A

Comprehensive research project

On
Customers Perception on Banking Services.
Submitted To:

SMJV
CENTENARY
1915 2015

C K SHAH VIJAPURAWALA INSTITUTE OF MANAGEMENT, Vadodara.

IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Under
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide:
Ms. Savitha K
Associate Professor

Submitted By
Rinkal.P.Darji
Enrolment No:097050592046

M.B.A PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
April 2011
1

A single flower cannot make a garland or a single star can not make the
beautiful shiny sky at the night, same way a research work can never be
outcome of a single individuals talent or efforts. It is just like climbing a high
peak, step by step, accompanied with bitterness, hardships, frustration,
encouragement and trust and with so many peoples kind help. When I found
myself at the top enjoying beautiful scenery, I realized that it was, in fact,
teamwork that got me there. Though it will not be enough to express my
gratitude in words to all those people who help me, I would still like to give my
heartbound thanks to all these people.
First of all, I would like to give my sincere thanks to my guide, Associate
Professor Ms. Savitha K .
Thank you is a small word to my Parents, my fianc SANJAY, and my
sister who not only supported me, but also inspired me, during the course of my
study. It was their blessings that gave me courage to face the challenges and
made my path easier.
Last, but not the at least, I would like to thank Dr. Rajesh Khajuria ,
Director of my institution - C.K.Shah Vijapurwala Institute of Management,
Vadodara where I am student.

I, Rinkal Darji , hereby declare that the report for

comprehensive project entitled Consumer perception of
Banking sector is result my own work and my indebtedness to
other work publications, references, if any, have been duly
acknowledged.

PLACE: VADODARA

Rinkal Darji

The grand project helps me to understand practical aspects of business

management

in a

better way, as part of M.B.A program at

K SHAH

VIJAPURAWALA INSTITUTE OF MANAGEMENT, VADODARA.

Research regarding customers perception on banking services. I have
selected two banks State Bank of India and Bank of Baroda. Research is based on
statistical method. It is the systematic and objective identification, collection, analysis,
dissemination, and use of information for the purpose of customers satisfaction
level with the State Bank of India or Bank of Baroda.
To be a student of MBA is a matter of pride because we are in a field, which
helps us to develop from a normal human being into a disciplined, and dedicated
professional. One has to be a good learner to sharpen knowledge in the particular field
to achieve and attain the desired goals and heights. I conducted this survey to know what
customers expect and perceive with the banking services. To gather this information, I
used questionnaires as the research and data collection tools. The responses were
collected from 60 respondents.
I had learned a lot during my Grand Project on Customers Perception on
Banking Services. and I hope this will be helpful to find out the satisfaction or
dissatisfaction level with the banking services.

The commercial banking sector plays an important role in the mobilization of

deposits and disbursement of credit to various sectors of the economy. Banks
provides various types of services to satisfy the customers to the maximum level. The
modern banking industry has brought in greater business diversification. Banks are now
entering into investments, underwriting of securities, portfolio management & the
Insurances business. Technology and competition are

on the increase in Banking

services, therefore to survive in the market, banks try utmost to ensure their customer
are with them.

Table of content
Ch. No

Descriptions

Pg. No.

Executive Summary

Introduction to the topic

Role of Social Network

General industry overview

Major players of the industry

28

Review of Literature

31

Marketing 3.0(From Products to Customers to the

34

10
12

Human Spirit)

Objectives of Study

48

Research Methodology

50

10

Research Analysis

72

11

Research Finding

78

12

Suggestions & Recommendation

80

13

Conclusion

82

14

Bibliography

84

15

Annexure

85

Introduction and statement of the problem

I have selected the topic Customers Perception on Banking Services.
In this topic I tried to cover the expectations of the customers on banking
services and against it whatever they perceived from the Banks. In the real the
expectations of the customers are very high, but sometimes banks are not able to provide
all the services as per their expectations due to some limitations or reasons.

Scope and Importance of the study

This study

will address the current services provided by the bank, the

gap between the customer expectations, perceptions and the actual state of performance.
The results of the study would be to recognize the problems in the system and thus
provide key areas where improvement is required for better performance and success
ratio.

Research Objectives
(1) To find out the level of expectation of the customers and the level of perception of
the customers from the services offered by the banks.
(2) To investigate whether the banks provides the services as per the expectation of
the customers.
(3) To evaluate the pattern of the banks in providing the services and to examine
its effects on the level of customers expectations and their perceptions.
(4) Finally to suggest measures for improvement based on the findings of the study.

Data Sources
Primary Data:
It is collected through structured questionnaire by conducting survey.
Secondary Data:
Internet, journals, books, magazines

Method of Analysis
The method of analysis followed in the study is descriptive as well as
analytical.

For analyzing the data and to arrive at logical conclusions, mathematical tools
like
Weighted average method has been used.
The different services provide by the banks and customers expectation
and perceived have been find out on the basis of data collected from the customers.

Research Design
My research is Descriptive in nature as the banking industry is
well- developed in India and lot of research has already been done in this area.

Research tool

SERVQUAL Analysis.
SERVQUAL is an instrument for measuring how customers perceive the

quality of a service. In the mid-1980s Berry and his colleagues, Parasuraman and
Zeithaml began to investigate what determines service quality and how it is evaluated
by customers. As a result of their study they developed the SERVQUAL instrument
for measuring service quality, which initially included 10 service quality dimensions,
which were later reduced to the following five: tangibles, reliability, responsiveness,
assurance and empathy.
The instrument is based on the idea of the disconfirmation model, in other
words on the comparison of customers expectations with their experiences from the
service. Usually, the five dimensions of the instrument are described through the use of
20 attributes and respondents are asked to state (on a five point scale from Strongly
disagree to Strongly agree) what they expected from the service and how they
perceived the service.
This instrument has been widely used by researchers, but still, there are some
controversies in its applicability across different service industries. In some studies
the five dimensions of the instrument (determinants) have been found to be unstable
across different types of services. Therefore, the SERVQUAL tool should be applied
very carefully and the set of determinants and attributes used should be adapted to the
specific situation.

Limitations of the Study

Respondents may give biased answers for the required data. Some of
the respondents did not like to respond.
In my study I have included 30 customers of each bank.

HISTORY OF BANKING IN INDIA

There are three different phases in the history of banking in India.

1)

Pre-Nationalization Era.

2)

Nationalization Stage.

3)

Post Liberalization Era.

1) Pre-Nationalization Era:
In India the business of banking and credit was practices even in very early
times. The remittance of money through Hundies, an indigenous credit instrument, was
very popular. The hundies were issued by bankers known as Shroffs, Sahukars, Shahus
or Mahajans in different parts of the country.
The modern type of banking, however, was developed by the Agency Houses of
Calcutta and Bombay after the establishment of Rule by the East India Company in
18th and 19th centuries.
th Century,

During the early part of the 19

at volume of foreign trade was relatively

small. Later on as the trade expanded, the need for banks of the European type was felt
and the government of the East India Company took interest in having its own bank.
The government of Bengal took the initiative and the first presidency bank, the Bank of
Calcutta (Bank of Bengal) was established in 180. In 1840, the Bank of Bombay and
IN
1843, the Bank of Madras was also set up.
These three banks are also known as Presidency Bank. The Presidency Banks
had their branches in important trading centers but mostly lacked in uniformity in
their operational policies. In 1899, the Government proposed to amalgamate these three
banks in to one so that it could also function as a Central Bank, but the Presidency
Banks did not favor the idea. However, the conditions obtaining during world war
period (1914-

1918) emphasized the need for a unified banking institution, as a result of which
the

Imperial Bank was set up in1921. The Imperial Bank of India acted like a Central
bank and as a banker for other banks.
The RBI (Reserve Bank of India) was established in 1935 as the Central Bank of
the Country. In 1949, the Banking Regulation act was passed and the RBI was
nationalized and acquired extensive regulatory powers over the commercial banks.
In 1950, the Indian Banking system comprised of the RBI, the Imperial Bank of
India, Cooperative banks, Exchange banks and Indian Joint Stock banks.

2) Nationalization Stages:
After Independence, in 1951, the All India Rural Credit survey, committee of
Direction with Shri. A. D. Gorwala as Chairman recommended amalgamation of the
Imperial Bank of India and ten others banks into a newly established bank called
the State

Bank

of India

(SBI).

The

Government

of India

accepted

the

recommendations of
the committee and introduced the State Bank of India bill in the Lok Sabha on
16
1955 and it was passed by Parliament and got the presidents assent on
8

th

th

April

May 1955. The

st

Act came into force on 1 July 1955, and the Imperial Bank of India was nationalized in
1955 as the State Bank of India.
The main objective of establishing SBI by nationalizing the Imperial Bank
of India was to extend banking facilities on a large scale more particularly in the rural
and semi-urban areas and to diverse other public purposes.
In 1959, the SBI (Subsidiary Bank) act was proposed and the following
eight state-associated banks were taken over by the SBI as its subsidiaries.

