Research Work New - PRN
Research Work New - PRN
Research Work New - PRN
BY
MANSI MOUNDEKAR
ROLL NO: 73
UNDER THE GUIDANCE OF PROF NITIN PAGI
SUPERVISED BY:
PROF MAKRAND MAHAPADI
DECLARATION
I the undersigned Miss MANSI MOUNDEKAR here by, declare that the work embodied
in this project work titled “A study on consumer preferences on different types of loans”
forms my own contribution to the research work carried out under the guidance of (Ms.)
NITINPAGI SIR M, COM, CS, NET, is a result of my own research work and has not been
previouslysubmitted to any other University for any other Degree/ Diploma to this or any
other University.
Wherever reference has been made to previous works of others, it has been clearly indicated
assuch and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presentedin accordance with academic rules and ethical conduct.
Certified by
To list who all have helped me is difficult because they are so numerous and the depth is
soenormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
inthe completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
thisproject.
I would like to thank my principal, Dr. (Mrs.) SUCHITRA NAIK MA’AM for
providing thenecessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator (MS) NITIN PAGI SIR, for his moral
supportand guidance.
I would also like to express my sincere gratitude towards my project guide Prof
MAKRAND MAHAPADI SIR whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books
and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
thecompletion of the project especially my Parents and Peers who supported me throughout
my project.
A STUDY ON CONSUMER PREFERENCE ON
DIFFERENT TYPES OF LOANS
TABLE OF CONTENTS
Title 4
Table of content 5
List of figures 6
List of tables 6
Executive summary 8
1.1 Introduction 10
1.2 Brief history on loans in India 13
2. Literature review 14
3. Need and objective of the study 20
3.1 need of the study 21
3.2 objective of the study 22
4. Research design and methodology 23
4.1 data collection 25
5. Brief study on consumer preference on different 26
types of loans
5.1 what are different types of loans 27
5.2 Current scenario of banking industry 28
List of tables
8.2 Gender 45
8.5 Occupation 49
EXECUTIVE SUMMARY
In 1969 the Indian government nationalized all the major banks that it did not already
own and these have remained under government ownership. They are run under a
structure known as 'profit-making public sector undertaking' (PSU) and are allowed to
compete and operate as commercial banks. The Indian banking sector is made up of
four types of banks, as well as the PSUs and the state banks, they have been joined
since the 1990s by new private commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India
expanding its branch network and through the National Bank for Agriculture and
Rural Development with things like microfinance. Indian Banking Industry currently
employees 1,175,149 employees and has a total of 109,811 branches in India and 171
branches abroad and manages an aggregate deposit of 67504.54 billion (US$1.1
trillion or €860 billion) and bank credit of 52604.59 billion (US$840 billion or €670
billion). The net profit of the banks operating in India was 1027.51 billion (US$16
billion or €13 billion) against a turnover of 9148.59 billion (US$150 billion or €120
billion) for the fiscal year 2012-13.
2.1 LITERATURE REVIEW
Private sector Banks seem to have satisfied its customers with good services and they
have been successful in retaining their 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
and 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 also 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. Geiger's (1975) carried out study to
establish the needs of customers. Social status of the bank's customers and the
perception that the customers had of banks were studied along with customers
judgment of the range of services that the banks had to offer, the effectiveness of
various advertising and other sales promoting measures, and the customers' will to
save and other habit.
Meidan (1976) thinks about 90% of the respondents banked at the branch nearest
to their home place and place of work. Convenience, in terms of location, was found to
be the single most important factor for selecting a bank.
Lewis and Booms (1983), service quality is ‗a measure of how well the service
level delivered matches customer expectations. Delivering quality service means
conforming to customers‘ expectations on a consistent basis‘. The most common
explanation of the difference between service quality and customer satisfaction is
highlighted by Bateson (1992).
Cronin and Taylor (1992), suggested that service quality is antecedent of
customer satisfaction and that customer purchase intentions are related more closely to
levels of satisfaction than to perceptions of service quality.
Vijay M. Kumbhar (2001), The private sector banks are providing more satisfied
services then public sector banks and the customer perception about Productivity,
Security and Sensitivity, Cost Efficiency, Problem Handling, Compensation and
Contact services related to service is very less in both the public sector and privates
sector banks, Therefore both kinds of banks should be aware about these facets of
service to improve customers‟ satisfaction.
