1

“OVERVIEW OF CUSTOMER SATISFACTION OF STATE

BANK OF INDIA IN MUMBAI REGION”

Project Report

Submitted for Partial Fulfillment of Semester-V

Of the degree of Bachelor of Management Studies (B.M.S) of

University of Mumbai

Submitted by

Mr. Anil R. Prajapati

Roll No-143522

(2014-2015)

Under the Guidance of

Prof. Devashree mayekar

Vidya Vikas Education Society’s

Vikas College of Arts, Science & Commerce

Kannamwar Nagar, Vikhroli (East),Mumbai-4008

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Mr. Anil R. Prajapati

T.Y.B.M.S,(Semester-V) Roll No.-143522

Vidya vikas Education Society’s Vikas College of Arts,Science&Commerce

Kannamwar Nagar, Vikhroli (East), Mumbai-40083

DECLARATION

I do hereby declare that the Project Report entitled “OVERVIEW OF CUSTOMER

SATISFACTION OF STATE BANK OF INDIA IN MUMBAI REGION” submitted to Vidya

Vikas Education Society’s Vikas College of Arts, Science &Commerce Kannamwar nagar,

Vikhroli (East), Mumbai-40083, for the partial fulfillment of semester-V of the B.M.S Degree of

University of Mumbai, is an original piece of research work done by me and it has not been

submitted for any other degree to any other College or Institution.

Dated (Mr. Anil R. Prajapati)

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DEPARTMENT OF MANAGEMENT STUDIES

Vidya Vikas Education Society’s

Vikas College of Arts, Science & Commerce

Kannamwar Nagar, Vikhroli (East),Mumbai-40083

CERTIFICATE

This is to certify that the project Report entitled “OVERVIEW OF CUSTOMER

SATISFACTION OF STATE BANK OF INDIA IN MUMBAI REGION” has been based on

original research work done by Mr. Anil R. Prajapati of T.Y.B.M.S (Semester-V) of Vidya Vikas

Education Society’s Vikas College of Arts, Science &Commerce Kannamwar nagar, Vikhroli

(East), Mumbai-40083, under my guidance and supervision. The said Project Report is submitted

as the partial fulfillment of semester-V of the B.M.S. Degree.

I further certify that this thesis has not been submitted for any other degree to any other

college or institution.

Dated (Prof. Devashree mayekar)

(External Examiner) (Internal Examiner)

PRINCIPAL

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ACKNOWLEDGEMENT

First of all ,I wish to express my heartfelt thanks to my guide prof .Devashree mayekar for her

guidance and support to complete this academic project. . I would also like to extend my sense of

gratitude to Prof. R. K. Patra, Head Department of Management Studies for his constant motivation and inspiration. I would like to thank all my friends from my college for their continuous encouragement. I am

thankful to the library staff of my college for the help extended to me during the study period. Last but not the least , my sincere thank to all those who helped me directly and indirectly to

complete this project work.

Anil R. Prajapati

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INDEX

SR.NO. CONTENTS PAGE

NO.

1. CHAPTER -1

INTRODUCTION OF THE STUDY

OBJECTIVE

SCOPE

LIMITATION

LITERATURE REVIEW

6-11

2. CHAPTER -2

INTRODUCTION OF THE COMPANY

12-36

3. CHAPTER -3

DATA ANALYSIS AND

INTERPRETATION

37-54

4. CHAPTER -4

CONCLUSION AND SUGGESTION OF

THE STUDY

55-56

QUESTIONAIRE 57-59

BIBLOGRAPHY 60

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CHAPTER:-1

INTRODUCTION OF THE STUDY

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The report contains the brief description of the state bank of India. It contains the finding and

analysis of the survey conducted to gather primary data to judge the importance of various

attributes that influence the satisfaction of customer in different manner and to the different

extent. These attributes are classified as initial experience, service delivery experience,

relationship experience and grievance handling. Further an attempt has been made to know the

overall satisfaction of the customer.

Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction is

defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Customer service proves to be one of the most important factors governing business.

OBJECTIVE OF THE STUDY:-

TO find out the customer feedback i.e. improvement required or suggestion.

To find out the relationship between bank and the customer.

To study the Satisfaction of customers towards the ― state bank of India.

To Identify the factors that influences the customer behavior of ―state bank of India.

To identify the factors those influence the selection of SBI banking services in MUMBAI DISTRICT.

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SCOPE OF THE STUDY:-

The present study was undertaken to know the preference of the customer towards state bank of

India (SBI). The problem of the customer is they are not aware of the services provided by their

bank. The study also force on the customer perception that how the banking services can be

improved. In my study I have used both primary sources of data as well as secondary sources of

data.