Name of the Bank Subsidiary with effect from

1)
2)
3)
4)
5)
6)
7)
8)

State Bank of Hyderabad 1 October 1959

State Bank of Bikaner 1 January 1960
State Bank of Jaipur 1 January 1960
State Bank of Saurashtra 1 May 1960
State Bank of Patiala 1 April 1960
State Bank of Mysore 1 March 1960
State Bank of Indore 1 January 1968
State Bank of Travancore 1 January 1960
st

st

st

st

st

st

st

st

With effect from 1st January 1963, the State Bank of Bikaner and State Bank
of Jaipur with head office located at Jaipur. Thus, seven subsidiary banks State
Bank of India formed the SBI Group.
The SBI Group under statutory obligations was required to open new offices in rural
and semi-urban areas and modern banking was taken to these unbanked remote areas.
On 19 July 1969, then the Prime Minister, Mrs. Indira Gandhi announced the
th

nationalization of 14 major scheduled Commercial Banks each having deposits worth Rs.
50 crore and above. This was a turning point in the history of commercial banking in
India.
Later the Government Nationalized six more commercial private sector
th

banks with deposit liability of not less than Rs. 200 crores on 15 April 1980, viz.

Andhra Bank
Corporation Bank
New Bank in India
Oriental Commercial Bank
Punjab and Sind Bank
Vijaya Bank

In 1969, the Lead Bank Scheme was introduced to extend banking facilities to
every corner of the country. Later in 1975, Regional Rural Banks were set up to
supplement the activities of the commercial banks and to especially meet the credit
needs of the weaker sections of the rural society.

Nationalization of banks paved way for retail banking and as a result there
has been an alt round growth in the branch network, the deposit mobilization, credit
disposals and of course employment.
The first year after nationalization witnessed the total growth in the
agricultural loans and the loans made to SSI by 87% and 48% respectively. The overall
growth in the deposits and the advances indicates the improvement that has taken place
in the banking habits of the people in the rural and semi-urban areas where the branch
network has spread. Such credit expansion enabled the banks to achieve the goals of
nationalization, it was however, achieved at the coast of profitability of the banks.

3) Post-Liberalization Era---Thrust on Quality and Profitability:

By the beginning of 1990, the social banking goals set for the banking
industry made most of the public sector resulted in the presumption that there was no
need to look at the fundamental financial strength of this bank. Consequently they
remained undercapitalized. Revamping this structure of the banking industry was of
extreme importance, as the health of the financial sector in particular and the
economy was a whole would be reflected by its performance.
The need for restructuring the banking industry was felt greater with the
initiation of the real sector reform process in 1992. The reforms have enhanced the
opportunities and challenges for the real sector making them operate in a borderless
global market place. However, to harness the benefits of globalization, there should be
an efficient financial sector to support the structural reforms taking place in the real
economy. Hence, along with the reforms of the real sector, the banking sector
reformation was also addressed.

Private Sector Banks

Private banking in India was practiced since the beginning of banking system
in India. The first private bank in India to be set up in Private Sector Banks in India
was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India.
IDBI ranks the tenth largest development bank in the world as Private Banks in India
and has promoted a world class institutions in India.
The first Private Bank in India to receive an in principle approval from
the Reserve Bank of India was Housing Development Finance Corporation Limited, to
set up a bank in the private sector banks in India as part of the RBI's liberalization of the
Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited
with registered office in Mumbai and commenced operations as Scheduled Commercial
Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year 1930.
Bangalore has a pride of place for having the first branch inception in the year
1934. With successive years of patronage and constantly setting new standards in
banking, ING Vysya Bank has many credits to its account.

Entry of Private Sector Banks:

There has been a paradigm shift in mindsets both at the Government level in the
banking industry over the years since Nationalization of Banks in 1969, particularly
during

the

last

decade

(1990-2000).

Having

achieved

the

objectives

of

Nationalization, the most important issue before the industry at present is survival and
growth in the environment generated by the economic liberalization greater competition
with a view to achieving higher productivity and efficiency in January 1993 for the
entry of Private Sector banks based on the Nationalization Committee report of 1991,
which envisaged a larger role for Private Sector Banks.

The RBI prescribed a minimum paid up capital of Rs. 100 crores for the new
bank and the shares are to be listed at stock exchange. Also the new bank after being
granted license under the Banking Regulation Act shall be registered as a public limited
company under the companies Act, 1956.
Subsequently 9 new commercial banks have been granted license to start banking
operations.

The

new

private

sector

banks

have

been

very aggressive

in

business expansion and is also reporting higher profile levels taking the advantage of
technology and skilled manpower. In certain areas, these banks have even our
crossed the other group of banks including foreign banks.
Overview of Banking:
Banking Regulation Act of India, 1949 defines Banking as accepting, for the
purpose of lending or of investment of deposits of money from the public, repayable on
demand or otherwise or withdrawable by cheque, draft order or otherwise. The Reserve
Bank of India Act, 1934 and the Banking Regulation Act, 1949, govern the banking
operations in India.
Broad Classification of Banks in India:
1) The RBI:
The RBI is the supreme monetary and banking authority in the country and
has the responsibility to control the banking system in the country. It keeps the reserves
of all scheduled banks and hence is known as the Reserve Bank.
2) Public Sector Banks:
State Bank of India and its Associates (8)
Nationalized Banks (19)
Regional Rural Banks Sponsored by Public Sector Banks (196)
3) Private Sector Banks:
Old Generation Private Banks (22)
Foreign New Generation Private Banks (8)
Banks in India (40)

4) Co-operative Sector Banks:

State Co-operative Banks

Central Co-operative Banks
Primary Agricultural Credit Societies
Land Development Banks
State Land Development Banks

5) Development Banks:
Development Banks mostly provide long term finance for setting up
industries. They also provide short-term finance (for export and import activities)

Industrial Finance Co-operation of India (IFCI)

Industrial Development of India (IDBI)
Industrial Investment Bank of India (IIBI)
Small Industries Development Bank of India (SIDBI)
National Bank for Agriculture and Rural Development (NABARD)
Export-Import Bank of India

Role of Banks:
Banks play a positive role in economic development of a country as
repositories of communitys savings and as purveyors of credit. Indian Banking has
aided the economic development during the last fifty years in an effective way. The
banking sector has shown a remarkable responsiveness to the needs of planned
economy. It has brought about a considerable progress in its efforts at deposit
mobilization and has taken a number of measures in the recent past for accelerating
the rate of growth of deposits. As recourse to this, the commercial banks opened
branches in urban, semi-urban and rural areas and have introduced a number of
attractive schemes to foster economic development.
The activities of commercial banking have growth in multi-directional ways
as well as multi-dimensional manner. Banks have been playing a catalytic role in area
development, backward area development, extended assistance to rural development
all along helping agriculture, industry, international trade in a significant manner. In a
way, commercial banks have emerged as key financial agencies for rapid economic
development.
By pooling the savings together, banks can make available funds to
specialized institutions which finance different sectors of the economy, needing
capital for various purposes, risks and durations. By contributing to government
securities, bonds and debentures of term-lending institutions in the fields of agriculture,
industries and now housing, banks are also providing these institutions with an access to
the common pool of savings mobilized by them, to that extent relieving them of the
responsibility of directly approaching the saver. This intermediation role of banks is
particularly important in the early stages of economic development and financial
specification. A country like India, with different regions at different stages of
development, presents an interesting spectrum of the evolving role of banks, in the
matter of inter-mediation and beyond.

Commercial banks provide short-term and medium-term financial assistance. The

short-term credit facilities are granted for working capital requirements. The mediumterm loans are for the acquisition of land, construction of factory premises and
purchase of machinery and equipment. These loans are generally granted for periods
ranging from five to seven years. They also establish letters of credit on behalf
of their clients favouring suppliers of raw materials/machinery (both Indian and
foreign) which extend the bankers assurance for payment and thus help their delivery.
Certain transaction, particularly

those

in

contracts

of

sale

of

Government

Departments, may require guarantees being issued in lieu of security earnest money
deposits for release of advance money, supply of raw materials for processing, full
payment of bills on the assurance of the performance etc. Commercial banks issue such
guarantees also.

PRODUCTS AND SERVICES OFFERED BY BANKS

Broad Classification of Products in a bank:
Retail Banking
Trade Finance
Treasury Operations
Retail Banking and Trade finance operations are conducted at the branch level
while the wholesale banking operations, which cover treasury operations, are at the
hand office or a designated branch.
Retail Banking:
o Deposits
o Loans, Cash Credit and Overdraft
o Negotiating for Loans and advances
o Remittances
o Book-Keeping (maintaining all accounting records)
o Receiving all kinds of bonds valuable for safe keeping
Trade Finance:
o Issuing and confirming of letter of credit
o Drawing, accepting, discounting, buying, selling, collecting of bills of
exchange, promissory notes, drafts, bill of lading and other securities
Treasury Operations:
o Buying and selling of bullion
o Foreign exchange Acquiring, holding, underwriting and dealing in shares,
debentures, etc.
o Purchasing and selling of bonds and securities on behalf o f constituents.
The banks can also act as an agent of the Government or local authority.
They insure, guarantee, underwrite, participate in managing and carrying out issue of
shares, debentures, etc.
Apart from the above-mentioned functions of the bank, the bank provides a
whole lot of other services like investment counseling for individuals, short-term funds
management and portfolio management for individuals and companies. It undertakes the
inward and outward remittances with reference to foreign exchange and collection of
varied types for the Government.

