paper on consumer satisfaction in sbi

7/30/2019 Paper on Consumer Satisfaction in SBI

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CONSUMER SATISFACTION IN STATEBANK OF INDIA

Dr. Priyanka Gite* Nilmani Tripathi**

Abstract

Consumer satisfaction is the major objective of each and every organization. Every organization offers

its products and services in the hope that it will satisfy its customers. SBI, one of the major bank in thecountry has also offered a lot of services to satisfy its customers and face the intense competition in the

banking market. Present paper is an attempt to analyse the satisfaction level of consumers of SBI for its

four major services namely ATM services, Internet Banking, Mobile Banking and Core Banking

services.

Key words: ATM services, Internet Banking, Mobile Banking, Core Banking

Introduction:

Banking sector is one of most important sector of every developed economy. Without well-developed

banking sector an economy cannot become developed economy. Banking in India started in last decadeof 18

thcentury. The establishment root of SBI began with the establishment of Bank of Calcutta on 2

nd

June 1806. The bank was re-designed as the Bank of Bengal, three years later. In the year 1921, three

Presidency Banks were amalgamated to form Imperial Bank of India on 27 January 1921.

The recommendation of All India Rural Credit Survey Committee (AIRCSC) in first five year

plan results into formation of SBI on 1st July 1955. It is the largest commercial bank of the country

having 7 subsidiaries and more than 11000 branches spread all over the country. Besides India, SBI

also has 84, foreign offices spread over 32 countries.

SBI offers a wide range of products and services to its customers. Some of the important oneare.

[A] Personal Banking: This includes- SBI term deposits, SBI loans for pensioners, SBI

housing loans and SBI vehicle loans etc

[B]Other Services: Agricultural Services/Rural Banking, ATM Services, Mobile Banking

Internet Banking,Core Banking and other services.

Objective of Study:

The main objective of the study is to find out the satisfaction level of the customers of SBI

(BHU) for its four major services: ATM Services, Mobile Banking Internet Banking, and Core

Banking.

*Associate Professor, Faculty of Commerce, BHU

**Research Scholar, Faculty of Commerce, BHU


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Research Methodology:

(i)Collection of Data:

The research is based on primary data collected through questionnaire.

(ii) Location of study:

Survey in BHU Varanasi district of UP.

(iii) Sample Size:

A sample size of 132 customers of BHU SBI was selected covering different age group, gender,

occupation, income level and educational status.

(iv)Technique of analysis:

Percentage method was used to analyses the data collected.

(v) Selected Bank:

Three branches of SBI BHU Varanasi UP.

Facts and Findings:

From the sample we derived following conclusions

1. Reason to choose services:50% of the customer select the bank for its efficient customer service,

while only 13% for its efficient complaint handling. For time saving/technology and transaction cost

21.8% and 18.7% customer choose the bank services respectively.

020

40

60

80

100

Age Gender

Male

Female

Educatioanl Qualification

Graduate

PostGraduate

Others

Occupation

Student

Salaried

Person

Businessmen

Others


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2. Regarding Services Preferred:Most of the customers preferred ATM services (50%) of the bank.

However, Internet banking is also used by almost one fourth of customers (27.77%). Mobile banking

and Core banking are used by few customers only as they constitute only 11.11%respectively.

3. Regarging ATM Services

Following are the main conclusions:

As we see from the above majority of the customers (40%) of the SBI agree that they are facing

problem in withdrawing cash from ATM.

Reason to Choose Bank Service

Efficient Customer Service

Efficient Complaint Handing

Time Saving/Technology

Transaction Cost

Services Preferred

ATM Services

Internet Banking

Mobile Banking

Core Banking

0

10

20

30

40

50

60

Strongly

disagree

Disagree Nutural Agree Strongly agree

ATM Services Problem Of Withdrawing

ATM Services Problem Of

Withdrawing


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Most of the SBI customers agree that they are facing problem like insufficient cash in ATM (42%).

Most of the customers using ATM services (50%) use ATM to deposit their cash and cheques in their

account.

Most of the SBI customer (77%) uses the ATM services for enquiry statement of their accounts.

4. Regarding Internet Banking

0

5

10

15

20

25

30

35

40

Stongly

Disagree


ATM Services Problem Of Insufficient Cash in ATM

ATM Services Problem Of

Insufficient Cash in ATM

0

10

20

30

40

50

60

Strongly

disagree

Disagree Nutural Agree Strongly

agree

Use Of ATM For Cash and Cheque Deposite

Use Of ATM For Cash and Cheque

Deposite

0

10

20

30

40

50

Strongly

disagree


Use of ATM For Enquiry Statement Of Account

Use of ATM For Enquiry Statement

Of Account


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Most of the customer (70%) agrees that internet banking saves their time from banking transaction.

