Customers Satisfaction In National Is Ed Banks

CUSTOMERS SATISFACTION IN NATIONALISED BANKS Dr.S.Ramesh Kumar, Reader and Head, Dept. of Commerce, V.O.C.College TUTICORIN

Introduction: Banking sector is one of the instruments for the development in all the activities of the country. Now various banks are offering variety of services to the customers. After the Nationalization, the banks in both public and private sectors have vastly expanded their networks and branches were opened in rural areas. At the time of Nationalization the primary importance was given to “More Banking”. Now the thrust is to be upon “Better Banking”,improved customer service has assumed paramount importance with the entry of foreign banks and emergence of private banks. The prompt and efficient service is essential not only to attract new customers, but also to retain the existing ones. The recent trends show that most banks are shifting from a “Product - centric Model” to a “Customer - centric Model” as customer satisfaction has become one of the major determinants of business growth. In this context, prioritization of preferences and close monitoring of customer satisfaction have become essential for banks.

Statement of the Problem: Banking industry being a service oriented industry, quality of its service leave much to the desired. Customer service is the most important factor of the banking operations. Prompt and efficient services with a smile will develop good public relations, reduce complaints and improve the business.

Now - a - days, there is a severe competition

among the banks to increase their profits. Therefore, development without services is impossible. Services are the life blood of banking industry.

Keeping these in mind, an

attempt has been made in this study to analyze the factors that are essential in influencing the actual customer services of the Nationalized Banks and how far the customer have been satisfied in getting services in the banking. This study seeks to provide a detailed 1

coverage of the imperatives of customer service as well as the various tools and approaches to customer service.

Objectives: The following are the main objectives of this study: 1. To analyze the various services rendered by the Nationalized Bank. 2. To ascertain the extent and variation in the level of customer satisfaction 3. To know the attitude of customers for preferring nationalized banks. Customer Services In recent years lots of improvements and innovations in banking sector that are in fact a main hub to strengthen the banking sector. The real experiences of customers with banks in receiving various services vary greatly, because of the widening gap between what is supposed to be and what actually is. A customer mostly expects ability to provide what was promised dependably and accurately. The dominant question bothering the bank managements today is how to improve customer service and gain competitive advantage Table 1. Customer services availed in the banks – Age wise Below 30

Age / Service of the Bank

31 – 40

41 – 50

Above 50

Total

Res

%

Res

%

Res

%

Res

%

Res

%

Cash withdraw / deposit

8

8.16

9

9.18

5

5.10

14

14.29

36

36.73

Overdraft

1

1.02

-

-

3

3.06

-

-

4

4.08

Tele banking

3

3.06

1

1.02

-

-

1

1.02

5

5.10

ATM

10

10.20

12

12.24

6

6.12

4

4.08

32

32.65

Getting Demand draft

2

2.04

1

1.02

1

1.02

1

1.02

5

5.10

Credit card

-

-

10

10.20

4

4.08

2

2.04

16

16.34

24

24.48

33

33.66

19

19.38

22

22.48

98

100

Total

Source: Primary Data Table 1 shows, 36.73% of the customers are using the banks to withdrawing and depositing money Tele banking services are mainly used by those who are in the age 2

group of below 30 years. 32.65% of the customers are using ATM services. It shows that 4.08% of the overall customers are utilizing overdraft facilities.

Table 2 . Core Banking Services

No. of respondent Respondent %

Response Quick Service Delay in Services

Total

72 26

73.47 26.53

98

100

Source : Primary Data Table 2 points out that 73.47% of the customers feel that the Banks render quick services after Core Banking,

26.53% feel the services are delayed after

computerisation. The overall customers are satisfied with the Quick services.

Employees Behaviour with Customers A customer wants to be assured of the knowledge and courtesy of employees and their ability to convey confidence. A customer also expects caring and individual concern. A competitive environment and a deregulated market have made it imperative for banks to harness the best customer oriented practices and perceptions and to internalize them for providing added value to the customers through the employees. Table 3. Staff Behavior No. of respondent Respondent % 40 40.82

Opinion Polite 3

Impersonal but helpful Impersonal & not helpful Rude Total

51 4 3 98

52.04 4.08 3.06 100

Source: Primary Data Table 3 shows that out of 98 customers, 52.04% of the customers say that the behavior of bank staffs towards customers is impersonal but helpful, 40.82% feel the bank staffs are polite in nature; they work in good faith and without any prejudice to the interest of the customers and 4.08% of the customers say that the bank staffs are impersonal and not helpful. The remaining 3.06% of the customers point out that the bank staffs are rude, when talking with customers. Loan services Banks are a type of financial intermediary whose principal service among many others is to provide loans to its customers.

In sanctioning the loans different banks follow

different procedures and methods as per the needs and requirements of the banks and customers. Sanctioning of Loans to Customers - Occupation wise Basis of sanction loan / occupation

Repaying

Security

Salary

Profit in Business

Total

Res

%

Res

%

Res

%

Res

%

Res

%

Govt. Employee

2

2.04

10

10.20

8

8.16

-

-

20

20.40

Private Employee

6

6.12

14

14.28

9

9.18

-

-

29

29.59

Business

2

2.04

3

3.06

4

4.08

12

12.24

21

21.42

4

Profession

-

-

3

3.06

1

1.02

2

2.04

6

6.12

Pensioners

2

2.04

2

2.04

7

7.14

1

1.02

12

12.24

Others

2

2.04

4

4.08

1

1.02

3

3.06

10

10.20

Total

14

14.28

36

36.73

30

30.63

18

18.36

98

100

Source: Primary Data Table 4 shows out of 98 customers 29.59% of them are employees of private sector, among them, 14.28% are getting loan on the basis of security and 6.12% are getting loan on the basis of repaying capacity. It also denotes that among 21.42% customers, who are business men, 12.24% customers are getting loan on the basis of profit in business and 3.06% customers are getting loan on the basis of security.

