Credit Card

The concept of using a card for purchases was described in 1887 by Edward

Bellamy in his utopian novel Looking Backward. Bellamy used the term credit

card eleven times in this novel

The modern credit card was the successor of a variety of merchant credit schemes.

It was first used in the 1920s, in the United States, specifically to sell fuel to a

growing number of automobile owners. In 1938 several companies started to

accept each other's cards. Western Union had begun issuing charge cards to its

frequent customers in 1921. Some charge cards were printed on paper card stock,

but were easily counterfeited.

The Charga-Plate was an early predecessor to the credit card and used during the

1930s and late 1940s. It was a 2 1/2" x 1 1/4" rectangle of sheet metal, similar to a

military dog tag, that was embossed with the customer's name, city and state (no

address). It held a small paper card for a signature. It was laid in the imprinter first,

then a charge slip on top of it, onto which an inked ribbon was pressed. Charga-

Plate was a trademark of Farrington Manufacturing Co. Charga-Plates was issued

by large-scale merchants to their regular customers, much like department store

1

credit cards of today. In some cases, the plates were kept in the issuing store rather

than held by customers. When an authorized user made a purchase, a clerk

retrieved the plate from the store's files and then processed the purchase. Charga-

Plates speeded back-office bookkeeping that was done manually in paper ledgers

in each store, before computers.

The concept of customers paying different merchants using the same card was

invented in 1950 by Ralph Schneider and Frank X. McNamara, founders of Diners

Club, to consolidate multiple cards. The Diners Club, which was created partially

through a merger with Dine and Sign, produced the first "general purpose" charge

card, and required the entire bill to be paid with each statement. That was followed

by Carte Blanche and in 1958 by American Express which created a worldwide

credit card network.

Bank of America created the Bank Americard in 1958, a product which, with its

overseas affiliates, eventually evolved into the Visa system. MasterCard came to

being in 1966 when a group of credit-issuing banks established Master Charge; it

received a significant boost when Citibank merged its proprietary Everything Card,

launched in 1967, into Master Charge in 1969. The fractured nature of the U.S.

banking system meant that credit cards became an effective way for those who

were traveling around the country to move their credit to places where they could

2

not directly use their banking facilities. In 1966 Barclaycard in the UK launched

the first credit card outside of the U.S.

There are now countless variations on the basic concept of revolving credit for

individuals (as issued by banks and honored by a network of financial institutions),

including organization-branded credit cards, corporate-user credit cards, store

cards and so on.

In contrast, although having reached very high adoption levels in the US, Canada

and the UK, it is important to note that many cultures were much more cash-

oriented in the latter half of the twentieth century, or had developed alternative

forms of cash-less payments, such as Carte bleue or the Eurocard (Germany,

France, Switzerland, and others). In these places, the take-up of credit cards was

initially much slower. It took until the 1990s to reach anything like the percentage

market-penetration levels achieved in the US, Canada, or the UK. In many

countries acceptance still remains poor as the use of a credit card system depends

on the banking system being perceived as reliable.

In contrast, because of the legislative framework surrounding banking system

overdrafts, some countries, France in particular, were much faster to develop and

adopt chip-based credit cards which are now seen as major anti-fraud credit

devices.

3

The design of the credit card itself has become a major selling point in recent

years. The value of the card to the issuer is often related to the customer's usage of

the card, or to the customer's financial worth. This has led to the rise of Co-Brand

and Affinity cards - where the card design is related to the "affinity" (a university,

for example) leading to higher card usage. In most cases a percentage of the value

of the card is returned to the affinity group.

4

CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends on the offer's performance in

relation to the buyer's expectations. In general, satisfaction is a person's feelings of

pleasure or disappointment resulting from comparing a product's perceived

performance (or outcome) in relation to his or her expectations. If the performance

falls short of expectations, the customer is dissatisfied. If the performance matches

the expectations, the customer is satisfied. If the performance exceeds

expectations, the customer is highly satisfied or delighted

CUSTOMER EXPECTATIONS

How do buyers form their expectations? From past buying experience, friends' and

associates' advice, and marketers' and competitors' information and promises. If

marketers raise expectations too high, the buyer is likely to be disappointed.

However, if the company sets expectations too low, it won't attract enough buyers

(although it will satisfy those who do buy). Some of today's most successful

companies are raising expectations and delivering performances

5

Measuring customer satisfaction a company would be wise to measure customer

satisfaction regularly because one key to customer retention is customer

satisfaction. A highly satisfied customer generally stays loyal

Longer, buys more as the company introduces new products and upgrades existing

products, talks favorably about the company and its products, pays less attention to

competing brands and is less sensitive to price, offers product or service ideas to

the company, and costs less to serve than new customers because transactions are

routine. The link between customer satisfaction and customer loyalty, however, is

not proportional. Suppose customer satisfaction is rated on a scale from one to five.

