consumer satisfaction icici

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1.1 OVERVIEW OF THE BANKING SECTOR

INTRODUCTION

Banking in Indiaoriginated in the last decades of the 18th century. The firstbanks

were The General Bank of India, which started in 1786, and Bank of Hindustan,

which started in 1770; both are now defunct.

BANKS IN INDIA

In India the banking sector is segregated as public or private sector banks,

cooperative banks and regional rural banks. Foreign banks have been given a

different head followed by upcoming foreign banks in this section.

BANKING SERVICES IN INDIA

Bouquets of services are at customers demand in todays banking

system. Different types of accounts and loans, facilitating with plastic money and

money transfer across the globe.

RESERVE BANK OF INDIA (RBI)

The Reserve Bank of India (RBI) is India's central banking institution, which

regulates, controls credit, issue licenses and functions as banker of all banks and

the government. It was established on 1 April 1935 during the British Raj in

accordance with the provisions of the Reserve Bank of India Act, 1934. Following

India's independence in 1947, the RBI was nationalized in the year 1949.

EASY BANKING

With the advancement of technology, banking sector has become more easy, fast,

accurate and also time saving. ATMs, Mobile Banking, SMS Banking and Net

Banking are only the tip of an ice-berg.

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INDIAN BANKS ASSOCIATION (IBA)

Indian Banks Association (IBA), formed on 26 September, 1946 as a

representative body of management of banking operating in India based in

Mumbai. With an initial membership representing 22 banks in India in 1946, IBA

currently represents 173 banking companies operating in India. IBA was formed

for development, coordination and strengthening of Indian banking.

Structure of Banking Sector In India

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RESERVE BANK OF INDIA

The RBI is the central banking and monetary authority in India. The RBI manages

the countrys money supply and foreign exchange and also serves as a bank for

the GOI and for the countrys commercial banks. In addition to these traditional

central-banking roles, the RBI undertakes certain developmental and promotional

activities. RBI issues guidelines, notifications, and circulars on various areas

including exposure standards, income recognition, asset classification,

provisioning for non- performing assets, investment valuation and capital

adequacy standards for commercial banks, long-term lending institute. And non-

banking finance companies. The RBI requires these institutes to furnish

information relating to their businesses to the RBI on a regular basis.

COMMERCIAL BANKS

Commercial Banks in India have traditionally focused on meeting the short-term

financial needs of the industry, trade and agriculture. At the end of Sept. 2007,

there were 291 scheduled commercial banks in the country, with a network of

67221 branches. Scheduled commercial banks are banks that are listed in the II

Scheduled to the RBI Act, 1934, & may further be classified as PSU, Private

sector banks & foreign banks. IDBI was converted into a banking company by the

name of INDUSTRIAL DEVELOPMENT BANK OF INDIA LTD. with effect

from Oct. 2007 & is a scheduled commercial bank. Scheduled Commercial bank

has a presence throughout India, with nearly 70.1% of bank branches located in

rural or Semi- urban areas of the country. A large no. of these branches belongs to

the Public Sector Banks.

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CO-OPERATIVE BANKS

Cooperative banks cater to the financing needs of agriculture; small industry and

self-employed businessmen in urban and semi urban areas of India. The State land

development banks and the primary land development banks provide long-term

credit for agriculture. In light of the liquidity and insolvency problems

experienced by some cooperative banks in fiscal 2001, the RBI undertook several

interim measures to address the issues, pending formal legislative changes,

including measures related to lending against shares, borrowings in the call

market and term deposits placed with other urban cooperative banks. The RBI is

currently responsible for supervision and regulation of urban co-operative

societies, the National Bank for agriculture and Rural Development, state co-

operative banks and district central co-operative banks. The banking Regulation

(Amendment) and Miscellaneous Provision Bill, 2003, which was introduced in

the parliament in 2003, proposed the regulation of all co-operative banks by the

RBI. The Bill has not ye been ratified by the Indian parliament and is not in force.

FOREIGN BANKS

At the end of June 2007, there were 32 foreign banks with 217 branches operating

in India, accounting for 4.6% of aggregate deposits and 7.0% of outstanding gross

banks credit of scheduled commercial banks. The Govt. of India permits foreign

banks to operate through (i) branches (ii) a wholly owned subsidiary (iii) a

subsidiary with aggregate foreign investment of up to 74% in a private bank. The

primary activity of most foreign banks in India has been in the corporate segment.

However, some of the larger foreign banks have made consumer financing a

significant part of their portfolios. These banks offer products such as automobile

finance, home loans, credit cards and household consumer finance. The GOI in

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2006 announced that wholly owned subsidiaries of foreign banks would be permitted

to incorporate wholly owned subsidiaries in India. Subsidiaries of foreign banks will

have to adhere to all banking regulations, including priority sector lending norms,

applicable to domestic banks .In March 2007, the Ministry of Commerce and

industry, GOI announced that the foreign direct investment limit in private sector

banks has been raised to 74% from the existing 49% under the automatic route

including investment by FII .The announcement also stated that the aggregate of

foreign investment in a private bank from all sources would be allowed up to a

maximum of 74% of the paid up capital of the bank .The RBI notification increasing

the limit to 74% is however still awaited.

REGIONAL RURAL BANKS

Regional Rural banks were established from 1976 to 1987 jointly by the central

Govt. , State Govt. and sponsoring public sector commercial banks with a view to

develop the rural economy. Regional rural banks provide credit to small farmers,

artisans, small entrepreneurs & agricultural laborers. There were 196 regional

rural banks at the end of Sept. 2007 with 144430 branches, accounting for 3.6%

of aggregate deposits and 3.0% of gross bank credit outstanding of scheduled

commercial banks.

