A RESEARCH PROJECT ON DIFFERENCE IN CUSTOMER SATISFACTION LEVEL OF STATE BANK OF INDIA AND INDUSTRIAL CREDIT AND INVESTMENT CORPORATION

OF INDIA LTD (ICICI LTD) Submitted to

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR In partial fulfillment for the award of the degree of

MASTER IN BUSINESS ADMINISTRATION 2008-10

RIMT-INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY

Under supervision of Mr. MANPREET RAI

Submitted by HARPREET SINGH Roll no. -80802317094 Major-Marketing Minor-Finance

ACKNOWLEDGEMENT

I express my gratitude to Mr.Manpreet rai, faculty guide who has given me moral support to do my project work.

I also extend my thankfulness to the management of ICICI Bank Ltd. and SBI for the support and information provided towards the completion of this project report.

Table of Contents CHAPTER NO. NO. TITLE PAGE

ACKNOWLEDGEMENT

1. 1.1. 1.2 1.3 1.4

INTRODUCTION State bank of india Company profile of SBI Associate banks. Services 5 8 10 12

1.5 1.6 1.7

Company profile of ICICI. History Personal banking..

13 14 18

2.

RESEARCH METHODOLOGY 2.1. 2.2. Objectives of the study Sources of data. 20 22

Limitations of the Study

23

4.

DATA ANALYSIS AND INTERPRETATION

24

5.

FINDINGS , RECOMMENDATIONS AND CONCLUSION..30

5.1.

FINDINGS

31

5.2.

RECOMMENDATIONS..

32

5.3.

CONCLUSION.

33

BIBLIOGRAPHY..

34

ANNEXURE.

35

INTRODUCTION

1.1 STATE BANK OF INDIA

Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. Early history: Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay acted as quasi-central banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a onsequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning oday, is the oldest Joint Stock bank in India. When the American Civil War stopped the supply of cotton toLancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period ailed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French colony, followed. 5

Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy.

The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district.Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". Post-independence: The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy.

This resulted into greater involvement of the state in different segments of the economy including banking and finance. However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 July, 1969. 6

Nationalization:

By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19.

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. The nationalized banks were credited by some, including Home minister P. Chidambaram, to have helped the Indian economy withstand the global financial crisis of 2007-2009. Liberalization: In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. 7

1.2 Company Profile of SBI:

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India.

The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services, fund management, factoring services, primary dealership in government securities, credit cards and insurance. The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ) 2-State Bank of Hyderabad (SBH) 3-State Bank of India (SBI) 4-State Bank of Indore (SBIR) 5-State Bank of Mysore (SBM) 6-State Bank of Patiala (SBP) 7-State Bank of Saurashtra (SBS) 8-State Bank of Travancore (SBT)

The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India 8

Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. SBI's International Banking Group delivers the full range of

cross-border finance solutions through its four wings - the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division.

State Bank of India (SBI) (LSE: SBID) is the largest bank in India. If one measures by the number of branch offices and employees, SBI is the largest bank in the world. Established in 1806 as Bank of Calcutta, it is the oldest commercial bank in the Indian subcontinent.

SBI provides various domestic, international and NRI products and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth. The government nationalized the bank in 1955, with the Reserve Bank of

India taking a 60% ownership stake. In recent years

the bank has focused on three

priorities, 1), reducing its huge staff through Golden handshake schemes known as the Voluntary Retirement Scheme, which saw many of its best and brightest defect to the private sector, 2), computerizing its operations and 3), changing the attitude of its employees (through an ambitious programme aptly named 'Parivartan' which means change) as a large number of employees are very rude to customers. Roots: The State Bank of India traces its roots to the first decade of 19th century, when

the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806.

The government amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras on 27 January 1921, and named the reorganized banking entity the Imperial Bank of India. All these Presidency banks had been incorporated as joint stock companies, and were the result of the royal charters. The Imperial Bank of India continued as a joint stock company. 9

Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank, at least in terms of issuing the currency.

1.3 Associate banks:

There are seven other associate banks that fall under SBI. They all use the "State Bank of" name followed by the regional headquarters' name. These were originally banks belonging to

princely states before

the government nationalized them in 1959. In tune with the

first Five Year Plan, emphasizing the development of rural India,

the government

integrated these banks with the

State Bank of India to expand its rural outreach.

The State Bank group refers to the seven associates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, the group is merging all the associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value.