At a very low level of customer satisfaction (level one), customers are likely to

abandon the company and even bad-mouth it. At levels two to four, customers are

fairly satisfied but still find it easy to switch when a better offer comes along. At

level five, the customer is very likely to repurchase and even spread good word of

mouth about the company. High satisfaction or delight creates an emotional bond

with the brand or company, not just a rational preference (For customer satisfaction

surveys, it's important that companies ask the right questions. Frederick Reichheld

suggests that perhaps only one question really matters: "Would you recommend

this product or service to a friend?" He maintains that marketing departments

typically focus surveys on the areas they can control, such as brand image, pricing,

and product features. According to Reichheld, a customer's willingness to

6

recommend to a friend results from how well the customer is treated by front -line

employees, which in turn is determined by all the functional areas that contribute

to a customer's experienced

7

ORIGIN OF THE TERM BANK

The word “bank” is derived from the Italian word “banco”, the Latin word

“bancus” and the French word “banque”, which mean a bench. They are of the

opinion that the medieval European bankers (i.e., money changers and money

lenders) transacted their banking activities, viz., money changing (i.e., exchanging

one currency for another) and money lending, by displaying coins of different

countries, and of different denominations in big heaps on the benches in the market

places. As such, the word “bank” should be associated with Italian word “banco”.

According to others, the term “bank” is derived from the German word

“banck”, which means a joint stock fund or a common fund (i.e., a heap of money)

rose from a large number of members of the public. They contend that the early

European bankers raised a common fund or heaps of money from the public for the

purpose of financing the needy. As banks deal in common fund or heaps of money

raised from the public, the term “bank” should be traced to the German word

“banck”.

8

Of these two views, the latter view seems to be more convincing, because the

word ‘bank’ is, generally, associated with an institution dealing in money raised

from the public.

MEANING OF BANK

A bank is an institution which deals with money and credit. It accepts

deposits from the public, makes the funds available to those who needs them, and

helps in the remittance of money from one place to another. In fact modern bank

performs such a variety of functions that is difficult to give precise and general

definitions to it. It is because of this reason that different economies give different

definitions of the bank.

DEFINITION OF THE TERM BANK OR BANKER

9

Walter Leaf’s Definition

Walter Leaf defines a bank as” A person or corporation which holds itself out to

receive from public deposits payable on demand or by cheque”.

Paget’s definition:

Sir John Paget says, “No person or body corporate or otherwise can be banker

who does not take deposit accounts, take current accounts, issue and pay cheques

and collect cheques crossed and uncrossed for his customers”. He further adds,”

One claiming to be a banker must profess himself to be one, the public must accept

him as such and finally banking should be his main business”. According to this

definition, the essential features of a banker are:

1. Acceptance of deposits of money on deposit and current accounts.

2. Repayment of those deposits.

3. Collection of cheques for customers.

4. Performance of banking business as the main business.

10

IMPORTANCE OF BANKS IN THE MODERN ECONOMIC DEVELOPMENT

Importance of banks in the modern economic development of a country,

they touch almost every aspect of the modern economy. According to Schumpeter,

“The banking system is one of the two key agents (the other being

entrepreneurship) in the whole process of development. The economic importance

of banks is as follows:

a) Banks mobilize the small, scattered and idle savings of the people and make

them available for productive purposes. In short, they help the process of

capital formation.

b) By offering attractive interest on the savings of the people deposited with

them, banks promote the habit of thrift and savings among people.

c) By accepting the savings of people, banks provide safety and security to the

surplus money of the depositors.

d) Banks provide a convenient and economical means of payment. The cheque

system introduced by banks is of great help for making payments.

11

e) Banks provide a convenient and economic transfer of funds from one place

to another. Bank drafts or demand drafts are commonly used for remittance

of funds from one place to another.

f) Banks help the movement of funds from region whether they are not very

useful to regions where they can be more usefully employed.

g) Banks influence the rate of interest in the money market. Through the supply

of money (i.e. bank money or credit money), banks exert a powerful;

influence on the interest rates in the money market.

h) Banks help trade and commerce, industry and agriculture by meeting their

financial requirements.

i) Banks direct the flow of funds into productive channels.

j) Through the process of creation of money, banks acquire control over the

supply of money in the country.

k) Today, banks have attained very great importance. They would not have

been as importance as they are today, if they are merely financial

intermediaries linking lenders and borrowers. It is their ability to

manufacture money that has made them very important. In the process of

linking lenders and borrowers, they manufacture money (i.e. bank money or

credit money) by lending several times the cash deposits they receive.