URBAN CO-OPERATIVE

The term Urban Co-operative Banks (UCBs), though not formally defined, refers

to primary cooperative banks located in urban and semi-urban areas. These banks,

till 1996, were allowed to lend money only for non-agricultural purposes. This

distinction does not hold today. These banks were traditionally centred around

communities, localities work place groups. They essentially lent to small

borrowers and businesses. Today, their scope of operations has widened

considerably.

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PUBLIC SECTOR BANKS

Public Sector banks make up the largest category of banks in the Indian Banking

System. There are 27 public sector banks in India. They include the SBI & its

associate banks & 19 nationalized banks. Nationalized banks are governed by the

banking companies (Acquisition & transfer of U/T) Act, 1970 & 1980. The banks

nationalized under the banking companies (Acquisition & transfer of U/T) Act,

1970 are referred to as Corresponding new banks. PNB is a public sector bank

nationalized in 1969 and a corresponding new bank under the bank acquisition Act.

At the end of Sept. 2007, public sector banks had 46782 branches & accounted for

74.9% of the aggregate deposits & 70.5% of the outstanding Gross bank credit of the

scheduled commercial banks.

After the first phase of bank nationalization was completed in 1969, the majority of

Indian Banks were public sector banks. Some of the existing private sector banks,

which showed signs of an eventual default, were merged with state- owned banks. In

July 1993, as part of the banking reforms process and as a measure to induce

competition in the banking sector, the RBI permitted entry by the private sector into

the banking system. This resulted in the introduction of 9 private sector banks. These

banks are collectively known as the new private sector banks. There are 9 new

private sector banks operating at present.

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CLASSIFICATION OF BANKS

The Indian Banking industry consisted of 97 commercial banks, 196 regional banks, 52

Scheduled urban Co-operative banks, and 16 Scheduled state Co-operative banks.

At present, the banking system can be classified into the following categories:

PUBLIC SECTOR BANKS

Reserve Bank of India

State Bank of India and its 7 associate banks

Nationalized Banks

Regional rural Banks Sponsored by Public Sector Banks

PRIVATE SECTOR BANKS

Old Generation Private banks

New Generation Private Bank

Foreign banks in India

Scheduled Co-operative Banks

Non- Scheduled Banks

CO-OPERATIVE SECTOR BANKS

IFCI

IIBI

SIDBI

NABARD

EXIM

SCICI

DEVELOPMENT BANKS

State Co-operative Banks

Central Co-operative Banks

Primary Agriculture Credit Societies

Land development Banks

Urban co-operative Banks

State Land Development Banks

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The RBI has a centralized control over all these banks. It performs a wide range of

functions to:

Issue Bank notes

Supervise & administer exchange control and banking regulations and administer

the Govt. policy

Issue licenses to the foreign banks for operations in India

Approve the licenses of operation for the private banks

Grant licenses to new banks and new bank branches.

Globalization, financial deregulation and improvement in technology have had a profound

effect on the financial landscape in recent years. These developments have intensified

competition and resulted in financial engineering through product innovation and business

strategies. While market participants have now greater scope to diversify risk and manage itefficiently, this has also posed new risks and challenges to the financial system. Growth of

financial firms across different business lines and across national boundaries has made the

task of designing appropriate policies more challenging. Regulatory and supervisory

policies are, therefore, constantly assessed regarding their capabilities to meet the

challenges of containing systemic risk in the financial system. The main challenge for the

supervisory authorities has been to maintain financial stability without curtailing the

incentive to innovate.

Keeping in view the changing landscape in the financial sector, the Reserve Bank has been

suitably focusing its regulatory and supervisory framework to promote a stable and efficient

financial sector. The main focus of the Reserve Banks recent regulatory and supervisory

initiatives has been on prudential regulation and financial infrastructure broadly in line with

international best practices. However, while focusing on a globally competitive and the

robust banking sector, the Reserve Bank has also emphasized financial inclusion, whereby

banking services are accessed easily by the underprivileged sections of the society. The

overall approach to reforms has been sequenced and arrived at through consultative process

with all the stakeholders. Various reform measures initiated from time to time have

imparted resilience to the financial system.

The Reserve Bank had indicated on February 15, 2005 that banks in India would start

implementing Basel II with effect from March 31, 2007. Several initiatives, therefore, were

taken during the year to facilitate the smooth transition to Basel II. The Reserve Bank

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permitted banks to raise capital through new instruments to enable them to meet capital

requirements prescribed under Basel II. The Reserve Bank also issued a guidance note for

operational risk management. Taking into account the state of preparedness of the banking

system, however, it was announced in the Midterm Review of the Annual Policy for 2006-

07 on October 31, 2008 that Indian banks with presence outside India and foreign banks

operating in India would be required to migrate to Basel II framework with effect from

March 31, 2008, while all other Indian banks would be encouraged to migrate to these

norms by March 31, 2009.

With a view to providing basic banking services to common man, the Reserve Bank took

several measures to incentives banks. Improvement in customer service was another area of

focus of the Reserve Banks regulatory Policy.

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1.2 AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after

the Government of India allowed new private banks to be established.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at

Mumbai. The Bank has a very wide network of more than 1600 branches (including 169

Service Branches/CPCs as on 30th June, 2012). The Bank has a network of over 10000

ATMs (as on 30th June, 2012) providing 24 hrs a day banking convenience to its

customers. This is one of the largest ATM networks in the country.

The Bank as on 30th June, 2012 is capitalized to the extent of Rs. 414.29 crores with the

public holding (other than promoters and GDRs) at 54.24%. The Bank has strengths in

both retail and corporate banking and is committed to adopting the best industry practices

internationally in order to achieve excellence.

