OF CONTENTS

CHAPTER

CONTENT Title page Certificate Declaration Acknowledgment Abstract Table of contents List of figures List of tables INTRODUCTION Introduction Title of Study Objectives of Study Research Design Scope of Study Limitation LITERATURE REVIEW Concept Service Quality Customers Expectation Expected Service Zone of Tolerence Customer Perception Customer Satisfaction Vs Service Quality Customer Satisfaction Determinants of Customer Satisfaction Outcome of Customer Satisfaction
Service Quality Service Quality Dimensions Gap Model Closing Customer Gap Methods of Measuring Service Quality Brand Loyality

PAGE NO I II III IV V VI VII X

I
1.1 1.2 1.3 1.4 1.5 1.6 II 2.1 2.2 2.2.1 2.3 2.4 2.5 2.6 2.7 2.8
2.9 2.10 2.11 2.11.1 2.12 2.13

2 2 3 3 5 5

7 8 9 10 12 13 14 14 15
17 18 20 21 21 22

III 3.1 3.2 3.3 3.4

INDUSTRY PROFILE Invention of Banking Evolution of Banking Industry Post Independence Scenario Indian Banking
1

25 25 26 27

3.5 3.6 IV 4.1 4.2 4.3 4.4 4.5 4.6 4.7 V 5.1 VI 6.1 6.2 VII 7.1

Banks in Economy Other Highlights COMPANY PROFILE SBT History Memorable Milestone SBTMI Products & Services Other Products & Services SBT Services SBT Launches Life Insurance DATA ANALYSIS & INTERPRETATION Statistical Analysis FINDINGS & SUGGESTIONS Findings Suggestions CONCLUSION Conclusion ABBREVIATIONS BIBLIOGRAPHY APPENDIX

27 28 30 31 32 34 49 51 52 55 86 92 94 96 98 99 100

LIST OF FIGURES
Figure no 2.1 2.2 2.3 CONTENT Level of Service Quality Expectation Zone of Tolerance for a Customer Different Zone of Tolerance for Different Service Dimensions 2.4 Customer Perception of Quality & Customer Satisfaction 2.5 2.6 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 Relation between Customer Satisfaction & Loyality Gap Model of Service Quality Chart Showing Accounts Maintenance Chart Showing Awareness About Services Chart Showing Sex wise Classification Occupation wise Classification Income wise Classification Education wise Classification Response of Staff for Loans Perfection of ATM Awareness Through Forms & Brochures Account Opening Time Mobile Banking Facility Knowledge of Staff Banking Time General Behavior of Staff Account with Other Banks Response of Staff Towards Customers Enquiry Improving Quality of Service Deposit & Advance Schemes Mistakes Made By Staff of SBT 16 21 55 56 58 59 60 62 63 65 66 68 69 71 73 74 75 78 80 82 83 14 Page No 10 11 12

5.20

Opinion About Website

85

LIST OF TABLES
Table no 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15
5.16 5.17 5.18 5.19 5.20

CONTENT Accounts Maintained Awareness About Service Sex wise Classification Occupation wise Classification Income wise Classification Education wise Classification Response of Staff for Loans Perfection of ATM Awareness Through Forms & Brochures Account Opening Time Mobile Banking Facility Knowledge of SBT Staff Satisfaction Towards Banking Time General Behavior of Staff Account with other Bank
Customers Enquiry Improving Quality of Service Deposits & Advances Schemes Mistakes Made By SBT Staff Opinion About Website Testing of Hypothesis 1 Testing of Hypothesis 2 Rank Correlation

Page no 54 56 58 59 60 61 63 64 66 67 69 71 72 74 75
78 80 81 83 84 87 88 89

CHAPTER I

INTRODUCTION

1.1 INTRODUCTION
This research is an empirical assessment of service quality in State Bank of Travancore. Service Quality is the degree of excellence in the service performance. It is the degree and direction of discrepancy of service quality. The difference between the service expectations and service perceptions of customers is what is termed as service quality gap. The study has been aimed at diagnosing the quality of service rendered by identifying the service quality gap in the regional branch of State Bank of Travancore in Thiruvananthapuram district and making necessary suggestions. The data for the study has been collected on the basis of simple random sampling method through a questionnaire prepared for the purpose of being filled in at interviews with customers. The data collected has been classified on the basis of age, gender, occupation, annual income and educational background for the purpose of analysis. The data collected was tabulated with care and thereafter analyzed suitably. The analysis has been done on the basis of STATISTICAL & RANK CORRELATION instrument. The basic assumption of it is that the customers evaluate a firms service quality by comparing their five perceptions and expectations. The scaling in SERVICE QUALITY is based on the five dimensions of service quality namely tangibility, reliability, responsiveness, assurance and empathy. The results of this study also offer support for the intuitive notion that improving service quality can increase the competitiveness of the organization. The report has been presented on the basis of the analysis made and suitable suggestion have been recommended.

1.2 TITLE OF THE STUDY

Assessment of Service Quality in State Bank of Travancore

OBJECTIVES OF THE STUDY

The study has been aimed at attaining the following objectives;

To understand the existing Service Quality system in SBT. To investigate whether the Service Quality of SBT is Capable of addressing all demands

made by customer.

To identify the difference between Expectation & Perception of customers in

Service Quality offered by SBT.

6

1.4 RESEARCH DESIGN

Once the problem has been carefully defined, the researcher needs to establish the plan that will outline the investigation to be carried out. The research design indicates the steps that have been taken and in what sequence they occurred. a) SOURCES OF DATA Primary data and secondary data were collected for the purpose of the study. Primary sources Primary sources of data were collected through questionnaire prepared for the purpose filled in at interviews with customers. Secondary sources Secondary sources of data for the study were collected from official website of the organization and from books and other published sources.

b) SAMPLING DESIGN Universe of the study

The study has been conducted at the Main Branch of State Bank of Travancore in Thiruvananthapuram. Sample Frame

Sample frame or source list is the frame from which the sample is drawn for the study. It represents the whole population. Here the sample includes the customers of the bank. Sample Size The Sample Size collected for the study is 10 .

Sampling Technique The simple random sampling method was used for the primary data collection. Simple random sampling is the basic sampling technique where we select a group of subjects (a sample) for study from a larger group (a population). Each individual is chosen entirely by chance and each member of the population has an equal chance of being included in the sample. Every possible sample of a given size has the same chance of selection; i.e. each member of the population is equally to be chosen stage in the sampling process.

c) DATA ANALYSIS TECHNIQUE The data collected was tabulated with care and there after analyzed suitably. The analysis was done on the basis of the Statistical analysis, Rank analysis. These survey instrument is used for measuring customer satisfaction with respect to different aspects of service quality.

1.5 SCOPE OF THE STUDY

The banking industry is in the current scenario is booming and undergoing a rapid growth. The emergence of new generation private and foreign banks in the Indian banking sector has raised the competitiveness in the industry. The study aims at identifying the extend to which the service quality in a bank affects its competitiveness. The outcome of the study reveals the current perception about the bank rooted in the minds of the customers which could be useful in formulating the strategies in future operations of the organization, for the attainment of its goals in this competitive scenario.

1.6 LIMITATIONS OF THE STUDY

of Travancore Chances of biased responses from the customers The study has been conducted in only Thiruvananthapuram branch of State Bank

CHAPTER II

LITERATURE REVIEW

2.1 SERVICE QUALITY: IMPORTANCE IN THE PAST TWO DECADES

The service sector is expanding at an increasing rate and is becoming intensely competitive (Chen, Gupta and Rom, 1994; Johnson, Dotson and Dunlap, 1988). As such, service quality has become a very important issue in marketing and has received much attention since the deregulation, and thus increased competition, of many service industries (e.g.: banking and telecommunications in the 1980s and utilities in the 1990s). Service quality has become so important that some businesses, not only need high levels of service quality for success, but in some cases, need it for survival (Buzzel and Gayle, 1987; Chen, Gupta and Rom, 1994; Ford Motor Company, 1990; Germano, 1992; Hauser and Clausing, 1988; Howcroft, 1993; Kearns and Nadler, 1992; Kettinger and Lee, 1995; Koska, 1990; Lovelock, 1983; Phillips, Chang and Buzzel, 1983; Rudie and Wansley, 1985; Rust, Zahorik and Keiningham, 1995; Schmenner, 1986; Thompson, Service quality is so important that companies have gone to great efforts to evaluate and keep records of service quality levels (Hauser and Clausing, 1988; Phillips, Chang and Buzzell, 1983; Zeithaml, Parasuraman and Berry, 1990). It is essential to determine how to achieve high service quality and how to communicate the benefits of service quality (Howcraft, 1993). Companies such as Federal Express and Xerox are well aware of the importance and have received rewards for their hard work in providing quality services (Germano, 1992; Kearns and Nadler, 1992). By offering high levels of service quality, the Hospital Corporation of America and Ford Motor Company are another two well know companies that have benefited in terms of higher returns on investment and higher profits (Ford Motor Company, 1990; Koska, 1990). Service quality is also important to businesses from a referral and repeat customers perspective. If service providers do not perform up to the expected level of the customer, it negatively affects service quality ratings (Brown and Swartz, 1989). This can cause negative word-of-mouth communications to run rampant. Conversely, if service providers perform at or above the customers expectation, positive word-of-mouth is spread. That in turn, leads to repeat customers and referrals. Service quality survey instruments identify the level of services provided by a company, so that improvements can be made according to the identified results. Thus, the better companies understand how their customers evaluate their services.

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Upper management certainly recognizes the importance of service quality. Chen, Gupta and Rom (1994) found that executives believe that improving the levels of product and service quality was the most crucial challenge faced by the firms, and they act accordingly. Many companies felt the need to see the quantifiable financial benefits of service quality over other company investments. Rust, Zahorik and Keiningham (1995) provided this justification by creating a method to quantify service quality. The authors were able to suggest where additional investments should be made so that it would be deemed worthwhile and, at the same time, determine the optimal expenditure level. Researchers have varying suggestions for uses of service quality measurement instruments. Some researchers recommend using service quality instruments in order to spot problems, determine how to correct the problems and to evaluate the improvements (Kettinger and Lee, 1995). Others believe that companies should use service quality surveys to be warned of possible problems that could lead to departing customers (Zeithaml, Berry and Parasuraman, 1996). Additionally, these same researchers suggest using the survey to modify service offerings to be consistent with what the customer wants. Given the importance of service quality to the business sector, Taylor As competition intensifies, many businesses continue to seek profitable ways in which they differentiate themselves from competitors. One way to ensure a firm's success, or even just survival, is to differentiate from the competition by delivering a high degree of service quality (Rudie and Wansley, 1985; Thompson, DeSouza and Gale, 1985). Lovelock (1983) believes that in order to become effective managers in the service area, they must improve marketing and development skills. Schmenner (1986) warned that service businesses should not consider themselves to be drastically different and remain cut off from each other, because this could increase their fatality rate. As an alternative, businesses in the service area should consider themselves to be similar, instead of exclusive businesses on their own (Schmenner, 1986).