Common Banking Products Available:

Some of common available banking products are explained below:
1) Credit Card:
Credit Card is post paid or pay later card that draws from a credit
line- money made available by the card issuer (bank) and gives one a grace period
to pay. If the amount is not paid full by the end of the period, one is charged interest.
A credit card is nothing but a very small card containing a means of
identification, such as a signature and a small photo. It authorizes the holder
to change goods or services to his account, on which he is billed. The bank receives
the bills from the merchants and pays on behalf of the card holder.
These bills are assembled in the bank and the amount is paid to the bank
by the card holder totally or by installments. The bank charges the customer a small
amount for these services. The card holder need not have to carry money/cash
with him when he travels or goes for purchasing.
Credit cards have found wide spread acceptance in the metros and big
cities. Credit cards are joining popularity for online payments. The major players in
the Credit Card market are the foreign banks and some big public sector banks like
SBI and Bank of Baroda. India at present has about 3 million credit cards in
circulation.
2) Debit Cards:
Debit Card is a prepaid or pay now card with some stored value.
Debit Cards quickly debit or subtract money from ones savings account, or if
one were taking out cash.
Every time a person uses the card, the merchant who in turn can get the
money transferred to his account from the bank of the buyers, by debiting an
exact amount of purchase from the card. To get a debit card along with a Personal
Identification Number (PIN).

The major limitation of Debit Card is that currently only some 3000-4000
shops country wide accepts it. Also, a person cant operate it in case
the telephonelines are down.

3) Automatic Teller Machine:

The introduction of ATMs has given the customers the facility of round the
clock banking. The ATMs are used by banks for making the customers dealing
easier. ATM card is a device that allows customer who has an ATM card to perform
routine banking transaction at any time without interacting with human teller. It
provides exchange services. This service helps the customer to withdraw money
even when the banks ate closed. This can be done by inserting the card in the ATM
and entering the Personal Identification Number and secret Password.
ATMs are currently becoming popular in India that enables the customer to
withdraw their money 24 hours a day and 365 days. It provides the customers
with the ability to withdraw or deposit funds, check account balances, transfer funds
and check statement information. The advantages of ATMs are many.

To transfer money to and from accounts.

To view account information.
To order cash.
To receive cash.

Advantages of ATMs:

To the Customers

o
o
o
o
o

ATMs provide 24 hrs., 7 days and 365 days a year service

Service is quick and efficient
Privacy in transaction
Wider flexibility in place and time of withdrawals.
The transaction is completely secure you need to key in Personal
Identification Number (Unique number for every customer).

To Banks

o
o
o
o
o

Alternative to extend banking hours.

Crowding at bank counters considerably reduced.
Alternative to new branches and to reduce operating expenses.
Relieves bank employees to focus an more analytical and innovative work.
Increased market penetration.

ATMs can be installed anywhere like Airports, Railway Stations, Petrol Pumps,
Big Business arcades, markets, etc. Hence, it gives easy access to the customers, for
obtaining cash.
The ATM services provided first by the foreign banks like Citibank, Grind
lays bank and now by many private and public sector banks in India like ICICI Bank,
HDFC Bank, SBI, UTI Bank etc.

4) E-Cheques:
The e-cheques consists five primary facts. They are the consumers, the
merchant, consumers bank the merchants bank and the e-mint and the clearing
process. This chequering system uses the network services to issue and process
payment that emulates real world chequeing. The payer issue a digital cheques to the
payee ant the entire transactions are done through internet. Electronic version of
cheques are issued, received and processed. A typical electronic cheque transaction
takes place in the following manner:
The customer accesses the merchant server and the merchant server presents
its goods to the customer.
The consumer selects the goods and purchases them by sending an e-cheque
to the merchant.
The merchant validates the e-cheque with its bank for payment authorization.
The merchant electronically forwards the e-cheque to its bank.
The merchants bank forwards the e-cheque to the clearing house for cashing.
The clearing house jointly works with the consumers bank clears the cheque
and transfers the money to the merchants banks.
The merchants bank updates the merchants account.
The consumers bank updates the consumers account with the withdrawal
information.

The e-chequeing is a great boon to big corporate as well as small retailers. Most
major banks accept e-cheques. Thus this system offers secure means of collecting
payments, transferring value and managing cash flows.

5) Electronic Funds Transfer (EFT):

Many modern banks have computerized their cheque handling process with
computer networks and other electronic equipments. These banks are dispensing
with the use of paper cheques. The system called electronic fund transfer (EFT)
automatically transfers money from one account to another. This system
facilitates speedier transfer of funds electronically from any branch to any other
branch. In this system the sender and the receiver of funds may be located in
different cities and may even bank with different banks. Funds transfer within the
same city is also permitted. The scheme has been in operation since February 7,
1996, in India.
The other important type of facility in the EFT system is automated clearing
houses. These are the computer centers that handle the bills meant for deposits
and the bills meant for payment. In big companies pay is not disbursed by issued
cheques or issuing cash. The payment office directs the computer to credit an
employees account with the persons pay.

6) Tele banking:
Tele banking refers to banking on phone services.. a customer can access
information about his/her account through a telephone call and by giving the coded
Personal Identification Number (PIN) to the bank. Telebanking is extensively
user friendly and effective in nature.
To get a particular work done through the bank, the users may leave his
instructions in the form of message with bank.
Facility to stop payment on request

 One can easily know about the cheque status

Information on the current interest rates

Information with regard to foreign exchange rates
Request for a DD or pay order
D-Mat Account related services
And other similar services

7) Mobile Banking:
A new revolution in the realm of e-banking is the emergence of mobile banking.
On-line banking is now moving to the mobile world, giving everybody with a
mobile phone access to real-time banking services, regardless of their location. But
there is much more to mobile banking from just on-lie banking. It provides a new
way to pick up information and interact with the banks to carry out the relevant
banking business. The potential of mobile banking is limitless and is expected to be
a big success. Booking and paying for travel and even tickets is also expected to be a
growth area.
According to this system, customer can access account details on mobile using
the Short Messaging System (SMS) technology6 where select data is pushed to
the mobile device. The wireless application protocol (WAP) technology, which
will allow user to surf the net on their mobiles to access anything and everything.
This is a very flexible way of transacting banking business.
Already ICICI and HDFC banks have tied up cellular service provides such
as Airtel, Orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking
services to their customers.
8) Internet Banking:
Internet banking involves use of internet for delivery of banking products and
services. With internet banking is now no longer confirmed to the branches where
one has to approach the branch in person, to withdraw cash or deposits a
cheque or request a statement of accounts. In internet banking, any inquiry or
transaction is processed online without any reference to the branch (anywhere
banking) at any time.

The Internet Banking now is more of a normal rather than an exception due
to the fact that it is the cheapest way of providing banking services. As indicated
by McKinsey Quarterly research, presently traditional banking costs the banks,
more than a dollar per person, ATM banking costs 27 cents and internet
banking costs below 4 cents approximately. ICICI bank was the first one to offer
Internet Banking in India.

Benefits of Internet Banking:

Reduce the transaction costs of offering several banking services and
diminishes the need for longer numbers of expensive brick and mortar branches
and staff.
Increase convenience for customers, since they can conduct many banking
transaction 24 hours a day.
Increase customer loyalty.
Improve customer access.
Attract new customers.
Easy online application for all accounts, including personal loans and mortgages
9) Demat:
Demat is short for de-materialisation of shares. In short, Demat is a process
where at the customers request the physical stock is converted into electronic
entries in the depository system.
In January 1998 SEBI (Securities and Exchange Board of India) initiated
DEMAT ACCOUNTANCY System to regulate and to improve stock investing.
As on date, to trade on shares it has become compulsory to have a share demat
account and all trades take place through demat.

BANKING SERVICES
Banking covers so many services that it is difficult to define it. However,
these basic services have always been recognized as the hallmark of the genuine banker
which are as follow

The receipt of the customers deposits

The collection of his cheques drawn on other banks
The payment of the customers cheques drawn on himself

There are other various types of banking services like:

1)
2)
3)
4)
5)
6)
7)
8)

Advances Overdraft, Cash Credit, etc.

Deposits Saving Account, Current Account, etc.
Financial Services Bill discounting etc.
Foreign Services Providing foreign currency, travelers cheques, etc.
Money Transmission Funds transfer etc.
Savings Fixed deposits, etc.
Savings Fixed deposits, etc.
Status Debit Cards, Credit Cards, etc

Customer Services in Commercial Banks:

Customer service is the service provided in support of a banks core products.
Customer service often includes answering questions; handling complaints.
Customer service can occur on site (as when an onstage employee helps a customer
or answers a question) or it can occur over the phone or the Internet. Quality
customer service is essential to building cordial customer relat ionship.
Banking being a service industry, a lot depends on efficient and prompt customer
service. Customer service is the most important duty of the banking operations.
Prompt and efficient service with smile will develop good public relations reduce
complaints and increase business. Why is Customer Service Important?
Changing customer expectations: Today the customer is more demanding
and more sophisticated than he or she was thirty years ago.

