summer training report college

8/3/2019 Summer Training Report College

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SUMMER TRAINING REPORT

ON

COMPARITIVE ANALYSIS OF LIABILITIES PRODUCTS OFDHANLAXMI BANK TO VARIOUS OTHER BANKS

SUBMITTED TO: - SUBMITTED BY:-

Mrs. Sonika Gargi Vikas Varshney

Faculty of Finance Roll No: - MBF201021

AIT-School of Management PGDM (B&F)

APEEJAY INSTITUTE OF TECHNOLOGY,

SCHOOL OF MANAGEMENT

GREATER NOIDA.


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DIRECTORS CERTIFICATE

This is to certify that research project title COMPARITIVE

ANALYSIS OF LIABILITIES PRODUCT OF DHANLAXMI BANK TO

VARIOUS OTHER BANKS is carried by VIKAS VARSHNEY student

of PGDM 3 rd trimester (Banking & Finance) at AIT School of

Management, Greater Noida under the supervision of Prof. D.N.

BAJPAI, Executive Director.

This is an original work carried out by the said student to the best

of my knowledge and I recommended for the submission of this

research project.

Prof. D.N. BAJPAI

Executive Director

AIT-School of Management

Greater Noida.


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FACULTY GUIDE CERTIFICATE

This is to certify that VIKAS VARSHNEY PGDM 3 rd trimester student of

Apeejay Institute of Technology, school of Management, Greater Noida

has under gone summer training at DHANLAXMI BANK for a period of

two months from 1 st June 2011 to 30 th July 2011.

During the training period, the student worked on the summer project

entitled

COMPARITIVE ANALYSIS OF LIABILITIES PRODUCT OF

DHANLAXMI BANK TO OTHER VARIOUS BANKS which was

suggested and awarded by the Mr. VIPUL GUPTA (BRANCH MANAGER,

LAJPAT NAGAR) in the subject area of MARKETING AND FINANCE

The survey, data collection and analysis work for preparing the summer

training project report has been carried out by the student in the partial

fulfillment of the requirement for the award of Post Graduate Diploma inManagement by Apeejay Institute of Technology, School of Management,

Greater Noida, which is approved by All India Council of Technical

Education

AICTE, Government of India.

Mrs. Sonika Gargi

Faculty, AIT-School of Management

Greater Noida.


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ACKNOWLEDGEMENT

I would like to express my sincere thanks to the management of

DHANLAXMI BANK who gave me the opportunity to work and study in

such an esteemed organization.

I express my thanks to MR. VIPUL GUPTA (Branch Manager,

Lajpat Nagar) and MR . GAURAV GUPTA (Relationship Manager) of

Dhanlaxmi Bank. Company under whose constant guidance I completed

my project. I thanks to my parents who has supported me in building my

carrier.

I also express my gratitude to MRS. SONIKA GARGI (Faculty

Guide). Last but not the least, I would like to thank all the respondents for

giving their precious time and relevant information and experience, I

required, without which the project would have been incomplete.

VIKAS VARSHNEY


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STUDENT DECLARATION

I hereby certify that the data collection and analysis work related to

summer training project report on COMPARITIVE ANALYSIS OF

LIABILITIES PRODUCTS TO DHANLAXMI BANK TO OTHER VARIOUS

BANKS has been carried out exclusively on my effort under the guidance

of Mr. Gaurav Gupta, along the guidance of AIT School of Management.

VIKAS VARSHNEY

PGDM (BANKING & FINANCE)

AIT- School of Management,

Greater Noida.


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CONTENTS

Page no.

Executive summary 1

1. Introduction 4

1.1 Company profile 5

1.2 A word about the competitors 11

2. Review of literature 17

3. Objectives 19

4. Scope 20

5. Methodology 21

5.1 Sample 21

5.2 Research instrument 22

6. Data collection & interpretation 23

6.1.1 Comparative analysis of Dhanlaxmi salary 34

accounts.6.1.2 Comparison of Dhanlaxmi savings account with 42


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other banks.

6.1.3 Comparison of Dhanlaxmi current account with 50

other banks.

6.2.1 SERVE QUAL results 60

6.2.2 Formulation of Hypothesiss 66

6.3 SWOT analysis 76

7. Conclusion 79

8. Recommendation 80

9. Limitation 82

References 83

Annexure 84

Abbreviations 87


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EXECUTIVE SUMMARY

It can be seen in the present scenario of banking sector i.e. post recession

period that strong market players are striving to uncover market

potentials and provide all services, combining innovation, quality,

personal touch and flexibility in delivery so as to attract customers . The

growing competition with in the nationalised banks, private banks and the

foreign players are increasing the expectations of the customers like the

catalyst. In such a scenario the customer would continue to be the centre-point of the business strategy. In short, you lose touch with the customer,

and you lose everything. In middle of this post recession period certain

events had such happened that equilibrium had once again shifted to

nationalized banks, so private bankers are trying to build up on their

competencies & coming up with new innovative products to regain their

previous customers as well come up with new opportunities & rectification

of old mistakes. Keeping in view such stiff competition, its a minisculeeffort from my side under which I have tried to fulfil the following

objectives:

A complete comparative analysis of the salary account of

DHANLAXMI Bank.

To compare the features offered by the savings account of DHANLAXMI Bank with those offered by the others.

To compare the features offered by the current account of

DHANLAXMI Bank with those offered by the others.

To study the service quality of DHANLAXMI Banks salary account.


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To do a SWOT analysis of DHANLAXMI Bank.

For the comparison I have visited some of the banks and used the internet

for the data; while to measure the service quality I have conducted asurvey for the customers of Dhanlaxmi Bank and collected data from

them. And based on this I have done the SWOT analysis.

The findings of the research lead to following conclusion:

1. Dhanlaxmi Bank has a strong brand association in Kerala since

1927. But so far the bank has not been able to establish it self so

well here, in the minds of people here in Delhi, unlike its

competitors.

2. The bank is facing the problem of being unpopular due to lack of

its branches and ATMs are not in sufficient numbers all over India.

3. Even in the comparative analysis it was found that most of the

product features are almost the same, rather in some instances

Dhanlaxmi Bank is superior for e.g.:-

i) It offers PAP cheque books to its customers where as other

banks dont.

ii) It offers 2 free DD/PO to its customers where as banks like

standard chartered dont.

iii) It opens the salary accounts even at lower averages where

as other banks are stringent in this respect.

5. Similarly in some cases some features of other banks are

superior, for e.g.:-


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i) YES bank gives unlimited ATM transactions with its partner

banks to all of its customers where as it offers only to orange

customers.

ii) ICICI facilitates immediate transfer of funds which is not the

case with Dhan Laxmi Bank.

iii) Customers also complain about its late salary transfer.


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1. INTRODUCTION

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala by

a group of ambitious and enterprising entrepreneurs. It is running with

good progress in Kerala from last 84 years and started his business in

Delhi in 1998.

Dhanlaxmi Bank with its rich heritage has earned the trust and

goodwill of clients in many parts of India and trying to do so in Delhi. It

is due to his strong belief in the need to seek innovation, deliver best

service and demonstrate responsibility, which they have grown from

strength to strength. Be it in the number of customers, the scale of

business, the breadth of their product offerings, the banking

experience they offer or the trust that people invest in them. With

more than 730 touch points across India at our service; their focus has

always been on customizing services and personalizing relations.

Because Dhanlaxmi Bank is growing there business in Delhi, so the

bank is making all its efforts to compete with its competitors in the

best possible way. In its retail banking I got this opportunity to work

and do the comparative analysis of the liabilities products of the bank

and measure its service quality, the reason I was given this project was

the newness of the bank and hence its necessity to be aware of where

it stands as compared to its competitors, how its products differ from

its competitors, and how is it perceived by its competitors. To measure

this perception I used the SERVE QUAL tool and surveyed its

competitors.

As suggested by the faculty guide I compared its features with other

banks namely; ICICI, HDFC, Yes bank, ABN Amro, ING Vysa bank and


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Standard Chartered bank, to increase the knowledge about all the

products and enhance my learning.

Finally I also did an over all SWOT analysis on the basis of data that Icollected and knowledge of the present scenario that I gathered during

my summer internship about the banking sector.

1.1COMPANY PROFILE

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala by

a group of ambitious and enterprising entrepreneurs. It is running with

good progress in Kerala from last 84 years and started his business in

Delhi in 1998.