2.2 CUSTOMERS EXPECTATIONS

Customers expectations are beliefs about service delivery that function as standards or reference points against which performance is judged. Because customers compare their

perceptions of performance with these reference points when evaluating service, quality, thorough knowledge about customer expectations is critical to service providers. Knowing what

11

the customer expects To say that expectations are reference points against which service delivery is compared is only a beginning. The level of expectation can vary widely depending on the Although everyone has an intuitive sense of what

reference point the customer holds.

expectations are, service providers need a far more thorough and clear definition of expectations in order to comprehend, measure, and manage them.

2.2.1 EXPECTED SERVICE: LEVELS OF EXPECTATIONS

Consumers hold different types of expectations about service. The highest can be termed desired service: It is the level of service the customer hopes to receive the wished for level of performance from any service provider. Desired service is a blend of what the customer believes can be & should be. The expectations reflect the hopes and wishes of these consumers: without these hopes and wishes and the beliefs that they may be fulfilled, they would probably not have purchased the desired service or product. Customers hope to achieve their service desires but recognize that this is not always possible. We called the threshold level of acceptable service adequate service the level of service the customer will accept. Adequate service represent the minimum tolerable expectation the bottom level of performance acceptable to customers. Desired service expectations seem to be the same for the service providers within industry categories or subcategories that are viewed as similar by customers. The adequate service expectation level, on the other hand, may vary

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Ideal expectations or desires

HIGH

Everyone says this restaurant is as good as one in France and I want to go somewhere very special for my anniversary as expensive as this restaurant is, it ought to have excellent food and service most times this restaurant is very good, but when it gets buzy the service is slow. I expect this restaurant to serve me in an adequate manner I expect terrible service from this restaurant but come because the price is low.

Normative should expectations

Experience based norms

Acceptable expectations

Minimum tolerable expectations

LOW

Fig 2.1 Levels of service quality expectations

2.3 THE ZONE OF TOLERANCE

Services are heterogeneous in that performance may vary across providers, across employees from the same provider, and even with the same service employee. The extent to which customers recognize and are willing to accept the service with variation is called the zone of tolerance and shown in figure 2.2. If service drops below adequate service the minimum level considered acceptable customers will be frustrated and their satisfaction with the company will be undermined. If service performance is higher than these zone of tolerance at the top end where performance exceeds desired service customers will be very delighted and
LOW 13

probably be quite surprised as well. One might consider the zone of tolerance as the range of window in which customers do not particularly notice the service performance. When it falls outside the range, the service gets the customers attention in either positive or negative way

Desired Service

Zone of Tolerance

Adequate Service
Fig 2.2 Zone of tolerance for a customer

Customers service expectations are characterized by a range of level, bounded by desired and adequate service, rather than a single level. This tolerance zone, representing the difference between desired service and the level of service considered adequate, can expand and contract within a customer. Marketer must try to understand not just the size and boundary levels for the zone of tolerance but also when and how the tolerance level fluctuates with a given customers. Another aspect of variability in the range of reasonable service is that different customers possess different tolerance zones. Some customers have narrow zones of tolerance, requiring a tighter range of service from providers, where as other customers allow a greater range of service. An individual customers zone of tolerance increases or decreases depending on a number of factors, including company controlled factors such as price. When prices increase, customers tend to be less tolerant of poor service and vice versa.

2.3.1 ZONES OF TOLERANCE VARY FOR SERVICE DIMENSIONS

Customers tolerance zones also vary for different service attributes or dimensions. The more important the factor, the narrower the zone of tolerance is likely to be. In general,

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customers are likely to be less tolerant about un-reliable service than other service deficiencies, which means that they have higher expectations for this factor. In addition to higher expectations for the most important service dimensions and attributes, customers are likely to be less willing to relax these expectations than those for less important factors, making the zone of tolerance for the most important service dimensions smaller and the desired and adequate service levels higher.

Desired Service

Levels of Expectation

Zone of Tolerance Adequate Service

Desired Service

Zone of Tolerance Adequate Service

Most important factors

Least important factors

Fig.2.3 Different zones of tolerance for different service dimensions

The fluctuations in the individuals customers zone of tolerance is more a function of changes in the adequate service level, which moves readily up and down due to situational circumstances, than in the desired service level, which tends to move upward incrementally due to accumulated experiences. Desired service is relatively idiosyncratic and stable compared with adequate service, which moves up and down in response to competition and other factors.

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2.4 CUSTOMER PERCEPTION

Perceptions are always considered relative expectations. Because expectations are dynamic, evaluation may also shift over the time from person to person from culture to cultures. Customers perceive the services in terms of the quality of the service and how satisfied they are allover with their experiences. These customers oriented terms quality and satisfaction have been the focus of attention for executives and researchers alike over the last decade or more. Companies today organize so that they can compete more effectively by distinguishing themselves with respect to service quality and improved customer satisfaction .2.5 CUSTOMER SATISFACTION VS SERVICE QUALITY
Reliability Responsiveness Assurance Empathy Tangibles

Interaction quality

Reliability Responsiveness Assurance Empathy Tangibles

Service quality Physical environment quality

Situational factors

Customer satisfaction
Reliability Responsiveness Assurance Empathy Tangibles

Product quality Outcome quality

Price

Personal factors

Fig. 2.4 Customer perception of Quality and Customer Satisfaction

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Although they have certain things in common, satisfaction is generally viewed as a broader concept, whereas service quality assessment focuses specially on dimensions of service. Based on this view perceived service quality is a component of customer satisfaction.Service quality is a focused evaluation that reflects the customers perceptions of elements of service such as interaction quality, physical environment quality, and outcome quality. These elements are in turn evaluated based on specific service quality dimensions: Reliability, assurance, responsiveness, empathy and tangibles. Satisfaction, on the other hand, is more inclusive: it is influenced by perception of service quality, product quality and price as well as situational factors and personal factors.

2.6 CUSTOMER SATISFACTION

Satisfaction is the customers fulfillment response. It is a judgment that a product or a service feature, or the product or service itself, provides a pleasurable level of consumption related, fulfillment. In minimal technical terms, this definition can be translated to mean that satisfaction is the customers evaluation of a product or service in It is also important to recognize that, to measure the customer satisfaction at a particular point of time as if it were static, satisfaction is a dynamic, moving target that may evolve over the time, influenced by a variety of factors. Particularly when product usage or the service experience takes place over the time, satisfaction may be highly variable depending on which point the usage or experience cycle is focused on.

2.7 DETERMINANTS OF CUSTOMER SATISFACTION

Customer satisfaction is influenced by specific product or service features and by perception of quality as suggested in Fig 2.6. Satisfaction is also influenced by customers Product and service features: Customer satisfaction with a product or service is influenced significantly by the customers evaluation of product or service features. Customers of services will make trade offs among different service features depending on the type of service being evaluated and the criticality of the service. Customer emotions: Customers emotions can also affect their perceptions of satisfaction with products and services. These emotions can be stable, pre-existing emotions. Attributions for service success or failure: Attributions the perceived causes of events influence perceptions of satisfaction as well. When they have been surprised by an
17

outcome (the service is either much better or much worse than expected) consumers tend to look for the reasons, and their assessments of the reasons can influence their satisfaction. Perceptions of equity or fairness: Customer satisfaction is also influenced by perceptions of equity and fairness. Customers ask themselves: have I been treated fairly

compared with other customers? Did other customers get better treatment, better prices, or better quality service? Did I pay a fair price for the service? Was I treated well in exchange for what I paid and the effort I expended? Other customers, family members and coworkers: In addition to product and service features and ones own individual feelings and beliefs, consumer satisfaction is often influenced by other people like other customers, family members and co-workers.

2.8 OUTCOMES OF CUSTOMER SATISFACTION

Individual firms have discovered that increasing the levels of customer satisfaction can be linked to customer loyalty and profits. There is an important relationship between customer satisfaction and customer loyalty. This relationship is particularly strong when customers are very satisfied. Thus firms that simply aim to satisfy customers may not be doing enough to endanger loyalty they must instead aim to more than satisfy or even to delight their customers. At the opposite end of the satisfaction spectrum, researchers have also found that there is a strong link between dissatisfaction and disloyalty or defection. Loyalty can fall off

precipitously when customers reach a particular level of dissatisfaction or when they are dissatisfied with service.

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100

80

60

40

20

0 Very dissatisfied

1 Dis-satisfied

2 Neither satisfied nor dissatisfied

3 Satisfied

4 Very satisfied

5 Most satisfied

Fig 2.5 Relationship between customer satisfaction and loyalty in competitive industry

2.9 SERVICE QUALITY

Service quality is a critical element of customer perception. In the case of pure services, service quality will be the dominant element in customers evaluations. In cases where customer service or services are offered in combination with a physical product, service quality also determine customers satisfaction.Customers judge the quality of services based on their perceptions of the technical outcome provided, the process by which that outcome was delivered, and the quality of the physical surroundings where the service is delivered. Similarly, a

restaurant customer will judge the service on her perceptions of the meal (technical outcome quality) and on how the meal was served and how the employees interacted with here (interaction qualify) the dcor and surroundings (physical environmental quality) of the restaurant will also impact on customer service quality. Service quality is defined as how well the service meets or exceeds the customers expectations on a consistent basis (Crosby, 1979; Parasuraman, Zeithaml and Berry, 1985). The difficulty, however, is that service quality, unlike product quality, is more abstract and elusive,
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because of features unique to services: intangibility, inseparability, heterogeneity (Parasuraman, Zeithaml and Berry, 1985) and perishability (Kasper and Lemmink, 1989) and is therefore difficult to measure. To remedy this difficulty, Parasuraman, Zeithaml and Berry (1985) established the gap model. Parasuraman, Zeithaml and Berry (1985) conducted focus groups and interviewed executives. In doing so, they identified five "gaps" that can cause quality problems in organizations. The first gap is the consumer expectations-management perceptions gap. This gap resulted from the discrepancies between the perceptions of executives and the perceptions of consumers on things like privacy and security issues. Basically, the executives did not understand the customers expectations. Service firms also experienced problems in providing services as quickly as the customers wanted. This created the second gap, which is called the management perception-service quality specification gap. The third gap is the service quality specification service gap. Executives realize that this gap includes the vital role of the contact personnel. This is a difficult aspect of providing services, because of the inconsistency in the behavior of personnel. The fourth gap is the service delivery-external communications gap. This gap forms, based on the capability of the firm to deliver what is promised and to completely inform consumers of all the things the service firm is doing that benefit customers. Firms should not promise the customer more than the service firm is capable of delivering. These problems in quality created gap five. The fifth gap is the difference between the expectations customers have and the perceptions of service actually received and is pertinent to providing high levels of service quality. That is, Gap 5 is the expected service-perceived service gap.