The study has been conducted on behalf of ―STATE BANK OF INDIA.

The study is confined to the Mumbai region.

The study covers the service providers and users of ―STATE BANK OF INDIA.

The study has put forward the Customers as well as acceptability behavior for the

services.

The scope of the study is to find out the ―Customer Satisfaction

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Limitations of the Study:- The study report consists of few limitations:-

The report has been conducted within a limited time frame.

The study is self financed.

The study is limited to the customer of Mumbai only.

Only selected Branches and Banks have been considered for the study.

Samples were selected conveniently.

The sample size does not represent the total population.

The sample of size is limited to 30 only and the sample size may not represent whole

market.

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LITERATURE REVIEW:-

The banking sector in India has made remarkable progress since the economic reforms in 1991.new private sector banks have brought the necessary competition into the industry a nd

spearheaded the changes towards higher utilization of technology, improved customer service and innovative products. Customers are now becoming increasingly

conscious of their rights and are demanding more than ever before. The recent trends show that most banks are shifting from a “product-centric model” to a “customer-centric model” as customer satisfaction has become one of the major determinants of business growth. In

this context, prioritization of preferences and close monitoring of customer satisfaction have become essential for banks. keeping these in mind, an attempt has

been made in this study to analyze the factors that are essential in influencing the investment decision of the customers of the public sector banks. For this purpose, Factor Analysis, which is the most appropriate multivariate technique, has been used to identify the

groups of determinants. Factor analysis identifies common dimensions of factors from the observed variables that link together the seemingly unrelated variables and provides

insight into the underlying structure of the data.

Book:-

I have referred Marketing Management book Written by Kotler Philip. and service marketing

written by M.K. rampal.

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Customer service is the provision of service to customers before, during and after a purchase.

According to Turban et al. (2002), "Customer service is a series of activities designed to enhance

the level of customer satisfaction – that is, the feeling that a product or service has met the

customer expectation."

Customer satisfaction in the banking industry play a vital role to create a healthy business

status being services based industry. In any services based industry customer service is at highest

priority. Customer service can be provided by well planned self-service. In banking industry

customer are more directly linked with the bank’s personnel for any kind of services or product.

Therefore, banks should always focus on training its front desk staff to provide quality service

knowing their expectation and wants.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the

state of satisfaction will vary from person to person and product/service to product/service. The

state of satisfaction depends on a number of both psychological and physical variables which

correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction

can also vary depending on other options the customer may have and other products against

which the customer can compare the organization's services.

At the same time, several banking institutions are experiencing increasing level of retail

customer dissatisfaction.

Research suggests that customer dissatisfaction is still the major reason of bank customers’

switch to other banks. This dissatisfaction could be because of a variety of reasons. Excellent

service quality is not an optional competitive strategy which may, or may not, be adopted to

differentiate one bank from another: today it is essential to corporate profitability and survival.

The connection between service quality and corporate profitability is now seen to depend on high

levels of customer satisfaction, the successful targeting of “quality” customers and the retention

of those customers.

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CHAPTER:-2

INTRODUCTION OF THE COMPANY

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COMPANY PROFILE:-

State Bank of India (SBI) is an Indian multinational, public

sector banking and financial services company. It is a government-owned corporation with its

headquarters in Mumbai, Maharashtra. As of December 2013, it had assets ofUS$388 billion and

17,000 branches, including 190 foreign offices, making it the largest banking and financial

services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with Bank of

Baroda, Punjab National Bank and Bank of India.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,

in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian

Subcontinent. Bank of Madras merged into the other two "presidency banks" in British

India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn

became the State Bank of India.

Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of

India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. In 2008,

the government took over the stake held by the Reserve Bank of India.

State Bank of India is a regional banking behemoth and has 20% market share in deposits and

loans among Indian commercial banks.

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State Bank of India:-

Type Public

Industry Banking, Financial Services

Founded 2 June 1806 , Nationalization , 1 July 1955

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Arundhati Bhattacharya (Chairman)

Products consumer banking, corporate banking, finance and insurance, investment banking,

mortgage loans, private banking, private equity, savings, Securities, asset

management, wealth management, Credit cards,

Revenue Increase INR 210736 crore (US$34 billion) (2013)

Profit Increase INR 17916 crore (US$2.9 billion) (2013)

Total assets Increase INR 2374839 crore (US$380 billion) (2013)

Total equity Increase INR 98884 crore (US$16 billion) (2012)

Owners Government of India

Employees 222,033 (2014)

Website www.sbi.co.in

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HISTORY OF THE STATE BANK OF INDIA:-

The roots of the State Bank of India lie in the first decade of the 19th century, when

the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The

Bank of Bengal was one of three Presidency banks, the other two being the Bank of

Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843).