The increased importance of customer service: With changing customer

expectations, competitors are seeing customer service as a competitive weapon
with which they differentiate their products and services.
The need for a relationship strategy: To ensure that a customer service
strategy that will create a value preposition for customers should be formulated
implemented and controlled. It is necessary to give it a central role and not one that
is subsumed in the various elements of the marketing mix.
The customer is the kingpin in growth organizations like commercial banks.
Only those institutions which work according to his dictates will flourish. Quality,
Consistency and Durability at low price are the final expectations of a customer.
Quality will have to be unambiguous, of world class quality. Quality cannot be of
minimum acceptable standards. Customer responsiveness must be quick and also
competent. Speed, performance and cost will be the new values mantra for success.
The ten key areas of customers services to be attended timely and regularly are:
i.
Submission of statement of A/Cs to
customers ii.
Updating of savings pass books
iii.
Teller system efficiency
iv.
Cleanliness and Upkeep of premises
v.
Intermediate Credit for institution cheques/land bills
vi.
Advance intimation to customers for rewards of Term Deposits Receipts
on maturity
vii.
Advance for Debit/credit to accounts
viii. Punctuality of staff

PEST ANALYSIS
POLITICAL/ LEGAL ENVIROMENT
Government and RBI policies affect the banking sector. Sometimes looking into
the political advantage of a particular party, the Government declares some measures to
their benefits like waiver of short-term agricultural loans, to attract the farmers votes.
By doing so the profits of the bank get affected. Various banks in the cooperative sector
are open and run by the politicians. They exploit these banks for their benefits.
Sometimes the government appoints various chairmen of the banks. Various policies are
framed by the RBI looking at the present situation of the country for better control over
the banks.
ECONOMICAL ENVIROMENT
Banking is as old as authentic history and the modern commercial banking
are traceable to ancient times. In India, banking has existed in one form or the other
from time to time. The present era in banking may be taken to have commenced with
establishment of bank of Bengal in 1809 under the government charter and with
government participation in share capital. Allahabad bank was started in the year
1865 and Punjab national bank in 1895, and thus, others followed.
Every year RBI declares its 6 monthly policy and accordingly the various
measures and rates are implemented which has an impact on the banking sector. Also the
Union budget affects the banking sector to boost the economy by giving certain
concessions or facilities. If in the Budget savings are encouraged, then more deposits
will be attracted towards the banks and in turn they can lend more money to the
agricultural sector and industrial sector, therefore, booming the economy. If the
FDI limits are relaxed, then more FDI are brought in India through banking channels.

SOCIAL ENVIROMENT
Before nationalization of the banks, their control was in the hands of the private
parties and only big business houses and the effluent sections of the society were
getting benefits of banking in India. In 1969 government nationalized 14 banks. To
adopt the social development in the banking sector it was necessary for speedy
economic progress, consistent with social justice, in democratic political system, which
is free from domination of law, and in which opportunities are open to all.
Accordingly, keeping in mind both the national and social objectives, bankers were
given direction to help economically weaker section of the society and also provide
need-based finance to all the sectors of the economy with flexible and liberal attitude.
Now the banks provide various types of loans to farmers, working women,
professionals, and traders. They also provide education loan to the students and housing
loans, consumer loans, etc.
Banks having big clients or big companies have to provide services like
personalized banking to their clients because these customers do not believe in running
about and waiting in queues for getting their work done. The bankers also have to
provide these customers with special provisions and at times with benefits like food and
parties. But the banks do not mind incurring these costs because of the kind of
business these clients bring for the bank.
TECHNOLOGICAL ENVIROMENT
Technology plays a very important role in banks internal control mechanisms
as well as services offered by them. It has in fact given new dimensions to the banks as
well as services that they cater to and the banks are enthusiastically adopting
new technological innovations for devising new products and service.

The

latest

developments

in

terms

of

technology

in

computer

and

telecommunication have encouraged the bankers to change the concept of branch

banking to anywhere banking. The use of ATM and Internet banking has allowed
anytime, anywhere is banking facilities. Automatic voice recorders now answer
simple queries, currency accounting machines makes the job easier and self-service
counters are now encouraged. Credit card facility has encouraged an era of cashless
society. Today MasterCard and Visa card are the two most popular cards used world
over. The banks have now started issuing smartcards or debit cards to be used for
making
payments. These are also called as electronic purse. Some of the banks have also started
home banking through telecommunication facilities and computer technology by
using terminals installed at customers home and they can make the balance inquiry, get
the statement of accounts, give instructions for fund transfers, etc. Through ECS we can
receive the dividends and interest directly to our account avoiding the delay or chance
of loosing the post.
Today banks are also using SMS and Internet as major tool of promotions
and giving great utility to its customers. For example SMS functions through simple text
messages sent from your mobile. The messages are then recognized by the bank
to provide you with the required information. All these technological changes have
forced the bankers to adopt customer-based approach instead of product-based approach.

Review of
literature
Currently, technological changes are causing banks to rethink their strategies for
services offered to both commercial and individual customers. Moreover, banks
that excel in quality service can have a distinct marketing edge since improved levels of
service quality are related to higher revenues, increased cross-sell ratios and higher
customer retention (Bennett and Higgins, 1993), and expanded market share (Bowen and
Hedges, 1993). Moreover, the banks understand that customers will be loyal if they
can produce greater value than competitors.
It is indeed true that delivery of high-service quality to customers offers firms an
opportunity to differentiate themselves in competitive markets (Karatepe et al., 2005).In
contrast, high quality of service leads to customer satisfaction and loyalty and greater
willingness to suggest and or recommend to someone else, reduction in customer
complaints, and improved customer retention rates to a great extent ( Bitner, 1990;
Headley and Miller, 1993; Zeithaml et al., 1996; Danaher, 1997). In recent years,
The financial sector has developed rapidly interims of size, structure and the variety of
consumer and business-to-business products and services around the world in general
and gulf region, in particular. In addition, many retail banks face huge challenges such
as technological advancement, competitive products, and services and thus, in order to
survive and compete effectively, banks must recognize the customer perceptions of
the service quality, academicians and practitioners have given more attention to this
area as it assumed that service quality is a critical measure of firm performance
(Lasser et al.,
2000; Yavas and Yasin, 2001; Bick et al., 2004; And Reassen and Olsen, 2008 and Liang
et al., 2009). However, service quality is abstract and elusive and lacks objective
measures(Karatepe et al., 2005). Therefore, in order to identify the firms strengths
and/or weaknesses, customer perceptions of service quality as a basic instrument.
Therefore, the objective of the paper is to test a service quality instrument by using
retail banking services in emerging countries.

Indeed,( Reassen and Olsen, 2008 and Liang et al., 2009) researchers argue
that high levels of customer satisfaction lead to customer retention, especially in
markets that are highly competitive and saturated, such as financial services. Moreover
in the present competitive banking environment, most of the banks offer the same or
similar products around the world and service quality is a vital means to differentiate
them selves in the market place. ,The curare search contribute toward understanding the
relationship among customer services, customer satisfaction, and customer perception
argue that high levels of customer satisfaction lead to customer retention, especially in
markets that are highly competitive and saturated, such as financial services Moreover,
in the present competitive banking environment, most of the banks offer the same or
similar products around the world and service quality is a vital means to differentiate
themselves in the market place.

STATE BANK OF
INDIA

History of State Bank of India

The evolution of State Bank of India can be traced back to the first decade of the
19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on
2
June 1806. The bank was redesigned as the Bank of Bengal, three years later, on
2
January 1809. It was the first ever joint-stock bank of the British India, established
under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay
(established on 15 April 1840) and the Bank of Madras (established on 1 July 1843)
followed the Bank of Bengal. These three banks dominated the modern banking
scenario in India, until when they were amalgamated to form the Imperial Bank of
India, on 27
January 1921.
An important turning point in the history of State Bank of India is the launch of
the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the
Indian economy in general and the rural sector of the country, in particular. Until the

Plan, the commercial banks of the country, including the Imperial Bank of India,
confined their services to the urban sector.

Moreover, they were not equipped to respond to the growing needs of the
economic revival taking shape in the rural areas of the country. Therefore, in order
to serve the economy as a whole and rural sector in particular, the All India Rural
Credit Survey Committee recommended the formation of a state partnered & state
sponsored bank.
The State Bank of India emerged as a pacesetter, with its operations carried out
by the 480 offices comprising branches, sub offices and three Local Head Offices,
inherited from the Imperial Bank. Instead of serving as mere repositories of the
community's savings and lending to creditworthy parties, the State Bank of India
catered to the needs of the customers, by banking purposefully. The bank served the
heterogeneous financial needs of the planned economic development.