Foreign Offices:
State Bank of India is present in 32 countries, where it has 84 offices serving the international needs of the bank's foreign customers, and in some cases conducts retail operations. The focus of these offices is India-related business. .

State Bank of India has often acted as guarantor to the Indian Government, most notably during Chandra Shekhar's tenure as Prime Minister of India. With more than 9400 branches and a further 4000+ associate bank branches, the SBI has extensive coverage.

Following its arch-rival ICICI Bank,

State Bank of India has electronically

networked most of its metropolitan, urban and semi-urban branches under its Core Banking

System (CBS), with over 4500 branches being incorporated so far.

The bank has

the largest ATM network in the country having more than 5600 ATMs [1]. The State Bank of India has had steady growth over its history, though the Harshad Mehta scam in

1992 marred its image. In recent years,

the bank has sought to expand its overseas

operations by buying foreign banks. It is the only Indian bank to feature in the top 100 world banks in the Fortune Global 500 rating and various other rankings. 10

Activities:
State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad. The State Bank of India 14 Local Head Offices and 57 Zonal Offices are located at important cities spread throughout the country. State Bank of India has 52 foreign offices in 34 countries across the globe. The Corporate Accounts Group is a Strategic Business Unit of the Bank set up exclusively to fulfill the specialized banking needs of top corporate in the country. The main activities of are into Personal Banking. NRI Services. Agriculture. International. Corporate. SME. Domestic Treasury.

11

1.4 SERVICES
State Bank of India offers the following services to its customers Domestic Treasury. SBI Vishwa Yatra Foreign Travel Card. Broking Services Revised Service Charge. ATM Services. Internet Banking. E-Pay. E-Rail. RBIEFT. Safe Deposit Lockers. Gift Cheques. MICR Codes. Foreign Inward Remittances.

Moreover, State Bank of India has Colleges/Institutes/Training Centers that are the seats of learning and research and development. It caters not only to the employees of State Bank of India but also other banks/establishments in India and abroad. SBI Bank India had Total Income of Rs 68376.83 crore for the financial year 2006 -07. State Bank of India has posted Net Income to the tune of Rs 6364.38 crore or the financial year 2006 -07.

12

ICICI 1.5 Company Profile of ICICI:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,849.70 billion (US$ 82 billion) at September 30, 2008 and profit after tax Rs. 17.42 billion for the half year ended September 30, 2008. The Bank has a network of about 1,400 branches and 4,530 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

13

1.6 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 project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial 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. 14 The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's largest private sector bank in market capitalization and second largest overall in terms of assets. Bank has total assets of about USD 100 billion (at the end of March 2008), a network of over 1,399 branches, 22 regional offices and 49 regional processing centres, about 4,485 ATMs (at the end of September 2008), and 24 million customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest issuer of credit cards in India.
[1]

. ICICI Bank

has got its equity shares listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai.

15 This includes wholly owned subsidiaries in Canada, Russia and the UK, offshore banking units in Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (NonResident Indian) population in particular. ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. Sangli Bank was amalgamated with ICICI Bank. ICICI Bank raised Rs 20,000 crore (approx $5 billion) from domestic and international markets through a follow-on public offer. ICICI Banks GBP 350 million international bond offering marked the inaugural deal in the sterling market from an Indian issuer and also the largest deal in the sterling market from Asia. Launched Indias first ever jewellery card in association with jewellery major Gitanjali Group. ICICI Bank became the first bank in India to launch a premium credit card -- The Visa Signature Credit Card.

The foundation stone for a regional hub in Gandhinagar, Gujarat was laid. ICICI Bank introduced SME Toolkit, an online resource centre, to help small and medium enterprises start, finance and grow their business. ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan agreement in Singapore. ICICI Bank became the first private bank in India to offer both floating and fixed rate on car loans, commercial vehicles loans, construction equipment loans and professional equipment loans.

16 In a first-of-its-kind, nation wide initiative to attract bright graduate students to pursue a careers in banking, ICICI Bank launched the "Probationary Officer Programme". Launched Bank@Home services for all savings and current account customers residing in India ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multitranche issue backed by four different asset categories. It is also the largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in Asia (ex-Japan and Australia) since the beginning of 2007. ICICI Bank launches ICICIACTIVE-Banking Interactive Service - along with DISH TV, which will allow viewers to see information about the Bank's products and services and contact details on their DISH TV screens. ICICI Bank and British Airways launch a co-branded credit card, designed to earn cardholders accelerated reward points with every British Airways flight or by spending on everyday purchases.