All three Presidency banks were incorporated as joint stock companies and were the result

of royal charters. These three banks received the exclusive right to issue paper currency till 1861

when, with the Paper Currency Act, the right was taken over by the Government of India. The

Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took as

its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but

without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of

India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India.

On 1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the

government of India acquired the Reserve Bank of India's stake in SBI so as to remove any

conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which

made eight state banks associates of SBI. A process of consolidation began on 13 September

2008, when the State Bank of Saurashtra merged with SBI.

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SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911),

which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National

Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired

Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the

patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small

moneylender, owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a

Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the

acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in

Kerala.

The State Bank of India and all its associate banks are identified by the same

blue keyhole logo. The State Bank of India wordmark usually has one standard typeface, but also

utilises other typefaces.

On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank.

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VISION:-

My SBI.

My Customer first.

My SBI: First in customer satisfaction

MISSION:-

We will be prompt, polite and proactive with our customers.

We will speak the language of young India.

We will create products and services that help our customers achieve their goals.

We will go beyond the call of duty to make our customers feel valued.

We will be of service even in the remotest part of our country.

We will offer excellence in services to those abroad as much as we do to those in India.

We will imbibe state of the art technology to drive excellence.

VALUES:-

We will always be honest, transparent and ethical.

We will respect our customers and fellow associates.

We will be knowledge driven.

We will learn and we will share our learning.

We will never take the easy way out.

We will do everything we can to contribute to the community we work in.

We will nurture pride in India

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OPERATIONS :-

SBI provides a range of banking products through its network of branches in India and overseas,

including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal

Offices that are located at important cities throughout India.

Domestic presence:-

SBI has 14,816 branches in India, as on 31 March 2013, of

which 9,851 (66%) were in Rural and Semi-urban areas. In the financial year 2012-13, its

revenue was INR 200,560 Crores (US$36.9 billion), out of which domestic operations

contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total

profits for the same financial year.

Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by

Government in August 2014, SBI held 11,300 camps and opened over 30 lakhs accounts by

September, which included 21.16 lakh accounts in rural areas and 8.8 lakh accounts in urban

areas.

International presence:-

(The Israeli branch of the State Bank of India located in Ramat Gan.)

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(State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong)

As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches

of the parent in Moscow, Colombo,Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg,

London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and

Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative

offices in Bhutan and Cape Town.

The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches,

four in the Toronto area and three in the Vancouver area.

SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank:

State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major cities/towns of the

country including Rodrigues.

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(State Bank of India Branch at Jaffna,Sri Lanka)

SBI Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The Jaffna

branch was opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri Lanka,

celebrated its 150th year in Sri Lanka on 1 July 2014.

In 1982, the bank established a subsidiary, State Bank of India (California), which now

has ten branches – nine branches in the state of California and one in Washington, D.C. The 10th

branch was opened in Fremont, California on 28 March 2011. The other eight branches in

California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin

and Bakersfield.

In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian

Merchant Bank and received permission in 2002 to commence retail banking. It now has five

branches in Nigeria.

In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country.

In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest.

In Indonesia, it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one

in Tianjin.

In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired

for US$8 million in October 2005.

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Associate banks:-

Main Branch of SBI in Mumbai.

SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all

use the "State Bank of" name, followed by the regional headquarters' name:

State Bank of Bikaner and Jaipur (SBBJ)

State Bank of Hyderabad (SBH)

State Bank of India (SBI)

State Bank of Indore (SBIR)

State Bank of Mysore (SBM)

State Bank of Patiala (SBP)

State Bank of Saurashtra (SBS)

State Bank of Travancore (SBT)

Earlier SBI had seven associate banks, all of which had belonged to princely states until the

government nationalised them between October 1959 and May 1960. In tune with the first Five

Year Plan, which prioritised the development of rural India, the government integrated these

banks into State Bank of India system to expand its rural outreach. There has been a proposal to

merge all the associate banks into SBI to create a "mega bank" and streamline the group's

operations.

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The first step towards unification occurred on 13 August 2008 when State Bank of

Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.

Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds

98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the

government hold the balance of 1.77%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of

branches. Also, following the acquisition, SBI's total assets will inch very close to the 10

trillion mark (10 billion long scale). The total assets of SBI and the State Bank of Indore stood

at 9,981,190 million as of March 2009. The process of merging of State Bank of Indore was

completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26

August 2010.

