Oriental Bank of Commerce India was established in the year 1943 on 19th February in Lahore. After division, Oriental Bank of Commerce moved its Registered Office from Lahore to Amritsar giving every rupee to its departing customers.
Oriental Bank of Commerce was nationalized on 15th April in 1980. Then OBC bank had 307 branches with Rs. 282.61 crores as deposits and as advance Rs. 152.69.
The National Institute of Bank Management (NIBM), rated OBC Bank as "Customer Friendly" Bank.
Oriental Commercial Bank Limited is licensed by the Central Bank of Kenya as a commercial Bank to bring out banking activities under Banking Act Chapter 488 of the Kenyan laws.
The Bank started its’ tasks in the year 2002, with new investments and Board of Directors, by taking over the assets and liabilities of the previous Delphis Bank, from Central Bank of Kenya. It is a medium sized Bank and one of the financially healthy Banks in, Kenya in terms of shareholders fund and liquidity.
Oriental Commercial Bank Ltd has its’ Head Office at Finance House, Koinange Street- Nairobi. Currently the Bank has a branch linkage of four branches in major towns namely
1.Nairobi.
2. Nakuru.
3. Eldoret
4 Kitale.
The Bank is managed by a professional team of management who are ably supervised by a Board of Directors comprising of eminent personalities of society bearing high level of reliability and professional skills in their respective areas of operations. We are loyal to deliver quality banking Service to our customers, however by firmly adhering to the Regulatory Strategies as applicable within Kenya and, internationally. Our importance always remains on sensibly following ‘Know your Customers’ and ‘Anti Money Laundering’ Strategies.
Corporate banking, Personal banking, Industrial finance, Agricultural finance, Financing of trade, International banking
Oriental Bank Commerce has been graded 38th in the middle of top 500 companies by The Economic Times. OBC has earned 9th position among top 50 trusted brands in India.
Oriental Bank Commerce India maintains association with more than 200 chief international banks worldwide. OBC India has Rupee Drawing Arrangements with 15 exchange companies in UAE and 1 in Singapore.
MANAGEMENT PROFILE
Name Designation
Sh.T.Y. Prabhu Chairman and MD
Sh. H Ratnakara Hegde Executive Director
Sh. S.C Sinha Executive Director
V Vijay Sai Reddy Director
R S Maharishi Director
U K Khaitan Director
K B R Naidu Director
Sumita Dawra Director
Sh. S.K Newley Director
Vijay Jagirdar Director
T Valliappan Director
C K Sabharwal Director
SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors)
The commercial banking structure in India consists of:
‘ Scheduled Commercial Banks in India
‘ Unscheduled Banks in India
Scheduled Banks in India start those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn contains only those banks in this schedule which indulge the criteria placed down vide section 42 (6) (a) of the Act.
As on 30th June, 1999, there were 300 scheduled banks in India having a whole network of 64,918 branches. The scheduled commercial banks in India involve of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.
"Scheduled banks in India" means the State Bank of India created under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a matching new bank created under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank comprised in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank".
"Non-scheduled bank in India" means a banking company as well-defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".
Below are the Scheduled Banks in India (Public Sector):
‘ State Bank of India
‘ State Bank of Bikaner and Jaipur
‘ State Bank of Hyderabad
‘ State Bank of Indore
‘ State Bank of Mysore
‘ State Bank of Saurashtra
‘ State Bank of Travancore
‘ Andhra Bank
‘ Allahabad Bank
‘ Bank of Baroda
‘ Bank of India
‘ Bank of Maharashtra
‘ Canara Bank
‘ Central Bank of India
‘ Corporation Bank
‘ Dena Bank
‘ Indian Overseas Bank
‘ Indian Bank
‘ Oriental Bank of Commerce
‘ Punjab National Bank
‘ Punjab and Sind Bank
‘ Syndicate Bank
‘ Union Bank of India
‘ United Bank of India
‘ UCO Bank
‘ Vijaya Bank
Below are the Scheduled Banks in India (Private Sector):
‘ ING Vysya Bank Ltd
‘ Axis Bank Ltd
‘ Indusind Bank Ltd
‘ ICICI Bank Ltd
‘ South Indian Bank
‘ HDFC Bank Ltd
‘ Centurion Bank Ltd
‘ Bank of Punjab Ltd
‘ IDBI Bank Ltd
‘ YES BANK
Below are the Scheduled Foreign Banks in India:
‘ American Express Bank Ltd.