2.10 SERVICE QUALITY DIMENSIONS

Research suggests that customers do not perceive quality in a uni-dimensional way, but rather judge quality based on multiple factors relevant to the context. For example, quality of automobiles is judged by factors such as reliability, serviceability, prestige, durability, functionality, and ease of use, where as quality of food products might be assessed on other dimensions (flavour, freshness, aroma and so on). Similarly, specific dimensions of service quality have been identified through the pioneering research of Parasuraman, Seithaml, and Berry. Their research identified five specific dimensions of service quality that apply across a

20

variety of service contexts. The five dimensions defined here are shown in figure 2.6 as criteria by which interaction, physical environment outcome quality is judged. Reliability: ability to perform the promised service dependably and accurately Responsiveness: Willingness to help customers and provide prompt service Assurance: Employees knowledge and courtesy and their ability to inspire trust and confidence. Empathy: Caring, individualized attention given to customers. Tangibles:Appearance of physical facilities, equipments. Personnel and written materials.

2.10.1 RELIABILITY
Delivering on promises Of the five dimensions reliability has been consistently shown as the most important determinant of perception of service quality among US customers. Reliability is defined as the ability to perform the promised service dependably and accurately. In its broadest sense, reliability means that the company delivers on its promises promises about delivery, service provision, problem resolution, and pricing. Customers want to do business with companies that keep their promises, particularly their promises.

2.10.2 RESPONSIVENESS
Responsiveness is the willingness to help customers and to provide prompt service. This dimension emphasizes attentiveness and promptness in dealing with customer request, questions, complaints, and problems. Responsiveness communicated to customers by the length of the time they have to wait for assistance, answers to questions, or attention to problems. Responsiveness also captures the notion of flexibility and ability to customize the service, to customer needs.

2.10.3 ASSURANCE
Assurance is defined as employees knowledge and courtesy and the ability of the firm and its employees to inspire trust and confidence. This dimension is likely to be particularly important for services that the customer perceives as involving high risk and/ or about which they feel uncertain about their ability to evaluate outcomes

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2.10.4 EMPATHY
Empathy is defined as the caring, individualized attention the firm provides its customers. The essence of empathy is conveyed through personalized or customized service, that the customers feel that are unique and special. Customers want to be understood by and important to firms that provide service to them. Small service firms often know customers by name and build relationship that reflects their personal knowledge of customer requirements and references. When such a small firm competes with larger firms.

2.10.5 TANGIBLES
Tangibles are defined as the appearance of physical facility, equipment, personal, and communication material. All of these provide physical representation or images of the services that customer particularly new they will use to evaluate quality. Service industries that emphasize tangibles in their strategies include hospitality services where the customer visits the establishment to receive the service, such as restaurants and hotels,retail stores. All though tangibles are often used by service companies to enhance their image, provide continuity, signal quality to customers, most companies combine tangibles with another dimensions to create a service quality strategy for the firm. For example: Giffi Lube emphasis both responsiveness and tangibles providing fast, efficient service and comfortable, clean waiting area. In contrast, firms that dont pay attention to the tangibles dimensions of the service strategy can confuse and even destroy on otherwise good strategy.

2.11 THE INTEGRATED GAPS MODEL OF SERVICE QUALITY

Effective service marketing is a complex understanding involving many different skills and tasks. Executives of services organizations have long been confused about how to approach this complicated topic in an organized manner. The gaps model positions the key

concepts, strategies, and decisions in services marketing in a manner that begins with the customer and builds the organizations tasks around what is needed to close the gap between customer expectations and perceptions. The integrated gaps model of service The following four provider gaps shown below the horizontal line in Figure 2.6 are the Gap 1: Not knowing what customers expect Gap 2: Not selecting the right service designs and standards
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Gap 3: Not delivering to service standards Gap 4: Not matching performance to promise.

Customer gap

Customer

Expected service

Perceived service

Company GAP 2
Service delivery
Service delivery

GAP 4

External communications to customers

GAP 1

GAP 3

Customer-driven service designs and standards

Company perceptions of consumer expectations

Fig. 2.6 Integrated gaps model of service quality

2.11.1 CLOSING THE CUSTOMER GAP

Above the center horizontal line in figure 2.6 are the two boxes that correspond to customer expectations and customer perceptions. Customer perceptions are subjective assessments of actual service experiences: customer expectations are the standards of or reference points for, performance against which service experiences are compared. The sources of customer expectations consists of marketer controlled factors, such as advertising, as well as factors that the marketer has limited ability to affect, such as innate personal needs. Ideally, expectations and perceptions are identical: customers perceive that they get what they think they will and should. In practice, a customer gap typically exists.

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2.12 METHODS OF MEASURING SERVICE QUALITY

One of the most versatile, powerful, prominent and sophisticated techniques available for analyzing complex relationships in causal modeling is SEM (Structural Equation Modeling). SEM has been used in psychology (Anderson and Gerbing, 1988; Hansell and White, 1991), sociology (Lavee, 1988; Lorence and Mortimer, 1985), child development (Anderson, 1987; Biddle and Marlin, 1987) and management (Tharenou, Latimer, and Conroy, 1994). Specifically, SEM assesses the structural and measurement models of the multivariate theoretical problem. SEM combines the features of multiple regression, factor analysis and path analysis to allow the examination of complex relationships. It provides a simultaneous estimation of the model as a whole, the estimation of causal relationships among latent constructs with multiple indicators. Inclusion of both measurement and structural properties of theoretical models, measurement of non-recursive causation, measurement of direct as well as indirect effects, inclusion of measurement error and correlation of residuals. SEM requires the researcher to provide a starting point called the hypothesized model. From there, SEM provides feedback through a series of iterative modification indices that guides the researcher to the final model, which maximizes explanatory power (Arbuckle and Wothke, 1999; Biddle and Marlin, 1987; Hair, Anderson, Tatham and Black, 1995; Joreskog, 1973; 1978; Joreskog and Sorbom, 1984). The overall model is assessed using goodness-of-fit criteria. The first measure, a chisquare test, indicates the models overall fit. A second indicator of the models fit is the ratio, chi-square/degrees of freedom. If the ratio is below 5.0 when the sample size is greater than 200 (or below 3.0 when the sample size is less than 200), the models fit is good (Kettinger and Lee, 1995). Individual relationships are examined for statistical significance as well. The effects of the exogenous variables on the endogenous variables (gamma paths) and the effects of the endogenous variables on the endogenous variables (beta paths) are estimated using regression coefficients. Each path forms its own hypothesis. All causal relationships should be significant at the 95% confidence level.

2.13 BRAND LOYALTY

The degree to which consumers are committed to particular brands of goods or services depend on no. of factors: the cost of changing brands(switching cost), the availability of
24

substitutes, the perceived risk associated with the purchase, and the degree to which they have obtained satisfaction in the past etc. It may be more costly to change brands as awareness of substitutes is limited, and because higher risks may accompany services, consumers are more likely to remain customers of particular companies with services or goods. Greater search costs and monetary costs may be involved in changing brands of services than in changing brands of goods. Because of the difficulty in obtaining information about services, customers may be unaware of alternative or substitutes for their brands, or they may be uncertain about the ability of alternatives to increase satisfaction over present brands. If consumers perceive greater risks with services, as is hypothesized here, they probably depend on brand loyalty to a greater extent than when they purchase products. Brand loyalty, described as a means of economizing decision effort by substituting habit for repeated, deliberate decision, functions as a device for reducing the risks for consumer decisions. Final reason for consumers being more brand loyal with services, is the recognition of the need for repeated patronage in order to obtain optimum satisfaction from the seller. Becoming a regular customer allows the seller to gain knowledge of the customers tastes and preferences, ensures better treatment, and encourages more interest in the consumers satisfaction. Thus a consumer may exhibit brand loyalty to cultivate a satisfying relationship with the seller. This is more pre-dominant in the case of corporate consumers, who regularly make purchases, year after year. Brand loyalty has two sides. The fact that a service providers own customers are brand loyal is not a problem. The fact that the customers of the providers competitors are difficult to capture, however, creates special challenges. The marketer may need to direct communications and strategy to the customers of competitors, emphasizing attributes and strengths that he or she possesses and the competitor lacks. Marketers can also facilitate switching from competitors services by reducing switching costs.

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CHAPTER III

INDUSTRY PROFILE

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3.1 THE INVENTION OF BANKING

The history of credit and banking goes back much further than the history of coins. Nevertheless the story of the origins of money goes back even further still. The invention of banking preceded that of coinage. Banking originated in Ancient Mesopotamia where the royal palaces and temples provided secure places for the safekeeping of grain and other commodities. Receipts came to be used for transfers not only to the original depositors but also to third parties. Eventually private houses in Mesopotamia also got involved in these banking operations and laws regulating them were included in the code of Hammurabi. In Egypt too the centralization of harvests in state warehouses also led to the development of a system of banking. Written orders for the withdrawal of separate lots of grain by owners whose crops had been deposited there for safety and convenience, or which had been compulsorily deposited to the credit of the king, soon became used as a more general method of payment of debts to other persons including tax gatherers, priests and traders. Even after the introduction of coinage these Egyptian grain banks served to reduce the need for precious metals, which tended to be reserved for foreign purchases, particularly in connection with military activities.

3.2 EVOLUTION OF BANKING INDUSTRY IN INDIA

Organized banking was active in India since the establishment of the General Bank of India in 1786. After independence, the Reserve Bank of India (RBI) was established as the central bank and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by the government to form state-owned State Bank of India (SBI). RBI had undertaken an exercise to merge weak banks to strong banks and the total number of banks thus reduced from 566 in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting the credit needs of all sections of people, the government nationalized 14 large banks in 1969 followed by another 6 banks in 1980. This period saw enormous growth in the number of branches and the banks branch network became wide enough to reach the weakest sections of the society in a country like India. SBI's network of 9033 domestic branches and 48 overseas offices is considered to be one of the largest for any bank in the world. The economic reforms unleashed by the government in early nineties included banking sector too, to a significant extent. Entry of
27

new private sector banks was permitted under specific guidelines issued by RBI. A number of liberalization and de-regulation measures aimed at consolidation, efficiency, productivity, asset quality, capital adequacy and profitability have been introduced by the RBI to bring Indian banks in line with International best practices. With a view to giving the state-owned banks operational flexibility and functional autonomy, partial privatization has been authorized as a first step, enabling them to dilute the stake of the government to 51 percent. As of March 31, 2003, there were a total of 289 scheduled commercial banks in India. This chart illustrates how the banks were structured in Indian banking industry. It gives the banking measures of deposits, advances and net profit as at March 31, 2003 for the key constituents namely, public sector banks, private sector banks (new - which came into existence after liberalization of nineties and old - which were in existence from before), foreign banks and regional rural banks. Even though regional rural banks number 196, they have a minuscule share of 3.4 per cent of customer deposits and 3 per cent of net profit of the industry total. Similarly, the older private sector banks are mostly regional players and enjoyed a small share. The public sector banks including the State Bank group (SBI and its subsidiaries) dominate the industry with 77 per cent share of the deposits and 70 per cent share of net profit. Excluding SBI group, public sector banks still command a very high share of close to 50 per cent share of the total industry in terms of deposits.