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Non-banking subsidiaries:-

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Factors & Commercial Services Pvt Ltd

SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

SBI DFHI Ltd

SBI Life Insurance Company Limited

SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the

remaining capital), to form a joint venture life insurance company named SBI Life Insurance

company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its

headquarters in Mumbai.

Other SBI service points:-

As of 31 March 2014: SBI has 43,515 ATMs and SBI group (including associate banks) has

51,491 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu &

Kashmir Kargil region.

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PRODUCTS AND SERVICES:-

Personal Banking

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

Other Services:-

Agriculture/Rural Banking

NRI Services

ATM Services

Demat Services

Corporate Banking

Internet Banking

Mobile Banking

International Banking

Safe Deposit Locker

E-Pay

E-Rail

SBI Vishwa Yatra Foreign Travel Card

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The State Bank of India provides a wide range of accounts which are easy to open and use. The

bank also allows online operation of the accounts. Anybody who desires to have SBI account can

easily open an account. SBI accounts are now available for all like senior citizens, employed

people, students, in short for each and every citizen of India.

Opening an SBI account requires following the below mentioned simple

steps:-

For Indian Residents:-

If opening in person then collection of an application form and properly filling the form is

required.

If opening online downloading the form, filling the form and sending it back to the bank

authorities is required.

Identity proofs like photocopies of passport, pan card, driving license, voter ID card and aadhar

card.

As residence proofs photocopies of the above mentioned documents andphotographs of the

customer.

For Non Resident Indians:-

The application form properly filled and signed by the SBI official or the consulate of the Indian

embassy.

Photocopies of passport, visa and work permit of the country.

Details of other bank accounts if any.

Photographs of the person himself / herself.

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SBI allows different types of bank account each with their respective features,

some are given below:-

SBI savings account – Safe deposits of savings, earning interest on the deposits.

SBI salary account – Managing the salary, quick and easy credit of the amount.

SBI NRI account – Transactions and savings, transfer of currencies.

SBI business account – Easy transfer of money, outstation usable cheque facilities.

SBI internet banking – Fast and easiest method of money transfer and transaction.

SBI no frills account – Zero balance account, low service charges.

SBI current account – easy transfer of money among different branches, availability of ATM

cum debit card.

State Bank of India (SBI) is the largest bank in India.

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Transformation in SBI

The SBI has undergone major transformation in the recent years. The bank has ventured into

new areas of business like Pension Funds, General Insurance, Custodial Services, Private Equity,

Mobile Banking, Point Of Sale, Merchant Acquisition, Advisory Services, and Structured

Products etc.

The bank has made forays into the rural banking with state of the art technology. The bank has

outlaid an ambitious plan to expand rural banking to 100,000 villages in the next few years. The

bank has ambitious plans to focus on the high end market to support India's increasing mid/large

Corporate with a wide range of products and services.

The bank is consolidating its global treasury operations and diversifying into structured products

and derivative instruments. At present SBI provides the largest amount of infrastructure debt and

the bank is the largest provider of commercial borrowings in the country. SBI is a Fortune 500

company.

The Bank is in the process of expanding its base overseas. Currently it has 180 offices abroad

spread over 34 countries. The seven subsidiaries of SBI are SBI Capital Markets, SBICAP

Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards.

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LOGO AND SLOGAN :-

The logo of the State Bank of India is a blue circle with a small cut in the bottom that

depicts perfection and the small man the common man - being the center of the bank's business.

The logo came from National Institute of Design(NID), Ahmedabad and it was inspired

by Kankaria Lake, Ahmedabad.

Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK

OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS

ON US"

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LISTINGS AND SHAREHOLDINGS:-

As on 31 March 2014, Government of India held around 58.59% equity shares in

SBI. Life Insurance Corporation of India is the largest non-promoter shareholder in the company

with 14.99% shareholding.

Shareholders Shareholding

Promoters: Government of India 58.60%

Banks & Insurance Companies 16.79%

FIIs/GDRs/OCBs/NRIs 12.04%

Mutual Funds & UTI 03.78%

Private Corporate Bodies 02.87%

Others 5.92%

Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of

the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of

the S&P CNX Nifty.

Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

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EMPLOYEES:-

SBI is one of the largest employers in the country having 222,033 employees

as on 31 March 2014, out of which there were 45,132 female employees (20%) and 2,610 (1%)

employees with disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and 17,243

Schedule Tribe (8%) employees. The percentage of Officers, Assistants and Sub-staff was 36%,

46% and 18% respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers

joined the Bank in FY 2013-14, for expansion of the branch network and to mitigate staff

shortage, particularly at rural and semi-urban branches. Staff productivity: As per its Annual

Report for FY 2013-14, each employee contributed net profit of INR 4.85 lakhs.

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SWOT ANALYSIS:-

SBI has its roots since 1806 which was later transformed under various names, finally SBI Was

established after the act in parliament on May 1955. In the year 1959 SBI took over 8 state

owned banks and since then it started to grow up carrying its heritage of servicing people at

various economic levels. SBI has its roots since 1806 which was later transformed under various

names, finally SBI Was established after the act in parliament on May 1955. In the year 1959

SBI took over 8 state owned banks and since then it started to grow up carrying its heritage of

servicing people at various economic levels.

Strengths:-

SBI is the largest bank in India in terms of market share, revenue and assets.

As per recent data the bank has more than 17,000 outlets and 43,515 ATM centre.

The bank has its presence in 34 countries engaging currency trade all over the world

The bank has a merged with State Bank of Saurashtra, State bank of Indore, State Bank

of Bikaner & Jaipur ,State Bank of Hyderabad ,State Bank of Mysore ,State Bank of

Patiala, State Bank of Travancore

SBI has the first mover advantage in commercial banking service.

SBI has recently changed its vision and mission statements showing a sign of inclination

towards new age banking services.

32

Weakness:-

Lack of proper technology driven services when compared to private banks.

Employees show reluctance to solve issues quickly due to higher job security and

customers’ waiting period is long when compared to private banks.

The banks spends a huge amount on its rented buildings.

SBI has the largest number of employees in banking sector, hence the bank spends a

considerable amount of its income in employee’s salary compensation.

In spite of modernization, the bank still carries the perception of traditiona l bank to new

age customers.

SBI fails to attract salary accounts of corporate and many government sector employees

salary accounts are also shifted to private bank for ease of operations unlike before.

Opportunities:-

SBI’s merger with more banks namely State Bank of Hyderebad, State bank of Patiala,

State bank of Bikaber and Jaipur, State of bank of Travancore and State bank of Mysore

are in approval stage.

Mergers will result in expansion of market share to defend its number one position

SBI is planning to expand and invest in international operations due to good inflow of

money from Asian Market.

Since the bank is yet to modernize few of its banking operations, there is a better scope of

using advanced technologies and software to improve customer relations.

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Young and talented pool of graduates and B schools are in rise to open new horizon to so

called “old government bank”

Threats:-

FDIs allowed in banking sector is increased to 49% , this is a major threat to SBI as

people tend to switch to foreign banks for better facilities and technologies in banking

service.

Other government banks like PNB, Andhra, Allahabad bank and Indian bank are

showing.

Customer prefer to switch to private banks and financial service providers for loans and

mortgages, as SBI involves stringent verification procedures and take long time for

processing.

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RECENT AWARDS AND RECOGNITIONS:-

SBI won the Best Bank award in the 'ASiAMONEY FX POLL OF POLLS 2014’ for best

overall performance as domestic provider of Forex services over the last 10 years.

SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a

2014 ranking.

SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations

for the year 2012.

SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks

2013'.

State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for

“Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and

“Customer Management & Business Intelligence” in the large bank category.

SBI won National Award for its performance in the implementation of Prime Minister’s

Employment Generation Programme (PMEGP) scheme for the year 2012.

Best Online Banking Award, Best Customer Initiative Award & Best Risk Management

Award (Runner Up) by IBA Banking Technology Awards 2010.

35

SKOCH Award 2010 for Virtual corporation Category for its e-payment solution.

SBI was the only bank featured in the "top 10 brands of India" list in an annual survey

conducted by Brand Finance and The Economic Times in 2010.

The Bank of the year 2009, India (won the second year in a row) by The Banker Magazine

Best Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009

Best Bank 2009 by Business India

The Most Trusted Brand 2009 by The Economic Times.

SBI was named the 29th most reputed company in the world according to Forbes 2009

rankings

Most Preferred Bank & Most preferred Home loan provider by CNBC

Visionaries of Financial Inclusion By FINO

Technology Bank of the Year by IBA Banking Technology Awards

SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013, an annual

study conducted by Trust Research Advisory, a brand analytics company and subsequently,

in the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India.

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MAJOR COMPETITORS:-

Some of the major competitors for SBI in the banking sector are Axis Bank, ICICI

Bank, HDFC Bank, Punjab National Bank, Bank of Baroda, IndusInd Bank, Canara Bank and

Bank of India. However in terms of average market share, SBI is by far the largest player in the

market.

