidly changing
market, new technologies, economic uncertainties, fierce competition and more demanding
customers and the changing climate has presented an unprecedented set of challenges (1).
Banking is a customer oriented services industry, therefore, the customer is the focus and
customer service is the differentiating factors (2).
The banking industry in India has undergone sea change since post-independence. More
recently, liberalization, the opening up of the economy in the 90s and the government's decision
to privatize banks by reduction in state ownership culminated in the banking reforms based on
the recommendations of Narasimha Committee (3). The prime mover for banks today is profit,
with clear indications from the government to 'perform or perish'. Banks have also started
realizing that business depends on client service and the satisfaction of the customer (4) and this
is compelling them to improve customer service and build up relationship with customers.
With the current change in the functional orientation of banks, the purpose of banking is
redefined. The main driver of this change is changing customer needs and expectations.
Customers in urban India no longer want to wait in long queues and spend hours in banking
transactions. This change in customer attitude has gone hand in hand with the development of
ATMs, phone and net banking along with availability of service right at the customer's doorstep.
With the emergence of universal banking, banks aim to provide all banking product and service
offering less than one roof and their endeavor is to be customer centric (5). With the emergence
of economic reforms in world in general and in India in particular, private banks have come up
in a big way with prime emphasis on technical and customer focused issues.
19. According to G. Mihelis6 Feb 2009 Commercial Bank of Greece states that Customer
satisfaction represents a modern approach for quality in enterprises and organizations and serves
the development of a truly customer-focused management and culture. Measuring customer
satisfaction offers an immediate, meaningful and objective feedback about clients’ preferences
and expectations. In this way, company’s performance may be evaluated in relation to a set of
satisfaction dimensions that indicate the strong and the weak points of a business organization.
This paper presents an original customer satisfaction survey in the private bank sector. The
55
implemented methodology is based on the principles of multicriteria analysis and preference
disaggregation modeling. The most important results are focused on the determination of the
critical service dimensions and the segmentation to customer clusters with distinctive
preferences and expectations.
56
RESEARCH METHODOLOGY
REASERCH METHODOLOGY
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 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
57
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.
4.2 SAMPLING
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 friendsand neighbors or people responding to a newspaper’s
invitation for readers to state their position on some public issue.
Sample size denotes the number of elements selected for the study. For the present study, 100
respondents were selected at random. All the 100 respondents were the customers of IOB in
cathedral Branch
58
The questionnaire consists of 2 types of questions.
i) open ended
This refers to a question that has no fixed alternatives to which the answer must confirm. The
respondent answers in his own words and at any length they choose.
It contains those questions in which the respondent is given a limited number of alternatives
responses from which he/she is to select the one that most closely matches his attitude.
Dichotomous questions
Multi-choice questions
Dichotomous questions
It refers to one, which offers the respondent a choice between only 2 alternatives and reduces the
issues to its simplest terms.
Multi-choice questions
A multiple-choice question refers to one, which provides several set of alternatives. Multiple-
choice questions can be used when an issue has more than two aspects.
According to the University of Madras Terms project is from the period of 1st January to March
31st. So, the 3 months are divided according to the following manner in order to be an effective
project.
January: focusing on the study of company as whole and identifying the problems and
framing the title, collecting information as well as details raring industry and also
framing objectives.
59
February: framing of questionnaire for data collection, information collected through
questionnaire for data collection and interpretation.
March: Research has been done by the researcher such as, analysis the data, tabulated,
and interpreted. From the interpretation the researcher list out certain findings,
suggestion, conclusion and rough copy submission for correction, after the correction fair
copy was prepared and submitted.
To know the response, the researcher used questionnaire method. It has been designed as a
primary research instrument. Questionnaires were distributed to respondents and they were
askedto answer the questions given in the questionnaire. The questionnaires were used as an
instrumentation technique, because it is an important method of data collection. The success of
the questionnaire method in collecting the information depends largely on proper drafting. So in
the present study questions were arranged and interconnected logically. The structured
questionnaire will reduce both interviewers and interpreters bias. Further, coding and analysis
was done for each question’s response to reach into findings, suggestions and finally to the
conclusion about the topic.
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 thecollection and analysis of data. It is a conceptual structure
with inwhich research is conducted. It facilitates smooth sailing of various research operations to
make the research as effective as possible.