3.3 POST INDEPENDENCE SCENARIO

The post independence scenario is also known as the second phase of Indian Banking Scenario. During the post independence period there felt a need for nationalized of banks. Mainstream banking in India was being controlled by few industrialists mostly serving the narrow interest of industries to which they were connected and catering to the needs of a certain class of customers - this termed as "class banking". A liberal credit policy was not followed in lending to the priority and neglected sectors, including Agriculture and SSI. Thus, a need was felt literally overhaul the Indian banking system to serve the needs of the economically weaker sections of the society across the length and breadth of the country. Several social control measures were contemplated to overcome the deficiencies outlined above the in the working of banks in India. The first step towards achieving this objective was taken when banking laws (amendment) act was passed in December 1968. However the ultimate step
28

was taken by GOI through an ordinance in July 1969 when 14 major commercial banks were nationalized. These banks had deposit, which constituted 87.5% of total deposits of the scheduled banks in the private sector as on 31-12-1968. The bank nationalization bill was passed in the parliament as the banking companies (acquisitions and transfer of undertaking) act 1970. Six more banks were nationalized in 1980. Thus the measure was taken to achieve the desired social and economic objectives.

3.4 INDIAN BANKING- A CHALLENGES AHEAD

In recent years, there has been a considerable widening and deepening of the Indian financial system, of which banking is a significant component. With greater liberalization, the financial system has come to play a much larger role in the allocation of resources than in the past and its role in future can be expected to be much larger than at present. The growing role of the financial sector in the allocation of resources has significant potential advantages for the efficiency with which our economy functions. Consequently, the adverse consequences of malfunction of the financial system are likely to be more severe than they used to be in the past. Hence, all the efforts are focused at ensuring greater financial stability. Given the significance of the Indian banking system, one cannot afford to underplay the importance of a strong and resilient banking system.

3.5 BANKS IN THE ECONOMY

A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a capital market. The bank then lends out most of these funds to borrowers. However, it would not be prudent for a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This behavior is called fractional-reserve banking and it is a central issue of monetary policy. Note that under Basel I (and the new round of Basel II), banks no longer keep deposits with central banks, but must maintain defined capital ratios.

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Asset liability management duly audited

A need for widening the range of products and services was felt in Indian banking industry. The range of products and services now offered include securitization, venture capital assistance, factoring, forfeiting, hire purchase and leasing, custodial service, portfolio management, retail banking etc.

3.6 Other highlights

The innovative process of banking for improved customer service matching international standards through infusion of technology includes Electronic Fund transfer, Telebanking, 7-day week banking, credit/debit cards; ATMs etc. Thus the professional banker must be conserving with the dynamics of innovation in commercial banking.

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CHAPTER IV

COMPANY PROFILE

31

STATE BANK OF TRAVANCORE 4.1 BRIEF HISTORY

State Bank of Travancore was originally established as Travancore Bank Ltd. In 1945 sponsored by the erstwhile Princely State of Travancore.Under a special statute of the Indian Parliament(SBI subsidiary Banks Act1959) it has been made an Associate of the State Bank of India and a member of State Bank Group, the largest banking group in india.The Regd.office/ Head Office at Poojapura, Trivandrum. Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilising small savings from the community. The bank collected as low as 2 annas daily at the doorsteps of the depositors through its Agents under its Pigmy Deposit Scheme started in 1948. This scheme is the Bank's brand equity today and the Bank collects around Rs. 2 crore per day under the scheme. The progress of State Bank of Travancore has been synonymous with the phase of progressive banking in India. Spanning over 60 years of pioneering expertise, the Bank has created for itself a solid customer base comprising customers of two or three generations. Being firmly rooted in rural India and understanding the grassroot realities, the Bank's perception had vision of future India. It has been propagating innovations in Banking and also has been receptive to new ideas, without however getting uprooted from its distinctive socio-economic and cultural ethos. Its philosophy of growth by mutual sustenance of both the Bank and the people has paid rich dividends. The Bank has been operating as a catalyst of development across the country with particular reference to the common man at the individual level and in rural/semi urban centres at the area level. The Bank is well equipped to meet the challenges of the 21st century in the areas of information technology, knowledge and competition. A comprehensive IT plan is being put in place and the skills and knowledge of the Bank's personnel are being upgraded through a variety of training programmes to promote customer delight in every sphere of its activity. The Bank has launched an ambitious technology plan called Centralised Banking Solution (CBS) whereby 500 of our strategic branches with their ATMs are being networked nationwide over a 4 year period.

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4.2 MEMORABLE MILESTONES IN AN 62-YEAR JOURNEY

Growing Far And Wide

1945 On 10.11.1945, the business of the Bank commenced in Travancore with the name

"Travancore Bank Ltd.," .

1948 First branch of the Bank opened at Travancore Dakshina . 1957 Bank became a member of the Clearing House for the first time at Bombay. 1969 29 branches opened in a single day in rural areas. 1971 200th branch opened at Trisshur in Kerala 1972 Entered Foreign Exchange business by opening Foreign Exchange Department at

Bombay.
1974 Name of the Bank changed from "Travancore Bank Ltd." to "State Bank of

Travancore".
1976 Economic Research Department set up. One of the first few Banks to emphasise on

research in Banking even before nationalisation.

1979 Bank had 306 branches at the time of nationalisation of which 66% State Bank of

Travancore in Rural and Semi Urban centres.

1980 First Staff Training College started at Head Office 1981 First specialised branch in Foreign Exchange opened at Kerala. 1982 Opened a branch Centralised NRE Saving Bank Account Opening at NRI Branch

Ernakulam.
1986 First overseas branch opened at Saudi on 17.8.86. 1991 First Specialised Industrial Finance Branch opened at Mumbai. 1999 Bank raised Capital of Rs.125 Crore in Oct.1999 from more than 4 lakh shareholders 2000 First Specialised Capital Market Services branch opened at Mumbai 2001 First branch under CBS (Core Banking Solution) started operation at Bangalore. 2002 Centralised Banking Solution under the brand name "SBT-e-banking" launched at

33

Delhi, Mumbai, Bangalore and Kerala.

2003 Toll Free Voice Mail System for redressal of grievances introduced. 2004 Utility bill payment services through Internet banking introduced. 2005 Introduced On-line reservation of Railway Tickets through Indian Railway Catering

& Tourism Corporation Ltd. (IRCTC) for Internet banking customers of our Bank.
2005 Bank approached the Capital Market with Rs.5 Crore equity shares at a premium of

Rs.40 through Book building route Bank collected Rs.250 Crore and the issue was oversubscribed by 29.275 times.
2005 Implementation of Venture Capital Scheme of SMALL FARMERS AGRI-

BUSINESS CONSORTIUM (SFAC) Entered into MOU with SFAC for promoting of investments in Agri-business products.
2006 500th Branch of StateBank of Travancore in Karnataka opened at Navnagar,

Bagalkot.
2006 600th Branch of SBT opened at Tondiarpet, Chennai on 23.03.2006. 2006 Branches opened for the first time in 19 additional districts 2007 Branches opened for the first time in 13 additional districts 2008 Branch network expanded to 16 States and UTs 2008 Branches opened for the first time in 6 new districts

4.3 STATE BANK OF TRAVANCORE MANAGEMENT INSTITUTE(SBTMI)

SBTMI- An Overview STATE Bank of Travancore Management Institute (SBTMI), located at ERNAKULAM, in the backdrop of luxuriant SeaSide, is the apex training institution of SBT for honing skills in banking and management for the bank's executives and senior personnel. The Institute was set up in November 1987. The institute has a sprawling campus of 15 acres, offering a panoramic view of the green valley on the east and Arabian Sea in the west. The fully residential Institute, with all modern infrastructure expected in an Institution of this nature, like
34

well-equipped classrooms, library, computer laboratory, conference hall and auditorium, also offers a variety of recreation facilities, including a modern gymnasium, 5-hole golf course, minicricket ground, volleyball courts, indoor games, jogging track and so on. Shady fruit bearing trees, medicinal plants, rose garden and other recreational facilities are provided to rejuvenate the body and mind The hostel has 65 fully air-conditioned and tastefully furnished rooms

Training Centres & their activities

SBT, under its wings, has Two Training Centres, at Trivandrum and Ernakulam, apart from a Training Manager. While Training Centres cater to the training needs of Middle Management, Junior Management and Workmen employees, Training Manager imparts training mainly to Workmen employees. Like SBT, Training Centres are also well equipped with all modern learning aids, like computer lab, library, multi-media projectors, seating arrangements to facilitate "Adult Learning Principles"

Training Programmes
Training activities of the Bank are governed by the policies and procedures laid down in the Training Manual. Training programmes are classified into two categories, general programmes and special programmes. 40 General Programmes, in branches like Risk Management, Credit Management, Recovery Management, Internal Control Management, Human Resource Management, Marketing and Quality Improvement, Foreign Exchange, Information Technology, are identified and their course contents, target groups are listed in the Training Manual. Special programmes are designed based on the recommendations of the Departments at Head Office and Corporate Office, taking into account the Corporate Goals, Policies, requirements, business plans and strategies, target group etc.

Training Methodology
"Adult Learning Principles" is practised in all training programmes, where the emphasis is on group synergy through activities like group discussion, case studies, problemsolving exercises etc.

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E-Learning Initiatives
The Bank has taken its first step in e-learning initiative with the uploading of reading materials on "Export Finance", Agricultural Lending and Financing SSI on its Intranet

MOU with M/s CMC Limited

The Bank has signed a MOU with M/s CMC Ltd., a Tata Consultancy Services Group company, to make State Bank of Travancore Institute Management (SBTIM) a Centre of Excellence of global standards. Under the tie-up high quality management training in Banking and Finance will be offered with specialisation in Financial Management, Marketing, Human Resource Management, Communication, Information Technology etc

4.4 PRODUCTS & SERVICES

Bank offers a number of varied products under Deposits, Advances to suit the needs of all types of customers. Details of products are available in each category under this head. We offer other services for our customers like Cash Management Services and Gift Cheques. Bank also have various delivery channels like ATM, Telebanking, Internet Banking offering specialised products and services at selected branches / centres under Centralised Banking Solution.