Rayappan and shunmghan (2008) have used factor analysis tool of customer
satisfaction with demographic profile of the customer.
Keerthe and Vijayalkshmi (2009) analysed perception level of the customer
with their demographic profile.
Kumber and at al. (2009) reviewed the Indian banks are changing towards
modern banking system. Modernization in banking is changing banking services,
products and operational methods of banking. All these developments are lead to
facilities to customers delight as well as operational efficiency of banks and reducing
operational expenses of banking services
Kumar and Rajesh (2009) covered that working performance of the bank must
be improved and derived that the factors which brings satisfaction to customer are
modernization and technological advancement.
Trivedi and Aggrawal (2009) has focused on five major dimension to measure
customer satisfaction towards bank, viz., tangibility, assurance, responsiveness,
empathy, and reliability. Rayappan and shunmghan (2008) have tested regression of
customer satisfaction with demographic profile of the customer. Bharathe et al (2008)
have found that inaccuracy in transaction nak charges, staff attitude; 31 complaint
handling, system and procedure are some of the factors which derive dissatisfaction to
the customers.
Puja et, al, (2009) Private sector Banks seem to have satisfied its customers with
good services and they have been successful in retaining their 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 and Private Banks need to concentrate more on their facilities and services
since customers do not have a very good opinion about these facilities being offered by
Private Banks also Public sector banks enjoy the trust of the customers, which they have
been leveraging to stay in the race 32 however they need to improve their service quality
by improving their physical facility, infrastructure and giving proper soft skill trainings
to their employees.
Santhiyavalli and at al. (2011) emphasis that the service quality of banking
industry. Banking operations are driven by the market, and the customer is seen as a
consumer of the bank and not of any particular branch of the bank. Along with
technology, banking services have also evolved, and the delivery of various banking
products are carried out through the medium of high technology at a fraction of the cost
to the customer.
Selvaraj (2011) measured and analyzed the awareness level of the customers
towards services provided by the Banks of India. He found that 70% of the sample
respondents had low level of awareness towards the services provided by the bank. It
may be due to the fact that the study area was mostly covered by rural areas. The bank
has to initiate necessary measures to increase the awareness level through conducting
awareness programs in the rural areas and the bank has to concentrate more on
promotional activities.
Sarkar (2011) proved this statement ―If there is any secret of success, it lies in the
ability to get the other person‘s point of view, and seeing things from his angle‖ - Henry
Ford by comparison studies between two private sector banks services.
Swami (2012) stipulates the facts related to banking products. Customer service is
perhaps the most important dimension of banking. While most public sector banks offer
the same range of service with similar technology/expertise, the level of customer
service matters the most in bringing in more business.
Sumedha Kalia and Urvashi Kalra (2012) investigated various factors
influencing customer‘s perception and satisfaction level towards E-Banking. They
found that, lack of knowledge, inadequate legislations and security concerns are the
major reasons for not using E-Banking. They suggested that, banks should provide
―demo‖ on their website for new users to know about online banking services and
facilities of experts to increase awareness in the minds of customers to use e banking
safely.
Ravi and Kundan basavaraj (2013) analyzed the customer preference and satisfaction
towards banking services both private and public banks in Delhi district. The authors
found business and vehicle loans are fast moving than other services and overall
satisfaction resulted at 50%. Further, overall satisfaction on bank deposit schemes
resulted positively while other services of banking still need to be given attention by
focusing on customer issues. They authors suggested that, bankers should work
towards 100% customer satisfaction that automatically fosters customer delight and to
sustain customers on a long term basis. 34 The implementation of globalization,
government policies and liberalization has made the banking industry very
competitive by providing various products and services to the customers. The various
services offered by the banks can be utilized by the customers only when they are
made aware of these services. The banker and customer have to know about one
another. The banker has to understand the customers‘ needs and in the same way, the
customer has to know about the carious services offered by the banks. Increased level
of awareness among the customers leads to increased preferences. The purpose of this
study was to investigate the awareness and satisfaction level of customers towards
various loans. To develop and to sustain business any of the banks must have quality
of customer service that can link up cordial relation with the customer and result in to
the satisfaction to the customer. In the present research an efforts has done to measure
satisfaction level of the customers by comparing various factors that can impact on
satisfaction of customer to bank located in Delhi. The main focus is done on whether
private bank bring more satisfaction then public sector banks to the people residing in
Delhi, and what are those factors which are considered when people say they are
satisfied. This paper is aims at carrying out the comparative analysis of loan
preference by customers in private and public bank. Since banking service sector is
one of the most upcoming sectors in the Indian Market.