4.6.2PRIMARY DATA
Primary data are those collected by the investigator himself for thefirst time and thus they are
original in character, they are collected for particular purpose.A well-structured questionnaire
was personally administrated to theselected sample to collect the primary data.
4.6.3SECONDARY DATA
60
Secondary data are those, which have already been collected by someother persons for their
purpose and published. Secondary data areusually in the shape of finished products. Two types
of secondary data were collected for the preparation of theproject work:
Internal Data was generated from company’s brochures, manualsand annual reports
External Data, on the other hand, was generated from magazines, research books, intranet and
internet (websites).
Percentage refers to a special kind of ratio percentage are used to describe relationship.
No. of. Customers x 100
Percentage=
Total No. of Customers
In weighted score method the weights are obtained by multiplying the rating given with the
frequency, this gives a very basic idea as to the factor carrying highest to lowest weight.
χ2 test was first used by Karl Pearson for testing the significance of discrepancy between the
experimental values and the theoretical value obtained under theory of hypothesis. This test is
known as chi- square test of goodness of fit. Karl Pearson proved that the statistic.
χ2-∑ (oi-Ei)2
Ei
61
Ei = Column Total x Row Total
Grand Total
Where:
Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research vise,
1. Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances that some
information might have been left out, however due care is taken to include all the relevant
information needed.
2. Sample size:
Due to time constraints the sample size was relatively small and would definitely have been
more representative if I had collected information from more respondents.
3. Accuracy:
62
It is difficult to know if all the respondents gave accurate information; some respondents tend to
give misleading information.
4. It was difficult to find respondents as they were busy in their Schedule and collection of data
was very difficult. Therefore, the study had to be carried out based on the availability of
respondents
63
DATA ANALYSIS
&
INTERPERTATION
DATA ANALYSIS
64
Analysis is the process of placing the data in an ordered form, combining them with the existing
information and extracting the meaning from them. In other words analysis is an answer to the
questions what message is conveyed by each group of the data “which are otherwise raw facts
are unable to give meaning full information. A raw data become an information only when they
are analyzed and put in a meaning form.
INTERPRETATION
TABLE 6.1
65
SL. NO ACCOUNT TYPE NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
Analysis: From the above table it could be inferred that 58% of the customers are choosing
savings account and very few of about 13% prefer NRI Account.
Interpretation: Most of the respondents are preferring savings account. Presently the bank
offers varieties of account services to the customer.
CHART 6.1
66
TABLE 6.2
67
SL. NO FACILITY LEVEL NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
1 Excellent 27 27%
2 Good 43 43%
3 Satisfactory 23 23%
4 Poor 7 7%
Analysis: From the above table it could be inferred that 43% of the customers are satisfied with
the service and quality of products of their bank. Only 7% of customers are says poor facility in
IOB.
Interpretation: Most of the respondents say IOB offering good facility to its customer. But to
the other end few people says the facilities are less.
CHART 6.2
68
TABLE 6.3
69
IOB’s Value Added Service
4 Recurring Deposit 7 7%
Analysis: From the above table it could be inferred that 57% of the customers are using senior
citizen service and only 7% are using recurring deposit scheme.
Interpretation: Most of the respondents are utilizing the value added service as senior citizen
accounts. But rarely very few people are choosing recurring deposit account.
CHART 6.3
70
TABLE 6.4
71
SL. NO PRODUCT NUMBER OF PERCENTAGE OF
RATING RESPONDENTS RESPONDENTS
1 Excellent 16 16%
2 Good 62 62%
3 Better 20 20%
4 Poor 2 2%
Analysis: From the above table it could be inferred that 62% of the customers rate IOB products
as Good. Only 2% of the people Rate IOB products as Poor.
Interpretation: Most of the respondents are rating the products as good. Moderate peoples are
rating as excellent. Only few people in the customers are rating the IOB products as poor.
CHART 6.4
72
TABLE 6.5
73
SL. NO REFERRING IOB NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
1 Yes 76 76%
2 No 18 18%
3 Not Sure 6 6%
Analysis: From the above table it could be inferred that 76% of the customers are ready to refer
IOB to others. Only 6% of customers are not sure what to do.
Interpretation: Most of the respondents are obviously ready to refer IOB to their friends,
relatives and others. But few of them are not sure on this decision also some people are straight
forward in not referring IOB to others.