Branches
The corporate center of SBI is located in Mumbai. In order to cater to
different functions, there are several other establishments in and outside Mumbai, apart
from the corporate center. The bank boasts of having as many as 14 local head
offices and 57
Zonal Offices, located at major cities throughout India. It is recorded that SBI has
about
10000 branches, well networked to cater to its customers throughout
India.

ATM Services
SBI provides easy access to money to its customers through more than 8500
ATMs in India. The Bank also facilitates the free transaction of money at the ATMs
of State Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries
and several non-banking subsidiaries. Through the establishments, it offers various
services including merchant banking services, fund management, factoring services,
primary dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)
State Bank of India (SBI)
State Bank of Indore (SBIR)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)

Products and Services

State Bank of India offers a wide range of services in the Personal Banking
Segment which are indexed here
eZ-trade@sbi
SBI VISHWA YATRA FOREIGN TRAVEL CARD
PAY ROLL CARDS
ATM SERVICES
GIFT CARDS
GIFT CHEQUES
INTERNET BANKING
FOREIGN INWARD REMITTANCE
LOCKER

Online Trading
SBIs value proposition is based on Unmatched Expertise,

State-Of-

Art Technology And Operational Ease that will redefine the way India trades. State
Bank of India in alliance with SBI Cap Securities Limited and Motilal Oswal
Securities Limited offers an online trading account which will let you trade from the
comfort of your home or office either through the internet. This service provides you
with a 3-in1 account which is an integrated platform of savings bank a/c, demat a/c
and an online trading a/c to give you a convenient and paper free trading experience
under one roof.

eZ -Pay Card
Payment of salaries to employees who will be required to work at different
locations is generally a difficult proposition for Employers as a single Banking
arrangement can not be made for all employees. The SBI eZ-Pay card , a prepaid
plastic card issued in Indian Rupees in association with VISA international, is the right
solution in such cases. Periodical payments like salary, payment of TA/ Medical/
incentives etc. can be loaded on to the card from a single point and the funds are
available to the employees immediately.
The SBI eZ-Pay card is a Pre-paid ATM-cum-Debit card usable at all VISA-enabled
ATMs through PIN and at Merchant establishments/ Point of Sale through
PIN/ Signature, in India, Nepal & Bhutan. The cardholder need not visit any
Branch to withdraw his money. Balance enquiry can be made either through ATM or
through Internet free of charge.

Mobile banking services

Away from home, bills can be paid or money sent to the loved ones or balance
enquiries done anytime 24x7!!! That is what SBI Freedom offers -convenience,
simple, secure, anytime and anywhere banking.

The service is presently available on java enabled mobile phones over SMS/ GPRS/
WAP as also non java phones with GPRS connection. The service can be availed over
the free GPRS facilities offered by various mobile service providers.

ATM Services
State Bank offers convenience of over 8000 ATMs in India, the largest network
in the country and continuing to expand fast! This means that you can transact free of
cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India
as well as the Associate Banks namely, State Bank of Bikaner & Jaipur, State Bank of
Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala,
State Bank of Saurashtra, and State Bank of Travancore) and wholly owned subsidiary
viz. SBI Commercial and International Bank Ltd., using the State Bank ATM-cumDebit (Cash Plus) card.

Gift Cards
Presenting Gifts to Employees is an integral and unique culture in India.
Traditionally, gifts have been given to employees in the form of cash or kind. With the
advancement of Banking, Gift Cheque were introduced, allowing the employees to
use the money according to their wishes. These cheques, however, are accepted at the
issuing bank branches only. The SBI Gift Card, issued in association with VISA
International, is one such product which gives the comfort of convenience and wide
acceptability.
Gift Card is a Pre-paid Plastic Card supported by Magnetic-strip based technology. It
is usable at all VISA enabled Merchant Establishments and POS by signature/ PIN. It is
a perfect substitute for Gift Vouchers sold by many retail houses as its use is not
restricted to any particular Merchant Establishment/ Point of Sale.

Sbi Yuva Card

SBI Yuva Card is an International Debit Card on VISA platform, exclusively

designed for vibrant youth of India between 18-30 years of Age. The card can be used
at

ATMs for cash withdrawal at all ATMs under bilateral arrangement. It can be used for
dining, shopping and traveling at POS/MEs. This Card is available in all our
branches free of cost. You can not only draw cash at ATM but also swipe it for. This
card is PIN based on ATM and signature based at POS/MEs. This card can be used for
e-commerce i.e. for shopping through internet by using VbV (Verified by VISA)
certified internet websites.

Internet banking
Simple, fast and convenient - anytime -anywhere - always open. You can now check
your account balances, view your account, request for cheque book, drafts, Bankers
cheques, stop cheque payment and issue standing instructions. You can also
transfer funds to your other accounts at the Branch, request for third party transfers,
invest and renew Term Deposits.

RBIEFT
Inter-bank Electronic Funds Transfer facility of the Reserve Bank of India (RBI
- EFT) is available with our branches in the clearing zone of Service Branches at
Kolkata, Mumbai ,New Delhi and Chennai.

What's New?

E-Payment of Motor Vehicle Taxes & Fees of West Bengal Govt .

SBI Fx Trade: Currency Future Trading
Viewing of Tax Credit Statement (Form 26AS).
Payment of 'Nat ional Permit ' fee
Request for a Gift Card online.
Open Term deposit accounts online and get e-TDR/e-STDR receipt s instant ly.
Access your pensio n slip through enquiry menu.
Enquire about tax deducted on the interest earned by your deposits.
Online NRI e-Z trade 3 in 1 account introduced.
Transfer funds to any Bank fro m your SBI Account using RTGS/NEFT Facilit y.

Value Added Services

Online fee collect ion facilit y for Staff Select ion Commission (SSC) and Unio n
Public Service Co mmission (UPSC).
Discover a Simple, Secure and Convenient way to pay all your Utilit y Bills at
Online SBI.
e-Rail reservat ion service using SBI accounts.
Mutual Funds invest ments handled wit h SBI accounts.
SBI e-Tax: Online payment facilit y for retail users and corporate.
VISA Money Transfer.

Personal Banking

Account Statement
Funds Transfer
Demat Account Statement
Bill Payment
Cheque Book Request
TDS Enquiry

BANK OF BARODA

History of Bank of Baroda

Prior to independence from the British Rule, the ancient India was ruled by
princely states, scattered over the width and breadth of the large Indian nation. The
Maharajas of the inner States of colonial India contributed to the welfare of their
respective regions as well as the Indian nation as a whole. Their vision and foresight in
founding various financial, charitable, social and philanthropic organizations during
their time is still cherished by any one going into the history of modern India and its
achievements in every walk of life.
The Maharaja of Baroda, a princely state of British India, by name Sir
Sayyajirao Gaekwad III, had the same vision in establishing a bank for servicing the
public at large and the citizens of Baroda State, a Guajarati population in particular. On
20th July 1908, Bank of Baroda was established under the rules of Companies Act 1897,
in a small building at Baroda, by the Maharaja with a paid up capital of Rs.10 lakhs. The
guidelines set by the Maharaja for the bank was to serve the people of the State of
Baroda as well as the neighboring regions with money lending, saving, transmission
and encouraging the development of arts, science, commerce and trade for the people.

The success story of the Bank of Baroda is studded with many a leaps and
strides it made in the International presence, apart from establishing branches all over
the Indian nation, by acquisition of already popular banking entities, as also
commencing new commercial banking establishments, in the unique Guajarati style.
During the years of
1908 to 2007 (and the century year being round the corner) Bank of Barodas
growth owes to the excellence in rendering financial products and services to the
national and international

population.

Countries

beginning

from

America

to

Zambia, in the alphabetical order have been enjoying the services of Bank of Baroda
as of today.
A brief statistics will reveal the magnitude of growth Bank of India has achieved
today :

fifth largest bank in India; total assets over 1,78,000 crores; number of

offices and branches 2800; more than 1000 ATMs, notwithstanding affiliates,
subsidiaries and delivery channels all over the world.

Mission
statement
To be a top ranking National Bank of International Standards committed to
augmenting stake holders' value through concern, care and competence.
Bank of Baroda believes in the strength and integrity of relationships built with
its customers like you. With over 102 years of experience in the banking industry and a
wide network of over 3365 branches all over the country, we have always been
active in extending financial support and adapting to your changing needs.
BOBs Deposit Products, Retail Loans, Credit Cards and Debit Cards help
customers with growing financial needs. With facilities like Lockers it ensures that
customers valuables are safe with BOB.
BOBs countrywide branches offer convenience and ease in operating account
wherever the customer is. Its 24-hour ATMs enable customer to withdraw cash, check
account balance and request for a new cheque book even after banking hours.