Dhanlaxmi Bank with its rich heritage has earned the trust and

goodwill of clients in many parts of India and trying to do so in Delhi. It

is due to his strong belief in the need to seek innovation, deliver best

service and demonstrate responsibility, which they have grown from

strength to strength. Be it in the number of customers, the scale of business, the breadth of their product offerings, the banking

experience they offer or the trust that people invest in them. With

more than 730 touch points across India at our service; their focus has

always been on customizing services and personalizing relations.

Vision & Mission

"To become a strong and innovative bank with integrity and social

responsibility and to maximize customer satisfaction and the satisfaction

of its employees, shareholders and the community."

Achievements, Affiliations and Milestones


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Achievements

Serviced business `21,595 crores as on 31 March 2011, comprising

deposits `12,530 crores and advances `9,065 crores.

Earned a net profit of `26.1 crores for the financial year ended 31st

March 2011, with a capital adequacy ratio of 11.8% (Basel II) during

the same period.

Put in place the Real Time Gross Settlement (RTGS) and National

Electronic Fund Transfer (NEFT) systems to facilitate large value

payments and settlements online in real time, on a transaction-by-transaction basis.

Set up NRI Boutiques (Relationship Centers) across nine locations in

Kerala and Tamil Nadu, with plans to open specialized NRI outlets at

potential locations with emphasis on impeccable service levels.

Bank is a major player in micro credit in Kerala and the Bank'soutstanding under micro credit was `266 crores at the end of March

2011.

Attained ISO 9001-2000 certification for the Bank's corporate office

at Thrissur and industrial finance branch at Kochi.

Started his business in Delhi in 2007.

Affiliations

Major Exchange Houses

1. UAE Exchange Centre LLC

2. Al Ahalia Money Exchange Bureau


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Foreign Correspondent Banks

1. Deutsche Bank Trust Company Americas.

2. Wachovia Bank NA- A Wells Fargo Company.3. Commerz bank AG.

4. National West Minister Bank PLC.

Insurance Partner

1. Bajaj Allianz.

Milestones

1927 - Founded on 14 November, 1927, at Thrissur, Kerala

1975 - Set up the first branch outside the home state of Kerala, at

Chennai Mount Road

1977 - Designated as Scheduled Commercial Bank by the Reserve

Bank of India (RBI)

1980 - 100-strong branch network

1986 - Total business of `100 crores

1996 - First public issue. Total business of `1,000 crores

2000 - Installed the first ATM

2002 - First Rights Issue


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2002 - Platinum Jubilee year

2007 - Total business of `5,000 crores. 80th Anniversary year

2008 - Total business of `7,500 crores. Second Rights Issue

2009 - Opened 45 new branches and 102 new ATMs

2010 - Raised `381 crores through QIP in July 2010, Opened 20 new

branches and 280 new ATMs, launched new brand identity; created

platform for a unified image

2011- Launched its 275th branch in Jan 2011; ATM network

expanded to 456, Total asset base for the bank was `14,268 crore,

as on 31.03.2011.

Partnerships

The Dhanlaxmi Bank has an agreement with Bajaj Alliance Insurance

Company Ltd, as their corporate agent. The bank is also a depository

participant of NSDL (National Security Depository Limited) offering Demat

services through select branches. Bank is offering Online trading in

association with Desti money securities. It has partnered AGS Infotech for

installation of ATMs. It offers VISA branded debit and credit cards to

customers.

Credit cards

In March, 2010, the bank launched Dhanlaxmi Bank Platinum and Gold

Credit cards. The bank for the first time in India is introducing a Pay by

Transaction billing mode for credit cards. Under this, instead of a monthly

billing cycle, the interest-free credit period is considered for individual

transactions from the day of purchase. A customer thus enjoys a 45-day


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interest-free credit period on each purchase and does not need to time

the purchase based on the billing cycle .And the service provider for credit

card business is In solutions Global Pvt. Ltd (ISG), ISGs range of end to

end solutions span debit card, credit card, web designing, issuancemanagement, satellite solutions, acquiring management, payment &

settlement management. ISG commenced operations in 1988, is a pioneer

in the payment card industry in India. The company, headquarters in

Mumbai, has become a commander & preferred solutions provider for

bankers in India and Overseas.

ISG influence its domain knowledge in payment processing & skilledsoftware development talent to specific compliance and other

requirements of various types of organizations including Public Sector

Banks, Private Banks, Foreign Banks, International Banks, Cooperative

Banks and Non-Banking Finance Companies in world wide. ISG takes pride

in building strategic long term relationships

Dhanlaxmi Bank has a portfolio of banking solutions and a range of

offerings for people from all walks of life, with a view to making banking

an effortless task. Whether you require a simple savings account or a

sound banking partner, Dhanlaxmi Bank has the perfect solutions and

products to ensure a wealthy future.
http://en.wikipedia.org/wiki/Payment_card_industryhttp://en.wikipedia.org/wiki/Payment_card_industry


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Savings Accounts

Out of the following one can choose the product suiting the most to

their requirements and pockets.

1. Maxi Gain Platinum Savings Account.

2. Maxi Gain Supreme Savings Account.

3. Maxi Gain Classic Savings Account.

4. Dhanam + and ++ Savings Account.

5. Regular Savings Account.

6. Simple Savings Account.

Smart Salary Savings Account

Dhanlaxmi Bank is also giving the facility of salary account to corporate.

Their salary account is named as Smart Salary Savings Account.

Current Accounts


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Small, medium and large businesses alike will find that Dhanlaxmi Bank's

current account offerings come with all the benefits needed to stay ahead

of competition. Whatever the size or scope, one will find a current account

option exclusively designed for him/her.

1. Maxi Gain Current Account.

2. Super Power.

3. Power.

4. Premium Current Account.

5. Suvidha.

6. Regular Current Account.

My project revolves around these liability products, their comparison with

similar products of other banks and study of service quality of the salary

account.

1.2 A WORD ABOUT THE COMPETITORS

ICICI BANK

ICICI Bank was originally promoted in 1994 by ICICI Limited, an

Indian financial institution, and was its wholly-owned subsidiary. ICICI's

shareholding in ICICI Bank was reduced to 46% through a public offering

of shares in India in fiscal 1998, an equity offering in the form of ADRs

listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of

Madurai Limited in an all-stock amalgamation in fiscal 2001, and

secondary market sales by ICICI to institutional investors in fiscal 2001

and fiscal 2002. ICICI was formed in 1955 at the initiative of the World

Bank, the Government of India and representatives of Indian industry. The

principal objective was to create a development financial institution for

providing medium-term and long-term project financing to Indian

businesses. In the 1990s, ICICI transformed its business from a


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development financial institution offering only project finance to a

diversified financial services group offering a wide variety of products and

services, both directly and through a number of subsidiaries and affiliates

like ICICI Bank. In 1999, ICICI become the first Indian company and thefirst bank or financial institution from non-Japan Asia to be listed on the

NYSE.

After consideration of various corporate structuring alternatives in

the context of the emerging competitive scenario in the Indian banking

industry, and the move towards universal banking, the managements of

ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI

Bank would be the optimal strategic alternative for both entities, and

would create the optimal legal structure for the ICICI group's universal

banking strategy. The merger would enhance value for ICICI shareholders

through the merged entity's access to low-cost deposits, greater

opportunities for earning fee-based income and the ability to participate in

the payments system and provide transaction-banking services. The

merger would enhance value for ICICI Bank shareholders through a large

capital base and scale of operations, seamless access to ICICI's strong

corporate relationships built up over five decades, entry into new business

segments, higher market share in various business segments, particularly

fee-based services, and access to the vast talent pool of ICICI and its

subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI

Bank approved the merger of ICICI and two of its wholly-owned retail

finance subsidiaries, ICICI Personal Financial Services Limited and ICICI

Capital Services Limited, with ICICI Bank. The merger was approved by

shareholders of ICICI and ICICI Bank in January 2002, by the High Court of

Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature

at Mumbai and the Reserve Bank of India in April 2002. Consequent to the

merger, the ICICI group's financing and banking operations, both

wholesale and retail, have been integrated in a single entity.