3. NEED AND OBJECTIVE OF THE STUDY
3.1 NEED OF THE STUDY
The value of loans in India increased 12.4 percent year-on-year in the fortnight ended
in May 2021. . As the lending and borrowing process is getting simpler by the day,
the rate of preference for unsecured loans is getting exceptionally high. Modern-day
Indians are no more skeptical when it involves taking loans, unlike the older days.
The success of any business relies on understanding the consumer and providing the
type of products that the buyer wants. Consumers react well while assessing the items
that best fulfill their necessities. Knowledge of consumer behavior is going to be of
immense help to the marketer which can help to satisfy their needs. A business
concern that's unaware of consumer preferences cannot reach the marketplace.
According to Peter F. Drucker. “It is the consumer who determines what a business
is”. It is observed that the Loan market in India is growing at an incredible pace so it's
important to check the consumer behavior and preference towards the unsecured loan.
3.2 OBJECTIVE OF THE STUDY
To study the banking services and customer satisfaction of public and private sector
banks .
To know in which service quality dimension the bank is performing well and in which
dimension it needs improvement.
To analyze and compare the loan perceptions of the customers in public and private
sector banks.
To assess various aspects of services provided by the public sector, private sector and
foreign banks.
To assess the extent of use of services especially the IT enabled services in these banks.
To determine and compare the extent of customer‘s satisfaction with quality of banking
services on the basis of different constituent factors
4. RESEARCH DESIGN AND METHODOLOGY
4.1 RESEARCH METHODOLOGY
Research methodology deals with a systematic and scientific methods that can be adopted
to solve research problems. Methodology is a crucial step in any research because it
directly influences the whole research and its findings. The present study will be carried
out to gain an insight into the customer satisfaction level with the quality of services
provided by public sector, private sector and foreign banks.
Research design
For obtaining information, about customer satisfaction in providing loan services through
banking via a survey conducted at a sample of the general consumer population. The
survey questionnaire is design and distributed to target respondent randomly. Targeted
respondents are the general public and data is collected from a large population. Thus, the
survey questionnaires are designed to apply to a heterogeneous population, where
targeted respondents come from the general open public (from difference genders, races,
age groups, marital status education backgrounds, designations and professionalisms).
The survey questionnaires were conducted via face to face interviews so as to ensure that
the survey encompasses a broader geographical area.
4.2 Data collection
The study bases itself on primary data collected by using the SERVQUAL model for
ascertaining the service quality of retail banking in India. The information has been
elicited through a field survey by means of a well designed questionnaire comprising of
queries on the various service quality attributes and their dimensions as identified and
contained in the SERVQUAL. One additional attribute has been added to the original
SERVQUAL. This relates to ascertainment of ATM Service Quality which is one of the
most important factors that reflects the service quality of banks in retail segment. The
questionnaire has been administered on a randomly selected sample of customers availing
retail banking services from the private and public sector Indian banks. The spread of
survey covers nine districts of the State of Uttar Pradesh, Uttarakhand and Delhi A blow-
up of the methodology adopted for primary data collection is presented below. This study
is an empirical study; it is based on the primary and secondary data.
Primary Data –
The primary data relating to the level of preferences and satisfaction customer of the
banks about the services offered by commercial banks were collected from persons
having their accounts in any public sector bank or private sector bank by interviewing
them directly by the researcher with the help of a questionnaire.
Secondary Data –
Secondary data were obtained from different brochures of banks, websites of banks,
magazines and journals.
5 BRIEF STUDY ON CONSUMER PREFERENCE
ON DIFFERENT TYPES OF LOANS
5.1 WHAT IS A LOAN
TYPES OF LOAN
There are many types of Loans, but the most usual ones used in Kosovo are: Personal Loan,
Mortgage Loan, Business Loan, Consumers loan, Overdraft, Agricultural loan, Education
Loan, etc.