CHART 6.5
74
TABLE 6.6
75
SL. NO IOB ACCOUNT NUMBER OF PERCENTAGE OF
OPERATIONS RESPONDENTS RESPONDENTS
Analysis: From the above table it could be inferred that 55% of the customers are having
relationship with the bank for about 1-5 years. Only 11% of customers are having more than 10
years of relationship with IOB.
Interpretation: Most of the respondents are satisfied with the service offered by IOB. Presently
the bank has more customers who have the account with them for more than a year and less than
5 years.
CHART 6.6
76
TABLE 6.7
1 100% 1 1%
2 99.99% 60 60%
3 99% 9 99%
4 99.9% 30 30%
Analysis: From the above table it could be inferred that 60% of the customers believe that the
gold offered by the IOB are 99.99% pure. Only 1% thinks that the purity of good offered by IOB
is 100%.
Interpretation: Most of the respondents have the clear idea on the purity of the gold. Since gold
cannot offered in 100% pure it is said to be in 99.99% pure.
CHART 6.7
78
TABLE 6.8
79
SL. NO INSURANCE NUMBER OF PERCENTAGE OF
PRODUCT RESPONDENTS RESPONDENTS
2 Investment 20 20%
3 Security 5 5%
Analysis: From the above table it could be inferred that 60% of the customers choose the entire
insurance product for their benefits. Only 5% of the customers choose the insurance product
offered them security.
Interpretation: Most of the respondents are investing in IOB for tax saving, investment and
security for their money. This shows that the customers believe IOB has a best insurance market
in India.
CHART 6.8
80
TABLE 6.9
81
SL. NO OTHER SERVICES NUMBER OF PERCENTAGE OF
IN IOB RESPONDENTS RESPONDENTS
4 Forex Exchange 7 7%
Analysis: From the above table it could be inferred that 54% of the customers feel the Visa
Debit Card is the service other than the general service. Only 7% of the people prefer to Forex
exchange.
Interpretation: Most of the respondents are utilizing the additional service of visa debit card
from IOB. But only few people are utilizing the Forex exchange and other services from IOB.
CHART 6.9
82
TABLE 6.10
83
SL. NO GOVERNMENT NUMBER OF PERCENTAGE OF
BUSINESS RESPONDENTS RESPONDENTS
SCHEME
2 PF Scheme 27 27%
3 Senior Citizen 3 3%
Account
Analysis: From the above table it could be inferred that 40% of the customers are pension
payment account holders. Only 3% of the account holders are senior citizen account holders in
the government retired account holders
Interpretation: Most of the respondents are having the pension payment in IOB since many of
the customers are government retired employees. Here few customers are senior citizen account
holders. One- third of the people have using the all schemes.
CHART 6.10
84
TABLE 6.11
85
SL. NO GOVERNMENT NUMBER OF PERCENTAGE OF
TAX RESPONDENTS RESPONDENTS
COLLECTION
Analysis: From the above table it could be inferred that 50% of the customers are paying all the
government taxes in IOB. Only 7% of the customers are paying only value added tax in IOB.
Interpretation: Most of the respondents feel that IOB is the good place to pay all type of
government taxes. Also this makes sure IOB is offering best class service for tax paying.
CHART 6.11
86
TABLE 6.12
87
SL. NO LOAN SCHEME NUMBER OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
1 Pushpaka 8 8%
2 Liquirent 15 15%
4 Vidya Jothi 5 5%
Analysis: From the above table it could be inferred that 72% of the customers are aware of the
Subh Gruha Loan. Only 5% of the customers are not sure on the vidhya Jothi.
Interpretation: Most of the respondents are Aware about the Subh Gruha in IOB. But few
customers are not so.
CHART 6.12
88
TABLE 6.13
4 House Wife’s 7 7%
Analysis: From the above table it could be inferred that 50% of the customers using locker
facility are business class people. Only 7% of the customers are house wife’s using locker
facility.
Interpretation: Most of the respondents say they are utilizing the locker facility in IOB. The
main players are business class people. Followed by government staff’s and then bank staff’s.
CHART 6.13
90
TABLE 6.14
1 Good 13 13%
2 Moderate 58 58%
3 Better 9 9%
4 Poor 20 20%
Analysis: From the above table it could be inferred that 58% of the customers are have
moderate relationship with IOB. Only 9% of the customers feel relationship between bank &
customer is better.