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Today, ICICI Bank is India's second-largest bank with total assets of

`3,793.01 billion at March 31, 2009 and profit after tax of `37.58 billion for

fiscal 2009. ICICI Bank is the most valuable bank in India in terms of

market capitalization and is ranked third amongst all the companies listedon the Indian stock exchanges in terms of free float market capitalisation.

The Bank has a network of about 1438 branches and 4,600 ATMs in India

and presence in 19 countries.

ABN AMRO

On 29 March 1824 King Willem-I issued a royal decree creating the

Nederlandsche Handel-Maatschappij with the aim of reviving trade

between the Netherlands and the Dutch East Indies. In 1964, NHM merged

with De Twentsche Bank to form Algemene Bank Nederland (ABN), while

Amsterdamsche Bank and Rotterdamsche Bank joined to become

Amsterdam-Rotterdam (Amro) Bank. In 1991, these two banks merged as

ABN AMRO Bank. Today, ABN AMRO Bank has a powerful presence in

world markets, building on a tradition of stimulating international trade.

Today, with assets over US $504 billion and an AA credit rating, ABN

AMRO Bank ranks among the top 10 banks in the world in size and

strength. Our international network comprises 4500 branches and offices

in over 320 cities and 76 countries and territories, with over 100,000


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highly qualified staff. As a global bank, we can handle the most

complicated cross-border transactions, yet we also understand the

subtleties of local markets.

HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI's liberalisation of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of 'HDFC Bank Limited', with itsregistered office in Mumbai, India. HDFC Bank commenced operations as a

Scheduled Commercial Bank in January 1995.

HDFC was incorporated in 1977 with the primary objective of

meeting a social need that of promoting home ownership by providing

long term finance to households for their housing needs. It was promoted

with an initial share capital of `100 million. HDFC is a professionally

managed organization with a board of directors consisting of eminent

persons who represent various fields including finance, taxation,

construction and urban policy & development. The primary objective of

HDFC is to enhance residential housing stock in the country through the

provision of housing finance in a systematic and professional manner, and

to promote home ownership. HDFC is ranked 3rd amongst the Asian

banking and finance sector for highest return on equity by Asian money.

Its main goal is to develop close relationships with individual households,

maintain its position as the premier housing finance institution in the

country, transform ideas into viable and creative solutions, and provides

consistently high returns to shareholders & to grow through

diversification. Its most valuable assets are its Human Resources and it is

its constant endeavour to continuously develop them by laying strong

emphasis on their Training & Development. HDFC main focus is on their


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employees career development so that their aspirations can meet

companys goals.

ING VYSYA BANK

ING Vysya Bank Ltd., is an entity formed with the coming together

of Erst while, Vysya Bank Ltd, a premier bank in the Indian Private Sector

and a global financial powerhouse, ING of Dutch origin, during Oct 2002.

The origin of the erstwhile Vysya Bank was pretty humble. It was in

the year 1930 that a team of visionaries came together to found a bank

that would extend a helping hand to those who weren't privileged enough

to enjoy banking services. It is one of the oldest private sector banks

offering banking products and services to retail and corporate customers.

Its business has been organized into Retail Banking and Wholesale

Banking.

Its Retail Banking business comprises four business units namely

Consumer Banking, Small and Medium Enterprises (SME) Agriculture and

Social Banking Unit (ASBU) and Private Banking. Its banking products and

services for retail customers include both loans and liabilities products

and services. It offers a range of credit products including home loans,

automobile loans, commercial vehicle loans, two wheeler loans, dealer

financing, personal loans, debit cards, credit cards, loans against term

deposits and loans against shares. It offers loans and fee-based services

to small and medium enterprises. It finances agricultural activities and

government-sponsored schemes. Its deposit products include demand

deposits (savings and current accounts) and time deposits, with specific

products for customers in various segments, like salary accounts,

accounts for small and medium enterprises and non-resident Indian


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accounts. Our other retail products and services include private banking,

fund transfer facilities and utility bill payment services.

STANDARD CHARTERED BANK

The Standard Chartered Group was formed in 1969 through a

merger of two banks: The Standard Bank of British South Africa founded in

1863, and the Chartered Bank of India, Australia and China, founded in

1853.

Both companies were keen to capitalize on the huge expansion of

trade and to earn the handsome profits to be made from financing the

movement of goods from Europe to the East and to Africa. In 1969, the

decision was made by Chartered and by Standard to undergo a friendly

merger. All was going well until 1986, when a hostile takeover bid was

made for the Group by Lloyds Bank of the United Kingdom. When the bid

was defeated, Standard Chartered entered a period of change. Provisionshad to be made against third world debt exposure and loans to

corporations and entrepreneurs who could not meet their commitments.

Standard Chartered began a series of divestments notably in the United

States and South Africa, and also entered into a number of asset sales.

From the early 90s, Standard Chartered has focused on developing

its strong franchises in Asia, the Middle East and Africa using itsoperations in the United Kingdom and North America to provide customers

with a bridge between these markets. Secondly, it would focus on

consumer, corporate and institutional banking, and on the provision of

treasury services areas in which the Group had particular strength and

expertise.

In the new millennium we acquired Grind lays Bank from the ANZGroup and the Chase Consumer Banking operations in Hong Kong in 2000.


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The Chartered Bank opened its first overseas branch in India, at Kolkata,

on 12 April 1858. Eight years later the Kolkata agent described the Bank's

credit locally as splendid and its business as flourishing, particularly the

substantial turnover in rice bills with the leading Arab firms. When TheChartered Bank first established itself in India, Kolkata was the most

important commercial city, and was the centre of the jute and indigo

trades. With the growth of the cotton trade and the opening of the Suez

Canal in 1869, Bombay took over from Kolkata as India's main trade

centre. Today the Bank's branches and sub-branches in India are directed

and administered from Mumbai (Bombay) with Kolkata remaining an

important trading and banking centre.

2. REVIEW OF LITERATURE


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Measuring Service Quality in Banks: An Assessment of Service QualityDimensions

Service quality has been viewed as a multi-dimensional construct in

marketing literature. Parasuraman, Zenithal, and Berry (1988) have

conceptualized a five dimensional model. The five dimensions are

reliability, responsiveness, empathy, assurance and tangibility. Their

measurement instrument SERVQUAL is based on the five dimensional

model. Gronroos (1982) had identified two service quality dimensions

functional quality and technical quality. Functional quality represents the

perception of the manner in which the service is delivered. Technical

quality on the other hand represents the outcome of the service act or

what the customer receives in the end. Brady and Cronin (2001) term it as

outcome quality. The five dimensional model of Parasuraman et al. which

has become almost the standard way of measuring service quality,

essentially captures the functional quality. There is more attention on the

functional service quality, particularly in the more developed economies.

But many products and services in the emerging markets compete at their

expected product levels (Kotler, 2003). In some industries, the

competition is at the basic product levels or core benefits. Market

differentiation can be achieved through the way products and services are

delivered; creating satisfying customer experiences about the company,

employees and the delivery process; but this may not create the

necessary competitive advantage for growth. Even in the business

environments where the competition is at the augmented product level, it

would be pertinent to know the relative strengths of industry specific

aspects of what is offered versus how it is offered. Whether a below

expectations service outcome is considered more important by customers

or if an improper service delivery process and employee interaction is

viewed more serious. Focus only on functional quality dimensions of

service quality, therefore appears to be misplaced. Only a few studies

have recently tried to empirically explore the outcome dimension of

service quality (Kang and James 2004; Jain 2005). The present study fills


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the gap and looks at the relative importance of service quality dimensions

in the Indian banking sector.

The study that was conducted had final sample consisting of 120usable questionnaires. The primary data was collected by personally

administering the questionnaire. Mean age, household income and

education level of the sample is 29 years, `21, 000.00 and some college

education respectively. Government service, private service and own

business is represented by 25, 25 and26.5 percent of the participants. The

sample had 91% male respondents. Nationalized banks represent 97% of

the banks patronized by the participants . Data was collected in the month

of JUNE 2011.

Evidence of convergent validity was examined through simple

correlation with the independently measured overall quality score.

Corresponding correlations with independently measured overall value

score were used for observing discriminant validity. It was found that the

service quality dimensions had internal consistency; however outcome

quality could not establish convergent validity and discriminant validity

conclusively. The results buttress the multidimensional structure of

service quality. Though some service quality dimensions are found to be

similar to the ones posited in five dimensional model, the model as such is

not supported in banking services. As expected, in the study, the

functional quality dimensions of responsiveness, assurance, empathy and

tangibles do not have much significance for customers. Results however

do not supports the proposition that outcome quality dimension would

emerge to be the important dimension. Reliability is found to be the vital

dimension in customers perception of service quality.