The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding
interest), is called principal. Principal is the original amount of the loan that is owed by the
Consumer to the Creditor (bank) on the date the loan contract is signed. Once the Consumer
has begun to pay back the loan, principal refers to the amount of money still owed to the
Creditor.
INTEREST RATE
Interest rate is the amount charged to the Consumer for the use of the Creditor's funds. It is
expressed as a percentage of the amount borrowed and is calculated at a specific interval over
the course of the term of the loan contract. Interest rate can be specified either as fixed
interest rate or variable interest rate. For variable interest rates it is important to provide all
necessary details on its variability.
5.2 Current scenario of banking industry
In recent time, we have witnessed that the World Economy is passing through intricate
circumstances as bankruptcy of banking and financial institution, death crisis in major
economies of the world and euro zone crisis. The scenario has become very uncertain causing
recession in major economies like US and Europe. This poses some serious questions about
the survival, growth and maintaining the sustainable development.
However, amidst all this turmoil India’s banking industry has been amongst the few to
maintain resilience. The tempo of development for the Indian banking industry has been
remarkable over the past decade. It is evident from the higher pace of credit expansion,
expanding profitability and productivity similar to banks in developed markets; lower
incidents of non-performing assets and focus on financial inclusion have contributed to
making Indian banking vibrant and strong. Indian banks have begun to revise their growth
approach and re evaluate the prospects on hand to keep the economy rolling.
5.3 ACCESSIBLE TO A COMMON MAN
Access refers to a situation in which affordable, mainstream financial products are available
to all segments of the population across the range of income levels and demographic
characteristics. Suitability addresses the appropriateness of the products for particular
consumer groups. Innovative products will tend generally to be either positive for access to
finance or neutral. But products that actually result in increased access to finance may
nonetheless still raise suitability issues. Innovative products can be particularly difficult for
retail consumers to understand and better financial education is needed to help address
financial illiteracy. In addition, service providers should have appropriate internal controls to
minimise the chances that consumers take on inappropriate exposures. Even the best
disclosures, alone, may not be adequate, so to avoid situations in which retail investors
become involved with unsuitable products, institutions should be “encouraged” to develop
sufficient measures for client protection as part of their product development activities.
Stricter penalties should be used when needed to address mis-selling, fraud or firm
misconduct.
CHAPTER 6. GLOBAL SCENARIO ON
CONSUMER PREFERENCE ON DIFFERENT
TYPES OF LOANS
6.1 GLOBAL SCENARIO ON CONSUMER PREFERENCE ON DIFFERENT
TYPES OF LOANS
The bank system is facing challenges with stiff competition and advancement of technology.
It becomes imperative for service providers to meet or exceed the target customers‘
satisfaction with quality of services expected by them. Hence, the present research attempted
to study customers‘ perception of quality of services, both transaction based and IT enabled
in terms of its constituent factors in public sector, private sector and foreign banks. Also
through the present study, we would gauge the extent of IT adoption in public sector, private
sector and foreign banks in this e-age. The present investigation was planned with the
objective to assess the extent of use of services especially the IT enabled services in these
banks and to analyse the constituent factors affecting customer satisfaction with the quality of
services. The present study was conducted in public sector, private sector and foreign banks
of Delhi. Multistage random sampling was used for selection of sample. The study was
proposed to be conducted in five zones (East, West, North, South, and Central) of Delhi. One
branch of the above banks in any zone of Delhi was selected randomly. While selecting the
branch, care was taken to see that branch should provide at least five IT enabled services.
This step was followed to have Intra Bank comparison. The study shows that the customers
of nationalized banks were not satisfied with the employee behaviour and infrastructure,
while respondents of private and foreign banks were not satisfied with high charges,
accessibility and communication. 9 Following are the types of Banks:
Nationalized Banks:
Nationalized banks dominate the banking system in India. The history of nationalized banks
in India dates back to mid-20th century, when Imperial Bank of India was nationalized (under
the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955.
The State Bank of India, the country‘s oldest Bank and a premier in terms of balance sheet
size, number of branches, market capitalization and profits is today going through a
momentous phase of Change and Transformation – the two hundred year old Public sector
behemoth is today stirring out of its Public Sector legacy and moving with an agility to give
the Private and Foreign Banks a run for their money. The bank is entering into many new
businesses with strategic tie ups – Pension Funds, General Insurance, Custodial Services,
Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services,
structured products etc – each one of these initiatives having a huge potential for 10 growth.