‘ ANZ Gridlays Bank Plc.
‘ Bank of America NT & SA
‘ Bank of Tokyo Ltd.
‘ Banquc Nationale de Paris
‘ Barclays Bank Plc
‘ Citi Bank N.C.
‘ Deutsche Bank A.G.
‘ Hongkong and Shanghai Banking Corporation
‘ Standard Chartered Bank.
‘ The Chase Manhattan Bank Ltd.
‘ Dresdner Bank AG.
COMPANY’S MISSION AND VISION
Vision & Mission Statement:-
Our Vision:-To be sound in all India, customer centric, efficient retail bank with up-to-date size, technology and human capital; attempting to improve lives through all pieces of society; and devoted to keeping the highest standards of corporate governance.
Our Mission: – To deliver the premium banking services by promoting human capital and infusing advanced technology, thus attaining total customer satisfaction; and being calculated as the ‘Best Bank’ in the Industry on all efficacy parameters. To improve shareholders prosperity by ensuring sound growth of business and make valued contributions to national economic growth.
VALUES AND ETHICS
‘ Bonding and Integrity
‘ Ethical conduct
‘ Periodic disclosure
‘ Confidentiality and fair dealing
‘ Compliance with rules and regulations
PRODUCTS AND SERVICES
Saving Accounts:-
How to Open an Account?
Download or get Account Opening Form from the near branch, fill it up correctly and deposit the same with the branch of your choice along with the following:-
1. Full proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ Electricity Bill/ Telephone Bill/ Identity Card allotted by any fabled institution. REAL MCCOY be shown only at the time of inspection of papers)/ Business address.
2. Deliver 2 photographs of all the prospective account owners(s).
3. Introduction about you from a person known to the bank sooner by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.
Current Account ‘
How to Open an Account?
Download or find Account Opening Form from the adjacent branch, fill it up correctly and submit the same with the branch of your choice along with the following:-
1. full proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ Electricity Bill/ Telephone Bill/ Identity Card supplied by any reputed institution. REAL MCCOY be shown only at the time of enquiry of papers)/ Business address.
2. Deliver 2 photos of all the respective account holder(s).
3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has path properly at least for the past six months.
4. Deliver undertakings/ documents/ declarations as appropriate. Please refer Current Account opening form for details.
5. Furnish PAN or declaration of Form No.60 / 61 as the case may be.
Scheme Credit Schemes – Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards Social Banking – Mahila Udyam Nidhi Scheme, Krishi Card, OBC Farmers Welfare Trust Corporate Banking – Gold Card scheme for exporters, EXIM finance Business Sector – OBC Karigar credit card, OBC Kushal Udhami, OBC Pragati Udhami, OBC Vikas Udhami
Flexi Fixed Deposit Scheme:-
We are happy to notify that Flexi Deposit Scheme for the use of our depositor customers has been accepted by the Board on 18th October 2006. This scheme had come into operation w.e.f. 1st November 2006.
PRODUCT & BENEFIT:
Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method.
However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance.
LOANS
Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country:
‘ Personal Loan
‘ Car Loan or Auto Loan
‘ Loan against Shares
‘ Home Loan
‘ Education Loan or Student Loan
In Personal Loan, one can get a authorized loan amount between Rs 25,000 to 10, 00,000 depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the top banks which deals in Personal Loan.