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1.2.1 COMPANY PROFILE

Axis Bank Ltd., the first bank to begin operations as new private banks in 1994

after the Government of India allowed new private banks to be established. Axis

Bank was jointly promoted by the Administrator of the specified undertaking of

the:

Unit Trust of India (UTI-I)

Life Insurance Corporation of India (LIC)

General Insurance Corporation Ltd.

Also with associates viz. National Insurance Company Ltd., The New India

Assurance Company, The Oriental Insurance Corporation and United Insurance

Company Ltd. Axis Bank in India today is capitalised with Rs. 414.29 Crores

with 54.24% public holding other than promoters. It has more than 1600 branch

offices and Extension Counters in the country with over 10000 Axis Bank ATM

proving to be one of the largest ATM networks in the country. Axis Bank India

commits to adopt the best industry practices internationally to achieve excellence.

Axis Bank has strengths in retail as well as corporate banking. This is the first

bank in India to offer the AT PAR Cheque facility, without any charges, to all its

Savings Bank customers in all the places across the country where it has presence.

With the AT PAR cheque facility, customers can make cheque payments to any

beneficiary at any of its existence place. The ceiling per instrument is Rs. 50,000/.

The latest offerings of the bank along with Dollar variant is the Euro and Pound

Sterling variants of the International Travel Currency Card. The Travel Currency

Card is a signature based pre-paid travel card which enables travelers global

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access to their money in local currency of the visiting country in a safe and

convenient way. The Bank has strengths in both retail and corporate banking and

is committed to adopting the best industry practices internationally in order to

achieve excellence.

BUSINESS DESCRIPTION:

The Bank's principal activities are to provide commercial banking services which

include merchant banking, direct finance, infrastructure finance, venture capital

fund, advisory, trusteeship, forex, treasury and other related financial services.

The Bank has 463 branches and 263 extension counters throughout India. During

April, 2006 the Bank opened 1 overseas branch in Singapore.

PROMOTERS:

UTI Bank Ltd. has been promoted by the largest and the best Financial Institution

of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with

UTI contributing Rs. 100 crore,

LIC - Rs. 7.5 crore

GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 23.47%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act,

1963, with a view to encourage savings and investment. In December 2002, the

UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of

Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the

bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February

2003. In accordance with the Act, the Undertaking specified as UTI I has been

transferred and vested in the Administrator of the Specified Undertaking of the

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Unit Trust of India (SUUTI), who manages assured return schemes along with

6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59

crores.

The Government of India has appointed Shri K. N. Prithviraj as the Administrator

of the Specified undertaking of UTI, to look after and administer the schemes

under UTI - I, where Government has continuing obligations and commitments to

the investors, which it will uphold.

PRODUCTS OFFERED

Savings Account

Current Account

Business Priority

Business Wealth

Salary Account

Investment Products Gold and Silver Mohur

Mutual Funds

Life Insurance

General Insurance

Loans

Cards Titanium Rewards Card

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Prepaid Cards

MyMoney Card

Agri Business Loans

Kisan power

Power Gold

Arthia Power

Foreign Exchange

Travel Card

Outward Remittances

Inward Remittances

Axis Remit Online

Axis Remit Direct

Money Transfer Operators

Wire Transfers

Axis Direct 3-IN-1 online Trading Account

Other

Se r v ic e s

Priority

Wealth

NRI Services

Business Banking

Investment Banking

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1.2.2 COMPETITIVE STATUS

The following are best banks which are currently operating in India under the

guidelines of Reserve Bank of India (RBI) and hence are giving tough

competition to Axis Bank

Allahabad Bank In India

American Express Bank In India

Andhra Bank In India

Bank Of India

Canara Bank

Central Bank Of India

CITI Bank

Corporation Bank

HDFC Bank

HSBC Bank

ICICI Bank

IDBI

Indian Overseas Bank

Oriental Bank Of Commerce

Punjab National Bank

State Bank Of India (SBI)

Standard Chartered Bank

United Bank Of India

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Further, Banks like HDFC Bank, Kotak mahindra bank, SBI are the close

competitors of AXIS bank. Here is the detail of other banks-:

HDFC BANK

HDFC Bank is an Indian financial services company based in Mumbai,

Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth

largest bank in India by assets and the second largest bank by market capitalization as

of February 24, 2012. The bank was promoted by the Housing Development Finance

Corporation, a premier housing finance company of India. HDFC Bank has 1,986branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank

are linked on an online real-time basis. For the fiscal year 2010-11, the bank has

reported net profit of 3,926.30 crore up 33.1% from the previous fiscal. Total annual

earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.59

billion) in 2010-11. HDFC Bank is one of the Big Four banks of India, along

with: SBI, ICICI and PNB.It was among the first companies to receive an 'in

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

private sector.

KOTAK MAHINDRA BANK

Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was

previously known as Kotak Mahindra Finance Limited, a non-banking financial

company. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship

company was given the license to carry on banking business by the Reserve Bank of

India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking

history to convert to a bank. Today it has more than 20,000 employees and R. 10,000

crore in revenue. The Bank has its registered office at Nariman Bhavan, Nariman

Point, and Mumbai.

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COMPARISON OF AXIS WITH SBI

AXIS bankis the largest private sector bank in India and the second largestcommercial bank in India. It has branches all over India and even in smaller towns in

South India after the takeover of Bank of Madurai . The bank also has foreign

subsidiaries like AXIS bank, Canada in Canada, Britain and Russia, representative

offices in USA, China, UAE, Bangladesh, South Africa and branches in Bahrain,

Singapore.