The findings of this study have important managerial implications.

Customers regard reliability to be the most important dimension of

services in banks. Reliability dimension is the descriptor of the functional

quality and outcome quality (Brady and Cronin, 2001). This implies that


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the banks should be able to perform what they purport to perform

whether it is the functional quality aspect or the outcome quality aspect.

Ignored in widely used measurement instruments, outcome quality

features such as there should not be queues for withdrawals, makingdemand drafts etc have been found to be lagging behind the customers

expectations and therefore warrant improvement. A moderate sample and

a non parsimonious scale are some of the limitations of the study.

3. OBJECTIVE OF THE STUDY:

The objectives of the project are:

To conduct comparative analysis of the Liabilities Products of

Dhanlaxmi Banks with other competitive banks.

To study the service quality of Dhanlaxmi Banks corporate salary

account.

To conduct a SWOT analysis of Dhanlaxmi Bank.


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4. SCOPE

The project is mainly concentrated on the comparative analysis of

Dhanlaxmi Bank products with similar products of other banks namely

ICICI Bank, HDFC Bank, ABN AMRO Bank, ING Vysa and YES Bank and

SWOT analysis. It also includes the service quality delivered to and

perceived by its customers using the servequal tool.

This would help the bank to measure its standing as compared to its

competitors and find out where it lacks and needs improvement. The

survey conducted on its customers of liabilities products provided

valuable information as, what features are liked by them and which are

not, and what are the areas where they feel Dhanlaxmi Bank needs

improvement. This exercise also made its customers feel that Dhanlaxmi

Bank wants to improve and is looking forward to their feedback so in a

way it helped in improving its relationship with its customers.


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5. METHODOLOGY

1. For the comparative analysis of

a. Salary account

b. Savings account

c. Current account

I visited the banks to meet bank personnel who could guide me

about the various features offered by them as part of their liabilityproducts.

2. A well documented service quality model of Parasuram

et.al.(1985) was used as a conceptual framework for measuring service

quality in Dhan Laxmi Bank. Here the model has helped us to analyze the

gap between the service quality expected by the management and its

actual perception by the customer.

3. With the help of data so collected a SWOT analysis was done after

visiting various banks, talking to various people through personal

interviews.


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5.1 SAMPLE

The sampling frame was provided by the bank from its data base out of

which 6 companies were surveyed consisting of approximately 10

employees each. The study was conducted with the cooperation of the

management and Dhanlaxmi Banks customers who took the valuable

time out of their schedules to fill my questionnaire and give their feedback

about Dhanlaxmi Bank services.

5.2 THE RESEARCH INSTRUMENT

The questionnaire used in this study followed the five basic dimensions of

SERVEQUAL instrument developed by Parasuram. The instrument includes

7 items on special instruction from my industry guide because he wanted

the questionnaire to be as short as possible so that the customers are not

bothered much and they dont feel irritated while answering them. Thecustomers and management were asked to mark their levels of perception

and expectation respectively on a five-pointer scale. The gap hence found

between the perception and expectation was administered consistently to

find out the meaningful results.

The questionnaire is given in the annexure.


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6. DATA COLLECTION AND INTERPRETATION

For the first part which is the comparative analysis of liability

products, data was collected by visiting the banks and finding on their

respective websites.

For the second part i.e. SERVE QUAL, primary data from 60

respondents was collected in 6 companies to measure the service quality

gap. The number of respondents from the management side was 10,

which were the part of corporate salary team. Personal interviews with

some employees were also conducted to know the problems they

encountered in detail. The response rate both at the companies I visited

and at the bank was 100%. Reliability was tested using one way ANOVA to

test whether any significant difference exist in the perceptions and

expectations of customers and management respectively for all the

parameters of SERVE QUAL model and are shown separately.

And finally on the basis of the findings of the study a SWOT analysis

was conducted.


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The names of the companies from which the data was collected are

given in appendix.

1. Given below are the features of different liability products offered by

Dhanlaxmi Bank and after ward their comparison with similar

products of other banks namely ICICI Bank, HDFC Bank, ABN AMRO

Bank, ING Vysya Bank and YES Bank.

a) SMART SALARY SAVINGS ACCOUNT

Basically this account is for the corporate employees. This

account gives the benefit of salary account and savings account.

The Smart Salary Savings Account bundles free services, security

and convenience for employees while providing easy and

convenient salary deposit and management processes for

employers.

FEATURES :-

Free 5 NEFT & 5 RTGS from branch per month Free 2 Outstation cheques collection per month Free 2 Demand Drafts at bank location & 2 Demand Drafts free at

Correspondent bank locations per month (covering more than 900

locations)

Free 2 Pay Orders per month Free 1 At Par Cheque Book per quarter


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Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Free Anywhere Banking - unlimited non-cash transactions

Door Step Banking facility Average Monthly Balance Nil

b) SAVINGS BANK ACCOUNT

1. Maxi Gain Platinum Savings Account

The Maxi Gain Platinum Savings Account comes with special features and

privileges designed for preferred customers like you.

FEATURES

Sweep-in Sweep-out option available Free unlimited NEFT/RTGS from branch & net banking Free 1 At Par Cheque Book per quarter Free Cash deposit/withdrawal up to `2 lakh per day at non base

branch


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Free 5 Demand Drafts at bank location & 5 Demand Drafts free at

Correspondence bank location per month (covering more than 900

locations)

Free 5 Pay Orders per month Free 2 Outstation cheques collection per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Higher limit of withdrawal through ATM & POS of `75,000/- Free Anywhere Banking - unlimited non-cash transactions Free Door Step Banking Average Monthly Balance `25,000/-

2. Maxi Gain Supreme Savings Account

The Maxi Gain Supreme Savings Account provides a complete banking

experience with a host of benefits.

FEATURES

Free 10 NEFT & 10 RTGS from branch per month Free Cash deposit/withdrawal up to `1 lakh per day at non base

branch


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Free 3 Demand Drafts at bank location & 2 Demand Drafts Free at


locations)

Free 3 Pay Orders per month Free 1 At Par Cheque Book per quarter Free 2 Outstation cheque collection per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Higher limit of withdrawal through ATM & POS of `50,000/- Free Anywhere Banking - unlimited non-cash transactions Free Door Step Banking Average Monthly Balance `10,000/-

3. Maxi Gain Classic Savings Account:

The unique feature of Maxi Gain Classic Savings Account is an Auto

Sweep-in Sweep-out facility which maximizes your returns with easy

liquidity. Above a certain limit your balances are transferred into a FD

and can also be swept back to your account. Not only that, the lowest

rate FD gets liquidated first to ensure maximum gains for you.

FEATURES

Convenience of Anywhere, Anytime Banking Free International VISA Debit Card Free Internet Banking Free Phone Banking and SMS Banking Free Quick remittance solution (NEFT / RTGS ) Free Demand Draft & Pay Orders Free Outstation Cheque Collection facility Free Payable- At- Par Cheque book


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Average monthly balance `5,000.

4. Dhanam + and ++ Savings Account

Dhanam+ & ++, combines the benefits of a term deposit with the

flexibility and convenience of a savings bank account.

FEATURES

Flexible term deposits with interest reduction on premature closure Minimum deposit of `5,000 with subsequent multiples of `1,000 Free cheque book with a savings bank account or a certificate of

deposit account Interest on eligible units paid on due date at prevailing term deposit

rates of 46/91 days as per Income Tax Act provisions `500 minimum remittance amount from the fixed deposit; amounts

in excess rounded off to the nearest `100 `500 minimum withdrawal by cheque only; amounts in excess

rounded off to the nearest `100 No interest paid if deposit is closed within 15 days from the initial

investment

5. Regular Savings Account

The Regular Savings Account combines security and easy access

through our pan-India branch network, seamless banking channels and

access to the ATM networks of other banks.

FEATURES

Free 1 Payable at Par Cheque Book


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ATMs Free Anywhere Banking - unlimited non-cash transactions

Door Step Banking facility Average Monthly Balance `1,000/-

6. Simple Savings Account

The Simple Savings Account is a zero-balance, no-frills account that

simplifies banking for people seeking basic deposit and withdrawalfacility.