12

Thus banks are useful in several ways. We can conclude that a strong and sound

banking system is indispensable for the economic development of any country.

India has a well developed banking system. Most of the banks in India were

founded by Indian entrepreneurs and visionaries in the pre-independence era to

provide financial assistance to traders, agriculturists and budding Indian

industrialists. Indian banks have played a significant role in the development of

Indian economy by inculcating the habit of saving in Indians and by lending

finance to Indian industry.

The commercial banking structure in India consists of: scheduled commercial

Banks and unscheduled Banks. Schedule commercial Banks constitute those banks,

which have been included in the second schedule of Reserve Bank of India (RBI)

Act, 1934. RBI includes only those banks in this schedule, which satisfy the

criteria laid down vide section 42 (6) (a) of the Act.

13

Indian banks can be broadly classified into nationalized banks/public sector

banks, private banks and foreign banks.

Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The

nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then

prime minister. The major objective behind nationalization was to spread banking

infrastructure in rural areas and make available cheap finance to Indian farmers.

Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI)

was the only public sector bank in India. SBI was nationalized in 1955 under the

SBI Act of 1955.

The second phase of nationalization of Indian banks took place in the year 1980.

Seven more banks were nationalized with deposits over 200 crores.

14

List of Public Sector Banks in India is as follows:

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of India (SBI)

State Bank of Indore

State Bank of Mysore

15

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Private Banks in India

All the banks in India were earlier private banks. They were founded in the pre-

independence era to cater to the banking needs of the people. But after

nationalization of banks in 1969 public sector banks came to occupy dominant role

in the banking structure. Private sector banking in India received a filip in 1994

when Reserve Bank of India encouraged setting up of private banks as part of its

policy of liberalization of the Indian Banking Industry. Housing Development

Finance Corporation Limited (HDFC) was amongst the first to receive an 'in

16

principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector.

Private Banks have played a major role in the development of Indian banking

industry. They have made banking more efficient and customer friendly. In the

process they have jolted public sector banks out of complacency and forced them

to become more competitive

Major Private Banks in India are:

AXIS Bank

Bank of Rajasthan

Bharat Overseas Bank

Catholic Syrian Bank

Centurion Bank of Punjab

Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

17

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank

South Indian Bank

United Western Bank

YES Bank

Foreign Banks in India

Foreign banks have brought latest technology and latest banking practices

in India. They have helped made Indian Banking system more competitive and

18

efficient. Government has come up with a road map for expansion of foreign banks

in India.

The road map has two phases. During the first phase between March 2005 and

March 2009, foreign banks may establish a presence by way of setting up a wholly

owned subsidiary (WOS) or conversion of existing branches into a WOS. The

second phase will commence in April 2009 after a review of the experience gained

after due consultation with all the stake holders in the banking sector. The review

would examine issues concerning extension of national treatment to WOS, dilution

of stake and permitting mergers/acquisitions of any private sector banks in India by

a foreign bank.

Major foreign banks in India are:

ABN-AMRO Bank

Abu Dhabi Commercial Bank Ltd.

American Express Bank Ltd

BNP Paribas

Citibank

DBS Bank Ltd

19

Deutsche Bank

HSBC Ltd

Standard Chartered Bank

20

Corporation Bank, the oldest banking institution in the erstwhile undivided

Dakshina Kannada District of Karnataka and one of the oldest banks in India, was

founded in 1906 in the Temple Town of Udupi, by a small group of philanthropists

led by Khan Bahadur, Haji Abdulla, and Haji Kasim Saheb Bahadur. The need to

start this bank was felt because there was no such facility at Udupi, an important

trading centre next to Mangalore in D.K. District. The indigenous banking was

largely in the hands of a few rich private individuals and something had to be done

to provide relief to the common man from the clutches of the money lenders who

held full sway. The first branch of a modern bank established in the district was the

Bank of Madras, one of the three Presidency Banks, which set up its office in

Mangalore in 1868 largely to cater to the business needs of a few British firms

dealing in export of plantation products. Its agent used to visit Udupi once a

fortnight or so, to do banking. Money remittances had to be made only through

postal medium.