The Bank is forging ahead with cutting edge technology and innovative new banking models,
to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and
proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of
the market, on whole sale banking capabilities to provide India‘s growing mid / large
Corporate with a complete array of products and services. It is consolidating its global
treasury operations and entering into structured products and derivative instruments. Today,
the Bank is the largest provider of infrastructure debt and the largest arranger of external
commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500
list.
ICICI Bank:
ICICI Bank is India‘s second-largest bank and the largest private bank in the country, having
more than US$50 billion in assets. The Bank has a network of 2,044 branches and about5,
546 ATMs in India and presence in 18 countries. ICICI Bank provides a wide range of
banking products and financial services — investment banking, life and non-life insurance,
venture capital and asset management to corporate and retail customers through a variety of
delivery channels and specialized subsidiaries and affiliates. Customers of all the groups
under the ICICI umbrella are served through roughly614 branches and global services
provided through 14 international offices. ICICI has incubated Financial Information
Network & Operations Pvt. Ltd. (FINO)
CHAPTER 7. GOVERNMENT INITIATIVES
TOWARDS CONSUMER PREFERENCE
7.1 PROJECTS FOR CONSUMER PREFERENCE
Consumer behaviour is the study of individuals, groups or organization and all the activities
associated with purchase, use and disposal of goods and services, how the consumer
behaviour.
In accordance with Solomon 2006 “consumer behaviour is defined as the process decision
making and physical activity involved in acquiring disposing goods and services to satisfy
needs and wants.
(d)Psychological factors
Abraham Mallows need can be ranked in order of importance from the low biological needs
to higher level of psychological needs. Maslow’s hierarchy of human needs make us
understand consumer motivation. It is useful for the marketer who can identify what generic
level needs this brand is capable of fulfilling and according position his brand up with
relevant marketing input.
The study of consumer behaviour suggested that everyone does not buy on price
consideration or utility consideration. Only for high income groups high priced cloth,
cars etc have been produced.in certain cases prices of such cloth is three to eight times of
normal suiting price but some section still buy it for prestige or show
(c) Helps in product orientation
The study of consumer behaviour helps to find out why consumer are drifting away
from a product or why they are not liking it. for instance, some of indian toothpaste
are being produced for long like neem but it could not capture the market. There are
many other instances when a new product has been developed or reoriented to again
capture its old glorious position.
(d) Helps the consumer
to study their behaviour The consumers often are guided by their income,
emotions, opinion of others and they do not undertake study of their behaviour
whether it is scientific or not. The science, however, can help them to study cost
benefit of their buying decision. The study can reveal them whether buying an
expensive item it’s rational or not.
Producers of medicine claim cure of certain deceases. Producers of hair oils claim
that it will stop falling of hairs and or new hairs will start growing. Slim centers
claims reduce weight in magic speedy manner. Someone claims that boldness can
be cured by replanting of new hairs in short period. Someone claims regeneration
of vitality even in old person.
Any number of examples can be given but such claims sometimes even by big
companies are only partially true. High priced products are introduced to take
advantage of consumers weakness just by changing shapes, packing etc.
customers are attracted by gifts, lotteries, exchange scheme etc.
In such cases often claims are exaggerated and benefits in the form of sales
promotion scheme is only to seller and not to buyer. The government in most of
the countries has found though consumer is the he is exploited. Hence most of the
countries have framed and enacted many acts and regulations to safeguard the
interest of consumers.
Accordingly, DAC&FW has formulated the Central Sector Scheme to mobilize a medium -
long term debt financing facility for investment in viable projects relating to postharvest
management Infrastructure and community assets through incentives and financial support.