It offers a platform for online share trading through AXIS Direct and

insurance services - AXISPrudential. NRI services include money transfer

through Money2India, which offer better foreign exchange rates for lower

amounts compared to other services.

Like most private sector banks, all bank branches in India are networked.

You can access your account from any AXIS bank branch in India. Anyone

can also deposit cash/local cheque in your account at any branch of AXIS

bank.

Also they have very convenient bank timings and are open for 12 hours from

8.00 a.m to 8 p.m from Monday to Saturday. Since AXIS bank was

established after 1991 it offers online banking where you can check the

balance in your account any time. The interface for savings accounts is much

better and user friendly compared to that for their roaming current account

However, unlike other banks like HDFC bank, their online bank statementdoes not indicate the branch at which the amount is deposited. The

information is available in the email statement sent to you the next day. You

have to contact phone banking , enter CRN and TPIN, during working hours

to get this information.

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They have discontinued the auto sweep-in facility (earlier called Quantum

Optima ) , where the amount in savings account was automatically converted

into a fixed deposit, if it exceeded Rs 15000. With the decline in interest rates

for loans, providing this facility is no longer profitable for the bank

SBI

SBI has branches and ATMs all over India , details of which are available at their

website. State Bank of Hyderabad, State Bank of Patiala, State Bank of Saurashtra,

State Bank of Bikaner and Jaipur ,State Bank of Indore, State Bank of Mysore and

State Bank of Travancore are the seven subsidary banks of SBI. As of March 2006,

SBI holding in these banks varies from 74% to 100% , but is likely to decrease in

future. SBI has one of the largest network of ATMs in the Asia Pacific region. Manybranches of State Bank of India are computerised. In places where the Reserve Bank

of India, (RBI) the central bank of India does have an office, SBI carries out many of

its functions. SBI timings vary according to location, for example the Powai,

Mumbai branch of State Bank of India is open between 10.15 am to 2pm (Monday-

Friday)

You can open a public provident fund (PPF) account at any State Bank of

India branch. PPF accounts are one of the few savings instruments which offer

a high tax free interest rate of 8% per year

If you know an agent who is registered with that particular branch of State

Bank , he will pay you back, a part of the commission he receives from the

bank. So you can get back 0.5% - 0.6% of the amount deposited immediately

by cash. Usually larger the amount, the higher the commission paid back by

the agent (it is negotiable) . The pay-in slip for PPF has 3 sections - depositors

copy, agents copy and bank copy. The agents copy has to be given to the

agent and he will give part of the commission. Earlier financial services firm

like Bluechip in Mumbai, would also give a commission of 0.25%.

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The minimum amount that can be invested in one year is Rs 500 and

maximum amount is Rs 70000. This investment has a lock in period of 15

years. No withdrawals are allow till 6 years after account opening and one

withdrawal is allowed per year there after

For cash withdrawals, you can either use a withdrawal slip or cheque. If an

account is inactive for a long time, State Bank of India does not charge anyfee for reactivation. However, they have a verification process, which may

take a long time. Payment of income tax , advance tax , sales tax can be done

at SBI branches.

State Bank of India has increase home loan interest rates by 25-75 basis

points. Also no fixed rate loans will be available for periods more than 10

years.

SBI Railway Visa Card allows booking of railway tickets online at the Indian

Railways websiteat zero transaction charges. Users of this credit card can get

back up to 10% of ticket fare as railway points. These points can be redeemed

later, like frequent flyer miles offered by airlines. State Bank of India is the

largest issuer of debit cards (Maestro) in India

State Bank customers who have to wait a long time to process a bank

transaction can register their complaint through a touch screen device for

customer feedback service at the branch. The information is recorded and

processed in the central server.

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1.2.3 SWOT ANALYSIS OF AXIS BANK

STRENGTH

Good for new investor as the fund has to be managed by specialized fund

manager.

Only product which invests in money market, debt market and equity market

at same time.

Investment needed is comparatively less than other investments.

During the stack market boom periods all AXIS bank funds have performed

fairly well thereby increasing investors expectations.

WEAKNESS

Customers do not prefer it because of risk attached to it that is market risk.

Fund manager if makes a wrong prediction then customer will bear the brunt

therefore it depends on funds managers analysis.

Sometimes the age factor affects the investment preference of the investors.

People are afraid of investing in the equity market.

OPPORTUNITIES

Creating positive image about the fund and changing the nature of the market

itself.

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Market of mutual fund is expanding as many foreign companies are coming in

this.

Great scope of new investment due to the budget announcement this year.

The objective of investing in AXIS bank is Tax-saving apart form returns

third main objective is growth.

THREATS

Now there are many other investment instruments which are more lucrative

than AXIS bank. (real estate , gold)

Unawareness among investors regarding AXIS bank. Also in India most of the

people lack of awareness about AXIS bank. They dont know anything about

what is AXIS bank, how it works. How fund managers invest peoples money

in different portfolios and provide the better returns to the customers

Lack of promotions, advertising by AXIS bank industry

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1.3 CUSTOMER SATISFACTION

Customer satisfaction is equivalent to making sure that product and service

performance meets customer expectations. It is the perception of the customer that the

outcome of a business transaction is equal to or greater than his/her expectation.

Customer satisfaction occurs when the acquisition of products and /or services

provides a minimum negative departure from expectations when compared with other

acquisitions and when the marginal utility of a transaction is equal to or greater than

preceding acquisitions.

Customer satisfaction occurs when the perception of the reward from the purchase of

goods or services by the customer meets or exceeds his/her perceived sacrifice. The

perception is a consequence of matching past purchase and consumption experience

with the current purchase.