Almost all the banks have flown into the market of car loan which is also sometimes termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are authorized to the extent of 85% upon the ex-showroom price of the car with some easy paper works and a slight amount of processing fee.
Loan against shares is very easy to get because liquid guarantee is involved in it.
Home loan is the latest craze in the banking sector with the development of the infrastructure. Now publics are moving to township outside the city. More number of townships is upcoming to meet the demand of ‘house for all’. The RBI has also liberalized the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading.
The educational loan, rather to be termed as student loan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.
MONEY TRANSFER
Beside lending and depositing money, banks also carry money from one place on the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks usually issue Demand Drafts, Banker’s Cheques, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders.
It has been only a couple of years that banks have jumped into the money transfer businesses in India. The international fund transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through 2014.
Chapter I: Introduction of the Topic
CUSTOMERS SATISFACTION
Customer satisfaction refers to the degree to which customers are happy with the products and services delivered by a business.
Customer satisfaction levels can be measured using survey techniques and questionnaires
DEFINITIONS:
Definition 1: Customer satisfaction is equal to making sure that product and service performance runs into customer expectations.
Definition 2: Customer satisfaction is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation.
Definition 3: Customer satisfaction occurs when acquisition of products and/or services delivers a minimum negative departure from expectations when compared with other acquisitions.
Gaining high degree of customer satisfaction is very significant to a business because satisfaction customers are most likely to be faithful and to make repeat orders and to use a wide range of services offered by a business
There are many factors which lead in high degree of customer satisfaction including Products and services which are customer focused and hence deliver high levels of value for money.
What is clear about customer satisfaction is that customers are most likely to escalate the goods and services that they buy if they are prepared to feel special. This occurs when they feel that the products and services that they buy have been specially shaped for them or for people like them.
BENEFITS OF CUSTOMER SATISFACTION
The importance of customer satisfaction and support is gradually becoming a vigorous business issue as organization understand the benefits of Customer Relationship Management (CRM) for providing effective customer service. Professionals working within customer-focused business or those running call centers or help desks, need to keep up-to-date about the latest customer satisfaction techniques for running a valuable customer service task. From small customer service departments to large call centers, the significance of developing a valued relationship with customers using CRM is vital to support customer and long-term business growth.
What Do Customers Want?
Before we start to generate tools to measure the level of satisfaction, it is important to develop a clear understanding of what exactly the customer wants. We need to know what our customers assume from the products and services we deliver.
Customer expectations have two types ‘
‘ Expressed
‘ Implied
Expressed Customer Expectations are those necessities that are written down on the contract and settled upon by both parties for example, product specifications and delivery requirements. Supplier’s act against these requirements is most of the items directly measurable.
Implied Customer Expectations are not written or spoken but are the ones the customer would ‘expect’ the supplier to meet nevertheless. For example, a customer would imagine the service representative who calls on him to be knowledgeable and competent to solve a problem on the spot.
There are many motives why customer expectations are possible to change overtime. Process improvements, arrival of new technology, changes in customer’s urgencies, enhanced quality of service delivered by competitors are just a few examples.
The customer is always correct. Supplier’s job is to deliver the customer what he/she wants, when he/she wants it. Customer satisfaction is customer’s perception that a supplier has met or exceeded their expectations.
WHAT CONSTITUTES SATISFACTION?
We cannot generate customer satisfaction just by assembling customer’s requirements fully because these have to be met in any case. However failing short is certain to create dissatisfaction
Major Characteristics of customer satisfaction in banking industry can be summarized as:
‘ Product quality
‘ Premium Outflow
‘ Return on Investment
‘ Services
‘ Responsiveness and ability to resolve complaints and reject reports.
‘ Overall communication, accessibility and attitude.
WHAT ARE THE TOOLS?