Agriculture and allied activities are the primary income source for ~58% of total population
of India. ~85% of the farmers are Small Holding Farmers (SHFs) with less than 2 hectares of
land under cultivation and manage ~45% of agricultural land. Annual income of majority of
the farmers is very low. Further, India has limited infrastructure connecting farmers to
markets and hence, 15-20% of yield is wasted which is relatively higher vs. other countries
where it ranges between 5-15%.Investment in agriculture in India has further been stagnant
with less than 2% CAGR over last 5 years. Investment in FY17 was ~ Rs. 2.19 lac crore out
of which private sector share was ~83% vs. a higher investment of ~ Rs. 2.50 lac crore in
FY14 and a higher share of private sector at ~88%. Also, lack of investor confidence is
leading to lower plowback ratio (~14% of Gross Value addition in FY18) . other sectors
(~33% of Gross 4 Value addition in FY18).
Objectives of Scheme
To mobilize a medium - long term debt finances facility for investment in viable projects for
post-harvest management Infrastructure and community assets through incentives and
financial support in order to improve infrastructure in the country. This financing facility
will have numerous objective for all the stakeholders in the eco-system.
a. Farmers (including FPOs, PACS, Marketing Cooperative Societies, Multipurpose
cooperative societies) –
Improved marketing infrastructure to allow farmers to sell directly to a larger
base of consumers and hence, increase value realization for the farmers. This
will improve the overall income of farmers.
With investments in logistics infrastructure, farmers will be able to sell in the
market with reduced post-harvest losses and a smaller number of
intermediaries. This further will make farmers independent and improve
access to market.
With modern packaging and cold storage system access, farmers will be able
to further decide when to sell in the market and improve realization.
Community farming assets for improved productivity and optimization of
inputs will result in substantial savings to farmers.
b. Government –
Table reveals the details about the customers having accounts in specific banks and the
number of years of having transactions with two banks. It is highlighted that 50.67% of
the respondents have their account in State Bank of India (SBI), 37 49.33% of the
respondents in ICICI bank. another inferred that 34.67% of the respondents have 4-6
years of experience with the same bank, followed by 7-9 years of bank transaction
experiences as assigned by 28.67% experience of the respondents had 1-3 years of
experience while a very minimal 14.67% of the respondents with their respective banks.
TABLE 2: CLASSIFICATION OF TABLE ON THE BASIS PREFERENCES
AND SATISFACTION LEVEL OF VALUE ADDED SERVICES
ATM 28 16 02 46
Locker services 14 06 01 21
Mobile banking 24 02 0 26
Net banking 15 02 0 17
Others 29 11 0 40
110 37 03 150
More banks are offering similar value added services such as mobile banking (customer
convenience), SMS banking (account balance, last few transactions, cheque-book requests
and updated interest rate charges). For examples, ICICI bank uses immobile (mobile banking
platform) for paying utility bills, insurance premiums, and account transactions to other
banks. SBI mobile banking moves are similar to that of ICICI bank and it allows its
customers to pay telephone 38 bills, fund transfer, utility bills, recharge of mobile SIM cards,
etc. Nevertheless the commonly used value added services are: ATM (46 users) locker
facilities (21 users), mobile banking (26 users), net banking (17 users) and tele-banking,
online fund transfers, 24*7 customer care, etc., are categorized as others (only 40 users) and
successful reach of these services are highly influenced by factors like customer needs,
wants, expectations, preferences, knowledge about usage of value added services as well as
length of value added services offered by bankers. Respondents were asked to rank the level
of satisfaction of the five commonly known and used value added services (refer table 5).
ATM was ranked first, rank two was assigned to other value added services like tele banking,
24*7 customer care, SWIFT operations, NRI accounts, E-ticketing, Etaxing, credit cards,
debit cards, etc. table 5 shows that rank 3 goes to mobile banking as it indicates increase in
usage of mobiles day by day for the various purposes while chances of usage of net banking
was low, due to confusion, poor internet literacy, fear of online theft, no training on this
aspect etc hence it was given the last rank.
Factor Analysis: Since the questionnaire used in this research has various set of questions
focusing on different factors for over-all customer satisfaction and dissatisfaction with
banking services in terms of loan services and services pertaining to loans provided by the
banks. Therefore, factor analysis is conducted separately on each of sets within the
questionnaire. Significant 39 factors from each of these sets have been calculated and from
these factors, a significant factor of the entire questionnaire is calculated.
Reliability Statistics
.788 30
Reliability Assessment
Analysis As statistics tells more the Alpha value near to 1 more will be the
reliability. The above table reveals that the Cronbach’s Alpha value = .788.