17

1.7 Personal Banking:

Deposits Loans Cards Investments Insurance Demat services Wealth management

18

RESEARCH METHODOLOGY

19

OBJECTIVES OF THE STUDY:

1.

To study whether the customers are satisfied with their services among

ICICI bank and SBI bank.

2. 3.

To know about the Customer preferences among ICICI and SBI bank To give Suggestions to improve the services.

20

SAMPLING DESIGN Target population:

The target population in this research refers to the bank customers who are having an account in SBI bank and ICICI bank due to the convenience in collecting the data. The respondents can be any gender, any income level, any occupation and any education level.

Sampling unit

The sampling units are customers of ICICI bank and SBI bank.

Sample size
This research selects 100 respondents as the sample size due to limited of time by asking

them that they are having an account in SBI bank and ICICI bank due to the convenience in collecting the data. The respondents can be any gender, any income level, any occupation and any education level.

Sampling plan: We are going to collect the data from the ATMS and also by visiting the
bank.

21

2.1 Sources of data:

The data is basically primary in nature. It was obtained from the customers.

Data Collection Method:

Our communication approach was basically structured questioning, that is personal interview with the aid of printed questionnaires.

22

Limitations of the study:

Due to the following unavoidable and uncontrollable factors the factors, the result might not be accurate. Some of the problems faced while conducting the survey are as follows: Time and cost constraints were also there. Chances of some biasness could not be eliminated. A Samples size of hundred has been use due to time limitations. A majority of respondents show lack of cooperation and are biased towards their own opinions.

23

DATA ANALYSIS & INTERPRETATION

24

The customers were asked on different parameters like Interest Rates provided by their respective banks, Branch Visit Experience, Problem Solving Ability and Online/Telephone services. We asked them to rank it accordingly what is the most important of these and what decides their banking

experience.We asked 60 respondents in total, 30 from each bank and asked them to rank these parameters according to their preference. Interest Rate Provided Branch Visit Problem Solving Online/Telephone Services

ICICI Bank

20%

40% 20%

30% 25%

10% 15%

SBI Bank 40%

Interpretation
It was found out that while 20% of the customers of ICICI preferred interest rates as top priority for choosing their bank as compared to 40% in SBI. Exactly the same way branch visit, problem solving and online/telephone services are at 40,30 and 10 for ICICI and 20,25 and 15 for SBI respectively

25

Branch Visit Satisfactory level:

1
ICICI BANK SBI BANK

2 40 30

3 20 40

4 0 10

40 20

1= Best 4= Worst

Interpretaion:
It was found out that while 40% of the customers of ICICI bank were extremely satisfied with the branch visit experience as compare to 20% in SBI. Later 0% of ICICI customers were dissatisfied whereas 10% found to be dissatisfied with SBI.

26

Problem solving experience:

1 ICICI BANK 40 ICICI BANK 30 2 30 35 3 20 20 4 10 15

Interpretation:
40% of the ICICI customers were satisfied with the services provided by their bank and 10% are dissatisfied. In SBI bank 30% of the customers are satisfied and 15% are dissatisfied from the services provided by the bank

27

Rates provided by the bank:

1 ICICI BANK 30 SBI BANK 50 2 30 40 3 30 10 4 10 0

Interpretation:
Interestingly 50% of the customers of SBI were extremely satisfied with the rates provided by their bank as compare to 30% in ICICI bank. 0% were dissatisfied with the rates of SBI as compare to 10% of ICICI

28

Online/ telephone banking:

1 ICICI BANK0 4 SBI BANK40 2 40 30 3 10 20 4 10 10

Interpretation:

40% of both SBI and ICICI were found satisfied with online/ telephone banking whereas 10% of both SBI and ICICI were found dissatisfied with the online services. 40% of ICICI Bank were found to be some what satisfied with the services as compared to SBI Bank at 30%.

29

FINDINGS RECOMMENDATIONS AND CONCLUSION

30

4.1. Findings:
A. Both the banks SBI and ICICI are in a real close situation when it comes to customer satisfaction on the services they provide. B. SBI scores high in the area of interest rates provided and that takes the customer satisfaction index ahead of ICICI bank. C. In terms of Branch visit experience ICICI has done a lot better than SBI. D. Equal percentages of people were found to be satisfied with the online services provided by their respective banks. E. Many of the respondents are saying the reason to choose the services of the ICICI bank is because they are good in efficient customer service and efficient complaint handling. F. And many of the respondents are not aware of the many services rendered by the ICICI bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the day balance in mobile, etc.