DEPOSIT PRODUCTS A) Operative Deposit Products

i. Savings Bank Account These accounts are designed to help the individuals (personal customers) to

inculcate the habit of saving money and to meet their future requirement of money. Amounts can be deposited/withdrawn from these accounts by way of cheques / withdrawal slips. It helps the customers to keep minimum cash at home besides earning interest.

These accounts can be opened by eligible person/s and certain organisations /

agencies (as approved by the Reserve Bank of India (RBI)

36

As required by law, while opening SB account, the Bank will satisfy itself about

the identity. including verification of address, of a person/s seeking to open an account, to assist in protecting the prospective customer/s, members of the public and ourselves against fraud and other misuses of the banking system

The Bank requires a satisfactory introduction of the person/s opening the account

by a person acceptable to the Bank

The Bank is required to obtain two recent photographs of the person/s opening the

account, as per RBI directives The Bank is required to obtain Permanent Account Number (PAN) or General

Index Register (GIR) Number or alternatively obtain declaration in Form No.60 or 61 as per the Income Tax Act (vide Section 139 A) from the person/s opening the account

The Bank will provide to the prospective customers details of the documents

required for identification of the person/s opening the account in addition to a satisfactory introduction. Documents normally accepted are the current gas / telephone / electricity bill or voter's identity card or driving licence or passport etc

The account holder is required to maintain certain minimum balance in the

account, as specified by the Bank from time to time, separately for computerised and noncomputerised branches and also depending on, whether account holder wants to avail the cheque book facility or not. Non-compliance of this would attract service charges. Interest at 3.50% p.a. is presently paid on half yearly basis depending on minimum balance between the 10th day and last day of the month, with a minimum of Re.1/-.

Cheques, dividend warrants drawn in the name of account holder/s will only be

collected through this account. Instruments endorsed in favour of the account holder/s will not be collected through savings bank account

Business transactions shall not be routed through Savings Bank Account. If

routed, the Bank will recover the interest paid and may also close the account. The Bank has the right to close any undesirable/unremunerative account without giving any reason by a simple notice to the account holders.

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ii) Current Account

Current Accounts can be opened by individuals, partnership firms, private and

public limited companies, HUFs/specified associates, societies, trusts, etc

As required by law, while opening this account, the Bank will satisfy itself about

the identity, including verification of address, of a person/s seeking to open an account, to assist in protecting the prospective customer/s, members of the public and ourselves against fraud and other misuses of the banking system

The Bank requires a satisfactory introduction of the person/s opening the account

by a person acceptable to the Bank.

The Bank is required to obtain two recent photographs of the person/s opening /

operating the account, as per R B I directives

The Bank is required to obtain Permanent Account Number (PAN) or General

Index Register (GIR) Number or alternatively obtain declaration in Form No.60 or 61 as per the Income Tax Act (vide Section 139 A) from the person/s opening the account (i.e. including partners of Registered / Unregistered partnership as also Registered / Incorporated bodies / companies

Minimum balance as stipulated from time to time will be required to be

maintained.

No interest is paid on credit balances kept in current account. Service charges are levied for Ledger folio used, Cheque books issued, Non-

maintenance of minimum balance, Return of cheques etc.

For opening special types of current accounts like for Executors, Administrators,

Trustees, Liquidators etc., the Branch Manager may be contacted who will help in opening these types of accounts.

As per RBI directive, the applicant (i.e. account opener) should declare in the

account opening form or separately that he is not enjoying any credit facility with any Bank and if he does enjoy any facility / facilities, he should declare full particulars thereof indicating the name of the bank and name of the branch wherefrom he has availed these facilities. iii) SBT-Super Premium Savings Bank Account The salient features of the new scheme are furnished below:

38

All person(s) / associations who are eligible to open a Savings Bank Account can open

accounts under this scheme.

Monthly average minimum balance of Rs.1,00,000/- is to be maintained under the

scheme.

Sweep-in / sweep-out facility at all our e-banking branches.

B) Special products in SBT E-banking i) Premium Savings Account The Bank has introduced a Premium Savings Account at e-banking branches that combines full safety, easy liquidity and highest possible interest. The salient features of the scheme are as under

A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures

that while the customer's money earns solid interest as a fixed deposit, it turns liquid to meet his urgent needs. That too at no extra cost.

Average monthly balance of Rs.10000/-to be maintained in the Premium Savings

Account.

Balance available in the account in excess of Rs.10000/-on any day gets

automatically swept out into a fixed deposit for 180 days in units of Rs.1000/-. In the event of shortfall in SB for meeting your clearing cheques or for other

urgent needs, the fixed deposit is swept back into the Premium Savings Account in required number of units of Rs. 1000/- free of cost.

No penalty is charged for breaking the fixed deposit prematurely. However, the

amount swept out earns interest for the period run at the applicable rate.

Even while breaking the fixed deposit, only the most recently converted fixed

deposit is first broken to minimise interest loss to the customer.

Only those amounts swept out of your Premium Savings Account are eligible for

sweep in and not other fixed deposits.

When fixed deposits mature at the end of 180 days, the Bank will renew the

principal every 180 days while crediting the interest to the savings account. Rs.100/-per month is levied as service charges whenever the monthly average balance in the Premium Savings Account goes below Rs.10000/39

ii) Special Premium Savings Account The Bank has introduced a Special Premium Savings Account at e-banking branches that combines full safety, easy liquidity and highest possible interest. The salient features of the scheme are as under

A unique 'Sweep out, Sweep in' facility offered at our e-banking branches ensures

that while the customer's money earns solid interest as a fixed deposit, it turns liquid to meet his urgent needs. That too at no extra cost.

Average monthly balance of Rs.20000/-to be maintained in the Special Premium

Savings Account.

Balance available in the account in excess of Rs.20000/-on any day gets

automatically swept out into a fixed deposit for 1 year 1 day in units of Rs.1000/-. In the event of shortfall in SB for meeting your clearing cheques or for other

urgent needs, the fixed deposit is swept back into the Special Premium Savings Account in required number of units of Rs. 1000/- free of cost.

No penalty is charged for breaking the fixed deposit prematurely. However, the

amount swept out earns interest for the period run at the applicable rate.

Even while breaking the fixed deposit, only the most recently converted fixed

deposit is first broken to minimise interest loss to the customer.

Only those amounts swept out of your Special Premium Savings Account are

eligible for sweep in and not other fixed deposits.

When fixed deposits mature at the end of 1 year 1 day, the Bank will renew the

principal every 1 year 1 day while crediting the interest to the savings account. Rs.100/-per month is levied as service charges whenever the monthly average balance in the Special Premium Savings Account goes below Rs.20000/-

40

iii) Multi-City Current Account 2 variants of Multi-City Current Accounts are SBT Silver Current Account and SBT Platinum Current Account .

iv) SBT Flexi Current Account SBT Flexi Current Account combines the liquidity of Current Account with the earning capacity of Term Deposits. The account is available at SBT Branches and provides for Sweep-out Sweep-in Facility. Amounts in excess of the prescribed threshold amount of Rs. 1.00 lakh is automatically swept out to Term Deposit and funds from the Term Deposit is Swept in to the Flexi Current Account as and when there is a shortfall in the balance in the account.

v) Multi-City SB Account This facility is to be offered to high net-worth Savings Bank customers of the Bank. The minimum average balance(MAB) to be maintained in the account is Rs.25,000/-. All third party cheques shall be crossed Account Payee and will be payable at par at all our CBS branch centres. No upper limit for transaction through A/C Payee cheques. Self-cheques can be paid in cash upto an aggregate limit of Rs.50,000/- in a day at all the SBT branches other than the home branch.

C) Term Deposit Products

i) Fixed Deposit A regular interest earning scheme. A flexible and convenient deposit scheme which ensures that your money never remains idle. Even very small amounts earn interest for very short periods. Yes. You can deposit an amount of just Rs.1000/- for a period as short as 15 days and make it grow.

Salient features of the scheme are:

Minimum deposit Rs.1000/41

Deposits accepted for periods ranging from 15 days to 120 months. Option available for receiving monthly interest at discounted rates or quarterly

interest.

Premature withdrawal of deposit is permitted any time subject to payment of

prescribed penalty.

Loans available upto a maximum of 95% of the deposit amount depending on the

length of the unexpired period of the deposit.

Senior Citizens (above 60 years of age) are eligible for an additional interest of

1%.

Nomination facility available. The rates of interest on deposits are as fixed by the Bank from time to time.

ii) Exchange Earners Foreign Currency Accounts Term Deposit (EEFC A/cs)

EEFC a/c can also be opened as Term deposit

Exporters to earn interest on EEFC accounts to the extent of outstanding of USD

1 Mio per exporter.

Term Deposits are opened as per RBI guidelines from time to time. At present

the maturity period of Term Deposits are upto 31st October 2008 only.

Loans against this Term Deposits are not permitted Designated currencies are US Dollars (USD), Great Britain Pounds (GBP) and Euro. Interest Rates on EEFC Term Deposits are notified 1st of every month

42

iii) SBT Tax Shield Deposit Scheme

The new product SBT Tax Shield is drawn on the lines of the Union Government notification on Bank Term Deposit Scheme, 2006 for the purpose of Sec 80C(2)(xxi) of the Income Tax Act. The Deposit under the Scheme has to be in the presribed form with the Fixed Deposit Receipt bearing Permanent Account Number (PAN) and signature of the assesee along with the name and address of the account holder and other details. iv) Vikas Cash Certificate A Money Multiplier scheme - Vikas Cash Certificate is a convenient and attractive reinvestment plan where interest earns interest every quarter to provide a tidy sum on maturity. An ideal and fast growing scheme for those with big future commitments in mind viz., children's education, daughter's marriage, house purchase etc. Salient features of the scheme are:

Minimum deposit Rs.1000/- and thereafter in multiples of Rs.100/Period of deposit ranges from 6 months to 10 years in completed quarters. Interest compounded every quarter. Senior Citizens (above 60 years of age) are eligible for an additional interest of

1%.

Premature withdrawal of the deposit is permitted any time on payment of the

prescribed penalty.

Loans upto a maximum of 95% of the balance available depending on the length

of the unexpired period of the deposit.

Nomination facility available. The rates of interest are as fixed by the Bank from time to time.

v) SBT Suvidha Deposit A Fixed Deposit with partial withdrawal facility - A flexible and convenient scheme whereby a deposit is made for a fixed period from which amounts can be withdrawn as and when needed. It is ideally designed for those who desire the high interest on their fixed deposit with the operational convenience of withdrawals in times of need.

43

Salient features of the scheme are:

o

Deposit accepted for periods ranging from 15 days to 120 months. Deposit accepted in multiples of Rs.1000/- with a minimum of Rs.1000/Interest is payable every quarter. Option is available to withdraw a portion of the deposit in multiples of Rs.1000/whenever needed.