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CUSTOMER SERVICE AND SATISFACTION

We must cultivate our garden. Voltaire

When we talk about customer service and/or satisfaction, we talk about creativity.

Creativity allows us to handle or diffuse problems at hand or later on rather in the

process of conducting the everyday business. We talk about how, or what, does the

organization have to do to gain not only the sale but also the loyalty of the customer.

We want to know the payoff of the transaction both in the short and long term. We

want to know what our customers Want? We want to know if our customers are

satisfied. Satisfaction, Of course, means that what we delivered to a customer met the

customers Approval. We want to know if customers are delighted and willing to

come

Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in

their writings. Fleiss has written about Ben and Jerrys ice cream and Feldman has

discussed excellence in a cab ride. As important as delightfulness is, some of us

minimize it, or even totally disregard it. At this point, we fail. Some of the issues that

will guarantee failure in sales, satisfaction, and loyalty are:

Employees must adhere to a rigid chain of command

Employees are closely supervised

Conflictin whatever formis not allowed

Rewards are based on carrot-and-stick principles

Wrong objectives are measure.

We must understand customer expectation levels concerning quality. We must also

understand the strategy for customer service quality, and next we must understand the

measurement and feedback cycles of Customer satisfaction.

The customer is the person or unit receiving the output of a process on the system. In

fact, it is worth emphasizing that a customer can be the immediate, intermediate, or

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ultimate customer. Also, a customer may be a person or persons, or a process or

processes. Customer satisfaction, however, is when the customer is satisfied with a

product/service that meets the customers needs, wants, and expectations.

There are at least three levels of customer expectations about quality:

Level 1. Expectations are very simple and take the form of assumptions, must have,

or take it for granted. For example, I expect the airline to be able to take off, fly to my

destination, and land safely. I expect to get the correct blood for my blood transfusion

and I expect the bank to deposit my money to my account and to keep a correct tally

for me.

Level 2. Expectations are a step higher than that of level 1 and they require some

form of satisfaction through meeting the requirements and/or specifications. For

example, I expect to be treated courteously by all airline personnel. I went to the

hospital expecting to have my hernia repaired, to be in some pain after it was done, to

be out on the same day, and to receive a correct bill. And I went to the bank expecting

the bank teller to be friendly, informative, and helpful with my transactions.

Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some

kind of delightfulness or a service that is so good that it attracts me to it. For example,

an airline gives passengers traveling coach class the same superior food service thatother airlines provide only for first-class passengers. In fact, I once took a flight

where the flight attendants actually baked cookies for us right there on the plane.

When I went to the hospital, I expected staff to treat me with respect and they

carefully explained things to me. But I was surprised when they called me at home

the next day to find out how I was doing. And at my house closing, the bank officer,

representing the bank holding my mortgage, not only treated me with respect and

answered all my questions about my new mortgage, but just before we shook hands to

close the deal, he gave me a housewarming gift.

CUSTOMER SATISFACTION SURVEYS HELP TO:

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1. Improve customer, client, or employee loyalty.

2. React quickly to changes in the market.

3. Identify and capitalize on opportunities.

4. Beat the competition.

5. Retain or gain market share.

6. Increase revenue.

7. Reduce costs.

2.1 RESEARCH OBJECTIVES

To study about AXIS as a company and a group.

To study about the products and services offered by AXIS.

To study the customer satisfaction in AXIS bank.

To provide AXIS bank the suggestion and opinions given by its customers to

improve the facilities for customers.

The next objective is to analyze from which product/services the customers are

getting more satisfaction and which product/service is not very significant from a

customers point of view.

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2.2 SCOPE OF STUDY

This project provides the knowledge about banking industry of India.

It also gives a brief knowledge about the customer behavior about the bank.

It also gives knowledge about the bank and its performance.

This study will help us to understand customers, preference and their needs

expected from the business owners.

It enhances the satisfaction level of the customers.

Helps in capturing more market and customers with better services.

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2.3 MANAGERIAL USEFULNESS OF THE STUDY

The SWOT analysis done helps to know the strengths, weaknesses, opportunities and

threats of the organization which would help in managerial work. The authentic data

collected from the survey help the managers to judge their public image. The judgments

could be easily made by the managers from the secondary data collected which clearly

shows the progress and regress of the bank with the help of graphs, diagrams and tables

etc. This project can be useful to bank to improve the satisfaction level of customers and

motivating them by fulfilling some of their suggestion. In return the bank can get

improved result.

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2.4 METHODOLOGY

2.4.1 TYPE OF RESEARCH

QUANTITATIVE RESEARCH

Quantitative research allows a firm to develop an understanding of the "big

picture" of their customers' experiences based upon a relatively small number of

interviews. This "sample" of the firm's customers must be carefully designed and

drawn if the results of the study are to be considered representative of the

customer population as a whole. In most cases, the results of quantitative studies

are based upon the responses of a relatively "large" number of interviews.

Depending upon the size of the population and the amount of segmentation

desired, "large" can be as few as 50 responses or range from several hundred to

thousands of interviews. Mail-based, telephone-based, and (more recently)

Internet-based surveys and related data collection.

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2.4.2 RESEARCH DESIGN

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 as the present. 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 cannot describe what caused a

situation. Thus, Descriptive research cannot be used to create a causal

relationship, where one variable affects another.

However, it does not answer questions about e.g.: how/when/why the

characteristics occurred, which is done under analytic research

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2.4.3 SOURCES OF DATA COLLECTION

This project consists of two parts-

The first part is a study of the banking industry, AXIS Bank using secondary data

sources. This secondary information has been sourced from the internet and from

business related magazines and newspapers.