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4.2 Recommendations:

Since many of the respondents are not aware of the key services. The bank has to take some initiatives. The bank can post a list of services that they are rendered to the customers inside the bank Premises. And they can post demo of all these services in their bank website. The bank can also send a post to there customers by informing there services and how to proceed with that and all details they can mention it in the post. State Bank Of India can concentrate on their Branches as they scored low on this parameter. They need to improve the outlook of their bank. ICICI Bank can make their rates more competitive as SBI score the most here. ICICI bank can look to attract more number of customers and also increase the satisfaction level of their existing customer by taking care of this parameter.

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4.3 Conclusion:

There is a tough competition between both the banks and scored differently on each of the different parameters. Although the customer satisfaction index is real close for both the banks but this time SBI has emerged as a leader beating ICICI.

Since both the banks are competing equally with each other. But SBI bank is little bit below the line in customer complaints handling when compared to ICICI bank. The ICICI bank is little bit below the line in concentrating on interest rates when it comes to SBI bank.

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7. Bibliography

www.googlesearch.com www.icicibank.com www.sbi.co.in www.iupindia.org

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ANNEXURE

35

QUESTIONNARE NAME: GENDER: AGE: OCCUPATION:

Q1. WHY DID YOU OPEN YOUR ACCOUNT IN THIS BANK ? 1. ONLINE SERVICES 3. BRANCH VISIT EXPERIENCE 2. INTEREST RATE IS HIGH 4. PROBLEM SOLVING

Q2. DO YOU THINK THAT INTEREST RATE PROVIDED BY THE BANK IS MORE ATTRACTIVE THAN OTHER BANKS ? 1. STRONGLY AGREE 3. DISAGREE 2. AGREE 4. STRONGLY DISAGREE

Q3. ARE YOU AWARE OF THE ONLINE SERVICES OFFERED BY THE BANK ? 1. AWARE OF ALL 3. AWARE ABOUT MANY 2. AWARE ABOUT SOMETHING 4. AWARE ABOUT NOTHING

Q4. OUT OF THE FOLLOWING SERVICES ,WHICH SERVICES ARE YOU AVAILING ? 1.ATM 3.NET BANKING 5.ALL 2. CREDIT CARD 4. MOBILE BANKING 6. NONE

Q5. ARE YOU SATISFIED WITH THE ONLINE SERVICES YOU ARE USING ? 1. YES 3. NOT MUCH 36 Q6. IS SUFFICIENT INFORMATION AVAILABLE ON THE INTERNET TO SOLVE YOUR PROBLEM ?
1.STRONGLY AGREE 3. DISAGREE 2. AGREE 4. STRONLY DISAGREE

2. NO. 4. NOT AT ALL

Q7.ABOUT HOW LONG DID YOU HAVE TO WAIR BEFORE SPEAKING TO A REPRESENTATIVE ? 1. THREE MIN 3. FIVE TEN MIN. 2. THREE-FIVE MIN. 4. MORE THAN TEN MIN.

Q8. HOW LONG DID IT TAKE TO GET YOUR PROBLEM RESOLVED ? 1. IMMEDIATE RESOLUTION 3.B/W 2-3 DAYS 2.LESS THAN A DAY 4. A WEEK.

Q9. HOW MANY TIMES DID YOU HAVE TO CONTACT CUSTOMER SERVICE BEFORE PROBLEM WAS CORRECTED ? 1. ONCE 3.THREE TIMES 2. TWICE 4.MORE THAN THREE TIMES

Q10. ARE YOUR SATISFIED WITH YOUR MOST RECENT BRANCH VISIT EXPERIENCE ? 1. FULLY SATISFIED 3. NOT SATISFIED 2. TO SOME EXTENT 4. VERY WORST EXPERIENCE

Q11. DOES REPRESENTATIVE OF THE BANK HANDLES YOUR QUARIES SERIOUSLY ?

1. YES 3.SOMETIMES

2. NO 4. NEVER

Q.12. DO YOU FIND DISCREPANCIES IN YOUR PASS BOOK ? 1. NEVER 3. OFTENLY 2. RARELY 4. ALWAYS 37

Q.13.DO YOU FIND YOUR STATEMENT OF ACCOUNT UP TO DATE AND CORRECT ? 1. ALWAYS 3. RARELY 2. NOT ALL THE TIME 4. NEVER

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7. Bibliography

www.googlesearch.com www.icicibank.com www.sbi.co.in www.iupindia.org

39