FEATURES

Free cash withdrawal from any other banks ATM Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Free Anywhere Banking - unlimited non-cash transactions 5 Cash transactions free per month Average Monthly Balance Nil

CURRENT ACCOUNT

1. Maxi Gain Current Account

The Maxi Gain Current Account is designed to suit your business banking

requirements. It offers multiple solutions that enable seamlesstransactions and helps you to mobilize funds faster with maximum


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convenience. Packed with a host of powerful features like Auto Sweep-in &

Sweep-out where lowest interest rate FD broken first, unmatched

remittance services and anytime, anywhere banking, this account ensures

that your money always keeps working for you.

FEATURES

Auto Sweep-in & Sweep-out - Lowest interest FD liquidated first Unmatched remittance services Anytime, anywhere banking Free Unlimited Cheque Collections at Bank Locations Free International Visa Debit Card (only for proprietorship) Free ATM withdrawal anywhere in the world Enhanced Limit for ATM withdrawal / POS purchases Free Door Step Banking, Internet Banking & SMS Banking Free Stop Payment facility Online Bill Payment through Dhanlaxmi Bank Instapay Average monthly balance `500,000

2. Super Power

The Super Power Current Account is designed for the elite customerlike you to enjoy smooth flow of funds from multiple locations.

FEATURES

Free unlimited NEFT/RTGS from branch & net banking Free Cash deposit up to `2 lakh & withdrawal up to `5 lakh per day

at non base branch Free Outstation cheque collection at Dhanlaxmi Bank locations


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Free unlimited Demand Drafts at bank location & 10 Demand Drafts

free at Correspondent bank locations per month (covering more

than 900 locations)

Free 25 Pay Orders per month Free 4 payable at par Cheque Books per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Higher limit of withdrawal through ATM & POS of `1,00,000/- Free Anywhere Banking - unlimited non-cash transactions Free 3 stop payment requests per month Free Door Step Banking Average Monthly Balance `3,00,000/-

3. Power

The Power Current Account is ideal where you can manage your

finances across different locations with just a single account.

FEATURES

Free 20 Demand Drafts at bank locations & 5 Demand Drafts free at

Correspondent bank location per month (covering more than 900

locations) Free 20 Pay Orders per month Free cash withdrawal up to `1 lakh per day at non base branch Free 15 NEFT & 15 RTGS from branch per month Acceptance of outstation cheques for collection at any branch Free 1 payable at par Cheque Book per month Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Higher limit of withdrawal through ATM & POS of `50,000/- Free Anywhere Banking - unlimited non-cash transactions


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Free Door Step Banking Average Monthly Balance `50,000/-

4. Premium Current Account

An efficient current account is crucial to the growth of every evolving

business. It needs to be robust and at the same time flexible, to

support your growth as your business expands. At Dhanlaxmi Bank we

understand these demands on your business and have designed a

current account that addresses your needs comprehensively. The

Premium Current Account is built with the host of powerful features

and requires an average monthly balance of `20,000 only. So your

plans can take flight with greater ease.

FEATURES

Unlimited NEFT/RTGS Free from net banking 10 NEFT/RTGS Free from branch & net banking Free Cash deposit & withdrawal up to `50,000 per day at non base

branch Outstation cheque collection at Dhanlaxmi Bank locations 10 Demand Drafts free at bank location & 2 Demand Drafts free at


locations) Free 1 payable at par Cheque Books per Quarter Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Higher limit of withdrawal through ATM & POS of `50,000/- Free Anywhere Banking - unlimited non-cash transactions Door Step Banking


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Average Monthly Balance `20,000/-

5. Suvidha

The Suvidha Current Account is a zero-balance account that provides

complete operational flexibility for everyday business transactions.

FEATURES

Free 10 NEFT & 10 RTGS from branch per month Free 1 'payable at par' Cheque book Free 10 DDs & 10 POs per month Acceptance of outstation cheques for collection at any branch. Free Debit Card giving access to Dhanlaxmi Bank & Partner bank

ATMs Free Anywhere Banking - unlimited non-cash transactions Door Step Banking facility Average Monthly Balance Nil

Terms and Conditions:

25 free transactions (any combination of the following) each month:


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o Issue / Cancellation / Revalidation / Duplicate Demand Drafts /

Pay Orders of `1 lakh or above

o Payments through RTGS and NEFT

Upfront charges of `2,400 per annum, collected at the time of opening the account

No carry-forward of unused free transactions to subsequent months Nominal charges for transactions above the stipulated 25 free

transactions

6. Regular Current Account The Regular Current Account makes everyday banking for your business

simple and hassle-free through features such as 24-hour account access

and easy tracking of funds.

FEATURES


ATMs Free Anywhere Banking - unlimited non-cash transactions Acceptance of outstation cheques for collection at any branch Door Step Banking facility Average Monthly Balance `5,000/-

COMPARATIVE ANALYSIS


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6.1.1 Comparative analysis of Dhanlaxmi Banks salary account features

with other banks.

I) DHANLAXMI BANK V/S ICICI

FEATURES DHANLAXMI BANK ICICIMin balance to be

Maintained

Zero Zero

ATM card Free of cost to everyaccount holder

Free of cost to everyaccount holder

Internet banking Available AvailableMobile banking Available AvailableOnline transfer of

funds

Available Available

Reimbursement

account

Not Available Available

Cash delivery and

cheque pick up facility

Available Available

Cash withdrawal

charges from ATM

Free up to `50,000 per

day

First withdrawal is

free rest are charged

at `5 per 1000

subject to min. of

`150Debit card fees for

joint account holder

Free `99 per annum

Issue of PAP cheque

Books

1 Cheque book (20

leaves) free per

quarter, `2 per leaf

thereafter

`2 per leaf for every

account holder

*Reimbursement account:


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If you opt to disburse/reimburse the travel, food etc. expenses via

reimbursement accounts, a reimbursement account can be opened

simultaneously along with the Salary Account savings bank account,

which would be linked together with the debit card already held by

your employee.

Though features of both the banks are almost similar but the repute

enjoyed by ICICI is commendable. The reason for this could be the time

span by which ICICI came earlier and cashed on the opportunity of

establishing it self in all the spheres. Other reasons could be:

1. Wide network of its branches and ATMs all over India, which makes it

reliable.

2. Strong brand recognition in the minds of people.

3. A positive point with Dhanlaxmi Bank is that it offers free PAP

cheque books to all of its salary account holders where as it ischargeable in case of other banks.

4. While talking to some customers of ICICI they complained about

some hidden charges, which they said they never mentioned in the

beginning (though they refused to disclose what these charges were.)


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II) DHANLAXMI BANK V/S HDFC

HDFC, one of the very popular brands in terms of corporate sales aswell as other products, has features more or less same as Dhanlaxmi

Bank but enjoys a very reputable stature. Its comparison can be done

on following grounds:

FEATURES DHANLAXMI BANK HDFC BANK Minimum balance to

be maintained

Zero Zero

Statement of accounts Quarterly free of cost

to every employee

Six monthly to classic

salary account

holders

and quarterly to

regular salary account

holdersCash withdrawal

charges from ATM

Unlimited free from

any cirrus network

ATM

First 4 withdrawals

free of cost from any

cirrus network ATMPAP cheque books 1 Cheque book (20

leaves) free per


thereafter

Chargeable for every

Body

Cash delivery andcheque pick up facility

Available Available at selectedCentres

Free phone banking Available AvailableFree net banking Available AvailableIssue of international

debit card

Free to everyone Only for regular salary

account holdersSafe deposit lockers Available Subject to availability


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HDFC again is one of the most renowned and respected banks in our

country and has the advantage of coming in to existence earlier, over

Dhanlaxmi Bank. The brand value that it enjoys is commendable and it

seems that it is one of the reasons why people prefer HDFC overDhanlaxmi Bank. Apart from this other reasons contributing to it could be:

1. Wide network of its branches and ATMs all over India, which makes it

reliable.