To overcome these drawbacks and also to provide banking facilities for Udupi in

particular and the district in general, a cosmopolitan group of philanthropists led by

Haji Abdulla Saheb made a bold venture to start this institution. What inspired the

founding fathers was the fervour of Swadeshism. For promoting the Bank , the

Founder President made an appeal saying , " The primary object in forming the

21

‘Corporation' is not only to cultivate habits of thrift amongst all classes of people ,

without distinction of caste or creed, but also habits of co-operation amongst all

classes. This is ‘Swadeshism', pure and simple and every lover of the country is

expected to come forward and co-operate in achieving the end in view."

"The Canara Banking Corporation (Udupi) Ltd.," as the institution was called then,

started functioning as a ‘Nidhi' with a humble beginning. The initial capital was

Rs.5000/- and at the end of the first day, its resources stood at 38 Rupees - 13

Annas and 2 Pies. The setting up of the Canara Banking Corporation Ltd. seems to

have given a fillip to co-operative Banking and also to regular banking elsewhere

in the district. Between 1909 and 1917, six co-operative banks came into being and

during the decade immediately after the First World War (1914-18) South Kanara

gave birth to as many as eight banks. It is to the credit of this Bank that despite two

world wars, economic depression and stiff competition, the Bank not only quite

survived, but also made satisfactory progress. Having been started at Udupi, the

Bank first branched out by opening a branch at Kundapur in 1923. The second

branch of the Bank was opened in Mangalore at Car Street in 1926. The Bank

stepped into Kodagu District in 1934 by opening its seventh branch in Madikeri. In

1937, the Bank was included in the second schedule of Reserve Bank of India Act,

1934. In 1939, the Bank's name changed from "Canara Banking Corporation

(Udupi) Ltd." to "Canara Banking Corporation Ltd." The Bank graduated into a

22

Regional Bank in 1945 when the total number of its branches stood at 28. In the

year 1961, it took over ‘Bank of Citizens, Belgaum.' In the same year, the Bank's

Administration Office shifted from Udupi to Mangalore.

The second change in the name of the Bank occurred in 1972, from ‘Canara

Banking Corporation Ltd' to ‘Corporation Bank Limited.' The Bank was

nationalized in 1980 along with 5 other private sector banks. After nationalization,

the pace of growth of the Bank accelerated and it made

All-round progress. Started as a common man's bank, it changed with the times to

meet the aspirations of the people but never swerved from its motto- "Sarve Janah

Sukhino Bhavantu" meaning Prosperity for All. It endeavored and succeeded in

striking a right balance between traditional values and innovative approach,

personalized service and professional outlook and commercial considerations and

public concern. One of the unique achievements of the Bank is that it has been

paying dividend continuously for the last 98 years since its inception. Today, with

the most modern technology-driven products and services and nationwide branches

& ATMs, Corporation Bank stands tall among the Public Sector Banks in the

country and is hailed as one among the well-managed Public Sector Banks with

excellent track record in all the key parameters of banking. The Bank has the

second largest ATM network in the public sector.

23

Corporation Bank has completed 100 years of its purposeful and fruitful existence

on 12th March, 2006. The Centenary celebrations were launched by Shri V.

Leeladhar, Deputy Governor, Reserve Bank of India with the Bank's Foundation

Day lecture on 12th March, 2005.As a part of the Bank's centenary celebrations, a

number of programmes and projects were planned and executed. As a first step, the

Bank has launched the Corp Kissan Card - debit card tied up with VISA

international,, to enable the farmers make timely purchases for agricultural

operations at Yeshwantpur-Malur in Kolar District on 13th March 2005. A modern

public library was dedicated to the citizens of Mangalore in DK District, the birth

place of the Bank by Shri P. Chidambaram, Hon'ble Union Finance Minister on

12th March, 2006. The library building also houses a Numismatic Museum and a

multi purpose hall for intellectual activities. The Bank has also set up libraries in

25 villages and given away scholarship to 100 meritorious students of such villages

for the pursuit of their higher education.

24

Mission Statement

To become a provider of World - Class Financial Services

To meet Customer expectations through Innovation and Technological

Initiatives

To emerge as a Role Model with distinct culture identity, ethical values and

Good Corporate Governance

To enhance Shareholder's Wealth by sustained, profitable and financially

sound growth with prudent risk management systems

To fulfill national and social obligations as a responsible Corporate citizen

To create an environment, intellectually satisfying and professionally

rewarding to the employees.

Vision Statement

“To emerge as the most preferred Bank with global standards in financials,

efficiency, technology, products and services”.