No penalty is payable on such partial withdrawals. Senior Citizens (above 60 years of age) are eligible for an additional interest of 1%.

Nomination facility available. The rates of interest are as fixed by the Bank from time to time.

vi) Social Security Deposit An ideal monthly income plan - Nothing provides greater comfort and peace of mind than a guaranteed, regular income. This is particularly true of the aged and the pensioners who desire a monthly income through periodical investment of their accumulated savings. This periodical income can be utilised in several ways like gifting a part to near and dear ones, donating to noble causes etc. Our Social Security Deposit is ideally designed to meet such needs. All you need to do is to invest a lumpsum amount for a fixed period that provides regular monthly interest for meeting various commitments during the period of the deposit. Salient features of the scheme are:

Minimum amount of deposit is Rs.1000/Deposits accepted from 1 year to 10 years in completed quarters. Option to earn interest either at discounted rates at the end of every calendar

month or on quarterly basis during the period of the deposit.

Loan available upto 95% of the deposit amount depending on the length of the

unexpired period of the deposit.

o

Senior Citizens (above 60 years of age) are eligible for an additional interest of 1%.

Nomination facility available.

44

Rate of interest are as fixed by the Bank from time to time.

vii) Senior Citizens' Security Deposit A highly beneficial value added scheme, specifically designed for the benefit of our respected Senior Citizens ( above 60 years of age), this deposit scheme is truly special in character, carrying an interest of 0.5% over and above the normal rate besides offering numerous value additions. Salient features of the scheme are:
o

Minimum amount of deposit is Rs.1000/Period of Deposits is 12 to 120 months. Interest on the deposit is 1% above the normal rate. Interest payable at monthly (discounted rates) or quarterly intervals. Premature withdrawal of deposit is permitted any time without levy of penalty. Accounts closed before completion of 12 months are not eligible for additional interest of 1%.
o

Exemption from maintaining prescribed minimum balance in savings Bank account.

Free Remittance Facility to any of our branches upto a specified limit. Nomination facility available. The rates of interest are subject to change and are as fixed by the Bank from time to time

viii) Cumulative Deposit An ideal scheme of monthly savings for salaried people,businessmen,professionals etc.Small amounts saved every month for a long period come in handy to meet large financial commitments in the future. Salient features of the scheme are:

Minimum deposit is Rs.100/-per month. Period of deposit ranges from 12 months to 10 years. Delayed payment of instalments are accepted with nominal penalty. Monthly minimum balance in the account earns compound interest every quarter.
45

No tax is deducted from the interest on the deposit. Loans up to maximum of 95% of the deposit amount available depending on the length of the unexpired period of the deposit.

Nomination facility available. The rates of interest are as fixed by the Bank from time to time.

ix) Pigmy Deposit Little drops of water make a mighty ocean - This deposit scheme suits the needs of everyone viz. businessmen, professionals, wage earners, teachers, salaried personnel, traders, housewives etc. You can save money with the Bank regularly depending on your convenience. And you need not visit the Bank for doing so. The Bank's authorised Agent collects your savings at your doorsteps at regular intervals. And your money silently grows over 63 months into a lumpsum for meeting your future commitments e.g. daughter's marriage, children's education, family functions, house purchase etc. Salient features of the scheme are:

Period of the scheme is 63 months. Amount as low as Re.1/- per day can be saved daily / weekly / monthly. No penalty even if depositor is unable to pay instalments regularly. Deposit account can be closed prematurely subject to certain conditions. Loans upto a maximum of 75% of the balance in the Pigmy account available. Nomination facility available. No tax will be deducted for the interest on the deposit. The rates of interest are as fixed by the Bank from time to time

x) SBT Corporate Suvidha Deposit Scheme Bank is launching of a new deposit scheme namely SBT Corporate Suvidha Deposit Scheme . The sailent features of the scheme are as follows :

46

Amount of deposit : The minimum quantum of deposit under the scheme is fixed

at Rs.500 lacs and thereafter in multiples of Rs.100 lac.

Period of deposit : 7 days to 180 days. Rate of interest : As applicable to other domestic term deposits. No special or

extra rate can be offered.

Payment of interest : Simple interest is payable at quarterly intervals at the

contracted rate.

Premature refunds : Premature withdrawal in multiple of Rs.100 lac permitted

subject to one day notice. However minimum balances of Rs.5 crores should be retained after such partial withdrawal.

There is no restriction regarding frequency and number of withdrawals. No penalty is to be charged on partial withdrawals . Interest payable on such

portion shall be the interest applicable at the time of accepting the deposit for the period the amount remained with the Bank.

Loans on Deposit : LD can be arranged only on the balance amount held with the

Bank and under no circumstances withdrawals beyond the margin stipulated for the LD, shall be permitted. D) LOAN PRODUCTS A) Personal Loan Products The Bank is meeting varied personal credit requirements of different classes of people through the following loan schemes under personal banking. i) SBT Saral Purpose : To meet urgent personal credit requirements ii) SBT Senior - An exclusive personal loan scheme for pensioners Purpose: Any bonafide personal / business credit requirement

47

iii)SBT Rent Purpose : To meet urgent personal expenses/credit need iv) SBT Car & Bike Loan Purpose : To buy new / second hand 4-wheeler or new 2-wheeler v) SBT Gold Loan - Loan against Gold Jewels Purpose: Jewel loans/Overdraft for any genuine business/personal credit requirement vi) SBT Pigmy Purpose: To meet any contingent requirement of pigmy depositors . vii) SBT Kisan Purpose: To meet urgent personal needs / purchase consumer durables like TV, Fridge, Washing Machine, Audio / Video Equipment etc viii) SBT Housing Loan Scheme Purpose :

For construction/acquisition of a house/flat or for acquiring a site and building a

house thereon.

For acquiring a new house or existing house not more than 25 years old. For making extensions/additions to existing house. For NRIs, loan available for

acquisition of house for self-occupation on return to India. For acquisition of furniture/fixtures including air conditioners, geysers, fridge, cots, tables, sofas etc which form part of improvements to the home purchased or constructed out of the Housing Loan.

ix) SBT Nivas Plus - A Pre approved personal loan for Housing Loan customers with good payment record
48

Purpose : To meet any genuine personal or business credit requirement x) SBT Vidya- A State Bank's Education Loan Scheme Purpose : State Bank's involvement in education dates back to the decades prior to the Nationalisation of Banks. The Bank was also the first to set up a string of Rural Training Institutes aimed at empowering the young India in rural areas through entrepreneurial education and training.

xi) SBT Vidyarthi- A Standby Overdraft facility for students of professional courses Purpose : To meet the recurring expenses of contingent nature that may have to be incurred by students pursuing professional courses . B) Agricultural Loan Products i) SBT Swarna- A facility of Term Loan or Overdraft against the security of gold ornaments. ii) SBT KRISHI
Purpose : A HASSLE FREE MULTIPURPOSE, COMPOSITE, LONG TERM FARM CREDIT SCHEME FOR
AGRICU LTURISTS

iii) Jewel Loans for Agriculture (JL Agri)

Bank provides jewel loans to agriculturists for their agricultural credit needs on easy terms and at low cost iv)SBT Farm House Scheme The scheme is meant for farmers to enable them to have a decent dwelling house which also takes care of other requirements such as cattle shed, drying yard, farm implements shed v) KRISHI VAHAN Schemes - For efficient and timely farming Medium to long term loans are extended to farmers for

Purchase of Tractors. Power Tillers and Small H.P. Tractors. Combine Harvesters.
49

CHAPTER V

ANALYSIS & INTERPRETATION

50

ANALYSIS AND INTERPRETATION For evaluating the quality of customer service in SBT,a number of critical variables are selected for conducting an indepth analysis.The results of the analysis are presented in the following sections.

ACCOUNTS MAINTAINED
Table 5.1

Nature of account Savings bank Current accounts Recurring deposit Special term deposit Cash credit Term loan Housing loan Car loan Total

No. of respondents 26 25 8 8 12 7 8 6 100

Percentage 26 25 8 8 12 7 8 6 100

51

Savings bank Current accounts

30
Recurring deposit

25 percentage 20 15 10

Special term deposit Cash credit Term loan Housing loan Car loan

5 0

Chart No 5.1

Inference It can be seen from the above table that 26% of the respondents maintain saving bank account in the bank. 24% of them maintain the current account and 8% maintains the recurring deposit. Only 8% of the respondents keep special term deposit and 12% are the holders of cash credit. While 7% of the respondents have a term loan, 8% have housing loan. Remaining 6% are having car loan.

52

AWARENESS ABOUT THE SERVICES PROVIDED BY SBT LIKE ATM, CREDIT, INTERNET BANKING ETC.
Table 5.2

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 54 31 8 7 0 100

Percentage 54 31 8 7 0 100

Strongly agree

60 50 40 Percentage

Some what agree Disagree Strongly disagree Neutral

30 20 10 0

Chart No 5.2

53

Inference 54% of the respondents strongly agree that they are aware about the services provided by SBT like ATM, Credit cards, Internet Banking etc. 31% of the respondents some what agree. While 8% of them disagree this and 7% of the respondents strongly disagree this.

Interpretation Majority of respondents are aware about the various services that provided by SBT.

SEXWISE CLASSIFICATION
Table 5.3

Gender Male Female Total

No. of respondents 68 32 100

Percentage 68 32 100

Percentage

Female 32%

Male 68%

54

Chart No 5.3 Inference Out of the 100 respondents 68 are males and remaining 32 are females. Interpretation Data is mainly collect from walk-in customers , who were mostly male

OCCUPATION WISE CLASSIFICATION

Table 5. 4

Occupation Govt. Employee Pvt. Employee Business man Agriculturist Total

No. of respondents 27 25 28 20 100

Percentage 27 25 28 20 100

Percentage Agriculturis t 20% Govt. Employee 27% Business man 28% Pvt. Employee 25%

Chart No 5.4
55

Inference Out of 100 respondents 27% are Govt. employees and 25% are Pvt. employees. While 28% of them are businessman and 20% are agric

INCOME WISE CLASSIFICATION

Table 5.5

Income Less than 1 lakh 1 2 lakh 2 4 lakh Above 4 lakh Total

No. of respondents 8 38 42 12 100

Percentage 8 38 42 12 100

Percentage

Above 4 Less than 1 lakh lakh 8% 12%

2 4 lakh 42%

1 2 lakh 38%

Chart No 5.5

56

Inference It can be seen from the above table that 8% of the respondents have income less than Rs.1 lakh. 38% of them have income between 1 2 lakhs. While 42% of the respondents have 2 4 lakhs, remaining 12% of them have an income above 4 lakhs. Interpretation From survey it is clear that majority of customers were having good annual income , it actually ensures the security of Bank operations

EDUCATION WISE CLASSIFICATION

Table 5.6

Education S.S.L.C Secondary Graduate Post graduate Other Total

No. of respondents 36 22 14 8 20 100

Percentage 36 22 14 8 20 100

S.S.L.C Secondary Graduate Post graduate Other

40 35 30 Percentage 25 20 15 10 5 0

57

Chart No 5.6 Inference Having regard the qualification wise classification it can be seen from the above table that 36% of the respondents are matriculate. 22% of them are a level of secondary. While 14% are graduates, 8% are postgraduate and other 20% are of having other qualification .