2. Strong brand recognition through advertisements and other sources.

III) DHANLAXMI BANK V/S YES BANK

FEATURES DHANLAXMI BANK YES BANK Minimum balance to

be maintained

Zero Zero

ATM card Free of cost to everyaccount holder

Free of cost to everyaccount holder

ATM transactions from

other banks


day

N number of

withdrawals free of

cost from any

masters

network.Reimbursement

savings account for

Expense

reimbursement


PAP cheque books 1 Cheque book (20

leaves) free per


thereafter

Not available

Cash delivery Available AvailableInternet banking Available Available, chargeable


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Mobile banking Available Available, chargeableFinancial planning for

all employees once a

quarter


Free e-mail alerts Available AvailableIssue of international

debit card

Free for every

employee

Free for selected

Employees

Dhanlaxmi Bank and Yes Bank are not very old in Delhi and both are

striving for existence. Though within a short span, Dhanlaxmi Bank has

gained a strong foothold but still it has a long way to go.

A lot of facilities of Dhanlaxmi Bank is similar as Yes Bank but they

are not similar on many grounds which are as follows:-

Dhanlaxmi Bank is issuing PAP Cheque book to its entire customer

without charging any cost but PAP Cheque book is not available in

the case of Yes Bank.

Dhanlaxmi Bank is issuing International Debit Card to its entire

customer but Yes Bank is issuing International Debit Card to its

selected customers.

IV) DHANLAXMI BANK V/S STANDARD CHARTERED BANK


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FEATURES DHANLAXMI BANK STANDARD

CHARTERED BANK Minimum balance to

be maintained

Zero Zero

ATM card Free of cost to every

account holder

Free of cost to every

account holderATM transactions

From other banks


day

First 4 withdrawals free

of cost from any VISA

electronic card

network.PAP cheque books 1 Cheque book (20

leaves) free per


thereafter

Available

Free phone banking Available AvailableFree net banking Available AvailableStatement of

Accounts

Free quarterly Free quarterly, 59

additional for every

month you required it

extra.Shopping

Convenience

Not available Not available

D.Ds / P.Os Free 2 D.Ds & 2 P.Os

per month

Chargeable

Standard chartered again enjoys a status of a very reputable bank

and has a strong brand value compared to Dhanlaxmi bank. The reliability

factor is quite high in its case; where as people still think quite a lot before

they go for choosing Dhanlaxmi bank. As far as comparison is concerned it

can be seen that


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i. Standard Chartered Bank offers 4 transactions free of cost

from VISA electronic card where as Dhanlaxmi Bank offers

free transactions up to `50,000 per day.

ii. Dhanlaxmi Bank offers 2 D.Ds/P.O.s free of cost where as

Standard Chartered doesnt.

V) DHANLAXMI BANK V/S ABN AMRO BANK


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FEATURES DHANLAXMI BANK ABN AMRO BANK Minimum balance to

be maintained

Zero Zero

ATM card Free for every body Free for every bodyATM transactions

From other banks


day

Free with UTI Bank

ATMs, from others it

charges `26 per

transactionPAP cheque books 1 Cheque book (20

leaves) free per


thereafter

Not available

Free phone banking Available AvailableFree net banking Available AvailableStatement of

Accounts

Free, quarterly Free, quarterly

D.Ds/P.Os Free 2 D.Ds & 2 P.Os

per month

Available, but not free

As we can see that features of Dhanlaxmi Bank and ABN Amro bank

are almost same but both the banks are establishing themselves and have

a long way to go.

i. One major difference between them is their ATM facility;

Dhanlaxmi Bank is having its own ATM network while ABN Amro inusing the network of UTI Bank.

ii. Dhanlaxmi Bank offers 2 D.Ds/P.O.s free of cost where as ABN

Amro doesnt.

6.1.2. Comparison of Dhanlaxmi Bank saving account with the savings

account of other banks.


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i) DHANLAXMI BANK V/S STANDARD CHARTERED BANK.

FEATURES DHANLAXMI BANK

STANDARD

CHARTERED BANK NO. OF PRODUCTS Six: Platinum,

Supreme, Classic,

Regular, Simple and

Dhanam + and ++

Two: Aassan and

Axcess plus

Average quarterly

account Balance

`25,000 for Platinum,

`10,000 for Supreme,

`5,000 for Classic and

Regular, `1,000 for

Dhanam + and ++ and

Nil for Simple.

`10,000 for Aassan and

`10,000+ for Axcess

Statement of account Quarterly free Quarterly freeATM usage Maximum up to

`75,000 per day

4 free if average

quarterly balance ismaintained; unlimited

free from standard

chartered.Debit card Free FreeD.D. Free (different

conditions for different

account holders)

Min `50 up to `10,000.

then 0.25% on part

there of.

Pay order (P.O.) Free (differentconditions for different

account holders)

`75 for Aassan and `50for Axcess.

Branch transaction Free unlimited. Free, and `50 if

average quarterly

balance is not

maintained.Cheque books Free Free, otherwise 50

Balance enquiry Free `20


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ii) DHANLAXMI BANK V/S YES BANK

FEATURES DHANLAXMI BANK YES BANK NO. OF PRODUCTS Six: Platinum,

Supreme, Classic,

Regular, Simple and

Dhanam + and ++

Two: savings account,

gold savings account.

Average quarterly

account

Balance




Regular, `1,000 for

Dhanam + and ++ and

Nil for Simple.

`10,000 for savings

account and `100000

for gold savings

account.

Fee for non

maintenance

of quarterly average

balance

Nil for Simple, `100 for

Regular, `200 for

Supreme, `400 if AMB

=50%for Platinum and `200

for Classic per month

`300 for savings

account and `600 for

gold saving account.

Statement of account Quarterly free for all. Quarterly free for both.ATM usage Free up to 75,000 on

all the banks in India.

Unlimited free on all

the banks in India.Debit card Free for all `149 for savings

account free for gold

savings account.D.D. Free (different


account holders)

Min `50 then `2.5 per

1000 for savings

account and `1.5 per

1000 for gold savings

account.Pay order (P.O.) Free (different


account holders)

5 free for savings

account and 10 free for

gold savings account,


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per yearBranch transaction Free unlimited 5 transactions for

savings account and 10

transactions for gold

savings account are

free per yearCheque books Free FreeBalance enquiry Free Free

iii) DHANLAXMI BANK V/S ABN AMRO

FEATURES DHANLAXMI BANK ABN AMRONO. OF PRODUCTS Six: Platinum,

Supreme, Classic,

Regular, Simple and

Dhanam + and ++

Two: flex plus and flex

advantage account

Average quarterly

account Balance


`10,000 for Supreme,`5,000 for Classic and

Regular, `1,000 for

Dhanam + and ++ and

Nil for Simple.

`10000 for flex plus

and nil for flexadvantage.

Fee for non

maintenance of

quarterly average

balance


Regular, `200 for


=50%

for Platinum and `200


`300 if its greater than

7500/-, `400 if its

greater than 5000 and

`500 if its less than

5000.

Statement of account Quarterly free Quarterly free, monthly

statement free.ATM usage Free up to 75,000 on


Free on ABN AMRO and

UTI withdrawal,Debit card Free for all `180D.D. Free (different `50 on own branches


54/97


account holders)

0.25% on others

branches.Pay order (P.O.) Free (different


account holders)Branch transaction Free for all FreeCheque books Free for all FreeBalance enquiry Free for all `5 on master card

ATMs

iv) DHANLAXMI BANK V/S ICICI BANK

FEATURES DHANLAXMI BANK ICICI BANK NO. OF PRODUCTS Six: Platinum,

Supreme, Classic,

Regular, Simple and

Dhanam + and ++

Three: category A, B

and C.

Average quarterly

account Balance




Regular, `1,000 for

`5000 for A, `2000

for B, and `1000 for

C.


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Dhanam + and ++ and

Nil for Simple.Fee for non

maintenance of

quarterly average

balance


Regular, `200 for


=50%

for Platinum and `200


`750 per qtr for A & B

and `100 per qtr for C.

Statement of account Quarterly free Free physical

statement per qtr

otherwise `200 per

month for physicalform. Free e-statement

per month.ATM usage Free up to 75,000 on


`20/month for cash

withdrawal & and `60

for same with non

partner banks.Debit card Free for all `99 per annum for all

the products.D.D. Free (different


account holders)

`2 per thousand rupees

or part thereof, subject

to a minimum of `50Branch transaction Free for all `2.50/ thousand,

subject to min of `30

and max of `10000Cheque books Free for all 2 payable at par

cheque books of 25

leaves each free in a

quarter, `50/- for

additional cheque book

of 25 leaves.Balance enquiry Free for all `10 with partner banks

& `25 with non partner

banks.