Services of BOB
Business Banking Services

Customized services for unique requirements

The small and medium business enterprise is one of the fastest growing sectors
in the country. Bank of Baroda offers various products and services that meet the
specific requirements of such enterprises and help them grow.
In addition to tailor-made products, you can depend on the strength of our
nation- wide network and facilities that will enable you to conduct your business
smoothly, without geographical constraints.
Be it Deposits, Loans & Advances, Collect ion Services, Working Capital
Finance, Term Finance, Non-Fund based Facilities, Trade Finance, Merchant
Banking or other such aspects of banking, we have a solution to help customers
business run smoothly and efficiently.

Corporate Banking Services

Supporting corporate growth

With services ranging from Working Capital Finance, Short Term Corporate
Loans, Project Finance to Cash Management and Merchant Banking, Bank of Baroda
Corporate Banking offers various options that help fund and enable corporations in
investment and expansion plans. These products also offer merchant banking and
cash management solutions.

BOBs global presence, large-scale operability, highly networked systems

and local market penetration allow customers to reap financial benefits to the maximum.

Treasury Operations

In the changing economic environment of the country in particular and the

globe in general, Bank of Baroda was the premier public sector bank in India to set up a
Specialized Integrated Treasury Branch (SITB) in Mumbai and the integrated
approach initiated by the Bank in its treasury operations is now being emulated by
other peer banks.
Bank of Baroda has consciously adopted a focused approach towards improving
efficiency

and

profitability

by

successfully

integrating

the

operations

of

different financial markets, viz. Domestic Money, Investments, Foreign Exchange and
Derivatives and has made its mark as an important player in the market-place.
The SITB at Mumbai, equipped with the State-of-the-art technology, with
modern communication facilities, handles all types of financial transactions, both for
managing its resources and deployments and effective compliance of regulatory
requirements.

Rural Banking Services

Strengthening the rural economy

Rural India contributes a major chunk to the economy every year. To give this
sector a stronghold on finance and to enable economic independence, Bank of Baroda
has special offerings that extend credit facilities to small and marginal farmers,
agricultural labourers and cottage industry entrepreneurs.
With the objective of developing rural economy through promotion of
agriculture, trade, commerce, industry and extending credit facilities particularly
to small and marginal farmers, agricultural labourers and small entrepreneurs, Bank
of Baroda, over the years, has reached out to larger part of rural India. BOB extend
loans for agricultural activities and a host of services for farmers well tuned to the
rural market, and aim to make a Self Reliant Rural India.

NRI Services

BOB offer a red carpet welcome to all NRI's to bank with them. As a
premier nationalised bank in India, with comprehensive banking experience worldwide, and by virtue of our consistent track record of profit making since 1908,we are
confident of meeting all customers banking requirements.
BOBs wide network of foreign branches, offices and Correspondent Relations at
convenient business locations all round the world, which is the largest among any bank
in India, will ensure a smooth and safe banking experience.
BOB continue to cherish its rich ethnic traditional values and culture, during
its personal interface. Yet BOB speedily repositioning ourselves in the e-millennium era
of banking in India, to take care of your changing needs and expectations. Its
information technology strategies are directed towards enabling employees to provide
customers with a state of the art customer convenience, thereby facilitating a global
banking experience.
Eligibility - FOR NON-RESIDENT INDIANS ONLY

Different meaning under different statutes

FERA, 1973 and I.T. Act 1961 had different definitions
Includes NRI and other non-resident foreign nationals
NRI includes non-resident Indian nationals and also non-resident Persons of
Indian origin
Under FERA, emphasis in determining residential status was based on purpose
of stay outside India and not on duration of stay outside India.

Products of BOB
Deposit products

Account Opening Form (Individuals)

Baroda Advantage Savings Bank Account
Baroda Super Savings Bank Account
Baroda Subh Savings Account
Baroda Centenary Savings Bank Account
Baroda Bachat Mitra
Account Opening Form (Non-Individuals)
Savings Account
Current Account
Fixed Deposit
Baroda Tax Saving term deposit
Fast Access
Recurring Deposits
Yatha Shakt i Jama Yojana
NRI Fixed Deposit Account
NRE Savings Bank Account
Resident Foreign Currency (RFC) Account

Retail Loans

Home Loan
Home Loan (NRIs/PIOs)
Home Improvement Loan
Baroda Addit ional Assured Advance to Residents/NRIs/PIOs
Education Loan
Baroda Career Development
Baroda Loan for training , skill up gradat ion of construction workers
Car Loan
Baroda Car loan to HNIs/Corporates
Baroda Loan to Defense Pensio ners
Loan to Pensio ners
Baroda Loan for Earnest Money Deposit
Baroda Personal Loan
Baroda Consumer Durables
Baroda Loan for two wheelers
Baroda Loan for laptop and personal co mputer
Traders Loan
Baroda Ashray Loan
Salary Advantage Savings Account

Rural & Agri Banking

Baroda Kisan Credit Card

SME Products

SME Loan

Services

Net Banking - Corporate

Net Banking - Personal
Debit cum ATM Card
Demat - Individuals/NRI/Foreign Nat ionals
Demat- Corporates

Cash Management Services

Applicat ion Form for Baroda Cash Manage ment Services

Applicat ion Form for availing Co llect ion/Payment
Applicat ion Form for Internal Fund Transfer
Applicat ion Form for Internet Facilit y
Applicat ion Form for Liquidit y Management
Applicat ion Form for availing Lock-Box (Invo ice) Management
Applicat ion Form for availing PDC Management
Applicat ion Form for Resett ing Password
Paying-in-Slip

Business Tie-ups

India First Life Insurance Co. Ltd

Baroda Pioneer Asset Management Co.
Kotak Mahindra Mutual Fund
IDFC Mutual Fund
UTI Mutual Fund
Birla Sun life Mutual Fund
Reliance Mutual Fund
Sundaram BNP Paribas AMC Ltd.
Franklin Templeton Investments
Western Union Money Transfer
Baroda RemitXpress
National Insurance Company Limited
HDFC Standard Life Insurance

Subsidiar
ies

Domest
ic
BOBCARDS Ltd.

NATIONAL Bank Ltd

BOB Capital Markets Ltd.

Overse
as
Bank of Baroda (Botswana)
Ltd.

Bank of Baroda (Kenya) Ltd.

Bank of Baroda (Uganda) Ltd.
Bank of Baroda (Guyana) Ltd.
Bank of Baroda (UK) Ltd.
Bank of Baroda (Tanzania) Ltd
Bank of Baroda (Trinidad &
Tobago) Ltd.

Bank of Baroda (Ghana) Ltd.

Data classification & Interpretation of BOB:-

Calculation of Servqual Scores of Customer perceptions towards Technological development of

BOB.
Dimensions
Statement
Expectation
Perception
GAP Score Average for
Score
Score
Dimensions
Reliability
1
4.57
3.77
0.20
2
4.17
3.63
0.54
0.67
3
4.43
3.17
1.26
Tangibility
4
4.43
3.77
0.66
5
3.73
3.17
0.56
6
4.23
3.97
0.26
0.63
7
4.10
3.27
0.83
8
3.93
3.47
0.46
9
4.20
3.20
1.00
Responsiveness
10
4.37
3.27
1.10
11
4.00
3.07
0.93
0.99
12
3.90
2.97
0.93
Assurance
13
4.27
2.97
1.30
14
4.10
3.27
0.83
0.98
15
4.00
3.20
0.80
Empathy
16
4.20
3.17
1.03
17
4.07
3.63
0.44
18
3.70
2.83
0.87
0.64
19
3.83
3.19
0.64
20
4.23
3.99
0.24
Un weighted Average SERVQUAL score
0.782

Bank of Baroda

SERVQUAL
Dimension

Weighted
Score

Reliability

0.67

Tangibility

0.63

Responsiveness

0.99

Assurance
Empathy

0.98
0.64
Points

Weight age given by respondents of BOB to different dimension

1. The appearance of the banks physical facilities, equipment,
technological support, personnel and communication materials.

20

2. The knowledge and politeness of the bank's employees and their

ability to convey trust and confidence

16

3. The banks readiness to help customers and provide prompt

service.