Interpretation Majority of the SBT customers are underqualified so they are not aware about the various schemes & products of SBT.

RESPONSE OF THE STAFF FOR LOANS

Table 5.7

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 24 38 16 10 12 100

Percentage 24 38 16 10 12 100

58

Strongly agree Some what agree

40
Disagree

35 30 Percentage 25 20 15 10 5 0
Strongly disagree Neutral

Chart No 5.7

Inference It can be seen that 24% of the respondents strongly agrees that whenever they contacts staff of SBT for loans, the respond were positive. While 38% of them some what agree, 16% of the respondents disagrees to it. 10% of the respondents strongly disagrees that the response of the staff of SBT were not positive when ever they contacted for loans.

Interpretation Most of the respondents are satisfied with loan procedure of SBT because Bank provide them repayment facilities, quickprocessing of loans &minimum interest for loans.

59

PERFECTION OF THE TRANSACTIONS DONE BY USING ATM

Table 5.8

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 25 31 20 23 1 100

Percentage 25 31 20 23 1 100

Strongly agree Some what agree

35 30 25 Percentage 20 15 10 5 0

Disagree Strongly disagree Neutral

Chart No 5.8
60

Inference Having regard the perfection, it can be seen from the above table that 25% of the respondents strongly agrees that there exist perfection of the transactions done by using ATM Banking. 31% of the respondents some what agree to this. While 20% of them disagree to this, 23% of the respondents strongly disagree this.

Interpretation Majority of customers are satisfied with ATM usage but so much percentage is dissatisfied this is due to in case of customer require higher amount withdrawal which may not be possible in single day through ATM.

AWARENESS THROUGH FORMS & BROCHURES

Table 5.9

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 16 37 29 16 2 100

Percentage 16 37 29 16 2 100

61

Strongly agree Some what agree

40 35 30 Percentage 25 20 15 10 5 0
Disagree Strongly disagree Neutral

Chart No 5.9 Inference From the above table it can be seen that 16% of the respondents strongly agrees that the forms and brochers provided by SBT is made them aware about all the schemes and services. While 37% of the respondents some what agree, 29% of them disagree this. 16% of the respondents strongly disagree this. Remaining 2% neutral and according to them the forms and brochers provided by SBT made did not create any awareness about all the schemes and services.

Interpretation Majority of customers are not satisfied by brochers &forms provided by SBT because it does not mention the information regarding different schemes available to different segments of customers.

62

TIME FOR OPEN AN ACCOUNT

Table 5.10

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 38 27 18 10 7 100

Percentage 38 27 18 10 7 100

Strongly agree Some what agree Disagree Strongly disagree Neutral

40 35 30 Percentage 25 20 15 10 5 0

Chart No 5.10

63

Inference The above table reveals that 38% of the respondents strongly agrees that the time taken by SBT to open an account was satisfying. 27% of the respondents some what agree to this. While 18% of the respondents disagrees to this, while 10% of them strongly disagrees. Remaining 7% of them that they did not have such satisfaction.

Interpretation Majority of respondents are satisfying by account opening time of SBT this will show that Bank employees are so responsive towards customer to deliver a Quality service.

AWARENESS ABOUT THE USE OF MOBILE BANKING FACILITY

Table 5.11

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 27 30 23 12 8 100

Percentage 27 30 23 12 8 100

64

Strongly agree Some what agree

30
Disagree

25 20 Percentage 15 10 5 0

Strongly disagree Neutral

Chart No 5.11 Inference From the above table it can be seen that 27% of the respondents strongly agrees that they are aware of using mobile banking facility. 30% of them some what agree. While 23% of the respondents disagree this 12% of the respondents strongly disagrees, remaining 8% neutral this that they do not have such awareness Interpretation Bank should promote Mobile Banking Facility to its customers by conducting various promotional programmes inside the banks

65

KNOWLEDGE OF SBT STAFF ABOUT THEIR PRODUCTS

Table 5.12

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 28 38 16 12 6 100

Percentage 28 38 16 12 6 100

Strongly agree

40 35 30 Percentage 25 20 15 10 5 0

Some what agree Disagree Strongly disagree Neutral

Chart No 5.12

66

Inference As from the above table it can be seen that 28% of the respondents have strong agreement that the SBT staff has sufficient knowledge about their products. 38% of them some what agree to this. 16% of the respondents disagrees to this and 12% of the strongly disagrees this. Remaining 6% of the respondents neutral to this.

Interpretation Most of customers lacks clarity when they deal with SBT employees with queries on various accounts, products & schemes this may be due to gap between customer expectations & employee perceptions.

SATISFACTION TOWARDS BANKING TIME

Table 5.13

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 8 37 25 30 0 100

Percentage 8 37 25 30 0 100

67

Strongly agree Some what agree

40 35 30
Disagree Strongly disagree Neutral

Percentage

25 20 15 10 5 0

Chart No 5.13 Inference From the above table it can be seen that 8% of the respondents strongly agrees that they are satisfied with the banking time of SBT. 37% of them are some what agrees. While 25% of the respondents disagrees this, 30% of them strongly disagree this.

Interpretation Majority of respondents are not satisfying with current banking time of SBT, so bank should open its branches from 9 am to 7 pm and also open more counters during rush hours.

68

GENERAL BEHAVIOR OF FRONT LINE STAFF

Table 5.14

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 42 12 32 5 0 100

Percentage 42 12 32 5 9 100

Strongly agree

45 40 35 30 Percentage 25 20 15 10 5 0

Some what agree Disagree Strongly disagree Neutral

Chart No 5.14 Inference It can be seen from the above table that strongly agrees that the general behaviour of front line staff in SBT was good. 21% of the respondents some what agrees that it was good. While 32% of them disagrees and according to them it was not good, only 5% of the respondents strongly disagrees this.
69

Interpretation Only 42% of customers are satisfied with General Behavior of Front Line Staff of SBT , majority of customers are not satisfied because Front Line Staff has managed many customers at a time, Since it is main branch lot of walk-in occur during peak hours.

ACCOUNT WITH OTHER BANK

Table 5.15

Response Yes No Total

No. of respondents 36 64 100

Percentage 36 64 100

Percentage

Yes 36%

No 64%

Chart No 5.15

Interpretation From the above table it can be seen that 36% of the respondents have account with other bank, 64% of them do not have any account.

70

Table No 5.15.1

Reason Better service Modern technology Near to home Others Total

No. of respondents 28 12 48 12 100

Percentage 28 12 48 12 100

Percentage

Others 12% Better service 28% Near to home 48%

Modern technolog y 12%

Chart No 5.15.1

Inference It is clear from the above table that 28% of the respondents have account with any other bank due to better service. Because of modern technology 12% have account with other bank. While 48% of the respondents choose the same due to the reason that it is near to home. 12% of them select the same due to other reasons.

71

Interpretation Majority of customers have SBT account only, this shows that loyality of customers enjoyed by bank. This strong customer loyality is laying an effective foundation for bank.

RESPONSE OF STAFF TOWARDS CUSTOMERS ENQUIRY

Table 5.16

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 14 38 20 28 0 100

Percentage 14 38 20 28 0 100

72

Strongly agree Some what agree

40
Disagree

35 30 Percentage 25 20 15 10 5 0
Strongly disagree Neutral

Chart No 5.16 Inference It can be seen from the above table that 14% of the respondents strongly agrees that whenever they approached the staff with a question they respond properly. 38% of the respondents some what agree this, while 20% of the respondents disagree this, remaining 28% of them strongly disagree this.

Interpretation Most of customers are not satisfied with banks customers enquairy, so SBT should give proper knowledge & awareness to their staff regarding their products & services so they can give sufficient clarification for all quaries that arise from customers.

73

SUGGESTIONS FOR IMPROVING QUALITY OF SERVICES

Table 5.17

Suggestion Minimization of service time Better customer care Better communication of product detail Modern technology Total

No. of respondents 0 69 21 10 100

Percentage 0 69 21 10 100

Minimization of service time Better customer care

70 60 50 Percentage 40 30 20 10 0

Better communication of product detail Modern technology

Chart No 5.17

74

Inference It can be seen from the above table that according to 69% of the respondents better customer care is the suggestion for improving quality of services. According to 21% of the respondents better communication of product detail is the suggestion. According to 10% of them modern technology is the suggestion. None of the respondents put forward the suggestion of minimization of service time. Interpretation Most of respondents are demanded that SBT Should better its customer care in order to attain the customer with more pleasing nature, willing to help them etc.

DEPOSITS AND ADVANCES SCHEMES OF SBT

Table 5.18

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 37 25 16 11 3 100

Percentage 37 25 16 11 11 100

75

Strongly agree Some what agree

40 35 30 Percentage 25 20 15 10 5 0
Disagree Strongly disagree Neutral

Chart No 5.18 Inference The above table shows that 37% of the respondents strongly agrees that the deposits and advance schemes provided by SBT is satisfying. 25% of the respondents some what agrees to this. While 16% disagree this, 11% strongly disagree and remaining 3% neutral this. Interpretation Majority of customers are satisfied with Deposit & Advance schemes of bank. It will help the bank to establish new leads & to have new customers with reference to their existing customers.

76

MISTAKES MADE BY STAFF OF SBT

Table 5. 19

Response Strongly agree Some what agree Disagree Strongly disagree Neutral Total

No. of respondents 15 22 46 17 0 100

Percentage 15 22 46 17 0 100

Strongly agree Some what agree Disagree Strongly disagree Neutral

50 45 40 35 Percentage 30 25 20 15 10 5 0

Chart No 5.19

77

Inference As from the above table it can be seen that 15% of the respondents strongly agrees that the staff of SBT has made mistakes in their work. 22% of the respondents some what agree to this. While 46% of them disagree this. 17% of the respondents strongly disagree that the staff of SBT did not makes any mistakes in their work.

Interpretation 63% of customers are disagree the fact that SBT staff has done any mistakes while in transaction, it show the bank providing excellent service to their customers in a customized manner to keep its customer & to survive in competitive banking environment.