Therefore based on the Alpha value it can be decided that the framed
questionnaires are more reliable with each other and the questionnaire survey
can be conducted by using the questionnaire.
Gender
Gender
40%
60%
male female
Interpretation
Table no-8.2, shows that the total numbers of respondents are 100. In the first column of the
table numerical value is assigned for male and numerical value is assigned for females. The
total numbers of male and female are 60 and 40 respectively out of 100(the total sample size
of the respondents). The study of table reveals that in this study more than 60% respondents
are male. The table shows that the majority of people who take the loan from the banks are
males.
Annual Income
7%
19%
29%
45%
fd
Interpretation
Table no- 8.3 and shows that the total numbers of respondents are 100. In the table 45% of
respondents whose annual income lies between 100000- 250000, 29% of respondents annual
income is 50000- 100000, 19% of respondents annual income is above 250000 and
7%respondents is less than 50000. The table states that the majority of people who take the
loan from the banks their annual income lies between 100000-250000.
Type of loan
Types of loans
20%
41%
15%
24%
Table no- 8.4 shows that the total numbers of respondents are 100. In the table 41% of
respondents are interested in taking personal loan, 24% of respondents are interested in taking
housing loan, 20% of respondents are interested in taking other type of loan and
15%respondents are taking education loan. The table states that the majority of people who
take the loan from the banks are the personal loan.
Occupation
12%
11% 35%
31%
11%
business Public sector service Private sector service self employed Others
Interpretation
Table no-8.5 shows that the total numbers of respondents are 100. In the table 35% of
respondents occupation is business, 31% of respondents occupation is private sector service,
11% of respondents occupation is public sector services, self-employed and others. The table
states that the majority of people who take the loan from the banks whose occupation is
business.
DATA ANALYSIS
The chapters describe the analysis and interpretation of the data which are collected through
the questionnaire and the internet website. Above analysis shows that customer satisfaction
vary according to the nature of the services and in this case, highest customer satisfaction is
shown in such areas like price charged by banks is nominal, convenient location of bank
branches & staff attitude toward problem solving of customers. When the private sector
banks are compared with public sector banks, public bank customers were more satisfied with
their bank because of convenient locations and technology which were not even seen in
private sector banks. But when we talk about private sector banks customers of public sector
banks were more satisfied with reputation, reliability and the prices which public sector banks
impose on services.
CHAPTER 9. FINDINGS
Findings
The world of banking has assumed a new dimension at dawn of the 21st century with the
advent of tech banking, thereby lending the industry a stamp of universality. In general,
banking may be classified as retail and corporate banking. Retail banking, which is designed
to meet the requirement of individual customers and encourage their savings, includes
payment of utility bills, consumer loans, credit cards, checking account and the like.
Corporate banking, on the other hand, caters to the need of corporate customers like bills
discounting, opening letters of credit, managing cash, etc. Metamorphic changes took place in
the Indian financial system during the eighties and nineties consequent upon deregulation and
liberalization of economic policies of the government. India began shaping up its economy
and earmarked ambitious plan for economic growth. Consequently, a sea change in money
and capital markets took place. Application of marketing concept in the banking sector was
introduced to enhance the customer satisfaction the policy of privatization of banking
services aims at encouraging the competition in banking sector and introduction of financial
services. Consequently, services such as Demat, Internet banking, Portfolio Management,
Venture capital, etc, came into existence to cater to the needs of public. An important agenda
for every banker today is greater operational efficiency and customer satisfaction.
This study will help in understanding the analysis customer in public and private bank and
also the services provided by the bank in Delhi and also focusing on key factors based on
loan perception of the customer in public and private sector bank. The area of study is
restricted to Delhi and NCR. A number of surveys are conducted in the main cities of India
like Bangalore, Chennai and Delhi but the customers of the big cities differ with the
customers of small cities in attitude, usage pattern and recall etc., therefore the present
work has been undertaken in the Shivamogga district the most people are being in use of
banking services. This study is mainly confined to the customer preference and satisfaction
towards banking services only, who have been using 24 the particularly ATM, and mobile
banking in Shivamogga district of Karnataka state. The study mainly focuses on the
customers of the Kothrud branch of HDFC Bank Ltd. Pune region. It will be helpful to the
marketer to analyze consumer behavior (Borrowers) at the point of purchase and plan the
products accordingly. The Study will help to understand the preference of consumers
towards the personal loan and business loan for availing loans. This study will also help to
identify consumer Preference on basis of various factors that influence consumer behavior.