37

Chapter:-3

DATA ANALYSIS AND INTERPRETATION

38

RESEARCH METHODOLOGY:-

Research methodology is a methodology for collecting all sorts of information & data pertaining

to the subject in question. The objective is to examine all the issues involved & conduct

situational analysis. The methodology includes the overall research design, sampling procedure

& fieldwork done & finally the analysis procedure. The methodology used in the study

consistent of sample survey using both primary & secondary data.

COLLECTION OF DATA:-

The data can be collected from primary and secondary sources. The basic premises of my study

is primary data .Convenient sample that was representative of the target market was chosen, the

respondents were contacted personally and the instrument used for collecting data is

questionnaire.

Statistical Data can be classified into two categories:-

1) Primary Sources

2) Secondary Sources

Primary Data:-

Primary data is collected by using the questionnaire method.

39

Secondary Data:-

The Main sources of Secondary data are combination of information from the internet and books

of the related topic.

Sample Size:-

Sample of 30 people was taken into study, and their data was collected.

Sampling Technique:-

To study the Project, a Simple Random Sampling technique is used.

Data Analysis:-

After data collection, I’m able to analyze customer’s views, ideas and opinions

related to services of the state bank of India and SBI will come to know the

customer requirements.

Data Interpretation: -

Interpretation of data is done by using statistical tools like Pie diagrams, Bar

graphs, and also using quantitative techniques (by using these techniques)

accurate information is obtained

40

The analysis and interpretation of data is done using charts and graphs tool of MS-Excel.

1. Age group and distribution of male and female customer dealing with SBI.

When I did survey of 30 people I came to know in the group of below 18 there were more no. of

female who’s sbi bank account more than male. I also came to know in mature male above age

of 18 and age between 25-40 uses sbi account more than female. According to my survey 64%

male uses sbi account while female use only 36%.

7%

17%

30%

7%3%

13% 13% 10% 0% 0% 36%

0-18 18-25 25-40 40-60 60 ABOVE TOTAL MALE

AND FEMALE

MALE (19)FEMALE (11)

64%

41

2. OCCUPATION OF THE CUSTOMER.

According to my survey 33% salaried respondent uses sbi bank account within that 23%

male and 10% were female. 17% businessman/women respondent uses sbi bank account

within that 14% male and 3 % female only. 13%professional person uses sbi bank

account within that 10% male and 3% female. 20% respondent are housewife/husband

within that 3% male and 17 % female. 17% respondent are others within that 14% are

male and 3% are female.

23%

14%

10%

3%

14%

10%

3% 3%

17%

3%

33%

17%

13%

20%

17%

MALE (19)

FEMALE(11)

TOTAL(30)

42

3. DISTRIBUTION OF THE CUSTOMER AS PER THEIR INCOME.

According to my survey 30% of the respondent uses sbi bank account who’s income was below

Rs.1,00,000 within that 10% male(no. of respondent are 3) and 20% female(no. of respondent

are 6). 40% of the respondent uses sbi bank account who’s income was between Rs.1,00,000 –

Rs.2,50,000 within that 30% respondent are male (no. of respondent are 9) and 10% female( no.

of respondent are 3). 30% of the respondent uses sbi bank account who’s income was between

Rs.2,50,000-Rs.4,00,000 within that 23% respondent are male (no. of respondent are 7) and 7%

female( no. of respondent are 2).

10%

30%

23%

0%

20%

10%

7%

0%

30%

40%

30%

0%

RS.1,00,000 (9) RS.1,00,000 -

RS.2,50,000 (12)

RS.2,50,000 - RS.

4,00,000 (9)

ABOVE RS.4,00,000

MALE(19)

FEMALE(11)

TOTAL(30)

43

4. MOST IMPORTANT REASON FOR CHOOSING SBI BANK.

When question was asked what are the most important reason for choosing sbi bank then

30% said because of it is near by their location, 24% said because of its service, 17%

choose because they have traditional account, 10% choose because of its brand name.

10% choose because of Atm. 6% for net banking, 3% for any other reason.

17%

10%

24%

10%

6%

30%

3%

STATE BANK OF INDIA

TRADITIONAL ACCOUNT

BRAND NAME

SERVICE

ATM

NET BANKING

LOCATION

OTHER

44

5. Services taking from bank.

According to my survey 83% of respondent uses sbi bank for saving account, 10% uses

for the current account and 7% for any other services.