OPINION ABOUT WEBSITE

Table 5.20

Reason Excellent Good Satisfactory Needs improvement Total

No. of respondents 29 24 25 22 100

Percentage 29 24 25 22 100

78

Percentage

Needs improve ment 22% Excellent 29% Satisfact ory 25%

Good 24%

Chart No 5.20

Inference From the above table it can be seen that 29% of the respondent are of the opinion that the website of SBT is excellent. 24% of the respondents expressed that it is good. According to 25% of the respondents it is only satisfactory. Remaining 22% of them expressed their opinion that it needs improvement.

Interpretation As study shows that Banks website providing relevant information regarding the Banks operations & about its products, websites of SBT can be improved again by including detailed information services. of various schemes , offers & promotions related to their

79

STATISTICAL ANALYSIS

80

TESTING OF HYPOTHESIS
The statistical test, in which the test statistics follow a chi-square distribution, is called the chi-square test. Therefore chi-square test is a statistical test, which tests the

significance of difference between observed frequencies and the corresponding theoretical frequencies of a distribution, without any assumption about the distribution of the population. Chi-square test is one of the simplest and most widely used non-parametric test in statistical work. This test was developed by Prof. Karl Pearson in 1900.

H0 : H1 :

There is no significance difference between customers opinion about ATM facility of SBT. There is significance difference between customers opinion about ATM facility of SBT. O E 20 20 20 20 20 100 (O E) 2 25 100 0 16 361 (O E ) 2 E 1.25 5.00 0 0.8 18.05 25.1

Strongly agree Some what agree Disagree Strongly disagree Neutral

25 30 20 24 1 100

X2 = (O E)2 E

= 25.1

Degree of freedom, n-1 = 5 1 = 4 Significance level = 0.05 Table value = 9.488

81

Interpretation Table value is greater than calculated value so we accept null hypothesis. There is no significance difference between customers opinion about ATM facility of Bank. There is no significance difference between customers opinion about mobile There is significance difference between customers opinion about mobile banking

H0 : H1 :

banking facility.

facility. (O E ) 2 E 2.45 5 0.45 3.2 7.2 18.3

E 20 20 20 20 20 100

(O E) 2 49 100 9 64 144

Strongly agree Some what agree Disagree Strongly disagree Neutral

27 30 23 12 8 100

X2 = (O E)2 E

= 18.3

Degree of freedom, n-1 = 5 1 = 4 Significance level = 0.05 Table value = 9.488 Interpretation Table value is greater than calculated value so we accept null hypothesis. There is no significance difference between customers opinion about mobile banking facility.
82

CORRELATION CO-EFFICIENT
Co-efficient of Correlation is an algebraic methods of measuring correlation. Correlation co-efficient is a numerical value. It shows the degree or the extent of correlation between two variables. Co-efficient of correlation is purel number lying between 1 and +1. When the correlation is negative, it lies between 1 and 0. When the correlation is positive, it lies between 0 and 1. When the co-efficient correlation is zero. It indicates that there is no correlation between the variables. CORRELATION BETWEEN SERVICE QUALITY AND CUSTOMERS SATISFACTION

Service quality (x) Strongly agree Some what agree Disagree Strongly disagree Neutral 27.4 26 27.8 16.2 2.6 100

Satisfaction level (y) 26 32.6 23.2 14.2 4 100

xy 702 847.6 644.96 230.04 10.4 2435

x2 750.76 676 772.84 262.44 108.16 2570.2

y2 676 1062.76 538.24 201.64 16 2494.64

83

nxy - x y r= = n x2 - (x) 2 n y2 - (y) 2 5 2435-100 100 5 2570.2 (100)2 5 2494.64 (100)2

12175 10000 12851 10,000 12473.2 10,000

2175 53.39 49.73

2175 2655.08

0.82

Interpretation

Correlation between service quality and customer satisfaction are positively correlated. It means that service quality and customer satisfaction are move same direction.

84

CHAPTER VI

FINDINGS & SUGGESTIONS

85

6.1 FINDINGS

1.

Majority of the respondents strongly agrees that they are aware about the services

provided by SBT.

2.

Majority of SBT Customers are with an education qualification of SSLC Level

since they are underqualified so they did not aware about various schemes & products.

3.

Most of the SBT customer having good annual income.

4.

There is a pool of customers who are not satisfied with ATM facility of the

bank.There will be lot of walk in at ATMs of the bank due to which needy customers will have to wait for long time to withdraw their cash.

5.

Most of the customers are satisfied with the various loan facilities provided by

the bank.Loan facilities include educational loans,housing loans,gold loans,personal loans and automobile loans

6.

Majority of respondents agree with a fact that Forms & Brochers provided by

SBT do not create any awareness about all schemes offers and services.

7.

Many of customers are satisfied with account opening procedure in SBT

branches ,but so much percentage is dissatisfied due to huge rush during peak hours.

8.

Only few customers are known about mobile banking facilities..

9.

Many of the respondents feel problem when they deal with SBT employees

regarding with there queries..

10.

Majority of respondents are not satisfied with banking time of SBT.

86

11. staff.

Most of the respondents are not satisfied with the general behavior of front line

12.

Most of customers are satisfied with Deposit & advance scheme of bank. Customers are not satisfied with Banks customers enquaries, since it is not a face

13.

to face encounter there can be a gap between customer expectation & employer perception.

14.

Majority of customers demand that Bank has to improve its customer care for

increasing its quality of service.

15.

Most of respondents are satisfied with information given in our websites. But

certain percentage of customer are wanted that SBT Should improve its website by giving relevant information on various schemes & services.

87

6.2 SUGGESTIONS
1. Customer of SBT is well known about the services that their bank provide to them such as mobile banking ,ATM ,Internet banking etc.

2.

From the survey it is clear that majority of the customers were having good

annual income. It actually ensures the security of banks operations. From this it can be identified that the lending policy of the bank is quite effective. Most of the SBT customers are underqualified, so bank

3.

can

conduct a

Customer Awareness Programme to help them to understand the various products & scheme.

From the survey it is clear that accessibility and service quality are two

important factors, which are considered while opening an account with a bank. So these factors should be given due importance while designing the service levels of the bank. SBT should also ensure to provide excellent service quality to their customer.

5 In order to improve its services, modern technology should be implemented, excellent customer care should be provided and also it should reduce its service time.

There is so much percentage of customer are dissatisfied with ATM service this occur

in case of customer require higher amount withdrawal in single day through ATM.

Bank try to extend loan facility to the low income group people since the bank is

consatratin Only on high income group..

Forms & Brochers of SBT does not include information regarding which type of

schemes that are best for different segments of customers.

88

Training should be given to employeesof SBT regarding services like mobile

banking & internet banking. 10 The Gap between customer expectation & emplooyee perception is to be reduced

so as to maintain a smooth transaction between staffs & customers.

11

At a time Front line staff have to manage many customers. Since it is a service

organization service quality is measured and assessed when customer come in direct contact with employees.SBT should take care of increasing service quality through proper customer service.

12

Due to emergence & tough competition from private bank SBT can concentrate

on opening of account by visiting the customer rather than making them to come in bank. This will increase customer loyality towards the bank.

13

For common doubts & queries suitable recordings can be made . queries &

recommendations can be uploaded in website of SBT. As study shows that Banks website providing relevant information regarding the

14

Banks operations & about its products.website of SBT can be improved again by including detailed information of schemes, offers & promotions. Bank should provide Customers feed back option while they use internet banking
.

89

CHAPTERVII

CONCLUSION

90

7.1 CONCLUSION

On the growing influence of globalization on the Indian banking industry, a number of global banks are coming into the Indian banking industry. In such a dynamic environment the banks need to be more quality conscious since the products offered are almost similar by all the banks in the industry. The Bank needs to take serious efforts to make itself competitive and stable in the dynamic market situation by focusing on the service quality aspects.

91

ABBREVIATIONS

SBT State Bank of Travancore CBS Centralized Banking Solution ALP Adult Learning Principle GIR General Index Register RBI- Reserve Bank of India PAN- Permanent Account Number MAB- Minimum Average Balance KCC- Kisan Credit Card RTGS- Real Time Gross Settlement EFT Electronic Fund Transfer NRE A/Cs- Non Resident External Rupee Accounts IBT- Internet Base Trading GBP- Great Britain Pound

92

BIBLIOGRAPHY Books:
1) Christopher .H. Lovelock (2004), Service Marketing, Pearson Education, Fifth Annual Edition 2) ValerieZoithanal, Mary Jo Bitner (2004), Service Marketing, Mcgraw Hill Intl. edition, Fourth Edition 3) Dr. Rao, Service Management( 2002), Pearson Education Asia, Singapore
4) Helen Woodruffe (2004), Service Marketing, Macmillan india Publishing House Pvt Ltd

5) PhilipKotler (2006) ,Marketing management, 10th edition Pearsons Education, New Delh,. . 6) Kothari. C.R.(2005), Research Methodology Methods and Techniques, 4th edition, New Age International Publishers, New Delhi

Journals:
1) Company brochures & manuals

Websites: www.state bank of travancore .com

www.google.com

93

QUESTIONNAIRE

A STUDY ON QUALITY OF CUSTOMER SERVICE IN STATE BANK OF TRAVANCORE

PERSONAL DETAILS 1.NAME : 2.AGE : 3.SEX : 4.OCCUPATION : 5. INCOME : 6. EDUCATION : 7. Which type of account maintained for you a.Savings bank account b.Current accounts c.Recurring deposits d.cash credit e.term loan f.Housing loan g.car loan 8.I am totally aware about the service provideded by SBT
94

a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral 9.I feel that the response of the staff towards the customers when they approach for loan s is fair a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

10.I find that the ATM facility provided by the bank is satisfactory. a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

11.I find that the forms and brochers provided by the SBT make me aware about all the schemes and services. a. Strongly agree
95

b.some what agree c.Disagree d.Strongly disagree e.Neutral

12.I feel that the time taken by SBT to open an account is satisfactory. a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

13.Iam totally aware about the use of mobile banking facility. a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

14.Ifeel that the SBT staff has sufficient knowledge about their product a. Strongly agree b.some what agree c.Disagree
96

d.Strongly disagree e.Neutral

15. I am satisfied with the banking time of SBT . a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

16.Ifeel that the general behavior of front-line staff in SBT is good . a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

17.Do you have account with other banks apart from SBT a.Yes b.No. 18.Ifeel that the response of the staff towards customers enquire is reasonable.
97

a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

19. factors that improve the quality of services of SBT. a.Minimization of service time b.Better customer care c.Better communication of product detail d.Modern techonology 20. I feel that the deposits and advances schemes provided by SBT is satisfactory. a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

21. I feel that mistakes are made by the staff of SBT in their work.
98

a. Strongly agree b.some what agree c.Disagree d.Strongly disagree e.Neutral

22.Your opinion about the website of SBT. a.Excellent b.Good. c.Satisfactory d.Needs improvement

99

APPENDIX

100

Project Report

Submitted to the University of Kerala in partial fulfillment of requirements for the award of the Degree of Master of Commerce

101