25

26

CHAIRMAN & MANAGING DIRECTOR

EXECUTIVE DIRECTOR

GENERAL MANAGER (MKTG, R&D)

GENERAL MANAGER (CREDIT POLICY, PLANNING &SANCTIONS)

GENERAL MANAGER (DEVELOPMENT OF PRIORITY SECTORS& RETAIL LENDING)

GENERAL MANAGER (INVESTMENTS)

GENERAL MANAGER (HRM)

GENERAL MANAGER (FINANCIAL MGT)

GENERAL MANAGER (RECOVERY, LEGAL SERVICES& CR.RISK MGT.)

GENERAL MANAGER ((IT)

GENERAL MANAGER ((VIGILENCE, ANTIFRAUD & INSPECTION)

1. Title of the study: “Customer satisfaction survey of Corporation Bank

credit cards”

2. Type of research: Descriptive Research

Descriptive research includes surveys and fact-finding enquiries of different kinds.

The major purpose of descriptive research is description of the state of affairs as it

exists at present. In social science and business research we quite often use the

term Ex post facto research for descriptive research studies. The main

characteristic of this method is that the researcher has no control over the variables;

he can only report what has happened or what is happening. The research

conducted in this project is of descriptive in nature.

3. Objectives of the study :

To find out the level of satisfaction amongst the customer with regard to

Corporation Bank credit card

To compare the Corporation Bank credit card with other Credit Card \

To find out if there will be an increase the demand for Corporation Bank credit

card in the near future

To suggest the management the ways to improve the service of credit card

27

4. Scope of Research:

The study has covered 50 customers of Corporation Bank who are using

Corporation Bank credit cards and are residing in and around Dakshina

Kannada district

5. Relevance of the study: Corporation Bank is one of the oldest public sector

banks in India. Which has been voted as best public sector bank year after year,

hence the customers are largely satisfied with the bank?

But the credit card offered by the bank is one of the latest service offered by the

bank hence it is relevant to study whether the customer are satisfied with the credit

card or not.

6. Limitations of the study:

a. Time constraints

b. The study is based upon the opinion of 50 respondents and cannot be

generalized

c. The respondents could be biased in marking the options

7. Research methods and Research methodology

28

1. Collection of data

A. Primary data:

(a) Questionnaires

(b) Personal interviews with the officials

B.Secondary data

(a) Books

(b) Internet

(c) Previous research works

Evaluation and comparison of the data with respect to the problem and the

necessary solutions and conclusions

8. Sample Design: Deliberate judgmental sampling design

Deliberate sampling is also known as purposive or non-probability sampling. This

sampling method involves purposive or deliberate selection of particular units of the

universe for constituting a sample which represents the universe. In judgment

sampling the researcher's judgment is used for selecting items which he considers as

representative of the population. The sampling technique in this study is a

combination of deliberate and judgmental sampling.

29

30

Factors analyzed

in the study

Frequency of using

credit cards

Terms and

conditions

Objectives for trying the credit

card

Billing cycle and

intrest rateRecomm

endation to

others

Benefits provided with the

credit cards

Credit limit

sanctioned

Customer care services

Treated as an

valued customer

1. . Age

Table No. 5.1: Age of respondentsOptions No of respondents Percentage

Less than 25 08 1625-35 15 3035-45 07 1445-55 16 32

55 & above 04 08

02468

1012141618

8

15

7

16

4

Chart no. 5.1: Age of respondents

less than 25 25-35 35-45 45-55 55 & above

From table and chart no 5.1 it is evident that 16 % of the credit card holders are

less than the age of 25, 30% are between the age group 25-35,14% are between the

age group 35-45, 32% are between the age group 45-55, and 8% are between the

age group 55 & above. So it can be observed that majority of the credit card

holders are in between the age group of 45-55 as well as 25-35

31

2. GENDER

Table No 5.2. Gender of the RespondentsOptions No of respondents Percentage

Male 38 76Female 12 24

86%

14%

Chart No 5.2: Age of the Respondents

MaleFemale

From the table and chart no 5.2 it is evident that 76% credit card holders are male

and 24% are female. So it is clear that more number of males possess credit cards

than females

32

3. Qualification:

Table No5.3: Qualification of the respondentsOptions No. of Respondents Percentage

Less than 10 Std 02 0410-12 Std 01 02Graduates 34 68

Post graduate 13 26

Less than 10 Std 10-12 Std Degree Post graduate0

5

10

15

20

25

30

35

40

2 1

34

13

 Chart No5.3. Qualification of the respondents

From the table and chart no 5.3 it is evident that 4% respondents of the

Corporation Bank credit card holders are of the qualification of less than 10 th

standard, 2% respondents are of the qualifications between 10th standard to 12th

standard, 68% respondents are graduates and 26% are post-graduates. So it is clear

that majority of the respondents are graduates.