83%

10%

0%7%

SAVING A/C

CURRENT A/C

NRI A/C

ANY OTHER

45

6. SERVICES SATISFACTION.

When question was asked which service satisfies you most then 40% said its ATM

because it is easy to use and nearby their location.10% Think that is net banking is quite

better. 7% are satisfied with about interest rate which is offered by the bank. 7%think

cheque get clear very early and 7% think it is quite easy to take loan from SBI bank .7 %

think its phone banking service is really good and rest of the 22 % satisfied with its other

services.

40%

7%7%

10%

7%

7%

22%ATM

LOAN

EARLY CHEQUE CLEARANCE

NET BANKING

PHONE BANKING

INTEREST

ANY OTHER

46

7. REASON FOR TYPICALLY VISITING THE BRANCH.

According to my survey 74% respondent visits the branch for making deposit.17% visits

for to the enquiry about balance. 3% to withdraw cash and rest of 3% for any other

reason.

74%

0%17%

6% 3%TO MAKE DEPOSIT

TO GET ADVICE FOR

INVESTMENT

TO ENQUIRY ABOUT BALANCE

TO WITHDRAW CASH

ANY OTHER REASON

47

8. Q.] If you are provided with better service by optional bank. Would you like to

move to other bank .

A.]

When question was asked would you like to move other bank if you are provided with

good services then 64% wants to move in another bank while remaining 36% want to

stay with the bank.

64%

YES (19)

NO (11)

48

9. Q.] Are you satisfied with your financial transactions with the bank?

A.]

According to my survey 36% of respondent said that they are very satisfied with the

financial transactions of the bank while 30% said that they are happy with its services.

24% think its services are quite satisfied while remaining 10% are not satisfied with its

services.

36%

30%

24%

10%

VERY SATISFIED (11)

SATISFIED (9)

SOMEWHAT SATISFIED (7)

DISSATISFIED (3)

49

10. Q.] When do you think of your bank what comes first in your mind.

A.]

When question was asked what comes first in your mind about SBI bank 63% said it has wide

branch network. 17% thinks its customer services. 13% said its personalized services and 7%

think its computerized banking.

13%

63%

17%

7%

PERSONALIZED SERVICE

WIDE BRANCH NETWORK

CUSTOMER SERVICE

COMPUTERIZED BANKING

50

11. Q.] Are you able to use banking services online?

A.]

From the above table 40% respondent (no. of respondent are 12) of its customer are able

to use internet banking service while 60% (no. of respondent are 18) of respondent are

not able to use.

40%

60%

YES (12)

NO (18)

51

12. Q.] What is the major purpose for which you use the online banking?

A.]

According to my survey 40% (total no. of respondent are12 out of 30) of its customer

who use internet banking of which 16%(no. of respondent are 2 out of 12) use online

banking to book tickets,33% (no. of respondent are 4 out of 12) use for to make bill

payment,43%( no. of respondent are 5 out of 12) use for checking balance only rest 8%

(no. of respondent are 1 out of 12) use for other services like mobile recharge.

16%

33%

43%

8%

ONLINE TICKET BOOKING (2)

ONLINE BILL PAYMENT (4)

BALANCE CHECK (5)

ANY OTHER (1)

52

13. Q.] Are you satisfied with online banking?

A.]

According to survey 58% people are satisfied with its services while 25% are not

satisfied and remaining 17% are confused .

58%25%

17%

YES

NO

CANNOT SAY

53

14. Q.] What is your feedback regarding the bank’s Customer Service Representatives?

A.]

When question was asked feedback of its customer services representative 37% people think

they are answer call quickly, 13% think they have good knowledge about banking product, 17%

people think its customer service representative are well aware about its banking services, 13%

people think they handle customers query very nicely and rest 20% thinks there communication

skill is good.

37%

13%17%

13%

20% ANSWER CALLS QUICKLY

KNOWLEDGE ABOUT BANKING

PRODUCT

KNOWLEDGE ABOUT BANKING

SERVICES

BANKING ISSUES HANDLED

QUICKLY

GOOD COMMUNICATION

54

15. OVERALL SATISFACTION OF THE CUSTOMER.

When question was asked about of its services, product, customer relationship 37%

people rated SBI is excellent in its offering, 23% people rated it as good and they are happy with

its overall services, 13% rated it as satisfactory but they are not much satisfied with some of its

services, 20% people rated it as average because they are happy with only its few services and

rest 7% rated it as below average.