Interpretation: Most of the respondents are having a moderate relationship between the bank &
customer. But few customers are feeling it is better and some feel it is poor in relationship.
CHART 6.14
92
TABLE 6.15
1 2- 3% 5 5%
2 3- 4% 27 27%
3 5- 10% 40 40%
Analysis: From the above table it could be inferred that 40% of the customers are satisfied with
the interest rate slab. Only 5% of customers are not satisfied.
Interpretation: Most of the respondents are satisfied with the fixed rate slab with the bank.
Hence it is offering the interest rate at minimum level. Also few people are not aware of the
interest rate of fixed deposit in IOB.
CHART 6.15
94
TABLE 6.16
95
SL. NO CHARGES NUMBER OF PERCENTAGE OF
LEIVED BY IOB RESPONDENTS RESPONDENTS
1 High 26 26%
2 Moderate 64 64%
3 Low 10 10%
Total 100 100%
Analysis: From the above table it could be inferred that 64% of the consumers feel that the
charges are high comparatively from other banks. Only 10% of consumers are not satisfied in
charges levied by IOB.
Interpretation: Most of the respondents are not satisfied the charges levied by IOB. Customers
are expecting the charges to be reduced to get more benefit from the bank.
CHART 6.16
96
TABLE 6.17
97
SL. NO HOW YOU NUMBER OF PERCENTAGE OF
1 Advertisement’s 20 20%
2 Friends & Relatives 61 61%
3 Awareness 18 18%
4 Direct Selling Agents 1 1%
Total 100 100%
Analysis: From the above table it could be inferred that 61% of the consumers are referred by
friends & relatives for the best service offered by IOB. Only 1% of consumers are came by
direct selling agents.
Interpretation: Most of the respondents tell they are referred by their friends and relatives.
Where very few came by the advertisements and the awareness created by the bank. Very less in
count are generated by direct selling agents.
CHART 6.17
98
TABLE 6.18
99
SL. NO MOSTLY NUMBER OF PERCENTAGE OF
PREFERRED RESPONDENTS RESPONDENTS
LOAN
1 Personnel Loan 10 10%
2 Commercial Loan 8 8%
3 Housing Loan 72 72%
4 Educational Loan 5 5%
Total 100 100%
Analysis: From the above table it could be inferred that 72% of the consumers are choosing
housing loan
Interpretation: Most of the respondents prefer housing loan from IOB. Only few of the
customers prefer education loan and other loans in IOB
CHART 6.18
100
TABLE 6.19
101
SL. NO MANAGER NUMBER OF PERCENTAGE OF
DISCUSSION RESPONDENTS RESPONDENTS
1 Yes 68 68%
2 No 32 32%
Analysis: From the above table it could be inferred that 68% of the customers are satisfied since
the manager is available for any clarification. Only 32% of the customers says it is not followed
in IOB.
Interpretation: Most of the respondents are satisfied with the clarification facility with
manager. But some customers feel not so.
CHART 6.19
102
TABLE 6.20
1 Yes 95 95%
2 No 5 5%
Analysis: From the above table it could be inferred that 95% of the customers are aware that
IOB has the service outlet in abroad. Only 5% of the customers do not know there are any
branches in abroad.
Interpretation: Most of the respondents are aware that there are branches throughout the world
in important locations. Where we can see that many people are aware in the branch regarding the
abroad outlets.
CHART 6.20
104
TABLE 6.21
105
SL. NO CUSTOMER NUMBER OF PERCENTAGE OF
SUGGESTION RESPONDENTS RESPONDENTS
1 Yes 86 86%
2 No 12 12%
3 Not Sure 2 2%
Total 100 100%
Analysis: From the above table it could be inferred that 86% of the consumers are suggesting
that there are drawbacks within ION. Only 12% of consumers are sure that there are no internal
problems in IOB.
Interpretation: Most of the respondents tell that there are some internal problems and
drawbacks in IOB. Where few people saythat no problem in IOB.
CHART 6.21
106
WEIGHTED AVERAGE METHOD
TABLE 6.22
107
RATE THE FACILITIES PROVIDED AT IOB
Interference:
The drinking water facility available at IOB in cathedral branch is mostly impressive followed
by the hospitality service provided by the customer. Comfortable seating and Rest Room facility
need to be improved.