The second part of the study has been done using an exploratory research process and

a structured questionnaire was developed for this purpose. For the collection of

primary data this was the only method used. The reason I used this method is becausea need was felt for the free influx of information about the products. Also this method

allowed the use of skills gained in class.

PRIMARY SOURCES

Primary sources are original sources from which the researcher directly

collects data that have not been previously collected, e.g., collection of data

directly by the researcher on brand awareness, brand preference, brand loyalty

and other aspects of consumer behaviour from a sample of consumers by

interviewing them. Primary data are first-hand information collected through

various methods such as observation, interviewing, mailing etc

Questionnaire - A sample questionnaire was provided to around

100 different people which was used to Derive Results and

Analyze customer needs for Insurance and ho far they have been

satisfied with the Services and Returns Provided by AXIS Bank as

well as other companies .

A sample of the questionnaire along with Results from Findings

and Analysis are given later in the Project.


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SECONDARY SOURCES

These are sources containing data that have been collected and compiled for another

purpose. The secondary sources consist of readily available compendia and already

compiled statistical statements and reports whose data may be used by researches for

their studies, e.g., census reports, annual reports and financial statements of

companies, Statistical statements, Reports of Government Departments, Commercial

Banks.

JournalsVarious Journals published by B-Schools as well as Business

houses have provided vital statistical as well as Theoretical Data which

have been very helpful.

Newspapers and Magazines Economic Times as Well as Magazines

such as Business Today have provided useful Information on Developing

Indian Insurance Sector as well as how the trend and demand of customers

has changed over a period of time .

Internet and Other Media Sources WWW has the latest data and

interviews which helped me in determining the scope pf my project as well

as make it as up to date as possible.

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2.4.4 SAMPLE DESIGN AND SAMPLE SIZE

Sampling Unit

The marketing researcher must define the target population that will be

sampled. Who is to be surveyed? The marketing researcher must define

the target population that will be sampled. In this research, sample unit

were the customers of AXIS bank as provided in the database by the

bank.

Sample size/Population Size

- How many people should be surveyed?

My sample size is 100. I have questioned Banks Customers for the

survey. Sample size of 100 was used for questionnaire out of them

maximum responded.

Time Frame

It is the period of time for which the survey or study is to be done

When the survey should be conducted?

I conducted my survey for 3 weeks from 1-3-2013 to 21-3-2013.

Sampling Method

Random Sampling

Since the information required was not of a very technicalnature and also looking at the scope of the project and the

extent of the target segment, the sampling technique employed

was Random Sampling. A random sample gives every unit of

the population a known and non-zero probability of being

selected. Since random sampling implies equal probability to

every unit in the population, it is necessary that the selection of

the sample must be free from human judgment.

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2.4.5 TOOLS OF PRIMARY DATA COLLECTION

QUESTIONNAIRE DESIGN/FORMULATION

Questionnaire: - A questionnaire is a research instrument consisting of a series of

questions and other prompts for the purpose of gathering information from

respondents. Although they are often designed for statistical analysis of the responses,

this is not always the case. Questionnaires have advantages over some other types of

surveys in that they are cheap, do not require as much effort from the questioner as

verbal or telephone surveys, and often have standardized answers that make it simpleto compile data.

A questionnaire consists of a set of questions presented to respondent for their

answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are difficult to

Interpret and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret and

Tabulate.

TYPES OF QUESTION INCLUDED: -

DICHOTOMOUS QUESTIONSWhich has only two answers Yes or No?

MULTIPLE CHOICE QUESTION

Where respondent is offered more than two choices.

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IMPORTANCE SCALE

A scale that rates the importance of some attribute.

RATING SCALEA scale that rates some attribute from highly satisfied to highly unsatisfied and

very inefficient to very efficient

SAMPLING UNIT: -

Who is to be surveyed? The marketing researcher must define the target population

that will be sampled.

The sample Unit taken by me was customers of AXIS bank of different age group,

different gender and different profession.

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3.1 DATAANALYSIS AND INTERPRETATION

AGE GROUP-

AGE GROUP

A, 47%

B, 25%

C, 19%

D, 9% A

B

C

D

IMPLICATION: If we closely look at the pie-chart, we can say that the people

between the age group of 25 to 55 are the main customer of the bank, which

contributes almost 75% of the banks customers. But the old age and the young

people have been less attractive on this leading product of AXIS Bank, which is

a matter of concern. So more focus should be given to them as they are huge in

number.

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OCCUPATION

SERVICE

51%BUSINES

S

32%

STUDENT

7%

OTHERS

10%

SERVICE

BUSINESS

STUDENT

OTHERS

POTENTIAL OCCUPATION-

IMPLICATIONS: This pie chart clearly shows that service holder and the

business people are the main customer of the bank. Reason for this could be as

per interviewed was working hour and anywhere banking which suits them. 8 to

8 banking give them the freedom to do banking work after the office. Students

contribution is less as student account is not available in Delhi and 5000 as

minimum balance is not possible for them. Other section should be increased by

creating awareness about the banking products.

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ANNUAL INCOME

LESS

THAN 1

LAKH, 8%

1-2 LAKH,

22%

3-4 LAKH,

37%

MORE

THAN 4

LAKHS,

33%

LESS THAN 1

LAKH

1-2 LAKH

3-4 LAKH

MORE THAN 4

LAKHS

ANNUAL INCOME-

IMPLICATIONS: Higher income or we can say that more than 34 LAKHS

earning people are contributing 70% of the transactions. But it is advisable to

penetrate more in the lower income group not only in terms of accounts but also

in other banking products because they contribute a major part of the society.

Target should be on that every section of the society should open saving accountor other account in AXIS Bank.