Customer hopes can be judged using various methods such as:
‘ Periodic contract reviews
‘ Market research
‘ Telephonic interviews
‘ Personal visits
‘ Warranty records
‘ Informal discussions
‘ Satisfaction surveys
Depending upon the customer vile and accessible resources, we can choose a method that is most effective in calculating the customer’s perceptions. The purpose of the exercise is to classify priorities for improvements. We must grow a method or combination of methods that helps to continually improve service.
CUSTOMER SATISFACTION SURVEYS
Formal survey has arisen as by far the best method of occasionally the customer satisfaction. The survey is not marketing tools but an information gaining tool. Enough homework needs to be done before embarking on the actual survey. This includes:
‘ Defining Objectives of the Survey
‘ Design Survey approach
‘ Develop questionnaires and forms
‘ Administer Survey (Email, Telephone or Post)
‘ Method of compiling data and analyzing the findings
‘ Format of the report to present the findings
There is no opinion in asking irrelevant questions on a customer satisfaction questionnaire. The basic need is to find out what we are doing right or wrong. Where is the possibility for enhancement, where do we stand vis-??-vis other suppliers. How we can assist the customer better?
A customer satisfaction measurement survey should at least identify the following objectives:
‘ Importance to customers (Customers priorities)
‘ Customer’s perception of supplier’s performance
‘ Your performance relative to customer’s priorities.
‘ Priorities for improvement
Survey forms should be easy to fill out with least amount of time and pains on customer’s part. They should be designed to vigorously encourage the customer to complete the questions. Yet they must bring accurate data that should also be sufficiently reliable for management decision making. This can be attained by including objective type questions where customer has to ‘rate’ on scale of say 1 to 10. For repeated surveys, you could carry the rating that was previously conferred by the customer. This works like a reference point for the customer.
Space should always be delivered for the customers own thoughts this allows them to state any additional requirements or report any shortcomings that are not covered by the objective questions.
Normally, we deal numerous personnel at various levels in the customer’s organization’the buyer, user, receiving inspector, finance and purchase person etc. surveying a quantity of plaintiffs for each customer gives a whole perspective of customer satisfaction. It may be essential to device a different questionnaire for each of them.
Respondents must be supported a way to express the importance they attach to various study parameters. Respondents should be asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each condition. This gives a better sign of relative importance of each parameter towards overall customer satisfaction and makes it easier for suppliers to prioritize their action plans by likening the performance rating (scores) with position rating (weighing).
CONSUMER RESEARCH IN DIFFERENT DISCIPLINES
An extensive body of literature exists on consumption, consumer behavior and consumer judgment making process.
Most of the consumer research focused on adopter categories, habits, attitudes and intentions rather than on actually calculating the satisfaction level with the service.
CONSUMER SATISFACTION PROCESS
The paramount goal of marketing is to understand the customer and to influence buying behavior.
The process can be depicted as follows:-
‘ Need recognition- realization of the difference between the desired and the current situation that serves as a trigger for entire process.
‘ Search for information.
‘ Pre purchase alternative evaluation.
‘ Consumption(utilization of the procured option)
‘ Post purchase alternative re-evaluation.
‘ Divestment(disposal of the unconsumed product and it’s remnants)
WAYS FOR MAINTAINING RELATIONS WITH THE CUSTOMERS ADOPTED BY OBC
The ability of the banking industry to attain the socio-economic purposes and in the process bringing more and more customers into its fold will eventually depend on the satisfaction of the customers. We have a strong belief that a satisfied customer is the foremost factor in developing our business.
A need was felt by us at Oriental Bank of Commerce that in order to become more customers friendly the Bank should come out with Charter of its services for the customers. Citizens’ Charter concept was considered as a base instrument to fill this need and accordingly this document was equipped. This document was made in consultation with the users and highlights our Bank’s commitments towards the customer satisfaction, thus ensuring accountability and accountability amongst its officers and staff. This Code for customers not only explains our commitment and responsibilities along with the redressed methods but also specifies the obligation on the part of customers for healthy practices in Customer-Banker relationships.