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v) DHANLAXMI BANK V/S HDFC BANK

FEATURES DHANLAXMI BANK HDFC BANK NO. OF PRODUCTS Six: Platinum,

Supreme, Classic,

Regular, Simple and

Dhanam + and ++

Three products: regular,

savings plus & savings

max; each of which are

further divided into

option 1 and 2. (I have

taken comparative

product that is option 1

of regular savings acc.)Average quarterly

account balance




Regular, `1,000 for

Dhanam + and ++ and

Nil for Simple.

`5000

Fee for non

maintenance of

quarterly average

balance


Regular, `200 for


=50% forPlatinum and `200 for

Classic per month

`750 per qtr .

Statement of account Quarterly free Monthly statements to

be

Collected from branch.

Quarterly statements

sent by postATM usage Free up to `75,000 on First 4 withdrawals free


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all the banks in India. of cost from any cirrus

network ATMDebit card Free for all `100 plus taxesD.D. Free (different

conditions for differentaccount holders)

`50 for amt up to

10000, `75 for amtgreater than 10000 and

up to up 50000, `2.50

per 1000 or part thereof

(Min `150) for amt

greater than 50000Pay order (P.O.) Free (different

conditions for differentaccount holders)

Same as above.

Branch transaction Free for all Free 3 free in the qtr &

`60 per additional

transaction on non

maintenance of Min

balance (cash

deposit/withdrawal)

Cheque books Free for all Free, 5 per leaf on nonmaintenance of Min

balance


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6.1.3. The comparison of Dhanlaxmi Bank current account with similar

product of other banks is given below:

I) DHANLAXMI BANK V/S HDFC BANK

FEATURES DHANLAXMI BANK HDFC BANK Number of products Five: Suvidha, Regular,

Power, Super Power,

Maxi Gain Current

Account.

Four: plus, trade,

premium, and regular

Average monthly

Balance

Nil for Suvidha, `5,000

for Regular, `50,000 for

Power, `3,00,000 for

Super Power, and

`5,00,000 for Maxi

Gain.

`100000 for plus,

`40000 for trade,

`25000 for premium, &

`10000 for regular

Fee for non

maintenance of AMB

Nil for Suvidha, `150

monthly for Regular,

`6000 for plus, `1200

for trade, `900 for


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`400 monthly for

Power, AMB=50% but`50k

& up to `1 lakh `200;

> `1 lakh to less than

Free up to 50 DDs per

month. Above 50

transactions, charges

@ `25/- per DD for

plus, Free up to 30 DDs

per month. Above 30

transactions, charges


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`10 lakh `2/1000 (min.

`250) for Regular and

Power, and Free (sub-

limit of 20 DDs perday) for Super Power

and Maxi Gain.

PO: 10 Pos free

monthly beyond that

25 per PO for Suvidha,

up to `10k `30 ;>

`10k & up to `50k

`100; >`50k & up to `1

lakh `200; > `1 lakh

to less than `10 lakh

`2/1000 (min. `250) for

Regular, 20 POs free

monthly beyond that

same as Regular for

Power, 25 POs free

monthly beyond that

same as Regular for

Super Power and Maxi

Gain.

@ `25/- per DD for

trade; DD Amount Up

to `50,000 charges

`40/- per DD, Above`50,000 and up to

`100,000- `25/-, Above

`100,000- Free for

premium and DD

Amount Up to `50,000

charges `40/- per DD,

Above `50,000 and up

to `100,000- `25/-,

Above `100,000- Free

for regular.

II) DHANLAXMI BANK V/S ABN AMRO BANK

FEATURES DHANLAXMI BANK ABN AMRO BANK Number of products Five: Suvidha, Regular,

Power, Super Power,

Maxi Gain Current

Account.

Three: value + silver

40, value + gold 100,

and value + gold 500.


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Average monthly

Balance




Super Power, and`5,00,000 for Maxi

Gain.

`40000 for value +

silver 40, `100000 for

value + gold 100 and

`500000 for Value +gold 500(daily).

Fee for non

maintenance of AMB



`400 monthly for

Power, AMB=50% but


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network.Issue of debit card Free Not available

Transfer from one

account to other

Free for all Free for all

D.D/P.O. 10 DDs free per monthbeyond that `50 per

DD for Suvidha, up to

`10k `30;>`10k & up

to `50k `100; >`50k

& up to `1 lakh `200;

> `1 lakh to less than

`10 lakh `2/1000 (min.`250) for Regular and

Power, and Free (sub-

limit of 20 DDs per

day) for Super Power

and Maxi Gain.

PO: 10 Pos free

monthly beyond that


up to `10k `30 ;>

`10k & up to `50k

`100; >`50k & up to `1



`2/1000 (min. `250) for


monthly beyond that

same as Regular for

Power, 25 POs free

monthly beyond that

same as Regular for


Gain.

`200000 pm at 0.20%with min of `50 for

value+silver40;

`2000000 pm at 0.15%

with min of `50 for

value + gold 100;

`4000000 pm at 0.15%

with min of `50.


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III) DHANLAXMI BANK V/S STANDARD CHARTERED BANK

FEATURES DHANLAXMI BANK STANDARD

CHARTERED BANK Number of products Five: Suvidha, Regular,

Power, Super Power,

Maxi Gain CurrentAccount.

Five: business plus 25,

business plus,

enhanced businessplus 100, enhanced

business plus 500,

enhanced business

plus 1000.Average monthly

Balance




Super Power, and

`5,00,000 for Maxi

Gain.

It is `25,000, `50,000,

`1,00,000, `5,00,000

and `10,00,000

respectively for the

above products.

Fee for non

maintenance of AMB



`400 monthly for

Power, AMB=50% but


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Issue of PAP cheque

book

1Cheque book (50

leaves) free; `2 per leaf

there after for Suvidha,

`2 per leaf for Regular,1Cheque book (50

leaves) free per month;

`2 per leaf thereafter

for Power, 4Cheque

books (200 leaves) free

per month; `2 per leaf

thereafter for Super

Power and Maxi Gain.

Not available

ATM usage Free usage of

Dhanlaxmi Bank.

Free at standard

chartered bank ATMs

and `50 at visa ATMs

for all.Issue of debit card Free Instead they offer gold

card at an annual fee

of `799 to every one. Transfer from one

account to other

Free for all Free for all

D.D/P.O. 10 DDs free per month

beyond that `50 per


`10k `30 ;> `10k &

up to `50k `100;

>`50k & up to `1 lakh

`200; > `1 lakh to less

than `10 lakh `2/1000

(min. `250) for Regular

and Power, and Free

(sub-limit of 20 DDs

per day) for Super


DD: 0.25% for business

plus 25, 75 per qtr free

for business plus, and

free for the rest.

PO: 75 free per qtr for

business plus 25 and

business plus, and

unlimited for the rest.


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maintenance of AMB monthly for Regular,

`400 monthly for

Power, AMB=50% but


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D.D/P.O. 10 DDs free per month

beyond that `50 per


`10k `30 ;> `10k &up to `50k `100;

>`50k & up to `1 lakh

`200; > `1 lakh to less

than `10 lakh `2/1000

(min. `250) for Regular

and Power, and Free

(sub-limit of 20 DDs

per day) for Super


PO: 10 Pos free

monthly beyond that


up to `10k `30 ;>

`10k & up to `50k

`100; >`50k & up to `1



`2/1000 (min. `250) for


monthly beyond that

same as Regular for

Power, 25 POs free

monthly beyond that

same as Regular for


Gain.

DD:2 Free Per Month

Min-Rs.100 Max- 5000

for CA 25, 5 Free Per

Month subsequent`1.75 per `1000 or part

there of Min- `100 Max-

`5000 for CA 75, 5 Free

Per Month subsequent

`1.50 per `1000 or part

there of Min- `100 Max-

`5000 for CA 200 and

free for CA 500.

PO: 2 Free Per Month

Subsequent 0.75 per

`1000. Min- `75 Max-

`5000 for CA 25, 5 Free

Per Month. Subsequent

0.75 per `1000. Min-

`75 Max- `5000 for CA

75 and free for the

rest.