TABLE 6.23
108
SCORE AVG
TIN Facility
29 74 13 84 248 1.24
(PAN, TDS) III
Interference:
The various service provided by IOB. Share and Stock Broking rank first as the highly sorted
after service by customer. Followed by the investment in the mutual funds, while awaiting TIN
facility and insurance services are moderately utilized by the customer by the tax saving scheme
and other services are less.
TABLE 6.24
WEIGHTED
FACTOR EXCELLENT GOOD OK POOR RANK
SCORE AVERAGE
109
Immediate attention 52 41 3 4 266 0.43 I
Interference:
From the above table it can be interfered that the immediate attention followed by time taken for
service on online applicable by the users while quality of advice displaced of products dealt /
availability of application. Also office timing should be improved.
HO - There is no significant difference in the length of the service of the customer in IOB and
their type of service is available.
H1 - There is a significant difference in the length of the service of the customer in IOB and
their type of service is available.
OBSERVERED FREQUENCY:
110
Most of the service preferred by customer.
< 1 years 5 4 2 6 17
1-5 Years 35 15 0 5 55
5 -10 Years 10 3 2 2 17
>10 Years 5 3 2 1 11
TOTAL 55 26 6 14 100
EXPECTED FREQUENCY
10 5 3 3 21
30 13 3 7 53
9 4 1 2 16
6 2 1 1 10
55 24 8 13 100
O E O- E
CHI-SQUARE
5 10 -5 25 2.50 TABLE:
35 30 5 25 0.83
10 9 1 1 0.11
5 6 -1 1 0.17
4 5 -1 1 0.20
15 13 2 4 0.31
3 4 -1 1 0.25
3 2 1 1 0.50
2 3 -1 1 0.33
0 3 -3 9 3.00
2 1 1 1 1.00
2 1 1 1 1.00
6 3 3 9 3.00
5 7 -2 4 0.57
2 2 0 0 0111
1 1 0 0 0
Total= 100 ∑ =13.77
∑ = 13.77
= (4-1) (4-1)
v =3
H0 is rejected
INFERENCE
The calculated value is greater than the tabulated value H0 is rejected. This implies that the
significant difference in the length of the service of customer in IOB and the type of the service
available.
112
FINDINGS OF THE SYUDY
58% of the respondents are opinion that the customers are choosing saving account in IOB.
43% of the respondents are opinion that the customers are satisfied with the service and the
quality of products in IOB.
57% of the respondents are opinion that the customers are using senior citizen services in
IOB.
62% of the respondents rated that IOB products is good.
76% of the respondents are ready to refer IOB to others.
55% of the respondents have relationship with the IOB for about 1-5 years.
113
60% of the respondents are opinion that the gold offered in IOB is 99.99% pure.
60% of the respondents are opinion that all the insurance products of IOB are beneficial.
54% of the respondents are opinion that the Visa Debit card is the major service in IOB.
40% of the respondents are opinion that they are pension payment account holder in IOB.
50% of the respondents are opinion that they are paying all the government taxes through
IOB.
72 of the respondents are opinion that they are aware of Subh Gruha loan product of IOB.
50% of the respondents are utilizing the locker facility in IOB by business class people.
72% of the respondents are opinion that the publicity of IOB to the people is done through
friends & Relatives.
64% of the respondents are sure that the levied charges by IOB are low.
72% of the respondents are opinion that the customers prefer Housing Loan from IOB.
68% of the respondents are satisfied with the manager availability for any clarification.
58% of the respondents are opinion that the customers have moderate relationship with IOB.
95% of the respondents are aware of the IOB service outlets in abroad.
50% of the respondents agree that customers have some drawbacks and problems in IOB.
40% of the respondents are satisfied with the interest rate slabs.
36% of the respondents are impressively followed by the hospitality service of drinking
water in cathedral branch.
33% of the respondents are opinion that the stock broking ranks first as the highly sorted
after service by customer in IOB.
36% of the respondents are opinion that the immediate attention on any complaints.
71% of the respondents are opinion that they do not expect any more service from IOB.
55% of the respondents are opinion that the customers prefer ATM services.
114
SUGGESTIONS &
RECOMMENDATIONS
With regard to banking products and services, customers respond at different rates, depending
on the consumer’s characteristics. Hence I IOB should try to bring their new product and
services to the attention of potential early adopters.