This is not a legal document generating rights and obligations. The Code has been prepared to stimulate fair banking practices and to give info in respect of various activities relating to customer service.
We wish to admit the initiative taken by the Ministry of Finance, Government of India and Ministry of Administrative Reforms and Public Grievances for encouraging us to bring out this Code.
Chapter II: Review of Literature
Levesque, T and McDougall, G.H.G. (1996),, Determinants of Customer Satifaction in retail Banking, Internations Journal of Bank Marketing, Vol.14, No.3, pp. 12-20.
Malhotra, M.,and Arora, S. (1999). The study investigates that level of customer satisfaction in the public sector banks and th3e private, with the purpose of helping bank managements to formulate marketing strategies to attract customers towards them. The exploratory study was done by collecting data from the cities of Amritsar, Ludhiana and Chandigarh. Twenty attributes were taken into consideration for measuring the level of satisfaction/dissatisfaction. The study found that there are six factors, in order of their importance are routine operation factor, price factor, situation factor, environmental factors, technology factor and interactive factor. Similarly, for customers of private sector banks, the factors found to be important are staff factor, routine operation factor, service factor, environmental factors, technology factor, interactive factor and promotional factor. Moreover, factor wise average scores of these factors reveal that there is significant difference between the satisfaction level of the customers of public and the private sector banks. The latter are found to be more satisfied. A few strategies suggested by the authors to improve service quality are proper training of the staff, conducting market surveys periodically, personalizing the service, avoiding long queues, having well lit, ventilated and clean surroundings.
Malhotra, M., and Arora, S. (1999), Customer Satisfaction ‘ A Comapritive Analysis of Public and Private Sector banks, Abhigyan, Vol.17, No.3, pp. 19-30.
Armstrong Robert W., and Seng T.B. (2000), the study extends the current understanding of customer satisfaction at the business ‘to ‘ business level in the Asian banking industry. It incorporates guanxi (Cuhinese business relationship), relationship marketing and the disconfirmation paradigm. The research highlights the importance of relational constructs and disconfirmation paradigm in the influencing customer satisfaction at the business ‘ to ‘ business level in the Singapore banking industry. At the business ‘ to ‘ business level in the Asian context, the disconfirmation papdigm is still the predominant paradigm influencing the customer satisfaction process. Relationship marketing and guanxi are significant in the comprehensive model of corporate customer satisfaction. Relationship marketing is found to have both a direct and an indirect impact through disconfirmation) on corporate customer satisfaction. Guanxi is found to exert an indirect impact on satisfaction as opposed to the initial hypothesized direct impact on satisfaction.
Armstrong Robert W., and Seng T.B. (2000), ‘Corporate ‘ Customer Satisfaction in the marketing in the Banking Industry’.
Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), the paper investigates the behavioral consequences of customer satisfaction in the banking industry. The authors examine the impact of customer satisfaction on customer’s behavioral responses. The findings indicate that when customers assessed customer satisfaction to be high, they either decided to stay with the existing service provider or subdue their negative behavioral intensions. Customer satisfaction is also found to have strong positive association with word-of mouth communication. The research results confirm prior research and indicate that the customer satisfaction dimensions are not industry specific, but also country specific. The authors suggest developing strategies to enhance behavioral responses to customer satisfaction and prohibit negative ones. Such strategies can include meeting customers desired service levels, preventing service problems from occurring, dealing effectively with dissatisfied customers, solving service problems effectively when they occur and dealing with customer complaints positively.
Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), ‘Behavioral Responses ti Custome Satisfaction: An Empirical Study’, Eeuropean Journal of Marketing, Vol. 35, No. 5/6, pp. 687 ‘ 707.
Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) adopt a different approach and view customer satisfaction as a multi-dimensional construct just as service quality, but argues that customer satisfaction should be operationalized along the same factors (and the corresponding items) on which service quality is operationalized. Based on this approach, the link between service quality and customer satisfaction has been investigated. The results indicate that the two constructs are indeed independent but are closely related, implying that an increase in one is likely to lead to an increase in another.
Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) Customer perceptions of service quality in the banking sector of a developing economy: a critical analysis, International Journal of Bank Marketing, Vol. 21 Iss: 5, pp.233 – 242
Singh S. (2004) empirically studies the appraisal of customer services of PSBs in terms of level of customer service and satisfaction determined by brand, location and design, variety of services, rates and changes, systems and procedures etc. The study concludes that staff behavior is very polite and services are provided even in the late hours. Study reveals that 62 percent respondents answer that immediate credit is not given for outstation Cheques, 93 percent feel that they do not hold periodical meetings and services are not provided according to the given schedules. It concludes that services of private sector banks are better than the services of public sector banks.
Singh S. (2004), ‘An Appraisal of Customer Services of Public Sector Banks, IBA Bulletin, Vol XXVI, No. 8, (aug.), pp. 33-38.
Saha P. and Zhao Y. (2005) analyze the relationship between service quality and customer satisfaction in internet banking and five service quality dimensions are selected. A qualitative research approach is used to get a better understanding of this issue. A small quantitative survey has been also conducted to support the results obtained from the qualitative study. Nine service quality dimensions i.e. efficiency, reliability, responsiveness, fulfillment, privacy, communication, personalization, technology update and logistic/technical support are identified in this study. The quality performance of all the nine dimensions is shown to have a strong impact on customer satisfaction.
Saha P. and Zhao Y. (2005), Saha P, Zhao Y (2005). Relationship between online service quality and customer satisfaction, a study in Internet banking. Retrieved on [April, 2009] from World Wide Web:http://epubl.ltu.se/1404- 5508/2005/083/LTU-SHU-EX-05083 SE.pdfhttp://epubl.ltu.se/1404- 5508/2005/083/LTU-SHU-EX-05083-SE.
Consumer Voice (2006) conducted a survey to study the customer satisfaction level of 3100 serving banks, credit and debit card holders, who are covered during the period September 2005 to November 2005. The survey is conducted in eight cities, where the maximum numbers of respondents come from SBI (17.10 pc) followed by ICICI Bank (8.80 pc) and the maximum surveyed customers belong to the age group of 26-34 years. The study reveals that Citibank has the most dissatisfied customers and most of the customers are shifting from public sector banks to private sector banks, mainly due to convenient availability and due to restricted functioning hours of public sector banks. Overall, only 6 pc of the respondents use internet banking and most of them (16.3 pc) are registered with HSBC followed by ICICI Bank (12.6 pc). Overall, the study concludes that Standard Chartered Bank, Vijaya Bank and Syndicate Bank steal the march, the little known the United Western Bank performs impressively and Citibank is the most over-rated bank.
Mishra J.K. and Jain M. (2007) study various dimensions of customer satisfaction in nationalized and private sector banks. Two-stage factor analysis is computed to arrive at the dimensions of customer satisfaction. The study analyzes ten factors and five dimensions of customer satisfaction for nationalized and private sector banks respectively. The study concludes that satisfaction of the customers is an invaluable asset for the modern organizations, providing unmatched competitive edge, it helps in building long term relationship as well as brand equity. The best approach to customer retention is to deliver high level of customer satisfaction that result in, strong customer loyalty.
Mishra J.K. and Jain M. (2006-07). ‘Constituent Dimensions of Customer Satisfaction: A Study of Nationalized and Private Banks ‘. Prajnan. 35(4). 390-398.
Vimi Jham & Kaleem Mohd Khan, (2008), conducted a study on Customer Satisfaction in the Indian Banking Sector, among five Indian banks, aimed at identifying customer satisfaction variables which lead to relationship building, and developing a conceptual framework of relationship marketing practices in Indian banks by capturing the perspectives of customers with respect to their satisfaction with various services. It also sought to identify whether demographics have a role to play in customer satisfaction.