22

4. The bank's ability to perform the promised service consistently

and accurately

17

5. The caring individual attention the bank provides its customers.

25

Total:

100

Weightage Score of Customer

Perception of
BO
B
0.99
1
0.8
0.6

0.67

0.64

0.98

0.63

0.4
0.2
0

Gap score
Minimum
Maximum

Dimension
Responsiveness
Tangibility

Bank of Baroda

SERVQUAL
Dimension

Score
from
Table 1

5- Score
from
table 1

Weighting Weighted
Score
from
Table 2

Reliability

0.67

2.00

20

0.40

Tangibility

0.63

3.77

16

0.60

Responsiveness

0.99

2.96

22

0.65

Assurance

0.98

2.93

17

0.50

Empathy

0.64

3.22

25

0.81

Average weighted score

0.592

SERVQUAL
Dimension

Weighted
Score
0.40
0.60
0.65
0.50
0.81

Reliability
Tangibility
Responsiveness
Assurance
Empathy

BO
B
0.9

0.81

0.8
0.
6

0.7
0.6
0.5
0.4

0.
4

0.6
5
0.
5

0.3
0.2
0.1
0

Gap score
Minimum
Maximum

Dimension
Reliability
Empathy

Data classification & Interpretation of SBI: Calculation of Servqual Scores of Customer perceptions towards Technological
development of SBI.
Dimensions
Statement
Expectation Perception
GAP
Average for
Score
Score
Score
Dimensions
Reliability
1
4.20
3.93
0.27
2
4.27
3.94
0.33
0.44
3
3.83
3.10
0.73
Tangibility
4
4.23
4.03
0.20
5
4.00
3.07
0.93
6
4.20
3.67
0.53
0.47
7
4.30
4.20
0.10
8
3.80
3.13
0.67
9
3.83
3.47
0.36
Responsiveness 10
3.83
3.00
0.83
11
4.00
2.97
1.03
0.93
12
3.53
2.60
0.93
Assurance
13
4.17
4.00
0.17
14
4.30
3.20
1.10
0.63
15
4.33
3.70
0.63
Empathy
16
4.13
3.20
0.93
17
4.33
3.37
0.96
18
4.22
3.17
1.05
0.82
19
3.97
3.53
0.44
20
4.53
3.80
0.73
Un weighted Average SERVQUAL score
0.658

State Bank of India

SERVQUAL
Dimension

Weighted
Score

Reliability
Tangibility

0.44
0.47

Responsiveness
Assurance

0.93
0.63

Empathy

0.82

Weightage Score of Customer Perception of SBI

1

0.9
3

0.9

0.82

0.8
0.7

0.63

0.6
0.5

0.44

0.47

0.4
0.3
0.2
0.1
0
Reliability

Tangibility Responsiveness
Empathy

Gap score
Minimum
Maximum

Dimension
Reliability
Responsiveness

Assurance

Weight age given by respondents of SBI to different dimension

Points

1. The appearance of the banks physical facilities, equipment,

technological support, personnel and communication materials.

23

2. The knowledge and politeness of the bank's employees and their

ability to convey trust and confidence

26

3. The banks readiness to help customers and provide prompt

service.

13

4. The bank's ability to perform the promised service consistently

and accurately

18

5. The caring individual attention the bank provides its customers.

20
100

Total:

SERVQUAL
Dimension

SBI

Score
from
Table 1

5- Score
from
table 1

Weighting Weighted
from
Score
Table 2

Reliability

0.44

1.33

23

0.31

Tangibility

0.47

2.79

26

0.73

Responsiveness

0.93

2.79

13

0.36

Assurance

0.63

1.90

18

0.34

Empathy

0.82

4.11

20

0.82

Average weighted score

0.512

Weighted
Score

SERVQUAL
Dimension

0.31
0.73
0.36
0.34
0.82

Reliability
Tangibility
Responsiveness
Assurance
Empathy

SB
I
0.9

0.82

0.7
3

0.8
0.7
0.6
0.5
0.4
0.3

0.36

0.3
1

0.34

0.2
0.1
0
Reliability

Tangibility Responiveness
Empathy

Gap score
Minimum
Maximum

Dimension
Reliability
Emapathy

Assurance

Reliability
BANK

GAP SCORE

SBI

0.44

BOB

0.67

0.7
0.6
0.5
0.4

Reliability

0.3
0.2
0.1
0
SBI

BOB

Reliability

Gap score

Bank

Minimum
Maximum

SBI
BOB

Tangibility
BANK

0.7
0.6

GAP SCORE

SBI

0.47

BOB

0.63

0.63
0.47

0.5
0.4
0.3
0.2
0.1
0
SBI

BOB

Tangibility
Gap score
Minimum
Maximum

Bank
SBI
BOB

Responsiveness
BANK

GAP SCORE

SBI

0.93

BOB

0.99

Responsive
ness

0.99
0.98
0.97
0.96
0.95
0.94
0.93
0.92
0.91
0.9

SBI

BOB

Responsiveness
Gap score
Bank
Minimum
Maximum

SBI
BOB

Assurance
BANK

GAP SCORE

SBI

0.63

BOB

0.98

Assuran
ce

1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
SBI

BOB

Assurance
Gap score
Minimum
Maximum

Bank
SBI
BOB

Empathy
BANK

GAP SCORE

SBI

0.82

BOB

0.64

Empat
hy

0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

SBI

BOB

Empathy
Gap score
Minimum
Maximum

Bank
BOB
SBI

Comparison of gap score

Dimension

Banks
BOB

SBI

Reliability

0.67

0.44

Tangibility

0.63

0.47

Responsiveness

0.99

0.93

Assurance

0.98

0.63

Empathy

0.64

0.82

1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

SBI
BO
B

Bank

Unweighted average Gap

score

SBI

0.658

BOB

0.782

Unweighted gap score

0.782
0.8
0.78
0.76
0.74
0.72
0.7
0.68
0.66
0.64
0.62
0.6
0.58

0.65
8

SBI

BOB

SBI is having minimum un weighted average servqual score and BOB is

having maximum un weighted average score.

Reliability
Bank

weighted score

SBI

0.31

BOB

0.40

0.4
0.4
0.35

0.31

0.3
0.25
0.2
0.15
0.1
0.05
0
SBI

BOB

Reliability
Weighted score
Maximum
Minimum

Bank
BOB
SBI

Tangibility
Bank
SBI
BOB

0.8
0.7

0.7
3

weighted score
0.73
0.60

0.6

0.6
0.5
0.4
0.3
0.2
0.1
0
SBI

BOB

Tangibility
Weighted score
Maximum
Minimum

Bank
SBI
BOB

Responsiveness

0.7

Bank

weighted score

SBI

0.36

BOB

0.65

0.65

0.6
0.5

0.36

0.4
0.3
0.2
0.1
0
SBI

BOB

Responsiveness
Weighted score
Maximum
Minimum

Bank
BOB
SBI

Assurance
Bank

weighted score

SBI

0.39

BOB

0.50

Assuran
ce
0.
5
0.5
0.45
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0

0.39

SBI

BOB

Assurance
Weighted score
Maximum
Minimum

Bank
BOB
SBI

Empathy
Bank

weighted score

SBI

0.82

BOB

0.81

Empat
hy
0.82
0.822
0.82
0.818
0.816
0.814
0.812
0.81
0.808
0.806
0.804

0.81

SBI

BOB

Empathy
Weighted score
Maximum
Minimum

Bank
SBI
BOB

Comparison of Weighted score

Dimension

Banks
BOB

SBI

Reliability

0.40

0.31

Tangibility

0.60

0.73

Responsiveness

0.65

0.36

Assurance

0.50

0.34

Empathy

0.81

0.82

0.9
0.8
0.7

0.6

0.6
0.5
0.4
0.3
0.2
0.1
0

0.820.

0.7
3

0.3
1

0.
4

81

0.6
5
0.
5
0.36
0.34

SBI
BO
B

Bank
SBI
BOB

Avg weighted score

0.512
0.592

Comparision of Ave.weighted
score
0.6
0.58
0.56
0.54
0.52
0.5
0.48
0.46

SBI

BOB

BOB is having highest average weighted score between two banks.

General
Questions
1) In which Bank do you have the Bank Account?

Account Holders

100
%

100%

2)

SBI
BOB

What is the purpose behind opening the account?

37%

Saving
63
%

Security

3)

Are you aware about the following facilities providing by banks?

ATMs
RTGS, ECS, OLTAS, OTHERS

50%

ATM
RTGS,ECS,OTH
100
%

4)

ERS

Among these facilities, which facilities are you using?

4% 1%
10%

ATM
RTGS
ECS
OLTA
95
%

5) Do you think that banks provide all the types of facilities as per your
needs?

33%

YE
S
67
%

NO

6) Do you think that banks are responsible to enhance your standard of

living?

9
%
YE

22%

S
69
%

NO
CAN'T SAY

7)

What is the effect of banking facilities on your life?

EFFECT
Saving of time
Saving of money
Withdrawal of
money as per
requirement
Smooth
transaction

YES

NO

SOMETIMES

Time Saving
72
%

98
%

87%

100%

Money Saving

Withdrawal
of money
as per
requiremen
t
Smooth Transaction

8)

Are you satisfied with all banking facilities?

9
%

5
%

YE
S
NO
TO SOME EXTENT
86
%

9)

Which type of service do you prefer the most from the banks?
ATM services
Internet
banking
Mobile
banking
Retail
banking
3
%
9%

ATMs

6%

Mobile
Banking
Internet
82%

Banking
Retail
Banking

10) Your Account Decisions are influenced by:

Oneself
Market research
Friends/relatives

4%

22%

One self
Friend/Relati
74
%

ves Market
Reserch

11) Which factors do you consider before opening account or in

purchasing new plan in a particular bank?
Finance position
Goodwill
Current Market
Position Future
prospects Services
provided
Financial Position
23%

35%

14
%

10
%

Current Market
Position
Goodwill
Service Provided

18
%

Future Prospects

12) Which bank is more secure according to you?