Same is the case for use of internet banking for bill payment, as (61.5%) of the customer who are using

internet banking pay their bills through internet banking.

The customer of SBI use internet banking services more for online trading. As shown in the graph

almost (60%) of its customers who are using internet banking use it for online trading.

0

10

20

30

40

50

60

Strongly

disagree


Internet Banking to Save Time

Internet Banking to save time

0

10

20

30

40

Strongly

disagree


agree

Internet Banking For Bill Payment

Internet Banking For Bill Payment

0

10

20

30

40

50

Strongly

Disagree


Agree

Internet Banking Use For Online Trading

Internet Banking Use For Online

Trading


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Most of the respondent (64%) using internet banking feels that it is secure.

5. Mobile Banking

The proportion of customer using mobile banking for end day a/c balance is quite low. Only 37% of

respondent give answer in favor.

The Proportion of customer using mobile banking to know their Cheque details is quite low (23%)

0

5

10

15

20

25

30

35

Strongly

disagree


Internet Banking is Secure

Internet Banking is secure

0

5

10

15

20

25

30

Strongly

Disagree


Agree

Use Of Mobile Banking for A/c Balance Knowledge

Use OF Mobile Banking for A/c

Balance Knowledge

0

10

20

30

40

Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

Use of Mobile Banking For Cheque Details

Use of Mobile Banking For Cheque

Details


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Majority of (61.5%) SBI customers using mobile banking pay their bills through mobile.

Almost 2/3 (69%) of the SBIs customer using mobile banking book their tickets and recharge theirmobile through mobile banking.

6. Core Banking

Approximately, 60% of the SBI customers think that core banking is useful for them for fund transfer

from different branches of SBI.

0

10

20

30

40

Strongly

Disagree


Agree

Use of Mobile Banking For Bills Payment

Use of Mobile Banking For Bills

Payment

0

5

10

15

20

25

30

35

Strongly

Disagree


Agree

Use of Mobile Banking For Ticketing & Recharging Mobile

Use of Mobile Banking For

Ticketing & Recharging Mobile

0

5

10

1520

25

30

35

40

Strongly

Disagree


Agree

Use of Core Banking for Transfer of Funds

Use of Core Banking for Transfer ofFunds


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Approximately, 70% of the SBI customers think that core banking is useful for them for protection of

their personal information.

43% of SBI Customers think that that core banking is useful for them for ATM service transaction.

However, 38% of the respondents are neutral.

0

10

20

30

40

50

Strongly

Disagree


Agree

Use of Core Banking For Protection of Personal Information

Use of Core Banking ForProtection of Personal Information

0

5

10

15

20

25

30

35

40

Strongly

Disagree

Disagree Neutral Agree Strongly Agree

Use of Core Banking for ATM Transaction

Use of Core Banking for ATM

Transaction

0

5

10

15

20

25

30

35

Strongly

Disagree


Agree

Use of Core Banking For internet Banking Transaction

Use of Core Banking For internet

Banking Transction


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Majority of SBI customer (56%) thinks that core banking is helpful for their internet banking

transaction. Only 15% of the respondents were against the statement.

Suggestions: -----

Bank needs to adopt a more serious approach towards its policy of consumer satisfaction tomeet the challenges of the present day competitive environment.

ATM services needs to be streamlined particularly in use of ATM. Use of ATM for cash and cheques deposits can be improved by increasing the awareness level

about it among the consumers.

The services like net banking and mobile banking needs to be promoted more effectivelythrough participation programme with consumers to make them comfortable with the use of

these services and increase their confident in these services.

SBI enjoys huge consumer base, direct interaction of bank personal with consumer will furtherstrengthen it.

References:

[1] Dr. ArtiGaur,Customer Satisfaction Regarding Home Loans- A Comparative Study of ICICI Bank

and SBI Bank, International Journal of Infornation Technology and knowledge Management, July-

December 2009, Vol.-2, pp. 379-381.

[2] Narasimhan, M.S. (1999) ConsumerCredit: Towards Better Receivables, Chartered Accountant

(ICAI), XLV111 (6) 1999 pp-26-30.

[3] Annual Reports of SBI.

[4] Kotlar. P., Marketing Management, 12e, pp-156-178


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paper on consumer satisfaction in sbi

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