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SERVEQUAL ANALYSIS

6.2.1 The results of the study include analysis of the perception and the

expectation gap of between the customers and the management

respectively. Here,

Table # 1 the average perception scores of the service quality

experienced by the customers across all the companies is shown.

Table # 2 shows the average expectation scores as per the customers

across all the companies is shown.


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Table # 3 shows the overall gap between the perception and the

expectation.

TABLE # 1

SERVEQUAL DIMENSIONS AND THEIR ITEMS P ScoreTangibles

Extent to which you are satisfied with the services

provided by your bank, like ATM, cheque drop facility,

nearness to the branch, doorstep facilities, and branch

facilities.

6.66


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Assurance

Extent to which you are well informed and aware about

all products and facilities, which are provided by banksliterature and staff.

Responsiveness

Extent to which you are satisfied with the staff of the

bank and their act of helping you in solving your diverse

problems and giving you prompt solution.

Reliability

You feel secure about your possessions and benefits

provided by the bank through various products and

schemes

The banks services are as per the norms and reliable in

all respects.

Empathy

Extent to which you feel that your bank understandsyour needs and gives solutions as per your needs.

Extent to which you feel banks services are made for

you and staff also try to help you in all situations.

6.50

7.90

8.92

8.77

TOTAL 38.75

( Source: Primary data)


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TABLE # 2

SERVEQUAL DIMENSIONS AND THEIR ITEMS E Score

Tangibles

Services provided by Dhanlaxmi Bank, like ATM, cheque

drop facility, nearness to the branch, doorstep facilities,

branch facilities, salary transfer e.t.c.

Assurance

Extent to which your customers are well informed and

7.33


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aware about all products and facilities, which are

provided by banks literature and staff.

Responsiveness

The staff of the bank helps customers in solving their

diverse problems and giving them prompt solution.

Reliability

Customers feel secure about their possessions and

benefits provided by the bank through various products

and schemes.

The banks services are as per the norms and reliable in

all respects

Empathy

The bank understands their customers needs and gives

solutions as per your needs.

Banks services are made as per the customer needs and

staff also try to help them in all situations

6.25

6.91

7.33

9.25

7.16

6.91

TOTAL 51.14

( Source: primary data)


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Table # 3: Aggregated dimensional scores

SERVE QUAL

Dimensions

P score E score Difference

(P-E) Tangibles 6.66 7.33 - 1.33Reliability 6.50 6.25 0.25

Responsiveness 7.90 6.91 0.99Assurance 8.92 8.29 0.63Empathy 8.77 7.04 1.73

( Source: primary data)

To study the service quality of Dhanlaxmi Bank, all those companies

which were surveyed were categorized in to three categories/groups on


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the basis of their average salary uploaded and type of current account,

they have in the bank.

Group 1 had those companies whose average salary was up to`10,000 and no current account.

Group 2 had those companies whose average salary was either

above `10, 000 or were below `10, 000 but had normal current account

also.

Group 3 had those companies whose average salary was either

above `20, 000 or was below `10,000 but had orange current

account also.

So once the data was collected related to perception and

expectation scores and their gap, hypothesis were made on each

parameter to find if there exists any difference between these groups

using one way ANOVA, as far as these five parameters of service quality

are concerned.

6.2.2 FORMULATION OF HYPOTHESIS

1. Ho : There is no significant difference among the groups of companies

with regards to tangibles factor offered by the bank.

Ha : The groups of companies do differ with regards to tangibles

factors offered by the bank.

Here we can see that F value is less than the F crit hence we

accept the null hypothesis that there is no difference between the groups

as far as tangibles are concerned.


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ANOVA:SingleFactor

(TANGIBLES)

SUMMARYGROUPS Count Sum Averag

e

Varianc

e(P-E)

GROUP1

2 -7.8 -0.78 0.49413

6(P-E)

GROUP2

2 -6.68462

-0.6846 0.10414

2

(P-E)GROUP3

2 -3.7 -0.37 0.273778

Source of

Variation

SS DF MS F P-Value F crit

Between

Groups

0.89873

4

2 0.44936

7

1.54588

8

0.23140

1

3.35413

1Within

Groups

7.8485 27 0.29068

5

Total 8.747234

29

Here we can see that F value is less than the F crit hence we

accept the null hypothesis that there is no difference between the groups

as far as tangibles are concerned.

The reasons for such indifference could be:

a) The bank is growing there business in Delhi, though it is trying to give

best of its services but still facilities can be provided in a better manner

when there is a strong network of branches. In NOIDA there is just one

branch of Dhanlaxmi Bank which is not sufficient to serve the customers

in a better manner. So in this case even the bank knows that it lacks and


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needs improvement and has fewer expectations which match the

perception so there is no much difference between the groups.

b) Same is the case with no. of ATMs which even the bank knows so it hasrated itself lower in tangibles.

So in short the main reason for indifference is the familiarity of the

employees of the bank with the problems that bank is facing which has

lowered its expectations.


with regards to assurance factor offered by the bank.

Ha : The groups of companies do differ with regards to assurance

factors offered by the bank.

ANOVA:SingleFactor

(ASSURANCES)

SUMMARYGROUPS Count Sum Averag

e

Varianc

e

(P-E)GROUP1

2 -1.58333

-0.15833

0.03001


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5(P-E)

GROUP2

2 3.807692

-

0.38076

0.044444

(P-E)

GROUP3

2 8.7 -0.87 0.232889

Source of

Variation

SS DF MS F P-

Value

F crit

Between

Groups

5.291493

2 2.64574

6

25.82486

5.39 3.354131

Within

Groups

2.766139

27 0.10245

Total 8.057631 29

Here it can be seen that F value is greater than F critical hence

we reject the null hypothesis and so there exist some difference between

the groups regarding assurance of the bank.

Under reliability it was asked to people if they are informed about

various products and schemes that are launched by the bank through any

means and to this we received different answers and it proved to be a

weak area for the bank in terms this difference.

According to me reasons for this could be:

a) Group 1 companies are generally small companies whose average

salary is not much and the level of education among the employees there,

is not equivalent hence most of them dont even know how to use

internet, which is a common source of informing people.


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b) It was noticed that a lot of the companies are located in Noida and

there is only one branch of Dhanlaxmi Bank in Noida so they wanted some

body to visit them often so that they can get these information easily sothey were not satisfied with the bank in this regard on the other hand

group three companies are generally the call centres whose employees

are tech- savvy and hence get the relevant information on their e-mails.

The banks average expectations are coming to be around 6.25 and the

groups perception were generally lower in case of group 1 and almost the

similar and higher respectively for group 2 and 3 than the same number.


with regards to responsiveness factor offered by the bank.

Ha : The groups of companies do differ with regards to responsiveness

factor offered by the bank.

ANOVA: SingleFactor

(RESPONSIVENE

SS)

SUMMAR

YGROUPS Count Sum Averag

e

Varianc

e(P-E)

GROUP1

2 7.3 0.73 0.109259

(P-E)

GROUP2

2 10.64615 1.0646

1

0.051019

(P-E)

GROUP3

2 13.8 1.38 0.233333

Source

of

SS DF MS F P-Value F crit


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VariationBetween

Groups

2.11311 2 1.0565

5

8.052796

0.0018

08

3.35413

1

Within

Groups

3.54250 27 0.13120

Total 5.655621

29

Here we can see that F value is greater than the F critical hence

we reject the null hypothesis and there exists difference between the

groups.

Under responsiveness the question was regarding the employees that if

they listen to their problems and give them prompt solutions. According to

me for the whole span of two months during which I worked for the bank I

saw that each employee be it of any hierarchy use to listen to problems of

those who came to bank, very sincerely so there is no doubt that they

dont listen. But reasons for the difference in service quality could be due

to following:

a) Some of the companies which are generally small companies are

scattered in NOIDA and Greater NOIDA, the customers dont want to come

to branch and want every thing to be done right from their office which is

not possible every time and this becomes their reason for grief that bank

doesnt listen to them where as group 3 companies which are few in

number and are big ones are in Delhi itself and coincidently nearer to the

branch too, so there is no problem for the employees of the bank to go to

visit them and vice-versa.


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b) For all those who came to the branch with their problems there is

not a single case when the problem wasnt solved. The main problem here

again lies with the network of branches and Dhanlaxmi Bank seriouslyneeds more number of branches in NCR.


with regards to reliability factor offered by the bank.

Ha : The groups of companies do not differ

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