Due to the intense competition in the financial market, IOB should adopt better strategies to
attract more customers.
Return on investment company reputation and premium outflow are most preferred attributes
that are expected by the respondents. Hence greater focus should be given to these attributes.
115
IOB should adopt effective promotional strategies to increase the awareness level among the
customers.
IOB should ask for their consumer feedback to know whether the customers 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.
The IOB brand name has earned a lot of goodwill and enjoys high brand equity. As there is
intense competition, IOBshould work hard to maintain its position and offer better service
and products to customers.
The 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 IOB should employ the
strategies to convert the want in to need which will enrich their business.
The bank may conduct events/ schemes week or months for promoting products.
A separate information desk marked as an investment consultancy provider may be
established for catering to the needs of the customers.
A refined data base may be used for sending personal reminders to the customers.
Strategic points may be identified for the displaying the potters. All the communications
may be bear the information/ logo of the different schemes.
Cost effective, visually appearing tools like bulletin board may be used for promotion.
Direct mailers may be sent to co-operate account holder.
116
CONCLUSION
CONCLUSION
117
I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions
enlisted, which I hope will take them miles ahead of competition.
In short, I would like to say that the very act of the concerned management at IOB in giving me
the job of critically examining consumer satisfaction towards financial products and services of
the company is a step in their continual mission of making all round improvements as a means
of progress.
118
BIBLOGRAPHY
BIBLOGRAPHY
Websites
www.wikipedia.com
www.thehindu.com
www.newyorktimes.com
www.economictimes.com
www.iob.in
119
Books Referred
“SERVICE MAKETING”,
Zeithaml.A
New Delhi
“BUSINESS STATISTICS”
G.P.Gupta
Sultanchand Publication
Mumbai
“General Banking”
IOB Edition
Chennai.
“Research Methodology”
Kothari.C.R
New Delhi
ANNEXURE
NAME :
AGE :
SEX :
TYPE OF CUSTOMER TO IOB :
120
c. Fixed Deposit
d. NRI
4. How do you rate the products and services offered by IOB than others?
a. Excellent
b. Good
c. Better
d. Poor
5. Will you suggest Indian Overseas Bank to your friends/ Relatives for its service?
a. Yes
b. No
c. Not Sure
9. What are the other products & services offered by IOB to the customers
a. Visa International Credit Cards
b. Visa Debit Card
c. IOB fine Gold
d. Forex Exchange
121
10. What are the government business schemes available for the customers through the banks?
a. Pension payment scheme
b. provident fund scheme 1968
c. Senior Citizen Scheme 2004
d. All the above
11. What type of taxes can be pay to the government through the banks?
a. Sales tax
b. Income Tax
c. Value Added Tax
d. All the above
12. Please provide us with Information about your awareness & satisfactory level for the
schemes
a) Pushpaka
b) Subh Gruha
c) Liquirent
d) Vidhya Joythi
13. What type of customer mostly using locker facilities in the bank?
a. Business people
b. government staffs
c. bank staffs
d. house wife’s
14. How is the relational ship between the customer and the bankers?
a. Good
b. Moderate
c. Better
d. Poor
15. How the fixed deposit interest rate slab varies in IOB from other banks
a. 2% - 3%
b. 3% - 5%
c. 5%- 10%
d. Above 10%
16. Give your opinion about the charges levied by IOB for the services provided
a. High
b. Moderate
c. Low
d. High for certain services
17. How would you know the products and services of IOB
a. Advertisements
b. friends & Relatives
c. Awareness
d. Direct Selling Agents
122
18. Which type of loan is mostly preferred by the customers
a. Personnel Loan
b. Commercial Loan
c. Housing Loan
d. Educational Loan
19. Can we have the discussion with the bank manager in case of any complaints or
clarifications?
a. Yes
b. b. No
20. Does the bank have any other outlets in abroad to server the customers globally?
a. Yes
b. No
21. Specify any drawbacks/ problems that you faced with IOB
a. Yes
b. No
c. None
Comfortable seat
Hospitality
Rest Room
Drinking Water
23. What is the Level of business with IOB from the day 1?
Stock Broking
Insurance
Tax Saving
123
Mutual Fund
Other Services
Immediate attention
online service
skill of employee
quality of advice
bank timing
Pamphlets
124