37%

23%

13%

20%

7%

EXCELLENT

GOOD

SATISFACTORY

AVERAGE

BELOW AVERAGE

55

CHAPTER:-4

CONCLUSION AND SUGGESTION OF THE STUDY

56

The banking sector in India is undergoing major changes due to competition and the advent of

technology. The customer is looking for better quality services which enhance his/her satisfaction. From the above analyses, it is evident that SBI has many positive

features and the customers are mostly satisfied with the services offered. In spite of this fact, it has been observed that many customers are not aware of all sort facilities provided by SBI.

Though this study can’t provide conclusive evidence to determine particular courses of action and further research will be required to provide evidence. But the management of SBI

(MUMBAI) should consider the findings and take all necessary steps for further research and if they think that the customers of SBI are homogeneous in their choice and preferences, they may consider the following recommendations to gain more customer based and

achieve more customer satisfaction along with maintaining existing customers’ delights

The management of SBI should conduct more product and services awareness campaign.

They should increase the level of providing personal attention to individual customers.

In delivery of quality service in banks, what matter are speed, accuracy, promptness, reliability, individualized attention, etc. Better results can be

achieved through proper use of relevant banking technology.

The SBI Management should critically evaluate the deviation in means in order to create balance in all dimensions of customer satisfaction measurement

tools.

The customer satisfaction in terms of service quality is a relational marketing

paradigm. The relationships are mostly viewed from the perspective of the firm providing services. For services firm in this case the banks, building strong relationship is important for improving customer satisfaction through service quality.

Banks should continually assess and reassess how customers perceive bank

services so as to know whe the r the bank mee ts o r exceeds o r is be low the expectations of their customers. Such an appraisal, however, is a tedious task because customer service is complex in nature and dynamic in action.

57

Questionnaire:-

NAME:-……………………………………………………………

GENDER:- MALE FEMALE

AGE:- <18 18 – 25 25 – 40 40 – 60 60 ABOVE

OCCUPATION:- salaried businessman professional housewife others

INCOME:- <100000 100000 – 250000 250000 – 400000 400000 Above

1. What was the single most important reason that you choose SBI bank.

I have traditional bank account with same bank

The brand name of the bank

The excellent service provided by this bank

Atm service

Net banking facility

Location advantage

Any other

……………………………………………………………………………………………..

2. which type of services you are taking from the SBI bank.

Saving account current account NRI account fixed deposit other

(………………………)

3. since how many year you are dealing with SBI bank.

<1 year 1 to 2 year 2 to 3 year 3 to 4 year 4 to 5 year more than 5 year

4. Does your bank have core banking facility for the customers.

Yes No Not Aware

58

5. Which service satisfy you most.

ATM loan early cheque clearance net banking phone

banking mobile banking interest package any other

(…………………………………………………………….)

6. What is the main reason that you typically visit your Branch.

(Please choose the single most important reason).

To make deposit

To get advice for investment option

To enquiry about balance

To withdraw cash

Any other please specify

(………………………………………………………….……………………..)

7. If you are provided with better service by optional bank. Would you like to move to other

bank.

Yes No

Why??

………………………………………………………………………………………………

……………………………………………………

8. Are you satisfied with your financial transactions with the bank?

Very satisfied Satisfied Somewhat satisfied Dissatisfied

9. Do you use the service of alternative bank.

Yes No

10. What do you feel about overall service quality of your bank.

Excellent very good good average poor

11. Would you recommend this bank to your friends, relatives, associates.

Yes No

Why??

…………………………………………………………………………………………………

………………………

59

12. When do you think of your bank what comes first in your mind.

Personalized service Wide branch network Customer service

computerized banking Core banking

13. Do you always get prompt service whenever you visit the branch?

Always Often Sometimes Rarely Never

14 . How quickly were your banking problems and issues addressed by the bank staff?

Immediately Within 24 hours Within 48 hours Within 3-5 business days

More than a week

15. Are you able to use banking services online?

Yes No

16. What is the major purpose for which you use the online banking?

Online Ticket Booking Online Bill Payments Balance Check Request for a

cheque book

Others…………………………………………………………………………….

17. Are you satisfied with online banking?

Yes No cannot say

18. What is your feedback regarding the bank’s Customer Service Representatives?

Answer calls quickly Knowledge about banking products Knowledge about

banking services Banking issues handled quickly Good communication

skills

Suggestion if any

………………………………………………………………………………………………

………………………

Thank you very much for your valuable time and cooperation.

60

BIBLOGRAPHY:-

http://iosrjournals.org/iosr-jbm/papers/Vol15-issue1/J01516086.pdf

https://www.sbi.co.in/portal/web/about-us/about-us

http://en.wikipedia.org/wiki/State_Bank_of_India