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WHATDO YOU EXPECT FROM A BANK WHILE OPENING AN

ACCOUNT?

FEATURES / ATTRIBUTES

QUICK

SERVICE ,44%

PROPER

INFO, 14%

WORKING

HOUR, 28%

LESS

FORMALITIE

S, 8%

VARIETY OF

PRODUCTS,

6% QUICK SERVICE

PROPER INFO

WORKING HOUR

LESSFORMALITIES

VARIETY OFPRODUCTS

IMPLICATIONS: When a customer visits a bank the first and foremost

thing he looks, that how quickly he is served, how his problem is entertained by

the bank employee and what is the working hour of the bank. Thats why these

three things contribute the maximum of this pie chart. Less formalities and

variety of products although contributes less but it has a major impact on the

customer. So bank should follow on these things also. Service sector like

banking, preference should be given to make.

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WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU

MOST TO OPEN SAVING ACCOUNT IN AXIS BANK?

SAVINGS A/C ATTRIBUTES

ATM CUMDEBIT

CARD, 26%

VALUE

ADDED S.

A/C, 48%

CHEQUE

BOOK, 16%

PHONE /

INTERNET

BANKING,10%

ATM CUM DEBIT

CARD

VALUE ADDED S.

A/C

CHEQUE BOOK

PHONE /

INTERNET

BANKING

IMPLICATIONS: As we found in our finding that majority of the people

like the saving account, this chart reveals that what are the factor and their

contribution making their product really leading product of AXIS Bank.VALUE ADDED SAVING ACCOUNT is undoable a unique sub product of

AXISBank. Since it has the appeal catch maximum customer as it provides

the facility of FIXED deposit in saving account ATM cum debit card is also a

major attributes as it made the banking easy. Personalized chequebook is also a

major attraction in this section. As far as other factors are concern they are

showing less appearance in this chart.

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ACCOUNT TYPE

SAVING

54%CURRENT

18%

FIXED

15%

NRI

8%

OTHER

5%

SAVING

CURRENT

FIXED

NRI

OTHER

WHAT TYPE OF ACCOUNT DO YOU HAVE IN AXIS BANK?

IMPLICATIONS: Saving account is the leading and attractive product for

the AXISBankas it has occupied a major chunk in this chart. This number and

percentage clearly shows that this product has all the quality to give the

customer best services and ability to satisfy them. On the second and third

position current and fixed deposit has also been helpful to increase the customer

base but still their performance needs to be improved. As far as NRI and other

accounts are concerned they have less appearance. So majority of the business is

moving around few leading products. Reason could be either people are not

aware about the various products of the bank or bank has limited range of

products. So bank must ascertain that where things are going wrong and for that

what sort of necessary step could be taken.

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WHICH FACTOR AMONG THE FOLLOWING INFLUENCED YOU

MOST TO OPEN AN ACCOUNT IN AXIS BANK?

INFLUENCED FACTOR

FRIENDS /RELATIVE

44%ADVERTISE

MENT33%

BANKEMPLOYEE

12%

PROSPECTUS

11% FRIENDS /RELATIVEADVERTISEMENTBANK EMPLOYEEPROSPECTUS

IMPLICATIONS: It has been said a satisfied customer is the best medium

for an advertisement since in this chart friend / relative have played a key role in

opening the accounts of others. Which implies that banks real customers are

satisfied enough with facilities available on the products and services enjoyed by

them. On the other hand advertisement also plays a vital role in influencing the

customer. As their behavior not only please the customer but also attract the

customer. Well maintained prospectus is also a major attributes of attracting the

customer. Main focus of the bank should be no satisfaction of customer.

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COMPARISON

EXCELLEN

T

27%

GOOD

47%

AVERAGE

14%

POOR

5%

CAN'T SAY

7%

EXCELLENT

GOOD

AVERAGE

POOR

CAN'T SAY

IN COMPARISION TO OTHER BANKS HOW WOULD YOU

RATE AXIS BANK?

IMPLICATIONS: Comparison with other banks depends on its overall

performance in the eyes of the people. In this chart it is clearly showing that

74% of the people are satisfied with AXISBank. In a short span of time of its

existence in this city with strong competition from major public sector bank like

SBI and other private players bank has done well it has occupied a different

position in the peoples mind.

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RECOMMANDATION

YES

95%

NO

5%

YES

NO

WOULD YOU RECOMMEND AXIS BANK TO OTHERS?

IMPLICATIONS: As per the chart we show that 5% of the people dont

want to recommend AXIS Bankto others. Bank must find the reason of their

dissatisfaction because in this competitive world we have to achieve this target.

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Q. Are you interested in products offered by the AXIS

PRUDENTIAL ?

Yes 61%

No 22%

Will think 17%

INTERPRETATION

The good thing is that atleast the corporates were quite eager to find out

what AXIS PRU has to offer whereas the major 39 % of the corporates

were not even interested in the products as they are quite satisfied by theLIC and they are not in breaking their long relationship with them. The

private players will have to play a long battle in order to ensure that they

are serious player in the market.

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61%22%

17%

Yes

No

Will think


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Q. Are you satisfied with your present insurer?

YES 95%

No 5%

INTERPRETATION

Here is where the challenge is. Inevitably most of the players are very

satisfied with their present insurer which makes it more tough for the

private players to attract the corporates. The remaining 5 % are also not

very dissatisfied by the services but they are just open to new avenues

and are looking forward that private companies come with good offers so

that they may shift to them. Thus private players will have to be very

proactive and in this regard since LIC is the leader and AXIS PRU is

lagging behind its competitors in terms of competition.

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95% 5%5%Yes

No


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Q. Where would you like to insure if given chance?