33

4. Martial Status

Table No5.4: Marital Status of the RespondentsOptions No of respondents PercentageSingle 16 32

Divorced 02 04Married 32 64widowed 00 00

05

101520253035

16

2

32

0

Chart no. 5.4: Marital status of respondents

Single Divorced Married Widowed

From the above table and chart no 5.4 it is clear that 32% of the credit card holders

are single, 4% are divorced and 64% are married. So it is evident that more than

half of the credit card holders are married.

34

5. Time period since respondents are maintaining an account with

Corporation Bank

Table no 5.5: Period for maintaining an accountOptions No of respondents Percentage

Less than 6 months 00 006 months – 1 year 00 001 year – 2 years 11 22

2 years and more 39 78

0 5 10 15 20 25 30 35 40

0

0

11

39

Chart no. 5.5: Period for maintaining an account

2 years and more 1 year-2 years 6 months-1 year less than 6 months

From the table and chart no 5.5 it is evident that 22% of the credit card holders are

maintaining an account with Corporation Bank for a period of 1 year – 2 years,

whereas 78% are maintaining an account with Corporation Bank for a period of 2

years or more. So it is clear that most number of respondents are maintaining

account with Corporation Bank since more than 2 years

35

6. Since how long have you been using Corporation Bank credit card

Table no 5.6: Period of usage of credit cardOptions No of respondents Percentage

Less than 3 months 03 063 months – 6 months 03 06

6 months – 1 year 09 181 year and above 35 70

Less than 3 months 3 months – 6 months 6 months – 1 year 1 year and above0

5

10

15

20

25

30

35

40

Chart no 5.6: Period of usage of credit card

From the table and chart no 5.6 it is evident that 6% of the respondents have been

using Corporation Bank credit cards for less than 3 months, 6% of respondents

have been for 3 months - 6 months, 18% of respondents have been using for 6

months – 1 year and 70% of respondents have been using for 1 year and above.

So we can conclude by saying that majority of the respondents have been using

Corporation Bank credit cards for 1 year and above

36

7. Reason for trying Corporation Bank credit cardsThe major reasons why the customers opted for Corporation Bank credit cards

are:

i. The customers felt it was need of the hour

ii. There was no joining fees or annual fees in the beginning ,also low rate

of interest was been charged by bank comparatively

iii. To desire the convenience in payment

iv. To avoid the risk of carrying large amount of cash in pocket

v. It has features which is beneficiary to the customers

vi. It adds more prestige to them

37

8. Frequency of using Corporation Bank credit cards

Table no 5.7: Frequency of usage of credit cards

Options No of RespondentsPercentage

Daily 00 00

Weekly 18 36

Monthly 26 52

Other 06 12

0

5

10

15

20

25

30

0

18

26

6

Chart no 5.7 : Frequency of usage of credit cards

daily weekly Monthly OtherFrom table and chart no5.7 we can see that 36% of the Corporation Bank credit

card holders use their credit card weekly, 52% monthly, and 10% others such as

fortnightly or as and when need arises .So it is clear that more than half of the

credit card holders used their credit cards at least once a month

38

9. The terms and the conditions framed by the bank are too confusing

Table no 5.8: Response towards the terms and conditionsOptions No of respondents Percentage

Strongly agree 00 00Agree 08 16

Neutral 12 24Disagree 30 60

0 5 10 15 20 25 30 35

0

8

12

30

Chart no. 5.8: Response towards the terms and contdi-tions

DisagreeNeutralAgreeStrongly Agree

From the table and chart no5.8, it is evident that 16% felt that the terms and

conditions framed by Corporation Bank credit card was confusing, 24% felt neutral

and 60% felt it wasn’t confusing. So it is clear that the terms and condition of

Corporation Bank credit cards are not confusing

39

10.Billing cycle and interest rate charged

Table no 5.9: Satisfaction towards billing cycle and interest rateOptions No of respondents Percentage

Yes 47 94No 03 06

94%

6%

Chart no 5.9: Satisfaction towards billing cycle and in-trest rate

Yes

No

From the table and chart no5.9 it is evident that 94 % of the respondents are

satisfied and 6% are not satisfied with the billing cycle and the interest rate of

Corporation Bank credit cards. So it is evident that the respondents are satisfied

with the billing cycle and the interest rate of Corporation Bank credit cards

40

11.. Satisfaction with the benefits Provided

Table no 5.10: Satisfaction towards the benefits providedOptions No of respondents Percentage

Yes 44 88No 06 12

Yes

No

0 5 10 15 20 25 30 35 40 45

44

6

Chart no 5.10: Satisfaction towards the bene-fits provided

From the table and chart no 5.10 we can see that 88% of the customers are satisfied

with the benefits provided with Corporation Bank credit cards, where as 12 % are

so it is evident that majority of the respondents are satisfied with the various

benefits provided with the Corporation Bank credit cards.