The study will help the Loan lenders and banks to take steps towards customer service
models as well as identify the consumer Preference based on various
CHAPTER 11. CONCLUSION
Conclusion
The study is aimed at measuring the customers‘ preference and satisfaction levels for two
basic services offered by private and public bank in Shivamogga district. Business and
vehicle loans are fast moving than other services and overall satisfaction resulted at 50%.
Further, overall satisfaction on bank deposit schemes resulted positively while other services
of banking still need to be given attention by focusing on customer issues. New innovative
schemes, strategies to cater to non users other services have to be adopted. A study or future
research is recommended on all verticals of banking services. In value added services
customer preference for net banking was least ranked and if the 51 bankers with to increase
net banking traffic, bankers should take maximum efforts to educate the customers by
offering on line training instead of handing out instruction manuals. Finally, if they want to
sustain customers on a long term basis, bankers should work towards 100% customer
satisfaction that automatically fosters customer delight.
Various traditional and IT enabled banking services used by customers are studied in the
present paper. In addition, customer satisfaction was also measured with various dimensions.
It is observed that cheque deposit and cheque clearance were the most common banking
services used by the customers of all six banks. While the charges levied by the bank on
different services were perceived higher by the customers in private and foreign banks in
comparison to nationalized banks. A small number of respondents were using IT enabled
services other than ATM. Security, lack of facility, improper awareness and so on were found
to be the reasons for not using IT enabled services. The customers of nationalized banks were
not satisfied with the employee behavior and infrastructure, while respondents of private and
foreign banks were not satisfied with high charges, accessibility and communication. The
study shows that only a few respondents made complain to their respective banks. The nature
of complain was mostly delay in transaction and extra charges. 52 Hence, the study throws
light on different aspects and drawback of services of the nationalized, private and foreign
banks. Training on stress management and public dealing should be imparted to the
employees of nationalized banks. Nationalized banks need to improve their infrastructure and
ambience to compete with private and foreign banks in India. Branches of private and foreign
banks should be increased for easy accessibility.
CHAPTER 12. SUGGESTION
Suggestions
7. Vijay M. Kumbhar (2001), ―The private sector banks are satisfied with
services then public sector banks and the customer perception about
Productivity‖, Therefore both kinds of banks should be aware about these
facets of service to improve customers satisfaction. European Journal of
Management Volume: 9, No 3 and pp 234 -244.
15. Dutta et al, (2009), ―Perception of executives of customers across all the
banks – A Comparative Study of Select Indian Public and Private Sector Banks,
Satisfaction of the products services and quality of the Public, and private
Sector Banks. European Journal of Management Vol9, No. 8. and pp 295-305
16. Puja et, al, (2009), ―Customer Satisfaction with good Services: A
Comparative Study of Public and Private Sector Banks International Journal of
Financial Services, Vol.5, No. 5 and pp 283-284.
17. Santhiyavalli and at al. (2011), ―emphasis that the service quality of
banking industry. The Journal of Indian Management and Strategy, Vol. 12, No.
2, PP 24-30.
20. Swamy (2012), ―stipulates the facts related to banking products‖, Customer
service is perhaps the most important dimension of banking. International
Journal of Financial Services Management, Vol. 3, No.2 and pp 283-284.
22. Ravi and Kundan basavaraj (2013) ―Customers Preference and Satisfaction
towards Banking Services with Special Reference to Delhi District, Trans Asian
Journal of Marketing & Management Research, Vol.2, No. 1, pp. 28-38.
23. Ahmed Jamal and Kamal Naser (2003), ―Factor Influencing Customer
Satisfaction in the Retail Banking Sector in Pakistan International Journal of
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25. Uma Sekaran (2004), Research Methods for Business: A Skill Building
Approach, pp. 265-286, 4th Edition, John Wiley and Sons, Inc. Singapore.
29. Vigg Silky, Mathur Garima and Holani Umesh (2007), ―Customer
Satisfaction in Banking Services: A Comparative Study of Public and Private
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2, PP 24-30. 60