LIC - 60

ICICI - 15

BAJAJ ALLIANZ - 5

HDFC - 10

SBI - 8

KOTAK MAHINDRA - 2

INTERPRETATION

Thus we see that the companies are comfortable in having

business with govt. owned companies as they feel its safe &secure to have business with them which is followed by SBI as it is

the biggest bank.

Q. What is peoples main concern while taking an insurancepolicy?

A) Security 70%

48

25

15

108

60

0

10

20

30

40

50

60

70

LIC SBI HDFC ICICI BAJAJ KOTAK

MAHINDRA


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B) Returns 10%C) Tax rebate 20%

INTERPRETATION:

People invest in insurance mainly because of security concern.

What is the level of satisfaction of customers from products

of AXIS bank?

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TAX REBATE

20%

SAVINGS

70%

SECURITY

10%


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Very High

40%

High

30%

Moderate

11%

Low

10%

Very Low

9%

INTERPRETATION:

Here we found that

40%people are very highly satisfied,

30% of people are highly satisfied,

11% are moderate,

10% of people are low satisfied,

9% are very low satisfied.

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30%

40%

15%

5%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Highly

satisfied

Satisfied Moderate Unsatisfied Highly

Unsatisfied

6). Are you satisfied with the incentives associated with your policy?

Highly satisfied

Satisfied

Moderate

Unsatisfied

Highly Unsatisf ied

INTERPRETATION:

30% people are highly satisfied,

40% satisfied,

15%are moderate,

5% are unsatisfied

10%are highly unsatisfied.

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7). What other plans or flexibility you expect from

Insurance companies?

30%

20%

50%

More returns

Complementarygifts

InvestmentPattern

INTERPRETATION:

50%people are satisfied with investment pattern,

30% are satisfied with more returns and

Only 20% people expect complimentary gifts.

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LIMITATIONS OF THE RESEARCH

By working on this project I gained a lot of knowledge over the banking sector in

India. But there are a certain no. of problems which I faced while working on

this project. These problems can be illustrated as limitations of study which are as

followed:

Most of the contents collected were difficult to understand because it was

new for me to work in this field.

it was tricky and time consuming to understand the mysteries of marketing.

Response of customers could be biased.

Lack of interest shown by the respondents resulted in incomplete responses.

Poor a n d a m b i g u o u s r e s p o n s e s w e r e t h e r e b e c a u s e o f

s o m e respondents responded without clearly understanding the questions.

But this was minimized as far as possible because the interviewer assisted

the respondents.

contacting the customers was a difficult job.

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RECOMMENDATIONS

Since the customer and his needs remain in focus in banking, it would be

appropriate to have a view of the customers banking needs which include financial

security, convenience, quick service, personalized service, investment counseling,

return of investment, support by way of credit prestige, wide range of service, etc.

and to be the best on these aspects AXIS Bank has and is trying its best, and has

been successful too, but still there is some scope for improvement, which I

observed during my training in this bank.

Nowadays, customers are more service driven than product driven and are

not homogeneous in their behavioral pattern, attitude, needs and expectations.

Therefore, a through understanding of the customer is a pre requisite to offer

him satisfaction through providing services.

AXIS Bank should also focus on to have the provision to make some changes

in its core products on the basis of region, purchasing power of the people etc.

because customers want that their special case must be considered, for that

branches need to be empowered. In other word it can be said bank should alter

its existing service to satisfy the customer needs, as and when it is needed in

special cases. Bank should begin a clear understanding of the entire customer

base in particular; of those customers are the most profitable.

Pricing is in fact a very critical and sensitive issue while launching any

product or inducing more features in existing product in such a highly

competitive market of banking before the management of any bank. Because,

price driven competition is one of the significant emerging trend in bank

marketing. AXIS Bank should also be very careful while reconsidering the

price of any core and leading product by closing understanding the behaviour

up to what extent customers are in the position to tolerate it, since customers

price sensitivity is not same across product categories. As it has been seen in

the case of increase in charges of QAB of savings account that resulted in

many closures of the account. The reaction of this increment in the charges

from the customer was aggressive. So bank must price any product by keeping

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the view of region factor too-where people needs, attitude and purchasing

power must be closely understood by the management of the bank. For this,

branches also needs to be empowered to the some extent-where they can make

necessary changes in the price of some selected core products, as they have

better understanding of the behaviour of their customers than the policy

makers of the bank.

There should be effective publicity of new products of new products and

relaunching of existing one too. Monitoring and customer feedback of all the

new and old products should be one regular basis.Bank should provide

effective publicity of new product launched and educate the customer to go in

for these products by highlighting the advantages of the products. Because if

banks aim is to provide service matching the best in the banking industry so

that it can get the most effective publicity, especially through word of mouth

for this at the same it is inevitable to educate the customer about banks

product and facilities available on it.

As the products and services of the AXIS Bank are almost technology oriented

where most advanced softwares are used and most of the banking work are

executed on computer through Internet. In such situation where more

technicalities is involved in both products and services there is a need to

educate the customers so that they can easily use and avail all the facilities

available on all the product. During my training, I observed that many

customers, not to ask about Internet banking, Phone Banking even dont know

how to use ATM, which is really a area of concern. Customers do not know

the complete rules and regulations and procedures of banks and bankers

preserve them for themselves and do not take interest in educating the

customers because if you are giving a product in the hands of the customers

keeping the view to serve them better, it is equally important to aware not only

about the facilities that are available on any product but also how to use them.

Until and unless this thing is practices as a campaign, it would be difficult to

retain existing customers as it is said retaining the existing customers is less

consumer satisfaction icici

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