Table 5. Procedure for sanctioning loan – Income wise Below 5000 Res % Easy Procedure 11 11.22 Cumbersome 6 6.12 Total 17 17.35 Option

5001-10000 Res % 31 31.63 11 11.22 42 42.85

10001- 25000 Res % 17 17.35 5 5.10 22 22.45

Above 25000 Res % 15 15.31 2 2.04 17 17.35

Total Res 74 24 98

% 75.51 24.49 100

Source: Primary Data Table 5depicts that 75.51% of the customers in the overall income group are satisfied with the loan procedure followed Banks. Then 24.49% of the customers in the overall income group are not satisfied with the loan procedure. 2.04% of customers in the income group of above Rs.25, 000 are not satisfied with the banking loan procedures.

Table 6 Handling of Customer Complaints 5

No. of respondent Respondent %

Complaint Position Importance is given Importance is not given Total

76 22 98

77.55 22.45 100

Source: Primary Data Table 6 reveals that 77.55% of the customers feel the Banks give importance to the complaints. However, 22.45% of the customers say that banks do not give importance to the complaints lodged by the customers. Satisfaction level of Banking Services The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The customer satisfaction mainly depends upon the quality services rendered by the banks.

Table 7. Satisfaction level of Banking Services - Casual customers

No. of respondent Respondent % 37 37.76

Opinion Highly satisfied 6

Satisfied No opinion Dissatisfied Highly dissatisfied Total

47 8 5 1 98

47.96 8.16 5.10 1.02 100

Source: Primary Data Table 7 denotes that 37.76% casual customers are highly satisfied , 47.96% casual customers are satisfied with the banking service and 5.10% casual customers are dissatisfied with the banking services. The remaining 1.02% casual customers are highly dissatisfied with the customer services. Table 8 Satisfaction level of Banking Services - Casual customers

No. of respondent Respondent %

Opinion Highly satisfied Satisfied No opinion Dissatisfied Highly dissatisfied

37 47 8 5 1

37.76 47.96 8.16 5.10 1.02

Total

98

100

7

Source :Primary Data Table 8 denotes 37.76% casual customers are highly satisfied, 47.96% casual customers are satisfied with the banking service and 5.10% casual customers are dissatisfied with the banking services. The remaining 1.02% casual customers are highly dissatisfied the customer Banking services. FINDINGS AND SUGGESTIONS The findings of the study clearly indicate that the existing customer service in the Nationalized Banks need an overhaul. Refinement in customer service is highly required. Change will have to be made keeping the difference in the requirements among the customers. •

56.12% of the customers support the feature ‘satisfactory customer service. 3.06% of customers are not satisfied with customer service. Hence, the steps to be taken for converting the irregular customers into the regular customers of the banks

•

It is found from field work that, 52.04% of the customers getting the services of banks, bank staff are impersonal but helpful. Personal relations of the bank employees with customers will improve customer satisfaction. The bank employees may be trained to provide courteous service to the customers. Service with a smile should be the motto of every bank employee.

• It is observed from the survey that, influencing factors like Age, gender, Occupation, Education, Income, of the customers do not influence the attitude of customers towards the banking services. • Managers should become more aware of their role and provide the staff with adequate training in order to offer a consistently high standard of customer service. •

It is observed that majority of the staff behavior is impersonal but helpful towards the customers.

•

It is inferred from the analysis that, Nationalized Banks have already launched an ambitious program for computerization. It ensures effective monitoring and control of operations in banks and improves the customer service. Majority of the 8

customers feel that quick services are offered in the banks because of computerization.

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and AW ASS (2003) “The impact of Relational plan on

Adoption of electronic Banking” Journal of service marketing, Vol.17 No.1, PP-53.

2. Levesque, and MC Dougall (1996) “Determinants of customer Satisfaction in Banking” International Journal of Bank Marketing, 14(7), PP 12-20. 3. Taylor and Baker (1994) “An Assessment of the relationship between service quality and customer satisfaction in the formation of consumer Purchase intentions. Journal of Retailing 70(2) PP. 163-178. 4. Bitner, M.J. and A.R. Hubbert 1994 “Encounter satisfaction versus overall satisfaction versus quality”. In R.T. Rust and R.L Oilver(eds) “Service quality”: New Directions in Theory and practice London: sage publication. 5. Cronin, J.Joseph, Jr., and S.A. Taylor. 1992 Measuring Service quality; a re-examination and extension. Journal of Marketing 56pp 55-68. 6. MC Dougall, Levesque (1994) “A revised review of service quality dimensions: A empirical investigation” Journal of professional services marketing 11(1). PP (189-210) 7. Singh S (2004) “A Apprasial of Customer service of Public Sector Banks,” IBA Bulleitn, Vol. XXVI, No:8 (August), PP 30-37. 8. Uppal R.K (2006), Indian Banking Information Technology, New Century Publications, New Delhi. 9. Singh and Malhotra (1993), “Customer Satisfaction in Banking services; A study of Amristar”, ed., Radha Publication, New Delhi.

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