The three relationship dimensions, namely, traditional services, multi-channel banking and internal marketing, which lead to customer satisfaction, were identified through factor analysis. A repeated measure of ANOVA was run on the relationship dimensions to assess significant difference in the level of satisfaction of the customer. A perceptual map was created using the factor scores of each of the five banks which helped identify how each bank was positioned in the customers’ minds.
Reporting on the different satisfaction levels of the customers, the findings suggest that while private banks have been able to attract the younger customers with higher educational levels, who are comfortable with multi-channel banking, the customers of the national bank are older and more satisfied with the traditional facilities. The results from this study could provide managerial lessons on assessment of strengths and improvement of services and in evolving a research strategy that will benefit the management of banks.
Vimi Jham & Kaleem Mohd Khan, (2008), Customer Satisfaction in the Indian Banking Sector ‘A Study, IIMB Management Review, Volume 20, Number 1.
Puja Khatri & Yukti Ahuja (2008) have analysed customer satisfaction in public and private sector banks and revealed that the Indian banking sector has witnessed heightened competition with so many banks coming up with all their potential and using their global strength to their advantage in order to establish themselves in the market. Private Banks seem to have satisfied its customers with good services and they have been successful in retaining its customers by providing better facilities than Public sector Banks. But, still Private Banks need to go a long way to become customer’s first preference. In an economy of innovative technologies and changing markets, each and every service quality variable has become important. New financial products and services have to be continuously introduced in order to stay competent. Success mantra could be customer centric orientation, where the organization builds long term strategic relationships with its customers and Private sector Banks have been successful in achieving such relationship with customers however public sector banks have to improve in this area. Private Banks need to concentrate more on their credit facilities and insurance services since customers do not have a very good opinion about these facilities being offered by Private Banks. Public sector banks enjoy the trust of the customers, which they have been leveraging to stay in the race however they need to improve their service quality by improving their physical facility, infrastructure and giving proper soft skill trainings to their employees. The efforts have to be made in the direction of enhancing the retail banking experience. That is why a well performed service encounter may even overcome the negative impression caused by poor technical quality as well as generate positive word-of-mouth, particularly if customers witness that employees have given their best in order to satisfy them during a contingency. Employees are part of the customer service process, which is the key to success for any bank. It is these encounters with customers during a service that are the most important determinants of overall customer satisfaction, and a customer’s experience with the service will be defined by the brief experience with the firm’s personnel and the firm’s systems. Any laxity at the end of the employees can lead to customer defect.
Puja Khatri & Yukti Ahuja (2008) , Study of customer satisfaction in public sector and private sector banks of India, Interantional Journal of Engineering and Management Sciences (I.J.E.M.S.), VOL. 1(1):, pp. 42-51.
R.K. Uppal (2009) studied customer service and customer satisfaction in Indian commercial banks and concluded that in the emerging competitive environment and IT era with little or no distinction in the product offering, it is speed of rendering service that sets apart one bank from another. Prompt service is equated with quality service. Time is a major factor which affects the quality & reputation of the banks. E-banks are providing quick service & that is why they are becoming more popular. Hence, it is very essential that all bank groups should put in place the right kind of systems to further cut down on service time and render instantaneous service to the customers. Only such banks will satisfy the customers’ expectations and tend to survive in the rat race for market shares in the days to come.
Chapter III: Research Methodology
STATEMENT OF THE PROBLEM
This Study will help us to understand the consumer’s satisfaction about banking services and products. This study will help banks to understand, how a consumer selects, organizes and interprets the Quality of service and product offered by banks.
The market is more aware and realistic about investment and returns from financial products. In this background this study tries to analyze the customer satisfaction towards banking services in general and Oriental Bank of Commerce in particular.
NEED FOR THE STUDY
‘ The deeper the company understands of consumer’s needs and satisfaction, the earlier the product or service is introduced ahead of competition, the greater the expected contribution margin. Hence the study is very important.