SBI

BOB

32%

SBI
BO
68
%

Key Findings for general questions

According to respondents the most preferred banking service is ATM and
other services like mobile banking, internet banking and Retail banking are less
preferable.
Most of the respondents account decisions are influenced by themselves.
Most important factor which respondent consider before opening an account
is Service provides by the banks followed by Future prospects, goodwill, financial
position and current market position.
According to respondents most secure bank is SBI than BOB.

Key Findings for Servqual questions

Gap Score
For SBI bank, the gap score for Reliability is minimum followed by
Tangibility, Assurance, Empathy and Responsiveness.
For BOB bank, the gap score for Tangibility is minimum followed by
Empathy, Reliability, Assurance, and Responsiveness.

Weight for five dimensions

For SBI bank, the highest weight is given to Tangibility followed by
Reliability, Empathy, Assurance and Responsiveness.
For BOB bank, the highest weight is given to Empathy followed by
Responsiveness, Reliability, Assurance and Tangibility.

Weighted score
For SBI bank, the highest weighted score is of dimension Empathy followed by
Tangibility, Responsiveness, Assurance and Reliability.
For BOB bank, the highest weighted score is of dimension Empathy followed by
Responsiveness, Tangibility, Assurance and Reliability.

Comparison amongst banks on different dimensions

Comparison of gap score
Dimension

Banks
BOB

SBI

Reliability

0.67

0.44

Tangibility

0.63

0.47

Responsiveness

0.99

0.93

Assurance

0.98

0.63

Empathy

0.64

0.82

For Reliability, the minimum gap score is for SBI than BOB.
For Tangibility, the minimum gap score is for SBI than BOB.
For Responsiveness, the minimum gap score is for SBI than BOB.
For Assurance, the minimum gap score is for SBI than BOB.
For Empathy, the minimum gap score is for BOB than SBI.

Bank

Unweighted average Gap

score

SBI

0.658

BOB

0.782

SBI is having minimum unweighted average Gap score than BOB.

Comparison of Weighted score

Dimension

Banks
BOB

SBI

Reliability

0.40

0.31

Tangibility

0.60

0.73

Responsiveness

0.65

0.36

Assurance

0.50

0.34

Empathy

0.81

0.82

For Reliability, the highest weighted score is of BOB than SBI.

For Tangibility, the highest weighted score is of SBI than BOB.
For Responsiveness, the highest weighted score is of BOB than SBI.
For Assurance, the highest weighted score is of BOB than SBI.
For Empathy, the highest weighted score is of SBI than BOB.

Bank
SBI
BOB

Avg. weighted score

0.512
0.592

BOB is having highest average weighted score than SBI

CONCLUSION
ATM is the most preferred service than other services.
The most common purpose behind opening a bank account is saving of money.
All the sample size customers aware about ATMs. And only few customers are
aware about other facilities like RTGS, ECS, OLTAS and others.
All most sample size customers are using ATMs and other facilities which
are mentions above are rarely used by them.
Mostly all customers believe that bank provides all the services as per their needs.
Out of 60 sample size customers, 69% customers think that banks are responsible
for enhancing their standard of living.
Effect of banking facilities on your life (out of 60 sample size)

100% believes that banks are best for money saving.

All most (98%) believes that banking facilities are helpful in saving time
of money transaction.
87% believes that they can withdraw the money as per their requirement.
72% believes that Banks are helpful in smooth money transactions.

Most the people are satisfied with all the banking facilities.
Account opening decisions are mostly influenced by own self.
The service provide by the bank is the major factor for customers before opening
account. And the other factors like future prospective, goodwill, market situation
are less preferable by the customers.
SBI is the more secure Bank than BOB.

RECOMMENDATIONS
For SBI
SBI should shows sincere interest in solving a customers problem pertaining to any
delay in transaction or mistakes done by users.
SBI should emphasize on improving their services on Responsiveness and Assurance.
In villages, the SBI employees are not properly trained and able to guide about
the use of technology.
The SBI should maintain sufficient and easy to use online banking facilities.
The employees must shows willingness to help the customers.
The employees must be good in explaining the various technological products

and services which the bank provides.

The employees should never too busy to respond to customers request.
The ATM facility of SBI is good as compared to BOB but it must have to maintain it.
The SBI should improve in responsiveness as well as assurance towards
the customers.
For BOB
BOB should improve its ATM facilities compared to SBI.
BOB should emphasize on improving their services on Tangibility and Assurance.
The BOB should improve in its home delivery services.
SBI and BOB should improve their services on empathy dimension.
The bank must show sincere interest while the customer has the problem.
Specially in Mehasana district the employees are not well trained and not able
to properly guide the customers.

 The bank should increase the number of ATMs in Mehasana district.

The bank should develop the time saving technology facility like Phone banking and
Mobile banking.

Some customers believe that the bank is not showing so much interest to
maintain long term customer relationship so the bank must be maintain a good
relationship with the customers.

The bank should has different properly identified counters.

BIBLIOGRAPHY

List of web-sites.
1. www.statebankofindia.co m
2. www.onlinesbi.co m
3. www.banko fbaroda.com
4. www.bobibanking.com
5. www.rbi.org.in
6. www.banknet india.co m

List of books
1. Introduction to Banking by Vijayaragavan Iyengar
nd
2. Banking and Insurance by O.P.Agarawal 2 revised edition
3. Role of Banks in the development of rural area by C.Krishnan

Annexure (Questionnaire)
Questionnaire
Dear Madam / Sir
I am a student of

C K SHAH VIJAPURAWALA INSTITUTE OF

MANAGEMENT,VADODARA, presently working on the Comprehensive Project

which is the part of our syllabus of 4

th

sem. MBA and I have selected the topic

Customers Perception on Banking Services. And for that I have selected SERVQUAL
Analysis of Banking services and comparative analysis of customer satisfaction of
various banks.

Our Questionnaire format is as below

Questionn
aire
CUSTOMERS PERCEPTION ON BANKING
SERVICES
Prepared By (MBA SEM.4):
RINKAL.P. Darji

NAME

Guide:
Asso. Prof. Savitha K

OCCUPATION

ADDRESS

AGE

SERVQUAL QUESTIONS

The following questionnaire relate to your feelings about the services

provided by SBI OR BOB. Please show the extent to which you believe
this bank has the feature described in the statement. Here, we are
interested in a number from 1 to 5 that shows your Expectations and
Perceptions about the bank.

You should rank each statement as follows:

Strongly Disagree
1

N
2

Strongly Agree
4

Particulars

E-Score

Reliability
1. The Bank provides timely service in relation to ATM,
RTGS, NEFT, ECS etc
2. The Bank provides required and accurate information
when needed about the usage and operation of various
banking technology
3. The Bank shows sincere interest in solving a customers
problem pertaining to any delay in transaction or mistake
by user
Tangibility
4. The Bank has accessible materials like forms, broachers,
stationary associated with system services.
5. The employees are properly trained and able to guide
about the use of technology
6. The Bank has different properly identified counters.
7. The Bank has good ATMs services
8. The Bank maintains sufficient and easy to use Online
Banking facility
9. The Bank
technology
banking.

is well equipped with the time saving

facility like phone banking and mobile

Responsiveness

P-score

10.Employees are good in explaining the various

technological products and services the Bank provides.
11.Employees in the bank are always willing to help you.
12.Employees in the bank are never too busy to respond to
your request.
Assurance
13.Customers feel safe about their transactions done by
Internet banking, RTGS, NEFT, Mobile Banking etc
14.Employees are competent and knowledgeable.
15.The Bank maintains good systems for its efficient
functioning
Empathy
16.The Customers get individual attention
17.The bank has operating hours convenient to all its
customers.
18.The Bank has reliable Home delivery services.
19.The bank has your best interests at in providing quick and
effective banking services
20.The Bank maintains long term customer relationships.

Weight age given by respondents to different dimension

Points

1. The appearance of the banks physical facilities,

equipment, technological support, personnel and
communication materials.
2. The knowledge and politeness of the bank's employees
and their ability to convey trust and confidence
3. The banks readiness to help customers and provide
prompt service.
4. The bank's ability to perform the promised service
consistently and accurately
5. The caring individual attention the bank provides its
customers.
Total:

100

Other General Questions are as below:

In which Bank do you have the Bank Account?
What is the purpose behind opening the account?
Are you aware about the following facilities providing by banks?
ATMs
RTGS, ECS, OLTAS,

OTHERS
Among these facilities, which facilities are you using?
Do you think that banks provide all the types of facilities as per your
needs?
Do you think that banks are responsible to enhance your standard of
living?
What is the effect of banking facilities on your life?
EFFECT
Saving of time
Saving of money
Withdrawal of money
as per requirement
Smooth transaction

YES

NO

SOMETIMES

 Are you satisfied with all banking facilities?

Which type of service do you prefer the most from the banks?
ATM services
Internet
banking
Mobile
banking
Retail
banking
Your Account Decisions are

influenced by: Oneself

Market research
Friends/relatives
Which factors do you consider before opening account or in

purchasing new plan in a particular bank

Finance position
Goodwill
Current Market
Position Future
prospects Services
provided
Which bank is more secure according to you?

SBI

BOB