41

12. Satisfaction with the credit limit sanctioned

Table no 5.11. Satisfaction level towards credit limit sanctionedOptions No of respondents Percentage

Yes 47 94No 03 06

From the table and chart no 5.11 we can see that 94% of the customers are

satisfied with the credit limit provided with Corporation Bank credit cards , where

as 6 % are so it is evident that majority of the respondents are satisfied with the

credit limit provided with the Corporation Bank credit card

42

Yes No05

101520253035404550

47

3

Chart no 5.11. satisfaction level towards credit limit sanctioned

13. Places where normally credit cards is used

Table no. 5.12: Various places where the credit card is usedOptions No of respondents

Supermarkets 46Restaurants 23Petrol bunks 17

Others 06

Supermarkets Restaurants Petrol bunks Others0

5

10

15

20

25

30

35

40

45

50 46

2317

6

Chart no. 5.12 Various places where the credit card is used

From the table and chart no 5.12 it is evident that 46 respondents used the

Corporation Bank credit in supermarkets, 23 respondents used the credit card in

restaurants, 17 in petrol bunks, 6 in other places like online purchasing etc.So it is

clear that respondents prefer using credit cards in supermarkets the most when

compared to other places

43

14.. Monthly credit card bill amount on Corporation Bank credit card

Table no 5.13: The monthly average credit card bill amount of various respondents

Options No of respondents PercentageLess than Rs 1000 07 14Rs 1000 – Rs 3000 18 36Rs 3000- Rs 5000 19 38Rs 5000 and above 06 12

Less than Rs 1000 Rs 1000 – Rs 3000 Rs 3000- Rs 5000 Rs 5000 and above

7

1819

6

Chart no 5.13: The monthly average credit card bill amount

From the table and chart no 5.13 it is evident that 14% of the respondents’ average

monthly credit card bill amount summed upto less than Rs 1000, 36% between

rs1000 and rs3000, 38% between Rs 3000 and Rs 5000, 12 % above Rs 5000

So we can conclude saying that the respondents average monthly credit card bill

amounted between Rs 1000 and Rs 5000.

44

15.. Recommendation of Corporation Bank credit cards to others

Table no 5.14. : Whether the respondents will recommend it to othersOptions No of respondents Percentage

Definitely 34 68Might or might not 09 18

Probably 07 14Definitely not 00 00

From the table and chart no 5.14 it is evident that 68% of the respondents would

definitely recommend Corporation Bank credit cards to others, 18% might or

might not and 14% probably would recommend it to others. So we can conclude

than more than half of the respondents would recommend Corporation Bank credit

cards to others

45

Definitely

Might or might not

Probably

Definitely not

0 5 10 15 20 25 30 35 40

34

9

7

0

Chart no 5.14: whether the respondents will recommend it to others

16.. Satisfaction with the customer care services

Table No 5.15: Satisfaction Level towards customer careOptions No of respondents Percentage

1-dissatisfied 03 062-neutral 06 12

3-satisfied 33 664-highly satisfied 08 16

From table and chart no 5.15 it is evident that 06% respondents are dissatisfied

with the customer care services of Corporation Bank credit cards, 12% are neutral,

66% are satisfied and 16% are highly satisfied. So it is clear that the respondents

are satisfied to some extent with regard to customer care services of Corporation

Bank credit cards

46

dissatisfied neutral satisfied highly satisfied0

5

10

15

20

25

30

35

36

33

8

Chart No. 5.15: Satisfaction Level towards customer care

17. Satisfaction with being treated as a valued customer

Table No 5.16: Satisfaction with being treated as a valued customerOptions No of respondents Percentage

1-dissatisfied 05 102-neutral 12 24

3-satisfied 17 344-highly satisfied 16 32

Dissatisfied Neutral Satisfied Highly satisfied0

2

4

6

8

10

12

14

16

18

5

12

1716

Chart No 5.16: Satisfaction with being treated as a valued customer

Series 1

From table and chart no 5.16 it is evident that 10% of the respondents felt

dissatisfied that the staff showed interest in them as an individual / treated them as

an valued customer, 24% felt neutral, 34% felt satisfied, 32% felt highly satisfied

So it is clear that the respondents are satisfied to very highly satisfied that the staff

showed interest in them as an individual/ treated them as an valued customer

47

18. (a) Respondents owing other banks credit card

Table No 5.17: Respondents owing other banks credit cardOptions No of Respondents Percentage

Yes 19 38No 31 62

38%

62%

Chart no 5.17: Respondents owing other banks credit card

YesNo

From the table and chart no 5.17 we can see that 38% of the respondents had

credit card of other banks and 62% possessed credit cards of Corporation Banks

alone. So we can conclude that more that most of the Corporation Bank credit

card holders do not possess any other banks credit card.