‘ This study will help companies to customize the service and product, according to the consumer’s need.
‘ This study will also help the companies to understand the experience and expectations of the existing customers.
SCOPE OF THE STUDY
This study is limited to the consumers with in New Delhi city. The study will be able to reveal the preferences, needs, satisfaction of the customers regarding the banking services, It also help banks to know whether the existing products or services they are offering are really satisfying the customer’s needs.
OBJECTIVE OF THE STUDY: – To have an insight into the ‘customer satisfaction at OBC bank’.
REASERCH METHODOLOGY
A descriptive study tries to discover answers to the questions who, what, when, where, and, sometimes, how. The researcher attempts to describe or define a subject, often by creating a profile of a group of problems, people, or events.
Such studies may involve the collection of data and the creation of a distribution of the number of times the researcher observes a single event or characteristic (the research variable), or they may involve relating the interaction of two or more variables. Organizations that maintain databases of their employees, customers, and suppliers already have significant data to conduct descriptive studies using internal information. Yet many firms that have such data files do not mine them regularly for the decision-making insight they might deliver. This descriptive study is popular in business research because of its versatility across disciplines. In for-profit, not-for-profit and government organizations, descriptive investigations have a broad appeal to the administrator and policy analyst for planning, monitoring, and evaluating. In this context, how questions address issues such as quantity, cost, efficiency, effectiveness, and adequacy.
Descriptive studies may or may not have the potential for drawing powerful inferences. A descriptive study, however, does not explain why an event has occurred or why the variables interact the way they do.
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present study, 50 respondents were selected at random. All the 50 respondents were the customers of different branches of Oriental Bank of Commerce.
SAMPLING METHOD
A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A convenience sampling technique was used to collect data from the respondents.
METHOD OF DATA COLLECTION
To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias.
Further, coding and analysis was done for each question’s response to reach into findings, suggestions and finally to the conclusion about the topic.
TYPES OF DATA
Every decision poses unique needs for information, and relevant strategies can be developed based on the information gathered through research. Research is the systematic objective and exhaustive search for and study of facts relevant to the problem
Research design means the framework of study that leads to the collection and analysis of data. It is a conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.
PRIMARY DATA
Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose.
A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.
LIMITATIONS OF THE STUDY
Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances that some information might have been left out, however due care is taken to include all the relevant information needed.
Sample size:
Due to time constraints the sample size was relatively small and would definitely have been more representative if I had collected information from more respondents.
Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.
It was difficult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.
Chapter IV: Data Analysis and Discussions
Chapter V: Findings, Results, Conclusions, Suggestions
Findings, Results, Conclusions from the survey and regular visits.
1. Through the study I found that obc bank holds more accounts of 5-30 age groups more as compared to other age groups.
2. It also has more male account holders as compared to females.
3. This bank has more accounts running since last five years and has a very little accounts running from last 20 years.
4. Maximum people are satisfied with the services if obc bank and a small number of people are there who are not satisfied with the services if bank.
5. It is also found that there is more number of people who hold account with other banks also.
6. Maximum people face the problem of getting statement from the bank, and minimum people face problem of clearing, there are people who face problems of staff behavior, ATM and other.
7. 54% of people say that they get their task completed on time.
8. 32% respondents said that staff behavior is satisfactory but 18% people also said that staff behavior is not good according to their expectations.
9. 58% respondents are satisfied with the services being provided in the bank but 42% people are also there who say that services are not appropriate according to them.
10. It is also found that 62% people get their problems solved and still 38% says that problems are not properly heard and solved.
Three things customers should appreciate in bank:-
In Public sector banks, honest, disciplined and trust worthy employees, reasonable interest rates, high employee understanding levels are the three things that were highlighted.
In Foreign banks, trained employees, better bank performance and simplified procedure are the three things that needs appreciation according to bankers
In Private Banks, friendly employees, reasonable interest rates and simple loan procedure are the three top things that need appreciation by customers.