48

18. (b) Comparison with other banks credit card

Table No5.18: Satisfaction level on comparison with other banks credit cardOptions No of Respondents

1-Dissatisfied 012-Neutral 073-Satisfied 07

4-Highly satisfied 04

012345678

Chart No5.18: Satisfaction level on comparison with other banks credit card

Dissatisfied Neutral Satisfied Highly Satisfied

From the table and chart no 5.18 it is evident that of the respondents who owned

other banks credit card 01 respondent was dissatisfied, 07 were neutral, 07 were

satisfied and 04 were highly satisfied , so we can conclude saying majority of the

respondents are neutral- satisfied

49

FINDINGS

i. It was found that majority of the card holders where in between the age group

25 – 35 and 45-55

ii. It was found from the study that credit cards were owned by more number of

male when compared to female

iii. It was that more number of married had opted for credit card

iv. It was found that more than 78% card holders where customers of the bank for

more than past two years

v. It was found that 68% are graduates

vi. It was found from the study that majority of the card holders used their

Corporation Bank credit card once in a month

vii. It was found from the study that 60% of the respondents believed that the terms

and conditions framed by the bank was not confusing hence making it easier to

own a credit card

viii. It was found from the study that 94% of the credit card holders where satisfied

with the billing cycle and the interest rate charged by the bank on its credit card

ix. It was found from the study that 88% of the respondents where satisfied with

the benefits provided with Corporation Bank credit card

50

x. It was found from the study that 94% of the respondents where satisfied with

credit limit offered on their Corporation Bank credit card

xi. It was found from the study that majority of the respondents monthly credit card

bill amount was in between Rs1000-Rs 5000

xii. It was found from the study that 68% of the respondents would recommend

Corporation Bank credit cards to others

xiii. It was found from the study that 66% of the credit card holders were satisfied

with the customer care services of the Corporation Bank credit card

xiv. The respondents were neutral to satisfied in their satisfaction level with

Corporation Bank credit cards when compared to other banks credit cards

xv. It was found from the study that 66% of the respondents felt that the Staff

Showed Interest in Them as an Individual / Treated Them As An Valued

Customer

xvi. It was found from the study that 62% of the credit card holders did not own any

other banks credit card

xvii. It was found from the survey that most of the respondents used their credit

cards at supermarkets

51

SUGGESTIONS

i. Demonstration on usage of the card : Majority of the card holders know

limited usage of the card on account of non guidance in this matter. Holding

demonstrations in the usage of the card and the services available along with

the card will go a long way in expansion of credit card business

ii. Offers on usage: Corporation Bank can provide more offers on using the

credit cards , by awarding points on the usage and giving rewards on the

basis of points collected

iii. Fixation of credit limit: Corporation Bank fix the credit limit on a

particular credit card after market survey to find out the desired level of

credit limit expected by the customers, also it can look into the credit limit

enjoyed by the customer with other banks credit card in case he own one.

52

iv. Introduce billing machine : Corporation Bank can install its own billing

machines at shopping and other places. Because it was found that majority

of that shopping center and other places had billing machines of other banks

v. Ease repayment of credit amount: Corporation Bank can make necessary

arrangement for the payment of credit card bills through ATM, internet,

exclusive cheque box etc.

vi. Expanding the collaborations : Corporation Banks can tie up with the

various shopping outlets , supermarkets, petrol bunks in order to provided

exclusive offers like discounts, money back to the customers

vii. Aggressive marketing strategy :Corporation Bank can adopt aggressive

marketing strategy with regard to credit card by advertising the credit card

aggressively

viii. Reduction in interest rate to reasonable extent: Corporation Bank can

reduce the interest rate in order to attract more customers

53

ix. Customization of credit card: Corporation Bank can customize the credit

card as per the needs of the customer

54

CONCLUSION

In India there are many players in the credit card segment .Which is mainly

captured by private banks. Also majority of the customers prefer making

payment through debit card in order to avoid the Hassles and risk associated

with the credit cards.

Since Corporation Bank has newly introduced the credit card, the bank can

make use of the suggestions given in the project report in order to maximize

its share and also provide better service to the customers.

55